January 2026 10 City/WM Amendment
5. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident.
C. Deductibles and Self -Insured Retentions. If, in the reasonable opinion of City, Contractor does not have sufficient financial resources to protect City from exposure with respect to any deductibles or self-insured retentions, at the option of City. Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.
D. Other Insurance Provisions . The policies are to contain, or be endorsed to contain, the following provisions:
1. General Liability Environmental Liability and Automobile Liability Coverages
a) City, its elective and appointive boards, commissions, officials, employees, agents and volunteers are to be named as additional insureds as respects: liability arising out of activities performed by or on behalf of Contractor; Premises owned, leased or u sed by Contractor; or vehicles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, its elective and appointive boards, commissions, officials, employees, agents or volunteers. b) Contractor's insurance coverage shall be primary insurance as respects City, its elective and appointive boards, commissions, officials, employees, agents and volunteers. Any insurance or self - insurance maintained by City, its officials, elective and appointive boards, commissions, employees, agents or volunteers shall be excess of Contractor's insurance and shall not contribute with it. c) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, elective and appointive boards, commissions, employees, agents or volunteers. d) Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
2. Workers' Compensation and Employers Liability Coverage - The insurer shall agree to waive all rights of subrogation against City, its officials, elective and appointive boards, commissions, employees, agents and volunteers for losses arising from work performed by Contractor for City.
3. All Coverages - Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days' prior written notice has been given to City.
E. Scope of Coverage. All of the above policies of insurance shall be primary insurance and shall name the City, its electives and appointive boards, commissioners, officials, officers, employees, and agents as additional insureds.
The insurer shall waive all rights of subrogation and contribution it may have against the City, its electives and appointive boards, commissioners, officials, officers, employees, agents, and their respective insurers. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 9.4 to the City.
January 2026 11 City/WM Amendment
F. Acceptability of Insurers. The insurance policies required by this section shall be issued by an insurance company or companies authorized to do business in the State of California and with a rating in the most recent edition of Best's Insurance Reports of size category XIII or larger and a rating classification of A or better.
G. Verification of Coverage. Simultaneously with the execution of this Agreement, Contractor shall furnish City with certificates of insurance evidencing the coverage required herein, in form and substance satisfactory to City. The certificates for each insurance policy are to be signed by a Person authorized by that insurer to bind coverage on its behalf. No work under this Agreement shall commence until Contractor has provided City with the Certificate(s) of Insurance evidencing the required insurance coverage and said Certificate(s) of Insurance are approved by the City, which appraisal shall not be unreasonably withheld.
Such certificates shall show the type and amount of coverage, effective dates and dates of expiration of policies and shall have all required endorsements.
H. Companies and Subcontractors. Contractor shall include all Companies and Subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each Contractor and Subcontractor. All coverages for Companies and Subcontractors shall be subject to all of the requirements stated herein.
I. Required Cancellation Notices:
1. The certificate of insurance for the Workers' Compensation policy shall contain an endorsement in substantially the following form:
"Thirty (30) days prior written notice shall be given to City in the event of cancellation, of this policy. Such notice shall be sent to:
City Manager (or designated representative)
City of Gardena
1700 West 162
nd Street
Gardena, CA 90247
2. The certificate of insurance for the Public Liability policy shall contain endorsements in substantially the following form:
a) "Thirty (30) days prior written notice shall be given to City in the event of cancellation, of this policy. Such notice shall be sent to:
City Manager (or designated representative)
City of Gardena
1700 West 162
nd Street
Gardena, CA 90247
b) "City, its officers, elective and appointive boards, commissions, employees, and agents are additional insureds on this policy." c) "This policy shall be considered primary insurance as respects any other valid and collectible insurance maintained by City, including any self -insured retention or program of self -insurance, and any other such insurance shall be considered excess insurance only." d) "Inclusion of City as an insured shall not affect City's rights as respects any claim, demand, suit or judgment brought or recovered against Contractor. This policy shall protect Contractor and City in the same manner as though a separate policy had been issued to each, but this shall not operate to increase Contractor's lia bility as January 2026 12 City/WM Amendment
set forth in the policy beyond the amount shown or to which Contractor would have been liable if only one party had been named as an insured."
Renewal certificates will be furnished periodically to City to demonstrate maintenance of the required coverage throughout the Term.
J. Other Insurance Requirements
1. In the event any services are delegated to a Contractor or Subcontractor, Contractor shall require such Contractor or Subcontractor to provide statutory workers' compensation insurance and employer's liability insurance for all of the Contractor or Subcon tractor's employees engaged in the work in accordance with this Section 9.4. The liability insurance required by this Section 9.4 shall cover all Contractor or Subcontractors or the Contractor or Subcontractor must furnish evidence of insurance provided by it meeting all of the requirements of this Section 9.4.
2. Contractor shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve Contractor from any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self -insured reserves is made by any third Person against Contractor or any Contractor or Subcontractor on account of any occur - rence related to this Agreement, Contractor shall promptly report the facts in writing to the insurance carrier and to City.
If Contractor fails to procure and maintain any insurance required by this Agreement, City may take out and maintain, at Contractor's expense, such insurance as it may deem proper and deduct the cost thereof from any moneys due Contractor.”
12.21 Guarantee of Contractor’s Performance
O. Article 12, Section 12.21 of the Agreement is hereby amended to read as follows:
“Pursuant to a guarantee in substantially the form attached as Exhibit 3, Waste Management, Inc., a corporation which owns all of the issued and outstanding common stock of Contractor, has agreed to guarantee Contractor's performance of this Agreement. The Guarantee is being provided concurrently with Contractor's execution of this Agreement.”
Conditions of the Consent and First Amendment
A. As among WR T and WM and their respective affiliates, including the Purchaser, the other Seller Parties and the Significant Stockholders (each of Purchaser, Seller Parties and Significant Stockholders as defined in the Asset Purchase Agreement), nothing in this Consent and Amendment shall be deemed to limit, amend, modify, or restrict any terms of the (i) Asset Purchase Agreement, (ii) the Significant Stockholder Agreements or (iii) any other Ancillary Agreement, as each of (ii) and (iii) are defined in the Asset Purchase Agreement, including, without limitation, any indemnification or guarantee obligations (with respect to Retained Liabilities or otherwise) thereunder.
January 2026 13 City/WM Amendment
B. The effective date of this Consent and First Amendment to the Franchise Agreement shall be the later of (i) the date on which the City Council Approves this Consent and First Amendment, and (ii) the date of the satisfaction of the following conditions:
1. The Transaction shall have closed pursuant to the terms and conditions of the Transaction, as may be amended, and WRG and WM shall have executed and delivered to City an assignment agreement or other reasonably acceptable documentation to the City Attor ney, documenting the assignment of the Franchise Agreement by WRG to WM;
2. WM shall have executed and delivered to City this Consent and Amendment;
3. WM shall have delivered to City the executed Corporate Guaranty, substantially in the form attached to the Consent and Amendment as Exhibit __;
4 WM shall have delivered to City the executed and acknowledged performance bond in compliance with Section 9.5 of the Original Franchise Agreement, substantially in the form attached to the Consent and Amendment as Exhibit __;
5. WM shall have delivered to City the executed and acknowledged letter of credit in compliance with Section 9.6 of the Original Franchise Agreement, substantially in the form attached to the Consent and Amendment as Exhibit __;
6. WM shall have delivered to City evidence satisfactory to City’s risk manager of the insurance required by Section 9.4 of the Original Franchise Agreement.
7. WRG shall have paid to City the transfer fee estimated by the Contractor to be $1,309,685.22 as of September 30, 2025 as required by Section 12.5.b of the Original Franchise Agreement at least two (2) days before the closing of the transfer.
8. WRG shall have paid the City its expenses for attorney's fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation estimated to be $60,000 as required by Section 12.5.a of the Original Franchise Agreement at least two (2) days before the closing of the transfer.
9. WRG shall have paid to the City the total amount of accrued Liquidated Damages for WRG failing to meet the 27% Diversion goal for the period of January 1, 2025 through the date on which the Transaction closes estimated to be $130,543.15 as of September 30, 2025 at least two (2) days before the closing of the transfer.
List of Exhibits:
Exhibit 2A Example Rate Adjustment Formula (Replaces existing Exhibit 2A) Exhibit 2B Example Calculation for Average Annual Change in Published Indices (Replaces existing Exhibit 2B)
January 2026 14 City/WM Amendment
Exhibit 6 Processing, Transfer, and Disposal Services and Facility Standards (Replaces existing Exhibit 6)
Exhibit 10 Contractor’s Bin Transition Plan (Added as a new exhibit) Exhibit 11 Contractor’s Contingency Plan (Added as a new exhibit)
Additional Provisions of this Consent and
Amendment
A. Continuing Effect of Agreement. Except as amended by this Consent and Amendment, including the Exhibits attached hereto, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Consent and Amendment. From and after the date of this Consent and Amendment, whenever the term “Agreement” appears in the Agreement, in shall mean the Agreement as amended by this Consent and Amendment.
B. Severability. If any portion of this Consent and Amendment is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
C. Integration. This Consent and Amendment represents the entirety of the Parties’ understanding relating to the subject of this Consent and Amendment, including written or verbal communications between the Parties, which shall have no relevance unless expressly incorporated herein. This is an integrated amendment.
IN WITNESS WHEREOF, the Parties have executed this Consent and Amendment as of the day and year first above written.
City of Gardena
Waste Resources of Gardena (“WRG”)
By: _______________________ By: _______________________________ Mayor, Tasha Cerda Paul A. Wolfe, President
Date: _______________ Date: __________________
By: _______________________________
Khoren Shaginian, CFO
Date: __________________
January 2026 15 City/WM Amendment
USA Waste of California, Inc. (“WM”)
By: _______________________________
Michael Hammer, President – Southern California Area
Date: __________________
By: _______________________________
Vladimir Beytelman, Vice President and Assistant Secretary Date: __________________
WASTE RESOURCES TECHNOLOGIES, INC. ("WRT")
By: _______________________________
Paul A. Wolfe, President
Date: __________________
By: _______________________________
Khoren Shaginian, CFO
Date: __________________
January 2026 16 City/WM Amendment
EXHIBIT 2A
EXAMPLE RATE ADJUSTMENT FORMULA
O. Exhibit 2A of the Agreement is hereby replaced in its entirety with the following:
A B C
Row Index Old Index Value New Index Value Percent Change In Index ((Column B/Column A) -1)
1 CPI, Garbage and Trash Collection (1) 500.5 524.0 4.70% D E F
Row Adjustment Factor Old Index Value New Index Value Percent Change In Index ((Column E/Column D) -1)
2 CPI, Garbage and Trash Collection (1) 500.5 524.0 4.70% 3 CPI, Los Angeles-Long Beach-Anaheim (2) 281.9 290.4 3.02% 4 Difference 1.68%
5 CPI Cap equals Row 3 plus 2% 5.02%
6 Final Percent Change in Index (3) 4.70%
Step Three: Apply Percentage Change to Rates
G H I J
Row Rate Category
Current Customer Rate
Not Including City Fees
(4)
Percentage Change in
Index (From Column F,
Row 6)
Rate Increase or Decrease
(Column G x Column H)
Adjusted Rate
(Column G + Column I)
7 Residential Cart Service 23.51$ 4.70% 1.10$ 24.61$ 8 Residential Extra Trash Cart Fee 7.85$ 4.70% 0.37$ 8.22$ 9 Additional Bulky Item Fee- curbside 15.70$ 4.70% 0.74$ 16.44$ 10 Multi-family - 2 Units 47.02$ 4.70% 2.21$ 49.23$ 11 Multi-family - 3 Units 70.53$ 4.70% 3.31$ 73.84$ 12 Multi-family - 4 Units 94.04$ 4.70% 4.42$ 98.46$ Exhibit 2A
EXAMPLE RATE ADJUSTMENT FORMULA
(1) Consumer Price Index Consumer Price Index (CUUR0000SEHG02) for All Urban Consumers, garbage and trash collection - U.S. city average, not seasonally adjusted, as published by the United States Department of Labor, Bureau of Labor Statistics. Average annual change for the 12 months ending January prior to the Rate Year anniversary date compared to the 12 months ending January in the previous year.(4) Example rates listed. Adjustment applies to all rates. (2) Consumer Price Index (CUURS49ASA0LE) for All Urban Consumers, All ltems Less Energy (CPI-U) for the Los Angeles-Long Beach-Anaheim, CA, All Urban Consumers, Not Seasonally Adjusted. Average annual change for the 12 months ending January prior to the Rate Year anniversary date compared to the 12 months ending January in the previous year.
(3) Row 1 or 5, whichever is lower.
Step Two: Verify that percentage change in Row 1 Column C does not exceed an amount greater than 2% more than the percentage increase in CUURS49ASA0LE in Row 3
Step One: Calculate Percentage Change in Indices
January 2026 17 City/WM Amendment
EXHIBIT 2B
EXAMPLE CALCULATION FOR
AVERAGE ANNUAL CHANGE IN PUBLISHED INDICES
P. Exhibit 2B of the Agreement is hereby replaced in its entirety with the following:
Consumer Price Index
The rate adjustment index is calculated using the average annual change in the Consumer Price Index for All Urban Consumers for Garbage and Trash Collection (CUUR0000SEHG02) - U.S. City average published by the Bureau of Labor Statistics, measured for the 12 months ending January prior to the Contract Year anniversary date compared to the 12 months ending January in the previous year.
For example, if a rate adjustment based on this CPI index were to be implemented as of July 1, 2022, the average annual index value for the 12 months that began February 2021 and ended January 2022 of 524.0 would have been the “New Index Value” to be used in Column B of the example rate adjustment formula in Exhibit 2A, and the average annual index value for the 12 months that began February 2020 and ended January 2021 of 500.5 would have been the “Old Index Value” in Column A. This would have resulted in a 4.70% increase to the rates as calculated in Column C of Exhibit 2A.
Additionally, Section 6.4.1 restricts the amount of any annual increase to not exceed an amount greater than two percent (2.0%) more than the percentage increase in the Consumer Price Index-All Items Less Energy for the Los Angeles -Long Beach-Anaheim, CA, All Urban Consumers, Not Seasonally Adjusted (CUURS49ASA0LE) published by the Bureau of Labor Statistics, for the corresponding one-year period used to measure the change in the Consumer Price Index for All Urban Consumers for Garbage and Trash Collection (CUUR0000SEHG02) - U.S. City average. For example, to verify that the change in the Consumer Price Index for All Urban Consumers for Garbage and Trash Collection (CUUR0000SEHG02) - U.S. City average Series
Id:
Series
Title:
Area:
Item:
Bas e
Period:
Years :
Year Jan Feb Mar Apr May Jun Jul Au g Sep Oct Nov Dec
2012 398.880 400.381 401.692 400.913 401.067 402.793 406.243 406. 823 407.594 409.495 410.155 410.416 2013 411.126 411.805 412.305 413.675 414.511 414.802 416.505 417.760 418.357 419.687 421.427 422.237 2014 422.440 422.483 423.413 425.393 425.242 425.930 426.562 426.771 427.327 427.995 427.808 428.187 2015 427.734 429.248 429.235 429.807 431.234 430.813 431.229 432.967 433.843 434.829 436.428 436.996 2016 437.205 438.296 437.699 437.676 438.317 437.858 438.607 439.358 439.707 440.311 443.343 444.745 2017 446.266 447.699 446.987 447.129 447.272 448.046 448.328 448.717 449.008 452.196 453.820 453.596 2018 453.354 454.915 455.230 458.722 462.887 465.041 465.579 470.457 471.026 472.535 486.650 485.935 2019 475.687 477.474 478.569 479.449 480.865 480.984 482.138 483.987 484.346 486.133 486.485 486.708 2020 491.003 494.429 495.288 494.432 494.946 496.679 498.564 500.882 501.756 503.315 504.970 508.190 2021 512.722 517.270 518.505 518.579 516.440 517.202 521.185 524.408 529.934 530.114 529.053 532.538 Old index value 500.5 2022 533.078 New index value 524.0
U.S. city average
Garbage and trash collection
DECEMBER 1983=100
2012 to 2023
CPI for All Urban Consumers (CPI-U)
Original Data Value
CUUR0000SEHG02
Not Seasonally Adjusted
Garbage and trash collection in U.S. city average, all
urban consumers, not seasonally adjusted
January 2026 18 City/WM Amendment
does not exceed the change in the Consumer Price Index -All Items Less Energy for the Los Angeles-Long Beach -Anaheim, CA, All Urban Consumers, Not Seasonally Adjusted (CUURS49ASA0LE), the average annual index value for the 12 months that began February 2021 and ended January 2022 of 290.4 would have been the “New Index Value” to be used in Line 3 Column E of the example rate adjustment formula in Exhibit 2A, and the average annual index value for the 12 months that began February 2020 and ended January 2021 of 281.9 would have been the “Old Index Value” in Line 3 Column D. The difference between the calculated change in the Consumer Price Index for All Urban Consumers for Garbage and Trash Collection (CUUR0000SEHG02) - U.S. City average and the Consumer Price Index -All Items Less Energy for the Los Angeles -Long Beach-Anaheim, CA, All Urban Consumers, Not Seasonally Adjusted (CUURS49ASA0LE) is calculated in Line 4 Column F of Exhibit 2A.
Consumer Price Index for All Urban Consumers (CPI-U)
Series Id:
Series
Title:
Area:
Item:
Base
Period:
Years:
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 232.233 232.576 233.702 234.245 234.069 234.321 234.840 235.330 235.973 236.488 236.136 235.155 2013 236.600 236.585 237.005 236.890 236.912 236.890 236.499 237.405 237.723 238.753 237.984 237.833 2014 238.987 239.724 240.297 240.626 240.630 240.785 241.343 242.010 242.454 242.845 242.528 242.302 2015 242.822 243.487 244.373 244.636 244.912 245.324 245.738 246.085 246.813 247.878 248.417 248.104 2016 249.720 251.168 251.274 251.429 252.518 252.509 252.506 253.052 253.185 253.742 253.013 253.302 2017 255.488 256.658 257.164 257.596 258.090 258.085 259.220 259.705 260.370 261.559 261.468 261.896 2018 263.457 264.830 265.909 266.600 266.971 266.441 266.950 267.425 269.273 270.021 269.851 269.401 2019 271.869 271.996 273.189 274.505 274.798 275.518 275.897 276.331 277.256 278.028 278.051 277.171 2020 279.587 280.711 279.462 280.000 280.859 281.664 283.124 283.128 282.244 282.775 283.257 282.559 2021 282.653 282.868 283.317 286.335 287.403 288.809 290.195 290.490 291.365 293.463 294.979 296.222 Old index value281.9 2022 299.135 New index value290.4
Original Data Value
1982-84=100
2012 to 2022
CUURS49ASA0LE
Not Seasonally Adjusted
All items less energy in Los Angeles-Long Beach-
Anaheim, CA, all urban consumers, not seasonally
Los Angeles-Long Beach-Anaheim, CA
All items less energy
January 2026 19 City/WM Amendment
EXHIBIT 6 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Q. Exhibit 6, Section 6.1.A of the Agreement is hereby replaced in its entirety with the following:
“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.
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
Carson Transfer Station & MRF
19-AQ-0001
321 West Francisco Street
Carson, CA 90745
Azusa Transfer and MRF
19-AA-1127
1501 W. Gladstone
Azusa, CA 91701
Materials Recovery Facility
Sun Valley Recycling Park
(Bradley East Processing/Transfer Station)
19-AR-1237
Sun Valley (in Los Angeles)
CA 91352
Waste Management of Orange
30-AB-0363
2050 Glassell Street
Orange, CA 92865
Source Separated
Organic Waste
Carson Transfer Station & MRF
19-AQ-0001
321 West Francisco Street
Carson, CA 90745
RWP Recycled Wood Products Ontario 2
36-AA-0477
1200 W. City Ranch Road
Palmdale, CA 93551
Composting
Azusa Transfer and MRF
19-AA-1127
1501 W. Gladstone
Azusa, CA 91701
South Valley Compost Site
54-AA-0026
24487 Road 140
Tulare, CA 93274
January 2026 20 City/WM Amendment
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.)
Food Waste Mission Road Recycling & Transfer
Station (WRT)
19-AR-1183
840 South Mission Rd
Los Angeles (City), CA 90023
Sun Valley Recycling Park
(Bradley East Processing/Transfer Station)
19-AR-1237
Sun Valley (in Los Angeles)
CA 91352
OREX and/or Composting
Carson Transfer Station & MRF
19-AQ-0001
321 West Francisco Street
Carson, CA 90745
South Valley Compost Site
54-AA-0026
24487 Road 140
Tulare, CA 93274
Azusa Transfer and MRF
19-AA-1127
1501 W. Gladstone
Azusa, CA 91701
RWP Recycled Wood Products Ontario 2
36-AA-0477
1200 W. City Ranch Road
Palmdale, CA 93551
Gray/Black Container
Waste
Carson Transfer Station & MRF
19-AQ-0001
321 West Francisco Street
Carson, CA 90745
Antelope Valley Public Landfill
19-AA-5624
1200 W. City Ranch Road
Palmdale, CA 93551
Landfill
Simi Valley Landfill & Recycling Center
56-AA-0007
2801 Madera Road
Simi Valley, CA 93065
El Sobrante Landfill
33-AA-0217
10910 Dawson Canyon Road
Corona, CA 91719
Grand Central Recycling & Transfer Station
19-AA-1042
999 Hatcher Ave
Industry, CA 91748
High Diversion Organic
Waste Processing Facility
C&D Carson Transfer Station & MRF
19-AQ-0001
321 West Francisco Street
Carson, CA 90745
Simi Valley Landfill & Recycling Center
56-AA-0007
2801 Madera Road
Simi Valley, CA 93065
C&D Materials Recovery
Facility
January 2026 21 City/WM Amendment
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.)
Looney Bins/East Valley Diversion
19-AR-1223
11616 Sheldon St.
Sun Valley (Los Angeles), CA 91352
”
January 2026 22 City/WM Amendment
EXHIBIT 10
CONTRACTOR’S BIN TRANSITION PLAN
(NEW)
EXHIBIT 10
BIN TRANSITION PLAN
In executing this acquisition and transition for servicing the City of Gardena (City), WM intends to acquire WRG’s inventory of collection containers used in the performance of the scope of services of the existing Franchise Agreement (Agreement). By utili zing the same equipment, WM can minimize any potential customer service impacts and the opportunity for service disruption during the transition.
Before the franchise assignment and acquisition are finalized, WRG will complete an audit of metal collection containers (bins) deployed throughout the City to ensure they meet the standards outlined in the Agreement. This assessment includes evaluating bin condition, paint, graffiti, structural integrity, and cleanliness. Bins not meeting standards will require attention through refurbishment or replacement which will be completed before the close of the acquisition transaction.
Once the franchise assignment and acquisition are completed, WM will continue the assessment of the bins deployed in the City using a mutually agreed- upon guideline of acceptable and non-acceptable bin conditions to ensure conformance with applicable laws and regulations (including SB 806), WM’s stringent safety and performance standards, and the standards set forth in the Agreement. WM will prioritize bins that are in high visibility areas, in line with the City’s goal for beautification of streets and par kways as well as eliminating graffiti.
Within twelve (12) months of the effective date of the assignment, all bins will be relabeled and bins that are mutually considered to be in non -acceptable condition will be refurbished and/or replaced, as necessary.
For the remaining existing inventory, bins will be used in accordance with the Agreement as was intended through WM’s acquisition of WRG’s inventory. Once this inventory is depleted, future deliveries and swaps will be made with SB-1383 compliant bins with required labeling.
This gradual transition process helps to minimize any potential service disruptions and reduce unnecessary container scrap.
For your reference, the following pages provide an example of the current and post-transition bin container labeling, examples of the potential future bin color scheme, and a sample timeline of bin-related transition activities.
January 2026 23 City/WM Amendment
Example of Current and Post-Transition Bin Container Labeling
Current
Post-Transition
Future Bin Container Color Scheme
Organic Waste Recyclables Refuse
Green Lid Blue Lid Black Lid
Green Body Green Body Green Body
January 2026 24 City/WM Amendment
Sample Timeline of Bin Transition Activities*
Task Activity Team Description Number of
Containers
Planned
Start
(Month)
Planned
Duration
(Months)
OCT
25 NOV
25 DEC
25 JAN
26 FEB
26 MAR
26 APR
26 MAY
26 1
WRG Audit
Swaps
WRG Identification and swaps of
bins out of conformance
with the Agreement
~300 Oct-25 Ongoing
thru close of
acquisition
2 WM Labels WM Replace WRG logo with WM
logo decals on existing bins
~2100 Feb-26 12
3 Out of
Conformance
Swaps
WM Swap bins mutually agreed
to be out of conformance
with the Agreement, WM
safety standards, or other
potentially applicable
regulations, such as SB 806
Dependent
upon mutually
agreed non-
conformance
Feb-26 12
4 Ongoing
Container
Swaps
WM All other bins not identified
in above tasks will be
replaced as needed through
service level changes, safety
related concerns, and at end
of life
TBD Feb-26 Ongoing
*Subject to assignment approval and results of assessment January 2026 25 City/WM Amendment
EXHIBIT 11
CONTRACTOR’S CONTINGENCY PLAN
(NEW)
January 2026 26 City/WM Amendment
City of Gardena
Gardena City Council
Meeting
AGENDA REPORT
SUMMARY
Agenda Item No. 20A.
Section: COUNCIL ITEMS
Meeting Date: January 13,
2026
TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE: Discuss and Consider the City Council Policy Guidelines for Proclamations, Certificates, Commendations, and Congratulatory Letters
COUNCIL ACTION REQUIRED:
Staff Recommendation: Discuss and Consider adoption of the City Council Policy Guidelines for Proclamations, Certificates, Commendations, and Congratulatory letters.
RECOMMENDATION AND STAFF SUMMARY:
During the December 09, 2025, City Council meeting, a directive was given to staff by Councilmember Wanda Love and seconded by Councilmember Paulette C. Francis to develop a policy establishing guidelines for all types of certificate requests.
Staff researched various city's policies and/or procedures on this matter.
Council Policy 2026-01 establishes a policy that details the definition and eligibility criteria for Proclamations, Certificates, Commendations, and Congratulatory Letters. This Council Policy establishes guidelines to ensure requests for any type of certificate are handled in a fair and consistent manner.
Attached for City Council consideration is the City Council policy guidelines for proclamations, certificates, commendations, and congratulatory letters.
FISCAL IMPACT/COST:
N/A
APPROVED:
___________________________
Clint Osorio, City Manager
Attachments
City Council_Policy - Recognition Procedures.pdf
COUNCIL POLICY
SUBJECT: CITY COUNCIL GUIDELINES FOR
PROCLAMATIONS, CERTIFICATES, COMMENDATIONS, AND
CONGRATULATORY LETTERS
1.0 POLICY STATEMENT
The purpose of this Council Policy is to establish guidelines for the issuing of Proclamations, Certificates, Commendations, and Congratulatory Letters. The City Council would like to establish a policy for these items of recognition to ensure they are handled in a fair and consistent manner.
2.0 TYPES OF RECOGNITION
a. Proclamations: Proclamations recognize a special period of observance (days, weeks, months), public celebrations, recognitions of a community, regional, state, or national occasion, or to recommend community actions. The main purpose of a proclamation is to give special recognition to issues, actions, and/or programs of significance to the City of Gardena residents and community. Proclamations are ceremonial and do not carry any legislative or legal value. Examples for the issuance of a Proclamation include:
• City Clerk’s Week
• Black History Month
There are recurring Proclamations that are agendized during regular City Council meetings to be “Proclaimed Only” throughout the year.
Document: Policy Statement Revision:
Subject: City Council Guidelines for Proclamations,
Certificates, Commendations, and Congratulatory
Letters
Effective Date:
Author: Clint D. Osorio, City Manager Reference No. 2026-01 Authorized by: Tasha Cerda, Mayor
___________________________________________
COUNCIL POLICY
SUBJECT: CITY COUNCIL GUIDELINES FOR
PROCLAMATIONS, CERTIFICATES, COMMENDATIONS, AND
CONGRATULATORY LETTERS
b. Certificates: There are a few different types of certificates : Certificates of Recognition, Congratulations, and Sympathy . Certificates of Recognition or Congratulations may be issued to individuals, groups, organizations, or businesses with a connection to the City of Gardena for individual or group accomplishments, exceptional contributions to the City of Gardena, milestones, or commemorative events or occasions, retirements, and birthdays. Examples for the issuance of Certificates of Recognition and Congratulations include:
• Grand-Opening and /or milestone anniversaries for local businesses and/or groups/organizations in Gardena
• Local school or business retirements
• Achievements associated with local schools or organizations • Special recognition for citizens, military members, or first responders at local ceremonial events
• Milestone Birthdays
• Recognition of Non -Profit Organization's outstanding c ontributions to the community of Gardena in partnership with the City of Gardena
Certificates of Sympath y are to honor a deceased individual , and they are provided t o honor long-time City of Gardena residents, immediate family members of employees, former employees, or an individual who has made an impact to the community of Gardena. To receive a Certificate of Sympathy, the name of the individual will be included at the next Regular City Council Meeting under Remembrances.
c. Commendations: Commendations are issued during Regular City Council Meetings to individuals, groups, organizations, or businesses with a connection to the City of Gardena for their distinguished acts of service, heroism, or major achievements. What is provided is a Certificate of Commendation.
d. Congratulatory Letters on City Letterhead: Congratulatory Letters are issued to individuals, groups, organizations, or businesses with a connection to the City of Gardena who would like to have a congratulatory letter for personal recognition or to be published in their event program.
3.0 RECURRING RECOGNITIONS
There are certain recognitions that are processed administratively on an annual or as-required basis. Below are a few examples:
COUNCIL POLICY
SUBJECT: CITY COUNCIL GUIDELINES FOR
PROCLAMATIONS, CERTIFICATES, COMMENDATIONS, AND
CONGRATULATORY LETTERS
• City Employee Retirements
• Outgoing Commissioners/Board Members
• Outgoing Elected City Officials
• Participants who have completed a City of Gardena program • Gardena Police Department Explorer Competitions
4.0 ELIGIBILITY CRITERIA
Requests for Proclamations, Certificates, and Commendations, can be made for the following subjects:
a. Significant Matters of Interest: To raise public awareness about matters of significance that impact the residents and/or businesses of the City of Gardena.
b. Observance/Celebrations: To highlight a special period of observance, celebration, or recognition for community, state, regional or national occasions.
c. Local Businesses or Organizations : To honor businesses or organizations that are located or operate in the City of Gardena for their milestone celebrations/anniversaries or grand openings . And to also recognize outstanding contributions to the City from local organizations in partnership with the City of Gardena.
d. Individuals: Recognition of individuals for extraordinary achievement/heroism and/or outstanding community service to the City of Gardena. To also celebrate milestone birthdays of individuals and retirements of individuals from local schools and/or businesses. e. Local School Teams and Youth Organizations : Recognition of local school teams and/or youth organizations for noteworthy achievements in competitions, accomplishments, or milestones.
f. Partner/Public Officials: To honor public officials from other public entities who serve on boards/commissions/committees which Councilmembers of the City of Gardena also serve, upon the completion of their term of office or chairpersonship.
g. In Memoriam : To honor the life of l ong-time City of Gardena residents, immediate family members of employees, former employees, or an individual who has made an impact to the community of Gardena.
5.0 PROCEDURES
Requests for Proclamations , Certificates, Commendations, and Congratulatory Letters may be submitted directly to the City Manager’s Office. The request may
COUNCIL POLICY
SUBJECT: CITY COUNCIL GUIDELINES FOR
PROCLAMATIONS, CERTIFICATES, COMMENDATIONS, AND
CONGRATULATORY LETTERS
be done in writing or via email ([email protected]), and shall be made at least one (1) week in advance of the presentation date, with the exception of Sympathy Certificates. Requests will go through an internal review process, so it is necessary to submit requests in a timely manner.
a. The Mayor is charged with the administration of requests and may approve , modify, or deny such requests at his/her discretion consistent with this Council Policy.
b. Proclamations, Certificates, Commendations , and Congratulatory Letters will be issued at the discretion of the Mayor but may be requested by individual Council Members through the City Manager.
c. The Mayor and/or City Manager or their designee shall approve any Proclamation and/or Commendation that is placed on the City Council agenda. d. Following approval from the Mayor, the City Manager’s Office staff will prepare the Proclamation , Certificate, Commendation, or Congratulatory Letter accordingly.
e. Upon completion of the preparation of a Proclamation , Certificate, Commendation, or Congratulatory Letter, the City Manager’s Office staff will coordinate with the requester regarding the presentation or delivery of the Recognition.
City of Gardena residents and/or organizations requesting a Proclamation, Certificate, Commendation, or Congratulatory Letter must include sufficient information to assist the City Manager’s Staff in preparing the request. Submitting a request does not guarantee that a request will be approved. Requests will be reviewed on a case-by-case basis.
Requests will not be processed for the following:
• Political endorsements or requests of a political nature • Campaigns or events contrary to the City of Gardena policies • Requests for events that are not milestone anniversaries • Or matters lacking a local connection or impact to the City of Gardena
If it is determined as outlined above , that a Proclamation or Certificate of Recognition request is not consistent with this Council Policy, the City Manager will route the request to the Mayor to determine if there is interest in issuing the Proclamation, Certificate, Commendation, or Congratulatory Letter.
COUNCIL POLICY
SUBJECT: CITY COUNCIL GUIDELINES FOR
PROCLAMATIONS, CERTIFICATES, COMMENDATIONS, AND
CONGRATULATORY LETTERS
6.0 SIGNATURES
All Certificates issued by the City of Gardena are signed by the full City Council.
Congratulatory Letters on City Letterhead are signed by the Councilmember who requests the letter. Proclamations are only signed by the Mayor.