El Centro City Council
April 5, 2022

12.2 Compliance with Law
In providing the services required under this Agreement, Contractor shall at all times, at its sole cost, comply with all Applicable Laws and regulations of the United States, the State of California, and any federal, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended, including but not limited to the payment of prevailing wage, if applicable.

12.3 Governing Law
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California.

12.4 Jurisdiction
Except for those matters where Federal Courts have exclusive jurisdiction, any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits.

With respect to venue, the Parties agree that this Agreement is made in and will be performed in Imperial County.

12.5 Assignment
Except as may be provided for in Article 10 (City’s Right to Perform Service), Contractorshall not assign its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement (collectively referred to as an “assignment”) to any other Person without the prior written consent of City. Any such assignment made without the consent of City shall be void and the attempted assignment shall constitute a material breach of this Agreement.

For purposes of this Section the term “assignment” shall be given the broadest possible interpretation, and shall include, but not be limited to (i) a sale, exchange or other transfer of substantially all of Contractor’s assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of outstanding common stock of Contractor to a third party provided said sale, exchange or transfer may result in a change of control of Contractor; (iii) any dissolution, reorganization, consolidation, merger, re-capitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction which results in a change of ownership or control of Contractor; (iv) any assignment by operation of law, including those resulting from mergers or acquisitions by or of Contractor of any of its Affiliates, insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution being levied against this Agreement, appointment of a receiver taking possession of Contractor’s property, or transfer occurring in the event of a probate proceeding; and (v) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership, or change of control of Contractor.

Contractor acknowledges that this Agreement involved rendering a vital service to City’s residents and businesses, and that City has selected Contractor to perform the services specified herein based on (1) Contractor’s experience, skill and reputation for conducting its Solid Waste Handling Services in a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations

23.b
Packet Pg. 937 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

and best Solid Waste management practices, and (2) Contractor’s financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. City has relied on each of these factors, among others, in choosing Contractor to perform the services to be rendered by Contractor under this Agreement.

If Contractor requests City’s consideration of and consent to an assignment, City may deny or approve such request in its sole and absolute discretion. Any request for an assignment shall be made in a manner to be prescribed by the City Manager, and no request by Contractor for consent to an assignment need be considered by City unless and until Contractor has met (or with respect to matters that would only occur upon completion of the assignment if approved, made reasonable assurances that it will meet) the following requirements:

A. Contractor shall pay City its reasonable expenses for attorney’s fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment. An advance payment towards expenses may be requested by City prior to City consideration of any assignment request and Contractor shall be responsible to pay all costs incurred by City in considering a request for assignment, including those in excess of the aforesaid deposit amount, regardless of whether City consents to the assignment.

B. Contractor shall pay the City a transfer fee equal to one percent (1%) of the Gross Receipts it will receive during the remaining term of the Agreement, as estimated by City.

C. Contractorshall furnish City with audited financial statements for itself, and the proposed assignee’s operations for the immediately preceding three (3) operating years.

D. A proforma financial statement (income statement and balance sheet) for the proposed assignee with the projected results of operations assuming that the assignment is completed. Such proforma financial statement shall reflect any debt to be incurred by the assignee as part of the acquisition of Contractor’s operations.

E. Contractor shall furnish City with satisfactory proof: (i) that the proposed assignee has at least ten (10) years of Solid Waste management experience on a scale equal to or exceeding the scale of operations conducted by Contractor under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any significant citations or other censure from any federal, State or local agency having jurisdiction over its Solid Waste management operations due to any significant failure to comply with State, federal or local Environmental Laws and that the assignee has provided City with a complete list of any such citations and censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its Solid Waste management practices in accordance with sound Solid Waste management practices in full compliance with all federal, State and local laws regulating the Collection and Disposal of Solid Waste including Hazardous Substances; and, (v) of any other information required by City to ensure the proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner.

Under no circumstances shall City be obliged to consider any proposed assignment by City if Contractor is in default at any time during the period of consideration. Should City consent to any assignment request, such assignment shall not take effect until all conditions relating to City’s approval have been met.

23.b
Packet Pg. 938 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

12.6 Affiliated Companies
Contractor’s accounting records shall be maintained on a basis showing the results of Contractor’s operations under this Agreement separately from operations in other locations, as if Contractor were an independent entity providing service only to City. The costs and revenues associated with providing service to City shall not be combined, consolidated or in any other way incorporated with those of other operations conducted by Contractor in other locations, or with those of an Affiliate.

If Contractor enters into any financial transactions with a Related Party Entity for the provision of labor, equipment, supplies, services, capital, etc., related to the furnishing of service under this Agreement, that relationship shall be disclosed to City, and in the financial reports submitted to City. In such event, City’s rights to inspect records, and obtain financial data shall extend to such Related Party Entity or entities.

12.7 Contracting or Subcontracting
Contractor shall not engage any contractors or subcontractors for the Collection of Solid Waste.

Subcontracting of street sweeping services is allowable with City approval and there shall be no additional cost to the rate payers.

12.8 Binding on Assigns
The provisions of this Agreement shall inure to the benefit to and be binding on the permitted assigns (if any) of the Parties.

12.9 Cooperation in Preparation for Termination or Expiration of Contract Prior to, and at, the end of the Term or in the event this Agreement is terminated for cause prior to the end of the Term, Contractor shall cooperate fully with City and any subsequent Solid Waste enterprise it designates to assure a smooth transition of Solid Waste Handling Services. Contractor’s cooperation shall include, but not be limited to, providing both the City and subsequent Solid Waste enterprise route lists, Billing information, lists of gate or other access codes and information needed for entry to service areas, Container placement areas by address, levels of service including any special needs or services required by each location, and other operating records needed to service all Premises covered by this Agreement.

In recognition of the difficulty inherent in Customer’s difficulty or inability to store two sets of Containers, Contractor shall remove its Containers in coordination with the distribution of Containers by the incoming service provider. Contractor shall cooperate with the City and incoming service provider in agreeing to the timing of Container removal; if parties cannot agree on a phase-out schedule and Contractor does not remove Containers in a timely manner that requires Customers to store two Containers, City, incoming service provider, or another entity may remove Contractor’s Containers and seek cost reimbursement from Contractor through its performance bond, letter of credit, or other means. The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance of this covenant and/or other equitable relief necessary to enforce this covenant.

Contractor shall, to the maximum extent feasible, provide a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures. Contractor shall be responsible for coordinating transfer immediately after Contractor’s final pickups, so as not to disrupt service. Contractor shall provide City with detailed route sheets containing service names and addresses, Billing names and addresses, monthly rate and service levels (number and size of Containers and pickup days) at least ninety

23.b
Packet Pg. 939 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

(90) days prior to the transition date, and provide an updated list two weeks before the transition and a final list of changes the day before the transition. Contractor shall provide means of access to the new service provider at least one (1) full business day prior to the first day of Collection by another party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers.

Contractor to provide documentation of any Customer declining request to provide keys, security codes, and/or remote controls used to access garages and Bin enclosures.

12.10 Parties in Interest
Nothing in this Agreement, whether express or implied, is intended to confer any rights on any Persons other than the Parties to it and their representatives, successors, and permitted assigns.

12.11 Waiver
The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of violation of the same or any other provision. The subsequent acceptance by either Party of any moneys which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other Party of any provision of this Agreement.

12.12 Contractor’s Investigation
Contractor has made an independent investigation (satisfactory to Contractor) of the conditions and circumstances surrounding the Agreement and the work to be performed by it.

12.13 Condemnation
City fully reserves the rights to acquire Contractor’s property utilized in the performance of this Agreement, by purchase or through the exercise of the right of eminent domain. This provision is additive, and not intended to alter the rights of the Parties set forth in Article 10.

12.14 Notice
All notices, demands, requests, proposals, approvals, consents and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative of the Parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows:

If to City:

City Manager
City of El Centro
1275 Main Street
El Centro, CA 92243
If to Contractor:

23.b
Packet Pg. 940 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

CR&R Incorporated
Solid Waste President
11292 Western Avenue
Stanton, California 90680
Copy to:

CR&R Incorporated
General Manager
599 East Main Street
El Centro, CA 92243
The address to which communications may be delivered may be changed from time to time by a written notice given in accordance with this Section.

Notice shall be deemed given on the day it is personally delivered or, if mailed, three (3) days from the date it is deposited in the mail.

12.15 Representatives of the Parties
References in this Agreement to the “City” shall mean the City Council and all actions to be taken by City shall be taken by the City Council except as expressly provided herein. The City Council may delegate, in writing, authority to the City Manager, and/or to other City employees and may permit such employees, in turn, to delegate in writing some or all of such authority to subordinate employees. Contractor may rely upon actions taken by such delegates if they are within the scope of the authority so delegated to them.

Contractor shall, by the Effective Date, designate in writing a responsible officer who shall serve as the representative of Contractor in all matters related to the Agreement and shall inform City in writing of such designation and of any limitations upon his or her authority to bind Contractor. City may rely upon action taken by such designated representative as actions of Contractor unless they are outside the scope of the authority expressly delegated to him/her by Contractor as communicated to City.

12.16 City Free to Negotiate with Third Parties
City may investigate all options for the Collection, Transporting, Recycling, Processing and Disposal of Solid Waste for periods during which this Agreement has expired or been terminated. Without limiting the generality of the foregoing, City may solicit proposals from Contractor and from third parties for the provision of Solid Waste Handling Services which are the subject of this Agreement, including without limitation Collection services, Disposal services, Recycling services, Organic Materials services and Processing, and any combination thereof, and may negotiate and execute agreements for such services which will take effect upon the expiration or earlier termination of this Agreement pursuant to Section

11.1 or otherwise.

12.17 Compliance with Municipal Code
Contractor shall comply with those provisions of the City Code which are applicable, and with any and all amendments to such applicable provisions during the term of this Agreement.

23.b
Packet Pg. 941 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

12.18 Privacy
Contractor shall strictly observe and protect the rights of privacy of Customers. Information identifying individual Customers or the composition or contents of a Customer’s waste stream shall not be revealed to any Person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the Customer. This provision shall not be construed to preclude Contractor from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. This provision shall not apply to reports or records provided to City pursuant to this Agreement.

12.19 Proprietary Information, Public Records
The City acknowledges that a number of the records and reports of Contractor are proprietary and confidential. Contractor is obligated to permit City inspection of its records on demand and to provide copies to City where requested. City will endeavor to maintain the confidentiality of all proprietary information provided by Contractor. Notwithstanding the foregoing, any documents provided by Contractor to City that are public records may be disclosed pursuant to a proper public records request.

12.20 Compliance with Immigration Laws.

Contractor shall be knowledgeable of and comply with all local, State and federal laws which may apply to the performance of this Agreement. Contractor warrants and represents that all of its employees, including any and all prospective employees hired to perform services for the City under this Agreement and the employees of any subcontractor retained by the Contractor to perform a portion of the services under this Agreement, are and will be authorized to perform the services contemplated by this Agreement in full compliance with all applicable State and federal laws, rules and regulations, including, but not limited to, the Immigration Nationality Act of 1952 (commencing with Section 1101 of Title 8 of the United States Code), and the Immigration Nationality and the Immigration Reform and Control Act of 1986 (commencing with Section 1324a of Title 8 of the United States Code), as amended. Contractor agrees to verify the legal status of all of its employees and provide documentation of such verification whenever requested by the City. If Contractor discovers that any employee it has retained is not in compliance with Immigration Laws, Contractor agrees to terminate such employee.

ARTICLE 13: MISCELLANEOUS PROVISIONS

13.1 Entire Agreement
This Agreement, including the Exhibits, contains the entire integrated agreement and understanding concerning the subject matter herein and supersedes and replaces any prior negotiations, promises, and agreements between the Parties, whether written or oral. No verbal agreement or conversation with any office, agent, or employee of the City, either before, during, or after the execution of this contract, shall affect or modify any of the terms or obligations herein contained nor such verbal agreement or conversation entitle the Contractor to any additional payment whatsoever under the terms of this contract. The Parties acknowledge this document has been executed with the consent and upon the advice of counsel. Each of the Parties acknowledges that no Party or agent or attorney of any other party has made any promise, representation, or warranty, express or implied, not contained in this Agreement, to induce the other Party to execute this instrument.

23.b
Packet Pg. 942 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

13.2 Section Headings
The article headings and section 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.

13.3 References to Laws and Other Agreements
All references in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or recodified, unless otherwise specifically provided. This Agreement supersedes any and all agreements heretofore entered into by the parties and City.

13.4 Interpretation
This Agreement, including the Exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party participated in its drafting.

13.5 Agreement
This Agreement may not be modified or amended in any respect except by a writing signed by the Parties.

13.6 Severability
If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein.

13.7 Exhibits
Each of Exhibits identified as Exhibit “1” through “9” is attached hereto and incorporated herein and made a part hereof by this reference.

13.8 Non-Waiver Provision
Failure of either party to exercise any of the remedies set forth herein within the time periods provided for shall not constitute a waiver of any rights of that party with regard to that failure to perform or subsequent failures to performing whether determined to be a breach, excused performance, or unexcused defaults by the other party.

13.9 Attorneys’ Fees
If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to

23.b
Packet Pg. 943 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

recover its reasonable attorney’s fees and costs. Attorneys’ fees shall include attorney’s fees on any appeal, and in addition a Party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

23.b
Packet Pg. 944 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

IN WITNESS WHEREOF, City and Contractor have executed this Agreement as of the day and year first above written.

CITY OF EL CENTRO
(“City”)
DATED: _______________________________ DATED: _______________________________ CITY OF EL CENTRO, a general law city
CR&R Incorporated
By: ____________________________________ By: ____________________________________ Marcela Piedra David Ronnenberg
City Manager Division President
CR&R Incorporated
_______________________________________
ATTEST: ADDRESS
_______________________________________ _______________________________________ Norma Wyles, CMC TELEPHONE
City Clerk

23.b
Packet Pg. 945 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 1:

AB 341, AB 827, AB 1826, AND SB 1383 IMPLEMENTATION
PLAN
[Contractor to develop the AB 341, AB 827, AB 1826, and SB 1383 Implementation Plan for City approval within sixty (60) days of the execution of this Agreement]

23.b
Packet Pg. 946 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 2:

MAXIMUM RATE SCHEDULES

23.b
Packet Pg. 947 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 2A:

CURRENT MAXIMUM RATES AT SOUTH YUMA COUNTY
LANDFILL*
Following are the rates through June 30, 2022:

Residential Service Rate
Cart Service – one each Refuse, Recycling, and Green Waste Cart $20.64 per month Additional Refuse Cart $12.90 per month
Additional Recycling Cart (no charge) $ – per month
Additional Green Waste Cart (no charge) $ – per month
Additional Special Overage Pickup for Automated Cart Customers $6.45 per month Additional Bulky Item pickups (in excess of three per year) $25.83 per month Used Oil/Filter Collection per Eligible Home $0.05 per month Apartment Houses, Courts and
Similar Dwellings Rate Trailer Courts and Mobile Home Parks Rate First Unit $20.64 per month First Unit $20.64 per month Units 2 – 15 $12.59 per month Units 2 – 5 $10.73 per month Units 16 – 30 $11.34 per month Units 6 – 10 $10.13 per month Units 31 – 50 $10.13 per month Units 11 – 20 $9.71 per month Units 51 – 75 $9.30 per month Units 21 – 30 $9.30 per month Units 31 – 50 $8.46 per month
Units 51 – 100 $8.05 per month
MSW Bin and Commercial Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup
Size 1 2 3 4 5 6
96-gallon Cart $ 37.43 $ 63.25 $ 89.04 $ 114.87 $ 140.69 $ 166.48 $ 19.36 2 cubic yard $ 95.50 $ 172.94 $ 250.37 $ 327.81 $ 405.24 $ 482.69 $ 25.50 2 yard
compactor $ 156.85 $ 283.65 $ 410.61 $ 537.61 $ 664.60 $ 791.62 $ 41.82 3 cubic yard $ 108.40 $ 198.75 $ 289.09 $ 379.43 $ 469.77 $ 560.13 $ 28.97 4 cubic yard $ 121.31 $ 224.57 $ 327.81 $ 431.05 $ 534.29 $ 637.53 $ 33.88 4 yard
compactor $ 205.76 $ 393.44 $ 581.12 $ 768.81 $ 956.49 $ 1,144.17 $ 126.65 5 cubic yard $ 227.15 $ 336.86 $ 452.99 $ 569.16 $ 685.32 $ 801.46 $ 39.32 6 cubic yard $ 269.75 $ 392.33 $ 521.41 $ 650.45 $ 779.51 $ 908.58 $ 45.23

23.b
Packet Pg. 948 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

Commercial Foodwaste Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
35-gallon $ 37.43 $ 74.87 $ 112.31 $ 149.75 $ 187.18 $ 224.62 $ 19.36 60-gallon $ 37.43 $ 74.87 $ 112.31 $ 149.75 $ 187.18 $ 224.62 $ 19.36 Multi-Family Greenwaste Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
90-gallon $ 37.43 $ 74.87 $ 112.31 $ 149.75 $ 187.18 $ 224.62 $ 19.36 300-gallon $ 112.31 $ 224.62 $ 336.94 $ 449.25 $ 561.56 $ 673.86 $ 58.12 Service Category Rate per Service
Temporary Bin Services:
3 cubic yard Bin, per dump $ 64.51
4 cubic yard Bin, per dump $ 77.43
6 cubic yard Bin, per dump $ 116.15
Bin rental (when less than one dump each 14 day period) $ 38.72 Blocked pickup $ 45.18
Locking Bins – monthly service charge:
1x week $ 6.45
2x week $ 12.90
3x week $ 19.36
4x week $ 25.83
5x week $ 32.26
6x week $ 38.72
Other Residential Services:

Cart Redelivery Fee – Stop Service, per occurrence $ 25.00 Other Commercial Services:

Commercial Bulky Item Pickup $ 25.83
Extra Bin Cleanings (beyond one free per year) $ 51.62
Bin Overflow Charge (after Customer has been notified of charge) $ 58.09 Contamination Charge, per occurrence $ 50.00
Commercial Setup Fee, per occurrence $ 25.00
Commercial CUB, Bin Delivery Fee, per occurrence $ 30.00 Commercial Cart Delivery Fee, per occurrence $ 25.00
Bin Redelivery Fee – Stop Service, per occurrence $ 30.00

23.b
Packet Pg. 949 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

Roll-Off Box Service Charges (1) Rate
Standard Roll-Off Box – Rate per pull $ 237.15
Compactor Roll-Off Box – Rate per Pull (excluding rental) $ 316.67 COD Roll-off 10 or 40-yard (up to 10 tons) – C&D Processing $ 946.95 COD Roll-off 10 or 40-yard (up to 10 tons) – Landfill $ 836.95 Tonnage Charge, per ton (Refuse) $ 59.98
Tonnage Charge, per ton (Construction and Demolition Debris) $ 70.98 Recyclable Material Roll-Off Service 150% of Pull Rate
Overweight per Ton Charge (per ton beyond 10 tons/load) 150% of Gate Rate Roll-Off Box Rental Charge – per day for each day beyond 14 days $ 19.87 Dry Run – pickup of empty Roll-off Box $ 132.50
Blocked Pickup $ 66.24
Overweight compactor Transportation fee $ 520.15
Compactor Cleaning Service $ 340.00
*Including all fees retained by, or paid to, City.
(1) COD Roll-off Box Customers may be requested to pre-pay the Standard Roll-Off Box Pull Rate plus the per ton rate for up to ten (10) tons, with unused payment (the per ton payment for tons over actual tons collected) refunded within thirty (30) days of pull.

23.b
Packet Pg. 950 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 2B:

MAXIMUM RATES AT SOUTH YUMA COUNTY LANDFILL
EFFECTIVE JULY 1, 2022*
Following are the rates effective July 1, 2022 through June 30, 2023:

Residential Service Rate
Cart Service – one each Refuse, Recycling, and Organics Waste Cart $22.95 per month Additional Refuse Cart $14.34 per month
Additional Recycling Cart at 50% of additional Refuse rate $7.17 per month Additional Organics Waste Cart at 50% of additional Refuse rate $7.17 per month Additional Special Overage Pickup for Automated Cart Customers $7.17 per month Additional Bulky Item pickups (in excess of three per year) $28.72 per month Used Oil/Filter Collection per Eligible Home $0.06 per month Apartment Houses, Courts and
Similar Dwellings Rate Trailer Courts and Mobile Home Parks Rate First Unit $22.95 per month First Unit $22.95 per month Units 2 – 15 $14.00 per month Units 2 – 5 $11.93 per month Units 16 – 30 $12.61 per month Units 6 – 10 $11.26 per month Units 31 – 50 $11.26 per month Units 11 – 20 $10.80 per month Units 51 – 75 $10.34 per month Units 21 – 30 $10.34 per month Units 31 – 50 $9.41 per month
Units 51 – 100 $8.95 per month
MSW Bin and Commercial Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup
Size 1 2 3 4 5 6
96-gallon Cart $ 40.05 $ 67.67 $ 95.26 $ 122.90 $ 150.52 $ 178.11 $ 20.71 2 cubic yard $ 102.17 $ 185.02 $ 267.86 $ 350.71 $ 433.55 $ 516.42 $ 27.28 2 yard
compactor $ 167.81 $ 303.47 $ 439.30 $ 575.17 $ 711.04 $ 846.93 $ 44.74 3 cubic yard $ 115.97 $ 212.64 $ 309.29 $ 405.94 $ 502.59 $ 599.27 $ 30.99 4 cubic yard $ 129.79 $ 240.26 $ 350.71 $ 461.17 $ 571.62 $ 682.07 $ 36.25 4 yard
compactor $ 220.14 $ 420.93 $ 621.72 $ 822.53 $ 1,023.32 $ 1,224.11 $ 135.50 5 cubic yard $ 243.02 $ 360.40 $ 484.64 $ 608.93 $ 733.20 $ 857.46 $ 42.07 6 cubic yard $ 288.60 $ 419.74 $ 557.84 $ 695.90 $ 833.97 $ 972.06 $ 48.39

23.b
Packet Pg. 951 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

Commercial Foodwaste Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
35-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 60-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 2 cubic yard $ 161.81 $ 323.62 $ 485.45 $ 647.26 $ 809.07 $ 970.87 $ 83.74 Multi-Family Organics Waste Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
90-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 300-gallon $ 120.16 $ 240.31 $ 360.48 $ 480.64 $ 600.80 $ 720.94 $ 62.18 Commercial Recycling Cart Rates (37.5% of MSW (1))
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
96-gallon $ 15.02 $ 25.38 $ 35.72 $ 46.09 $ 56.44 $ 66.79 $ 7.77 2 cubic yard $ 38.31 $ 69.38 $ 100.45 $ 131.52 $ 162.58 $ 193.66 $ 10.23 3 cubic yard $ 43.49 $ 79.74 $ 115.98 $ 152.23 $ 188.47 $ 224.72 $ 11.62 4 cubic yard $ 48.67 $ 90.10 $ 131.52 $ 172.94 $ 214.36 $ 255.78 $ 13.59 (1) Effective July 1, 2023, these rates will be increased to seventy-five percent (75%) of the corresponding MSW rates.

Service Category Rate per Service
Temporary Bin Services:
3 cubic yard Bin, per dump $ 69.02
4 cubic yard Bin, per dump $ 82.84
6 cubic yard Bin, per dump $ 124.27
Bin rental (when less than one dump each 14 day period) $ 41.43 Blocked pickup $ 48.34
Locking Bins – monthly service charge:
1x week $ 6.90
2x week $ 13.80
3x week $ 20.71
4x week $ 27.63
5x week $ 34.51
6x week $ 41.43
Other Residential Services:

Cart Redelivery Fee – Stop Service, per occurrence $ 26.75

23.b
Packet Pg. 952 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

Cart Replacement Fee – After 1 free per 12-month period (Customer Damaged or Stolen) $ 55.56
Other Commercial Services:

Commercial Bulky Item Pickup $ 27.63
Extra Bin Cleanings (beyond one free per year) $ 55.23
Bin Overflow Charge (after Customer has been notified of charge) $ 62.15 Contamination Charge, per occurrence $ 53.49
Commercial Setup Fee, per occurrence $ 26.75
Commercial CUB, Bin Delivery Fee, per occurrence $ 32.10 Commercial Cart Delivery Fee, per occurrence $ 26.75
Bin Redelivery Fee – Stop Service, per occurrence $ 32.10 Cart Replacement Fee – (Customer Damaged or Stolen) $ 55.56 Bulk Compost (per ton) $ 25.00
Roll-Off Box Service Charges (2) Rate
Standard Roll-Off Box – Rate per pull $ 253.72
Compactor Roll-Off Box – Rate per Pull (excluding rental) $ 338.80 COD Roll-off 10 or 40-yard (up to 10 tons) – C&D Processing $ 1,013.11 COD Roll-off 10 or 40-yard (up to 10 tons) – Landfill $ 895.43 Tonnage Charge, per ton (Refuse) $ 64.17
Tonnage Charge, per ton (Construction and Demolition Debris) $ 75.94 Recyclable Material Roll-Off Service 150% of Pull Rate
Overweight per Ton Charge (per ton beyond 10 tons/load) 150% of Gate Rate Roll-Off Box Rental Charge – per day for each day beyond 14 days $ 21.26 Dry Run – pickup of empty Roll-off Box $ 141.76
Blocked Pickup $ 70.87
Overweight compactor Transportation fee $ 556.49
Compactor Cleaning Service $ 363.76
*Including all fees retained by, or paid to, City.
(2) COD Roll-off Box Customers may be requested to pre-pay the Standard Roll-Off Box Pull Rate plus the per ton rate for up to ten (10) tons, with unused payment (the per ton payment for tons over actual tons collected) refunded within thirty (30) days of pull.

23.b
Packet Pg. 953 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 3:

EXAMPLE RATE ADJUSTMENT FORMULA

23.b
Packet Pg. 954 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 3A:

EXAMPLE RATE ADJUSTMENT – SINGLE FAMILY AND

COMMERCIAL RATES
A B C
Line Adjustment Factor Index Old Index Value (1) New Index Value Percentage Change
in Index
((Column B ÷
Column A) -1)
1 Labor (2) 146.2 151.0 3.3%
2 Fuel (3) 234.5 224.7 -4.2%
3 Equipment (4) 151.2 153.0 1.2%
4 Insurance (5) 141.2 143.4 1.6%
5 Disposal (6) 264.935 269.226 1.6%
6 All Other (6) 264.935 269.226 1.6%
D E F
Line Adjustment Factor Index
Cost Factor
Category Weighted
as % of Component
Total (7)
Percent Change in
Index
(Column C)
Total Weighted
Change
7 Labor (2) 22.0% 3.3% 0.7%
8 Fuel (3) 13.4% -4.2% -0.6%
9 Equipment (4) 10.3% 1.2% 0.1%
10 Insurance (5) 2.7% 1.6% 0.0%
11 Disposal (6) 30.7% 1.6% 0.5%
12 All Other (6) 20.9% 1.6% 0.3%
13 Subtotal 100.0% 1.0%
14 Maximum Weighted Change Increase or Decreas (8) 4.0% 15 Total Weighted Percentage Change 1.0%

G H I J
Line Rate Category Existing Customer
Rate
Total Weighted
Percentage Change
(Line 15, Column F)
Rate Adjustment
(Column G x
Column H)
Adjusted Monthly
Rate
(Column G +
Column I)
16 Standard Service $ 20.44 1.0% $ 0.20 $ 20.64
17 Second Unit $ 12.47 1.0% $ 0.12 $ 12.59
18 Trailer Court 2nd unit $ 10.62 1.0% $ 0.11 $ 10.73
19 Extra Refuse Cart $ 12.77 1.0% $ 0.13 $ 12.90
20 Overage Pickup $ 6.39 1.0% $ 0.06 $ 6.45
21 3 yard bin, 1 pickup/wk $ 107.33 1.0% $ 1.07 $ 108.40 22 3 yard bin, 2 pickup/wk $ 196.78 1.0% $ 1.97 $ 198.75 23 3 yard bin, 3 pickup/wk $ 286.23 1.0% $ 2.86 $ 289.09

K L M N O
Line Adjustment Factor Index Cost Component
(Column D)
Percentage Change
as Applied to Rate
Adjustment
(Column E)
Adjustment In Cost
Components
(Column K x
Column L)
Cost Component
Adjusted
(Column K +
Column M)
Cost Components
Reweighed to Equal
100% for Future
Adjustments
24 Labor (2) 22.0% 3.28% 0.7% 22.7% 22.5%
25 Fuel (3) 13.4% -4.18% -0.6% 12.8% 12.7%
26 Equipment (4) 10.3% 1.19% 0.1% 10.4% 10.3%
27 Insurance (5) 2.7% 1.56% 0.0% 2.7% 2.7%
28 Disposal (6) 30.7% 1.62% 0.5% 31.2% 30.9%
29 All Other (6) 20.9% 1.62% 0.3% 21.2% 21.0%
30 Total 100.0% 101.0% 100.0%
(1) After the first rate adjustment, this column comes from Column B of the previous year's rate adjustment worksheet. (2) Producer Price Index , PCU562111562111, Solid Waste Collection, not seasonally adjusted. (3) Producer Price Index, WPU057303 not seasonally adjusted, Fuels and related products and power, #2 diesel fuel. (4) Producer Price Index, PCU336120336120, Heavy duty truck mfg. (5) Producer Price Index, PCU524---524---, Insurance carriers and related activities. (6) Consumer Price Index for All Urban Consumers, CUUR0000SA0L1E, not seasonally adjusted, all items less food and energy index – U.S. city average. (7) After the first rate adjustment, this column comes from Column O of the previous year's rate adjustment worksheet. (8) Any adjustment may not increase or decrease by more than four percent (4%) annually and there shall not be any carry-forwards.

Step Four: Re-weight Cost Components
Step One: Calculate percentage change in indices
Step Two: Determine Components
Step Three: Apply Percentage Change to Rates

23.b
Packet Pg. 955 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 3B:

EXAMPLE RATE ADJUSTMENT – ROLL-OFF RATES
A B C
Line Adjustment Factor Index Old Index Value (1) New Index Value Percentage Change in
Index
((Column B ÷
Column A) -1)
1 2 Labor (2) 146.2 151.0 3.3%
3 Fuel (3) 234.5 224.7 -4.2%
4 Equipment (4) 151.2 153.0 1.2%
5 Insurance (5) 141.2 143.4 1.6%
6 All Other (6) 264.935 269.226 1.6%
7 Tonnage Charge (6) 264.935 269.226 1.6%
D E F
Line Adjustment Factor Index
Cost Factor
Category Weighted
as % of Component
Total (7)
Percent Change in
Index
(Column C)
Total Weighted
Change
8 9 Labor (2) 44.1% 3.3% 1.5%
10 Fuel (3) 11.1% -4.2% -0.5%
11 Equipment (4) 9.5% 1.2% 0.1%
12 Insurance (5) 3.0% 1.6% 0.0%
13 All Other (6) 32.3% 1.6% 0.5%
14 Service Component Rate Subtotal 100.0% 1.6%
15 Maximum Weighted Change Increase or Decrease (8) 4.0% 16 Service Component Total Weighted Percentage Change 1.6% 17 Tonnage Charge (6) 100.0% 1.6% 1.6%
18 Maximum Weighted Change Increase or Decrease (8) 4.0% 19 Tonnage Charge Total Weighted Percentage Change 1.6%

G H I J
Line Rate Category Existing Customer
Rate
Total Weighted
Percentage Change
(Column F, Line 16)
Rate Adjustment
(Column G x Column
H)
Adjusted Monthly Rate
(Column G + Column I)
20 Standard Roll-Off Box $ 233.42 1.6% $ 3.73 $ 237.15
21 Compactor Roll-Off Box $ 311.68 1.6% $ 4.99 $ 316.67 22 Tonnage charge, per ton (refuse) $ 59.04 1.6% $ 0.94 $ 59.98 23 Tonnage charge, per ton (C&D) $ 69.86 1.6% $ 1.12 $ 70.98

K L M N O
Line Adjustment Factor Index Cost Component
(Column D)
Percentage Change
as Applied to Rate
Adjustment
(Column E)
Adjustment In Cost
Components
(Column K x Column
L)
Cost Component
Adjusted
(Column K + Column
M)
Cost Components
Reweighed to Equal
100%
24 Labor (2) 44.1% 3.3% 1.5% 45.6% 44.9%
25 Fuel (3) 11.1% -4.2% -0.5% 10.6% 10.4%
26 Equipment (4) 9.5% 1.2% 0.1% 9.6% 9.4%
27 Insurance (5) 3.0% 1.6% 0.0% 3.0% 3.0%
28 All Other (6) 32.3% 1.6% 0.5% 32.8% 32.3%
29 Total 100.0% 101.6% 100.0%
(1) After the first rate adjustment, this column comes from Column B of the previous year's rate adjustment worksheet. (2) Producer Price Index, PCU562111562111, Solid Waste Collection, not seasonally adjusted. (3) Producer Price Index, WPU057303 not seasonally adjusted, Fuels and related products and power, #2 diesel fuel. (4) Producer Price Index, PCU336120336120, Heavy duty truck mfg. (5) Producer Price Index, PCU524---524---, Insurance carriers and related activities. (6) Consumer Price Index for All Urban Consumers, CUUR0000SA0L1E, not seasonally adjusted, all items less food and energy index – U.S. city average. (7) After the first rate adjustment, this column comes from Column O of the previous year's rate adjustment worksheet. (8) Any adjustment may not increase or decrease by more than four percent (4%) annually and there shall not be any carry-forwards.

Service Component (Pull Rate)
Step Three: Apply percentage change to rates
Step Four: Re-weight service component cost components
Step One: Calculate percentage change in indices
Service Component (Pull Rate)
Step Two: Determine Components

23.b
Packet Pg. 956 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 4:

CONTRACTOR’S FAITHFUL PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:

That CR&R Incorporated, a California corporation, as PRINCIPAL, and , a Corporation organized and doing business by virtue of the laws of the State of California, and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings required or authorized by the laws of the State of California, as SURETY, are held and firmly bound to the City of El Centro (“City”), hereinafter called OBLIGEE, in the penal sum of two hundred fifty thousand dollars ($250,000) lawful money of the United States, for the payment of which, well and truly to be made, we and each of us hereby bind ourselves, and our and each of our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT:

WHEREAS, the above bounden PRINCIPAL has entered into a contract, entitled “INTEGRATED SOLID WASTE MANAGEMENT SERVICES” with City, to do and perform the following work, to wit: Collect, Process and dispose of Solid Waste generated within City, in accordance with the contract.

NOW, THEREFORE, if the above bounden PRINCIPAL shall well and truly perform, or cause to be performed each and all of the requirements and obligations of said contract to be performed by said PRINCIPAL, as in said contract set forth, then this BOND shall be null and void; otherwise, it will remain in full force and effect.

And the said Surety, for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed thereunder or the specifications accompanying the same shall in any wise affect its obligations on this BOND, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the contract or to the work or to the specifications.

In the event suit is brought by OBLIGEE to enforce the provisions of this bond, said Surety will pay to OBLIGEE a reasonable attorney’s fee, plus costs of suit, in an amount to be fixed by the court.

IN WITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be duly signed and sealed this DAY OF , 2022.

A California Corporation SURETY
By: By:
(PRINCIPAL) (ATTORNEY IN FACT)
(SEAL) (SEAL)

23.b
Packet Pg. 957 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 5:

ADDITIONAL INSURANCE REQUIREMENTS
I.

Prior to the beginning of and throughout the duration of the Work, Contractor will maintain insurance in conformance with the requirements set forth below. Contractor will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Contractor agrees to amend, supplement or endorse the existing coverage to do so. Contractor acknowledges that the insurance coverage and policy limits set forth in this Section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this Agreement and which is applicable to a given loss, will be available to City.

II

INSURER QUALIFICATIONS
Insurance procured pursuant to these requirements shall be written by insurer that are admitted carriers in the State of California and with an A.M. Best’s rating of A- or better and a minimum financial size VII.

III

GENERAL CONDITIONS
General conditions pertaining to provision of insurance coverage by Contractor. Contractor and City agree to the following with respect to insurance provided by Contractor:

1. Contractor agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City of El Centro, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992, or equivalent provisions as determined by the Office of the City Attorney for the City of El Centro in its sole discretion.

Contractor also agrees to require all contractors, subcontractors and anyone else involved in any way with the project contemplated by this agreement, to do likewise.

2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contractor, or Contractor’s employees, or agents, from waiving the right of subrogation prior to a loss.

Contractor agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.

3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage.

4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsements of any kind that has not been first submitted to City and approved of in writing.

5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.

23.b
Packet Pg. 958 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contractor shall not make any reductions in scope of coverage (e.g., elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.

7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Contractor’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interest under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contractor or deducted from sums due Contractor, at City option.

8. Endorsements and certificate(s) are to reflect that the insurer will provide thirty (30) days’ notice to City of any cancellation of coverage. Contractor agrees to require its insurer to modify such endorsements or certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will “endeavor” (as opposed to being required) to comply with the requirements of the certificate.

9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contractor or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self-insurance available to City.

10. Contractor agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.

11. Contractor agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or Person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contractor’s existing coverage includes a deductible or self-insured retention, the deductible or selfinsured retention must be declared to the City. At that time the City shall review options with the Contractor, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.

12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City will negotiate additional compensation proportional to the increased benefit to City.

13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any Party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement.

23.b
Packet Pg. 959 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

14. Contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor of non-compliance with any insurance requirement in no way imposes any additional obligations on City not does it waive any rights hereunder in this or any other regard.

15. Contractor will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect.

16. Contractor shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contractor’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of the coverages.

17. The provisions of any workers’ compensation or similar act will not limit the obligations of Contractor under this agreement. Contractor expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents.

18. Requirements of specific coverage features or limits contained in this Section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only at it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.

19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such.

20. The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit.

21. Contractor agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contractor for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.

22. Contractor agrees to provide immediate notice to City of any claim or loss against Contractor arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.

23.b
Packet Pg. 960 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 6:

RESERVED

23.b
Packet Pg. 961 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 7:

CITY OF EL CENTRO STREET SWEEPING SPECIFICATIONS

1. Scope of Work. CR&R Incorporated ("Contractor") shall sweep public streets with curbs and gutters, public streets without curbs and gutters, street medians and center lanes and intersections within the boundaries of the City of El Centro ("City") as required by Section 4.11 of this Agreement. These areas and the sweeping frequency are indicated on the City of El Centro Sweeping/Trash Pickup Schedule map. Street sweeping services shall also include the sweeping of parking lots owned and operated by City.

2. Authority of the Director of Public Works. The City's Director of Public Works/City Engineer ("Director") or his/her authorized designee shall decide all questions which may arise concerning the quality and acceptability of street sweeping services performed by Contractor, the manner of performance, the rate of progress of the performance of the street sweeping service, the interpretation of the provisions of this Agreement, the acceptability of performance of the terms and conditions of this Agreement on the part of Contractor and claims and compensation. The Director's decision as to all such questions shall be final, and he/she shall have the authority to enforce and make effective all such decisions.

Whenever there is a situation where City desires to give specific direction regarding the sweeping of a particular area and Contractor, or a representative of Contractor's management, is not present, then the Director, or his/her authorized agent, may give the direction so long as it is within the scope of the requirements of this Agreement and these specifications. Contractor shall instruct its operators to follow such direction as if it had been given by Contractor.

3. Street Sweeping Schedule. The current schedule as approved by the Director shall remain in full force and effect during the term of this Agreement. The schedule may be revised from time to time when so requested by Contractor and approved by the Director. The schedule shall be made available to the public on City's webpage, or any other form of media technology, as determined by the Director.

The schedule includes, but is not limited to the following:
a. Contractor shall sweep all Residential and Commercial streets twenty-four (24) times per calendar year, as indicated in the approved maps. Arterial streets will be swept fifty-two (52) times per calendar year. Streets and public parking lots located in the downtown area will be swept every Tuesday and Thursday.
b. On Residential streets, the sweeping shall be performed one (1) day after the trash Collection day. (It is understood that City's residents are educated to this fact and many will keep their cars off the street on that day.)
c. All sweeping shall occur between Monday and Friday, unless sweeping at some other time is approved in advance by the Director. Contractor shall provide arterial street sweeping services between 3:00 a.m. and 6:00 p.m.
d. Contractor shall observe the following six (6) legal holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. During the weeks in which one of those holidays occurs, trash is Collected one (1) day later on the days of the

23.b
Packet Pg. 962 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

week following the holiday. Contractor shall sweep one (1) day later on the remaining days of the week after the holiday. The sweeping schedule shall be coordinated to insure that street sweeping follows trash collection. In no case shall the sweeping be on the same day as trash collection.
e. Contractor shall not sweep the streets during rain events of a magnitude that are such that, considering the standards of street sweeping industry, street sweeping would not be done.

Contractor shall use its own judgment to determine which days not to sweep using the industry standard as a guide.
f. Whenever Contractor is not able to sweep streets or any portion thereof due to inclement weather, equipment breakdown or other reason, Contractor is required to complete the street sweeping the following day, if possible. Contractor shall not perform any such "makeup" street sweeping on trash Collection days. Whenever the schedule sweeping is not completed pursuant to the schedule approved by the Director, Contractor shall notify the Director of the reason for the failure to complete street sweeping and the anticipate time that the scheduled sweeping will be done.

4. Standards of Service.
a. Quality of Work. Contractor shall perform the required street sweeping services to the standard of performance that is considered to be good street sweeping practice within the street sweeping industry. Further, the standards of performance are subject to the approval of the Director.

These standards include, but are not limited to the following:
i. Contractor is required to make as many passes as necessary over the streets being swept so as to clean them to the standards required by this Agreement. ii. Contractor shall be responsible for the removal of debris that impedes the performance of the street sweeping machines and are of such a size as can be easily handled by a machine operator.
iii. For debris which has settled outside the normal sweeping path of the machines, Contractor shall make the number of necessary passes to clean up such debris. iv. After Contractor has swept a particular area and debris becomes dislodged or dropped from a sweeping machine, Contractor shall make the necessary number of additional street sweeping passes to pick up all such debris until the area is swept clean, or the debris must be picked up manually and disposed of in accordance with this Agreement.

V. Contractor shall not be required to sweep through standing water as opposed to sweeping around it. Contractor shall return to such a location once water has been eliminated.
vi. When the sweeping of a street is completed, the street shall present a clean and uniform appearance.
b. Public Convenience. Contractor shall not interfere with the public use of the streets required to be swept by this Agreement and it shall conduct it operations so as to cause the least possible obstruction and inconvenience to the public and public traffic, and the least possible disruption of the peace and quiet of the area within which the streets are being swept. The

23.b
Packet Pg. 963 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

Director shall determine what constitutes unacceptable obstruction and/or inconvenience to the public and public traffic. The Director's decision in this regard shall be final. c. Supervision by Contractor. Contractor shall provide adequate field supervision to furnish continuous surveillance of workmanship and adherence to schedules by the crews performing the work required by this Agreement. Contractor shall have a field supervisor for the street sweeping services required by this Agreement. The supervisor shall check with City as to the schedule of work, citizen complaints and adequacy of performance. d. Disposal of Sweeping Debris. Contractor shall dispose of all sweeping debris and Refuse it accumulates from the sweeping services provided pursuant to this Agreement. Such debris and Refuse shall be deposited by Contractor at such locations as is determined to be appropriate by the Director. It shall be the responsibility of Contractor to make arrangements for Disposal of debris and Refuse. It is understood by Contractor that all costs of disposing of sweeping debris and Refuse shall be the responsibility of Contractor at no cost to City. e. Reporting on Sweeping Debris. City is required to submit information to various agencies on its street sweeping program. Contractor shall keep records on the sweeping debris as directed by City to fulfill these reporting requirements. Contractor shall report this information as required by City.
f. Inspections. City will evaluate Contractor's performance as necessary to insure compliance with the specifications. This evaluation may include, but is not limited to, routine inspections of streets on the day they are swept. Contractor shall provide information as directed by City to assist City in performing this ongoing evaluation. If requested by City, Contractor shall meet monthly with the Director, or his/her authorized designee, and conduct a "drivethrough" inspection of the streets required to be maintained by this Agreement. Said meetings shall be at the convenience of City. Any corrective work required as a result of an inspection by City shall be accomplished to the satisfaction of City and done so within three (3) days of City's notification of the required corrective work to Contractor. g. Traffic Counters. Contractor is cautioned that, at various times and locations, City will temporarily install portable traffic counting equipment of the type which is activated by vehicles coming in contact with a hose placed on the roadway. Caution shall be used by Contractor to avoid damaging said equipment. If Contractor, while in the performance of this Agreement damages or causes to be damaged any of the aforementioned traffic counting equipment or appurtenances, it shall bear the entire cost for the restoration, repair, inspection, testing and replacement of said damaged equipment. h. Equipment, Labor and Materials. Contractor shall furnish all labor, equipment and materials necessary for the satisfactory performance of the services required by this Agreement at its own expense.

Contractor shall provide all water necessary for the street sweeping services required by this Agreement at its own expense.

Contractor shall use only street sweepers to perform the services required by this Agreement that have been considered and approved by the Director. Each unit of street sweeping equipment to be utilized by Contractor for the performance of the street sweeping services pursuant to this Agreement shall not be older than fifteen (15) years. These requirements shall be in force throughout the term of this Agreement.

23.b
Packet Pg. 964 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

All street sweeping machines and equipment used by Contractor to perform the services required by this Agreement shall be properly maintained both as to condition and appearance, have sufficient street sweeping capability to insure a high level of street sweeping services and be maintained in top mechanical condition and property adjusted from both an operational standpoint and from a safety standpoint. Contractor shall at all times maintain adequate standby street sweeping machinery and equipment to be used in the event of machinery or equipment breakdowns.

5. Complaints/Recalls. Contractor shall operate an appropriate service as directed by City for responding to complaints and that service shall be operated continuously during normal working hours, which are 8:00 a.m. to 5:00 p.m. Monday through Friday. Contractor shall provide a telephone message recording system, answering service or another similar service approved by City for receipt of complaints at all times. Any area for which a complaint is received shall be swept the same day, unless the complaint is received after 2:00 p.m., in which case the area shall be swept by 10:30 a.m. the following day. All sweepers operating in City shall have either cellular telephones or two-way radios to communicate with Contractor's office.

Contractor shall maintain a written log of all complaints, which shall include for each complaint, a description of the complaint, the date and time that it was made, and the action taken as to the complaint or if no action was taken the reason for such inaction. The log of complaints shall be open to inspection by the Director at all reasonable times.

6. Expansion of City’s Boundaries. In the event that City desires to extend its street sweeping program to include street constructed or annexed after the effective date of this Agreement, any additional sweeping which is required of Contractor by such addition of streets shall be provided by Contractor at no additional cost to City.

7. Safety. Contractor shall perform all street sweeping services required by this Agreement in such a manner as to meet all accepted standards for safety practices and to safely maintain and operate all equipment, machines and materials consequential or related to the services. Contractor is solely responsible for complying at all times with all local, county, State or other legal requirements (including but not limited to Occupational Safety and Health Administration safety orders) so as to protect all Persons, including all City contractors, employees, agents and members of the public from personal injury and/or damage to their property.

Contractor shall immediately notify the Director of any unsafe conditions that exists regarding the performance of street sweeping services pursuant to this Agreement. Further, Contractor shall immediately notify the Director of any personal injury or property damage that results from Contractor's performance of street sweeping services.

8. Extraordinary Incidents. Any extraordinary incident such as vandalism, acts of God, and third party negligence which have affected or will affect City property and which is beyond the scope of Contractor's normal maintenance responsibilities shall be documented by Contractor by means of phone calls, photographs and, where appropriate, written statements given to the Director's office.

If necessary, Contractor shall file a report with local law enforcement.

9. Signs. Contractor shall not post signs or advertising unless prior written approval therefore is obtained from City. Contractor shall indicate Contractor’s name on all vehicles used to provide street sweeping services pursuant to this Agreement.

23.b
Packet Pg. 965 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

10. Laws to be Observed. Contractor shall keep fully informed of and in compliance with all federal and State laws and all of City's municipal ordinances and regulations which in any manner affect those engaged or employed in the work or the materials used in the work, or which in any way affect the conduct of work and of all orders and decrees of bodies or tribunals having any jurisdiction or authority over the same.

23.b
Packet Pg. 966 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 8:

PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND

FACILITY STANDARDS
Contractor has selected and arranged for Discarded Materials to be Transported to Approved Facilities for Transfer, Source Separated Recyclable Materials Processing, Source Separated Organic Materials Processing, Organic Waste Processing, C&D Processing, and Disposal. The Approved Facilities shall comply with the standards specified in this Exhibit. Pursuant to Section 4.7 of the Agreement, if the Contractor does not own or operate one or more of the Approved Facilities, Contractor shall enter into a subcontract agreement with the Owner or Facility operator of such Approved Facility(ies) and the requirements of Section 4.7 of the Agreement and this Exhibit shall pertain to the subcontractor(s).

Note that Contractor, by definition in Article 1 of the Agreement, includes Affiliates, DBAs, and subcontractors. As a result, requirements of Section 4.7 of the Agreement and this Exhibit shall pertain to Affiliate(s) and subcontractors providing Facility-related services.

8.1 General Requirements
A. Overview. Contractor agrees to Transport and deliver Discarded Materials it Collects in the City to an appropriate Approved Facility(ies) for Transfer, Processing, or Disposal, as applicable for each type of Discarded Material. As of the commencement date of this Agreement, the Approved Facilities, which were selected by Contractor and reviewed and approved by the City, are listed in the table on the following page and in the definitions in Article 1 of this Agreement. Contractor will perform all Transfer, Processing, and Disposal services at Approved Facilities in accordance with Applicable Law, standard industry practice, and specifications and other requirements of this Agreement.

23.b
Packet Pg. 967 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

Approved Facilities
Material Type
Approved
Transfer Facility
(if applicable)
Approved Facility
(Processing or Disposal Facility)
Description of Processing
Methodology
(Material Recovery Facility,
composting Facility, anaerobic
digestion, etc.)
Source Separated
Recyclable Materials
CR&R Material Recovery & Transfer Op.:
• SWIS: 13-AA-0109
• Operator: CR&R Incorporated
• Address: 599 East Main Street, El
Centro, California 92243
El Centro Direct Transfer Station:
• SWIS: 13-AA-0116
• Operator: CR&R Incorporated
• Address: 853 Dogwood, El Centro,
California 92243
South Yuma County Landfill:
• Operator: CR&R Incorporated
• Address: 19536 South Avenue 1E, Yuma,
Arizona 85365
Material Recovery Facility
Green Waste CR&R Material Recovery & Transfer Op.:
• SWIS: 13-AA-0109
• Operator: CR&R Incorporated
• Address: 599 East Main Street, El
Centro, California 92243
El Centro Direct Transfer Station:
• SWIS: 13-AA-0116
• Operator: CR&R Incorporated
• Address: 853 Dogwood, El Centro,
California 92243
Yuma County Composting at South Yuma County
Landfill:
• Operator: CR&R Incorporated
• Address: 19536 South Avenue 1E, Yuma,
Arizona 85365
Composting Facility
Food Waste CR&R Material Recovery & Transfer Op.:
• SWIS: 13-AA-0109
• Operator: CR&R Incorporated
• Address: 599 East Main Street, El
Centro, California 92243
El Centro Direct Transfer Station:
• SWIS: 13-AA-0116
Yuma County Composting at South Yuma County
Landfill:
• Operator: CR&R Incorporated
• Address: 19536 South Avenue 1E, Yuma,
Arizona 85365
Composting Facility

23.b
Packet Pg. 968 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise

Material Type
Approved
Transfer Facility
(if applicable)
Approved Facility
(Processing or Disposal Facility)
Description of Processing
Methodology
(Material Recovery Facility,
composting Facility, anaerobic
digestion, etc.)
• Operator: CR&R Incorporated
• Address: 853 Dogwood, El Centro,
California 92243
Source Separated Organic
Materials
CR&R Material Recovery & Transfer Op.:
• SWIS: 13-AA-0109
• Operator: CR&R Incorporated
• Address: 599 East Main Street, El
Centro, California 92243
El Centro Direct Transfer Station:
• SWIS: 13-AA-0116
• Operator: CR&R Incorporated
Address: 853 Dogwood, El Centro,
California 92243
Yuma County Composting at South Yuma County
Landfill:
• Operator: CR&R Incorporated
• Address: 19536 South Avenue 1E, Yuma,
Arizona 85365
Composting Facility
Black Container Waste CR&R Material Recovery & Transfer Op.:
• SWIS: 13-AA-0109
• Operator: CR&R Incorporated
• Address: 599 East Main Street, El
Centro, California 92243
El Centro Direct Transfer Station:
• SWIS: 13-AA-0116
• Operator: CR&R Incorporated
Address: 853 Dogwood, El Centro,
California 92243
South Yuma County Landfill:
• Operator: CR&R Incorporated
• Address: 19536 South Avenue 1E, Yuma,
Arizona 85365
Disposal Facility
C&D CR&R Material Recovery & Transfer Op.:
• SWIS: 13-AA-0109
• Operator: CR&R Incorporated
• Address: 599 East Main Street, El
Centro, California 92243
South Yuma County Landfill:
• Operator: CR&R Incorporated
• Address: 19536 South Avenue 1E, Yuma,
Arizona 85365
Processing Facility

23.b
Packet Pg. 969 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise

Material Type
Approved
Transfer Facility
(if applicable)
Approved Facility
(Processing or Disposal Facility)
Description of Processing
Methodology
(Material Recovery Facility,
composting Facility, anaerobic
digestion, etc.)
El Centro Direct Transfer Station:
• SWIS: 13-AA-0116
• Operator: CR&R Incorporated
Address: 853 Dogwood, El Centro,
California 92243

23.b
Packet Pg. 970 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise

B. Facility Capacity Guarantee. Contractor shall guarantee sufficient capacity over the Term of this Agreement to Transfer (if applicable), Transport, and Process all Source Separated Recyclable Materials, Source Separated Organic Materials, and C&D Debris Collected under this Agreement to the Approved Facility for Processing as applicable for each material type. Contractor shall conduct Processing activities for all Source Separated Recyclable Materials, Source Separated Organic Materials, and C&D to recover Recyclable Materials and Organic Waste to reduce Disposal. The Processing shall be performed in a manner that minimizes Disposal to the greatest extent practicable and complies with Applicable Law, including SB 1383. Contractor may Dispose of Organic Waste from homeless encampments and illegal Disposal sites and quarantined Organic Waste, which meet the requirements described in 14 CCR Section 18984.13(d), rather than Process such materials.

C. Separate Handling Requirements

1. Contractor shall keep Source Separated Recyclable Materials, Source Separated Organic Materials, and C&D separate from each other and separate from other Solid Waste streams and shall Process the materials separately from each other and separately from other Solid Waste streams.

2. Pursuant to 14 CCR Section 17409.5.6(a)(1), Remnant Organic Waste separated from the Black Container Waste for recovery can be combined with Organic Waste removed from the Source Separated Organic Materials for recovery once the material from the Source Separated Organic Materials has gone through the Organic Waste recovered measurement protocol described in 14 CCR Section 17409.5.4.

D. Residue Disposal. Contractor shall be responsible for Disposal of residue from Processing activities at its own expense and may select the Disposal Facility(ies) to be used for such purpose.

E. Processing Facility Residue Guarantees. Upon request of the City, Contractor shall provide a certified statement from the Facility operator documenting its residue level. The residue level shall be calculated separately for each material type and for each Approved Facility used for Recycling and Processing. The residue level calculation method shall be reviewed and approved by the City.

F. Source Separated Recyclable Materials Processing Standards

1. Contractor shall arrange for Processing of all Source Separated Recyclable Materials at a Facility that recovers materials designated for Collection in the Blue Container and in a manner deemed not to constitute Landfill Disposal pursuant to 14 CCR Section 18983.1(a) which states that Landfill Disposal includes final deposition of Organic Waste at a Landfill or use of Organic Waste as ADC or AIC.

2. Limits on Incompatible Materials in Recovered Organic Waste:
a. Limits. Except as described in Section 8.1.G.5.c of this Exhibit 8, Contractor’s Transfer/Processing Facility or operation shall only send offsite that Organic Waste (such as, but not limited to, paper products and printing and writing paper) recovered after Processing Source Separated Recyclable Materials that meets the following requirements or as otherwise specified in 14 CCR Section 17409.5.8(a):

23.b
Packet Pg. 971 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

i. On and after July 1, 2022, with no more than 20 percent (20%) of Incompatible Material by weight; and,
ii. On and after January 1, 2024, with no more than 10 percent (10%) of Incompatible Material by weight.
b. Measurement. Contractor shall measure the actual levels of Incompatible Materials in accordance with procedures described in 14 CCR Section 17409.5.8(b).

G. Source Separated Organic Materials Processing Standards.

1. Contractor shall arrange for Processing of all Source Separated Organic Materials at a Facility that recovers Source Separated Organic Materials and in a manner deemed not to constitute Landfill Disposal pursuant to 14 CCR Section 18983.1(a) which states that Landfill Disposal includes final deposition of Organic Waste at a Landfill or use of Organic Waste as ADC or AIC.

2. Contractor shall arrange for Source Separated Organic Materials Processing at the Approved Organic Waste Processing Facility that meets one or more of the following criteria, and such Facility or operation is capable of and permitted to accept and recover the types of Organic Wastes included in the Source Separated Organic Materials:
a. “Compostable Material Handling Operation or Facility” as defined in 14 CCR Section 17852(a)(12); small composting facilities that are otherwise excluded from that definition; or Community Composting as defined within 14 CCR Section 18982(a)(8). The compostable materials handling operation or Facility shall, pursuant to 14 CCR Section 17867(a)(16), demonstrate that the percentage of Organic Waste in the materials sent to Disposal is:
i. On and after July 1, 2022, less than 20 percent (20%); and, ii. On and after January 1, 2024, less than 10 percent (10%). b. An “In-vessel Digestion Operation or Facility” as defined in 14 CCR 17896.5. The in-vessel digestion Facility or operation shall, pursuant to 14 CCR Section 17896.44.1, demonstrate that the percentage of Organic Waste in the materials sent to Disposal is:
i. On and after July 1, 2022, less than 20 percent (20%); and, ii. On and after January 1, 2024, less than 10 percent (10%). c. A “Biomass Conversion Operation” as defined in Section 40106 of the California Public Resources Code.
d. Soil amendment for erosion control, revegetation, slope stabilization, or landscaping at a Landfill, that is defined as a reduction in Landfill Disposal in accordance with 14 CCR Section 18983.1(b).
e. Land application of compostable materials consistent with 14 CCR Section 17852(a)(24.5) and subject to the conditions in 14 CCR Section 18983.1(b)(6).

23.b
Packet Pg. 972 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

f. Lawful use as animal feed, as set forth in California Food and Agricultural Code Section 14901 et seq. and Title 3, Division 4, Chapter 2, Subchapter 2 commencing with 14 CCR Article 1, Section 2675.
g. Other operations or facilities with processes that reduce short-lived climate pollutants that are approved by the State in accordance with 14 CCR Section 18983.2.

If Contractor is interested in using an operation, Facility, or activity not expressly identified above for Source Separated Organic Materials Processing, Contractor shall be responsible for securing the approvals necessary from CalRecycle prior to the City’s final approval of such operation, Facility, or activity, and shall do so in accordance with the procedures specified in 14 CCR Section 18983.2.

3. Preparation of Materials for Processing. The Contractor shall be responsible for preparing materials for Processing at the Approved Organic Waste Processing Facility, which shall include, but is not limited to, removal of visible physical contaminants such as plastic, glass, metal, and chemicals prior to size reduction.

4. “Overs” Management. The City may require that at no cost to the City, the Contractor conduct and provide City-specific Organic Waste Processing residue and “overs” composition data to the City reflecting then-current conditions and using a sampling protocol acceptable to the City, in its reasonable discretion. In the event that the composition of “overs” includes appreciable quantities of Organic Waste, as determined by Contractor’s composition study or visual assessment by the City, the Contractor shall immediately inform the City and propose a strategy for reducing the “overs” level. At the Contractor’s expense, Contractor shall implement the “overs” management strategy within five (5) business days of City approval.

Such a strategy may include having the Approved Organic Waste Processing Facility re-grind large woody “overs” (after removal of contaminants) and reintroduce the ground “overs” into the composting process in order to increase the recovery of that material and reduce the Organic Waste contained in the materials sent to Disposal, or may include an alternative approach approved by the City.

5. Limits on Incompatible Materials in Recovered Organic Waste a. Limits. Except as described in Section 8.1.G.5.c. of this Exhibit 8, Contractor’s Transfer/Processing Facility or operation shall only send offsite that Organic Waste recovered after Processing the Source Separated Organic Materials that meets the following requirements or as otherwise specified in 14 CCR Section 17409.5.8(a):
i. On and after July 1, 2022, with no more than 20 percent (20%) of Incompatible Material by weight; and,
ii. On and after January 1, 2024, with no more than 10 percent (10%) of Incompatible Material by weight.
b. Measurement. Contractor shall measure the actual levels of Incompatible Materials in accordance with procedures described in 14 CCR Section 17409.5.8(b).

23.b
Packet Pg. 973 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

c. Exceptions. The limits in Section 8.1.G.5.a. of this Exhibit 8, shall not apply to the recovered Organic Waste sent offsite from the Transfer/Processing Facility or operation, if the Contractorsends the recovered Organic Waste from the Transfer/Processing Facility or operation to one or more of the following types of Facilities that will further Process the Organic Waste, or as otherwise specified in 14 CCR Section 17409.5.7(c):
i. A Transfer/Processing Facility or operation that complies with Section 8.1.G.5.a. of this Exhibit 8;
ii. A compostable materials handling Facility or operation that, pursuant to 14 CCR Section 17867(a)(16), demonstrates that the percentage of Organic Waste in the materials sent to Disposal is:
(A) On and after July 1, 2022, less than 20 percent (20%); and, (B) On and after January 1, 2024, less than 10 percent (10%). iii. An in-vessel digestion Facility or operation that, pursuant to 14 CCR Section 17896.44.1, demonstrates that the percentage of Organic Waste in the materials sent to Disposal is:
(A) On and after July 1, 2022, less than 20 percent (20%); and, (B) On and after January 1, 2024, less than 10 percent (10%). iv. An activity that meets the definition of a Recycling center as described in 14 CCR Section 17402.5(d).

H. C&D Program Standards

1. Contractor shall comply with the CALGreen Construction and Demolition materials Recycling requirements.

2. Contractor shall deliver mixed C&D loads to the Approved C&D Processing Facility for Recycling.

3. Contractor shall deliver Source Separated C&D such as, but not limited to, dirt, concrete, wood waste, cardboard, or other recyclable C&D to the Approved C&D Processing Facility or other Facility authorized for Recycling C&D, and shall deliver salvageable materials to a party for Reuse or salvage.

4. Contractorshall arrange for Processing of Organic Waste in the C&D at a Facility that recovers Organic Waste from C&D and in a manner deemed not to constitute Landfill Disposal pursuant to 14 CCR Section 18983.1(a), which states that Landfill Disposal includes final deposition of Organic Waste at a Landfill or use of Organic Waste as ADC or AIC.

I. Plastic Bags. If plastic bags are accepted in the Organic Waste Recovery program, Contractor shall annually submit to City written notice from the Approved Organic Waste Processing Facility

23.b
Packet Pg. 974 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

confirming said Facility can remove plastic bags when Processing Source Separated Organic Materials.

J. Compostable Plastics. Contractor may accept Compostable Plastics at the Approved Organic Waste Processing Facility. Pursuant to this Agreement, Contractor shall annually submit to City written notice from the Approved Organic Waste Processing Facility confirming said Facility can Process and recover these Compostable Plastics.

K. Marketing. Upon request, Contractor shall provide proof to the City that all Source Separated Recyclable Materials, Source Separated Organic Materials, and C&D Collected by Contractor were Processed and recovered materials were marketed for Recycling, salvage, or Reuse or as organics products in such a manner that materials are not deemed Landfill Disposal pursuant to SB 1383 and in a manner that materials are deemed Diversion pursuant to AB 939. All residue from the Recycling and Processing activities that is not marketed shall be reported to the City as residue and accounted for as Disposal Tonnage at the Approved Disposal Facility. No Source Separated Recyclable Materials, Source Separated Organic Materials, or C&D shall be Transported to a domestic or foreign location if Landfill Disposal of such material is its intended use. If Contractor becomes aware that a broker or buyer has illegally handled, Disposed of, or used material generated in the City that is not consistent with Applicable Law, Contractor shall immediately inform the City and terminate its contract or working relationship with such party. In such case, Contractor shall find an alternative market for the material(s) recovered from the Source Separated Recyclable Materials, Source Separated Organic Materials, and/or C&D that is compliant with Applicable Law.

The performance of commodity markets for materials recovered from Source Separated Recyclable Materials shall not be considered a reason for deeming a Facility “unavailable”, nor shall it be considered an acceptable basis for the need to use an Alternative Facility, nor shall it serve as the basis for any adjustment in Contractor’s compensation under this Agreement, other than as specifically contemplated in Article 6 of this Agreement.

L. Disposal of Source Separated Recyclable Materials, Source Separated Organic Materials, and C&D Prohibited. With the exception of Processing residue, which shall not exceed the limits established under Applicable Law, Source Separated Recyclable Materials, Source Separated Organic Materials, and C&D Collected under this Agreement may not be Disposed of in lieu of Recycling, Processing, or marketing the material, without the expressed written approval of the City.

If for reasons beyond its reasonable control, Contractor believes that it cannot avoid Disposal of the Source Separated Recyclable Materials, Source Separated Organic Materials, or C&D Collected in the City, then it shall prepare a written request for City approval to Dispose of such material. Such request shall contain the basis for Contractor’s belief (including, but not limited to, supporting documentation), describe the Contractor's efforts to arrange for the Processing of such material, the period required for such Disposal, and any additional information supporting the Contractor's request.

In addition, the request shall describe the Contractor’s proposed interim plans for implementation while the City is evaluating its request. If the City objects to the interim plans, the City shall provide written notice to the Contractor and request an alternative arrangement. The City shall consider the Contractor’s request and inform Contractor in writing of its decision within thirty (30) business days. Depending on the nature of the Contractor’s request, City may extend the thirty (30) business

23.b
Packet Pg. 975 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

day period, at its own discretion, to provide more time for evaluation of the request and negotiation of an acceptable arrangement with the Contractor.

8.2 Black Container Waste Disposal Standards
A. Disposal of Black Container Waste Collected. Contractor shall Transport all Black Container Waste Collected under this Agreement to the Approved Disposal Facility.

B. Disposal at Approved Facility. Contractor shall not Dispose of Black Container Waste or residue by depositing it on any public or private land, in any river, stream, or other waterway, or in any sanitary sewer or storm drainage system or in any other manner which violates Applicable Laws.

C. Disposal Services. Contractor shall provide Disposal services at the Approved Disposal Facility that include, but are not limited to:

1. Operating, managing, and maintaining the Solid Waste fill areas, including the placement, burying, and compaction of Solid Waste in the Refuse fill areas; stockpiling, placement, and compaction (if necessary) of final cover; management of fill operations with regard to fill sequencing, side slopes configuration, and working face location and configuration;

2. Providing, operating, and maintaining all equipment, rolling stock, and supplies necessary for operations, closure, post-closure, and environmental monitoring; and,

3. Operating, maintaining, and managing leachate and Landfill gas management systems, groundwater monitoring and management systems, storm water drainage and control systems, treatment Facilities, buildings, on-site roadways, utilities, and any other required Facility elements.

D. Closure and Post-Closure Disposal Facility. will safely operate, maintain, and manage the Approved Disposal Facility in compliance with Applicable Law not only during the Term, but also thereafter until and during the Approved Disposal Facility closure and post-closure period(s) (including fulfillment of State funding requirements). Contractor’s compliance obligations include compliance with the closure/post-closure requirements of applicable regulating agencies throughout the Term of this Agreement and through the required federal, State, or local post-closure period. Contractor is solely responsible, operationally and financially, for: (i) the appropriate closure and post-Closure activities of the Approved Disposal Facility; and, (ii) the establishment and funding of any reserve funds required by Applicable Law for the purposes of providing funds for the payment of costs for closure of the Approved Disposal Facility (or any cell within the Approved Disposal Facility) or postclosure activities relating to the Approved Disposal Facility. Contractor will not hold the City responsible for paying any deficiencies in required reserves. In addition, Contractor will not hold the City responsible for making any payments if actual closure and post-closure costs relating to the Approved Disposal Facility exceed the amounts reserved by the Contractor for that purposes. This obligation survives expiration or termination of the Agreement.

8.3 Weighing of Discarded Materials
A. Maintenance and Operation. This Section 8.3 of this Exhibit 8 applies to motor vehicle scales used at the Approved Facilities. Approved Facilities shall be equipped with one or more certified motor

23.b
Packet Pg. 976 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

vehicle scales in accordance with Applicable Law. Upon request, Contractorshall arrange for Facility operator to provide documentary evidence of such scale certification within ten (10) days of City’s request during the Term. Licensed weigh master(s) shall operate those scales to weigh all inbound and outbound Collection vehicles Transporting Discarded Materials and all Transfer vehicles Transporting materials to another site. Contractor shall arrange for Facility operator to provide City with access to weighing information at all times and copies thereof within three (3) business days following the City’s request. Exceptions to weighing requirements are specified in Section 8.3.G. of this Exhibit 8.

B. Vehicle Tare Weights for Approved Facility(ies). Within thirty (30) days prior to the Commencement Date, Contractor shall coordinate with the Facility operator(s) to ensure that all Collection vehicles used by Contractor to Transport Discarded Materials to Approved Facilities are weighed to determine unloaded (“tare”) weights. Contractor shall work with Facility operator(s) to electronically record the tare weight, identify vehicle as Contractor’s, and provide a distinct vehicle identification number for each vehicle. Contractor shall provide City with a report listing the vehicle tare weight information upon request. Contractor shall promptly coordinate with Facility operator to weigh additional or replacement Collection vehicles prior to Contractor placing them into service.

Contractor shall check tare weights at least annually, or within fourteen (14) days of a City request, and shall re-tare vehicles immediately after any major maintenance service that could impact the weight of the vehicle by more than fifty (50) pounds.

C. Substitute Scales. If any scale at the Approved Facility is inoperable, being tested, or otherwise unavailable, Facility operator shall use reasonable business efforts to weigh vehicles on the remaining operating scale(s). To the extent that all the scales are inoperable, being tested, or otherwise unavailable, Facility operator shall substitute portable scales until the permanent scales are replaced or repaired. Facility operator shall arrange for any inoperable scale to be repaired as soon as possible.

D. Estimates. Pending substitution of portable scales or during power outages, Facility operator shall estimate the Tonnage of the Discarded Materials Transported to and accepted at the Approved Facilities by utilizing the arithmetic average of each vehicle's recorded tons of Discarded Materials delivered on its preceding three (3) deliveries.

During any period of time the scales are out of service, Facility operator shall continue to record all information required by this Section 8.3 for each delivery of Discarded Materials to the Approved Facilities and each load of material Transferred to another Approved Facility(ies).

E. Weighing Standards and Procedures. At the Approved Facilities, Facility operator shall weigh and record inbound weights of all vehicles delivering Discarded Materials when the vehicles arrive at the Facility. In addition, Facility operator shall weigh and record outbound weights of vehicles for which Facility operator does not maintain tare weight information. Furthermore, Facility operator shall weigh and record outbound weights of all Transfer vehicles Transporting Discarded Materials from a Transfer Facility to another Approved Facility(ies) for Processing or Disposal.

F. Records. Facility operator shall maintain scale records and reports that provide information including date of receipt, inbound time, inbound and outbound weights (or tare weights) of vehicles, vehicle identification number, jurisdiction of origin of materials delivered, type of material,

23.b
Packet Pg. 977 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

company/hauler identification, and classification, type, weight, and final destination of Discarded Material if the Discarded Materials are Transferred to another Approved Facility(ies).

G. Exceptions to Weighing Requirements. If the Approved Facility does not have motor vehicle scales to weigh Contractor’s vehicles and Discarded Materials delivered to the Facility, Contractor shall obtain a receipt for delivery of the Discarded Materials that identifies the date and time of delivery, the type of material delivered, and the vehicle number. Contractor or Facility operator shall estimate the tonnage of material delivered for each load based on the volumetric capacity of the vehicle and material density factors (e.g., pounds per cubic yard) approved by or designated by the City.

H. Upon-Request Reporting. If vehicle receiving and unloading operations are recorded on video cameras at the Approved Facilities, Contractor shall make those videos available for City review during the Approved Facilities’ operating hours, upon request of the City, and shall provide the name of the driver of any particular load if available.

8.4 Rejection of Excluded Waste
A. Inspection. Contractor will use standard industry practices to detect and reject Excluded Waste in a uniform and non-discriminatory manner and will not knowingly accept Excluded Waste at the Approved Facility(ies). Contractor will comply with the inspection procedure contained in its permit requirements. Contractor will promptly modify that procedure to reflect any changes in permits or Applicable Law.

B. Excluded Waste Handling and Costs. Contractor will arrange for or provide handling, Transportation, and delivery to a Recycling, incineration, or a Disposal Facility permitted in accordance with Applicable Law of all Excluded Waste detected at the Approved Facility(ies).

Contractor is solely responsible for making those arrangements or provisions and all costs thereof.

Nothing in this Agreement will excuse the Contractor from the responsibility of handling Excluded Wastes that Contractorinadvertently accepts in a lawful manner and of arranging for the disposition of that Excluded Waste in accordance with Applicable Law.

8.5 Discarded Materials Evaluations at Approved Facilities A. General. Contractor shall conduct the following “evaluations” at Approved Facilities:

1. Black Container Waste Evaluations. Waste evaluations of Black Container Waste at the Approved Transfer Facility (if applicable) in accordance with 14 CCR Sections 18998.1(a)(3)(A) and 17409.5.7.

2. Organic Waste Recovery Efficiency Evaluations. Waste evaluations at Approved Transfer Facility (if applicable) or Approved Processing Facility(ies) in accordance with 14 CCR Sections 17409.5.1 to 17409.5.5.

3. Evaluation of Organic Waste in Residuals. Compliance evaluations of Organic Waste to determine the level of Organic Waste in materials sent for Disposal in accordance with 14 CCR Sections 17409.5.3, 17409.5.5, 17867 (Compost operations and facilities), and 17896.44.1 (Invessel digestion operations and facilities).

23.b
Packet Pg. 978 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

B. Record Keeping and Reporting. For the evaluations described above, Contractor shall maintain all records and submit reports to CalRecycle as described in 14 CCR Division 7, Chapter 3, Article 6.3, as applicable. Contractor shall report this information to the City on a monthly basis in accordance with Article 8.

C. Scheduling of Evaluations. Contractor shall schedule evaluations during normal working hours.

Contractor shall provide City notice of its intent to conduct evaluations at the Approved Facility(ies) at least ten (10) working days in advance of the evaluations.

D. Observance of Study by City and/or CalRecycle. Contractor acknowledges that, upon request, a representative of the City and/or CalRecycle may oversee its next scheduled quarterly sampling and evaluation of any of the evaluations described in Section 8.5.A of this Exhibit 8 conducted at the Approved Facility(ies).

23.b
Packet Pg. 979 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

EXHIBIT 9:

COLLECTION SYSTEM SPECIFICATIONS

1. General. Upon initiation of services under this Agreement, Contractor shall provide a threeContainer Collection program for the separate Collection of Source Separated Recyclable Materials, Source Separated Organic Materials, and Black Container Waste as specified in this Section, using Containers that comply with the requirements of Section 4.6.4.1.

A. Source Separated Recyclable Materials Collection (Blue Container). Contractor shall provide Blue Containers to Customers for Collection of Source Separated Recyclable Materials.

Contractor shall Transport the Source Separated Recyclable Materials to (i) the Approved Source Separated Recyclable Materials Processing Facility, or (ii) the Approved Transfer Facility for Transfer and Transport to the Approved Source Separated Recyclable Materials Processing Facility, as specified in Exhibit 8.

Source Separated Recyclable Materials that are to be accepted for Collection in the Source Separated Recyclable Materials Collection program include the following: newspaper, phone books, catalogs, magazines, brown paper bags, packaging, egg cartons, white paper, colored paper, envelopes, junk mail, glossy paper, shredded paper, carbonless paper, chipboard/boxboard, cardboard, empty aluminum cans, empty tin cans, juice containers, sauce containers, soda cans, tuna cans, soup cans, loose jar lids, empty aerosol, empty glass beverage containers, empty glass food containers, all glass colors, empty CRV and non-CRV plastic containers, trays and bottles #1 through #7, soft cover books/manuals, milk/juice cartons, and rigid plastic; such materials shall include Paper Products and Printing and Writing Papers as defined by SB 1383, 14 CCR Section 18982(a). The Parties agree that the list of accepted types of Source Separated Recyclable Materials may be added to or removed from time to time by mutual agreement of the parties provided that in all cases Source Separated Recyclable Materials (including Paper Products and Printing and Writing Papers as defined by SB 1383, 14 CCR Section 18982(a)) is included for Collection. Contractor shall not add or remove materials to or from this list without written approval from the City or signed amendment to the Agreement, and such approval shall not be unreasonably withheld.

Prohibited Container Contaminants shall not be Collected in the Blue Containers.

B. Source Separated Organic Materials Collection (Green Container). Upon initiation of services under this Agreement, Contractor shall provide Green Containers to Customers for Source Separated Organic Materials Collection. Contractor shall Transport the Source Separated Organic Materials to (i) the Approved Organic Waste Processing Facility, or (ii) the Approved Transfer Facility for Transfer and Transport to the Approved Organic Waste Processing Facility, as specified in Exhibit 8.

Source Separated Organic Materials that are to be accepted for Collection in the Source Separated Organic Materials Collection program include the following: Food Scraps, FoodSoiled Paper, Compostable Plastics, and Green Waste. The Parties agree that types of Source Separated Organic Materials may be added to or removed from this list from time to time by mutual agreement of the parties. Contractorshall not add or remove materials to or from this list without written approval from the City or signed amendment to the Agreement, and such approval shall not be unreasonably withheld. Carpets, Non-Compostable Paper, textiles, and Prohibited Container Contaminants shall not be Collected in the Green Containers.

23.b
Packet Pg. 980 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate)

Green Waste that is to be accepted for Collection in the Source Separated Organic Materials Collection program include the following: all food, fruits, vegetables, meat and bones, poultry, seafood, shellfish, dairy products, cheese, eggs and eggshells, rice, beans, bread, pasta, coffee grounds, and plate scrapings of these materials, Food Soiled Paper towels, tissue products, paper napkins, paper plates and cups, coffee filters, tea bags, greasy pizza boxes, paper bags and cardboard and; Loose green material from the yard, grass clippings, leaves, weeds, tree prunings, bush pruning’s, plant material, tree trunks/stumps/branches 2” or less in diameter.

The Parties agree that accepted types of Green Waste may be added to or removed from this list from time to time by mutual agreement of the parties. Contractorshall not add or remove materials to or from this list without written approval from the City or signed amendment to the Agreement, and such approval shall not be unreasonably withheld. Carpets, NonCompostable Paper, textiles, and Prohibited Container Contaminants shall not be Collected in the Green Containers.

Contractor may Collect Compostable Plastics in the Green Containers for Processing at the Approved Organic Waste Processing Facility. At least three (3) months prior to the commencement of the Collection of Compostable Plastics in the Source Separated Organic Materials program, Contractor shall provide written notification to the City that the Facility can Process and recover these Compostable Plastics. Contractor shall provide written notification to the City annually that the Facility has and will continue to have the capabilities to Process and recover the Compostable Plastics. Contractor shall notify the City within five (5) business days of the Facility’s inability to accept Compostable Plastics. The notification shall include: a description of the reasons the Facility is no longer able to Process and recover Compostable Plastics; the period of time the Facility will not Process and recover Compostable Plastics; and, the Contractor’s proposed plan to assist in education and outreach of Customers in the event that Compostable Plastics are no longer accepted for Collection. Such changes shall be handled as a change in scope pursuant to Section 2.10.

C. Black Container Waste Collection (Black Container). Contractor shall provide Black Containers to Customers for Collection of Black Container Waste. Contractor shall Transport the Black Container Waste to (i) the Approved Disposal Facility, or (ii) the Approved Transfer Facility for Transfer and Transport to the Approved Disposal Facility, as specified in Exhibit 8.

Contractor may allow carpets and textiles to be placed in the Black Containers. Prohibited Container Contaminants shall not be Collected in the Black Containers.

2. C&D Collection
Contractorshall Collect C&D debris from all Customers that subscribe to its C&D debris Collection services and Transport the C&D to (i) the Approved C&D Processing Facility, or (ii) the Approved Transfer Facility for Transfer and Transport to an Approved C&D Processing Facility. Contractor shall provide C&D debris Collection and Processing services in accordance with this Agreement. Contractor shall charge Customers for C&D debris Collection services at City-approved Rates

23.b
Packet Pg. 981 Attachment: El Centro CRR Amended Agreement 2022 3.31.22 (5375 : Restated CR&R franchise agreement and rate) City Council of the City of El Centro Meeting: 04/05/22 11:30 AM 1275 Main Street Department: Public Works
El Centro, CA 92243 Category: Authorization
Prepared By: Abraham Campos
SCHEDULED Department Head: Abraham Campos
ACTION ITEM (ID # 5478) DOC ID: 5478
Discussion and any necessary action directing staff to
administer the Proposition 218 process for solid waste
collection rates
CITY MANAGER’S RECOMMENDATION:

1. Direct staff to administer the Proposition 218 majority protest process and send out notice of the proposed increased to all property owners with trash collection service.

2. Set a Public Hearing on June 7, 2022 for the City Council’s consideration of the proposed rate schedule.

FISCAL IMPACT:

Administering the Proposition 218 majority process will cost approximately $15,000. If approved, the new agreement with CR&R will generate $50,000 per year to the City to reimburse contract and program implementation costs such as this. The proposed passthrough costs to rate payers are discussed in this report.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Goal 2, Environmental Sustainability & Infrastructure. Action 2.9, Ensure compliance with State and solid waste and recycling requirements.

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

NA
BACKGROUND:

The City is proposing to increase trash and recycle collection rates due to increasing costs of service and costs associated with compliance with new State regulations.

Increasing the rates must comply with Proposition 218, which requires certain procedures to be followed with regard to “property-related” fee increases imposed by government agencies. This report provides the proposed rate increases and identifies the procedures to implement the new rates.

On March 20, 2007, the City awarded the eight-year Agreement between City of El Centro and CR&R Incorporated for Integrated Solid Waste Management Services to CR&R for citywide commercial and residential refuse and recycling collection services (Agreement). The agreement commenced on July 1, 2007. On July 1, 2011, the Third Amendment to the Agreement extended the term of the Agreement to July 2027. On March 21, 2017, Council approved new commercial organic and multi-family green waste rate schedules to fund CR&R’s expenses for implementing programs for commercial organic and multi-family green waste.

The City determined the need to amend and restate the Agreement to incorporate updates and new regulations, such as Senate Bill 1383. The City retained HF&H 24 Packet Pg. 982
Action Item (ID # 5478) Meeting of April 5, 2022
Consultants, LLC to assist in the development and negotiation of an Amended and Restated Agreement. The Amended and Restated Agreement between City of El Centro and CR&R Incorporated for Integrated Solid Waste Management Services (New Agreement), which will include residential and commercial organics recycling collection services, if approved will become effective upon City Council approval on April 5, 2022, with the term commencing May 1, 2022, and expiring on June 30, 2027. The New Agreement may be extended in five-year intervals by mutual agreement of the City and CR&R, same as with the original amended agreement.

DISCUSSION:

Pursuant to Proposition 218, the Right to Vote on Taxes Act of 1996, local governments must follow certain requirements before increasing an existing property-related fee such as the rates imposed for solid waste collection.

Local governments must mail information about a proposed new or increased fee in a notice of public hearing to every resident and property owner (and tenants/commercial or single family/multifamily of such properties who actually pay the rates), and the governing body of the local government must, at the time and place specified in the hearing notice, conduct a public hearing to consider the new fee or fee increase. The governing body must reject the fee if a majority of the property owners(or tenants that pay the rate) protest in writing or in person.

A sample City public hearing notice of the proposed rates is attached to this agenda.

Council is not requested to approve this notice, but is requested to authorize staff to start the Proposition 218 process following the law. Once the final notice is reviewed and approved by the City Attorney, it will be mailed to every residential, multi-family, and commercial account in the City. Council will receive a copy as well.

In accordance with State law, the public hearing notice will include information outlining the maximum rate increases for solid waste collection services for a five-year (5-year) period commencing July 1, 2022 through June 30, 2027.

The proposed July 1, 2022 rates included in Exhibit A of the sample public hearing notice, attached hereto are the actual rates that will be charged to customers foregoing a majority protest (50% plus one protest from businesses and residents/property owners in the City.) There are approximately 10,247 accounts in the city. That number holding, 5,124 protest votes would create a majority protest.

For the years ending June 30, 2024 through June 30, 2027, beginning July 1, 2023, residential and commercial solid waste service rates and roll-off service rates are proposed to be adjusted on a yearly basis on July 1 of the related year, based on the weighted changes to the rate adjustment factors in Exhibit B for residential and commercial rates, and Exhibit C for roll-off service rates, hereto attached. In either case, the yearly rate increase is limited to the adjustment factors here stated, or 4 percent, whichever is less.

Residential Accounts:
24 Packet Pg. 983
Action Item (ID # 5478) Meeting of April 5, 2022
As a sample, the table below illustrates the maximum possible rate increases for a single-family residential home. Rates beginning July 1, 2023 may be lower if the rate adjustment factors produce an adjustment factor lower than 4 percent.

Sample single-family residential
maximum possible rate increase schedule.

Time Period Max Rate Notes
July 1, 2022 to June 30, 2023 $ 22.95 Includes one time 11.2% increase July 1, 2023 to June 30, 2024 $ 23.87 Includes maximum 4% increase July 1, 2024 to June 30, 2025 $ 24.82 Includes maximum 4% increase July 1, 2025 to June 30, 2026 $ 25.82 Includes maximum 4% increase July 1, 2026 to June 30, 2027 $ 26.85 Includes maximum 4% increase Due to the new recycling requirements, cost of compliance, and recycling markets, multi-family and commercial recycling services will be charged at 75% of the corresponding commercial refuse rates. This is in addition to the onetime 7.0% proposed increased on commercial refuse rates. Understanding the cost impact to rate payers, this increase is proposed to be phased in over two years: multi-family and commercial customers will be charged 37.5% of corresponding refuse rates beginning July 1, 2022, and the remainder 37.5% of corresponding refuse rates effective July 1, 2023 for a total of 75% phased over said two years. It should be noted that recycle carts are proposed at a rate lesser than the corresponding commercial refuse rate to 1) account for the value of the recyclable contents and 2) promote recycling. The full list of rates is found in Exhibit A of the sample public hearing notice attached to this agenda.

Annual rate increases in any given year exceeding the rates proposed in Exhibit A of the sample public hearing notice and any further increases proposed after June 30, 2027, would be subject to approval by the City Council via a public hearing and protest procedures.

OUTREACH EFFORT:

City staff will provide a dedicated phone number to answer questions, create a city webpage with information for residents, and include social media outreach directing users to the dedicated city webpage.

SCHEDULE:

April 5, 2022 Direct staff to administer the Proposition 218 process April 22, 2022 or before Mail Public Hearing Notices
April 22 - June 6, 2022 45 day requirement prior to election June 7, 2022 Public Hearing and Protest Results; Council adopts new rates
July 1, 2022 New rates become effective
CONCLUSION:

1. Direct staff to administer the Proposition 218 majority protest process and send 24 Packet Pg. 984
Action Item (ID # 5478) Meeting of April 5, 2022
out notice of the proposed increased to all property owners (and tenants who pay the rate).

2. Set a Public Hearing on June 7, 2022 for the City Council’s consideration of the proposed rate schedule.

ATTACHMENTS:
• SAMPLE PROP 218 NOTICE (PDF)
• Public Hearing Notice Exhibits A B C (PDF)
24 Packet Pg. 985

NOTICE OF PUBLIC HEARING
Concerning proposed changes to the City of El Centro residential, multifamily, commercial, industrial and roll-off solid waste service rates The City of El Centro is dedicated to providing reliable and cost-effective solid waste collection services to property owners, residents, and businesses.

Pursuant to State law, the El Centro City Council will hold a public hearing at the time, date, and location specified below to consider increases and adjustments to the City’s residential, multifamily, commercial and roll-off solid waste collection and processing service fees (“Solid Waste Service Rates”).

DATE: June 7, 2022
TIME: 6:00 p.m. or as soon thereafter as the matter may be heard LOCATION: City Council Chambers
1275 Main Street
El Centro, CA 92243
The public hearing will include consideration of adopting a resolution that will authorize maximum rate increases for solid waste collection services for a five-year (5-year) period commencing July 1, 2022 through June 30, 2027. The proposed July 1, 2022 rates included in Exhibit “A” hereto are the actual rates that will be charged to customers foregoing a majority protest (50% plus one protest from businesses and residents/property owners in the City). The proposed rates for July 1, 2023 through June 30, 2027 are available on the City’s website at (INSERT LINK), and reflect an estimated four percent increase from year-to-year; however actual increases may vary. Annual rate increases in any given year exceeding four percent and any further increases proposed after June 30, 2027, would be subject to approval by the City Council via public hearing and protest procedures open to interested persons.

The protest process and public hearing will be conducted in accordance with California Constitution Article XIII D, Section 6 (also known as “Proposition 218”). This notice is being sent to all property owners and customers of record (such as tenants) whose parcels receive Solid Waste Services in the City of El Centro, who would be subject to the proposed rate adjustments.

Under Proposition 218, record owners of property or tenants who pay the Solid Waste Service Rates may submit a written protest to the proposed rate changes as explained in this Notice. Only one protest per parcel is permitted.

Please refer to the “How Can I Participate?” section of this document for instructions on submitting a formal written protest against the proposed action. You may also appear at the public hearing at the date and time specified above.

All members of the public are invited to attend the public hearing. The City of El Centro welcomes your participation and input throughout the process as the City Council considers the new rates and estimated future rate adjustments explained in this Notice. If you have questions or comments about the new and estimated future rates, CALL OR EMAIL. Call (760) 352-6178 or email [email protected].

24.a
Packet Pg. 986 Attachment: SAMPLE PROP 218 NOTICE (5478 : Proposed solid waste fee increase prop 218) WHY HAVE I RECEIVED THIS NOTICE?
The City currently contracts with CR&R, Incorporated to provide Solid Waste Services. State law requires that property owners and tenants who pay such fees must receive this notice explaining the amount of the increases and reasons for those increases, as well as how they can file a protest.

HOW CAN I PARTICIPATE OR FILE A PROTEST ?
WHAT DOES THE PROTEST NEED TO CONTAIN: To be counted, a protest must be in writing. AN ORAL PROTEST DOES NOT COUNT. Any record owner of a parcel or any tenant liable for the payment of Solid Waste Service Rates (i.e., a customer of record) where such fees are proposed to increase may submit a written protest of those proposed rate increases.

However, only one written protest will be counted per each parcel. Any written protest must:
(1) state that the property owner or tenant opposes the proposed rate increases to the Solid Waste Service Rates; (2) provide the location of the parcel by street address or assessor’s parcel number; and (3) include the name and signature of the property owner or tenant submitting the protest.

WRITE. Written protests may be mailed to the City of El Centro, Attention: City Clerk, 1275 W Main Street, El Centro, CA 92243 or delivered in-person to the City Clerk at the same address: 1275 W Main Street, El Centro, CA 92243. All protests must include the name, property address, and signature of the person submitting the protest. For any written protest, whether mailed or submitted in person to the City Clerk, please write on the front of the envelope “Attn: Public Hearing on Solid Waste Rate Increases.” No protest submitted via e-mail or other electronic means will be accepted.

All written protests must be received by the City Clerk before the close of the Public Hearing.

ATTEND THE PUBLIC HEARING. Written protests may also be submitted at the Public Hearing on June 7, 2022, at 6:00 p.m., in the City Council Chambers at 1275 W Main Street, El Centro, CA 92243. Only written protests will count toward a majority protest. Written protests must be received before the conclusion of the Public Hearing to be counted. In addition, members of the public will have an opportunity to speak and give testimony regarding the proposed Solid Waste Service Rates at the Public Hearing.

The public hearing may be held electronically or by teleconference if required or permitted by national, state and/or local orders as a result of the COVID-19 public health emergency crisis.

In this event, information will be provided on the City's website and posted in City Council Chambers.

AFTER THE PUBLIC HEARING. At the conclusion of the public hearing, the City Council will hear and consider all written protests of the proposed rate increases submitted before or at the public hearing.

A majority protest means that those representing 50% plus 1 of the properties noticed have filed a written protest. If there is a majority protest, the Council may not move forward with the increase at the level proposed.

24.a
Packet Pg. 987 Attachment: SAMPLE PROP 218 NOTICE (5478 : Proposed solid waste fee increase prop 218) If there is not a majority protest, City Council may consider adoption of a resolution authorizing the rate increases to the City’s Solid Waste Service Rates as described in this notice.

If authorized, the proposed rate increases to the Solid Waste Service Rates will be in effect beginning July 1, 2022, for a five-year period through June 30, 2027 based on the adjustments outlined in this notification.

WHY ARE RATES PROPOSED TO INCREASE?
The City Council has previously determined the collection, processing, and disposal of solid waste in the City is a service to be performed by a private company, under an exclusive franchise agreement. The exclusive amended and restated franchise agreement with CR&R was approved by the City Council on April 5, 2022. The proposed Solid Waste Service Rates effective July 1, 2022, were negotiated between the City and CR&R and are the maximum amount that may be charged to you for Solid Waste Services. Solid Waste Services Rates effective July 1, 2023 through July 1, 2026 may not increase by more than 4% as included in or they would be subject to another Proposition 218 noticed public hearing and approval by the City Council. The new rates are for the operation and administration of the solid waste disposal and recycling services and programs implemented by the franchisee as required by State law, the City Code, and the franchise agreement.

The primary factors for the proposed new rate structure pertain to regular inflationary cost increases, increased costs of providing State-required organics diversion programs and other recently enacted State mandates, volatility in the recycling markets, and increases for solid waste collection costs, such as fuel and supplies.

BASIS UPON WHICH THE CHARGES WERE CALCULATED: For future years, continuing with the current rate setting methodology, and for proposed rate adjustments effective July 1, 2022 through June 30, 2027, certain price indices have been proposed to be used to calculate future rate adjustments; however any increase in residential, multi-family, commercial, industrial or roll-off containers will be capped at a maximum of 4% per year without triggering an additional protest process and public hearing. This insulates rate-payers from inflationary risks.

If approved by the City Council, the proposed 2022 rates included in Exhibit A will go into effect on July 1, 2022. Due to the new recycling requirements, cost of compliance, and recycling markets, multi-family and commercial recycling services will be charged at 75% of the corresponding commercial refuse rates. In an effort to reduce the initial rate impact to ratepayers, CR&R will phase in the multi-family and commercial recycling charge over two years, in addition to the impact under the rate adjustment methodology. For the 2022/2023 fiscal year, the multi-family and commercial recycling rates will be 37.5% of the corresponding refuse rates. For the 2023/2024 fiscal year, the multi-family and commercial recycling rates will be 75% of the corresponding refuse rates.

The annual increase does compound: if the rate is increased by 4% in one year, the increase, of whatever percentage, will be calculated on the existing rate (which includes the prior annual increase). However, the inflator does not carry forward. If the actual rate increase in one year is 5%, and in the next year a lower amount, such as 3%, the 1% increase in the prior year above the 4% cap may not be applied to subsequent years.

24.a
Packet Pg. 988 Attachment: SAMPLE PROP 218 NOTICE (5478 : Proposed solid waste fee increase prop 218) As a sample, the table below illustrates the maximum possible rates for residential cart service, including one each refuse, recycling, and organic waste cart, for a single-family home.

Sample single-family residential cart service
projected rate schedule
Projected
Service July 1, 2022
to June 30,
2023
July 1, 2023
to June 30,
2024
July 1, 2024
to June 30,
2025
July 1, 2025
to June 30,
2026
July 1, 2026
to June 30,
2027
Residential cart service $ 22.95 $23.87 $24.82 $25.82 $26.85 (1) Residential cart service includes one each refuse, recycling, and organic waste cart. Rate does not include the rate for used oil/filter collection of $0.06 per month per eligible home The table below illustrates the maximum possible rate for a commercial customer with a 3 cubic yard bin collected once per week.

Sample commercial bin service – 3 cubic yard collected
once per week maximum possible rate schedule
Projected
Service July 1, 2022
to June 30,
2023
July 1, 2023
to June 30,
2024
July 1, 2024
to June 30,
2025
July 1, 2025
to June 30,
2026
July 1, 2026
to June 30,
2027
3 Cubic Yard 1x Week $ 115.97 $120.61 $125.43 $130.45 $135.67 Rates beginning July 1, 2023 may be lower than those included in the samples above if the rate adjustment factors produce an adjustment factor lower than 4%.

The proposed Solid Waste Service Rates and their effective dates are set forth in Exhibit A of this Notice. A projection of maximum rates to be charged each year through June 30, 2027 can be found on the City website, [insert link].

The disclosure regarding the inflation adjustment does not mean such increases will or will not occur.

FOR ANY QUESTIONS, CALL OR EMAIL. Call (760) 352-6178 or email [email protected].

24.a
Packet Pg. 989 Attachment: SAMPLE PROP 218 NOTICE (5478 : Proposed solid waste fee increase prop 218)

EXHIBIT A
SOLID WASTE RATES (1)
Following are the rates effective July 1, 2022 through June 30, 2023:

Residential Service Rate
Cart Service – one each Refuse, Recycling, and Organics Waste Cart $22.95 per month Additional Refuse Cart $14.34 per month
Additional Recycling Cart at 50% of additional Refuse rate $7.17 per month Additional Organics Waste Cart at 50% of additional Refuse rate $7.17 per month Additional Special Overage Pickup for Automated Cart Customers $7.17 per month Additional Bulky Item pickups (in excess of three per year) $28.72 per month Used Oil/Filter Collection per Eligible Home $0.06 per month Apartment Houses, Courts and
Similar Dwellings Rate Trailer Courts and Mobile Home Parks Rate First Unit $22.95 per month First Unit $22.95 per month Units 2 – 15 $14.00 per month Units 2 – 5 $11.93 per month Units 16 – 30 $12.61 per month Units 6 – 10 $11.26 per month Units 31 – 50 $11.26 per month Units 11 – 20 $10.80 per month Units 51 – 75 $10.34 per month Units 21 – 30 $10.34 per month Units 31 – 50 $9.41 per month
Units 51 – 100 $8.95 per month
Refuse Bin and Commercial Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup
Size 1 2 3 4 5 6
96-gallon Cart $ 40.05 $ 67.67 $ 95.26 $ 122.90 $ 150.52 $ 178.11 $ 20.71 2 cubic yard $ 102.17 $ 185.02 $ 267.86 $ 350.71 $ 433.55 $ 516.42 $ 27.28 2 yard
compactor $ 167.81 $ 303.47 $ 439.30 $ 575.17 $ 711.04 $ 846.93 $ 44.74 3 cubic yard $ 115.97 $ 212.64 $ 309.29 $ 405.94 $ 502.59 $ 599.27 $ 30.99 4 cubic yard $ 129.79 $ 240.26 $ 350.71 $ 461.17 $ 571.62 $ 682.07 $ 36.25 4 yard
compactor $ 220.14 $ 420.93 $ 621.72 $ 822.53 $ 1,023.32 $ 1,224.11 $
135.50
5 cubic yard $ 243.02 $ 360.40 $ 484.64 $ 608.93 $ 733.20 $ 857.46 $ 42.07 6 cubic yard $ 288.60 $ 419.74 $ 557.84 $ 695.90 $ 833.97 $ 972.06 $ 48.39 (1) Not all rates identified above constitute “property-related fees” subject to the majority protest process under Proposition 218. The City has nonetheless provided a full schedule of all fees in furtherance of public transparency.

24.b
Packet Pg. 990 Attachment: Public Hearing Notice Exhibits A B C (5478 : Proposed solid waste fee increase prop 218) Commercial Foodwaste Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
35-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 60-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 2 cubic yard $ 161.81 $ 323.62 $ 485.45 $ 647.26 $ 809.07 $ 970.87 $ 83.74 Multi-Family Organics Waste Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
90-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 300-gallon $ 120.16 $ 240.31 $ 360.48 $ 480.64 $ 600.80 $ 720.94 $ 62.18 Commercial Recycling Cart Rates (37.5% of Refuse (2))
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
96-gallon $ 15.02 $ 25.38 $ 35.72 $ 46.09 $ 56.44 $ 66.79 $ 7.77 2 cubic yard $ 38.31 $ 69.38 $ 100.45 $ 131.52 $ 162.58 $ 193.66 $ 10.23 3 cubic yard $ 43.49 $ 79.74 $ 115.98 $ 152.23 $ 188.47 $ 224.72 $ 11.62 4 cubic yard $ 48.67 $ 90.10 $ 131.52 $ 172.94 $ 214.36 $ 255.78 $ 13.59 (2) Effective July 1, 2023, these rates will be increased to seventy-five percent (75%) of the corresponding refuse rates.

Service Category Rate per Service
Temporary Bin Services:
3 cubic yard Bin, per dump $ 69.02
4 cubic yard Bin, per dump $ 82.84
6 cubic yard Bin, per dump $ 124.27
Bin rental (when less than one dump each 14 day period) $ 41.43 Blocked pickup $ 48.34
Locking Bins – monthly service charge:
1x week $ 6.90
2x week $ 13.80
3x week $ 20.71
4x week $ 27.63
5x week $ 34.51
6x week $ 41.43
Other Residential Services:

Cart Redelivery Fee – Stop Service, per occurrence $ 26.75 Cart Replacement Fee – After 1 free per 12-month period (Customer Damaged or Stolen) $ 55.56

24.b
Packet Pg. 991 Attachment: Public Hearing Notice Exhibits A B C (5478 : Proposed solid waste fee increase prop 218) Other Commercial Services:

Commercial Bulky Item Pickup $ 27.63
Extra Bin Cleanings (beyond one free per year) $ 55.23
Bin Overflow Charge (after Customer has been notified of charge) $ 62.15 Contamination Charge, per occurrence $ 53.49
Commercial Setup Fee, per occurrence $ 26.75
Commercial CUB, Bin Delivery Fee, per occurrence $ 32.10 Commercial Cart Delivery Fee, per occurrence $ 26.75
Bin Redelivery Fee – Stop Service, per occurrence $ 32.10 Cart Replacement Fee – (Customer Damaged or Stolen) $ 55.56 Bulk Compost (per ton) $ 25.00
Roll-Off Box Service Charges (3) Rate
Standard Roll-Off Box – Rate per pull $ 253.72
Compactor Roll-Off Box – Rate per Pull (excluding rental) $ 338.80 COD Roll-off 10 or 40-yard (up to 10 tons) – C&D Processing $ 1,013.11 COD Roll-off 10 or 40-yard (up to 10 tons) – Landfill $ 895.43 Tonnage Charge, per ton (Refuse) $ 64.17
Tonnage Charge, per ton (Construction and Demolition Debris) $ 75.94 Recyclable Material Roll-Off Service 150% of Pull Rate
Overweight per Ton Charge (per ton beyond 10 tons/load) 150% of Gate Rate Roll-Off Box Rental Charge – per day for each day beyond 14 days $ 21.26 Dry Run – pickup of empty Roll-off Box $ 141.76
Blocked Pickup $ 70.87
Overweight compactor Transportation fee $ 556.49
Compactor Cleaning Service $ 363.76
*Including all fees retained by, or paid to, City.
(3) COD Roll-off Box Customers may be requested to pre-pay the Standard Roll-Off Box Pull Rate plus the per ton rate for up to ten (10) tons, with unused payment (the per ton payment for tons over actual tons collected) refunded within thirty (30) days of pull.

24.b
Packet Pg. 992 Attachment: Public Hearing Notice Exhibits A B C (5478 : Proposed solid waste fee increase prop 218)

EXHIBIT B
Cost Components for Single Family & Commercial Rate Adjustment Indices Cost Category Weighting
(1)
Rate Adjustment Factor
Labor 23% Employment Cost Index, ECU125421 not seasonally adjusted, Total compensation, Private industry, Index number, Electric, gas, and sanitary services (2)
Fuel 8% Producer Price Index, WPU057303 not seasonally adjusted, Fuels and related products and power, #2 diesel fuel (2)
Equipment 11% Producer Price Index, PCU3361203361201, Heavy duty truck mfg, Trucks, tractors, and bus chassis, 14,001 to 33,000 lbs (2) Insurance 3% Producer Price Index, PCU524---524---, Insurance carriers and related activities (2)
Disposal 32% Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index –U.S. city average
All Other 23% Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index - U.S. city average (2)
Total 100%
(1) Weightings may be adjusted annually based on the adjustment process described in the franchise agreement with CR&R
(2) The increase or decrease in the indices will be for the twelve (12) month period ending December prior to the rate year anniversary date.

24.b
Packet Pg. 993 Attachment: Public Hearing Notice Exhibits A B C (5478 : Proposed solid waste fee increase prop 218)

EXHIBIT C
Cost Components for Roll-off Box Rate Adjustment Indices Cost Category Weighting
(1)
Rate Adjustment Factor
Labor 44% Employment Cost Index, ECU125421 not seasonally adjusted, Total compensation, Private industry, Index number, Electric, gas, and sanitary services (2)
Fuel 8% Producer Price Index, WPU057303 not seasonally adjusted, Fuels and related products and power, #2 diesel fuel (2)
Equipment 10% Producer Price Index, PCU3361203361201, Heavy duty truck mfg, Trucks, tractors, and bus chassis, 14,001 to 33,000 lbs (2) Insurance 3% Producer Price Index, PCU524---524---, Insurance carriers and related activities (2)
All Other 35% Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index - U.S. city average (2)
Total 100%
(1) Weightings may be adjusted annually based on the adjustment process described in the franchise agreement with CR&R
(2) The increase or decrease in the indices will be for the twelve (12) month period ending December prior to the rate year anniversary date.

24.b
Packet Pg. 994 Attachment: Public Hearing Notice Exhibits A B C (5478 : Proposed solid waste fee increase prop 218) City Council of the City of El Centro Meeting: 04/05/22 11:30 AM 1275 Main Street Department: Community Services
El Centro, CA 92243 Category: Grant
Prepared By: Adriana Nava
SCHEDULED Department Head: Adriana Nava
ACTION ITEM (ID # 4190) DOC ID: 4190
Economic Development Administration (EDA) COVID-19
Revolving Loan Fund Guidelines Waiver for Home 2 Suites CITY MANAGER’S RECOMMENDATION:

Approve a one-time waiver of the EDA COVID-19 Revolving Loan Fund maximum loan of $100,000 to facilitate the loan of $250,000 to Home2Suites FISCAL IMPACT:

This agenda item pertains to Revolving Loan Funds (RLF) grant received from the Economic Development Administration to alleviate the economic dislocation caused by the coronavirus (COVID-19). This action will facilitate the lending of $250,000 of RLF funds and creates no impact on the General Fund.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:
• Goal 6: Economic Opportunity
o Action 6.7: Cultivate a business climate that welcomes innovation, entrepreneurship, and investment.
o Action 6.9: Facilitate development and investment in the community fostering strong relationships between the City and business Community. o Action 6.11: Ensure a business-friendly environment that helps retain and recruit quality merchants.

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

Not applicable.

BACKGROUND:

The City of El Centro was awarded a supplemental grant in the amount of $550,000 on July 23, 2020 from the Department of Commerce’s Economic Development Administration (EDA). The supplemental grant was awarded to alleviate sudden and severe economic dislocation caused by the coronavirus (COVID-19) pandemic, to provide permanent resources to support economic resiliency, and to further the longterm economic adjustment objectives of the City of El Centro and Imperial County. On September 15, 2020, the City Council adopted Revolving Loan Fund Supplemental Guidelines. Due to changes in the lending environment and the fluid nature associated with the pandemic, changes to the Revolving Loan Guidelines were warranted in order to meet the objectives of the EDA grant.

Recognizing the local economic challenges caused by the COVID-19 pandemic and immediate needs of businesses, the grant application submitted to EDA included 25 Packet Pg. 995
Action Item (ID # 4190) Meeting of April 5, 2022
provisions to supplement the City’s existing EDA Revolving Loan Fund Plan, adopted in November 2019. On January 5, 2021, staff presented an addendum to the existing Commercial and Industrial Revolving Loan Fund Strategy to allow for an expedited use of the funding in efforts to mitigate the impacts of the coronavirus on the El Centro and Imperial County economy. Council approved an amendment to the guidelines increasing the maximum loan amount to $100,000.

DISCUSSION:

Due to other COVID funding opportunities, staff continues to fight the challenge of finding clients for the RLF program, which requires full repayment of the loan. To date, the City has been able to issue two loans totaling $130,000, leaving an available funding balance of $370,000. The COVID RLF funding has a benchmark date of April 1, 2022, wherein the City must have 75% of the funding drawn down or committed. If this has not been accomplished, the EDA will complete a grant reduction of up to 75% of the total award, thus, the City is at risk of losing the balance of the grant funding.

Two additional loan applications have been received and have been presented to the Loan Review Committee (LRC) for their funding recommendation. The first is a loan of $100,000 for a local restaurant. The project was processed by the underwriter and presented to the LRC, who has requested additional information from the client. Once this information is received, the loan will be returned to the LRC for further review.

The second loan application is for Home2Suites Hotel that is currently under construction in the vicinity of the IV Mall. The loan request is in the amount of $250,000 to assist with the purchasing of furniture, fixture, and equipment. On March 3, 2022, the LRC reviewed the project and recommended funding approval. However, because the loan request exceeds the loan maximum ($100,000), it is necessary the project be brought before City Council for a one-time waiver of the loan maximum to facilitate the loan being presented to the City Manager for approval.

This one-time waiver request is being presented for Council approval in an attempt to address two issues. The first is to facilitate the loan of the COVID RLF funding in an amount that will surpass the benchmark loan amount required by EDA, thus preventing the loss of funding. The second is to assist the Home2Suites project, which has experienced delays and subsequent cost increases due to the pandemic. Staff realized the positive impact the job creation of the project would have on the local community and encouraged the project proponents to apply for RLF funding. Information presented by the applicant indicates a proposed creation of 26 full-time jobs.

Staff has been in contact with EDA representatives to keep them apprised of the two pending applications. Although the funding has not yet been committed, the steps being taken toward the waiver and loans are sufficient to prevent them from disencumbering funding pending the outcome of these two loans.

CONCLUSION:
25 Packet Pg. 996
Action Item (ID # 4190) Meeting of April 5, 2022
Staff recommends the approval of a one-time waiver of the loan maximum for the COVID Revolving Loan Fund to facilitate the lending of $250,000 to the Home2Suites Project. If the waiver is approved, the loan application and recommendation for approval by the LRC will be forwarded to the City Manager for her review. 25 Packet Pg. 997
City Council of the City of El Centro Meeting: 04/05/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Informational
Prepared By: Aimee Osuna
SCHEDULED Department Head: Norma Wyles
INFORMATION ITEM (ID # 5470) DOC ID: 5470
Received and filed notification of Southern California Gas Company's request for rate increase Application A.22-03-008 Received and filed notification of Southern California Gas Company's request for rate increase Application A.22-03-008
ATTACHMENTS:
• So Cal Gas Rate Increase Notice (PDF)
26 Packet Pg. 998

26.a
Packet Pg. 999 Attachment: So Cal Gas Rate Increase Notice (5470 : Southern California Gas Company Rate Increase Notice)

26.a
Packet Pg. 1000 Attachment: So Cal Gas Rate Increase Notice (5470 : Southern California Gas Company Rate Increase Notice)