Gonzales City Council
June 16, 2025

identified in Appendix B. The approved base Rates consist of the following Cost Components, followed by the initial weightings of each component. Each Cost Component may be adjusted by the change in the corresponding index as provided by law. All such adjustments are subject to ratification by each City Council by resolution.

A. Base Rate Cost Components. The base Rates are comprised of six (6) Cost Components as follows: (1) Service Fee, (2) Disposal Fee, (3) AB 939 Program Fee, (4) Organic Waste Processing Fee, (5) Recyclables Processing Fee (for third party processors), and (6) Franchise Fee.

The initial amount of each Cost Component for each base Rate is set forth below.

Franchisee has designated certain costs that are closely related to the Cost Components. Such Cost Components are provided below:

Franchisee’s Fees

1. Service Fee:
a. All labor and labor related costs
b. All primary and secondary fixed equipment costs
c. All primary and secondary variable costs
d. Operations support costs, such as sales, general and administrative costs, allocation of costs charged from other entities working for Franchisee related to this Agreement and profit.
e. Transportation costs to and from collection routes to Designated Disposal or Processing Facilities.

Pass-Through Fees

2. Disposal Fee: Tip fees and other applicable surcharges and fees at the Designated Transfer and Disposal Facilities for the Disposal Franchise Solid Waste

3. AB 939 Program Fee: Fees imposed by the Authority and other governmental authorities, other than the Disposal Fees and Organic Waste Processing Fee

4. Organic Waste Processing Fee: Tip fees and other applicable surcharges and fees at the Designated Transfer and Processing Facilities for Franchise Organic Waste

5. Recyclables Processing Fee: Tipping fees and related charges for processing of mixed Residential and Commercial curbside Recycling performed by Franchisee.

6. Franchise Fee: The Franchise Fee percentage, set forth in Section 9.04, on the fees in 1- 5 above.

B. Annual Adjustments for Cost Components

1. Service Fee. The Cost Indicator of this Cost Component is the Consumer Price Index for All Urban Consumers: Garbage and Trash Collection Services, Series ID CUSR0000SEHG02 (“CPI”), as published by the Bureau of Labor Statistics. The Franchisee will calculate the annual adjustment based upon the percentage increase for the previous twelve months using the February index, with fee adjustments taking effect on July 1 of each year. The CPI percentage increase will then be multiplied by the current year’s approved Service Fee. Each time the fees are modified, the revised fee becomes the basis for subsequent CPI adjustments. Notwithstanding anything contrary set forth in these terms, the service fee shall never be less than the service fee for the year prior, and the February index that last resulted in an increase will be used as the starting point for future calculations.

Packet Pg. 115 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

If the Franchisee seeks an increase in the CPI variable unit price exceeding five percent (5%), based on the criteria above, the Franchisee will provide financial information demonstrating that the variable costs have exceeded the CPI percentage. In the event the Franchisee is unable to demonstrate, the Cities reserve the right to withhold a portion of the CPI adjustment above 5%.

If the CPI is discontinued or revised during the Term by the United States Department of Labor, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the CPI had not been discontinued or revised.

2. Disposal Fee. The Cost Indicator for this Cost Component are the actual published landfill tip fees for the effective year and other applicable surcharges and fees at the Designated Transfer and Disposal Facilities to dispose of Franchise Solid Waste. Therefore, by April 30 of each year, Franchisee will determine its projected Disposal Tip Fees for the Agreement year ending the upcoming June 30 as well as the projected Disposal Tip Fees for the Agreement year ending the next upcoming June 30. The year-over-year percentage increase from the current year to the next will be the annual percentage change. The percentage will then be multiplied by the current year’s approved Disposal Fee. Each time the fees are modified, the revised fee becomes the basis for subsequent adjustments.

3. AB 939 Program Fee. The Cost Indicator for this Cost Component are the actual fees imposed by the Authority and other governmental authorities, other than the Disposal Tip Fees and Organic Waste processing fees, regarding the Franchise Services (the “Governmental Fees”). Therefore, by April of each year, Franchisee will determine its projected Governmental Fees for the Agreement year ending the upcoming June 30 as well as the projected Governmental Fees for the Agreement year ending the next upcoming June 30. The year-over-year percentage increase from the current year to the next will be the annual percentage change. The percentage will then be multiplied by the current year’s approved AB 939 Program Fee. Each time the fees are modified, the revised fee becomes the basis for subsequent adjustments.

4. Organic Waste Processing Fee. The Cost Indicator for this Cost Component are the actual tip fees and other applicable surcharges and fees at the Designated Transfer and Processing Facilities to receive and process of Franchise Organic Waste (“Organics Tip Fees”). Therefore, by April of each year, Franchisee will determine its projected Organics Tip Fees for the Agreement year ending the upcoming June 30 as well as the projected Organics Tip Fees for the Agreement year ending the next upcoming June 30. The year-over-year percentage increase from the current year to the next will be the annual percentage change. The percentage will then be multiplied by the current year’s approved Organic Waste Processing Fee. Each time the fees are modified, the revised fee becomes the basis for subsequent adjustments.

5. Recyclables Processing Fee. The Cost Indicator for this Cost Component are the actual tip fees and other applicable surcharges and fees at the Designated Recyclables Processing Facilities to receive and process Franchisee collected Recyclables (“Recyclables Processing Tip Fees”). Therefore, by April of each year, Franchisee will determine its projected Recyclables Processing Tip Fees for the Agreement year ending the upcoming June 30 as well as the projected Recyclables Processing Tip Fees for the Agreement year ending the next upcoming June 30. The year-over-year percentage increase from the current year to the next will be the annual percentage change. The percentage will then be multiplied by the current year’s approved Recyclables Processing Fee. Each time the fees are modified, the revised fee becomes the basis for subsequent adjustments.

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6. Franchise Fee. The Franchise Fee set forth in Section 9.04 may be modified by the Cities, at their sole and absolute discretion. Franchise Fees shall be retained by the Cities from Customer payments made to the Cities.

SECTION 9.04 FRANCHISE FEE
The Franchisee shall pay each Party to this Agreement a Franchise Fee equal to twenty percent (20%) of the gross amount of base Rate payments received from Customers.

Franchise Fees will be paid monthly, by the last day of the month following. The Cities may, at their sole discretion, seek to modify the Franchise Fee percentage; however, the Franchise Fee percentage shall only be increased upon written agreement of the Parties. In the event the Franchise Fee or any other Cities fees is determined by a court to be invalid or unenforceable, then Franchisee shall not be obligated to remit such invalidated Franchise Fee or other fee to the Cities. Cities and Franchisee will, as promptly as reasonably practicable following such court decision meet and confer to negotiate in good faith and using reasonable efforts to agree upon on adjustments to each of the Rates, which adjustments shall in the aggregate, as applied to Collection services, equal the amount of the Cities fees determined to be invalid or unenforceable. To the extent the Customers are entitled to a reimbursement of any invalid or unenforceable Cities fees, Cities will directly reimburse such Customers such Cities fees to the extent the same have been paid by such Customers either directly or indirectly (through Franchisee) to the Cities.

SECTION 9.05 CHANGES IN APPLICABLE LAW OR MARKET CONDITIONS In the event that a change in Applicable Law or change in market conditions occurs, including but not limited to lack of commercially reasonable market availability for a type of processed Franchise Recyclable Material, changes in market specifications affecting the salability of a type of processed Franchise Recyclable Material, or changes affecting the recyclability or marketability of a type of processed Franchised Recyclable Material (each a “Material Change”), this Agreement shall be modified or suspended as may be necessary to comply with, ameliorate, or prevent the detrimental effects on the Agreement of such Material Change. A party detrimentally affected by a Material Change shall so notify the other party and request amendment to this Agreement accordingly, and the parties shall engage in good faith negotiations regarding such amendments of this Agreement that reflect the extent to which the provisions hereof have been, or should be, so modified or suspended. If a Material Change precludes or reduces any of the Service Fees or other revenues, then the parties shall modify this Agreement in accordance with this provision in order that Franchisee can achieve, on an ongoing basis, profits that existed immediately prior to the Material Change.

SECTION 9.06 OTHER SERVICE FEE ADJUSTMENTS
The Service Fees shall, upon written request of Franchisee, be further adjusted on an interim basis for increased expenses or reduced revenue associated with performance of the services hereunder due to any one or more of the following causes:

1. Franchisee determines in good faith that the new or modified programs or processes are necessary to achieve improved Diversion;
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2. Material changes in Franchisee’s costs resulting from an Uncontrollable Circumstance (excluding Labor Disturbances);

3. Changes in the scope or method of services provided by Franchisee or changes in other fees required, initiated, or approved by the Cities;

4. Any change in Applicable Law that becomes effective after the date this Agreement is signed by a party; or

5. New or increased taxes, fees, charges, or surcharges of any kind or nature applicable to the services provided under this Agreement imposed by a governmental entity (excluding income taxes).

If Franchisee requests an adjustment due to a circumstance set forth above, Franchisee shall prepare a Rate adjustment request setting forth its calculation of the increased costs or reduced revenue and accompanying Rate adjustment necessary to offset such increased costs or reduced revenue. The Cities may request any and all documentation and data reasonably necessary to evaluate such request by Franchisee, and may retain, at its own expense, an independent third party to audit and review such documentation and such request. If such third party is retained, the Cities shall take reasonable steps, consistent with state law, to protect the confidential or proprietary nature of any data or information supplied by Franchisee. The Cities shall act within ninety (90) days of receipt of the request from Franchisee but shall approve the request if reasonably sufficient supporting information is provided.

Article X.

INDEMNITY, INSURANCE AND PERFORMANCE BOND
SECTION 10.01 INDEMNIFICATION OF CITIES
Franchisee agrees to and shall indemnify, defend, with counsel acceptable to the Cities, and hold harmless Cities, their officers, officials, employees, volunteers, agents and assigns (indemnitees) from and against any and all damages (whether special, general or punitive), loss, liability, fines, penalties, forfeitures, claims, demands, actions, proceedings or suits (whether administrative or judicial), in law or in equity, of every kind and description, (including, but not limited to, injury to and death of any person and damage to property, strict liability, product liability, or for contribution or indemnity claimed by third parties) (collectively, “Claims”) arising or resulting from or in any way connected with: (i) the willful misconduct or negligence of Franchisee, its agents, employees, and/or sub-Franchisees, in performing or failing to perform under this Agreement; (ii) the failure of the Franchisee, its agents, employees, and/or sub Franchisees to comply in all respects with Applicable Laws, ordinances and regulations, and/or applicable permits and licenses; (iii) the acts of Franchisee, its officers, employees, agents, and/or sub Franchisees in performing services under this Agreement for which strict liability is imposed by law; (iv) any action taken by the Cities upon a failure to Collect, transport, process or Dispose of Franchise Materials.

The foregoing indemnity shall apply regardless of whether such loss, liability, penalty, forfeiture, claim, demand, action, proceeding, suit, injury, death, or damage is also caused in part by any of the indemnitees’ negligence. However, the foregoing Franchisee obligations shall not apply to the extent Claims arise or are the result from an indemnitee’s negligence, willful misconduct or breach of this Agreement.

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A. AB 939 Indemnification of the City. Franchisee agrees to and shall indemnify to the extent permissible by law, defend, with counsel acceptable to the Cities, and hold harmless Cities, their officers, officials, employees, volunteers, agents and assigns (indemnitees) from and against any and all damage (whether special, general or punitive), loss, liability, fines, penalties, forfeitures, claims, demands, actions, proceedings or suits (whether administrative or judicial), in law or in equity, of every kind and description, (including, but not limited to, injury to and death of any person and damage to property, strict liability, or for contribution or indemnity claimed by third parties) arising or resulting from the failure of Cities to comply with the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code), as amended, supplemented, superseded and replaced from time to time (AB 939); provided, however, the foregoing obligations shall only apply to the extent the City’s failure to comply with AB 939 was caused by a Franchisee breach of this Agreement.

SECTION 10.02 HAZARDOUS MATERIALS INDEMNIFICATION
Franchisee shall indemnify, defend with counsel reasonably acceptable to the Cities, protect and hold harmless the Cities, their officers, officials, employees, agents, assigns and any successor or successors to the Cities’ interest from and against all claims, damages (including but not limited to special, consequential, natural resources and punitive damages) injuries, response mediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties attorney’s fees for the adverse party and expenses (including but not limited to attorney’s and expert witness fees and costs incurred in connection with defending against any of the forgoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the Cities or their officers, officials, employees, agents, assigns, or Franchisees arising from or attributable to acts or omissions including but not limited to any repair, cleanup, disposal or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken due to governmental action) concerning any Hazardous Substance or Hazardous Wastes at any place where the Franchisee transports, stores or disposes of Gray/Black Container Waste pursuant to this Agreement. The foregoing indemnity is also intended to operate as an agreement pursuant to Section 107(e) of CERCLA, 42 U.S.C. Section 9607(c) and California Health and Safety Code Section 25364, to defend, insure, protect, hold harmless and indemnify the City from liability. The foregoing indemnity shall not apply with respect to: (1) any Hazardous Waste or Hazardous Substance generated by the Cities or its agents and delivered by the Cities or its agents; (2) any materials delivered by Franchisee to a disposal facility or processing facility designated by the Cities that is not owned or operated by Franchisee, or (3) the disposal or release of Hazardous Substances or Hazardous Waste, which disposal or release has resulted from the negligence or willful misconduct of the Cities or its agents.

SECTION 10.03 PERFORMANCE BOND
Within ten (10) calendar days from the date the City Council of each City approves this Agreement, the Franchisee shall furnish to each City, and keep current throughout the term of this Agreement, a performance bond in a form substantially similar as set forth in the Appendix G which is included in and attached to this Agreement, for the faithful performance of this Agreement and all obligations arising hereunder in an amount as follows:

1. Franchisee shall maintain a performance bond throughout the Term of this Agreement in the amount of Two Million Dollars ($2,000,000).

Packet Pg. 119 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

2. The performance bond shall be executed by a surety company licensed to do business in the State of California, having an, A:VII or better rating, and approved by the Cities; and included on the list of surety companies approved by the Treasurer of the United States.

SECTION 10.04 FORFEITURE OF PERFORMANCE BOND
In the event Franchisee shall for any reason become unable to, or fail in any way to, perform as required by this Agreement, and after the opportunity to cure has passed, Cities may declare a portion or all of the performance bond which is necessary to recompense and make whole the Cities forfeited to the Cities. Upon partial or full forfeiture of the performance bond, Collector shall restore the performance bond equivalent to the forfeiture amount within thirty (30) days of the Cities’ declaration. Failure to maintain the performance bond at the required amount noted in Section 10.03 shall be a material breach of this Agreement.

Article XI.

DEFAULT AND REMEDIES
SECTION 11.01 REMEDIES FOR BREACH
The parties agree that, in the event that either party breached any obligation under this Agreement or any representation made by either party hereunder is untrue in any material respect, the other party shall have the right to take any action and seek any remedy at law or in equity it may have to enforce the payment of any damages for the performance of such other obligation hereunder.

The Franchisee acknowledges that the Cities intend to rely on the Franchisee to provide Franchise Materials Collection, transportation to the Designated Disposal Facility and/or Designated Processing Facility, Recycling and other services hereunder for the protection of the public health, safety and welfare, and that therefore the Cities may enforce any action for specific performance of the Franchisee’s obligations hereunder to provide the Franchise Services on the terms and conditions provided herein. Neither party shall have the right to terminate this Franchise for cause except after an Event of Default determined in accordance with the provisions of this Article shall have occurred and be continuing or unremedied.

SECTION 11.02 RIGHT OF THE CITIES TO PERFORM SERVICES IN CERTAIN

CIRCUMSTANCES
A. Franchisee Failure to Collect for any Reason. Should the Franchisee, for any reason whatsoever except an Uncontrollable Circumstance, fail, refuse or be unable to Collect, transport and Dispose of any or all Franchise Materials which it is herein obligated to Collect, transport and Dispose of in the time and manner and as herein in this Franchise provided, for a period of more than seventy-two (72) hours, or if in any lesser time period Franchise Materials should accumulate in the Cities to such an extent, in such manner, or for such time that the City Manager or City Council should find that such accumulation endangers or menaces the public health, safety or welfare, then, in any of those events, the Cities shall have the right, upon notice to the Franchisee, during such period, to take temporary possession of any or all of the Franchise Operating Assets necessary in the Collection, transportation, processing and Disposal of the Franchise Materials produced, kept or accumulated in the Cities, and to use such property to Collect, transport and dispose of any or all Franchise Materials which the Franchisee would otherwise be obligated to Collect, transport and dispose of pursuant to this Franchise. The Franchisee agrees that in such Packet Pg. 120 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

event it will fully cooperate with Cities to affect such a transfer of possession of the Franchise Operating Assets for Cities use of the same for the Collection, transportation and Disposal of Franchise Materials. The Franchisee agrees that in such event, the Cities may take possession of and use all of the Franchise Operating Assets for the above-mentioned purposes except those which Franchisee utilizes for customers outside the Cities without paying the Franchisee or any other person any rental or any other charges or compensation whatsoever for such possession and use. The Cities may, in such circumstances, operate the Franchise Operating Assets with its employees or cause the Franchise Operating Assets to be operated by subcontractors to the Cities, or in the alternative, the Cities may arrange for a third-party contractor to provide the service that Franchisee fails or refuses to perform. Upon such time as Franchisee is able to resume the service, Franchisee shall notify the Cities and shall resume providing such service in accordance with the terms of this Agreement.

B. Franchisee Repair. The Franchisee further agrees that, in the circumstances described in Subsection A above, the Franchisee shall, if the Cities so request, keep in good repair and condition all of the Operating Assets, service all motor vehicles necessary for continued operations with gasoline, oil and other necessary service, and provide such other service as may be necessary to render the Operating Assets operational and ready for use in collecting and transporting and disposing of Franchise Materials, all free of any and all costs or expenses to the Cities.

C. Franchisee Resumption of Service. It is further agreed that the Cities, upon seven (7) days written notice, may at any time, at their discretion, relinquish possession of any or all of the Operating Assets to the Franchisee and thereupon demand that the Franchisee resume the Collection, transportation and Disposal of Franchise Materials as provided in this Agreement, whereupon the Franchisee shall be bound to resume the same.

D. City Performance Not a Taking. It is specifically understood and agreed that the Cities’ exercise of its rights under this Section:

1. Does not constitute a taking of private property for which payment must be made;

2. Shall not create any liability on the part of the Cities to the Franchisee; and

3. That the indemnity provisions of Section 10.01 of this Agreement are meant to include circumstances arising under this Section. However, (i) the Cities will be responsible for any damage to Franchisee Operating Assets while in the Cities’ possession or while being used by Cities, and will promptly make necessary repairs or replacement, and (ii) Cities will indemnify, defend and hold harmless Franchisee with respect to Claims arising from or related to Cities’ possession or operation of Franchisee Operating Assets.

E. Duration of City’s Rights. The Cities’ right hereof to retain temporary possession of the Operating Assets and to render Collection, transportation and Disposal services shall terminate at the earlier of:

1. The time when such services can, in the reasonable judgment of the Cities, be resumed by the Franchisee, or (if earlier),

2. The time when the Cities no longer reasonably require such Operating Assets, as determined by the Cities, or

3. The expiration of twelve (12) months from the date the Cities took possession, or

4. The Franchise can be re-let if, in the sole determination of the City, the Franchisee is no longer able to perform.

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F. Security for City’s Rights. Franchisee is required to provide a performance bond in order to secure the Cities’ rights under this Section. The Cities may (but shall not be required to) cure any default of Franchise in the manner described in Subsections A and B above and may then look to Franchisee or Franchisee’s performance bond for repayment.

SECTION 11.03 EVENTS OF DEFAULT OF FRANCHISEE
Events of default under this Agreement are set forth in paragraphs A through L below:

A. Failure to Peform. Franchisee fails or refuses to perform any term, covenant, obligaion or condition contained in this Agreement (except for those obligations for which liquidated damages may be assessed by the City in accordance with Section 6.09, for which assessment of liquidated damages shall be the City’s sole remedy). Additionally, Franchisee fails or refuses to perform in accordance with the Cities’ Codes or any of its material obligations under this Agreement, as it may be amended from time to time. Franchisee may refuse to provide service to Customers where, due to topography, geographical isolation, and/or access limitations or other conditions, reasonably determines that it would pose a risk of injury to employees or damage equipment.

B. Failure to Implement Collection Program. Franchisee fails to implement a Collection program that complies with the requirements of this Agreement.

C. Failure to Provide Processing Capacity and/or Achieve Processing Standards.

Franchisee fails to provide adequate processing capacity and/or achieve processing standards in accordance with this Agreement.

D. Failure to Comply with Other Requirements. Franchisee fails to comply with other requriements of the Agreement, incuding public education, reporting, contamination, monitoring, recordkeeping, or other obligation of this Agreement.

E. Misrepresentation. Any statement, representation, or disclosure made to the Cities by Franchisee in this Agreement or any future amendment to this Agreement, which proves to be false or misleading in any material respect.

F. Seizure or Attachment. A seizure or attachment (other than prejudgment attachment) or levy affecting possession on, the operating equipment and facilities of such corporation as to substantially impair the Franchisee’s ability to perform under this Agreement and which cannot be released, bonded or otherwise lifted within seventy-two (72) hours, excluding weekends and holidays.

G. Financial Insolvency. Franchisee files a voluntary petition for debt relief under any applicable bankruptcy, insolvency, debt relief, or other similar law or regulation now or herafter in affect, or consents to the appointment of or taking of possession by a receiver, liquidator, assignee, trustee, custodian, sequester for any part of the Franchisee’s Operating Assets or any substantial part of Franchisee’s creditors, or shall fail generally to pay Franchisee’s debts as they become due or shall take any action in furtherance of any of the foregoing.

H. Court Decisions. Any court having jurisdiction shall enter a decree or order appointing a receiver, liquidator, assignee, custodian, trustee, or sequestrator of the Franchisee or for any part of the Franchisee’s operating equipment or assets, or order the winding up or liquidation of the affairs of Franchisee.

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I. Fraud or Deceit. If Franchisee practices, or attempts to practice, any fraud or deceit upon Cities.

J. Failure to Maintain Coverage. If Franchisee fails to provide or maintain in full force and effect the insurance coverage requried by this Agreement.

K. Violation of Regulation. If Franchisee violates any permits, orders, or filing of any regulatory body having jurisdiction over Franchisee, which violation or non-compliance materially affects the Franchisee’s ability to perform under this Agreement, provided that Franchisee may contest any such orders or findings by appropriate proceedings conducted in good faith, in which case no breach of the Agreement shall be deemed to have occurred during the pendency of the contestation or appeal, to the extent Franchisee is able to adequately perform during that period.

L. Acts or Omissions. Any other act or omission by Franchisee which materially violate the terms, conditions, or requirements of this Agreement, AB 939, AB 341, AB 1826, AB 876, AB 901, and SB 1383, as it may be amended from time to time, or any order, directive, rule or regulation issued thereunder and which is not corrected or remedied within the time set in the written notice of the violation.

M. Opportunity to Cure. Cites shall give Franchisee written notice of any alleged breach and Franchisee shall then have thirty (30) days after receiving such notice to cure, provided that where such breach cannot be cured within such thirty (30) day period, Franchisee shall not be in default of this Agreement if the Franchisee shall have commenced such action required to cure the particular default within ten (10) days after such notice, and it continues such performance diligently until completed within a reasonable time.

N. Enforcement Costs. The Franchisee agrees to pay to the Cities all fees and expenses incurred by or on behalf of the Cities and the Service Coordinator in enforcing payment or performance of the Franchisee’s obligations hereunder if such non-performance results in a judicially determined Event of Default by the Franchisee.

SECTION 11.04 EVENT OF DEFAULT BY THE CITIES
Each of the following shall constitute an Event of Default on the part of the Cities:

A. Failure to Pay. The failure of the Cities to pay undisputed amounts due and owing to the Franchisee under this Agreement within forty-five (45) days following receipt of a Franchisee invoice, therefore.

B. Other Failure to Perform. Failure or refusal of the Cities to perform any term, covenant, obligation or condition contained in this Agreement, except that no such failure or refusal shall give the Franchisee the right to terminate this Franchise under this Section unless:

1. The Franchisee has given prior written notice to the Cities, stating that a specific failure or refusal to perform exists which will, unless corrected, constitute a material breach of this Agreement on the part of the Cities and which will, in its opinion, give the Franchisee a right to terminate this Franchise for cause under this Section unless such default is corrected within fifteen (15) days; and
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2. The City has neither challenged in an appropriate forum the Franchisee’s conclusion that such failure or refusal to perform has occurred or constitutes a material breach of this Franchise nor corrected or diligently taken steps to correct such default within such fifteen (15) day period from receipt of the notice given pursuant to the clause (a) of this Subsection (but if the Cities shall have diligently taken steps to correct such default within a reasonable period of time, the same shall not constitute an Event of Default for as long as the Cities are continuing to take such steps to correct such default).

C. Enforcement Costs. The Cities agree to pay to the Franchisee all fees and expenses incurred by or on behalf of the Franchisee in enforcing payment or performance of the Cities’ obligations hereunder if such non-performance results in a judicially determined Event of Default by the Franchisee.

SECTION 11.05 NO WAIVERS
No action of the Cities or Franchisee pursuant to this Agreement (including, but not limited to, any investigation or payment), and no failure to act, shall constitute a waiver by either party of the other party’s compliance with any term or provision of this Agreement. No course of dealing or delay by the Cities or Franchisee in exercising any right, power or remedy under this Agreement shall operate as a waiver thereof or otherwise prejudice such party’s rights, powers and remedies.

No single or partial exercise of (or failure to exercise) any right, power or remedy of the Cities of the Franchisee under this Agreement shall preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

SECTION 11.06 NO CONSEQUENTIAL OR PUNITIVE DAMAGES
In no event shall either party hereto be liable to the other or obligated in any manner to pay to the other any special, incidental, consequential, punitive or similar damages based upon claims arising out of or in connection with the performance or non-performance of its obligations or otherwise under this Agreement, or the material inaccuracy of any representation made in this Agreement, whether such claims are based upon contract, tort, negligence, warranty or other legal theory.

SECTION 11.07 FORUM FOR DISPUTE RESOLUTION
It is the express intention of the parties that all legal actions and proceedings related to this Agreement or to the Franchise Services or to any rights or any relationship between the parties arising there from shall be solely and exclusively initiated and maintained in courts of the State of California in Monterey County or the United States of America having appropriate jurisdiction.

SECTION 11.08 ADMINISTRATIVE REVIEW OF DISPUTES
Either party hereto may give the other party written notice of any dispute with respect to this Agreement. Such notice shall specify a date and location for a meeting of the parties hereto at which such parties shall attempt to resolve such dispute. The Service Coordinator shall keep a record of the proceedings conducted and information presented during such meeting. In the event that such dispute cannot be resolved by the parties hereto within thirty (30) days or seven (7) days if it involves a dispute under Section 11.02 above, the matter may be referred by either party to Legal Proceedings. In the event either party has referred a dispute to any such proceeding, the Cities may not act to terminate this Agreement for cause except at the conclusion of the meeting of the parties held pursuant to this Section.

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SECTION 11.09 CRIMINAL ACTIVITY OF THE FRANCHISEE
Should the Franchisee or any of its officers or directors be “found guilty” of felonious conduct relating to the Franchise Services, or other felonious conduct involving: (1) a price fixing conspiracy in connection with Franchise Services, (2) intentional and illegal transport or Disposal of hazardous or toxic materials generated within the Cities, or (3) bribery of public officials, the Cities reserve the right:

1. To unilaterally terminate this Agreement; or

2. Exercise all other remedies available to the Cities as if Franchisee default had occurred; or

3. To impose such other sanctions (which may include financial sanctions, or any other condition deemed appropriate short of termination) as the Cities and Franchisee shall mutually agree. Such action shall be taken after the Franchisee has been given notice and an opportunity to present evidence in mitigation. The term “found guilty” shall be deemed to include any judicial determination that the Franchisee or any of its officers, directors or employees is guilty, and any admission of guilt by the Franchisee, or any of its officers, directors, or employees including, but not limited to, the pleas of “guilty”, “nolo contendere”, “no contest” or “guilty of a lesser felony” entered as part of any plea bargain. Notwithstanding the foregoing, if such officers, directors or employees are acting in their own behalf in their individual capacities as officers, directors or employees, the Franchisee shall dismiss or remove such officers, directors or employees and take all action necessary, and appropriate; in such event, the Franchisee will not be deemed in breach of this Agreement.

SECTION 11.10 RIGHT TO TERMINATE
Upon default by Franchisee under Section 11.03 and after any expired cure period in which the Franchisee has not cured the default, the Cities shall have the right to terminate this Agreement without need for any additional hearing, suit or legal action.

Article XII.

OTHER AGREEMENTS OF PARTIES
SECTION 12.01 RELATIONSHIP OF PARTIES
Neither party to this Agreement shall have any responsibility whatsoever with respect to services provided or contractual obligations or liabilities assumed by the other party hereto, whether accrued, absolute; contingent or otherwise, or whether due or to become due. The Franchisee is an independent Franchisee and franchise holder and nothing in this Agreement shall be deemed to constitute either party a partner, agent or legal representative of the other party or to create any fiduciary relationship between the parties.

SECTION 12.02 COMPLIANCE WITH LAW
The Franchisee shall comply with the rules and regulations governing the operation, use and services of the Designated Disposal Facility, and shall observe and perform all of the terms and Packet Pg. 125 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

conditions contained in the State law, the Cities Municipal Codes and all other Applicable Law, shall obtain and maintain all Legal Entitlements required for the Operating Assets and the Franchise Services, and shall comply with all valid acts, rules, regulations, order and directions of any governmental body applicable to the Operating Assets and the Franchise Services provided hereunder.

SECTION 12.03 GOVERNING LAW
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California without giving effect to its conflict of law principles, and the United States of America.

SECTION 12.04 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 for purposes of both State and federal court action that this Agreement is made in and will be performed in the County of Monterey, State of California.

SECTION 12.05 BINDING ON SUCCESSORS
The provisions of this Agreement shall inure to the benefit to and be binding on the successors and permitted assigns of the Parties.

SECTION 12.06 PARTIES IN INTEREST
Nothing in this Agreement, whether expressed or implied, is intended to confer any rights on any Persons other than the Parties to it and their representatives, successors, and permitted assigns.

SECTION 12.07 FURTHER ASSURANCES
Each Party agrees to execute and deliver any instruments and to perform any acts as may be necessary or reasonably requested by the other in order to give full effect to this Agreement. The Parties agree to act reasonably in exercising any action, discretion, judgment, approval or extension of time that may be required to affect the purpose and intent of this Agreement.

Whenever the approval or consent of a Party is required under this Agreement such consent shall not be unreasonably withheld or delayed.

SECTION 12.08 FRANCHISEE’S INVESTIGATION
Franchisee has made an independent investigation, satisfactory to it, of the condition and circumstances surrounding the Agreement and the work to be performed.

SECTION 12.09 NOTICES
All notices, demands, requests, proposals, approvals, consents, and other communications which this Agreement require, authorize or contemplate, shall, except as otherwise specifically provided, be in writing, including electronic mail, at the address below, or deposited in the United States mail, first class postage prepaid, addressed to:

Packet Pg. 126 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

City Manager
City of Gonzales
P.O. Box 647
147 Fourth Street
Gonzales, CA 93926
City Manager
City of Greenfield
599 El Camino Real
P.O. Box 127
Greenfield, CA 93927
City Manager
City of Soledad
248 Main Street
Soledad, CA 93960
Any notices or communications required or permitted hereunder to be given to the Franchisee shall be in writing, including electronic mail at:

Tom Parola, President
Tri-Cities Disposal and Recycling Services, Inc.
10 Ryan Ranch Road
Monterey, CA 93940
[email protected]
Changes in the respective addresses to which such notices may be directed may be made from time to time by any Party by written or electronic notice to the other Party. Notices and communications given by postal mail hereunder shall be deemed to have been given five (5) days after the date of dispatch; all other notices shall be deemed to have been given upon receipt.

SECTION 12.10 NOTICES OF LITIGATION
Each Party shall deliver written notice to the other of any Legal Proceeding to which it is a Party and which questions the validity or enforceability of this Agreement or any other related agreement executed by the Cities or the Franchisee or any Legal Entitlement issued in connection herewith.

SECTION 12.11 ACTIONS OF THE CITY IN ITS GOVERNMENTAL CAPACITY Nothing in this Agreement shall be interpreted as limiting the rights and obligations of the Cities in its governmental or regulatory capacity, or as limiting the right of the Franchisee to bring any legal action against the Cities, not based on this Agreement, arising out of any act or omission of the Cities in its governmental or regulatory capacity.

SECTION 12.12 AMENDMENTS
Neither this Agreement nor any provision hereof may be changed, modified, amended or waived except by written agreement duly executed by all Parties.

SECTION 12.13 INTERPRETATION
In this Agreement, unless the context otherwise requires:

A. Gender and Plurality. Words of the masculine gender mean and include correlative words of the feminine and neuter genders and words importing the singular number mean and include the plural number and vice versa.

B. Headings. The table of contents and any headings preceding the text of the Articles, Sections, and Subsections of this Agreement shall be solely for convenience of reference and shall not constitute a part of this Franchise, nor shall they affect its meaning, construction, or effect.

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C. Reference to Days. All references to days herein are to calendar days, including Saturdays, Sundays and holidays, except as otherwise specifically provided.

D. Entire Franchise. This Agreement contains the entire agreement between the Parties hereto with respect to the transactions contemplated by this Franchise and nothing in this Franchise is intended to confer on any person other than the Parties hereto and their respective permitted successors and assigns hereunder any rights or remedies under or by reason of this Franchise.

E. Counterparts. This Agreement may be executed in any number of original counterparts.

All such counterparts shall constitute but one and the same Agreement.

F. Severability. If any clause, provision, Subsection, Section or Article of this Agreement shall be determined to be invalid by any court of competent jurisdiction, then the Parties hereto shall:

Promptly meet and negotiate a substitute for such clause, provision, section or Article which shall, to the greatest extent legally permissible, effect the intent of the Parties therein; If necessary, the Parties shall negotiate changes in, substitutions for or additions to the remaining provisions of this Franchise as may be necessary to give effect to the intent of the Parties in the invalid provision.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates indicated below.

FRANCHISEE
____________________________________
[Signature must be notarized]
____________________________________
Title of Signatory

CITY OF SOLEDAD
____________________________________
Mayor, Anna Velazquez
ATTEST:
____________________________________
City Clerk
____________________________________
Name [printed]

CITY OF GONZALES
____________________________________
Mayor, Jose Rios
ATTEST:
____________________________________
City Clerk
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APPROVED AS TO FORM
____________________________________
City Attorney
Dated: ______________________________

CITY OF GREENFIELD
____________________________________
Mayor, Robert White
ATTEST:
____________________________________
City Clerk

APPROVED AS TO FORM
____________________________________
City Attorney
Dated: ______________________________

APPROVED AS TO FORM
____________________________________
City Attorney
Dated: ______________________________
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APPENDIX A

SPECIFICATIONS FOR CONTAINERS AND VEHICLES
A. COLLECTION CONTAINERS

1. General. The Franchisee shall provide industry standard Containers for the storage of Source Separated Discarded Material from Customers, which shall be leak resistant and have fitted plastic lids (excluding Drop-Boxes). All Container size and volumes detailed or identified in this Agreement are approximations and may vary depending on the manufacturer of the Container. Containers shall comply with all Applicable Law.

2. Container types and sizes.
a. Bins
Capacity: 1, 2, 3, 4, and 6 cubic yards
b. Drop-Boxes/Roll-off Boxes
Capacity: 20, 30, and 40 cubic yards
c. Carts – Collection type and capacity:

Gray/Black Container Waste:32, 48, 64, and 96 gallons
Blue Container Waste: 64 and 96 gallons
Green Container Waste: 96 gallons
Food Waste only: 32 gallons and 64 gallons

3. Containers for Customer types.
a. Commercial and applicable Multi-Family Dwelling Customers. The Franchisee shall provide Bin, Drop-Box, or Cart Containers to Commercial and applicable Multi-Family Dwelling Customers at the Rates specified in Appendix B. b. Residential Customers. The Franchisee shall provide three-Cart Container services to Residential Customers at the Gray/Black Container Waste Rate specified in Appendix B, with no additional cost for one (1) Blue and one (1) Green Container Waste Collection services.

4. Container Labeling. Containers shall be clearly labeled to instruct the acceptable material to be placed in Containers in accordance with this Agreement. Carts, Bins, and Roll-Off Containers, excluding Roll-off Containers provided for temporary services, provided by the Franchisee to Customers to store Discarded Materials pending Collection shall be clearly identified as Gray/Black Container Waste, Blue Container Waste, Green Container Waste, Construction and Demolition Debris or Food Waste, as applicable. All Containers shall also contain the Franchisee’s name on the exterior of the Container to be visible when the Container is placed for use.

5. Cart Colors. Carts shall be of a different color for each type of usage in accordance with SB 1383 and may not be changed without the prior written approval of the City Manager.

6. The Franchisee shall not be required to collect Franchise Materials from Containers which do not conform to the requirements under this Agreement.

7. The Franchisee shall distribute the Containers on a schedule determined by the Packet Pg. 130 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

Cities and the Franchisee.

B. COLLECTION VEHICLES

1. General. Franchisee shall provide a fleet of industry-standard Collection vehicles sufficient in number and capacity to efficiently perform the work required by the Agreement in strict accordance with its terms. The Franchisee agrees to maintain each piece of equipment used by it in the performance of this Agreement in good order and repair. Franchisee shall have available on service days sufficient backup vehicles and qualified operators to respond to complaints and emergencies.

2. Vehicle Identification. The Franchisee’s name, local or toll-free phone number, and unique vehicle identification number designed by Franchisee for each vehicle shall be visibly displayed on all four sides of each vehicle in letters and figures no less than three (3) inches tall.

3. Cleaning and Maintenance. Franchisee shall maintain all of its properties, facilities, and equipment used in providing service under this Agreement in a safe, neat, clean and operable condition at all times, and shall keep its equipment well and uniformly painted, to the satisfaction of the Cities. Vehicles shall be maintained in such a manner that no leakage of fluids from the collected materials occurs.

A. Cleaning: Vehicles used in the Collection shall be thoroughly washed as provided in this Agreement and thoroughly steam cleaned on a regular basis so as to present a clean appearance and minimize odors. All vehicles shall be painted on a regular schedule to maintain a clean, professional appearance. The vehicles shall be painted in a uniform manner; although Solid Waste, Recycling, and Organic Waste vehicles may have different painting schemes. All graffiti shall be removed immediately. The Cities may inspect vehicles during normal business hours to determine compliance with sanitation requirements. Franchisee shall make vehicles available to the County Health Department for inspection at any frequency it requests.

B. Maintenance: Franchisee shall, prior to use, inspect each vehicle to ensure that all equipment is operating properly, and perform all scheduled maintenance functions in accordance with the manufacturer’s specifications and schedule. Vehicles which are not operating properly shall be taken out of service until they are repaired and do operate properly. Franchisee shall keep accurate records of all vehicle maintenance, recorded according to date and mileage, and shall make such records available to the Cities upon request.

C. Repairs: Franchisee shall repair, or arrange for the repair of, all of its vehicles and equipment, including major dents, leaks, and other body damage, for which repairs are needed because of accident, breakdown or any other cause so as to maintain all equipment in a neat, safe and operable conditions. Franchisee shall maintain accurate records of repair, which shall include date/mileage, nature of repair and the signature of a maintenance supervisor that the repair has been properly performed.

Packet Pg. 131 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

APPENDIX B - CUSTOMER RATES CAP SCHEDULE
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APPENDIX C – PUBLIC CONTAINERS & CITY FACILITY LOCATIONS Location Site Address Qty Size/Service Frequency
GREENFIELD CITY YARD 920 WALNUT AVE 2 SW 4CY 2 times per week CITY YARD 920 WALNUT AVE 1 SW 20CY On-Call
CITY YARD 920 WALNUT AVE 1 REC 2CY Weekly
CITY YARD 920 WALNUT AVE 1 ORG 30CY On-Call
CIVIC CENTER 599 EL CAMINO REAL 1 SW 4CY Weekly
CIVIC CENTER 599 EL CAMINO REAL 1 SW 3CY Weekly
CIVIC CENTER 599 EL CAMINO REAL 6 REC 96G Weekly
CIVIC CENTER 599 EL CAMINO REAL 1 REC 2CY Weekly
CIVIC CENTER 599 EL CAMINO REAL 1 ORG 64G Weekly
COMMUNITY CENTER 1351 OAK AVE 1 SW 3CY Weekly
COMMUNITY CENTER 1351 OAK AVE 1 REC 2CY Weekly
MEMORIAL HALL 615 EL CAMINO REAL 1 SW 3CY 2 times per week MEMORIAL HALL 615 EL CAMINO REAL 1 REC 2CY Weekly
MEMORIAL HALL 615 EL CAMINO REAL 1 ORG 96G Weekly
PATRIOT PARK & CHILD DEVEL 1351 OAK AVE 1 SW 2CY 2 times per week PATRIOT PARK & CHILD DEVEL 1351 OAK AVE 8 REC 96G Weekly PATRIOT PARK & CHILD DEVEL 1351 OAK AVE 1 ORG 64G Weekly WATER TREATMENT PLANT 41901 WALNUT AVE 1 SW 2CY Weekly
GONZALES CENTENNIAL PARK 250 FIRST ST 1 SW 3CY Weekly
CITY HALL 147 FOURTH ST 1 SW 2CY Weekly
CITY HALL 147 FOURTH ST 4 REC 96G Weekly
CITY HALL 147 FOURTH ST 1 REC 300G Weekly
CITY HALL 147 FOURTH ST 1 REC 2CY Weekly
CITY HALL 147 FOURTH ST 1 ORG 64G Weekly
CITY YARD 201 C ST 1 SW 20CY Weekly
CITY YARD 201 C ST 1 REC 300G Weekly
CITY YARD 201 C ST 1 ORG 20CY Weekly
FIRE DEPT 325 CENTER 1 SW 96G Weekly
FIRE DEPT 325 CENTER 1 REC 96G Weekly
FIRE DEPT 325 CENTER 1 ORG 64G Weekly
POLICE DEPT 109 FOURTH ST 1 SW 2CY Weekly
POLICE DEPT 109 FOURTH ST 1 ORG 64G Weekly
PUBLIC POOL 205 ELKO ST 3 SW 64G Weekly
PUBLIC POOL 205 ELKO ST 3 REC 64G Weekly
PUBLIC POOL 205 ELKO ST 2 ORG 96G Weekly
VOSTI CENTER 107 CENTENNIAL DR 1 SW 4CY Weekly
VOSTI CENTER 107 CENTENNIAL DR 2 REC 96G Weekly
VOSTI CENTER 107 CENTENNIAL DR 1 ORG 64G Weekly
SOLEDAD CITY YARD 1060 STATE ST 2 SW 4CY 2 times per week CITY YARD 1060 STATE ST 1 SW 20CY Weekly
CITY YARD 1060 STATE ST 1 REC 2CY Weekly
CITY YARD 1060 STATE ST 2 REC 200G Weekly
CITY YARD 1060 STATE ST 1 ORG 30CY Weekly
COMMUNITY CENTER 560 WALKER DR 2 SW 4CY 2 times per week COMMUNITY CENTER 560 WALKER DR 4 REC 96G Weekly
COMMUNITY CENTER 560 WALKER DR 1 REC 2CY Weekly
COMMUNITY CENTER 560 WALKER DR 1 ORG 96G Weekly
FIRE DEPT 525 MONTEREY ST 1 SW 96G Weekly
FIRE DEPT 525 MONTEREY ST 1 REC 96G Weekly
FIRE DEPT 525 MONTEREY ST 1 ORG 96G Weekly
POLICE DEPT 248 MAIN ST 1 SW 2CY 2 times per week
POLICE DEPT 248 MAIN ST 3 REC 96G Weekly
POLICE DEPT 248 MAIN ST 1 REC 2CY Weekly
POLICE DEPT 248 MAIN ST 1 ORG 64G Weekly
SWIMMING POOL 570 WALKER DR 1 SW 2CY Weekly
SWIMMING POOL 570 WALKER DR 1 REC 96G Weekly
WATER TREATMENT PLANT 34520 MOROSOLLI RD 3 SW 2CY 2 times per week WATER TREATMENT PLANT 34520 MOROSOLLI RD 2 REC 96G 2 times per week Packet Pg. 134 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

APPENDIX D

PUBLIC OUTREACH AND EDUCATION INFORMATION AND REQUIREMENTS Public Education Workplan: Before July 1, 2025, Franchisee shall provide the Cities with an initial Public Education Plan for the period of July 1 through December 31, 2025, for Cities approval designed to inform all current and potential Customers of new programs available under this Agreement, implementation schedule and other related information necessary to assure a smooth transition to the services include hereunder.

Franchisee and the Cities shall meet annually prior to the beginning of the next Calendar Year to develop the public education workplan for the upcoming Calendar Year. The workplan shall detail interactions with public schools, Multi-Family Dwelling units, businesses, and special events, including identification of additional services, for that year. Information produced herein will be made available in both English and Spanish as appropriate to the target audience. Each of the resulting work products shall be subject to review and approval by the Cities. Each annual workplan shall not result in materially higher costs to Franchisee, as compared to the initial annual workplan.

At a minimum, Franchisee’s Annual Public Education Plan shall include the following activities:

1. Instruction Service Guide. Franchisee shall prepare bilingual instructional service guides that describe available services, how to place Containers for Collection, and which materials should be placed in each Container, and that provides Collection holidays and a Customer service phone number and digital contact. The service guides shall be printed and delivered with each set of Containers distributed to a new Customer and shall be printed and mailed annually to all Customers, including Multi-Family Dwelling/Commercial Customers. The instructional service guides for Multi-Family Dwelling/Commercial Customers shall include information outlining State manadates AB 341, AB 1826 and SB 1383, how Customers can ensure compliance, and available assistance. Franchisee shall also make the instructional service guides available to Customers in electronic format through its website and/or electronic mail.

2. Commercial/Multi-Family Dwelling Education Materials. A Commercial or MultiFamily Dwelling Customer may request these education materials more frequently than stated above to comply with 14 CCR Section 18984.10 requirements for Commercial Businesses and Multi-Family Dwelling property owners to provide education information to new tenants and employees before or within 45 days of occupation of the Premises.

3. Billing Inserts/Newsletters. Franchisee agrees to annually insert a minimim of four (4) bilingual newsletters or inserts, or other information developed by the Cities into Customer invoices at no additional charge to the Cities. Franchisee shall be responsible for printing the bill inserts Franchisee shall develop materials, articles, and graphics for the newsletters relating to change in schedules, services offered or new services added, including but not limited to; holiday schedules, food waste collection program, announcements of Community Drop-off Events, holiday tree recycling, home compost bins for purchase, Composting workshops or compost giveaways, used motor oil and filter Collection, proper Household Hazardous Waste Dispsoal, City and State requirements to properly separate Discarded Materials, waste prevention on Premises, benefits of reducing landfill Disposal, Edible Food Recovery requirements, or methods of Organic Waste recovery used by the Franchisee. Franchisee shall fund and arrange for the design of the newsletters and printing and mailing services for distribution of the newsletter to all residents Packet Pg. 135 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

and businesses.

4. Multi-Family and Commercial Customer Signage. Franchisee shall provide all Multi-Family and Commercial Customers with Blue Container, Green Container and Gray/Black Container Waste program guidelines, including Container labels to be placed on Collection Containers where Discarded Materials are stored. Labels shall indicate types of allowed materials and be updated when substantial changes to accepted or not accepted materials occurs. Franchisee shall be responsible for prinitng the labels, ensuring they are placed on Containers, and delivering them to the Customers upon request.

5. Educational Materials for Property Owners or Managers, Business Owners, and Tenants. Franchisee shall annually provide property owners and Commercial business owners with public education materials for their distribution to all employees, contractors, tenants and Customers of the properties and businesses. The Franchisee’s public education materials shall include, at a minimum, information about Organic Waste recovery requirements and proper sorting of Discarded Materials.

6. Commercial Edible Food Generator Outreach. Franchisee shall distribute education materials related to the City’s Edible Food recovery programs.

7. School Outreach. Franchisee shall provide Recycling and other waste management services for schools and shall fund and provide at least two (2) waste reduction and Recycling presentations per Franchise Year at schools mutually agreed upon between Franchisee and the schools. The presentations shall contain specific age-appropriate curriculum consistent with Authority education programs or literature from a credible publisher such as CalRecycle, the California Resource Recovery Association, or similar agency approved by the Cities.

8. Outreach & Events. Franchisee shall fund and provide staff for community events, booths, and/or information tables at Cities’ sponsored events. Franchisee shall provide adequate quantities of educational materials for each event. Franchisee shall provide Recycling and other waste management services for schools, Multiple-Family Dwelling Customers, businesses, and special event activities. Franchisee shall retain qualified staff dedicated to public education. Staff that is bilingual, in English and Spanish, is preferred. Franchisee staff shall work in conjunction with the Cities to perform and conduct waste assessments, outreach activities, and implement waste reduction and Recycling programs in accordance with the public education workplan.

9. Audits. The Franchisee shall conduct audits to identify residents and businesses not using mandatory Franchise Services, a minimum of once per year. The audit results shall be submitted to the Cities for review.

10. Customer Survey. Franchisee shall distribute a digital survey to Customers with an active email address on file, at minimum of every two (2) years, or less frequently as determined by the Cities., The survey shall focus on core questions related to Customer’s overall relationship with the Franchisee, and then expand into targeted questions regarding Customer’s service experience with the Franchisee, and Customer’s knowledge of Franchisee’s waste Diversion services and programs.

The content of all outreach and educational information referenced in this Agreement shall be submitted to the Cities for advanced approval prior to preparation of final copy-ready master documents.

Packet Pg. 136 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

Franchisee’s Annual Public Education Plan may also include activities not outlined within this Agreement or Appendix D but are approved by the Cities.

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6 APPENDIX E

ROUTING & COLLECTION SYSTEM
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REQUIRED INSURANCE SCOPE AND LIMITS
Franchisee shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Franchisee, its agents, representatives, employees, or subFranchisees. With respect to General Liability, and Pollution and/or Environmental Impairment Liability coverage should be maintained for a minimum of five (5) years after contract completion.

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

A. Minimum Scope of Insurance: Coverage shall be at least as broad as:

1. Insurance Services Office form number GO 0002 (Ed. 1/73) covering comprehensive General Liability and Insurance Services Office form number GO 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage (“Occurrence” form CG 0001.).

2. Insurance Services Office form number, covering Automobile Liability, code 1 (any auto).

3. Worker’s Compensation Insurance as required by the State of California and Employer’s Liability Insurance.

4. Pollution and/or Environmental Impairment Liability.

B. Minimum Limits of Insurance: Franchisee shall maintain limits no less than:

1. General Liability: $5,000,000 combined single limit per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used.

2. Automobile Liability: $5,000,000 combined single limit per accident for bodily injury and property damage.

3. Worker’s Compensation and Employer’s Liability: $1,000,000 each accident, $1,000,000 policy limit bodily injury or disease, $1,000,000 each employee bodily injury by disease.

4. Pollution and/or Environmental Impairment Liability: $5,000,000 each occurrence/$5,000,000 policy aggregate covering liability arising from the release of waste materials and/or irritants, contaminants or pollutants. The policy shall stipulate this insurance is primary and no other insurance carried by the City will be called upon to contribute to a loss suffered by Franchisee hereunder and waive subrogation against the City and other additional insureds.

C. Deductible and Self-Insured Retentions: Any deductibles or self-insured retentions shall be for the account of the Franchisee and paid entirely by Franchisee without contribution from the City.

Packet Pg. 141 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 10 D. Other Insurance Provisions:

1. The policies are to contain, or be endorsed to contain, the following provisions:
a. The City, their officers, officials, employees and volunteers are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of Franchisee; and with respect to liability arising out of work or operations performed by or on behalf of Franchisee including materials, parts or equipment furnished in connection with such work or operations. b. Franchisee’s insurance coverage shall be primary insurance as respects the City, their officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, their officers, officials, employees, agents, or volunteers shall be excess of Franchisee’s insurance and shall not contribute with it but only as respects the services provided by Franchisee under this Agreement.
c. Each insurance policy required by this clause shall be occurrence-based, except for Pollution/Environmental Impairment which may be written on a claim-made basis and shall be endorsed to state that coverage shall not be canceled by the Insurer except after thirty (30) days prior written notice has been given to the City.
d. Franchisee’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.
e. The Automobile Liability policy shall be endorsed to delete the Pollution and/or the Asbestos exclusion.
f. Worker’s Compensation and Employers Liability Coverage. The insurer shall agree to waive all rights of subrogation against the City, their officers, officials, employees, and volunteers for losses arising from work performed by the Franchisee for the City.

E. Acceptability of Insurers: Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, if admitted. If Pollution and/or Environmental Impairment coverages are not available from an “Admitted” insurer, a Non-Admitted insurance company may write the coverage. A Non-Admitted company should have an A.M. Best’s rating of A:X or higher.

F. Verification of Coverage: Franchisee shall furnish the City with certificate of insurance and the required endorsements evidencing coverage required by this clause. The certificates/endorsements are to be signed by a person authorized by that Insurer to evidence coverage on its behalf. All certificates/endorsements are to be received and approved by the City before work commences.

G. Sub-Franchisees: Franchisee shall include all sub-Franchisees as insureds under its policies or shall furnish separate certificates and endorsements for each sub-Franchisee. All coverages for sub-Franchisees shall be subject to all the requirements stated herein.

Packet Pg. 142 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 11 H. Other Provisions:

1. Franchisee shall comply with reporting and other provisions of the policies so that coverage afforded to the City, their officers, officials, agents, employees and volunteers are not affected.

2. The City, their officers, officials, agents, employees, and volunteers shall be named as additional insureds on all policies except Workers’ Compensation/Employers Liability.

A copy of all relevant insurance certificates shall be attached hereto.

Packet Pg. 143 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 12 APPENDIX G

FORM OF PERFORMANCE BOND
COMPANY (Name and Address):

SURETY (Name and Principal Place of Business):

CITY (Name and Address): City of ________, California
OPERATION CONTRACT (Franchise Agreement)
Date:

Amount:

Description (Name and Location):

BOND
Effective Date: July 1, 2025
Amount: $2,000,000.00
Expiration Date: June 30, 2035, renewed annually at the discretion of the surety via continuation certificate throughout the term of the Franchise Agreement. Surety’s liability under the Bond, and any and all Continuation Certificates, shall not be cumulative and shall in no event exceed the amount of the Bond, as herein set forth, regardless of the number of periods the Bond is extended.

Franchise Agreement Expiration Date: June 30, 2035
Modifications to this Bond: See below

COMPANY AS PRINCIPAL SURETY
Name:____________________________ Name:____________________________ (Corporate Seal) (Corporate Seal)
Signature:_________________________ Signature:_________________________ Name:____________________ Name:____________________
Title:_____________________________ Title:____________________________ (Any additional signatures and addresses appear on attached page(s)) (FOR INFORMATION ONLY - Name, Address and Telephone)
AGENT or BROKER: CITY’S REPRESENTATIVE
(Architect, Engineer or other party):

Packet Pg. 144 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 13 1. The Company and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the City for the performance of the Operation Contract, which is incorporated herein by reference.

2. If the Company timely and completely performs the Operation Contract, the Surety and the Company shall have no obligation under this Bond, except to participate in conferences as provided in subparagraph 3.1.

3. If there is no City Default, the Surety’s obligation under this Bond shall arise after:

3.1. The City has notified the Company and the Surety at its address described in Paragraph 10 below that the City is considering declaring a Company Default and requested a conference with the Company and the Surety to discuss the performance of the Operation Contract; and

3.2. The City has declared a Company Default and sent a notice to the Company and the Surety formally electing to terminate the Company’s right to complete the performance of the work under the Operation Contract; and

3.3. The City has agreed (subject to Paragraph 5 hereof) to pay the Balance of the Contract price to the Surety in accordance with the terms of the Operation Contract or to a Franchisee selected to perform the remaining work under the Operation Contract in accordance with the terms of the Operation Contract with the City.

4. When the City has satisfied the conditions of Paragraph 3, the Surety shall promptly and at the Surety’s expense take one of the following actions:

4.1. Arrange for the Company, with the consent of the City, to perform and complete the Operation Contract; or

4.2. Undertake to perform and complete the Operation Contract itself, through its agents or through qualified independent Franchisees; or

4.3. Obtain bids or negotiated proposals from qualified Franchisees acceptable to the City for a contract for performance and completion of the Operation Contract, arrange for a contract to be prepared for execution by the City and the Franchisee selected with the City’s concurrence, to be secured with performance bonds executed by a qualified surety equivalent to the bonds issued on the Operation Contract, and pay to the City the amount of damages as described in Paragraph 6 in excess of the Balance of the Contract Price incurred by the City resulting from the Company’s default; or

4.4. Waive the right to perform and complete, arrange for completion, or obtain a new Franchisee and with reasonable promptness under the circumstances:
(1) After investigation, determine the amount for which it may be liable to the Packet Pg. 145 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 14 City and, as soon as practicable after the amount is determined, tender payment therefore to the City; or
(2) Deny liability in whole or in part and notify the City citing reasons therefore

5. If the Surety does not proceed as provided in Paragraph 4 with reasonable promptness (and in any event within the 45-day period commencing on the receipt by the Surety of the notice referred to in subparagraph 3.2 hereof), the Surety shall be deemed to be in default on this Bond and without further notice the City shall be entitled to enforce any remedy available to the City, including without limitation arranging for the work under the Operation Contract to be completed by a qualified Franchisee or Franchisees selected by the City and seeking compensatory damages from the Surety. If the Surety proceeds as provided in subparagraph 4.4, and the City refuses the payment tendered or the Surety has denied liability, in whole or in part, without further notice the City shall be entitled to enforce any remedy available to the City, including without limitation arranging for the work under the Operation Contract to be completed by a qualified Franchisee or Franchisees selected by the City and seeking compensatory damages from the Surety.

6. After the City has terminated the Company’s right to complete the Operation Contract, and if the Surety elects to act under Subparagraph 4.1, 4.2, or 4.3 above, then the responsibilities of the Surety to the City shall not be greater than those of the Company under the Operation Contract, and the responsibilities of the City to the Surety shall not be greater than those of the City under the Operation Contract. To the limit of the amount of this Bond, but subject to commitment by the City of the Balance of the Contract Price to mitigation of costs and damages on the Operation Contract, the Surety is obligated without duplication for:

6.1. The responsibilities of the Company for the collection of Franchise Materials in accordance with the Operation Contract;

6.2. Additional legal, design, professional, and delay costs resulting from the Company Default, and resulting from the actions or failure to act of the Surety under Paragraph 4; and

6.3. Liquidated damages, or if no liquidated damages are specified in the Operation Contract, actual damages caused by delayed performance or nonperformance of the Company.

7. The Surety shall not be liable to the Company or others for obligations of the Company that are unrelated to the Operation Contract, and the Balance of the Contract Price shall not be reduced or set off on account of any such unrelated obligations. No right of action shall accrue on this Bond to any person or entity other than the City or its heirs, executors, administrators or successors.

8. The Surety hereby waives notice of any change, including changes of time, to the operation Contract or to related subcontracts, purchase orders and other obligations.

9. Any proceeding, legal or equitable, under this Bond may be instituted in any court of Packet Pg. 146 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 15 competent jurisdiction in the location in which the work or part of the work is located and shall be instituted within two years after Company Default or within two years after the Company ceased working or within two years after the Surety refuses or fails to perform its obligations under this Bond, whichever occurs first. If the provisions of this Paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable.

10. Notice to the Surety, the City, or the Company shall be mailed or delivered to the address shown on the signature page.

11. When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the Agreement is to be performed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted here from and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein.

12. DEFINITIONS

12.1. Balance of the Contract Price: The total amount due and payable by the City to the Company under the Operation Contract after all proper adjustments have been made, including allowance to the Company of any amounts received or to be received by the City in settlement of insurance or other claims for damages to which the Company is entitled, reduced by all valid and proper payments made to or on behalf of the Company under the Operation Contract.

12.2. Operation Contract: The Franchise Services Agreement between the Company and the City, effective July1, 2025.

12.3. Company Default: Failure of the Company, which has neither been remedied nor waived, to perform or otherwise to comply with the terms of the Operation Contract, including, without.

12.4. City Default: Failure of the City, which has neither been remedied nor waived, to pay the Company as required by the Operation Contract to perform and complete or comply with the other terms thereof, which failure must be sufficiently serious to justify a termination of the Operation Contract, including, without limitation, an Event of Default of the City, as defined in the Co-Operation Agreement.

Packet Pg. 147 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 16 MODIFICATIONS TO THIS BOND ARE AS FOLLOWS:

This Bond has been entered into to bind the Surety and the Company, as principal, unto City of Greenfield, City of Gonzales, and City of Soledad, it successors and assigns, in the penal sum of TWO MILLION DOLLARS ($2,000,000), lawful money of the United States of America, for the payment of which said sum of money well and truly to be made, the Surety and the Company bind themselves, their successors and assigns in such sum “jointly and severally” and well as “severally only” for the purpose of allowing a joint action or actions against any or all of them and for all other purposes, each binds itself, its successors and assigns, jointly and severally to the City, its successors and assigns for the payment of such sums as to which the Company or the Surety may become obligated to pay under this Performance Bond. (Space is provided below for additional signatures or added parties, other than those appearing on the cover page.)

COMPANY AS PRINCIPAL SURETY
Name:____________________________ Name:____________________________ (Corporate Seal) (Corporate Seal)
Signature:_________________________ Signature:_________________________ Name: ________________________ Name: _____________________ Title:_________________________ Title:______________________ Packet Pg. 148 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 17 APPENDIX H
Reporting Requirements
The Franchisee shall comply with the following reporting requirements for the duration of the Franchise Term.
• Prior to the initial preparation of the reports required by this Agreement Franchisee shall consult with the City to establish the format and data definitions for each report that best meets the City’s needs.
• All reports shall be submitted electronically unless otherwise specified. • Electronic reports shall be in a PC-based Excel, or Excel-compatible format or any other mutually agreed upon format.
• Reports shall be submitted by the 25th of each month following the reporting period unless otherwise specified.
• Franchisee shall provide the City with upon-request reports within thirty (30) working days of request; provided such reports do not result in additional costs to Franchisee. • All reports shall be based on a Calendar Year (January 1 – December 31).

A. Monthly Reports
Total tons Collected and delivered to Designated Facilities for all Collection services. Monthly tonnage reports shall be separated by Customer type and Collection service types and should include calculated recovery rates, including residuals, if provided by processor, and an overall recovery rate of services.

1. Tonnage by Customer type
a. Residential/Commercial/Multi-Family Dwellings (Cart Customers) b. Commercial/Multi-Family Dwellings (Bin Customers)
c. Drop Box/Roll-off Customer

2. Tonnage By Collection service
a. Grey/Black Container Waste
b. Blue Container Waste
c. Green Container Waste
d. Other Collection service agreed upon by the City and Franchisee B. Quarterly Reports

1. Participation rates for all Commercial, Multi-Family Dwelling and Drop-box/Roll-off accounts to track Customer compliance with AB 341, AB 1826 and SB 1383

2. Public Education and Information
a. Summary description of public education and information activities undertaken b. Distribution of Customer literature, community information and events, tours and other activities as identified in Appendix D of this Agreement, and c. Description of any perceived needs for publicity or public education.

Packet Pg. 149 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 18 3. Problems and Actions Taken
a. Significant changes in operation, market factors, and b. Description of processed material loads rejected for sale, reason for rejection and disposition of load after rejection, if available from processor.

C. Annual Report
Annual reports shall be submitted no later than ninety (90) days following the end of the Franchise Year and should include the following:

1. Summarizes the numerical information contained in the monthly and/or quarterly reports,

2. Discuss public awareness activities and their impact on Blue Container and Green Container Waste participation and recovered amounts,

3. Summarize Customer complaints or comments to convey any trends or developing situations.

D. Upon Request

1. By route: number of daily setouts

2. By route: Tons Collected and delivered to Designated Facilities,

3. Truck identification number for each daily route,

4. By route: number of service accounts by material type, size & frequency

5. By route: weekly participation Rates in terms of weekly set out counts, and

6. Number of Collection Containers in inventory and distributed by size and Customer type,

7. Overage fees charged to Customers per Section 5.10.C,

8. Number of Bulky item pickups, and

9. Analysis of Collection, processing and marketing problems or conditions (participation, set outs, contamination, market trends, etc.) and possible solutions, if applicable.

10. Summary of service tickets, praises, complaints

11. Total number of service accounts by Customer and Container type and size

12. Type and number of Contamination and Overage notices sent to Customers,

13. City services (City facilities/public containers) by size and location E. Additional Reports

1. Financial reports pursuant to Article 8. Franchisee may also supply any other information readily available to Franchisee from records it is required to maintain under this Agreement that may be reasonably requested by the City to meet State or Federal regulatory requirements, as those requirements may be amended from time to time.

2. Recycling processing and marketing services, if provided by processor. a. By material type (and grade where appropriate): monthly totals of quantities Packet Pg. 150 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 19 processed,
b. By material type (and grade where appropriate): monthly totals of quantities sold; specify purchaser name and location, price received per ton and total payment, c. By material type: quantities donated or otherwise disbursed without compensation, d. Monthly quantity of processing Residue, and,
e. Characterize, describe and quantify any contamination problems, reject loads, etc.

In the event the City requests additional information or new or modified reporting, Franchisee shall be entitled to a rate adjustment to compensate it for its costs in such additional reporting obligations. Said reports shall be in the form required by the City and shall categorize Recycling and Diversion activity in the manner required by the City.

Packet Pg. 151 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 20 APPENDIX I

STREET SWEEPING
In accordance with Section 5.08.G, it is the responsibility of the Franchisee to provide street sweeping services to the Cities upon request. If street sweeping is provided to the Cities by the Franchisee, the Cities will provide a dedicated water supply, sufficient space for Drop-Box storage and payment of all fees for disposal of debris produced by street sweeping activities. Accordingly, the following minimum requirements must be met by the Franchisee:

1. Equipment:
a. Street Sweeping service shall be provided by Franchisee with Franchisee equipment and personnel. The Franchisee shall have the right to subcontract this service with the approval by the City Manager(s) or their designee(s).
b. Water from the sweeper’s water system shall be used during all sweeping to provide dust suppression and prevent unnecessary wear to moving parts or vacuum apparatus. c. Street Sweepers used as part of this Franchise must meet California Air Resources Board requirements, as well as compliance with Article 7 of this Franchise.

2. Operations:
a. Establish and maintain a continuous level of cleanliness of Cities’ streets in order to assure protection of the health, safety and welfare of the community. b. Clean Cities’ streets in a systematic and coordinated manner that complements solid waste collection and other Cities’ services, by use of a routing system that provides high-level street cleaning practices while maintaining acceptable costs. Routes shall be agreed upon and change as growth occurs. Appendix E shall include the residential, Commercial and industrial routes for each City. All Parties agree to work in good faith on changes to routes.
c. All streets shall be swept along paved surfaces for the full length and width of the shoulder where there is either a raised curb or gutter, median or median barrier to the end of the pavement.
d. Streets shall be maintained clean and free of debris commensurate with the number of parked cars and access to the curb and gutter for cleaning. This may require two passes of an area at the discretion of the operator if sufficient time is available for completion of the sweeping route.
e. When feasible, leave routes to sweep around schools and neighborhood areas where sweeping cannot be accomplished after school begins.
f. Emergency response (accidents/spills).

Packet Pg. 152 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- 21 g. Additional limited sweeping support of facility parking lots upon request for parks/community center/libraries.
h. Disposal of debris from street sweeping shall be the responsibility of the Franchisee.

Franchisee agrees to work with Cities for sampling the material removed from streets if required or desired.
i. Cities may determine that some areas in their community should be swept more frequently in exchange for less frequently in another area. If the areas are approximately equal in, there shall be no changes for this exchange of frequency. j. The Cities may order the suspension of sweeping/cleaning operations whenever, in their judgment, current or impending weather conditions are such that sweeping/cleaning cannot be carried out in a safe and/or effective manner.

3. Schedule: The schedule shall be as follows, unless changes agreed upon by Franchisee and City Manager:
a. Residential streets shall be swept once every week between the hours of 5:00 a.m. and 5:00 p.m. on the day of or the first Business Day after Solid Waste collection. b. Commercial streets shall be swept once every week between the hours of 5:00 a.m. and 5:00 p.m.

4. Records:
a. Records shall be maintained recording the cubic yards or Tons of debris Collected from each street sweeper.
b. Records shall be maintained recording the number of estimated curb miles swept.

5. Customer Service:
a. The Franchisee maintains a 24-hour phone number to accept residential concerns or complaints regarding the street sweeping program.
b. Response to resident complaints or concerns shall, whenever possible, occur the same day.

6. Fees
The Franchisee shall, without charge or compensation, provide weekly street sweeping services to each City on the day of or the first working day following each Residential Collection route. If additional street sweeping services are required by any of the Cities, each City may negotiate an independent contract to compensate the Franchisee.

Packet Pg. 153 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri- All Cities 2025-26 2025-26 2025-26 2025-26 2025-26 2025-26 2025-26 2025-26 2025-26 2025-26 Garbage Collection and Disposal Rates - TCDR Franchise Total Trash Organics AB939 Disposal Total Total Effective July 1, 2025 to June 30th, 2026 Total Fee (City) Collection Disposal Disposal Fee Franchise Disposal Customer Description of Service Fee Fee Fee (City) Fees Rate Cap

20.00% 20.00%
Residential Weekly Cart Service
32 Gallon Cart $ 20.30 $ 4.06 $ 24.36 $ 4.49 $ 2.47 $ 2.60 $ 1.91 $ 11.47 $ 35.83 48 Gallon Cart $ 21.86 $ 4.37 $ 26.23 $ 6.74 $ 2.47 $ 3.92 $ 2.63 $ 15.76 $ 41.99 64 Gallon Cart $ 28.03 $ 5.61 $ 33.64 $ 14.59 $ 2.47 $ 8.45 $ 5.10 $ 30.61 $ 64.25 96 Gallon Cart $ 34.29 $ 6.86 $ 41.15 $ 22.44 $ 2.47 $ 13.01 $ 7.58 $ 45.50 $ 86.65 Residential or Commecial Cart Service -Additional Charges Call Back (per trip) $ 10.39 $ 2.08 $ 12.47 $ 12.47
Overloaded Cart $ 10.39 $ 2.08 $ 12.47 $ 12.47
Extra Can or Bag (each) $ 20.87 $ 4.17 $ 25.04 $ 1.22 $ 0.69 $ 0.38 $ 2.29 $ 27.33 Cart Replacement (each) $ 41.69 $ 8.34 $ 50.03 $ 50.03
Cart Cleaning $ 24.75 $ 4.95 $ 29.70 $ 29.70
Commercial & Multiple Dwelling Weekly Cart Service (3)
48 Gallon Cart $ 20.99 $ 4.20 $ 25.19 $ 6.74 $ 3.92 $ 2.13 $ 12.79 $ 37.98 64 Gallon Cart $ 26.55 $ 5.31 $ 31.86 $ 14.59 $ 8.45 $ 4.61 $ 27.65 $ 59.51 96 Gallon Cart $ 32.22 $ 6.44 $ 38.66 $ 22.44 $ 13.01 $ 7.09 $ 42.54 $ 81.20 Commercial Cart Service -Additional Charges
Long Walk Service (4) $ 26.46 $ 5.29 $ 31.75 $ 31.75
Enclosure or Key/Lock Charge $ 21.49 $ 4.30 $ 25.79 $ 25.79 Commercial & Multiple Dwelling Bin Service (5)
One Cubic Yard Bin
1 Pickup Per Week (1cy) $ 145.39 $ 29.08 $ 174.47 $ 39.26 $ 22.71 $ 12.39 $ 74.36 $ 248.83 2 Pickup Per Week (1cy) $ 270.32 $ 54.06 $ 324.38 $ 78.55 $ 45.43 $ 24.80 $ 148.78 $ 473.16 3 Pickup Per Week (1cy) $ 383.02 $ 76.60 $ 459.62 $ 117.81 $ 68.12 $ 37.19 $ 223.12 $ 682.74 4 Pickup Per Week (1cy) $ 495.72 $ 99.14 $ 594.86 $ 157.07 $ 90.83 $ 49.58 $ 297.48 $ 892.34 Extra Pick-Up (1cy) (each) $ 36.51 $ 7.30 $ 43.81 $ 9.04 $ 5.22 $ 2.85 $ 17.11 $ 60.92 Two Cubic Yard Bin
1 Pickup Per Week (2cy) $ 205.65 $ 41.13 $ 246.78 $ 78.55 $ 45.43 $ 24.80 $ 148.78 $ 395.56 2 Pickup Per Week (2cy) $ 386.48 $ 77.30 $ 463.78 $ 157.10 $ 90.85 $ 49.59 $ 297.54 $ 761.32 3 Pickup Per Week (2cy) $ 549.48 $ 109.90 $ 659.38 $ 235.65 136.22$ $ 74.37 $ 446.24 $ 1,105.62 4 Pickup Per Week (2cy) $ 712.48 $ 142.50 $ 854.98 $ 314.20 181.65$ $ 99.17 $ 595.02 $ 1,450.00 Extra Pick-Up (2cy) (each) $ 52.24 $ 10.45 $ 62.69 $ 18.12 $ 10.50 $ 5.72 $ 34.34 $ 97.03 Three Cubic Yard Bin
1 Pickup Per Week (3cy) $ 288.46 $ 57.69 $ 346.15 $ 117.81 $ 68.12 $ 37.19 $ 223.12 $ 569.27 2 Pickup Per Week (3cy) $ 543.82 $ 108.76 $ 652.58 $ 235.65 136.22$ $ 74.37 $ 446.24 $ 1,098.82 3 Pickup Per Week (3cy) $ 774.49 $ 154.90 $ 929.39 $ 353.48 204.38$ $ 111.57 $ 669.43 $ 1,598.82 4 Pickup Per Week (3cy) $ 1,005.16 $ 201.03 $ 1,206.19 $ 471.29 272.50$ $ 148.76 $ 892.55 $ 2,098.74 Extra Pick-Up (3cy) (each) $ 73.58 $ 14.72 $ 88.30 $ 27.17 $ 15.71 $ 8.58 $ 51.46 $ 139.76 Four Cubic Yard Bin
1 Pickup Per Week (4cy) $ 368.55 $ 73.71 $ 442.26 $ 157.10 $ 90.85 $ 49.59 $ 297.54 $ 739.80 2 Pickup Per Week (4cy) $ 695.69 $ 139.14 $ 834.83 $ 314.20 181.68$ $ 99.18 $ 595.06 $ 1,429.89 3 Pickup Per Week (4cy) $ 994.88 $ 198.98 $ 1,193.86 $ 471.28 272.49$ $ 148.75 $ 892.52 $ 2,086.38 4 Pickup Per Week (4cy) $ 1,294.07 $ 258.81 $ 1,552.88 $ 628.38 363.34$ $ 198.34 $ 1,190.06 $ 2,742.94 Extra Pick-Up (4cy) (each) $ 94.82 $ 18.96 $ 113.78 $ 36.27 $ 20.98 $ 11.45 $ 68.70 $ 182.48 Six Cubic Yard Bin
1 Pickup Per Week (6cy) $ 497.96 $ 99.59 $ 597.55 $ 235.65 136.22$ $ 74.37 $ 446.24 $ 1,043.79 2 Pickup Per Week (6cy) $ 945.08 $ 189.02 $ 1,134.10 $ 471.28 272.49$ $ 148.75 $ 892.52 $ 2,026.62 3 Pickup Per Week (6cy) $ 1,348.66 $ 269.73 $ 1,618.39 $ 706.95 408.75$ $ 223.14 $ 1,338.84 $ 2,957.23 4 Pickup Per Week (6cy) $ 1,752.24 $ 350.45 $ 2,102.69 $ 942.60 544.97$ $ 297.51 $ 1,785.08 $ 3,887.77 Extra Pick-Up (6cy) (each) $ 117.13 $ 23.43 $ 140.56 $ 54.38 $ 31.44 $ 17.16 $ 102.98 $ 243.54 Commercial Bin Service -Additional Charges
96 Gal. Weekly Mixed Organics (each) (2) $ 25.92 $ 5.18 $ 31.10 $ 2.47 $ 0.49 $ 2.96 $ 34.06 Long Walk Service (4) $ 26.46 $ 5.29 $ 31.75 $ 31.75

EXHIBIT B
Packet Pg. 154 Attachment: FY 2025-2026 Garbage Collection and Disposal Rates (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Key/Lock Charge $ 21.49 $ 4.30 $ 25.79 $ 25.79
Call Back (Bin Service)(per trip) $ 31.24 $ 6.25 $ 37.49 $ 37.49 Commercial Organic Weekly Cart Service
32 Gallon Food Scrap Cart Service $ 17.46 $ 3.49 $ 20.95 $ 7.29 $ 1.46 $ 8.75 $ 29.70 64 Gallon Food Scrap Cart Service $ 20.22 $ 4.04 $ 24.26 $ 14.56 $ 2.91 $ 17.47 $ 41.73 Contamination Charges (Based on Container size)
64 Gallon Cart (each) $ 8.65 $ 1.73 $ 10.38 $ 3.93 $ 2.25 $ 1.24 $ 7.42 $ 17.80 96 Gallon Cart (each) $ 10.74 $ 2.15 $ 12.89 $ 5.89 $ 3.43 $ 1.86 $ 11.18 $ 24.07 200 Gallon Barrel (each) $ 22.34 $ 4.47 $ 26.81 $ 8.96 $ 5.20 $ 2.83 $ 16.99 $ 43.80 350 Gallon Barrel (each) $ 39.08 $ 7.82 $ 46.90 $ 15.65 $ 9.06 $ 4.94 $ 29.65 $ 76.55 450 Gallon Barrel (each) $ 50.26 $ 10.05 $ 60.31 $ 20.18 $ 11.68 $ 6.37 $ 38.23 $ 98.54 1 Cubic Yard Container (each) $ 43.98 $ 8.80 $ 52.78 $ 9.04 $ 5.22 $ 2.85 $ 17.11 $ 69.89 2 Cubic Yard Container (each) $ 63.11 $ 12.62 $ 75.73 $ 18.12 $ 10.50 $ 5.72 $ 34.34 $ 110.07 3 Cubic Yard Container (each) $ 89.40 $ 17.88 $ 107.28 $ 27.17 $ 15.71 $ 8.58 $ 51.46 $ 158.74 4 Cubic Yard Container (each) $ 114.81 $ 22.96 $ 137.77 $ 36.27 $ 20.98 $ 11.45 $ 68.70 $ 206.47 6 Cubic Yard Container (each) $ 163.65 $ 32.73 $ 196.38 $ 54.38 $ 31.44 $ 17.16 $ 102.98 $ 299.36 Compactor Service and Drop Box Services (1)
Compactor Services
20 Cubic Yard Compactor $ 263.45 $ 52.69 $ 316.14 TBD 20% TBD TBD 30 Cubic Yard Compactor $ 315.90 $ 63.18 $ 379.08 TBD 20% TBD TBD 40 Cubic Yard Compactor $ 368.34 $ 73.67 $ 442.01 TBD 20% TBD TBD Drop Box/Roll Off Service
20 Cubic Yard Drop Box $ 233.90 $ 46.78 $ 280.68 TBD 20% TBD TBD 30 Cubic Yard Drop Box $ 280.65 $ 56.13 $ 336.78 TBD 20% TBD TBD 40 Cubic Yard Drop Box $ 327.43 $ 65.49 $ 392.92 TBD 20% TBD TBD Extra Day $ 11.54 $ 2.31 $ 13.85 $ 13.85
Call/Move Charge/Call Back $ 57.70 $ 11.54 $ 69.24 $ 69.24 Saturday Surcharge
(1) Service billed to customer directly by Tri-Cities Disposal and Recycling, Customer is billed the actual disposal fee plus franchise fees. (2) Mixed Organics service is not intended for use by restaurants or other food service establishments. (3) Commercial/Multi-family cart customers that request Franchise Mixed Organics service will be billed at the Residential Rate (4) For Distance greater 15' monthly additional for each 25' (5) Enclosure service included for 1-4cy bins
f TCDR Collecti
Packet Pg. 155 Attachment: FY 2025-2026 Garbage Collection and Disposal Rates (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 16, 2025
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution 2025-43 Notice to Proceed with Gateway Pacific Contractors for the Industrial Wastewater Treatment Facility and Task Order #3 with Dudek Consulting and Task Order #4 with MNS Engineers

RECOMMENDATION
Staff recommends that the City Council consider and adopt Resolution 2025-43, A Resolution of the City Council of the City of Gonzales Authorizing Issuance of a Notice to Proceed with Construction with Gateway Pacific Contractors for the Industrial Wastewater Treatment Facility, Authorizing Task Order #3 under a Master Service Agreement with Dudek Consulting for Design Support during Construction, and Authorizing Task Order #4 under a Master Service Agreement with MNS Engineers for Construction Management and Inspection Services.

BACKGROUND
The City’s Municipal Wastewater Treatment Plant (MWWTP) operates under a Waste Discharge Permit from the Central Coast Regional Water Quality Control Board. The MWWTP has a permitted capacity of

1.3 million gallons/day (MGD) and current sewer flows to the plant are approximately 1.2 MGD.

Therefore, the MWWTP is near its permitted capacity and for several years has struggled to comply with the 2006 Discharge Permit requirements as the MWWTP wasn’t designed to treat the amount of ag-wash water it receives. The ag-wash water is approximately 75% of the wastewater treated at the MWWTP and ag-wash water contains cleansers and sanitizers that disrupt the biological treatment process.

Through the preparation of a Long-Term Wastewater Management Plan, the City determined that construction of an Industrial Wastewater (IW) System was the most cost effective and expedient approach to expand the City’s wastewater system. The IW System will collect the ag-wash water discharged from the three large processing facilities in the Business Park (Taylor Farms, Del Monte and Braga Fresh) and AGENDA
ITEM
17 Packet Pg. 156
convey the flows to a new IW Treatment Facility to be constructed on City-owned property just east of the MWWTP.

The construction documents (plans, technical specifications, and cost estimate) for the Industrial Wastewater Treatment Facility were prepared by Dudek Consulting. The project was issued for public bid on January 15, 2025. On February 26, 2025, the City received bids from six contractors. City staff and MNS Engineers (WW/IW Program Manager) reviewed the bids and determined that the lowest responsive and responsible bid was submitted by Gateway Pacific Contractors. As the City needed to award the contract within 90 days of the bid opening, at the May 19, 2025 meeting, the City Council awarded the construction contract to the low bidder, Gateway Pacific Contractors.

The following table provides a breakdown of the estimated costs and funding to complete the IW System:

Project Costs and Funding

CONSTRUCTION
Collection System $7,991,000 (1)
IWTF $23,584,000 (2)
Other Ancillary Work $175,000
Subtotal = $31,750,000
CONSULTANT COSTS - Planning/Design Phase
Pretreatment Program $20,000
Finalize Design $60,000
Engineering Services During Bidding/Award Phase $220,000 Easements for IW Pipeline $260,000
CONSULTANT COSTS - Construction Phase
Engineering Services During Construction $1,472,000
Program Management $400,000
Construction Management $2,860,000
Environmental $350,000
Subtotal = $5,642,000
Legal and Financial Costs $200,000
TOTAL = $37,592,000

FUNDING
SRF Loan $28,884,000
Sewer Impact Fees $2,750,000
DEFICIT = $5,958,000
(1) Includes 5.0% Contingency
(2) Includes 7.5% Contingency
After the bid opening for the IW Treatment Facility, staff estimated there was a funding gap of approximately $6,000,000 to complete the project. On March 18, 2025, a $6M loan amendment request was submitted to the State Water Resources Control Board (SWRCB) to supplement the City’s $29M State Revolving Fund (SRF) loan to cover the increased costs of the project. The $6M increase will be repaid by City sewer rates.

Packet Pg. 157
The City’s $6M loan amendment request was reviewed by SWRCB financial staff based on updated financial reports provided by the City Finance Director. On May 30, 2025 SWRCB staff emailed City staff that the financial review was completed and the City’s requested $6M loan amendment was approved!

REVIEW AND ANALYSIS
SWRCB staff advised City staff to issue the Notice to Proceed with Construction to Gateway Pacific in parallel with SWRCB staff preparing the SFR Amendment agreement which will take three to four months. Therefore, City staff recommends that the City Council authorize staff to issue the Notice to Proceed for construction of the IW Treatment Facility to expedite its completion.

In addition to issuing the Notice to Proceed to Gateway Pacific, staff recommends that the following Task Orders are authorized for professional services to support the construction of the IW Treatment Facility:

1. Authorize Task Order #3 under a Master Service Agreement with Dudek Consulting for Design Support during Construction in the amount of $1,342,037 including a contingency budget of $175,049 per their February 28, 2025 letter proposal

2. Authorize Task Order #4 under a Master Service Agreement with MNS Engineers for Construction Management and Inspection in the amount of $2,485,223 including a contingency budget of $173,387 per their February 25, 2025 letter proposal.

The schedule for the project is in the table below:

How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.

Explain: This project supports our vision by making improvements to the wastewater system to increase its capacity for residential and industrial development.

Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: Maintaining and improving the wastewater treatment plant enhances the community’s quality of life by providing for treatment and safe disposal of the City’s wastewater.

Date/Time
Award Construction Contract at City Council Meeting May 19, 2025 Construction Contract Executed June 10, 2025
Notice to Proceed (tentative) July 1, 2025
Contractor Mobilization (tentative) August 15, 2025
Construction Complete (tentative) Spring 2027
Packet Pg. 158
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: See Vision above.

ALTERNATIVES
The City Council could wait until the $6M SRF Amendment is fully executed to authorize the issuance of the Notice to Proceed for Construction. Staff doesn’t recommend this due to the need to expedite completion of the IW System.

BUDGET IMPACT
This contract will be funded with the Sewer Rates and Sewer Impact funds.

CONCLUSIONS
Staff recommends that the City Council consider and adopt Resolution 2025-43, A Resolution of the City Council of the City of Gonzales Authorizing Issuance of a Notice to Proceed with Construction with Gateway Pacific Contractors for the Industrial Wastewater Treatment Facility, Authorizing Task Order #3 under a Master Service Agreement with Dudek Consulting for Design Support during Construction, and Authorizing Task Order #4 under a Master Service Agreement with MNS Engineers for Construction Management and Inspection Services.

Attachments:

1. Aerial showing IW Pipeline and IW Treatment Facility

2. Resolution No. 2025-43

3. Notice to Proceed with Construction to Gateway Pacific Contractors

4. Task Order #3 with Dudek for Design Support Services

5. Task Order #4 with MNS Engineers for Construction Management/ Inspection Services Packet Pg. 159
Packet Pg. 160 Attachment: Aerial showing IW Pipeline and IW Treatment Facility (3299 : Resolution No. 2025-43 Notice

RESOLUTION NO. 2025-43

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

AUTHORIZING ISSUANCE OF A NOTICE TO PROCEED WITH CONSTRUCTION WITH

GATEWAY PACIFIC CONTRACTORS FOR THE INDUSTRIAL WASTEWATER TREATMENT FACILITY, AUTHORIZING TASK ORDER #3 UNDER A MASTER SERVICE

AGREEMENT WITH DUDEK CONSULTING FOR DESIGN SUPPORT DURING CONSTRUCTION, AND AUTHORIZING TASK ORDER #4 UNDER A MASTER SERVICE

AGREEMENT WITH MNS ENGINEERS FOR CONSTRUCTION MANAGEMENT AND

INSPECTION SERVICES
WHEREAS, the City will expand the municipal wastewater system by constructing an Industrial Wastewater System with an initial capacity of 1.0 million gallons/day; and WHEREAS, a CEQA-Plus EIR for the Industrial Wastewater System was completed in October 2021 and construction documents (plans, technical specifications, and cost estimate) were completed in September 2022, and as such, no further CEQA analysis is needed for the actions contemplated in this resolution; and
WHEREAS, funding for construction of the Industrial Wastewater System will come from a State Revolving Fund loan from the State Water Resources Control Board which will be repaid with City Sewer Rates and Sewer Impact funds; and
WHEREAS, the City issued the Industrial Wastewater Treatment Facility (“Project”) for public bid on January 15, 2025 and six bids were submitted at the February 26, 2025 bid opening; and
WHEREAS, after the bid opening, staff estimated there was a funding gap of $6M to complete the project. And on March 18, 2025, City staff submitted a $6M loan amendment request to the State Water Resources Control Board (SWRCB) to supplement the City’s $29M State Revolving Fund (SRF) loan to cover the increased costs of the project; and WHEREAS, at the May 19, 2025 City Council meeting, Gateway Pacific Contractors as the low bidder was awarded the construction contract for the Project; and WHEREAS, the City’s requested $6M SRF Loan Amendment was approved by SWRCB staff on May 30, 2025 and SWRCB staff advised staff to issue the Notice to Proceed with Construction to Gateway Pacific Contractors in parallel with SWRCB staff preparing the SFR Amendment agreement; and
WHEREAS, in addition to issuing the Notice to Proceed with Construction to Gateway Pacific Contractors for the Project, Staff recommends the City Council authorize the following Task Orders to support the construction of the Project; • Authorize Task Order #3 under a Master Service Agreement with Dudek Consulting for Design Support during construction in the amount of $1,342,037 including a contingency budget of $175,049 per their February 28, 2025 proposal.

Packet Pg. 161 Attachment: Resolution No. 2025-43 (3299 : Resolution No. 2025-43 Notice to Proceed with Gateway Pacific for IWWTF and Task Orders)

• Authorize Task Order #4 under a Master Service Agreement with MNS Engineers for Construction Management and Inspection in the amount of $2,485,223 including a contingency budget of $173,387 per their February 25, 2025 proposal.

NOW THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of Gonzales hereby authorizes the City Manager to:
• Issue a Notice to Proceed with Construction to Gateway Pacific Contractors for the Industrial Wastewater Treatment Facility.
• Execute Task Order #3 under a Master Service Agreement with Dudek Consulting for Design Support during construction in the amount of $1,342,037 including a contingency budget of $175,049 per their February 28, 2025 letter proposal. • Execute Task Order #4 under a Master Service Agreement with MNS Engineers for Construction Management and Inspection in the amount of $2,485,223 including a contingency budget of $173,387 per their February 25, 2025 letter proposal.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 16th day of June 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, the Honorable Mayor
ATTEST:
__________________________
Mary Villegas, Deputy City Clerk
Packet Pg. 162 Attachment: Resolution No. 2025-43 (3299 : Resolution No. 2025-43 Notice to Proceed with Gateway Pacific for IWWTF and Task Orders) Small town, big heart! ~ ¡Pueblo chico, corazón grande! 147 Fourth Street · PO Box 647,Gonzales, CA 93926 · Phone: (831) 675-5000 · Fax: (831) 675-2644 https://gonzalesca.gov/
City of Gonzales
Council Member Scott Funk, Council Member Lorraine Worthy, Council Member Maria Orozco Mayor Jose L. Rios, Mayor Pro Tem Liz Silva, City Manager Carmen Gil June 17, 2025 via email
Evan Lundin, President
Gateway Pacific Contractors, Inc.
8055 Freeport Blvd
Sacramento, CA 95832
Subject: Industrial Wastewater Treatment Facility - Notice to Proceed with Construction You are notified that the Contract Time forthe above project will commence on July 1, 2025. You are to start performing your obligations pursuant to the Contract Documents.

Prior to the Notice to Proceed, a pre-construction conference will be held at the City offices to discuss the scope of work, Contract drawings, Specifications, existing conditions, materials to be ordered, equipment to be used, and all essential matters pertaining to the prosecution of and the satisfactory completion of the project as required. The Contractor’s representative at this conference shall include all major superintendentsfor the work and may include major Subcontractors.

We look forward to working with your company to deliver this important civic facility. Contact me with any comments or questions at [email protected] or (831) 675-5000.

Sincerely,
Patrick M. Dobbins
Public Works Director/City Engineer
Copy to: Megan Panofsky, Construction Manager
Kate Palmer, Design Manager
Project File
Packet Pg. 163 Attachment: Notice to Proceed with Construction to Gateway Pacific Contractors (3299 : Resolution No. 2025-43 Notice to Proceed with Task Order No. 3 to Consulting Services Agreement Between City of Gonzales and Dudek Consulting for Design Support Services This is an Amendment to the Consulting Services Agreement dated June 17, 2024 between the City of Gonzales, a municipal corporation of the State of California ("City") and Dudek ("Consultant”) for Wastewater Design Services.

City and Consultant agree to the following changes to the Agreement:

Section 1 - Services
Services will now include Design Support Services during Construction of the Industrial Wastewater Treatment Facility as outlined in Dudek’s February 28, 2025 letter proposal (copy attached).

Section 2 - Compensation
City will pay Consultant an additional sum of $1,342,037 on an hourly not-to-exceed basis.

In all other respects, the terms of the Agreement shall remain in effect.

CITY CONSULTANT
City of Gonzales, a municipal corporation Dudek
_____________________________ _____________________________ Carmen Gil, City Manager Mike Metts, Principal
Date Signed: __________________ Date Signed: __________________ June 10, 2025 Packet Pg. 164 Attachment: Task Order #3 with Dudek for Design Support Services (3299 : Resolution No. 2025-43 Notice to Proceed with Gateway Pacific for February 28, 2025
Patrick Dobbins, PE
City of Gonzales
[email protected]
Subject: Proposal for Engineering Support Services During Construction for Industrial Wastewater Treatment Facility Project
Dear Patrick Dobbins:

We are pleased to provide this proposal for engineering support services during construction (ESDC) for the Industrial Wastewater Treatment Facility (IWTF) project. Included in this proposal are the following sections:

1. General Information, providing general information and primary point of contact

2. Project Understanding and Approach, describing project background and objectives

3. Scope of Work, defining specific work elements

4. Fee Proposal, quantifying our anticipated level of effort Our proposal demonstrates our thorough understanding of your project goals and offers a comprehensive approach and dedicated project team for its successful completion. 1 General Information
The Dudek team presented within this proposal has the resources to perform the work required for each of the Project Tasks, as included in the Project Scope of Work. Tasks to be completed by subcontractors are also defined in the Scope of Work. Subcontractors are the same as utilized during the design phases of the project. The primary point of contact for proposal and project correspondence is Kate Palmer, P.E., Principal Engineer, available at 760.479.4160 and [email protected].
2 Project Understanding and Approach
The final design bid documents were completed by the Dudek team and advertised for bidding for the City of Gonzales (City) Industrial Wastewater Treatment Facility. Bidding of the project was completed on February 26, 2025.

Packet Pg. 165 Attachment: Task Order #3 with Dudek for Design Support Services (3299 : Resolution No. 2025-43 Notice to Proceed with Gateway Pacific for TO: PATRICK DOBBINS
SUBJECT: PROPOSAL FOR ENGINEERING SUPPORT SERVICES DURING CONSTRUCTION FOR INDUSTRIAL

WASTEWATER TREATMENT FACILITY
FEBRRUARY 2025 2
Following review of the bids and confirmation of the lowest responsive and qualified contractor, construction is expected to start in June 2025 (assumes NTP March 2025).

As Engineer of Record (EOR), Dudek understands the full scope of project construction activities for the project.

Supply chain issues may continue to impact the ability of the contractor to successfully complete construction within the anticipated contract duration. To assist in successful completion of the contract within the contract duration, Dudek will work with the City to prioritize submittal review of materials with the longest lead times, thereby allowing those to be ordered as soon as possible. These specific topics and any other critical path items may be discussed at the kick-off meeting to collaborate on potential solutions and mitigate potential delays. 3 Scope of Services
Dudek will follow the detailed scope of work tasks outlined below. In preparation, Dudek assumes that the City will employ the services of a construction management (CM) team that will provide field staff to the construction site daily, and thus we have not included scope/hours for a daily onsite presence. Use of a CM will assure constant communication between the contractor, the City and EOR, as well as assure smoother completion of construction activities. Dudek assumes that environmental monitoring services (i.e., cultural monitoring) will be provided under separate contract.

In accordance with the City’s request, Dudek proposes to provide the following services:

IWTF Engineering Services During Construction
TASK 1 PROJECT MANAGEMENT
Dudek will conduct effective project administration and management including the preparation and distribution of monthly progress reports including progress to date, potential completion issues, and anticipated next steps in progress. Progress reports will also include budget status and project schedule updates. Dudek is providing budget on this item based on a thirty (30) month project duration.

Task 1 Deliverables:
• (30) Progress Reports
TASK 2 ENGINEERING SERVICES DURING CONSTRUCTION
Task 2.1 Pre-Construction Meeting
Dudek will attend the Pre-Construction Meeting, which is assumed to occur at the City offices. The meeting is assumed to be conducted by the City’s Construction Manager. This task also includes finalization of conformed documents.

Packet Pg. 166 Attachment: Task Order #3 with Dudek for Design Support Services (3299 : Resolution No. 2025-43 Notice to Proceed with Gateway Pacific for TO: PATRICK DOBBINS
SUBJECT: PROPOSAL FOR ENGINEERING SUPPORT SERVICES DURING CONSTRUCTION FOR INDUSTRIAL

WASTEWATER TREATMENT FACILITY
FEBRRUARY 2025 3
Task 2.1 Deliverables:
• Conformed Documents (PDF)
Task 2.2 RFIs and Design Clarifications
Dudek will provide RFI and Design Clarifications for the project that include:
a. Provide responses for up to one hundred eighty-five (185) requests for information (RFIs) and/or requests for clarification (RFCs). At the City’s discretion, the Dudek team will provide responses to RFIs and RFCs in letter form or e-mail form. Dudek anticipates the following RFIs. o (100) Civil and Mechanical
o (30) Architectural
o (50) Electrical
o (20) Structural
b. Dudek assumes RFIs from the Contractor will be formally submitted to the Construction Manager.

Questions requiring responses from the design team will be forwarded to the Dudek Project Manager for distribution and response.

Task 2.2 Deliverables:
• (185) RFI Responses
Task 2.3 Shop Drawings and Submittal Reviews
Dudek will provide shop drawings and submittal review to include:
a. Review and process up to two hundred seventy-five (275) shop drawings and submittals and up to one hundred (100) resubmittals. Dudek anticipates the following submittals. o (150) Civil and Mechanical
o (50) Architectural
o (50) Electrical
o (25) Structural
b. Dudek assumes submittals and shop drawings from the Contractor will be formally submitted to the Construction Manager who will forward to the Dudek Project Manager for distribution and response Task 2,3 Deliverables:
• (275) Submittal Responses
• (100) Resubmittal Responses
Task 2.4 Site Visits / Onsite Construction Meetings
Dudek will attend onsite construction meetings and site visits at City request to observe specific conditions or situations for which design engineer input would facilitate developing an appropriate response to the Contractor.

We have assumed a total of twelve (12) onsite construction meetings and four (4) site visits by one or more Packet Pg. 167 Attachment: Task Order #3 with Dudek for Design Support Services (3299 : Resolution No. 2025-43 Notice to Proceed with Gateway Pacific for TO: PATRICK DOBBINS
SUBJECT: PROPOSAL FOR ENGINEERING SUPPORT SERVICES DURING CONSTRUCTION FOR INDUSTRIAL

WASTEWATER TREATMENT FACILITY
FEBRRUARY 2025 4
members of the design team. Structural engineer (Kelsey Structural) will attend up to two (2) on-site construction meetings. Electrical engineer (DTN) will attend up to five (5) on-site construction meetings and four (4) separate site visits. Architect (MBN) will attend one (1) site visit.

Kelsey Structural, will perform a maximum of six (6) structural observations during construction per California Building Code requirements to verify general conformance with the contract documents. A written structural observation report will be provided with comments and action items to be addressed by the Contractor.

Suggested observations would occur at the following construction milestones:
• Prior to cast-in-place concrete pours to observe dimensioning, rebar placement, waterstops, embedments, etc.
• Prior to CMU wall grouting to observe dimensioning, rebar placement, embedments, etc. • During structural steel erection to observe dimensioning, member sizing, bolting, welding, etc.

Task 2.8 Deliverables:
• (4) Field Notes
• Structural Observations Report
Task 2.5 Construction Progress Meetings
Dudek will attend weekly construction progress meetings virtually throughout the duration of the project. Dudek attendance/participation at one hundred four (104) meetings is included. Dudek attendance includes the Dudek project manager and the appropriate team member(s) based on the issue(s) being discussed. Dudek assumes weekly construction meetings will be organized and documented by the Construction Manager. Kelsey Structural will participate in a maximum of eight (8) virtual construction meetings. DTN will participate in up to twelve (12) virtual construction meetings. MBN will participate in up to nine (9) virtual construction meetings.

Task 2.6 Change Order Assistance
Dudek will assist City staff on change order reviews. We are allocating budget to be used for up to fifteen (15) change order reviews at the request and direction of the City. It is assumed that the Construction Manager will prepare, and review construction change orders, and Dudek will assist, as necessary and requested. Kelsey Structural will review and respond to a maximum of one (1) change order related to structural work. DTN will review and respond to up to fifteen (15) change orders related to electrical work. MBN will review and assist with up to one (1) change order related to architecture / HVAC / plumbing work.

Task 2.7 Design Deviation Review
Dudek will assist the City with evaluation of Contractor-proposed design deviations and substitutions to support the activities of the Construction Manager. Dudek will evaluate the proposed design changes relative to consistency with the original design intention and capability. As the extent and nature of any Contractor-proposed design deviations are currently undefined, an allowance is assumed for this contract item. Services will be provided at City direction within the available allowance.

Packet Pg. 168 Attachment: Task Order #3 with Dudek for Design Support Services (3299 : Resolution No. 2025-43 Notice to Proceed with Gateway Pacific for TO: PATRICK DOBBINS
SUBJECT: PROPOSAL FOR ENGINEERING SUPPORT SERVICES DURING CONSTRUCTION FOR INDUSTRIAL

WASTEWATER TREATMENT FACILITY
FEBRRUARY 2025 5
Task 2.8 Construction Punch List Assistance
Dudek will assist the Construction Manager with punch list resolution including the following:
a. One or more members of the Dudek Team joining the Construction Manager and/or City staff on walkthroughs to confirm that the work was constructed per the design documents, and if not, what could be done to resolve observed deficiencies.
b. As the extent and nature of the Punch List is currently undefined, an allowance is assumed for this contract item. Services will be provided at City direction within the available allowance.

Task 2.9 Deliverables:
• Construction Punch List Field Notes
Task 2.9 Record Drawing Preparation
Dudek will provide assistance to the City for preparation of record drawings:
a. Following construction, Dudek will prepare a complete set of record drawings. b. The drawings will be prepared based on field changes and redlines documented by the Construction Manager and the Contractor, and changes resulting from RFIs, clarifications and contract change orders. c. Dudek will provide electronic files (PDF and AutoCAD) of the revisions. Dudek will provide the files in electronic format only (including PDF and AutoCAD formats) and no hard copies are included.

Task 2.10 Deliverables:
• Record (as-built) Drawings (PDF and .dwg)
Assumptions

1. Change Order Support – Engineering support for change orders is limited to evaluation of design-related impacts and does not include negotiation on behalf of the owner.

2. Design Deviation Reviews – Only deviations that impact the approved design will be reviewed; minor changes that do not affect performance or compliance are assumed to be managed by the construction manager.

3. Record Drawing Preparation – Record drawings will be based on contractor-provided redlines and field verification during final site visits.

4. Final Inspection and Punch List – The punch list review will be performed once substantial completion is achieved and will not include contractor supervision for corrective work.

Exclusions

1. Construction Management – Full-time onsite construction management and inspection services are not included.

2. Quality Control/Testing – Field testing, quality control, and materials testing are excluded.

Packet Pg. 169 Attachment: Task Order #3 with Dudek for Design Support Services (3299 : Resolution No. 2025-43 Notice to Proceed with Gateway Pacific for TO: PATRICK DOBBINS
SUBJECT: PROPOSAL FOR ENGINEERING SUPPORT SERVICES DURING CONSTRUCTION FOR INDUSTRIAL

WASTEWATER TREATMENT FACILITY
FEBRRUARY 2025 6

3. Third-Party Surveys – Surveying, staking, or as-built verification by the engineer is excluded.

4. Record Drawing Verification – The engineer will not independently verify as-built conditions beyond provided contractor markups.

5. Safety Compliance – The engineer is not responsible for site safety, OSHA compliance, or contractor worksite conditions.

6. Operations & Maintenance – Development of O&M manuals, startup assistance, and training for plant operators are not included.

7. Post-Construction Support – Services beyond the final completion phase, including warranty period support or troubleshooting operational issues, are excluded unless otherwise agreed upon. 4 Fee Proposal
Dudek proposes a not-to-exceed project budget of $1,342,037 considering a 15% contingency as requested by the City for completion of the above Tasks 1 through 2 for the Industrial Wastewater Treatment Facility Project.

Full breakdowns of estimated labor hours by category for each task are attached.

We look forward to continuing our work on this project with you and the City and to providing the services described herein. Please do not hesitate to call or email me (760.479.4160 or [email protected]) with any questions you might have about our proposal.

Respectfully Submitted,
__________________________________ __________________________________ D. Michael Metts, P.E. Kate Palmer, P.E.

Chief Engineer Principal Engineer
D. Michael Metts is authorized to sign on behalf of Dudek.

Packet Pg. 170 Attachment: Task Order #3 with Dudek for Design Support Services (3299 : Resolution No. 2025-43 Notice to Proceed with Gateway Pacific for City of Gonzales
Industrial Wastewater Treatment FacilityEngineering Services During Construction (ESDC) DUDEK FEE ESTIMATEFebruary 28, 2025
Project Team Role: QA/QC
Program
Manager IWTF Manager
Senior
Engineer
Project
Engineer
Electrical
Engineer CAD Designer Admin
Team Member: Metts Palmer Deibert
Tran
Diaz
Chuang
Dhanens Schneider Hunter Kinney TOTAL

DUDEK DUDEK LABOR OTHER DIRECT
Billable Rate : $320 $290 $275 $250 $230 $290 $200 $160 HOURS COSTS Hours Fee Hours Fee Hours Fee COSTS TOTAL FEE Task 1 Project Management
1 Project Management 24 180 80 80 364 $ 94,680 364 $ 94,680 Subtotal Task 1 24 180 80 80 364 $ 94,680 364 $ - $ 94,680 Task 2 Engineering Services During Construction (ESDC)

2.1 Pre-Construction Meeting / Conformed Documents 24 24 60 40 148 $ 34,400 $ - $ 60 - $ 13,690 208 $ 5,000 $ 53,090

2.2 RFIs and Design Clarifications (assume 185 RFIs) 20 200 200 120 16 556 $ 143,640 30 $ 6,509 31 $ 7,050 66 $ 17,296 683 $ 174,495

2.3 Shop Drawings and Submittal Reviews (assume 275 Submittals/100 Resubmittals) 40 225 300 300 40 905 $ 230,275 85 $ 18,285 139 $ 29,257 320 $ 86,940 1449 $ 364,757

2.4 Site Visits / Onsite Meetings 8 80 50 72 210 $ 53,620 44 $ 9,798 28 $ 7,629 80 $ 28,819 362 $ 20,000 $ 119,866

2.5 Construction Progress Meetings (Assume 104 virtual meetings) 4 24 104 104 236 $ 62,840 8 $ 1,932 9 $ 2,031 40 $ 12,972 293 $ 79,775

2.6 Change Order Assistance (assume 15 change orders) 16 60 60 60 196 $ 50,420 20 $ 4,002 2 $ 44 453 $ 12,696 262 $ 67,571

2.7 Design Deviation Review 4 32 40 40 4 80 200 $ 46,440 8 $ 1,840 9 $ 2,029 80 $ 19,826 297 $ 70,135

2.8 Construction Punch List Assistance 12 16 18 46 $ 11,440 4 $ 36 920 $ 8,632 46 $ 12,006 132 $ 2,500 $ 35,498

2.9 Record Drawing Preparation 2 8 40 40 24 220 334 $ 73,000 26 $ 4,922 31 $ 108 4,471 $ 19,729 499 $ 5,000 $ 107,123 Subtotal Task 2 94 24 745 834 710 84 340 2831 $ 706,075 225 $ 48,208 285 $ 61,551 844 $ 223,974 4185 $ 32,500 $ 1,072,308 Total Non-Optional Hours and Fee 118 204 825 834 710 84 340 80 3195 800,755 $ 225 $ 48,208 285 $ 61,551 844 223,974 $ 4549 $ 32,500 $ 1,166,988 Percent of Hours: 4% 6% 26% 26% 22% 3% 11% 3% 100% Contingency $1,342,037

TOTAL HOURS
Structural Engineering
Kelsey Structural
HVAC, Plumbing, and
Architectural
MBN
Electrical Engineering
DTN
Subconsultant Fees
Packet Pg. 171
Attachment: Task Order #3 with Dudek for Design Support Services (3299 : Resolution No. 2025-43 Notice to Proceed with Gateway Pacific for Task Order No. 4 to Consulting Services Agreement Between City of Gonzales and MNS Engineers for Program and Construction Management Services for Wastewater Projects
This is an Amendment to the Consulting Services Agreement dated March 18, 2024 between the City of Gonzales, a municipal corporation of the State of California ("City") and MNS Engineers ("Consultant”) for Program and Construction Management Services for Wastewater Projects.

City and Consultant agree to the following changes to the Agreement:

Section 1 - Services
Services will now include Construction Management and Inspection Services during construction of the Industrial Wastewater Treatment Facility as outlined in MNS Engineers’ February 25, 2025 letter proposal (copy attached).

Section 2 - Compensation
City will pay Consultant an additional sum of $2,485,223 on an hourly not-to-exceed basis.

In all other respects, the terms of the Agreement shall remain in effect.

CITY CONSULTANT
City of Gonzales, a municipal corporation MNS Engineers _____________________________ _____________________________ Carmen Gil, City Manager Joe Pope, Vice President of Construction

Date Signed: __________________ Date Signed: __________________ 6/10/2025 Packet Pg. 172 Attachment: Task Order #4 with MNS Engineers for Construction Management/ Inspection Services (3299 : Resolution No. 2025-43 Notice to 811 El Capitan Way, Suite 130 | San Luis Obispo, CA 93401 805.787.0326 OFFICE
mnsengineers.com
February 25, 2025
Patrick M. Dobbins, PE
Public Works Director/City Engineer
PO Box 647
147 Fourth Street
Gonzales, CA 93926
SUBJECT: Proposal for Construction Management and Inspection Services – Industrial Wastewater Treatment Facility Project
Dear Mr. Dobbins,
MNS Engineers, Inc. (MNS) appreciates the opportunity to submit this proposal to provide construction management and inspection services for the Industrial Wastewater Treatment Facility Project (Project) for the City of Gonzales (City). We offer our highly qualified team to provide services for this Project.

Project Understanding
The City has requested a proposal to provide construction management and inspection services for the construction of a new industrial treatment facility which will be able to treat up to 1 million gallon per day (MGD).

MNS’s extensive experience with treatment plant construction makes us well qualified to provide construction management and inspection of the proposed improvements.

Scope of Work
MNS staff will support the City by providing construction management and daily fulltime inspection in accordance with the contract documents for the Industrial Wastewater Treatment Facility project per the following tasks.

Task 1 – Pre-Construction
Subtask 1.1: Pre-Construction Conference
MNS will organize and conduct a pre-construction meeting. The Construction Manager (CM) will prepare and distribute an agenda prior to the meeting. At the pre-construction conference, we will discuss the roles and responsibilities of the Project team (City, Design Engineer, Construction Manager, Materials Testing/Special Inspection, Contractor, etc.) as well as establish the protocol to be used throughout the project. The meeting will set the tone of cooperation for the project and elaborate on contract requirements and concerns. MNS will distribute meeting minutes to all parties in attendance.

MNS DETAILS

LEGAL NAME
MNS Engineers, Inc.

FIRM OWNERSHIP
TYPE
C-Corporation

YEAR FIRM

ESTABLISHED
1962

CALIFORNIA

DEPARTMENT OF

INDUSTRIAL

RELATIONS
DIR No. 1000003564

CORPORATE OFFICE
201 N. Calle Cesar Chavez,
Suite 300
Santa Barbara, CA 93103
805.692.6921 Office/Fax
mnsengineers.com

LOCAL OFFICE
811 El Capitan Way #130, San
Luis Obispo, CA 93401
(805) 787-0326

PROJECT CONTACT
Megan Panofsky, PE, CCM
Construction Manager
(805) 331-4860
[email protected]

AUTHORIZED

SIGNATURE
Joe Pope, PE
Vice-President and Prinicipal
Construction Manager
(805) 302-1624
[email protected]
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Subtask 1.2: Contract Administration/Document Control
MNS will utilize CMIS, an electronic administration system to assure all elements of the actual construction are furnished, installed, and constructed in accordance with the contract documents and applicable standards, providing organization of files and computer-generated forms and spreadsheets to assist in tracking correspondence, submittals, requests for information (RFIs), contract change orders (CCOs), and progress payments. Contract administration includes:
• Daily diaries
• Labor compliance and certified payrolls
• Logs for submittals, RFIs, CCOs, and materials testing results • Correspondence, permits, and agreements
• Progress schedule/Weekly Statement of Working Days (WSWDs) • Progress pay estimates and quantities
• Potential claims
• Safety and traffic control
• Material verification
• Weekly meetings agenda and minutes
Subtask 1.3: Site Documentation
MNS will take pre-construction site photos to document the existing condition of the Project limits prior to construction. MNS will document construction throughout the life of the Project. Photos will be logged and filed in the Project files.

Task 2 –Construction
Subtask 2.1: Project Communication and Coordination
The CM will oversee project communication and coordination between the City, Design Engineer, residents, and contractor throughout the construction phase. Weekly updates will be provided to the City, specifically identifying anticipated public impacts for the upcoming week. Progress meetings will be held weekly. The CM will distribute an agenda prior to the meeting and record meeting minutes.

Subtask 2.1: Project Schedule Adherence
The CM will review and approve the contractor’s baseline schedule at the start of the Project. The CM will require and review three-week-look-ahead schedules from the contractor on a weekly basis. The contractor will be issued weekly summary of working days (WSWDs) to document the progress of the work and the number of working days expended.

Subtask 2.3: Cost Control
The Project’s document control system will track and monitor the actual Project construction costs. The tracking of contract item payments and quantities is incorporated into the progress payment spreadsheet.

Contract change order (CCO) payments, extra work, and item overruns and underruns will also be tracked.

The project contingency balance will be verified as part of the monthly progress pay estimate review and submittal.

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Subtask 2.4: Progress Pay Estimate
MNS will track each contract item and review the quantity to be paid for each progress pay estimate. The Construction Inspector will track any extra work and supplemental work costs to be compared against the authorized change order amounts. We will review the contractor’s monthly request for payment and recommend approval for payment to the City.

Subtask 2.5: Submittals/RFIs
MNS will perform a timely review of submittals and RFIs; all submittals and RFIs will be reviewed for completeness, logged, and distributed as appropriate. MNS will monitor the log to verify responses are submitted in a timely manner.

Subtask 2.6: CCO and Claims Management
Prior to beginning any contract work, we will coordinate with the City to define the CCO process. All CCOs must define the project scope of work and limits and comply with the project documents. MNS will be proactive in identifying actual and potential problems and work towards a timely and cost-effective solution.

The CM will:
• Determine the validity and justification for all CCOs • Notify the City if CCOs are needed
• Negotiate costs with the contractor
• Prepare CCO documentation for City authorization
• Track all CCOs against project contingency balance
The CM will work closely with the City, Design Engineer, and the contractor to resolve CCOs and/or disputes.

Subtask 2.7: Construction Inspection
The Construction Inspector will be onsite daily to observe the work with the goal of verifying it is performed safely and in accordance with the contract documents. The Construction Inspector’s responsibilities will also include:
• Daily Inspection. Inspect the construction for compliance with the plans and specifications. • Quality Assurance. Assure the contractor’s overall Quality Control (QC) is implemented in a manner consistent with the Projects’ Special Provisions.
• Daily Reports. Prepare daily inspection reports, daily quantities, note any safety issues, and include an accurate description of the work, labor, and equipment. Note any extra work or changes to the plans. Maintain photographic record of construction.
• Materials. Verify approved materials are incorporated into the project. • Acceptance/Performance Testing. Coordinate acceptance and performance testing in conformance with the contract documents.
• Materials Testing/Special Inspection. Coordinate with the Materials Testing and Special Inspection firm as needed and will maintain testing records with current tester and laboratory certifications placed in the construction file.
• Punch List. Prepare punch list and inspect for completion of punch list work items.

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Subtask 2.8: Safety
The contractor has sole responsibility for compliance with safety requirements on the construction contract, but MNS will monitor compliance with their safety program and advise the City of observed deficiencies. The contractor’s Safety Plan, Traffic Control Plan, and Cal/OSHA Construction Safety Orders will guide our inspectors in monitoring the contractor’s work.

Subtask 2.9: Permit Management
MNS will monitor the construction to ensure all items of work are performed in accordance with building permits, environmental, and stormwater pollution control requirements.

Subtask 2.10: Commissioning
MNS will oversee the start-up, seeding, and commissioning of the treatment plant. MNS’ inspector will also ensure proper notification is provided to industrial users prior to service swap over.

Subtask 2.11: Final Punchlist
The CM/Inspector will prepare and submit a final punch list of outstanding contract items to the contractor.

MNS will conduct a final inspection in the presence of the City representatives and the contractor.

Subtask 2.12: Red Line As-Builts
MNS will track and maintain as-built drawings in accordance with the contract requirements and ensure they are complete to the extent feasible. The CM will hold regular meetings with the contractor to monitor the status of the as-built drawing set, which is often made a contingency for approval of the monthly pay request.

The inspector will also keep a field set of as-built drawings for use in reviewing the contractor’s copy.

Task 3 – Project Closeout
Subtask 3.1: Closeout
Once the contractor provides the required documentation, MNS will submit an acceptance recommendation report with the final pay request for payment. MNS will submit job files and final reports to the City upon completion of the contract.

Project Team
Our highly qualified project team is available to provide the City with high quality construction management, inspection, and quality assurance for a project delivered in accordance with the plans and specification. The following is the proposed CM team. Due to the complex, multi-disciplinary nature of the Project, we are proposing to utilize a full-time Resident Engineer and full-time Construction Inspector to support the project.

Project Manager/Construction Manager – Megan Panofksy, PE, CCM Ms. Panofsky will be responsible for overall construction management of the Project. Megan is a seasoned construction industry professional with 18 years of experience in the development and construction of municipal infrastructure, concentrating in water and wastewater facilities. Megan has served as a Design Engineer consultant for contractors and Owners, providing a unique ability to see projects from multiple perspectives and identify risks to successful project completion early in the process. She specializes in complete project delivery, construction management, program management, and contract management.

Resident Engineer – Alissa Kispersky, PE
Ms. Kispersky, has over 11 years of experience managing large, complex construction projects in the water resources industry. She brings hands-on experience from the field as an operator, as well as construction Packet Pg. 176 Attachment: Task Order #4 with MNS Engineers for Construction Management/ Inspection Services (3299 : Resolution No. 2025-43 Notice to

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management and engineering from every aspect of construction from cradle to grave, including planning, budgeting, scheduling, design, construction, inspection, Quality Assurance, and operation/maintenance of facilities. As Resident Engineer, Alissa, will provide day to day coordination with the inspector and contractor, processing submittals, RFIs, pay applications, and escalating potential issues to the CM.

Construction Inspector – Chuck Littlejohn
Mr. Littlejohn has over 26 years of experience working in the construction industry with extensive field experience in underground utilities, Hot Mix Asphalt/PCC paving, retaining wall construction, drainage structure construction, managing soil erosion control measures, drafting non-compliance notices, facilitating labor compliance/interviews, implementing temporary traffic control, and monitoring of environmentally sensitive areas. He also possesses excellent leadership experience in construction meetings and coordination.

Office Engineer – Fina Auau
Ms. Auau has worked as a laborer, an office administrator for laborer crews, and Quality Control (QC) Inspector. As a QC construction inspector, Fina was responsible for verifying concrete tickets matched the submittals, logging and reporting testing results, inspecting third party field technicians testing procedures to ensure compliance, and compiling data sheets for the QC team as well as writing QC reports for the document control team. As the Labor Compliance Officer for the Project, she will review certified payroll to verify the contractor and their subcontractors have complied with the California Department of Industrial Relations (DIR) requirements about certified payroll verification and submission. She will also conduct field surveys of the contractor's staff and subcontractors to ensure compliance with prevailing wage rate requirements. She will manage this process with the contractors providing that all required information is obtained and processed promptly.

Project Assistant
MNS plans to engage a local college student as a part-time intern during the summer months of the project.

This initiative aims to provide hands-on experience to a student with an interest in civil engineering, construction management, and wastewater treatment plant construction. Through its Internship Program, MNS seeks to contribute to the development of the future civil engineering workforce while allowing the intern to apply their knowledge and skills in support of the Project.

Materials Testing and Special Inspection – Pacific Crest Pacific Crest Engineering Inc. (PCEI) will be providing materials testing and special inspection on the project, specifically: compaction testing; rebar inspection; CM inspection; epoxy dowels inspection; and concrete and grout testing. PCEI is a full service geotechnical, chemical process and environmental engineering firm providing engineering services to both the public and private sectors of the Monterey Bay and Silicon Valley areas. PCEI’s field technicians are highly qualified and licensed and/or certified by numerous state and national agencies (i.e. NICET Soils Technician, ICC, etc).

Electrical,Instrumentation, and SCADA Special Inspection - Beacon West Energy Group Beacon West Energy Group will provide Electrical & Instrument (E&I) and SCADA Construction Monitoring for the project. Their scope includes reviewing electrical plans, monitoring construction activities, and ensuring compliance with contract requirements and the California Electrical Code. Over the construction period, they will conduct site visits to observe installations, verify contractor testing, and oversee commissioning. Their services ensure that all electrical, instrumentation, and SCADA work is completed to specification, functioning correctly, and ready for final acceptance.

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Project Schedule
MNS understands it is the intention of the City to be in construction by April 15, 2025. MNS has assumed a Notice to Proceed (NTP) date of April 1, 2025, and a construction period of 20 months.

Contract Award March 17, 2025
Insurance & Bonds March 17, 2025 – April 1, 2025
NTP April 1, 2025
Submittals/Procurement April 1, 2025 – May 1, 2025
Construction May 1, 2025 – Jan 15, 2027
Assumptions/Exclusions
• No nightwork, weekend, or holiday work is anticipated. • Full-time inspection is assumed over a 20-month period; however, the City will be billed on an hourly basis with a 4-hour minimum.

Compensation
A detailed fee spreadsheet is provided herein. All fees are in accordance with the 2025 MNS Standard Fee Schedule and escalation rate.

Closing
Thank you for the opportunity to submit this proposal. We are excited and look forward to working with the City. Please feel free to contact Megan Panofsky with any questions you may have at 805.331.4860 or [email protected]. Thank you for your consideration.

Sincerely,
MNS Engineers, Inc.

Joe Pope, PE
Vice President of Construction - Water
Attachments: MNS Standard Fee Schedule
Fee Estimate Spreadsheet
Packet Pg. 178 Attachment: Task Order #4 with MNS Engineers for Construction Management/ Inspection Services (3299 : Resolution No. 2025-43 Notice to 20 2 5 STANDARD SCHEDULE OF FEES

PROJECT/PROGRAM MANAGEMENT
Principal-In-Charge.............................. $375
Senior Project/Program Manager .....340
Project/Program Manager ...................290
Assistant Project/Program Manager 265
Senior Project Coordinator..................210
Project Coordinator................................175

ENGINEERING
Principal Engineer.................................$325 Lead Engineer........................................... 285 Supervising Engineer............................. 270
Senior Project Engineer ........................ 245
Project Engineer ...................................... 220 Associate Engineer ................................. 200 Assistant Engineer .................................. 185

SURVEYING
Principal Surveyor.................................$295 Lead Surveyor........................................... 285 Supervising Surveyor............................. 245
Senior Project Surveyor ........................ 220
Project Surveyor ...................................... 195 Associate Project Surveyor.................. 185
Assistant Project Surveyor................... 170
Party Chief (PW)....................................... 200 Chainperson (PW)................................... 170 One-Person Survey Crew (PW)........... 240

TECHNICAL SUPPORT
CADD Manager......................................$210
Supervising Technician ......................... 185
Senior Technician.................................... 175 Engineering Technician......................... 140

CONSTRUCTION MANAGEMENT
Principal Construction Manager......$355
Senior Construction Manager............ 305
Senior Resident Engineer..................... 295
Resident Engineer................................... 285 Structure Representative...................... 280
Construction Manager.......................... 245
Assistant Resident Engineer................ 225
Sr. Construction Inspector (PW) ....... 210
Construction Inspector (PW) ............. 195
Office Administrator .............................. 155

PLANNING
Planning Director..................................$250 City Planner/Planning Manager......... 230
Principal Planner...................................... 215 Senior Planner.......................................... 200 Associate Planner.................................... 170 Assistant Planner..................................... 140 Planning Technician............................... 120

ADMINISTRATIVE SUPPORT
Senior Management Analyst ............$210
Management Analyst ............................ 180
IT Technician............................................. 150 Graphics/Visualization Specialist....... 160
Administrative Assistant....................... 110

GOVERNMENT SERVICES
City Engineer ..........................................$280 Deputy City Engineer............................. 250
Assistant City Engineer ......................... 235
Plan Check Engineer.............................. 195
Permit Engineer....................................... 185 City Inspector ........................................... 175 Senior City Inspector (PW) ................. 210
City Inspector (PW)................................. 195 Principal Stormwater Specialist ......... 240
Senior Stormwater Specialist.............. 210
Stormwater Specialist............................ 180
Stormwater Technician ......................... 160
Building Official ....................................... 275 Senior Building Inspector..................... 210
Building Inspector................................... 185 Senior Grant Writer................................ 200 Grant Writer.............................................. 190 Associate Grant Writer.......................... 170
Assistant Grant Writer........................... 155

DIRECT EXPENSES
Use of outside consultants as well as copies, blueprints, survey stakes, monuments, computer plots, telephone, travel (out of area) and all similar charges directly connected with the work will be charged at cost plus fifteen percent (15%). Mileage will be charged at the current federal mileage reimbursement rate.

PREVAILING WAGE RATES
Rates shown with Prevailing Wage “(PW)” annotation are used for field work on projects subject to federal or state prevailing wage law and are subject to increases per DIR.

ANNUAL ESCALATION
Standard fee rates provided for each classification are subject to 5% annual escalation or the most recent US Bureau of Labor Statistics Consumer Price Index, whichever is higher.

OVERTIME
Overtime for non-exempt employees will be charged at 1.5 x hourly rate; overtime for exempt employees and other classifications will be charged at 1 x hourly rate.

Rev. 1/21/2025
Packet Pg. 179 Attachment: Task Order #4 with MNS Engineers for Construction Management/ Inspection Services (3299 : Resolution No. 2025-43 Notice to Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Submittals/Procurement
Construction
Project Closeout
Role Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Principal In-Charge 8 8 355 373 392 2,840 $
Senior Construction Manager 32 32 305 321 338 9,760 $
Resident Engineer 72 72 285 300 315 20,520 $
Senior Inspector 32 32 210 221 233 6,720 $
Office Administrator 32 32 155 163 172 4,960 $
0 0 0 176 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 176 44,800 $ Principal In-Charge 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 80 355 373 392 29,264 $ Senior Construction Manager 48 48 24 24 16 16 16 16 16 16 16 16 16 16 16 16 16 16 24 24 416 305 321 338 130,208 $ Resident Engineer 160 160 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 160 160 3040 285 300 315 893,700 $ Senior Inspector 172 172 172 172 172 172 172 172 172 172 172 172 172 172 172 172 172 172 172 172 3440 210 221 233 745,104 $ Project Assistant 96 96 96 96 96 96 576 65 65 65 37,440 $ Office Administrator 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 400 155 163 172 63,920 $ 0 0 0 0 404 500 466 466 362 362 362 362 362 362 362 362 362 458 458 458 362 362 380 380 0 0 7952 1,899,636 $ Principal In-Charge 4 4 8 355 373 392 3,136 $
Senior Construction Manager 16 12 28 305 321 338 9,464 $ Resident Engineer 24 16 40 285 300 315 12,600 $
Senior Inspector 24 16 40 210 221 233 9,320 $
Office Administrator 24 16 40 155 163 172 6,880 $
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 92 64 156 41,400 $ 0 0 0 176 404 500 466 466 362 362 362 362 362 362 362 362 362 458 458 458 362 362 380 380 92 64 8284 1,985,836 $

SUBCONSULTANT
Materials Testing
Electrical & SCADA Inspection
CONSTRUCTION MANAGEMENT AND INSPECTION TOTALNotes:

1. Durations based on a 20 month construction period.2. Hours and costs are an estimate only; actual hours and costs will be based on contractor's schedule.

3. Overtime not included in this cost estimate. Any OT would be billed per MNS Standard Fee Schedule.4. Construction Inspector's rate subject to adjustment if DIR Prevailing Wage rates are applicable.5. Annual escalation of hourly rates applied at 5% starting Jan 20266. Subcontractor markup at 10% Construction Management and Inspection Services
Industrial Wastewater Treatment Plant
City of Gonzales

TOTAL COST
Staff
PHASE
Project Schedule
TOTAL
HOURS
Industrial WWTP
PHASE
2025 2026 2027
$ 2,311,836

TOTAL COST
SUBCONSULTANTS SUB-TOTAL $ 316,000
Pacific Crest $ 125,000
Beacon West $ 191,000
2025 2026

TOTAL COST
$ 10,000
2025 2026 2027
2027
$ 10,000
Direct Expenses

DIRECT EXPENSES SUB-TOTAL
TASK 1 Pre-Construction
Joe Pope
Field/Direct Costs

SUB-TOTAL
TOTALS
TASK 3 Project Closeout
Joe Pope

SUB-TOTAL
Chuck Littlejohn
Joe Pope

HOURLY RATE
Fina AuauFina Auau
Megan PanofskyMegan PanofskyMegan Panofsky

SUB-TOTAL
TASK 2 Construction
Chuck LittlejohnChuck Littlejohn
Alissa KisperskyAlissa KisperskyAlissa Kispersky
Fina Auau
TBD
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Attachment: Task Order #4 with MNS Engineers for Construction Management/ Inspection Services (3299 City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 16, 2025
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4

RECOMMENDATION
It is recommended that the City Council waive second reading, adopt and read by title only Ordinance No. 2025-150, Amending Chapter 4.70-Tobacco Licensing of Titlte 4-Business and License Regulations of the Gonzales City Code to Prohibit the Sale of all Flavored Tobacco Products and to Prohibit Single Use Electronic Smoking Products.

BACKGROUND
In 2019, the Gonzales City Council enacted Ordinance No. 2019-115 to establish a permitting system for tobacco retailers to ensure that retailers comply with tobacco control laws and business standards of the City to protect the public health, safety, and welfare of the residents of the City (Attachment 1, Chapter

4.70 Tobacco Licensing).

Senate Bill 793, upheld on November 8, 2022, prohibits a tobacco retailer from selling or possessing with intent to sell, flavored tobacco products. In a ruling issued on March 18, 2022, the Ninth Circuit Court of Appeals in R.J. Reynolds Tobacco Company et al v. County of Los Angeles, et al (9th Cir. 2022) 29 F.4th 542 held that the Family Smoking Prevention and Tobacco Control Act, codified at 21 USC §387 et seq., did not preempt a city from banning the sale of some or all tobacco products.

In addition to keeping up with tobacco control laws and business standards, this is one of the ordinances the City needs to complete to become Blue Zones Certified. Certification and intentional investment in community health and wellness helps us improve the quality of life of our residents.

AGENDA
ITEM
18 Packet Pg. 181

REVIEW AND ANALYSIS
Prohibiting tobacco retailers from selling flavored tobacco products will not unduly burden legitimate business activities of retailers who sell cigarettes or other tobacco products to adults. It will, however, allow the City to regulate the operation of lawful businesses to discourage violations of local laws by selling flavored tobacco products.

The City has a substantial interest in promoting compliance with federal, state, and local laws intended to regulate flavored tobacco product sales and use; in discouraging the illegal purchase of flavored tobacco products by minors; in promoting compliance with laws prohibiting sales of e-cigarettes and flavored tobacco products to minors; and finally, in protecting children from being lured into illegal activity through the misconduct of adults.

Ordinance No. 2025-150 (Attachment 2) is organized with recitals that tell the foundation, reasoning and need for the new legislation. Following the recitals, the draft ordinance introduces amended language, added language and a re-lettered sequence.

The City Council is encouraged to engage the attached Draft Ordinance and review in context with the present Tobacco Licensing regulations in place (Attachment 1- Chapter 4.70 Tobacco Licensing).

At the June 2, 2025, City Council meeting, a reading of Ordinance No. 2025-150 was waived and the ordinance was introduced and read by title only. The Ordinance is before the Council this evening for waiver of reading, adoption and reading by title only. A public hearing for comments concerning the proposed ordinance has been noticed for this evening in accordance with all legal requirements. (Attachment 3)
Explain the Recommendation and How it Supports the Vision Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.

Explain: In 2019, the Gonzales City Council enacted Ordinance 2019-115 to establish a permitting system for tobacco retailers to ensure that retailers comply with tobacco control laws and business standards of the City to protect the public health, safety, and welfare of the residents of the City. Prohibiting the sale of flavored tobacco products furthers these goals and objectives.

This ordinance also brings the City closer to Blue Zones Certification, which supports the community’s quality of life.

Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.

Explain: Promoting compliance with laws prohibiting sales of e-cigarettes and flavored tobacco products to minors, protects children from being lured into unhealthy habits.

City services will be delivered in a cost-effective, respectful, and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.

Explain: See Vision and Mission Statements above.

Packet Pg. 182
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation Yes No X N/A
• Environment X Yes No N/A
• Education Yes No X N/A
Explain: See above.

ALTERNATIVES
Since this is one of the final steps to becoming Blue Zones Certified, not adopting will prevent us from becoming a certified “Blue Zones Certified Community."

FISCAL IMPACT
There is no anticipated budget impact caused by the adoption of Ordinance No. 2025-150.

CONCLUSION
It is recommended that the City Council waive second reading, adopt and read by title only Ordinance No. 2025-150, Amending Chapter 4.70-Tobacco Licensing of Titlte 4-Business and License Regulations of the Gonzales City Code to Prohibit the Sale of all Flavored Tobacco Products and to Prohibit Single Use Electronic Smoking Products.

Attachments:

1. Public Notice

2. Chapter 4.70 Tobacco Regulations

3. Ordinance No. 2025-150 Amending Tobacco Lic
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Packet Pg. 184 Attachment: Public Notice (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) CHAPTER 4.70

TOBACCO LICENSING
SECTION:

4.70.010: Purpose And Application

4.70.020: Definitions

4.70.030: Mandatory License

4.70.040: Issuance Of License

4.70.050: Applications For License

4.70.060: Issuance Of A License

4.70.070: License Renewal And Expiration

4.70.080: License Nontransferable

4.70.090: Inspections, Investigations And Enforcement

4.70.100: Suspension Or Revocation Of License

4.70.110: Penalties For Tobacco Retailing Without A License

4.70.120: Department Decision

4.70.130: Appeal Procedures

4.70.140: Other Penalties

4.70.150: Stipulated Fine In Lieu Of Hearing

4.70.160: Severability

4.70.010 PURPOSE AND APPLICATION:

A. In promoting the health, safety, and general welfare of its residents, the city has a substantial interest in encouraging compliance with federal, state, and local laws regulating tobacco sales and use.

B. State law permits local governments to enact ordinances regarding the local licensing of retailers of tobacco and allows for the suspension or revocation of a local license for a violation of any state tobacco control law.
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https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 1/12 Packet Pg. 185 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) C. This chapter is adopted to: (1) ensure compliance with business standards and practices of the city and Monterey County; (2) to encourage responsible retailing of tobacco; and (3) to discourage violations of tobacco-related laws, but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or otherwise regulated. (Ord. 2019- 115, 11-4-2019)

4.70.020 DEFINITIONS:

For the purpose of this chapter, the following words and terms shall have the following meaning:

A. "Department" refers to any city department designated by the city manager to administer and/or enforce the provisions of this chapter or, if so designated by the city manager, the Monterey County health department or other county department, and employees thereof.

B. "Drug paraphernalia" shall have the definitions set forth in California Health and Safety Code section 11014.5, as that section may be amended from time to time.

C. "License" means a tobacco retailer license issued by the city, or, if designated, by the county pursuant to this chapter.

D. "Licensee" means any proprietor holding a license issued by the city, or, if designated, by the county pursuant to this chapter.

E. "License fee" means the charge established by resolution of the city council, calculated to recover the reasonable regulatory costs of issuing and administering licenses, retailer education, performing investigations, inspections, and the administrative enforcement and adjudication thereof.

F. "Person" means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity.

G. "Proprietor" means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent (10%) or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have or share ultimate control over the day-to-day operations of a business.

H. "Tobacco paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed or used for the smoking or ingestion of tobacco products.

I. "Tobacco product" means any substance containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco, hookah tobacco, snuff, chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco, and any product or formulation of matter containing biologically 5/2/25, 12:31 PM Print Preview
https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 2/12 Packet Pg. 186 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) active amounts of nicotine that is product or matter will be introduced into the human body, but does not include any product specifically approved by the United States Food and Drug Administration for use in treating nicotine or tobacco product dependence.

J. "Tobacco retailer" means any person who engages in tobacco retailing.

K. "Tobacco retailing" means selling, offering for sale, exchanging, or offering to exchange for any form of consideration tobacco, tobacco products, or tobacco paraphernalia without regard to the quantity sold, offered for sale, exchanged, or offered for exchange. (Ord. 2019-115, 11-4-2019)

4.70.030 MANDATORY LICENSE:

A. Any person who is or intends to become a tobacco retailer shall obtain pursuant to this chapter a license for each fixed location at which tobacco retailing is to occur.

B. Any person who is a tobacco retailer as of the effective date of the ordinance enacting this chapter shall obtain a license within ninety (90) days of the effective date of the ordinance that enacted this chapter.

C. Any person who intends to act as a tobacco retailer shall obtain a license prior to acting as a tobacco retailer.

D. Each license shall be prominently displayed in a publicly visible location at the licensed location.

E. Nothing in this chapter shall be construed to grant any licensee any status or right other than to act as a tobacco retailer at the location identified on the face of the license, subject to compliance with all other applicable laws, regulations, or ordinances.

F. Nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law. (Ord. 2019-115, 11-4-2019)

4.70.040 ISSUANCE OF LICENSE:

A. No license shall be issued to authorize tobacco retailing at other than a fixed business location. It is unlawful for any person to engage in tobacco retailing at nonfixed locations. For example, tobacco retailing by persons on foot and tobacco retailing from vehicles are prohibited.

B. No license shall be issued to authorize tobacco retailing at a temporary or recurring temporary event. For example, tobacco retailing at flea markets and farmers’ markets is prohibited.

C. No license shall be issued to authorize tobacco retailing at any location for which a license suspension is in effect or during a period of ineligibility following a revocation pursuant to section

4.70.100.
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https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 3/12 Packet Pg. 187 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) D. In the course of tobacco retailing or in the operation of the business or maintenance of the location for which a license issued, it shall be a violation of this chapter for a licensee, or any of the licensee’s agents or employees, to violate any local, state, or federal law applicable to tobacco products, tobacco paraphernalia, or tobacco retailing.

E. No person engaged in tobacco retailing shall sell or transfer a tobacco product or tobacco paraphernalia to another person who appears to be under the age of twenty seven (27) years without first examining the identification of the recipient to confirm that the recipient is at least the minimum age under state law to purchase and possess the tobacco product or tobacco paraphernalia.

F. No person who is younger than the minimum age established by state law for the purchase or possession of tobacco products shall engage in tobacco retailing. (Ord. 2019-115, 11-4-2019)

4.70.050 APPLICATIONS FOR LICENSE:

All applications for a license shall be submitted to the department in the name of each proprietor proposing to conduct tobacco retailing and signed by each prospective proprietor or an authorized agent. Each license application must be accompanied by the required license fee, which is set by resolution of the city council. A proprietor proposing to conduct tobacco retailing at more than one location shall submit a separate application for each location. Every application shall be submitted on a form supplied by the department and shall contain the following information:

A. The name, address, and telephone number of each prospective proprietor; B. The business name, address, and telephone number of the fixed location for which the license is sought;
C. Whether or not each prospective proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the date of the suspension or revocation;
D. Proof that the location for which a license is sought has been issued a valid State Cigarette and Tobacco Products Retail License by the State of California Board of Equalization pursuant to the California Cigarette and Tobacco Products Licensing Act of 2003 (California Business and Professions Code section 22970 et seq.);
E. A statement signed by each prospective proprietor that no drug paraphernalia is or will be sold at the location for which the license is sought;
F. A statement signed by each prospective proprietor that the proprietor is informed of the laws affecting licenses; and
5/2/25, 12:31 PM Print Preview
https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 4/12 Packet Pg. 188 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) G. Such other information as the department deems necessary for the administration of this chapter. (Ord. 2019-115, 11-4-2019)

4.70.060 ISSUANCE OF A LICENSE:

A. Upon the receipt of a complete application for a license and the license fee required by this chapter, the department shall issue a license unless one or more of the following grounds exists:

1. The application is incomplete or inaccurate;

2. The application seeks authorization for tobacco retailing at a location for which a suspension is in effect pursuant to this chapter, for which a license has been revoked pursuant to this chapter, or for which this chapter otherwise prohibits issuance of licenses;

3. The application seeks authorization for tobacco retailing for a prospective proprietor for whom a suspension is in effect pursuant to this chapter for the subject location or another location, whose license has been revoked pursuant to this chapter for the subject location or another location, or to whom this chapter otherwise prohibits a license to be issued;

4. The department has information that the prospective proprietor or his or her agent or employee has violated any local, state or federal tobacco control law, including this chapter, within the preceding twelve (12) months; or

5. The application seeks authorization for tobacco retailing that is prohibited pursuant to this chapter, that is otherwise unlawful pursuant to this code, or that is unlawful pursuant to any other local, state, or federal law.

B. Any denial of an application for a license shall be in writing, setting forth the reasons for the denial and notifying the applicant for a license that the decision to deny an application for a license shall become final unless the applicant seeks an appeal pursuant to section 4.70.130 within fourteen (14) calendar days of the date of service of the department’s decision. Service of the decision shall be provided in accordance with the service requirements set forth in section

4.70.120A.

C. All information required to be submitted pursuant to section 4.70.050 in order to apply for a license shall be updated whenever the information changes. A tobacco retailer shall provide the department with any updates within ten (10) business days of a change. (Ord. 2019-115, 11-4- 2019)

4.70.070 LICENSE RENEWAL AND EXPIRATION:

A. A license is invalid unless the appropriate license fee has been paid in full and the term of the license has not expired. The term of a license is one year beginning each fiscal year on July 1 and ending on June 30 of the following year. Each tobacco retailer shall apply for the renewal of his or 5/2/25, 12:31 PM Print Preview
https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 5/12 Packet Pg. 189 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) her license and submit the license fee no later than thirty (30) calendar days prior to expiration of the term.

B. A license that is not timely renewed shall expire at the end of its term. To reinstate a license that has expired, or to renew a license not timely renewed pursuant to subsection A of this section, the proprietor must:

1. Submit the license fee; and

2. Submit a signed affidavit affirming that the proprietor:
a. Has not sold and will not sell any tobacco product or tobacco paraphernalia after the license expiration date and before the license is renewed; or b. Has waited the appropriate ineligibility period established for tobacco retailing without a license, as set forth in section 4.70.110, before seeking renewal of the license. (Ord. 2019-115, 11-4-2019)

4.70.080 LICENSE NONTRANSFERABLE:

A. A license may not be transferred from one person to another or from one location to another.

Whenever a tobacco retailing location has a change in proprietors, a new license is required.

B. Notwithstanding any other provision of this chapter, prior violations at a location shall continue to be counted against a location, and license ineligibility periods shall continue to apply to a location unless:

1. The location has been fully transferred to an entirely new proprietor or fully transferred to entirely new proprietors; and

2. The new proprietor(s) provides the department with clear and convincing evidence that the new proprietor(s) has acquired or is acquiring the location in an arm’s length transaction.

As used in this section, the term "arm’s length transaction" shall mean a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two (2) informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this chapter is not an arm’s length transaction. (Ord. 2019-115, 11-4-2019)

4.70.090 INSPECTIONS, INVESTIGATIONS AND ENFORCEMENT:

A. Compliance with this chapter shall be monitored by the department or any law enforcement officer thereof. Employees of the department or a law enforcement officer may conduct compliance checks, including but not limited to youth decoy operations. Any law enforcement officer may enforce the penal provisions of this chapter. Compliance checks may be unannounced. 5/2/25, 12:31 PM Print Preview
https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 6/12 Packet Pg. 190 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) B. The city or its designee shall not enforce any tobacco-related minimum age law against a person who otherwise might be in violation of such law because of the person’s age (hereinafter "youth decoy") if the potential violation occurs when:

1. The youth decoy is participating in a compliance check supervised by an employee of the department or a law enforcement officer;

2. The youth decoy is acting as an agent of a person designated by the county to monitor compliance with this chapter;

3. The youth decoy is participating in a compliance check funded in part, either directly or indirectly through subcontracting, by the department; or

4. The youth decoy has an immunity letter from the district attorney’s office.

C. Whenever evidence of a violation of this chapter is obtained in any part through the participation of a person under the age of eighteen (18) years old, such a person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this chapter and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented. (Ord. 2019-115, 11-4-2019)

4.70.100 SUSPENSION OR REVOCATION OF LICENSE:

A. In addition to any other remedy authorized by law, after notice and opportunity to be heard pursuant to section 4.70.120, a license may be suspended or revoked as provided in this section if the department finds by a preponderance of the evidence that the licensee, or any of the licensee’s agents or employees, has:

1. Violated any of the requirements, conditions or prohibitions of this chapter; or

2. Pleaded guilty, "no contest" or its equivalent, or admitted to any of the following:
a. The original or renewal application contained incorrect, false, or misleading information;
b. One or more of the grounds for denial listed in section 4.70.060 existed before the license was issued; or
c. A licensee is convicted of a misdemeanor or felony violation of any federal, state, or local tobacco retailing law or regulation, including any provision of this chapter.

B. During any period of suspension or revocation, the licensee shall remove all tobacco products and tobacco paraphernalia from public view. Failure to do so may be considered a subsequent violation.
5/2/25, 12:31 PM Print Preview
https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 7/12 Packet Pg. 191 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) C. When the department finds a violation as set forth in subsection A of this section, the license shall be suspended or revoked as follows:

1. Upon a finding by the department of a first license violation, the license shall be suspended for sixty (60) days;

2. Upon a finding by the department of a second license violation within any sixty (60) month period, the license shall be suspended for one hundred twenty (120) days;

3. Upon a finding by the department of a third license violation in any sixty (60) month period, the license shall be suspended for one hundred eighty (180) days; and

4. Upon a finding by the department of a fourth license violation within any sixty (60) month period, the license shall be revoked and no new license shall issue for the location until five (5) years has passed from the date of revocation.

D. Violation by a licensee at one location shall not be construed as a violation at another location of the same licensee, nor shall violations by a prior licensee at the same location be accumulated against a subsequent licensee at the same location.

E. A license shall be revoked if the department finds that one or more of the grounds for denial of an application for a license pursuant to section 4.70.060 existed at the time the application was made or at any time before the license was issued. (Ord. 2019-115, 11-4-2019)

4.70.110 PENALTIES FOR TOBACCO RETAILING WITHOUT A LICENSE:

A. In addition to any other penalty authorized by law, if a court of competent jurisdiction determines, or the department finds after notice and opportunity to be heard pursuant to section

4.70.120, that any person has engaged in tobacco retailing at a location without a valid license, either directly or through the person’s agents or employees, the person shall be ineligible to apply for, or to be issued, a license as follows:

1. After a first violation of this section at a location, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until sixty (60) days have passed from the date of the violation.

2. After a second violation of this section at a location within any sixty (60) month period, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until one hundred eighty (180) days have passed from the date of the violation.

3. After a third or subsequent violation of this section at a location within any sixty (60) month period, no new license may issue for the person or the location (unless ownership of 5/2/25, 12:31 PM Print Preview
https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 8/12 Packet Pg. 192 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) the business at the location has been transferred in an arm’s length transaction), until five (5) years have passed from the date of the violation.

B. Any imposition of a penalty pursuant to this section shall be in writing, setting forth the reasons for the imposition of a penalty and notifying the person subject to the penalty that the decision to impose the penalty shall become final unless the person seeks an appeal pursuant to section

4.70.130 within fourteen (14) calendar days of the date of service of the department’s decision.

Service of the decision shall be provided in accordance with the service requirements set forth in section 4.70.120A. (Ord. 2019-115, 11-4-2019)

4.70.120 DEPARTMENT DECISION:

A. Upon determining the existence of any of the grounds pursuant to this chapter for the suspension or revocation of a license, or the imposition of a penalty for tobacco retailing without a license, the department shall issue a notice of intended decision to the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed.

The notice shall be provided by personal service or by first class mail, postage prepaid, and shall include a copy of the affidavit or certificate of mailing.

B. The notice of intended decision shall state all the grounds upon which the revocation, suspension, or imposition of penalty is based.

C. The notice of intended decision shall specify the effective date of the action.

D. The notice of intended decision shall state that the department shall give the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed an opportunity to request a hearing thereon. The hearing shall be an informal hearing before a representative of the department. Following the hearing, or within a reasonable time if no hearing is requested, the department shall issue a decision and serve the decision in accordance with the service requirements set forth in subsection A of this section.

E. The decision of the department shall be in writing, setting forth the reasons for the decision, and shall advise the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed that the decision to suspend or revoke the license, or to impose the penalty for tobacco retailing without a license, shall become final unless the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed seeks an appeal pursuant to section 4.70.130. (Ord. 2019-115, 11-4- 2019)

4.70.130 APPEAL PROCEDURES:

With regard to any denial of an application for a license pursuant to section 4.70.060 or any decision issued by the department pursuant to section 4.70.120, the following rules apply:
5/2/25, 12:31 PM Print Preview
https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 9/12 Packet Pg. 193 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) A. A decision of the department to deny an application for a license, to suspend or revoke a license, or to impose a penalty for tobacco retailing without a license can be appealed to a hearing officer, subject to the following requirements and procedures. A person served with a decision issued pursuant to section 4.70.060B or 4.70.120D may seek an appeal by filing with the department a written request for hearing within fourteen (14) calendar days of service of the decision. Failure to timely file a written request for hearing shall be deemed a waiver of the right to challenge the decision of the department and a failure to exhaust administrative remedies. The hearing officers shall be individuals selected by the department who may hear the appeals, issue subpoenas, receive evidence, administer oaths, rule on questions of law and the admissibility of evidence, prepare a record of the proceedings, and issue orders with regard to an appeal.

B. The hearing officer shall schedule a hearing.

1. Written notice of the time, date and location of a hearing before the hearing officer shall be given by personal service or by first class mail, postage prepaid, including a copy of the affidavit or certificate of mailing, to the appellant.

2. Hearing Procedures:
a. Requirements For Taking Testimony: In any proceeding before a hearing officer, oral testimony offered as evidence shall be taken only on oath or affirmation, and the hearing officer, his/her clerk, or other designee shall have the power to administer oaths and affirmations and to certify to official acts. Oaths of witnesses may be given individually or en masse. Witnesses shall be asked to raise their right hands and to swear or affirm that the testimony they shall give will be the truth, the whole truth, and nothing but the truth. b. Continuances: The hearing officer may continue the hearing as determined appropriate by the hearing officer.
c. Administrative Interpretations: In conducting the hearing, the hearing officer shall consider the previously established interpretation of an ordinance provision by the department charged with its enforcement unless that interpretation is shown to be clearly erroneous or unauthorized.
d. Hearing Officer Decisions: Within thirty (30) calendar days after the close of the hearing, the hearing officer shall issue a written decision, including a statement of the basis for the decision. The hearing officer’s written decision shall constitute the final administrative decision of the city or its designee, the county. e. In the event a civil action is initiated to obtain enforcement of the decision of the hearing officer, and judgment is entered to enforce the decision, the person against 5/2/25, 12:31 PM Print Preview
https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 10/12 Packet Pg. 194 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) whom the order of enforcement has been entered shall be liable to pay the city’s/county’s total costs of enforcement, including reasonable attorney’s fees.

C. The appellant’s failure to appear at the hearing on appeal shall constitute an abandonment of the review request and a failure to exhaust administrative remedies. (Ord. 2019-115, 11-4-2019)

4.70.140 OTHER PENALTIES:

The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity.

A. Violations of this chapter may, in the discretion of the city attorney, or in instances in which enforcement authority has been delegated to the county, the district attorney, be prosecuted as infractions or misdemeanors.

B. Causing, permitting, aiding, abetting, or concealing a violation of any provision of this chapter shall constitute a violation.

C. Violations of this chapter are hereby declared to be public nuisances. (Ord. 2019-115, 11-4- 2019)

4.70.150 STIPULATED FINE IN LIEU OF HEARING:

For a first or second alleged violation of this chapter within any sixty (60) month period, the department may allow a tobacco retailer alleged to have violated this chapter to stipulate in writing to the penalties provided in this section in lieu of the penalties that would otherwise apply pursuant to this chapter and to forego any right the tobacco retailer may have to a hearing pursuant to Section 4.70.130. Following submission and acceptance of a stipulation, notice thereof shall be provided to the sheriff’s office, and no hearing shall be held. Stipulations shall not be confidential, shall be in writing, and shall contain the following terms plus any other noncriminal provisions established by the department in the interests of justice:

A. After a first alleged violation of the chapter at a location:

1. An agreement by the tobacco retailer to stop acting as a tobacco retailer for one day;

2. An administrative penalty of one thousand dollars ($1,000.00);

3. An admission by the tobacco retailer that the first alleged violation of the chapter at the location occurred; and

4. An agreement that the first alleged violation of the chapter at the location shall be considered in determining the penalty for any future violation.

B. After a second alleged violation of the chapter at a location within any sixty (60) month period:
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https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 11/12 Packet Pg. 195 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4)

1. An agreement by the tobacco retailer to stop acting as a tobacco retailer for ten (10) days;

2. An administrative penalty of five thousand dollars ($5,000.00);

3. An admission by the tobacco retailer that the second alleged violation of the chapter at the location occurred; and

4. An agreement by the tobacco retailer that the second alleged violation of the chapter at the location will be considered in determining the penalty for any future violations. (Ord. 2019- 115, 11-4-2019)

4.70.160 SEVERABILITY:

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of this chapter or the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. 2019-115, 11-4-2019) 5/2/25, 12:31 PM Print Preview
https://www.codepublishing.com/CA/Gonzales/cgi/menuCompile.pl 12/12 Packet Pg. 196 Attachment: Chapter 4.70 Tobacco Regulations (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of Tittle 4) ORDINANCE NO. 2025-150

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GONZALES AMENDING CHAPTER 4.70-TOBACCO LICENSING OF TITLE 4-BUSINESS AND LICENSE

REGULATIONS OF THE GONZALES CITY CODE TO PROHIBIT THE SALE OF ALL

FLAVORED TOBACCO PRODUCTS AND TO PROHIBIT SINGLE USE ELECTRONIC

SMOKING PRODUCTS
WHEREAS, state law prohibits the sale or furnishing of cigarettes, tobacco products, and smoking paraphernalia to minors, as well as the purchase, receipt, or possession of tobacco products by minors (Cal. Pen. Code § 308);
WHEREAS, state law explicitly permits cities and counties to enact local tobacco retail permitting ordinances and allows for the suspension or revocation of a local permit for a violation of any state tobacco control law (Cal. Bus. & Prof. Code § 22971.3); WHEREAS, in 2019 the Gonzales City Council enacted Ordinance 2019-115 to establish a permitting system for tobacco retailers to ensure that retailers comply with tobacco control laws and business standards of the City to protect the public health, safety, and welfare of the residents of the City. Prohibiting the sale of flavored tobacco products also furthers these goals and objectives;
WHEREAS, prohibiting tobacco retailers from selling flavored tobacco products will not unduly burden legitimate business activities of retailers who sell cigarettes or other tobacco products to adults. It will, however, allow the City to regulate the operation of lawful businesses to discourage violations of local laws by selling flavored tobacco products; WHEREAS, the City has a substantial interest in promoting compliance with federal, state, and local laws intended to regulate flavored tobacco product sales and use; in discouraging the illegal purchase of flavored tobacco products by minors; in promoting compliance with laws prohibiting sales of e-cigarettes and flavored tobacco products to minors; and finally, and most importantly, in protecting children from being lured into illegal activity through the misconduct of adults;
WHEREAS, Senate Bill 793, upheld on November 8, 2022, prohibits a tobacco retailer from selling or possessing with intent to sell, flavored tobacco products; WHEREAS, in a ruling issued on March 18, 2022, the Ninth Circuit Court of Appeals in R.J. Reynolds Tobacco Company et al v. County of Los Angeles, et al (9th Cir. 2022) 29 F.4th 542 held that the Family Smoking Prevention and Tobacco Control Act, codified at 21 USC §387 et seq., did not preempt a city from banning the sale of some or all tobacco products; WHEREAS, in Chapter 7.80 of the Monterey County Code of Ordinances, passed initially on May 15, 2012, and updated on March 15, 2022, the Monterey County Board of Supervisors amended their Tobacco Retail License Ordinance in order to include a ban on flavored tobacco products and single use electronic cigarettes;
Packet Pg. 197 Attachment: Ordinance No. 2025-150 Amending Tobacco Lic (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of WHEREAS, more than 1.63 million young people in the United States reported vape use in 2024, including 7.8% of high school students and 3.5% of middle school students (FDA); WHEREAS, the majority of students who currently use e-cigarettes use a flavored ecigarette product (87.6% in 2024) (CDC); WHEREAS, the majority of students who currently use e-cigarettes use disposable cigarettes (55.6% in 2024) (CDC);
WHEREAS, 17.6% of high school students have reported using vape products in California in 2022 (California Youth Tobacco Survey);
WHEREAS, 20.8% of high school students in the Monterey County area have tried or currently use vape products as of 2023 (California Student Tobacco Survey); WHEREAS, e-cigarette use among youth has decreased significantly from 7.7% of youth in 2023 to only 5.9% of youth in 2024 (CDC);
WHEREAS, e-cigarette waste introduces plastic, nicotine salts, heavy metals, lead, mercury, and flammable lithium-ion batteries into waterways, soil, and to wildlife (CDC); WHEREAS, a garbology study performed in 12 San Francisco high schools from 2018 to 2019 to investigate e-cigarette, combustible cigarette, and cannabis product waste revealed that 99% of identifiable e-cigarette waste was from flavored pods other than tobacco flavor and 42% of all identifiable combustible cigarette waste was menthol flavored. In the same study, menthol flavored waste accounted for 60% in low-income schools, 38% in middle-income schools, and 28% in high-income schools of all identifiable combustible cigarette waste (CDC); WHEREAS, the Office of National Marine Sanctuaries report on marine debris on the shoreline of Monterey Bay National Marine Sanctuary in 2023 found 1,331 individual pieces of ecigarette waste through clean-up efforts from 2017-2021; WHEREAS, adolescents obtain e-cigarettes from a variety of sources, including purchasing from a store or online (31%), buying from another person (16%), and giving a person of legal age money to purchase for them (15%) (AJHP Pepper et al 2019); WHEREAS, the City of Gonzales determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

Packet Pg. 198 Attachment: Ordinance No. 2025-150 Amending Tobacco Lic (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of NOW THEREFORE, BE IT HEREBY ORDAINED by the City Council of the City of Gonzales as follows:

SECTION 1: The foregoing recitals are true and correct and are incorporated herein by reference.

SECTION 2: Subsection C of Section 4.70.010 – Purpose and Application of Chapter 4.70 of the Gonzales City Code is hereby amended to read as follows:
“C. This article is adopted to: (1) ensure compliance with business standards and practices of the City; (2) to encourage responsible retailing of tobacco; (3) to limit the sale of tobacco products to those with the taste or aroma of tobacco, or no taste or aroma at all; and (4) to discourage violations of tobacco-related laws, but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or otherwise regulated.” SECTION 3: Section 4.70.020 – Definitions of Chapter 4.70 of the Gonzales City Code is hereby relettered sequentially by inserting the following new definitions in alphabetical order into the existing text:
“C. “Flavored tobacco product" shall mean any tobacco product that contains a taste or smell, other than the taste or smell of tobacco, that is distinguishable by a consumer either prior to, or during the consumption of, a tobacco product, including but not limited to, any taste or smell relating to fruit, menthol, mint, wintergreen, chocolate, cocoa, vanilla, honey or any candy, dessert, alcoholic beverage, herb or spice.

D. "Health Officer" means the Health Officer of the County of Monterey or his or her designee.

N. "Sale," "sell" or "to sell" means any transaction where, for any consideration, ownership is transferred from one (1) person or entity to another including, but not limited to any transfer of title or possession for consideration, exchange or barter, in any manner by any means.

O. "Single use electronic cigarette" means any single-use device or delivery system sold in combination with nicotine which can be used to deliver to a person nicotine in aerosolized or vaporized form, including but not limited to, a single-use e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. Single use electronic cigarettes shall not include any product that has been approved by the Food and Drug Administration for sale as a tobacco cessation product or other therapeutic purposes where that product is marketed and sold solely for such approved use.

P. "State" means the State of California.”
SECTION 4: Section 4.70.040 – Issuance of License of Chapter 4.70 of the Gonzales City Code is hereby relettered sequentially by inserting the following new definitions in alphabetical order into the existing text:
“G. It shall be a violation of this Chapter for any tobacco retailer or any of the tobacco retailer's agents or employees to sell or offer for sale, or to possess with intent to sell or offer for sale, any flavored tobacco product.

Packet Pg. 199 Attachment: Ordinance No. 2025-150 Amending Tobacco Lic (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of

1. It should be a rebuttable presumption that a tobacco retailer in possession of four (4) or more flavored tobacco products, including, but not limited to, individual flavored tobacco products, packages of flavored tobacco products, or any combination thereof, possesses such flavored tobacco products with intent to sell or offer for sale.

2. There shall be a rebuttable presumption that a tobacco product is a flavored tobacco product if a tobacco retailer, manufacturer, or any employee or agent of a tobacco retailer or manufacturer has:
a. Made a public statement or claim that the tobacco product imparts a characterizing flavor;
b. Used text and/or images on the tobacco products' labeling or packaging to explicitly or implicitly indicate that the tobacco product imparts a characterizing flavor; or c. Taken action directed to consumers that would be reasonably expected to cause consumers to believe the tobacco product imparts a characterizing flavor.

H. It shall be a violation of this Chapter for any tobacco retailer or any of the tobacco retailer's agents or employees to sell or offer for sale, or to possess with intent to sell or offer for sale, any single use electronic cigarette.”
SECTION 5: All ordinances and parts of ordinances in conflict herewith are hereby repealed.

SECTION 6: This ordinance shall be in full force and effect thirty (30) days from and after its final passage and adoption.

SECTION 7: Nothing in this Article shall be interpreted or applied to create any power or duty in conflict with any federal or state law. If any provision of this Article or the application thereof to any person or circumstance is held invalid, the remainder of this Article or the application of such provision to other persons or circumstances shall not be affected thereby.

This Ordinance was introduced and read by title only at a regular meeting of the City Council of the City of Gonzales on the 2nd day of June, 2025, and was adopted at a regular meeting of the City Council on the 16th day of June, 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:
__________________________________
Mary Villegas, Deputy City Clerk
Packet Pg. 200 Attachment: Ordinance No. 2025-150 Amending Tobacco Lic (3300 : Ordinance No.2025-150 Amending Chapter 4.70- Tobacco Lisencing of City of Gonzales

CITY ATTORNEY

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 16, 2025
FROM: Michael Rodriquez, City Attorney
THROUGH: Carmen Gil, City Manager
SUBJECT: Adoption of Ordinance No. 2025-151 Amending Section 3.16.085-Bidding Procedures for Public Construction Projects of Chapter 3.16-Purchasing Procedures of the Gonzales City Code

RECOMMENDATION
It is recommended that the City Council waive reading, read by title only, and adopt Ordinance No. 2025- 151, An Ordinance of the City Council of the City of Gonzales Amending Section 3.16.085-Bidding Procedures for Public Construction Projects of Chapter 3.16-Purchasing Procedures of the Gonzales City Code.

BACKGROUND
California law requires general law cities such as Gonzales to advertise public works projects for competitive bidding if an involved project is anticipated to cost more than $5,000. An alternative contracting process for public works has been established in the California Uniform Public Construction Cost Accounting Act (“UPCCAA”), as set forth in California Public Contract Code, Sections 22000 through 22050. The intent of the UPCCAA is to promote uniformity of cost accounting standards and allow greater flexibility for public agencies in the public contract bidding process.

The UPCCAA allows local agencies that elect to follow the cost accounting procedures in the “Cost Accounting Policies and Procedures Manual” to use alternative bidding procedures when they hire contractors to perform public works projects. Contracts are broken into three categories: no-bid contracts, informal contracts, and formal bidding contracts, each with its own monetary threshold and set of procedures as set by statute and Manual provisions.

A decade ago, the City adopted a resolution choosing to perform public works projects pursuant to the alternative bidding and contracting procedures of the UPCCAA. As such, in November of 2015, the AGENDA
ITEM
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Council adopted Ordinance No. 2015-88 “Amending Section 3.16.085- Bidding Procedures for Public Construction Projects” of Chapter 3.16– Purchasing Procedures of the Gonzales City Code. The monetary thresholds established for the three categories of contractual bidding, no bid, informal and formal, which have been amended since the initial adoption of the UPCCAA bidding procedures, are currently set at $60,000, $200,000, and any amount over $200,000 respectively.

REVIEW & ANALYSIS
Pursuant to AB 2192, as of January 1, 2025, the public works contract bidding thresholds established for use under the UPCCAA have been increased.

The new bidding thresholds are as follows:

No Bid- Public Projects costing $75,000 or less can be performed pursuant to force account, negotiated contract or purchase order of $75,000 or less.

Informal Bidding- Public Projects costing $220,000 or less can be let to contract by informal procedures (solicitation of proposals).

Formal Bidding- Public Projects costing more than $220,000 are to be let to contract by formal noticed bidding procedures.

AB 2192 also includes language making an addition to the definition of “public projects” covered by the UPCCAA by adding “installation” work performed at publicly owned, leased or operated facilities. This change will be useful when adding or replacing large pieces of attached equipment, like HVAC systems, at such facilities.

Staff has prepared an ordinance amending Section 3.16.085 of Chapter 3.16 Purchasing Procedures of the Gonzales City Code to include the UPCCAA changes referenced above. We have also taken the opportunity to correct and add some language that appears to have been inadvertently altered or omitted in previous iterations of the Code. Staff believes that use of the UPCCAA process has proven to save time, money and effort in the City’s public works projects by expediting the contractor selection process, improving timeliness of project completion, and eliminating time-consuming and burdensome paperwork and noticing requirements associated with many typical contracts. The new monetary thresholds will also be helpful given recent and anticipated increased costs of construction materials. As such, Staff is recommending that Ordinance No. 2025-151 be adopted.

The Council should keep in mind that in utilizing the UPCCAA process, all informal and formal public works contracts will continue to be awarded to the lowest responsive and responsible bidder. The City would also still be required to meet statutory requirements in its public works contracts for performance bonds, payment of prevailing wages, certificates of insurance and funding mandates.

At the June 2 City Council meeting, the Council waived reading, introduced and read by title only Ordinance No. 2025-151 which will amend Section 3.16.085 of the Gonzales City Code to reflect the changes referenced above. Staff is now recommending that the Council conduct a public hearing (which was noticed in accordance with all legal requirements) and receive comment, waive reading, and thereafter adopt and read Ordinance No. 2025-151 by title only this evening.

Explain Recommendation and How it Supports the Vision.

Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.

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Explain: Use of the increased monetary thresholds for public works projects should allow the City to continue to carry out numerous projects that contribute to the City’s safety, cleanliness and charm in a cost-efficient and timely manner.

Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____No ____NA
Explain: See above.

City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ___No ___NA Explain: See above.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education Yes No X N/A
Explain: See above.

ALTERNATIVES
None at this time.

BUDGET IMPACT
Adoption of the proposed Ordinance should have no adverse impact on the budget and may result in some cost savings associated with avoidance of typical bid procedures like preparation of bid solicitations and related publication requirements.

CONCLUSION
It is recommended that the City Council waive reading, read by title only, and adopt Ordinance No. 2025- 151, An Ordinance of the City Council of the City of Gonzales Amending Section 3.16.085-Bidding Procedures for Public Construction Projects of Chapter 3.16-Purchasing Procedures of the Gonzales City Code.

Attachments:

1. Public Notice

2. Ordinance No. 2025-151
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Packet Pg. 204 Attachment: Public Notice (3288 : Ordinance No. 2025-151 Adoption - Amending Chapter 3 Bidding Procedures) ORDINANCE NO. 2025-151

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GONZALES AMENDING SECTION 3.16.085- “BIDDING PROCEDURES FOR PUBLIC CONSTRUCTION PROJECTS” OF CHAPTER 3.16-PURCHASING PROCEDURES,

OF THE GONZALES CITY CODE
WHEREAS, the City has, by resolution, chosen to perform certain public works projects subject to the procedures of the Uniform Public Construction Cost Accounting Act (UPCCAA) (Public Contract Code 22000 et seq.), and has adopted City Code Section 3.16.085 by ordinance in accordance therewith; and
WHEREAS, pursuant to City Code Section 3.16.085, the City may perform public works projects less than or equal to $60,000 without going through any specific bidding process, may use an informal bidding process for public works projects less than or equal to $200,000, and must use formal bidding procedures for public works projects in excess of $200,000; and WHEREAS, pursuant to AB 2192, which became effective in January of 2025, provisions of the UPCCAA were amended to slightly broaden the definition of a “public project” and to increase the monetary thresholds applied to the three categories of public works contracts, and the City now wishes to amend its City Code to reflect these changes; and WHEREAS, City Staff and the Council continue to believe that the alternative bidding and award process established by the UPCCAA reduces both time and resources used in the administration of public works project contracts; and
WHEREAS, use of the UPCCAA contracting procedures will assist the City in achieving the best work at a fair price.

NOW THEREFORE, BE IT HEREBY ORDAINED by the City Council of the City of Gonzales as follows:

Section 1. All of the recitals set forth above are true and correct and incorporated herein as findings.

Section 2. The definition of “Public Project” as set forth in Subsection B of Section

3.16.085 Bidding Procedures for Public Construction Projects of Chapter 3.16 Purchasing Procedures of the Gonzales City Code, is amended as follows:

3.24.080- Bidding procedures for public works construction projects …
B. Definitions: The definitions employed in article 1 of chapter 2, part 3, division 2 of Public Contract Code section 22000 et seq., and their statutory successors shall govern the construction of this section.

Accordingly, a “public project” means any of the following:

Packet Pg. 205 Attachment: Ordinance No. 2025-151 (3288 : Ordinance No. 2025-151 Adoption - Amending Chapter 3 Bidding Procedures)

1. Construction, reconstruction, erection, alteration, renovation, improvement, demolition, installation, and repair work involving any publicly owned, leased, or operated facility.

2. Painting or repainting of any publicly owned, leased, or operated facility.

3. In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, power plants, and electrical transmission lines of two hundred thirty thousand (230,000) volts and higher.

A “public project” does not include maintenance work, such as:

1. Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes.

2. Minor repainting.

3. Resurfacing of streets and highways at less than one inch (1”).

4. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.

5. Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of two hundred thirty thousand (230,000) volts and higher.

Section 3. The portions of Subsection C. of Section 3.16.085- “Bidding Procedures for Public Construction Projects” of Chapter 3.16- Purchasing Procedures, as set forth below, are hereby amended as follows:

C. Contract Letting Procedures: Except as otherwise provided herein, the provisions of the uniform public construction cost accounting act, Public Contract Code Section 22000 et seq., shall be controlling.
. . .

2. No Bidding Required: Public projects less than or equal to sixty seventy-five thousand dollars ($6075,000.00) may be performed by city staff, by force account with a contractor, by negotiated contract, or by use of a purchase order, pursuant to section 22032 of the Public Contract Code.

3. Informal Bids: The city shall follow the following informal bidding procedure for public projects of two hundred and twenty thousand dollars ($2200,000.00) or less, or Packet Pg. 206 Attachment: Ordinance No. 2025-151 (3288 : Ordinance No. 2025-151 Adoption - Amending Chapter 3 Bidding Procedures) those public projects as specified in either section 22032(b) or section 22020 of the Public Contract Code.
a. Notice: A notice inviting informal bids shall be sent to: 1) all contractors on the city’s list of qualified contractors for the category of work being bid, and 2) all construction trade journals as specified in section 22036 of the Public Contract Code and as named by the California uniform construction cost accounting commission.
(1) The mailing of notices to contractors and construction trade journal shall be completed not less than ten (10) calendar days before bids are due.
(2) The notice inviting informal bids shall describe the project in general terms, how to obtain more detailed information about the project, and state the time and place for the submission of bids. b. Authority to Award Bid: The City Council shall authority to award informal contracts. The City Council may reject any or all bids presented and waive any irregularity or informality in such bids. The Contract shall be awarded to the lowest responsive, responsible bidder. If two or more bids are the same and the lowest, the City Council may accept the bid of its choice. is hereby delegated to the city manager unless In the event all informal bids received are in excess of two hundred and twenty thousand dollars ($2200,000.00), in which case the city council may, by passage of a resolution by a four-fifths (4/5) vote, award the contract at the amount set forth in section 22034(f) of the Public Contract Code or less to the lowest responsible bidder, if it determines that cost estimate of the responsible department head was reasonable.

If no bids are received, the project may be performed by city employees, by force account or negotiated contract without further complying with this section.

4. Formal Bids: The City shall follow the following formal bidding procedure for public projects greater than two hundred and twenty thousand dollars ($2200,000.00), or as specified in either Section 22032(b) or section 22020 of the Public Contract Code. . . .

Section 4 - Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance or the application of such provision to other persons or circumstances shall not be affected thereby.

Section 5. CEQA Compliance. The adoption of this ordinance is exempt from the California Environmental Quality Act, based on 14 California Code of Regulations Section 15061(b)(3), where, as the case here, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and Section 15060(c) (3)- the activity is not a project as defined in Section 15378.

Packet Pg. 207 Attachment: Ordinance No. 2025-151 (3288 : Ordinance No. 2025-151 Adoption - Amending Chapter 3 Bidding Procedures) Section 6. Effective Date. This ordinance shall be in full force and effect thirty (30) days following a second reading hereof. Before the expiration of fifteen (15) days following passage, this Ordinance shall be published once with the names of the members of the City Council members voting for or against the ordinance in a newspaper of general circulation in Gonzales.

This Ordinance was introduced at a regular meeting of the City Council of the City of Gonzales on the 2
nd day of June, 2025, and was adopted at a regular meeting of the City Council on the 16th day of June, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 208 Attachment: Ordinance No. 2025-151 (3288 : Ordinance No. 2025-151 Adoption - Amending Chapter 3 Bidding Procedures)