Agenda packet, joint meeting — Gonzales City Council, June 16, 2025 (part 1 of 2)

Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

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A G E N D A

JOINT MEETING OF THE

GONZALES CITY COUNCIL

GONZALES SUCESSOR AGENCY,

GONZALES SUCCESSOR HOUSING AGENCY,

GONZALES ELECTRIC AUTHORITY BOARD,

GONZALES MUNICIPAL ELECTRIC UTILTY BOARD
CITY COUNCIL CHAMBERS – 117 FOURTH STREET
GONZALES, CA 93926
MONDAY, JUNE 16, 2025
6:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

1. ROLL CALL- City Council/Successor Agency/Successor Housing Agency/Electric Authority Board/Municipal Electric Utility Board
Mayor Pro Tem/Vice Chair/Vice President Liz Silva, Council/Agency/Board Member Scott Funk, Council/Agency/Board Member Lorraine Worthy, Council/Agency/Board Member Maria Orozco, Mayor/Chair/President Jose L. Rios
* Successor Agency Item
♦ Successor Housing Agency/Electric Authority/Municipal Electric Utility Item

If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed two minutes for your comments.

If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on the day of the meeting to the City Clerk at [email protected]

PRESENTATIONS

2. Gonzales Little League Sportsmanship Recognitions

3. Fourth of July Preparations
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

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BUSINESS FROM THE PUBLIC

4. Business from the Public not on the Agenda; any member of the Public may address the Council/Agency/Board for a period not to exceed two (2) minutes on any subject not on the Agenda. The Council/Agency/Board will listen to all communications but may take no action.

CONSENT AGENDA
All matters listed under the Consent Agenda are considered routine by the City Council and will be adopted by one action of the Council unless any Council Member has a question or wishes to make a statement or discuss an item. In that event, the Mayor will remove the item from the Consent Calendar for separate consideration.

5. Approve the Joint City Council and Successor Agency - Regular Meeting - June 2, 2025 Minutes

6. Approve City Accounts Payable Warrants #52108-52181

7. City Manager’s Report

8. Community Development Department Activity Report

9. Community Engagement & Recreation Departments Activity Report

10. Fire Department Activity Report

11. Police Department Activity Report

12. Public Works/City Engineer Department Activity Report

13. Consider Approval of Resolution No. 2025-23, A Resolution of the City Council of the City of Gonzales Approving the Prioritized List of Services and Programs to be Funded with Tax Proceeds Received from the Measure ‘K’ Transaction and Use Tax, During Fiscal Year 2025-2026, Including Funding Allocations

14. Consider Approval of Resolution No. 2025-42, A Joint Resolution of the City Council of the City of Gonzales/Gonzales Successor Agency/Gonzales Successor Housing Agency/Gonzales Electric Authority/Gonzales Municipal Electric Utility Extending the Employment Agreement with Carmen Gil

15. Consider Approval of Resolution 2025-44, A Resolution of the City Council of the City of Gonzales Authorizing Task Order #3 Under a Master Services Agreement with Harris & Associates for Construction Management Services on the Community Center Complex Project During FY 2025-2026 for a Not-to-Exceed Amount of $218,873

REGULAR AGENDA

16. Public Hearing to Consider Approval of Resolution 2025-41, A Resolution of the City Council of the City of Gonzales Approving An Agreement Between the City of Gonzales, City of Soledad, City of Greenfield, and Tri-Cities Disposal & Recycling Services from July 1, 2025 Through June 30, 2035 in Substantial Form and Content, and Authorizing the City Manager to Execute said Agreement on Behalf of the City Gonzales, and Approving the FY 2025-2026 Garbage Collection and Disposal Rates
a) Staff Report
b) Public Hearing
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2025-41

17. Consider Approval of 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
*
 *
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

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a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2025-43

18. Public Hearing to Consider Waiver of Second Reading, Adoption, and Reading by Title Only Ordinance No. 2025-150, An Ordinance of the City Council of the City of Gonzales 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
a) Staff Report
b) Public Hearing
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Ordinance No. 2025-150

19. Public Hearing to Consider Waiver of Second Reading, Adoption, and Reading by Title Only 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
a) Staff Report
b) Public Hearing
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Ordinance No. 2025-151

BUSINESS FROM CITY COUNCIL

20. City Council Board/Committee Reports
a. League of California Cities Monterey Bay Division
b. Association of Monterey Bay Area Governments
c. Monterey Salinas Transit

21. Oral Communications

BUSINESS FROM CITY MANAGER

22. Oral Communications

CLOSED SESSION
Any member of the public may address the Council on a closed session item appearing on the agenda.

Speakers shall have a limited time of two (2) minutes. Please be brief and to the point.

23. The City Council will recess to closed session to consider personnel matters pursuant to Government Code Section 54957(B)(1) - City Manager Evaluation.

24. The City Council will recess to closed session pursuant to Government Code Section 54956.9(a) to confer with its Attorney regarding pending litigation which has been initiated formally and to which the City is a party: Duran v. City of Gonzales.

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ADJOURNMENT
In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (831) 675-5000. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (CFR 35.102-

35.104 ADA Title II). This is a public meeting and as such, can be seen live by people present or online and is being recorded; therefore; anything you say or do here is public information. The recordings are available online.

I, Mary Villegas, Deputy City Clerk of the City of Gonzales, do hereby certify that a copy of the foregoing Joint City Council/Successor Agency Regular Meeting Agenda was posted at City Hall, Council Chambers, and on the City’s website by Thursday, June 12, 2025, at 5:00p.m. 06/12/25
Mary Villegas Date

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MINUTES

JOINT MEETING OF THE

GONZALES CITY COUNCIL AND

GONZALES SUCCESSOR AGENCY
MONDAY, JUNE 2, 2025
6:00 P.M.

CALL TO ORDER
The meeting was called to order at 6:00 PM by Mayor Jose L. Rios.

PLEDGE OF ALLEGIANCE
The flag salute was recited by all present.

1. ROLL CALL
Attendee Name Title Status
Jose L. Rios Mayor/Chair Present
Liz Silva Mayor Pro Tem /Vice Chair Present
Scott Funk Council/Agency Member Excused Absence
Lorraine Worthy Council/Agency Member Present
Maria Orozco Council/Agency Member Present

YOUTH COMMISSIONERS
Emily Mendez and Valeria Cardenas.

STAFF PRESENT
City Manager Carmen Gil, City Attorney Michael F. Rodriquez, Finance Director Mike Howard (Via Zoom), Administrative Assistant II Marisol Gomez, Administrative Assistant II Esthela Palmerin, Public Works Director/City Engineer Patrick Dobbins, Fire Chief Jason Muscio, and Police Chief Keith Wise. * Successor Agency Item
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Minutes Acceptance: Minutes of Jun 2, 2025 6:00 PM (CONSENT AGENDA) AGENDA
ITEM
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PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/87020263943 or call 1 (669) 900-6833 and use Meeting ID: 870 2026 3943. If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments.

PRESENTATIONS

2. Certificates of Recognition to Gonzales High School Track and Field Athletes Mayor Rios presented the Certificates of Recognition to the High School Track and Field Athletes with the help of Administrative Assistant II Esthela Palmerin.

Mayor Rios asked to move order of items 3 and 4.

3. Central Coast Community Energy Annual Update
This item was presented after item 4.

Community Relations Manager Sophia Schwirzke presented via PowerPoint, giving a little background about Central Coast Community Energy. She explained the Together Power for Good, 2024 Energy Highlights, Our Energy Future, Online Now, Connecting with Customers, Expanding Access, Empowering Customers, 3CE Gives Customers power to, Making a difference, Community Investment, Battery Energy Storage Systems, Decarbonization, Caiso Supply Trend, and Annual Renewal Curtailment.

Mayor Pro Tem Silva thanked Community Relations Manager Schwirzke for the presentation. She asked where the current projects were located.

Community Relations Manager Schwirzke mentioned the locations of the projects, which were Riverside CA, Kern County, and Arizona. She also suggested on providing a map to Council with the locations of the current projects.

Council Member Worthy asked if the battery would help when owning a solar system, and if having a generator would make a difference.

Community Relations Manager Schwirzke responded that was the reason why 3CE was offering the program to be able to use any power saved by the batteries they provide. She also mentioned there was no need to have a solar system to use the batteries, it could be done with or without. She did clarify that she did not know where the use of a generator would apply to this situation.

Council Member Worthy asked if the existing batteries needed to be replaced due to solar prices going up by 2026. She also expressed concerns on the pricing increasing every year by 20-30%.

Mayor Rios asked about 3CE’s incentives, and how it would be available.

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Minutes Acceptance: Minutes of Jun 2, 2025 6:00 PM (CONSENT AGENDA)

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Community Relations Manager Schwirzke explained that customers could reach out to anyone at 3CE to learn more about the programs they provide.

Mayor Rios inquired about the lithium batteries, if there were any comments regarding the incident at the Moss Landing Power Plant.

Community Relations Manager Schwirzke answered that 3CE was not being invested in a battery facility like Moss Landing, their projects were set up with safety measurements and the location of the projects were built outdoors to prevent any incidents.

4. Gonzales Youth Council FY 2024-2025 End of Year Presentation; and a) Consider Approval of Proclamation No. 2025-04 Commending Youth Commissioner Valeria Cardenas Pacheco; and b) Proclamation No. 2025-05 Commending Youth Commissioner Emily Mendez This item was presented after item 2.

GYC Advisor Cindy Aguilar, introduced the Youth Commissioners and Youth Members. They presented via PowerPoint and talked about their purpose, projects for Fall and Spring, Education, Housing and Tenants rights, Adulting 101, Community Outings, and the 2nd Annual South County Youth Summit (SCYS).

Mayor Rios presented Proclamation No. 2025-04 and Proclamation No. 2025-05 with the help of Ms. Cindy Aguilar. He also presented the Certificates of Recognition with the help of City Manager Gil.

RESULT: APPROVED [UNANIMOUS] Proclamation No. 2025-04
MOVER: Maria Orozco, Council Member
SECONDER: Liz Silva, Mayor Pro Tem
AYES: Jose L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco EXCUSED: Scott Funk
RESULT: APPROVED [UNANIMOUS] Proclamation No. 2025-05
MOVER: Maria Orozco, Council Member
SECONDER: Liz Silva, Mayor Pro Tem
AYES: Jose L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco EXCUSED: Scott Funk

BUSINESS FROM THE PUBLIC

5. Business from the Public not on the Agenda; any member of the Public may address the Council/Agency for a period not to exceed three minutes on any subject not on the Agenda. The Council/Agency will listen to all communications but may take no action.

Andrew Brown (via zoom), commented that the City website was not working, and he was unable to reach specific individuals via email. He mentioned submitting a service ticket since January 2025.

City Manager Gil responded about receiving the email and said she responded back with an email confirming receipt of the email.

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Minutes Acceptance: Minutes of Jun 2, 2025 6:00 PM (CONSENT AGENDA)

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CONSENT AGENDA

6. Approve the Joint City Council & Successor Agency - Regular Meeting - May 19, 2025 Minutes

7. Approve City Accounts Payable Warrants #52047-52107

8. Consider Approval of Resolution No. 2025-29, A Resolution of the City Council of the City of Gonzales Recognizing and Congratulating Carl G. Sedoryk on His 25-Year Anniversary with Monterey-Salinas Transit

9. Consider Approval of Resolution No. 2025-30, A Resolution of the City Council of the City of Gonzales Establishing Public Comment Time Limits and Related Procedures

10. Consider Approval of Resolution No. 2025-31, A Resolution of the City Council of the City of Gonzales Appointing Patrick Dobbins to the Salinas Valley Basin Groundwater Sustainability Agency Board

11. Consider Approval of the Revised Job Description for the Community Development Services Technician/Administrative Analyst Position

12. Consider Approval of Resolution No. 2025-32, A Resolution of the City Council of the City of Gonzales Designating Harris and Associates as Engineer of Work for Assessment Districts, and Directing the Filing of Engineer’s Fiscal Year 2025-2026 Annual Reports Therefor; Designating Jarvis, Fay, & Gibson, LLP as District Counsel for Assessment Districts; and Authorizing Compensation for All Assessment District Work

13. Consider Approval of Resolution No. 2025-33, A Resolution of the City Council of the City of Gonzales Declaring Intention to Confirm Diagrams and to Levy and Collect Annual Assessments Pursuant to the Benefit Assessment Act of 1982 - California Breeze Benefit Assessment District Nos. 1, 2, and 3

14. Consider Approval of Resolution No. 2025-34, A Resolution of the City Council of the City of Gonzales Providing Preliminary Approval of Engineer’s Report, Stating Intention to Confirm Diagram and to Levy and Collect Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 - California Breeze Parks and Open Spaces Maintenance Assessment District

15. Consider Approval of Resolution No. 2025-35, A Resolution of the City Council of the City of Gonzales of Intention to Confirm Diagram and to Levy and Collect Annual Assessments Pursuant to the Benefit Assessment Act of 1982 - Canyon Creek Benefit Assessment District Nos. 1, 2 & 3

16. Consider Approval of Resolution No. 2025-36, A Resolution of the City Council of the City of Gonzales Providing Preliminary Approval of Engineer’s Report, Stating Intention to Confirm Diagram and to Levy and Collect Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 - Canyon Creek Parks and Open Spaces Maintenance Assessment District Nos. 1, 2 and 3

17. Consider Approval of Resolution No. 2025-37, A Resolution of the City Council of the City of Gonzales of Intention to Confirm Diagram and to Levy and Collect Annual Assessments Pursuant to the Benefit Assessment Act of 1982 - Gonzales Industrial Park Benefit Assessment District

18. Consider Approval of Resolution No. 2025-38, A Resolution of the City Council of the City of Gonzales Providing Preliminary Approval of Engineer’s Report, Stating Intention to Confirm Diagram and to Levy and Collect Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 - Gonzales Industrial Park Landscape Maintenance Assessment District

19. Consider Approval of Resolution No. 2025-39, A Resolution of the City Council of the City of Gonzales Declaring Intention to Confirm Diagram and to Levy and Collect Annual Assessments Pursuant to the Benefit Assessment Act of 1982 - Cipriani Estates Benefit Assessment District

20. Consider Approval of Resolution No. 2025-40, A Resolution of the City Council of the City of Gonzales Providing Preliminary Approval of Engineer’s Report, Stating Intention to Confirm Diagram and to Levy and Collect Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 - Cipriani Estates Parks and Open Spaces Maintenance Assessment District Council Member Worthy pulled items 7 and 8 for questions. *
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Minutes Acceptance: Minutes of Jun 2, 2025 6:00 PM (CONSENT AGENDA)

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Mayor Pro Tem Silva pulled items 13 and 14 for verification.

Council Member Worthy mentioned she wanted more clarification on the descriptions of the receipts for the credit card spending report. She said she would call the City Manager in the next few days to meet for more clarification on item 7.

City Manager Gil agreed to the meeting with Council Member Worthy. She also clarified to the Council that the Credit Card statements were attached in the agenda packet with the copy of the receipts.

Council Member Worthy mentioned she was going to be making some changes to Resolution No. 2025-29 and present it on Monday June 9, 2025.

Mayor Pro Tem Silva asked about items 13 and 14 if the fees would be paid to the County, the assessments for California Breeze due to including a County collection column.

Public Works Director Dobbins responded that it was a fee when the City submits a tax rule for the costs accrued from the assessor.

Mayor Pro Tem Silva inquired if it was normal not to have a fee amount on some of the parcel numbers.

Public Works Director Dobbins responded those parcels were City owned properties.

Mayor Pro Tem Silva asked about the reference of 2017-18 on page 104, if it was a mistake on the agenda.

Public Works Director Dobbins answered there was no mistake. He explained that was the year the fees were identified.

Mayor Pro Tem Silva asked if the current fiscal year assessment fees were not going to be reflected.

Public Works Director Dobbins responded that he would have to ask the Assessment Engineer.

City Manager Gil also added that it reflected the past studies that were made in the assessments.

Mayor Pro Tem Silva asked if the studies to reflect the current year were going to take place in the next 6 months.

City Manager Gil answered that the funds would have to be available to complete a study first.

Mayor Pro Tem Silva suggested including a footnote for the explanation given.

Public Works Director Dobbins contributed to the response to look at page 118 of the agenda packet for more details.

RESULT: APPROVED [UNANIMOUS] Consent Agenda Items 5-20
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco EXCUSED: Scott Funk
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Minutes Acceptance: Minutes of Jun 2, 2025 6:00 PM (CONSENT AGENDA)

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REGULAR AGENDA

21. Consider Approval of Resolution No. 2025-28, A Resolution of the City Council of the City of Gonzales Establishing the Cost for Services Fee Schedule for Fiscal Year 2025-2026 Staff Report: Public Work Director Dobbins presented staff report.

Mayor Rios opened the public hearing at 7:15pm.

Public Hearing: No comments came forward.

Mayor Rios closed the public hearing at 7:15pm.

Council Discussion: There was none.

RESULT: APPROVED [UNANIMOUS] Resolution No. 2025-28
MOVER: Maria Orozco, Council Member
SECONDER: Liz Silva, Mayor Pro Tem
AYES: Jose L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco EXCUSED: Scott Funk

22. Introduce, Waive Reading, and Read by Title Only Ordinance No. 2025-150, An Ordinance of the City Council of the City of Gonzales Amending Ordinance No. 2019-115 of the Gonzales City Code (Tobacco Retailer License) to Prohibit the Sale of All Flavored Tobacco Products and to Prohibit Single Use Electronic Smoking Products
Staff Report: Community Development Director Kinson Brown presented the staff report.

Public Comment: Blue Zones Senior Policy Lead Kendra Howell, commented that the update of the Tobacco Ordinance would bring the City closer to being certified by them.

Monterey County Health Department Chronic Disease Prevention Coordinator Gonzalo Coronado, shared that if the City were to update the Tobacco Ordinance, it would be up to date with the State and it would also be stronger than the State’s Tobacco Ordinance.

Council Discussion: There was none.

RESULT: APPROVED [UNANIMOUS] Introduce & Read by Title only Ordinance No. 2025-150
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco EXCUSED: Scott Funk

23. Introduce, Waive Reading, and Read by Title Only 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 Staff Report: City Attorney Rodriquez presented the staff report.

Public Comment: There was none.

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Minutes Acceptance: Minutes of Jun 2, 2025 6:00 PM (CONSENT AGENDA)

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Council Discussion: There was none.

RESULT: APPROVED [UNANIMOUS] Introduce & Read by Title only Ordinance No. 2025-151
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco EXCUSED: Scott Funk

GONZALES YOUTH COUNCIL UPDATES

24. Oral Communications
There was none.

BUSINESS FROM CITY COUNCIL

25. City Council Board/Committee Reports
a. Transportation Agency for Monterey County
Mayor Rios gave an update on Civil Rights. He mentioned there was no concerns on road work, but if there were any to reach out to him or any member from TAMC. b. Mayor Selection Committee
No Report.
c. Salinas Valley Recycles
Mayor Pro Tem Silva announced the upcoming scheduled meeting on June 26, 2025.

26. Oral Communications
Council Member Orozco congratulated all graduates. She also mentioned that Rotary was working on their Annual BBQ Scholarship fundraiser, as well as their Annual Golf Tournament.

Mayor Pro Tem Silva shared her experience at the Youth Summit the GYC had recently. She also talked about the AIDS Cycle passing through town, and said this would be the last year they have the bike ride event. She also wished all graduates best wishes and she shared the pool opening on June 10th.

Council Member Worthy shared she had the Corporal Castillo show the drone to them. She also thanked Public Works Supervisor Twisselmann for the tour of the Wastewater Treatment Plant. She congratulated all graduates.

Mayor Rios asked the City Attorney about the terms of Council Members and how they were set up.

City Attorney Rodriquez suggested preparing a report and bringing it back to the Council.

Mayor Rios agreed. He also congratulated all graduates.

BUSINESS FROM CITY MANAGER

27. Oral Communications
City Manager Gil congratulated all graduates as well. She also mentioned it was the 10-year Anniversary of the GYC and thanked the Advisor and all Members of the GYC for their hard work Packet Pg. 11
Minutes Acceptance: Minutes of Jun 2, 2025 6:00 PM (CONSENT AGENDA)

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and dedication. She also mentioned the sale of BBQ tickets from Rotary, and to reach her or any member of the Rotary to purchase a ticket.

Police Chief Wise announced the upcoming SPCA Low-Cost Vaccinations Clinic on Saturday June 7 th from 9:30am-1:00pm in front of the Police Department. He also announced the Annual Law Enforcement Torch Run on June 25, 2025, starting at 9:00am.

Fire Chief Muscio announced the burning of the slough on Tuesday, June 3rd and Wednesday, June 4 th early in the morning. He also notified everyone about the new Firefighter who started with the Fire Department on Monday, June 2, 2025.

Public Works Director Dobbins shared information on the road closure from June 9 - 23, 2025, due to paving the road on Fifth Street in front of the Community Center. He also shared the approval of the State Revolving Fund Loan.

ADJOURNMENT
RESULT: APPROVED [UNANIMOUS]
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Maria Orozco, Council Member
AYES: Jose L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco EXCUSED: Scott Funk
The meeting was adjourned at 7:55 PM.

ATTEST:
_______________________________
Mary Villegas, Deputy City Clerk
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Minutes Acceptance: Minutes of Jun 2, 2025 6:00 PM (CONSENT AGENDA) 6/9/2025 8:26:58 AM Page 1 of 6
Check Report
Gonzales, CA By Check Number
Date Range: 05/28/2025 - 06/06/2025
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount Bank Code: POOL-MECHANICS-POOL-MECHANICS BANK
AFLAC AFLAC 06/03/2025 52108 Regular 0.00 967.20
INV0000551 Invoice 06/06/2025 AFLAC ACC - AFTER TAX 5.79 0.00 INV0000552 Invoice 06/06/2025 AFLAC ACC - PRE-TAX 171.43 0.00 INV0000553 Invoice 06/06/2025 AFLAC - CANCER 111.35 0.00 INV0000554 Invoice 06/06/2025 AFLAC - DENTAL 120.57 0.00 INV0000557 Invoice 06/06/2025 AFLAC - HOSPITAL 58.37 0.00 INV0000560 Invoice 06/06/2025 AFLAC - LIFE 267.58 0.00
INV0000573 Invoice 06/06/2025 AFLAC - SPECIAL HEALTH EVENT 59.85 0.00 INV0000574 Invoice 06/06/2025 AFLAC - STD 172.26 0.00
**Void** 06/03/2025 52109 Regular 0.00 0.00
ANTHEM ANTHEM 06/03/2025 52110 Regular 0.00 30,494.64
INV0000556 Invoice 06/06/2025 HEALTH INSURANCE- EMPLOYEE & EMPLO… 30,494.64 0.00 PWDUES CA PROFESSIONAL EMPLOYEES AFL-CIO 06/03/2025 52111 Regular 0.00 285.60 INV0000572 Invoice 06/06/2025 PW UNION DUES 285.60 0.00 CALPERS RET CAL PERS RETIREMENT SYSTEM 06/03/2025 52112 Regular 0.00 29,532.95 INV0000562 Invoice 06/06/2025 PERS CITY COUNCIL 28.00 0.00 INV0000563 Invoice 06/06/2025 PERS MISC EMPLOYEE 1,280.06 0.00 INV0000564 Invoice 06/06/2025 PERS SAFETY EMPLOYEE 1,980.17 0.00 INV0000566 Invoice 06/06/2025 PERS PEPRA MISC EMPLOYER 4,243.15 0.00 INV0000567 Invoice 06/06/2025 PERS PEPRA MISC EMPLOYEE 4,178.47 0.00 INV0000568 Invoice 06/06/2025 PERS PEPRA SAFETY EMPLOYER 5,585.66 0.00 INV0000569 Invoice 06/06/2025 PERS PEPRA SAFETY EMPLOYEE 5,560.36 0.00 INV0000570 Invoice 06/06/2025 PERS MISC EMPLOYER 1,951.78 0.00 INV0000571 Invoice 06/06/2025 PERS SAFETY EMPLOYER 4,725.30 0.00 **Void** 06/03/2025 52113 Regular 0.00 0.00
GONZPOA GONZALES POLICE OFFICERS ASSOCIATION 06/03/2025 52114 Regular 0.00 500.00 INV0000565 Invoice 06/06/2025 POA UNION DUES 500.00 0.00 FIREDUES GONZALES PROFESSIONAL FIREFIGHTERS ASSOC 06/03/2025 Regular 0.00 122.60 52115 INV0000555 Invoice 06/06/2025 FIRE UNION DUES 122.60 0.00 PARS JOHN HANCOCK USA 06/03/2025 52116 Regular 0.00 2,225.24 INV0000561 Invoice 06/06/2025 CITIBANK-PARS CONTRACT # 86360 2,225.24 0.00 ICMA MISSION SQUARE 06/03/2025 52117 Regular 0.00 5,666.48 INV0000550 Invoice 06/06/2025 457 LOAN PAYMENT 927.81 0.00 INV0000558 Invoice 06/06/2025 457 ICMA DEFERRED COMP 4,738.67 0.00 STANDARD STANDARD INSURANCE COMPANY 06/03/2025 52118 Regular 0.00 956.25 INV0000559 Invoice 06/06/2025 BASIC LIFE - EMPLOYER 956.25 0.00 1922 A & G PUMPING, INC. 06/06/2025 52119 Regular 0.00 342.50 25-101569 Invoice 06/06/2025 Porta Potties @ Centennial 342.50 0.00 108 AIRGAS 06/06/2025 52120 Regular 0.00 509.30
9161386142 Invoice 06/06/2025 EMS Oxygen 509.30 0.00
4058 ALEX PRUNEDA 06/06/2025 52121 Regular 0.00 25.01
060525 Invoice 06/06/2025 Reimbursement - Fuel 25.01 0.00 3893 ALVAREZ TECHNOLOGY GROUP, INC. 06/06/2025 52122 Regular 0.00 187.17 76486 Invoice 06/06/2025 Community Center Cameras 151.85 0.00 AGENDA
ITEM
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Attachment: Warrants #52108-52181 (3296 : Approve City Accounts Payable Warrants #52108-52181) 6 Check Report Date Range: 05/28/2025 - 06/06/2025
6/9/2025 8:26:58 AM Page 2 of 6
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount 76487 Invoice 06/06/2025 Community Center Cameras 35.32 0.00 137 AMERICAN SUPPLY CO. 06/06/2025 52123 Regular 0.00 746.42 3061850 Invoice 06/06/2025 Supplies 746.42 0.00
3284 ARMANASCO PUBLIC RELATIONS, INC. 06/06/2025 52124 Regular 0.00 3,000.00 12894 Invoice 06/06/2025 Youth Leadership Development 3,000.00 0.00 3033 ASAP SIGNS & PRINTING 06/06/2025 52125 Regular 0.00 43.44 26078 Invoice 06/06/2025 Name Plates For Commissioners 43.44 0.00 86 AT&T 06/06/2025 52126 Regular 0.00 1,306.55
051825 Invoice 06/06/2025 Telecom 1,306.55 0.00
4117 AT&T 06/06/2025 52127 Regular 0.00 399.62
May 2025 Invoice 06/06/2025 Telecom 399.62 0.00
2830 AT&T 06/06/2025 52128 Regular 0.00 27.21
June 2025 Invoice 06/06/2025 Telecom 27.21 0.00
3168 AUTOZONE INC. 06/06/2025 52129 Regular 0.00 381.91 05509897063 Invoice 06/06/2025 Vehicle Maint 46.62 0.00 05509899725 Invoice 06/06/2025 Vehicle Maint. 225.09 0.00 05509901840 Invoice 06/06/2025 Vehicle Maint. 110.20 0.00 3805 BADGER METER INC. 06/06/2025 52130 Regular 0.00 164.08 80197323 Invoice 06/06/2025 Meters & Reading 164.08 0.00 1054 BANUELOS ENTERPRISES, INC. 06/06/2025 52131 Regular 0.00 199.97 186245 Invoice 06/06/2025 Fuel 65.23 0.00
187375 Invoice 06/06/2025 Fuel 64.74 0.00
6734 Invoice 06/06/2025 Vehicle Repairs 70.00 0.00
4459 BLUE STRIKE ENVIRONMENTAL 06/06/2025 52132 Regular 0.00 672.00 605202501 Invoice 06/06/2025 Food Recovery Inspections FY 24/25 672.00 0.00 4318 BRENT SLAMA 06/06/2025 52133 Regular 0.00 487.50
064 Invoice 06/06/2025 Vista Lucia Project Management + Mtg Pr… 487.50 0.00 3831 CAL COAST AUTOMOTIVE REPAIR & SMOG 06/06/2025 52134 Regular 0.00 990.00 583 Invoice 06/06/2025 Vehicle Maint. 250.00 0.00
584 Invoice 06/06/2025 Vehicle Maint. 250.00 0.00
585 Invoice 06/06/2025 Vehicle 490.00 0.00
770 CARLOS ALBERTO ESQUIVEL JACOB'S MAINTENA 06/06/2025 52135 Regular 0.00 600.00 2024 Invoice 06/06/2025 Janitorial Services 100.00 0.00 2025 Invoice 06/06/2025 Janitorial Services 100.00 0.00 2027 Invoice 06/06/2025 Janitorial Services 400.00 0.00 212 CITY OF GONZALES 06/06/2025 52136 Regular 0.00 6,315.38 052125 Invoice 06/06/2025 Water Sewer Trash 6,315.38 0.00 165 CITY OF GONZALES- PETTY CASH 06/06/2025 52137 Regular 0.00 250.00 052825 Invoice 06/06/2025 Swim Cash 250.00 0.00
1821 CSK AUTO, INC. 06/06/2025 52138 Regular 0.00 173.88 3566-249019 Invoice 06/06/2025 Vehicle Maint 173.88 0.00 3028 D & J TIRE SERVICE 06/06/2025 52139 Regular 0.00 277.22 16747 Invoice 06/06/2025 Vehicle Maint/Repair 192.84 0.00 16765 Invoice 06/06/2025 Vehicle Repairs 84.38 0.00
4341 DAVID RIVERA 06/06/2025 52140 Regular 0.00 54.19
060525 Invoice 06/06/2025 Reimbursement - Fuel 54.19 0.00 1410 DEPARTMENT OF JUSTICE ACCOUNTING OFFICE 06/06/2025 52141 Regular 0.00 456.00 Packet Pg. 14
Attachment: Warrants #52108-52181 (3296 : Approve City Accounts Payable Warrants #52108-52181) Check Report Date Range: 05/28/2025 - 06/06/2025
6/9/2025 8:26:58 AM Page 3 of 6
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount 815023 Invoice 06/06/2025 Livescan 456.00 0.00
3348 EAST BAY TIRE CO 06/06/2025 52142 Regular 0.00 39.74 2143995 Invoice 06/06/2025 Vehicle Repairs 39.74 0.00
4447 FIRST-CITIZENS BANK & TRUST CO 06/06/2025 52143 Regular 0.00 317.04 47099982 Invoice 06/06/2025 Maintance 317.04 0.00
3274 GONZALES ACE HARDWARE INC. 06/06/2025 52144 Regular 0.00 527.96 038961/3 Invoice 06/06/2025 Filter Replacement - PD 254.27 0.00 039223/3 Invoice 06/06/2025 Graffitti 10.88 0.00
039231/3 Invoice 06/06/2025 Grafitti 18.59 0.00
039232/3 Invoice 06/06/2025 Graffitti 18.59 0.00
039264/3 Invoice 06/06/2025 Street Marking 96.44 0.00
039299/3 Invoice 06/06/2025 Camera Repairs 40.28 0.00
039301/3 Invoice 06/06/2025 Graffiti 8.25 0.00
039332/3 Invoice 06/06/2025 White Vinegar to Clean Coffee Machine 8.25 0.00 039351 Invoice 06/06/2025 Pool Maint. 8.74 0.00
039359/3 Invoice 06/06/2025 Pool Maint. 17.52 0.00
039360/3 Invoice 06/06/2025 Pool Maint. 46.15 0.00
225 GONZALES IRRIGATION 06/06/2025 52145 Regular 0.00 313.44 132486 Invoice 06/06/2025 WWTP Maint. 313.44 0.00
1319 GREEN VALLEY FARM SUPPLY 06/06/2025 52146 Regular 0.00 214.25 361428 Invoice 06/06/2025 PPE 214.25 0.00
3228 HARRIS & ASSOCIATES, INC. 06/06/2025 52147 Regular 0.00 32,190.75 67790 Invoice 06/06/2025 Community Center Services 32,190.75 0.00 4120 HILL BROTHERS CHEMICAL CO 06/06/2025 52148 Regular 0.00 4,786.04 INV13128011 Invoice 06/06/2025 Chlorine 4,786.04 0.00
KINGCITYGLASS KING CITY GLASS 06/06/2025 52149 Regular 0.00 1,229.24 KC19310 Invoice 06/06/2025 Replace Window @ Vosti 1,229.24 0.00 127 LEAGUE OF CALIFORNIA CITIES 06/06/2025 52150 Regular 0.00 300.00 8343 Invoice 06/06/2025 League of Cities 2025 300.00 0.00 3395 MANUEL PEREA TRUCKING, INC. 06/06/2025 52151 Regular 0.00 3,641.25 8684 Invoice 06/06/2025 Vehicle Maint. 3,641.25 0.00
72 MISSION UNIFORM SERVICE 06/06/2025 52152 Regular 0.00 871.91 523907636 Invoice 06/06/2025 Mission Linen 111.13 0.00
523915739 Invoice 06/06/2025 Uniforms 175.73 0.00
523915740 Invoice 06/06/2025 Mission Linen 95.80 0.00
523915742 Invoice 06/06/2025 City Hall Mat 56.11 0.00
523915744 Invoice 06/06/2025 Fire Towels & Supplies 100.65 0.00 523957235 Invoice 06/06/2025 PW Uniforms 175.73 0.00
523957238 Invoice 06/06/2025 City Hall Mats 56.11 0.00
523957239 Invoice 06/06/2025 Fire Towels 100.65 0.00
3970 MNS ENGINEERS, INC. 06/06/2025 52153 Regular 0.00 70,599.75 89917 Invoice 06/06/2025 IW PM Services 8,247.25 0.00
89918 Invoice 06/06/2025 CM/Inspection IW Pipeline 61,757.50 0.00 89991 Invoice 06/06/2025 Stormwater Permit Support Services 595.00 0.00 245 MONTEREY COUNTY HEALTH DEPARTMENT 06/06/2025 52154 Regular 0.00 11,635.00 1220022 Invoice 06/06/2025 Permits - Corp Yard 1,224.00 0.00 1220577 Invoice 06/06/2025 Permit Fees 984.00 0.00
1220578 Invoice 06/06/2025 Permits - PD 984.00 0.00
1220579 Invoice 06/06/2025 Permits - Canyon Creek Lift Station 984.00 0.00 1220580 Invoice 06/06/2025 Permits - Well 5 984.00 0.00 1220581 Invoice 06/06/2025 Permits - Well 4 984.00 0.00 Packet Pg. 15
Attachment: Warrants #52108-52181 (3296 : Approve City Accounts Payable Warrants #52108-52181) Check Report Date Range: 05/28/2025 - 06/06/2025
6/9/2025 8:26:58 AM Page 4 of 6
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount 1220582 Invoice 06/06/2025 Permits - Well 6 984.00 0.00 1220761 Invoice 06/06/2025 Permits 984.00 0.00
1221004 Invoice 06/06/2025 Permits - Pool 2,452.00 0.00 1228217 Invoice 06/06/2025 Permits 1,071.00 0.00
2525 MY JEEP CHRYSLER DODGE 06/06/2025 52155 Regular 0.00 211.51 263739 Invoice 06/06/2025 Vehicle Maint. 211.51 0.00
PACESUP PACE SUPPLY CORP 06/06/2025 52156 Regular 0.00 4,799.83 3610225410 Invoice 06/06/2025 Meters -> 5/8" 4,799.83 0.00 341 PATRICK ASKEW 06/06/2025 52157 Regular 0.00 722.00
June 2025 Invoice 06/06/2025 Retiree Medical Insurance Benefit - June 2… 361.00 0.00 May 2025 Invoice 06/06/2025 Retiree Medical Insurance Benefit 361.00 0.00 3828 POLARIS LAND SURVEYING 06/06/2025 52158 Regular 0.00 885.00 20-129.02-3-05 Invoice 06/06/2025 IW Pipeline Staking 885.00 0.00 4092 RAZZO LINK, INC. RAZZOLINK 06/06/2025 52159 Regular 0.00 109.95 430507 Invoice 06/06/2025 Internet 109.95 0.00
568 SAFEGUARD BUSINESS SYSTEMS 06/06/2025 52160 Regular 0.00 1,571.17 9007962632 Invoice 06/06/2025 CCR Report 2024 1,571.17 0.00 189 SAFETY-KLEEN SYSTEMS, INC. 06/06/2025 52161 Regular 0.00 240.86 97135587 Invoice 06/06/2025 Parts Washer 240.86 0.00
3664 SALINAS VALLEY EMBROIDERY 06/06/2025 52162 Regular 0.00 128.00 5527 Invoice 06/06/2025 GYC - Senior Stoles 128.00 0.00 956 SALINAS VALLEY FORD 06/06/2025 52163 Regular 0.00 142.50 61285X1 Invoice 06/06/2025 Vehicle Maint. 19.82 0.00
61314 Invoice 06/06/2025 Vehicle Maint. 122.68 0.00
1965 SANTIAGO MELGOZA 06/06/2025 52164 Regular 0.00 200.00 052725 Invoice 06/06/2025 Reimbursement Request Sgt. Melgoza 200.00 0.00 2879 SKINNER EQUIPMENT REPAIR ATTN: TIMOTHY C 06/06/2025 52165 Regular 0.00 2,949.45 12616 Invoice 06/06/2025 Vehicle Maint. Fire Engine 2,949.45 0.00 2449 SMITH & ENRIGHT LANDSCAPING, INC. 06/06/2025 52166 Regular 0.00 884.00 1616 Invoice 06/06/2025 Canyon Creek Irrigation Repairs 404.00 0.00 1617 Invoice 06/06/2025 Meyer Park Irrigation Repairs 480.00 0.00 1771 SOCIAL VOCATIONAL SERVICES INC 06/06/2025 52167 Regular 0.00 305.25 24C2508-IN Invoice 06/06/2025 Janitorial Services 305.25 0.00 2673 SPECTRUM Charter Communications 06/06/2025 52168 Regular 0.00 1,199.00 170000701052125 Invoice 06/06/2025 Internet Services 1,199.00 0.00 4361 STAPLES, INC. Staples Contract & Commercial 06/06/2025 52169 Regular 0.00 254.44 6033440810 Invoice 06/06/2025 Office Supply 57.12 0.00
6033440811 Invoice 06/06/2025 Office Supply 197.32 0.00 4458 TAMSEN FORREST 06/06/2025 52170 Regular 0.00 105.00 250400531101 Invoice 06/06/2025 After Hr. Answering Services 105.00 0.00 3880 THE MAYNARD GROUP 06/06/2025 52171 Regular 0.00 284.39 IN2057107 Invoice 06/06/2025 Zoom 284.39 0.00
1890 THE SPCA OF MONTEREY COUNTY 06/06/2025 52172 Regular 0.00 3,920.00 4-25 Invoice 06/06/2025 SPCA APR 3,920.00 0.00
TLENGIN TL ENGINEERING 06/06/2025 52173 Regular 0.00 2,955.00 1713 Invoice 06/06/2025 Fifth Street SR25 Design 2,955.00 0.00 Packet Pg. 16
Attachment: Warrants #52108-52181 (3296 : Approve City Accounts Payable Warrants #52108-52181) Check Report Date Range: 05/28/2025 - 06/06/2025
6/9/2025 8:26:58 AM Page 5 of 6
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount 3670 T-MOBILE 06/06/2025 52174 Regular 0.00 1,584.79
June'25 Invoice 06/06/2025 Telecom 1,584.79 0.00
3175 TRANS UNION RISK AND ALTERNATI DATA SOLU 06/06/2025 52175 Regular 0.00 110.00 298157-202505-1 Invoice 06/06/2025 Trans Union May 2025 110.00 0.00 27 TRI - CITIES DISPOSAL 06/06/2025 52176 Regular 0.00 63,021.34 2025-05 Invoice 06/06/2025 Trash Services - May 2025 63,021.34 0.00 142 TRI-COUNTY FIRE PROTECTION, IN 06/06/2025 52177 Regular 0.00 63.64 65361A Invoice 06/06/2025 Fire Ext. 63.64 0.00
3577 U.S. BANK 06/06/2025 52178 Regular 0.00 1,288.85
050625KW Invoice 06/06/2025 Credit Card Purchases 1,288.85 0.00 3471 VERIZON WIRELESS 06/06/2025 52179 Regular 0.00 344.09 6112702843 Invoice 06/06/2025 Verizon - Broadband 344.09 0.00 VNCVET VNC VETERINARY CARE, INC 06/06/2025 52180 Regular 0.00 501.23 2786859 Invoice 06/06/2025 Injured Animal Care 501.23 0.00 2919 WAGEWORKS 06/06/2025 52181 Regular 0.00 50.00
INV7863175 Invoice 06/06/2025 Compliance Fees 13.33 0.00 INV7863179 Invoice 06/06/2025 Compliance Fees 36.67 0.00 IRS INTERNAL REVENUE SERVICE 06/06/2025 DFT0000110 Bank Draft 0.00 21,889.86 INV0000575 Invoice 06/06/2025 SOCIAL SECURITY WITHHOLDING 21,889.86 0.00 EDD EMPLOYMENT DEVELOPMENT DEPT. State of Ca 06/06/2025 DFT0000111 Bank Draft 0.00 6,688.49 INV0000576 Invoice 06/06/2025 CA STATE WITHHOLDING 6,688.49 0.00 IRS INTERNAL REVENUE SERVICE 06/06/2025 DFT0000112 Bank Draft 0.00 16,125.44 INV0000577 Invoice 06/06/2025 PAYROLL FEDERAL WITHHOLDINGS 16,125.44 0.00 IRS INTERNAL REVENUE SERVICE 06/06/2025 DFT0000113 Bank Draft 0.00 5,119.42 INV0000578 Invoice 06/06/2025 MEDICARE WITHHOLDING 5,119.42 0.00 Regular Checks
Manual Checks
Voided Checks
Discount
Payment
Payment Type Count
Bank Code POOL-MECHANICS Summary
Bank Drafts
EFT's
72 0
2 4
0 0.00

0.00 0.00

0.00 0.00
78 0.00
Payment
303,857.97

0.00 0.00
49,823.21

0.00 353,681.18
Payable
Count
131
0 0
4 0
135
Packet Pg. 17
Attachment: Warrants #52108-52181 (3296 : Approve City Accounts Payable Warrants #52108-52181) Check Report Date Range: 05/28/2025 - 06/06/2025
6/9/2025 8:26:58 AM Page 6 of 6
All Bank Codes Check Summary
Payment Type Discount
Payment
Count Payment
Payable
Count
Regular Checks
Manual Checks
Voided Checks
Bank Drafts
EFT's
72 0
2 4
0 0.00

0.00 0.00

0.00 0.00
78 0.00
303,857.97

0.00 0.00
49,823.21

0.00 353,681.18
131
0 0
4 0
135
Fund Name Amount Period
Fund Summary
999 Pooled Cash Fund 353,681.18 6/2025
353,681.18
Packet Pg. 18
Attachment: Warrants #52108-52181 (3296 : Approve City Accounts Payable Warrants #52108-52181) 6/9/2025 8:29:01 AM Page 1 of 2
Check Report
Gonzales, CA By Check Number
Date Range: 06/06/2025 - 06/06/2025
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Bank Code: POOL-MECHANICS-POOL-MECHANICS BANK
3577 U.S. BANK 06/06/2025 52178 Regular 0.00 1,288.85
Account Number Account Name Item Description Distribution Amount Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount 050625KW Invoice 06/06/2025 Credit Card Purchases 1,288.85 0.00 100-1600-52010 Special Departmental Exp… 86.47 Special Departmental Expenses 100-1600-52010 Special Departmental Exp… 62.15 Special Departmental Expenses 100-1600-52010 Special Departmental Exp… 92.75 Special Departmental Expenses 100-1600-52020 Dues & Subscriptions 843.03 Training
100-1600-52020 Dues & Subscriptions 64.75 Training
100-1600-52200 Other Contractual Services 75.95 Special Departmental Expenses 100-1600-52200 Other Contractual Services 63.75 Special Departmental Expenses Regular Checks
Manual Checks
Voided Checks
Discount
Payment
Payment Type Count
Bank Code POOL-MECHANICS Summary
Bank Drafts
EFT's
1 0
0 0
0 0.00

0.00 0.00

0.00 0.00
1 0.00
Payment
1,288.85

0.00 0.00

0.00 0.00
1,288.85
Payable
Count
1 0
0 0
0 1
Packet Pg. 19
Attachment: Warrants #52108-52181 (3296 : Approve City Accounts Payable Warrants #52108-52181) Check Report Date Range: 06/06/2025 - 06/06/2025
6/9/2025 8:29:01 AM Page 2 of 2
All Bank Codes Check Summary
Payment Type Discount
Payment
Count Payment
Payable
Count
Regular Checks
Manual Checks
Voided Checks
Bank Drafts
EFT's
1 0
0 0
0 0.00

0.00 0.00

0.00 0.00
1 0.00
1,288.85

0.00 0.00

0.00 0.00
1,288.85
1 0
0 0
0 1
Fund Name Amount Period
Fund Summary
999 Pooled Cash Fund 1,288.85 6/2025
1,288.85
Packet Pg. 20
Attachment: Warrants #52108-52181 (3296 : Approve City Accounts Payable Warrants #52108-52181) Finally on April 27th we celebrated a day that so many of us have been waiting for – the groundbreaking of the Dennis and Janice Caprara Community Center Complex. The day was In On Wednesday, May 7th, the Blue Zones National Team paid our community a visit. They wanted to see the Community Garden and the Mural that Blue Zones has worked with us on.

They were amazed by all the hard work and the City’s dedication to being a healthy and thriving community.

On May 22nd, we celebrated the unveiling of our beautiful new mural. If you have not seen it, I encourage you to stop by the Post Office to see it. It truly captured the Love, Care, and Connection we embody here in Gonzales.

Our Police Explorers under Corporal Castillo’s direction and in partnership with the Health Department, have been busy giving out bike helmets and
Speaking to pedestrians about road safety. If you see them out and about, stop by and say “Hi”.

Don’t forget to join us this June 25th for the Law
Enforcement Torch Run. The Run will start at the
Police Department and go to the Brand-New
Spartan Stadium. If you can’t join the run, cheer us
on starting at 9:25AM.

City of Gonzales
City Manager Report
May 2025
Packet Pg. 21
Attachment: City Manager Report - May 2025 (3305 : City Manager Report - May 2025) AGENDA
ITEM
7 Be Mindful of the Construction Work Happening on 5th Street from June 9 – 23, 2025 Important Reminder: The Pool is Now Open! See the Flyer for activity times and dates

Packet Pg. 22
Attachment: City Manager Report - May 2025 (3305 : City Manager Report - May 2025) City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

ACTIVITY 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: Activity Report

HOUSING
Vista Lucia Specific Plan. As of June 9, 2025, the applicant and staff are conferring on a few matters before scheduling final review with the City Council.
6 th Cycle Housing Element. A public hearing notice will be prepared for the Planning Commission to consider a Housing Element recommendation to the City Council on July 14, 2025. City Council will be scheduled to consider the matter on August 4, 2025.

The revised Puente del Monte Specific Plan is under review with reimbursement and consultant agreements in place. The staff consultant will work approximately 16 hours weekly focused on advancing this project.

The D’Arrigo 138-acre Site East of Hwy 101. Staff met with John Culligan on Monday June 9, 2025, to discuss opportunities for encouraging housing development on that land.

BUILDING DIVISION ACTIVITY
From May 1, 2025 through May 31, 2025 (31 reporting days), the City issued 22 permits for a garage ADU conversion, re-roofs, electrical work associated with solar installations, exterior stucco replacement, and demolition of 9 blighted labor camp structures at 825 Alta Street. The estimated value of improvements was $236,769.

AGENDA
ITEM
8 Packet Pg. 23

CODE ENFORCEMENT
Two cases were opened in May of 2025. One for an RV parked in a front yard, and a second for unpermitted construction.

ADMINISTRATIVE ITEMS
Staff is bringing in an Intern to the Community Development Department to facilitate projects related to business licensing, marketing Gonzales businesses, and monitoring and record keeping activities to improve departmental efficiencies and practices. The Intern will be paid through grants administered through Hartnell College at no salary expense to the City.

Staff continues to reach out to find people interested in the permanent Development Services Technician position.

Packet Pg. 24
City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 16, 2025
FROM: Carmen Gil, City Manager
SUBJECT: Community Engagement & Recreation Departments Activity Report Current Events
Kid Power
• For the month of May, Kid Power had a total of 30 children enrolled. We continue to focus on helping them with homework and making sure that they focus on work for the State testing to help them study.
• One of the core values we try to instill in students is the importance of collaborating and team building; we do this by having the students participate in team bonding games. We also took advantage of the warm weather during one of the hot days this month, and we let the children play on the slip and slide and have a water balloon fight.

AGENDA
ITEM
9 Packet Pg. 25
• As Kid Power comes to an end this month, we have had lots of parents compliment us on how well their children are doing in school. We have three that are moving on to Fairview so we had a small ceremony with a poster that all the kids made to show them that we will miss them.

City Sports League
• Our Youth Flag Football registration is still going on. Numbers are a little low compared to last season. So far, we have 35 registered participants. Hopefully, they continue to grow before the season begins. Season is set to start the week of June 9th. This season we will be collaborating with Greenfield and will be playing a couple games against them. • Adult co-ed summer Softball League is going strong. This season we have a total of 14 registered teams and 97 registered participants. We have enough teams to create 3 divisions. This season we will have an A, B, and C.
• We had such a wonderful season with our Mini T-ball League this year. Our season ended on May 17th, 2025. Medals and certificates were handed out to the kids after their game. The one thing these kids look forward to after every game is their team snacks. The medal they receive at the end of the season is a very close second. The smile and excitement on their little faces when they receive their medal is truly priceless. Our next sport for this age division will be soccer in September.
• Our South County Girls Softball League had their closing ceremony on May 23rd. We had a fun filled evening. All the girls received their medal and certificates. Then we all came together and enjoyed some delicious potluck food. All the teams came together and brought something to share. After we ate, we had a fun scrimmage with the 14U teams against their parents. The 14U girls won. A couple of the 14U division games got cancelled so we were able to extend the season a couple of weeks and added one last game for the girls to play. We were able to have them scrimmage against some players from the High School JV team. It should be a good and fun experience. This will allow them to see what the next level brings.

Packet Pg. 26
Recreation/ Community Engagement
• Our senior classes continued in the month of May with a total of 4 Chair Yoga Classes, 1 Cooking Class, and 1 Art class. We are happy to see the same familiar faces taking advantage of these classes. We also met with Alliance on Aging and are pleased to confirm the senior classes will continue beyond June. While Chair Yoga will be reduced to twice a month, we are grateful for the ongoing partnership and the opportunity to maintain these valuable programs. • In the month of May, we also celebrated our Student Intern Eliza Rodriguez, who graduated from CSUMB and committed 3 semesters of service learning to the City of Gonzales. We have an additional Student Intern, Ivan Caballero, who will be completing his service-learning hours with the City of Gonzales in December 2025.
• On May 7th, the Blue Zones Project Leads welcomed a visit from their national team and invited us to join them in Gonzales for a site tour. The visit highlighted several locations where the Blue Zones Project has dedicated time and funding, including our Community Garden and the newest Mural. At the Community Garden, additional partners such as the Resource Conservation District of Monterey County and CADRE Workforce Development were also present. Each organization had the opportunity to share their experiences with the garden and reflect on their key takeaways from the project.
• We are also pleased to announce the City of Gonzales office has been approved as a Blue Zones Approved Worksite - our partners at Blue Zones are planning to host a small celebration in the fall to commemorate this milestone.
• On Monday, May 19th, the Recreation Department participated in Senior Mock Interviews at Gonzales High School. Through this event, students are not only able to strengthen their job interview skills, but they also can receive feedback and learn about the different career pathways of the interviewers.

Packet Pg. 27
• On Thursday, May 22nd
, we hosted an intimate ribbon cutting ceremony for the unveiling of our new Mural on Fourth Street.

Aquatics
• In the month of May, we were able to complete the hiring process for all our Pool staff, including the recertification of returning staff. In total, we have 15 staff which includes 1 Pool Manager, 1 Assistant Pool Manager, 7 Lifeguards, and 6 Rec-Aids.
• We were able to have pool reservations go live via the Teamsideline website, and we currently have 5 Pool Reservations scheduled, creating a total of $2,310 in revenue. • The Gonzales Community Pool is scheduled to open on Tuesday, June 10th, and we will also begin accepting registrations for swim lessons that same day at the Community Pool.

Gonzales Youth Council
• The GYC Commissioners participated in a total of 4 South County Youth Summit Planning Meetings, one of which was a zoom meeting with the keynote speaker, Cynthia Moreno, Press Secretary for Speaker of the Assembly Robert Rivas.
• The GYC also hosted a total of 4 tabling events at the High School to help promote the South County Youth Summit Event. In the end, the event held on Saturday, May 24th, gathered a total of 67 students from South Monterey County. The event kicked off with an opening speech and panel interview from the keynote speaker followed by workshops, lunch, a resource fair and raffle! We would also like to acknowledge Mayor Jose Rios and Mayor Pro Tem Liz Silva for joining us.

The GYC concluded the month of May by hosting their last meeting of the school year on Thursday, May 29th. They used this time to also practice for their capstone presentation being held during the Council Meeting on Monday, June 2nd.

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City of Gonzales

FIRE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 16, 2025
FROM: Jason Muscio, Fire Chief
THROUGH: Carmen Gil, City Manager
SUBJECT: Fire Department Activity Report

RESPONSES
There were 75 calls for service during the Month of May, bringing the year-to-date total calls to 343.

Calls for service included 1 vehicle fire, 1 vegetation fire, 45 EMS calls including both medical aids and vehicle accidents, 17 service calls, 8 calls cancelled in route, and 2 false alarms. There was a vehicle pedestrian accident that resulted in minor injuries, and a serious accident in the rural district resulting in injuries. We provided mutual aid to our neighboring departments twice during the month.

STAFFING
The newly hired Firefighter Greg Classen will start on June 2, 2025, and will be on day shift for two weeks during his introductory period, it is expected that Classen will begin his regular shift assignment on June 17th. We currently have two active Volunteer Firefighters working shifts as time allows.

TRAINING
Crews continued training on wildland firefighting tactics and safety in preparation for fire season.

Engineer skills including hose lay deployment and water supply were also practiced.

EQUIPMENT
Water tender 8141 was out of service for several days due to an electrical issue, all other apparatus remains in service. Repair and recoating of the firehouse roof was completed, as well as removal of the built in BBQ pit from the apparatus bay. Work has begun on the new emergency operations center including installation of some furniture and security upgrades.

AGENDA
ITEM
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PREVENTION
Both business and residential rental inspections were conducted. Weed abatement inspections were conducted and property owners in violation were notified. This effort is ongoing. There was one Fire Station visit, and one classroom visit conducted.

GRANTS
The City was awarded $630,000 with CDBG funds through the County of Monterey to be put towards the purchase of a new Fire Engine. Staff is exploring options to complete it’s purchase as we have been quoted at $750,000.

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City of Gonzales

POLICE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 16, 2025
FROM: Keith Wise, Chief of Police
THROUGH: Carmen Gil, City Manager
SUBJECT: May 2025 Activity Report
Crime and Arrests
The Gonzales Police Department investigated 7 Part I Crimes (Homicide, Robbery, Theft, Burglary, Rape, Assault and Motor Vehicle Theft) during the month of May 2025. During the same time last year, there was 1 Part I Crimes investigated.

During the month of May 2025, Officers made 10 arrests. During the same time last year, there were a total of 12 arrests.

During the month of May 2025, the Department initiated 87 Abandoned Vehicle Abatement (AVA) / 72 hour parking violation cases. 81 violations were self-abated by the registered owners upon notification of the Municipal Code Violation.

Calls for Service
The Department responded to 659 calls for service in May 2025. There were 69 crimes, accidents, and information reports taken during the month.

Animal Control
During the month of May 2025, the Animal Control Officer (ACO) provided the following services:

Animal Control Trapped/Stray Dead Injured Bite Cases Returned to Owner
Transported
to the SPCA
Cats 0 2 0 0 0 0
Dogs 8 0 0 0 5 3
Total = 8 2 0 0 5 3
AGENDA
ITEM
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Significant Cases
Although the Police Department responded to 659 calls for service during the month of May 2025, the most significant cases involved 7 Part I crimes. 0- Homicide 0 – Rape - 0, - Robbery, 1 -Assault, 3 - Burglary, 0 -Larcenies, and 3 -Stolen Motor Vehicle Thefts.

Training
The Department continues to conduct in-house training.

Sergeant Herbert Bowen attended a Training Managers Course designed to provide law enforcement training managers with knowledge, theories, skills and insights essential to successfully carrying out the management of training within modern law enforcement organizations. The training was hosted at the Public Training Center in Windsor Ca. on May 6 - May 8, 2025.

Officer Alex Pruneda and Officer David Rivera attended a 24- hour Radar Operator course designed to provide information on the user of radar for speed enforcement, develop skills in speed estimation and actual operations of radar unit. This course was hosted at the California Highway Patrol Department in Hanford, Ca. on May 19 - May 21, 2025.

Officer Alex Pruneda and Officer David Rivera attended an 8-hour Radar-Lidar Operator course. This course describes the principles governing Lidar design and operation, using as an enforcement tool. This course was hosted at the California Highway Patrol Department in Hanford, Ca. on May 22nd.

Other
Officers attended the 27th Annual Monterey County Peace Officers Association memorial procession on May 7th from Salinas to Greenfield. The procession honored law enforcement Officers who have lost their lives in the line of duty.

Sergeant Melgoza and I attended the TAMC meeting at the Gonzales Police Department on May 14th regarding the Monterey County Regional Vision Zero action plan.

Officers attended the Gonzales Adventure Seeking Seniors luncheon on May 15th. Officer Rivera provided a presentation for fraud scam.

Explorers and Officers attended the Mural Ribbon cutting ceremony at Belden and Fourth Streets on May 22nd. During this ceremony, bicycle safety materials were handed out to community members in attendance.

Corporal Castillo and the Explorers participated in the Memorial Day Ceremony at the Gonzales Cemetery on May 26th honoring the men and women who gave their lives in service.

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City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

ACTIVITY 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: Public Works/City Engineer Departments Activity Report

WASTEWATER

1. Industrial Wastewater Pipeline – Construction of the IW Pipeline began on 11/04/2024 and is approximately 95% complete with final completion expected by 6/30/2025. Braga Fresh will be connected to the IW Pipeline on Sunday, 6/15/2025.

2. Industrial Wastewater Treatment Facility - The IW Treatment Facility contract was issued for public bid on 1/15/2025 and six bids were opened on 2/26/2025. As reported at the 3/17/2025 Council meeting, the submitted bids exceeded the project budget, so staff has requested a $6M Amendment to the $29M State Revolving Fund loan for the IW System. The City Council awarded the IW Treatment Facility contract to Gateway Pacific Contractors (low bidder) at the 5/19/2025 Council meeting. On 5/30/2025 SWRCB staff emailed City staff that our $6M SRF Amendment has been approved. Staff will recommend issuance of the Notice to Proceed at the 6/16/2025 Council meeting.

3. Wastewater Treatment Plant (WWTP) – Staff continues to deal with slow percolation at the three Disposal Ponds and will discharge treated wastewater onto a bermed area at the site of the future IW Treatment Facility. Staff have been in touch with Regional Board staff on this effort to drain and rehabilitate the disposal beds. A geotechnical consultant will take borings at the Emergency Basin to determine an approach to improving its percolation.

BUILDINGS

1. Fire Station Roof – On 5/28/2025 SSB Construction completed the roof recoating project. City PW and Fire staff removed the BBQ pit and exhaust stack prior to the work so the opening in the roof could be covered with plywood and an underlayment prior to the roof work. Funding for this $24,000 project is from the County thanks to Supervisor Chris Lopez.

AGENDA
ITEM
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2. Community Center Complex Project – The project is on schedule to be completed by December 1, 2025. Last week staff and the construction team presented the project and provided a site tour to three high school classes. On 6/03/2025 staff, the City Attorney and the construction manager met with County staff to discuss the 20-year lease for the County Library. Staff discussed the delivery of electric power with PG&E Government Affairs staff on 6/09/2025.

The construction team will provide an update at the 7/21/2025 Council meeting. The on-site project camera can be accessed at this link:
https://share.earthcam.net/GonzalesCommunityCenter/gonzales_community_center_complex/camera /view_1/timelapse

STREETS

1. Fourth Street Pavement Rehab – Staff authorized Harris Associates to prepare the construction documents to reconstruct the 100 Block of Fourth Street and the 400 block of Alta Minor. A Kick-off meeting and site walk were held on 5/6/2025. Funding is $636,150 in SB 1 funding.

2. TAMC Safe Routes to School Program - Staff engaged TL Engineering to design the Pedestrian Safety Improvements along Fifth Street from the Southbound Highway 101 on/off ramps. A site walk was held on 5/05/2025. Funding is a $250,000 RSTP grant from the TAMC.

3. Fifth Street Truck Ban – Staff plans to present the bid results for the truck ban signage at the July 21 Council meeting

SOLID WASTE

1. Tri-Cities Disposal Franchise Agreement – Staff is presenting a new Franchise Agreement with TriCities Disposal at the 6/16/2025 Council meeting.

2. Quarterly Tri-Cities Franchise Meetings – Staff from the Salinas Valley Solid Waste Authority, TriCities Disposal and the cities of Gonzales, Soledad, and Greenfield meet on a quarterly basis to discuss the various waste collection programs (commercial accounts, food waste, organic waste), compliance with latest state regulations, public outreach and education, customer surveys, etc.

OTHER PROJECTS

1. Emergency Preparedness – The PW Director and PW Supervisor meet monthly with Fire Chief Muscio and Police staff to discuss Emergency Preparedness. Topics include tabletop exercises, emergency notifications to residents and outfitting the Emergency Operations Center. The City’s Emergency Operation Center (EOC) is being set-up in the space in the Old Medical Building in the space recently vacated by Sun Street Centers.

2. Geographic Information System (GIS) – City staff continues to work on the City’s GIS mapping system by inputting field data for water, sewer and storm drainage systems. Staff hold monthly meetings with ProWest (GIS consultant) to seek their assistance with our mapping efforts. Other mapping efforts include assessing sidewalks to map uplifted or missing sidewalk panels and performing a street sign inspection.

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PUBLIC WORKS OPERATIONS AND MAINTENANCE

WASTEWATER
Staff check the influent and effluent, run daily inspections and testing of Dissolved Oxygen levels, pH, and conductivity at the wastewater treatment plant on a daily basis.

The disposal ponds are full. Staff have requested an Addendum to our discharge permit, to land apply effluent to the fields at the new Industrial Treatment Facility site. Staff have prepared to land apply for the next 6 weeks in order to relieve the plant of excess effluent.

Staff have found that an old brick manhole on Fifth Street needs repair, as it is moving when traffic crosses it. Staff is determining the best option for rehabilitating this manhole. The City has about fifty brick manholes in its system.

WATER
Staff tests for chlorine residual daily, and maintenance on the water system. Staff repairs chlorine leaks and performs maintenance on the wells.

Staff taking residuals at the Processing Facilities
For the month of May, all water samples taken at the sampling stations for the water system tested negative for coliform.

Staff addressed one water leak this month. This leak was going to mean a major shutdown of the water distribution system. Staff and West Valley were able to repair the leak without a shutdown.

Water Leak on Fanoe Road
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There were forty-eight door tags this month, prior to shut offs. We had four disconnects because of nonpayment.

PARKS
Staff mows turf areas in the City parks regularly. Staff cleans restrooms, cleans trash, and make repairs in parks. Staff repair and maintain irrigation in Central and Centennial Park.

Staff weed and clean Bio Swales and the redwoods regularly.

GOVERNMENT BUILDING
Staff clean the Vosti Center restrooms daily. Staff cleans the Council Chambers weekly. Staff orders all supplies for City buildings and disburses them appropriately.

Staff aided the Fire Dept. by removing the BBQ pit from the Firehouse. Staff also removed the vent hood to prepare for the roofing project.

Staff removing the fire pit from the Firehouse.

STREETS
Precision Concrete Cutting completed another phase of sidewalk cutting. Staff repaired and replaced street signs that were damaged and/or knocked over.

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Signs needing replacement.

EVENTS
Staff assisted the community garden for days where Cadre and Blue Zones were onsite planting the pollinator garden.

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City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 16, 2025
FROM: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-23 List of Services & Programs FY 2025-2026 Funded with Tax Proceeds from the Measure K TUT

RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2025-23, A Resolution of the City Council of the City of Gonzales Approving the Prioritized List of Services and Programs to be Funded with Tax Proceeds Received from the Measure ‘K’ Transaction and Use Tax, During Fiscal Year 2025-2026, Including Funding Allocations.

BACKGROUND
In November 2014, 65 percent (65%) of Gonzales voters approved Measure ‘K’, enacting a one-half percent (0.5%) transactions and use tax. Included with the passage of the Measure ‘K’ Transaction and Use Tax was the formation of an Oversight Committee to monitor and provide advisory recommendations to the City Council regarding the use of the tax revenues. The formation of the Oversight Committee was instrumental to the passage of Measure ‘K’ and was necessary to maintain the public transparency needed for the use of these funds.

REVIEW & ANALYSIS
The Measure K Oversight Committee met on June 3rd, 2025, to review and discuss the list of potential projects/programs to fund with the Measure ‘K’ tax proceeds.

Exhibit ‘A’ is a list of proposed programs and services they are recommending to be funded with the Measure ‘K’ Transaction and Use Tax (TUT) during Fiscal Year 2025-2026.

Revenues from Measure K are projected to be about $800,000 in Fiscal Year 2025-2026.

AGENDA
ITEM
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Recommended FY 2025-2026 Funding Priorities
Exhibit ‘A’ of the Resolution is a matrix that details the recommended projects and programs for FY 2025-2026. The programs are broken down as follows:
• Group 1 are “High Priority” projects that are recommended for continued funding. • Group 1A are Additional Project/Program recommended for FY 2025-2026.

Recommended for FY 2025-2026 - Group 1

1. Fund the debt service for the renovation of the Community Pool. ($130,000) On March 7, 2016, the City Council approved a financing plan for the Community Pool Improvement Project. The approved financing plan includes private placement financing of approximately $1.5 million for a period of fifteen (15) years at an interest rate of 2.88%. The annual debt service payment is slightly less than $130,000, which staff recommends be funded through the proceeds received from the Transaction and Use Tax. This obligation will carry-forward to cover the annual debt service until the debt service is paid off or as long as the tax is in place.

2. Fund Youth Services/Development Activities ($30,000), including: (a) Youth Services/ Development Staffing; (b) Gonzales Youth 21st Century Success Initiative (GY21CSI), and the Gonzales Youth Council, etc. The City Council continues to consider the funding of services for youth programs and development to be of a high priority.

After School ‘Kid-Power’ Program ($90,000). In 2017, the City of Gonzales, created Kid Power to complement the Gonzales Unified School District after-school program known as A.S.E.S (After School Education and Safety Program). The ‘Kid-Power’ program now stands independent of A.S.E.S and has become a staple in the community. The program provides recreational enrichment and homework support, and other educational assistance and programming. In line with the City’s youth initiative, the funding has allowed the City to provide additional resources and programs for youth.

Gonzales Day Camp ($75,000): The City’s Recreation Department’s Summer Day Camp has been a community favorite since its inception in 2016. As proposed, the day camp will continue to provide the means for parents, and families to have reliable day care for their children for the entire 8 weeks that school is not in-session during the summer months. As envisioned, the program will have a 1 to 12 adult-to-child ratio for each group of children. Children would be grouped by ages to keep activities age appropriate for all children.

Summer Day Camp will include daily swimming, environmental education, STEM activities, character education, service learning, arts and crafts, group games, daily reading activities, walking trips to parks and the library, participation in popular City activities such as Fun in the Garden, the Kid’s Safety Academy, once a week field trips, and City-sponsored learning activities.

To keep the cost affordable for families, maintain and expand the program1, the proposed budget and recommended Measure ‘K’ funds allocation is $75,000, which will be used to offset the cost of staff for the program which sees approximately 100 participants. Because the program will be funded with City of Gonzales tax monies, the reduced rate program will continue to be limited to those who can show proof that at least one parent or guardian either lives or works in Gonzales.

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3. Community Action Grants ($30,000): This program has been very successful and has become a staple in the community. This funding allows local community groups, and advocates to perform a service for the community through various unique activities (e.g., Senior Services, Adult Learning, Child Services, Educational Advancement, Quality of Life and Economic Development).

4. Police Department Community Policing and Events ($5,000): This supports the PD's community outreach efforts that include National Night Out and the development of trading cards and coins to share with the community.

5. Senior Programming ($20,000): Based on input from the community, MKOC and the Council, staff is recommending the continued funding of this effort. In FY 2024-2025, support for this program was used to develop international partnerships to bring programming to the community for this specific population. In FY 2025-2026, we plan to continue with these efforts through this program support.

6. Three full-time Fire Fighter positions to Augment Services ($250,000): The Gonzales Fire Department has a long and rich history of utilizing volunteers to cover the community; however, with the increased large fires that annually appear to plague the State, CalFire is keeping their temporary/seasonal positions longer, which has made it very difficult for department to attract volunteers. With the support of the TUT Measure K Committee, 3 eight-month seasonal Firefighter positions were approved and added in FY 2021-2022; however, because Firefighters are in such high demand and Cal Fire is making it more difficult to retain Firefighters, in order to provide the level of coverage needed for our Community, the Council approved converting the three seasonal positions to full time.

7. Fire Truck Purchase ($120,000): City staff has been able to secure $630,000 in CDBG funding towards the purchase of a Fire Truck from the County; however, there is a shortfall of $120,000 to complete the purchase. The current fire trucks are both over 15 years old and have a lot of mechanical problems. Without these additional funds, we would not be able to purchase the truck, and it will be hard for us to keep up with continued escalating costs.

8. City Sports Programming ($10,000): Our City Sports leagues continue to grow each year, not only are there more participants in our programs, but we have made more sports available. There is also added interest in other sports leagues that we are attempting to start up with other cities.

These funds allow us to continue to provide a variety of healthy activities and options for our residents.

Recommended for FY 2025-2026 - Group 1A

9. Truck Ban Work and Signs ($30,000): City staff has secured $52,000 for the work of purchasing and installing Truck Ban signs throughout the City and on Highway 101. However, there is a shortfall to complete the project. These additional funds would allow us to complete the project in order to help protect our streets from further deterioration.

10. Aquatics Programming ($10,000): This support allows the City to continue to provide aquatics programming to the entire community. The current pool fees do not offset the costs of pool repairs and staffing. These funds would allow us to continue providing an adequate level of service and the staffing needed to run the facility.

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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 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
Explain: The Measure ‘K’ Transaction and Use Tax offers a significant source of funds for the City to undertake public projects that it might otherwise not be able to do. When there are budget constraints, the first programs to go are always recreation and non-mandate public facing services. With Measure K funds those programs are able to continue, and thus we can continue to support our mission and vision of having a healthy and thriving community.

City services will be delivered in a cost-effective, respectful and friendly manner to insure 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.

Explain: Please refer to the explanation written above for the Vision.

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 X Yes No N/A
Explain: The formation of the Measure ‘K’ Oversight Committee ensures transparency regarding how tax resources are allocated amongst the five areas described above. They then provide their recommendations to the City Council for approval.

BUDGET
Staff is projecting that Measure K will bring in approximately $800,000 in Fiscal Year 2025-2026.

CONCLUSION
It is recommended that the City Council adopt Resolution No. 2025-23, A Resolution of the City Council of the City of Gonzales Approving the Prioritized List of Services and Programs to be Funded with Tax Proceeds Received from the Measure ‘K’ Transaction and Use Tax, During Fiscal Year 2025-2026, Including Funding Allocations.

Attachments:

1. Resolution No. 2025-23
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RESOLUTION NO. 2025-23

A RESOLUTION OF THE GONZALES CITY COUNCIL APPROVING THE

PRIORITIZED LIST OF SERVICES AND PROGRAMS TO BE FUNDED WITH TAX PROCEEDS RECEIVED FROM THE MEASURE ‘K’ TRANSACTION AND USE TAX, DURING FISCAL YEAR 2025-2026, INCLUDING FUNDING ALLOCATIONS WHEREAS, on November 4, 2014, 65 percent (65%) of Gonzales voters approved Measure ‘K’, enacting a one-half percent (0.5%) transactions and use tax; and WHEREAS, included with the passage of the Measure ‘K’ Transaction and Use Tax, was the formation of an Oversight Committee to monitor and provide advisory recommendations to the City Council with regard to the use of the tax revenues; and WHEREAS, formation of the Measure K Oversight Committee (MKOC) was instrumental to the passage of Measure ‘K’, and necessary to maintain the public transparency needed for the use of these funds; and
WHEREAS, on November 3, 2020, the voters extended term of the City’s TUT, set to expire in 2024, through 2044; and
WHEREAS, on June 3, 2025, the Oversight Committee met, reviewed, and discussed a list of possible services and programs to fund with tax proceeds premised on the City’s Mission and Vision Statements; and
NOW, THEREFORE, BE IT RESOLVED that the Gonzales City Council Approves the recommended list of funded priorities by the Measure ‘K’ Oversight Committee, attached hereto as Exhibit A.

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 votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
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Attachment: Resolution No. 2025-23 (3293 : Resolution No. 2025-23 Measure K List of Services & Programs FY 2025-2026 Funded with Measure FY 2025-2026
Final Budget
Remaining
Funds Notes
$800,000
1 $130,000 $670,000.00 Annual debt service.
$20,000 $650,000.00
$10,000 $640,000.00
$90,000 $550,000.00
$75,000 $475,000.00
3 $30,000 $445,000.00 These funds support the Community Action Grants that have become a staple in the community. 4 $5,000 $440,000.00 Supports the PD's community outreach efforts that include several events, National Night Out, trading cards and coins to share with the community.
5 $20,000 $420,000.00 This funding allows us to support more senior and adult programming through services that support increased physical activity, engagement and prevention. 6 $250,000 $170,000.00
The Gonzales Fire Department has a long and rich history of utilizing volunteers to cover the community, however, with the increase large fires that annually appear to plague the State, Cal Fire is keeping their temporary/seasonal positions longer, which has made it very difficult for department to attract volunteers.

With the support of the TUT Measure K Committee, 3 eight-month seasonal fire fighter positions were approved and added in FY 2021-2022; however, because fire fighters are in such high demand and Cal Fire is making it more difficult to retain fire fighters, in order to provide the level of coverage needed for our Community the Council approved converting the three seasonal positions to full time. 7 $120,000 $50,000.00 This funding would allow us to support the purchase of the Fire Truck for the Gonzales Fire Department. The Department currently has secured $630,000 but has a shortfall of $120,000. 8 $10,000 $40,000.00
City sports leagues continue to grow each year, not only are there more participants in the programs but we have made more sport options available. These funds will continue to support that work and allow us to provide a verity of healthy activity options for our residents. 9 $30,000.00 $10,000.00 These funds will help us close the gap on the purchase and install large Truck Van signs along HWY 101 and within the City to help protect our city streets from Further deterioration. 10 $10,000 $0.00
This allows the City to continue to provide aquatics programming to the entire community. The current pool fees do not offset the costs of pool repairs and staffing. These funds would allow us to continue providing an adequate of level of service and the staffing needed to run the facility. 11 $0 $0.00 This program provides STEM opportunities for our youth. Olinga "Wings of Knowledge" Youth STEM Program
Group 1A "High Priority" Project ( FY 2025-2026)
Help offset the cost of 3 new fulltime Fire
Fighter positions to augment and maintain
the high level of fire services for the
community.

Truck Ban Work and Signs
Community Action Grants
Police Dept. Community Policing
Senior/Adult Programming
City Sports Program
Aquatics Programming
Fire Truck Purchase

EXHIBIT 'A'
Recommended Projects/Programs and Funding Allocations for FY 2025-2026 Measure 'K' Revenue
Estimated TUT Revenue
2 Projects
Community Pool Debt Service
Youth Services /Development:
-After-School Kid Power Program This continues the award winning efforts that where recognized by the Robert Wood Johnson Foundation (RWJF) in 2019. It supports our Kid Power and Day Camp programs.

This continues the award winning efforts that where recognized by the Robert Wood Johnson Foundation -Gonzales Youth 21st Century Success (RWJF) in 2019. It supports a multitude of programs that work to build local youth leadership opportunities.

Initiative (GY21CSI)
Group 1 "High Priority" Projects (Annually Funded)
-Gonzales Day Camp
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Attachment: Resolution No. 2025-23 (3293 : Resolution No. 2025-23 Measure K List of Services & City of Gonzales

CITY ATTORNEY DEPARTMENT

STAFF REPORT
TO:

DATE:

FROM:

Honorable Mayor/Chair/President Rios and City Council/Successor Agency/Successor Housing Agency/Gonzales Electric Authority Board/Gonzales Municipal Electric Utility Board June 16, 2025
Michael Rodriquez, City Attorney
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-42 Extending the Employment Agreement with Carmen Gil

RECOMMENDATION
It is recommended that the Council/Agency/Board Resolution No. 2025-42, A Joint Resolution of the City Council of the City of Gonzales/Gonzales Successor Agency/Gonzales Successor Housing Agency/Gonzales Electric Authority/Gonzales Municipal Electric Utility Extending the Employment Agreement with Carmen Gil.

BACKGROUND/ANALYSIS
The City of Gonzales, Gonzales Successor Agency, Gonzales Successor Housing Agency, Gonzales Electric Authority, and Gonzales Municipal Electric Utility (hereafter collectively “the City”) entered into an Employment Agreement (the “Agreement”) for city manager and various director and executive director services with Carmen Gil (hereafter “Gil”) on June 6, 2023. The term of said agreement expired on June 6, 2025.

The City Council has expressed its desire to extend or restate and approve a new agreement with Gil for such services at the same time it performs her annual evaluation. In order to facilitate adequate time to complete the planned evaluation and negotiate, prepare and consider approval of an extension or new Employment Agreement, the Council/Agency/Board desires to adopt a short- term interim-extension of the Agreement. With the planned evaluation process set to start this evening, June 16th, and taking into consideration the Council’s meeting schedule which calls for only one meeting in July, staff is recommending that Gil’s contract be retroactively extended to August 31, 2025.

AGENDA
ITEM
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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.

Explain: Ms. Gil has been working hard over the past two years with the Council and related City Boards and staff to maintain City operations, and implement numerous projects and programs that contribute to the City’s safety, cleanliness and charm in a cost-efficient and timely manner. An extended or new employment contract with Gil will allow this work to continue.

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.

ALTERNATIVES
None at this time.

BUDGET IMPACT
Adoption of the resolution should have no adverse impact on the budget. Funding for the City Manager/Executive Director/Director’s compensation has been accounted for in the Fiscal Year 2025- 2026 Budget.

CONCLUSION
It is recommended that the Council/Agency/Board Resolution No. 2025-42, A Joint Resolution of the City Council of the City of Gonzales/Gonzales Successor Agency/Gonzales Successor Housing Agency/Gonzales Electric Authority/Gonzales Municipal Electric Utility Extending the Employment Agreement with Carmen Gil.

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Attachments:

1. Joint Resolution No. 2025-42
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RESOLUTION NO. 2025-42

A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GONZALES/GONZALES SUCCESSOR AGENCY/GONZALES SUCCESSOR HOUSING

AGENCY/GONZALES ELECTRIC AUTHORITY/GONZALES MUNICIPAL ELECTRIC

UTILITY EXTENDING THE EMPLOYMENT AGREEMENT WITH CARMEN GIL WHEREAS, the City of Gonzales, Gonzales Successor Agency, Gonzales Successor Housing Agency, Gonzales Electric Authority, and Gonzales Municipal Electric Utility (hereafter collectively “the City”) entered into an Employment Agreement (the “Agreement”) for City Manager and various Director and Executive Director services with Carmen Gil (hereafter “Gil”) on June 6, 2023; and WHEREAS, the term of said agreement expired on June 6, 2025; and WHEREAS, the City Council has expressed its desire to extend or enter into a new agreement with Gil for such services at the same time it performs her annual evaluation; and WHEREAS, in order to facilitate adequate time to complete the aforesaid evaluation and development of an Agreement extension or new Agreement, the Council desires to adopt a short- term interim extension of the Agreement until August 31, 2025.

NOW THEREFORE, BE IT HEREBY RESOLVED by the Gonzales City Council/ City Council as Board of the Gonzales Successor Agency/the Board of the Gonzales Successor Housing Agency/the Board of the Gonzales Electric Authority/the Board of the Gonzales Municipal Electric Utility that the Employment Agreement between said parties and Carmen Gil is hereby retroactively extended, from June 7 through August 31 of 2025.

PASSED AND ADOPTED by the City Council/City Council Acting as Successor Agency Board of the Gonzales Redevelopment Agency/ Board of the Gonzales Successor Housing Agency/Board of the Gonzales Electric Authority/Board of the Gonzales Municipal Electric Utility at a regular meeting held on the 16th of June, 2025, by the following vote:

AYES, and in favor thereof, Council Members/Successor Agency Members/Successor Housing Agency Members/Electric Authority Members/Electric Utility Members:

NOES, Council Members/Successor Agency Members/Successor Housing Agency Members/Electric Authority Members/Electric Utility Members:

ABSTAIN, Council Members/Successor Agency Members/Successor Housing Agency Members/Electric Authority Members/Electric Utility Members:

ABSENT, Council Members/Successor Agency Members/Successor Housing Agency Members/Electric Authority Members/Electric Utility Members:
______________________________________
Jose L. Rios, Mayor/Chairperson/Chairperson
President/President
ATTEST:
_______________________________________
Mary Villegas, City/Agency/Agency/Authority/
Utility/Deputy Clerk
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Attachment: Resolution No. 2025-42 JOINT Resolution (3302 : Resolution No. 2025-42 JOINT RESOLUTION Extending Agreement with Carmen 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 No. 2025-44 Harris & Associates Task Order #3

RECOMMENDATION
It is recommended that the City Council Adopt Resolution 2025-44, A Resolution of the City Council of the City of Gonzales Authorizing Task Order #3 under a Master Services Agreement with Harris Associates for Construction Management Services on the Community Center Complex Project During FY 2025-26 for a Not-to-Exceed amount of $218,873.

BACKGROUND
Construction of Phase 1 of the Community Center Complex has been underway since June 10, 2024.

Phase 1 will construct Building A which is comprised of the County Library, Teen Innovation Center, office space, restrooms, and a central courtyard, 100-space parking lot and landscaping.

Phase 2 which is estimated to cost $15M will construct Building B which will be a Community Hall, Fitness Center, commercial kitchen, meeting rooms and additional restrooms.

Harris Associates was selected through a Request for Qualification process to provide Construction Management services on the Community Center Complex project. Their Master Services Agreement and Task Order #1 was approved at the September 18, 2023 Council meeting.

Task Order #2 with Harris Associates for Construction Management Services during FY 2024/25 was approved at the July 22, 2024 Council meeting.

AGENDA
ITEM
15 Packet Pg. 48

REVIEW AND ANALYSIS
Estimated Harris billings through the end of FY2024-25 are projected to be $737,393, leaving a balance of $233,116 that will rollover to FY 2025-26. Therefore, Task Order #3 for Harris Associates services during FY 2025/26 is estimated to be $218,873 for a total authorization of $1,189,382.

Harris Associates staff has done an excellent job on the Community Center Project and staff recommends the City Council authorize the Task Order #3 for their services during FY2025/26 in the amount of $218,873.

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: Constructing a Community Center will provide residents with a facility for a wide variety of public and private functions, recreation programs and other activities which will enhance the quality of life of Gonzales residents.

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

ALTERNATIVES
Amend or modify staff’s recommendation.

BUDGET IMPACT
Authorizing Task Order No. 3 with Harris Associates entails encumbering $218,873 in Fund 112-000- 52210.

Packet Pg. 49

CONCLUSION
It is recommended that the City Council Adopt Resolution 2025-44, A Resolution of the City Council of the City of Gonzales Authorizing Task Order #3 under a Master Services Agreement with Harris Associates for Construction Management Services on the Community Center Complex Project During FY 2025-26 for a Not-to-Exceed amount of $218,873.

Attachments:

1. Resolution 2025-44

2. Task Order #3 with Harris Associates for Construction Management Services Packet Pg. 50
RESOLUTION NO. 2025-44

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES AUTHORIZING TASK ORDER #3 UNDER A MASTER SERVICES AGREEMENT WITH

HARRIS ASSOCIATES FOR CONSTRUCTION MANAGEMENT SERVICES ON THE COMMUNITY CENTER COMPLEX PROJECT DURING FY 2025-26 FOR A NOT-TO-EXCEED AMOUNT OF $218,873
WHEREAS, design and construction of the Community Center Complex Project is funded by a variety of sources including the Measure X (local sales tax), $5.0 M State grant secured by State Senator Anna Caballero, Community Development Block Grant monies, $1.8M County contribution to relocate existing library from the Gonzales Shopping Center, various grants, and a Capital Campaign; and WHEREAS, Harris Associates was selected to provide Construction Management services through a Request for Proposals process; and
WHEREAS, A Non-Exclusive Master Services Agreement with Harris Associates along with Task Order #1 for Construction Management services for FY 2023-24 was approved at the September 18, 2023 Council meeting; and
WHEREAS, Task Order #2 for Construction Management services during FY 2024-25 was approved at the July 22, 2024 Council meeting; and
WHEREAS, Harris Associates continues to provide excellent Construction Management services on this important city project; and
WHEREAS, City staff recommends the City Council authorize Task Order #3 with Harris Associates under their Master Service Agreement for Construction Management Services during FY 2025-26 in a not-to-exceed amount of $218,873 per their May 29, 2025 proposal.

NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Gonzales that the City Manager is authorized to execute Task Order #3 with Harris Associates under their Master Service Agreement for Construction Management Services in a not-to-exceed amount of $218,873 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 16
th 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. 51
Attachment: Resolution 2025-44 (3304 : Resolution No. 2025-44 Harris & Associates Task Order #3) Task Order No. 3 to the Consulting Services Agreement Between City of Gonzales and Harris & Associates for Construction Management Services on the Gonzales Community Center Complex Project This is Task Order No. 3 under the Non-Exclusive Consulting Services Agreement dated September 18, 2023 between the City of Gonzales, a municipal corporation of the State of California ("City") and Harris & Associates ("Consultant”) for Construction Management Services on the Community Center Complex Project. City and Consultant agree to the following changes to the Agreement:

Section 1 - Services
Harris & Associates will provide Construction Management and Inspection Services for the Community Center Complex Project during FY 2025-26 as outlined in Harris & Associates’ May 29, 2025 proposal (attached)
Section 2 - Compensation
City will pay Consultant an additional sum of $218,873 on an hourly not-to-exceed basis.

Compensation to Harris & Associates under Task Orders 1, 2 and 3 will not exceed $1,189,382.

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

CITY CONSULTANT
City of Gonzales, a municipal corporation Harris & Associates _____________________________ _____________________________ Carmen Gil, City Manager Matt Nethercutt, Practice Director, Construction Management
Date Signed: __________________ Date Signed: __________________ Packet Pg. 52
Attachment: Task Order #3 with Harris Associates for Construction Management Services (3304 : Resolution No. 2025-44 Harris & Associates 60 W. Alisal, Suite 200, 2
nd Floor, Salinas, CA 93901 ◼ p: 831.789.8670 ◼ www.WeAreHarris.com May 29, 2025
Patrick Dobbins
Public Works Director/City Engineer
City of Gonzales
Gonzales, CA 93926
RE: Harris & Associates Agreement for PM/CM Services FY25-26 (Gonzales Community Center Complex) Dear Patrick:

I am submitting this narrative to outline the compensation breakdown by fiscal year for Harris & Associates’ agreement with the City of Gonzales, covering Project Management and Construction Management (PMCM) services for the Gonzales Community Center project. This breakdown supports our FY25-26 PMCM fee request in the amount of $218,873.

During Fiscal Year 2023 (FY23-24) the City of Gonzales selected Harris & Associates through a competitive RFP process to provide Project Management and Construction Management (PMCM) services for the Gonzales Community Center Complex. Harris’ Proposed Fee for the project was $1,552,890. Following negotiations, the City and Harris agreed upon a time-and-materials (T&M), not-to-exceed fee of $1,433,510.

The City issued Harris a Master Services Agreement with compensation structured across three fiscal years— FY23-24, FY24-25, and FY25-26—corresponding to three separate task orders Task Order 1 (FY23–24) was authorized at $452,876, followed by Task Order 2 (FY24–25) with an additional $517,633, bringing the cumulative authorization through FY24–25 to $970,509. Estimated Harris billings through the end of FY24-25 are projected to be $737,393, leaving a balance of $233,116 that will rollover to FY25-26.

By utilizing the savings to date, Harris was able to onboard the following subconsultants, required for the project, without any additional fee increase:
• Group 4 Architecture (Amendment 1)
• Albion Environmental (Amendment 2)
• Cypress Engineering (Amendment 3)
Estimated costs and expenses associated with these amendments are detailed in the table below.

Amendment Fee Estimate Billings Through April 2025 Balance 1 $33,000.00 $355.35 $32,644.65
2 $45,815.33 $7,354.74 $38,460.59
3 $24,600.00 $4,612.50 $19,987.50
Subtotal: $103,415.33 $12,322.59 $91,092.74
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Attachment: Task Order #3 with Harris Associates for Construction Management Services (3304 : Resolution No. 2025-44 Harris & Associates 2 For FY25–26 (Task Order 3), Harris’ estimated fee is $451,989, which includes $91,092 in remaining subconsultant fees associated with Amendments 1 through 3. After applying the $233,116 authorization rollover from FY24–25, the net authorization request for Task Order 3 is $218,873, covering services through January 2026.

This authorization brings the total estimated agreement fee to $1,189,382—reflecting a 17% savings compared to the original agreement estimate. A breakdown of the task orders is provided in the table below, along with the original project staffing plan for reference.

Sincerely,
Luis Flores
Construction Manager
Fiscal Year Task Order Agreement PMCM Fee Estimate Updated PM/CM Fee Estimate FY23-24 1 $452,875.95 $452,876
FY24-25 2 $639,586.50 $517,633
FY25-26 3 $341,048.43 $218,873
Total: $1,433,510.88 $1,189,382
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Attachment: Task Order #3 with Harris Associates for Construction Management Services (3304 : Resolution No. 2025-44 Harris & Associates City of Gonzales
Community Center
Fee Proposal Worksheet FY25-26
Fee Estimate Total Hours Total Fees
25/26
Rate May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 168.00 160.00 176.00 168.00 168.00 176.00 144.00 176.00 160.00 PM - Matt Nethercutt $ 270 12.0 6.0 15.0 12.0 15.0 12.0 12.0 15.0 12.0 93 $ 25,147 Construction Manager - Luis Flores $ 220 159.6 152.0 167.2 159.6 159.6 167.2 136.8 167.2 152.0 1,110 $ 243,629 Civil Inspector - TBD (prevailing wage)* $ 200 24.0 24.0 16.0 16.0 56 $ 11,205 Administration $ 137 21.8 20.8 22.9 21.8 21.8 22.9 47.5 58.1 52.8 248 $ 34,044 Scheduler - Rowecon $ 233 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 48 $ 11,162 Labor Compliance $ 183 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 168 $ 30,709 Total Hours 225.4 234.8 261.1 241.4 244.4 234.1 228.3 272.3 240.8 1,722 $ 355,897 Monthly Fee 45,706 47,022 54,960 50,736 51,547 49,346 46,056 54,993 48,258 Reimbursable / vehicle allowance $ 5,000
FY25-26 Fee: $ 360,897
Cumulative totals
Hours 225.4 460.2 721.3 962.8 1,207.2 1,441.3 1,669.6 1,942 2,182.7 Dollars 45,706 92,729 54,960 105,696 157,243 206,590 252,646 307,638 355,897 Qualifications: Authorized to Date FY23-24 & FY24-25: $ 970,509.00

1. Office space / trailer, furniture, copier & data connection within project building shall be provided by the City or DBE. Projected Billings through June 2025: $ 737,392.56

2. Office supplies, if any, purchased for the field office at the project site shall be reimburseable at cost + 7.5%. FY24-25 Rollover: $ 233,116.44

3. Rates escalate at 4% at the beginning of the City's Fiscal year in June

4. Vehicle cost for inspector will be $50/day. FY25-26 Estimated Harris Fee: $ 360,896.67

5. Harris does not markup scheduler's hourly rate $ 91,092.74

6. Fee is based on the schedule duration given by the City and shown above. If the contract time is extended, Harris fee will be adjusted accordingly. $ 451,989.41 $ 233,116.44
$ 218,872.98
Total Harris Authorization: $ 1,189,381.98
Original Fee: $ 1,433,510.88
Savings: $ 244,128.90
% Savings: 17%
FY24-25 Rollover:

FY25-26 Fee Request:

FY24-25 FY25-26
FY25-25 Amendments (1-3):

FY25-26 Subtotal:

Packet Pg. 55
Attachment: Task Order #3 with Harris Associates for Construction Management Services (3304 : Resolution No. 2025-44 Harris & Associates Task Order #3) City of Gonzales
Community Center
Fee Proposal Worksheet
Fee Estimate months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Total hrs Total fees Preconstruction / Design (estimated based on 210 from August 1) Construction start 2024 2025 End Construction -Feb 2025 23 / 24 24 / 25 24 / 25 25 / 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 rate rate rate rate Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 184.00 160.00 168.00 160.00 160.00 168.00 160.00 168.00 176.00 176.00 152.00 176.00 176.00 160.00 176.00 152.00 168.00 168.00 152.00 168.00 176.00 168.00 160.00 176.00 168.00 168.00 176.00 144.00 176.00 PIC - Frank Lopez $ 278 $ 289 $ 301 $ 313
PM - Matt Nethercutt $ 250 $ 260 $ 270 $ 281 55.9 60.0 60.0 60.0 60.0 40.0 40.0 10.0 24.0 24.0 32.0 24.0 24.0 32.0 20.0 20.0 32.0 16.0 20.0 32.0 16.0 20.0 32.0 24.0 24.0 32.0 32.0 866 $ 223,158.00 Construction Mngr - Luis Flores $ 203 $ 211 $ 220 $ 228 16.8 80.0 120.0 142.8 152.0 159.6 167.2 167.2 144.4 167.2 167.2 152.0 167.2 144.4 159.6 159.6 144.4 159.6 167.2 159.6 152.0 167.2 159.6 159.6 167.2 136.8 167.2 4,008 $ 847,289.39 Civil Inspection Mnger - Dana Van Horn $ 228 $ 237 $ 247 $ 256 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 88 $ 20,799.44 Civil Inspector - TBD (prevailing wage)* $ 185 $ 192 $ 200 $ 208 32.0 40.0 64.0 80.0 64.0 32.0 32.0 32.0 32.0 408 $ 78,458.94 Administration $ 127 $ 132 $ 137 $ 143 16.8 16.0 16.0 42.0 40.0 42.0 44.0 44.0 22.8 26.4 26.4 24.0 26.4 19.8 21.8 21.8 19.8 21.8 22.9 21.8 20.8 22.9 21.8 21.8 22.9 47.5 58.1 752 $ 99,192.45 Scheduler - Rowecom $ 215 $ 224 $ 233 $ 242 8.0 12.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 152 $ 33,930.78 Labor Compliance $ 169 $ 176 $ 183 $ 190 12.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 564 $ 99,579.67 Grant Tracking - Dima $ 205 $ 213 $ 222 $ 231 8.0 8.0 12.0 12.0 8.0 8.0 8.0 4.0 4.0 4.0 12.0 12.0 100 $ 21,102.21 - $ -
Total Hours - - 105.5 164.0 196.0 280.8 294.0 287.6 329.2 307.2 293.2 335.6 327.6 270.0 287.6 234.2 231.4 231.4 226.2 227.4 240.1 243.4 258.8 280.1 247.4 239.4 248.1 258.3 293.3 6,938 $ 1,423,510.88 Monthly Fee - - 22,890 34,912 41,392 56,390 58,742 56,543 64,260 58,240 59,508 67,875 66,877 55,114 58,640 48,872 47,339 47,339 46,975 46,299 49,081 50,459 54,716 59,420 53,364 51,201 53,013 53,660 60,390 Reimbursable / vehicle allowance $ 10,000
Total Authorization Required 1,433,511$
Inspection only $ 99,258.38
Cumulative totals Total Net of Inspection $ 1,334,252.50 Hours 105.5 269.5 465.5 746.3 1,040.3 1,327.9 1,657.1 1,964 2,257.5 2,593.1 2,920.7 3,190.7 3,478.3 3,712.5 3,943.9 4,175.4 4,401.5 4,629.0 4,869.1 5,112.5 5,371.3 5,651.4 5,898.8 6,138.3 6,386.3 6,644.7 6,938 Dollars 22,890 57,802 99,194 155,584 214,326 270,869 335,129 393,368 452,876 520,751 587,628 642,741 701,381 750,253 797,593 844,932 891,907 938,207 987,288 1,037,747 1,092,462 1,151,883 1,205,247 1,256,449 1,309,461 1,363,121 1,423,511 Year 1 hrs 2,258 Year 2 hrs 3,114 Year 3 hrs 1,567 6,938 fee $ 452,875.95 fee $ 639,586.50 fee $ 331,048.43 $ 1,423,510.88 Qualifications:

1. Office space / trailer, furniture, copier & data connection within project building shall be provided by the City or DBE.

2. Office supplies, if any, purchased for the field office at the project site shall be reimburseable at cost + 7.5%.

3. Fee is based on the schedule duration given by the City and shown above. If the contract time is extended, Harris fee will be adjusted accordingly.

4. Rates escalate at 4% at the beginning of the City's Fiscal year in June

5. Vehicle cost for inspector will be $50/day.

6. Harris does not markup scheduler's hourly rate
5/23/20243:26 PM Packet Pg. 56 Attachment: Task Order #3 with Harris Associates for Construction Management Services (3304 : Resolution No. 2025-44 Harris & Associates City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

RECOMMENDATION
It is recommended that the City Council adopt Resolution 2025-41, A Resolution of the City Council of the City of Gonzales Approving an Agreement Between the City of Gonzales, City of Soledad, City of Greenfield, and Tri-Cities Disposal & Recycling Services from July 1, 2025 Through June 30, 2035 in Substantial Form and Content, and Authorizing the City Manager to Execute said Agreement on Behalf of the City Gonzales, and Approving the FY 2025-2026 Garbage Collection and Disposal Rates.

BACKGROUND
In 2004, the cities of Gonzales, Soledad, and Greenfield entered into a Franchise Agreement with Tri-Cities Disposal & Recycling (TCDR) to provide waste collection services. This agreement was later extended and then further revised and restated in 2017 and is set to expire June 30, 2025.

As the designated contract administrator, the Salinas Valley Solid Waste Authority (SVSWA) has been working with the four South Monterey County Cities to plan for a new service agreement. In June 2022, SVSWA solicited proposals from consultants to conduct the new franchise hauler procurement for the Cities. After no proposals were received, the cities authorized SVSWA to administer the procurement process.

A Request for Proposals (RFP) for waste hauler services was released on March 17, 2023. On June 30, 2023, SVSWA received proposals from three companies (GreenWaste Recovery, Recology, and Waste Management). The proposals were reviewed by the RFP evaluation team (made up by SVSWA and South County cities’ staff). The rates proposed were compared to the equivalent services at the current contract rates and found to be significantly higher. The proposal rates ranged from an average of 33% to 55% increase in certain customer service rates, with some services reaching almost 100% increase.

AGENDA
ITEM
16 Packet Pg. 57
As a result, in October 2023, the four cities rejected the submitted proposals and directed SVSWA staff to enter discussions with the two current South Monterey County franchise haulers for a potential contract extension, as the Cities concurred that TCDR services and costs have been effective and equitable. Based on the cities’ direction, SVSWA contacted TCDR about the possibility of a contract extension. TCDR was asked about the option to bring King City into its contract. TCDR’s company owner declined due to the costs involved in expanding the operation. SVSWA has been working with Tri-Cities and the cities to finalize the proposed Agreement.

The proposed Franchise Agreement (Agreement) will commence July 1, 2025. The Agreement has been reformatted to include new regulatory language, especially pertaining to SB 1383, and maintains, in its majority, the current services with new provisions to address issues such as container contamination and customer participation for compliance with State mandates.

The resolution approving the Agreement as to substantial form and content and authorizing the City Manager to execute the revised and restated franchise is part of this staff report. The new Agreement is included as Exhibit A. As with lengthy agreements of this type, and particularly where three different cities, three City managers, and two attorneys are involved, there is the possibility that minor changes may be made to the Agreement before its final execution by all parties. As such, staff is asking that the Agreement be approved as to substantial form and content, a phrase that will allow for minor modifications to be made after the Council’s approval. Any proposed significant change to the Agreement would require staff to bring the Agreement back to Council for further consideration.

REVIEW AND ANALYSIS
During negotiations, current services and cost control were established as the highest priorities.

Therefore, the proposed Franchise Agreement primarily revises language to address new state requirements and includes a minor change to an existing service, reducing the curbside Bulky Items Collections to four times per year instead of ten.

The proposed customer rates are composed of five contractual cost components (TCDR service and SVSWA disposal) and the City’s franchise fee. Each year, these components are individually adjusted by their respective cost indicators.

The new Agreement proposes an average 12.94% increase to the current customer rates. Although this number is relatively high compared to increases in previous years, it is considerably lower than the proposals received in the original RFP, which increases ranged between 33% - 55%.

The 12.94% average increase to the customer rates consists of:
• An average 8.99% increase to TCDR service cost component, primarily due to increased labor costs from its most recent bargaining agreement,
• An average 1.79% increase to SVSWA pass-through disposal costs, mostly due to its recent increase to its AB 939 fees to cover compost/mulch procurement for the Cities to comply with SB 1383, and
• An average 2.16% consequential increase to the Cities franchise fees.

Packet Pg. 58
The Garbage Collection and Disposal Rates for FY 2025-26 (Attachment “A” to the Resolution) reflect the aforementioned customer rate adjustments. The following table is a summary of the most common service level rates.

Weekly
Service
Current Rate
7/01/2024
Proposed Rate
7/01/2025
Dollar
Increase
Percent
Increase
48-Gallon Cart $36.12 $41.99 $5.87 16.3%
64-Gallon Cart $56.52 $64.25 $7.73 13.7%
96-Gallon Cart $77.01 $86.65 $9.64 12.5%
1 cubic yard
1x/Week $214.59 248.83 $34.24 16.0%
3 cubic yard
1x/Week $503.15 569.27 $66.12 13.1%
As provided in the Agreement, a CPI adjustment will be made annually, effective July 1st each year.

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.

Explain: The proposed Franchise Agreement is a collaborative effort between the City, the partnering Cities, the Waste Collection Franchise and Salinas Valley Solid Waste Authority to provide essential public health and safety services through enhanced waste collection to city residents and local businesses.

Explain: The approval of this item demonstrates the City’s leadership and commitment to comply with environmental regulations.

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

Explain: This action enables compliance with regulatory requirements of waste collection and diversion while balancing costs and services.

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: This franchise is part of the critical infrastructure needed for our community. The efficient Packet Pg. 59
operations of our solid waste franchise are cost-effective.

ALTERNATIVES
Alternative 1 - The City Council could ask for more details before approving the attached Agreement.

Alternative 2 - The City Council could determine this Agreement is not in the best interest of Gonzales and decline to approve. The current Franchise ends June 30, 2025; therefore, a short-term extension would need to be negotiated until a new Agreement is secured

BUDGET IMPACT
The increase in collection rates will generate additional franchise fees for the City since the 20% franchise fee is charged on the total rates.

CONCLUSION
It is recommended that the City Council adopt Resolution 2025-41, A Resolution of the City Council of the City of Gonzales Approving An Agreement Between the City of Gonzales, City of Soledad, City of Greenfield, and Tri-Cities Disposal & Recycling Services from July 1, 2025 Through June 30, 2035 in Substantial Form and Content, and Authorizing the City Manager to Execute said Agreement on Behalf of the City Gonzales, and Approving the FY 2025-2026 Garbage Collection and Disposal Rates.

Attachments:

1. Public Hearing Notice

2. Resolution No. 2025-41

3. Tri-Cities & Disposal Franchise Agreement

4. FY 2025-2026 Garbage Collection and Disposal Rates
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Packet Pg. 61
Attachment: Public Hearing Notice (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-Cities Disposal RESOLUTION NO. 2025-41

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

APPROVING AN AGREEMENT BETWEEN THE CITY OF GONZALES,

CITY OF SOLEDAD, CITY OF GREENFIELD, AND TRI-CITIES DISPOSAL & RECYCLING SERVICES FROM JULY 1, 2025 THROUGH JUNE 30, 2035

IN SUBSTANTIAL FORM AND CONTENT, AND AUTHORIZING THE

CITY MANAGER TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY GONZALES, AND APPROVING THE FY 2025-2026 GARBAGE

COLLECTION AND DISPOSAL RATES
WHEREAS, the Cities of Gonzales, Soledad, and Greenfield jointly contracted for solid waste, recycling, and yard waste collection services through a Franchise with Tri-Cities Disposal and Recycling, Inc. in 2004; and
WHEREAS, the current Franchise Agreement has been extended and further Revised and Restated through June 30, 2025; and
WHEREAS, the Cities are currently very satisfied with Tri-Cities Disposal & Recycling performance; and
WHEREAS, Tri-Cities Disposal & Recycling is willing to provide similar services under a new Franchise Agreement; and
WHEREAS, Tri-Cities Disposal & Recycling’s proposed new Franchise Agreement includes increased rates for Garbage Collection and Disposal Rates for services provided; and WHEREAS, although the Franchise Agreement is being presented this evening for Council approval, given the number of involved cities, managers and attorneys, there is some possibility that minor changes may be made to the Agreement before its final execution by all parties. As such, Staff is requesting that the Agreement be approved as to “substantial form and content” with execution conditioned upon a determination by the City Manager and legal counsel that none of the changes, if any, require further Council consideration and that the Agreement is in acceptable final form; and
WHEREAS, City taff and the Salinas Valley Solid Waste Authority, as Contract Administrator, have reviewed the proposed new Franchise Agreement and the increases to the maximum corresponding Garbage Collection and Disposal Rates and found them to be reasonable and consistent with the terms of the agreement; and WHEREAS, given that the proposed new Franchise Agreement will provide for the continued collection of solid waste in the service area in the same basic manner as it currently exists in the service area, the Council finds that the approval of the Franchise Agreement is exempt from CEQA pursuant to CEQA Guidelines Section 15301- licensing of existing operations, involving negligible or no expansion of use. Alternatively, the Council also finds that it can be seen with certainty that there is no possibility that approval of the Franchise Packet Pg. 62
Attachment: Resolution No. 2025-41 (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-Cities Disposal Agreement may have a significant effect on the environment (CEQA Guidelines Section 15061 (b) (3).

NOW THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City of Gonzales, the Agreement between the City and Tri-Cities Disposal and Recycling Services, Inc., a copy of which is attached hereto as “Exhibit A” and by this reference incorporated herein, is hereby approved in substantial form and content, and the City Manager is authorized and directed to execute the same on behalf of the City upon confirmation by the City Manager and legal counsel that the Parties thereto have agreed upon the Agreement’s final form and content and that further Council consideration is not warranted.

BE IT FURTHER RESOLVED, by the City Council of the City of Gonzales, that the Fiscal Year 2025-2026 Garbage Collection and Disposal Rate Schedule, attached here to as “Exhibit B” and incorporated herein by reference, is hereby approved to become effective July 1, 2025.

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

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. 63
Attachment: Resolution No. 2025-41 (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-Cities Disposal

EXHIBIT A

EXCLUSIVE FRANCHISE AGREEMENT

FOR SOLID WASTE, RECYCLABLES, AND ORGANIC WASTE

COLLECTION SERVICES

BETWEEN

THE CITIES OF

GONZALES, GREENFIELD AND SOLEDAD, CALIFORNIA
AND
TRI-CITIES DISPOSAL AND RECYCLING SERVICE, INC.

Effective: July 1, 2025
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TABLE OF CONTENTS
RECITALS.....................................................................................................................................5 ARTICLE I. DEFINITIONS..............................................................................................2 ARTICLE II. REPRESENTATIONS AND WARRANTIES OF THE
FRANCHISEE ............................................................................................15 SECTION 2.01 CORPORATE STATUS...................................................................15 SECTION 2.02 CORPORATE AUTHORIZATION.................................................15 SECTION 2.03 NO CONFLICT ................................................................................15 SECTION 2.04 NO LITIGATION.............................................................................16 SECTION 2.05 NO LEGAL PROHIBITION............................................................16 SECTION 2.06 INFORMATION SUPPLIED BY THE FRANCHISEE..................16 SECTION 2.07 WAIVER OF CERTAIN RIGHTS...................................................16 SECTION 2.08 FREE MARKET DECISION ...........................................................16 SECTION 2.09 FRANCHISEE INVESTIGATION..................................................17 ARTICLE III. TERMS OF AGREEMENT ......................................................................17 SECTION 3.01 GRANT AND ACCEPTANCE OF FRANCHISE ..........................17 SECTION 3.02 ASSIGNMENT AND TRANSFER OF FRANCHISE ....................18 SECTION 3.03 CHANGE IN FRANCHISEE OWNERSHIP OR CONTROL ........19 SECTION 3.04 PAYMENT OF CERTAIN COSTS BY FRANCHISEE .................19 SECTION 3.05 EFFECT ON PRIOR AGREEMENTS.............................................19 SECTION 3.06 EFFECTIVE DATE AND TERM OF THIS AGREEMENT ..........20 SECTION 3.07 EXTENSION TERM........................................................................20 SECTION 3.08 NO GUARANTEES OF MATERIAL VOLUME OR
COMPOSITION OF CUSTOMERS ................................................20 ARTICLE IV. GENERAL AGREEMENT .......................................................................21 SECTION 4.01 GRANT OF AGREEMENT.............................................................21 SECTION 4.02 CITIES DESIGNATION OF FACILITIES......................................21 ARTICLE V. COLLECTION SERVICES ......................................................................21 SECTION 5.01 COLLECTION AND PROCESSING SERVICES ..........................21 SECTION 5.02 RESIDENTIAL THREE CONTAINER SYSTEM..........................22 SECTION 5.03 MULTI-FAMILY DWELLING AND COMMERCIAL
SERVICES........................................................................................23 Packet Pg. 65
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SECTION 5.04 DROP-BOX/ROLL-OFF AND COMPACTOR SERVICES ..........24 SECTION 5.05 CONSTRUCTION AND DEMOLITION (C&D)
COLLECTION PROGRAM.............................................................25 SECTION 5.06 COMMUNITY DROP-OFF EVENTS AND BULKY
ITEMS PROGRAM..........................................................................25 SECTION 5.07 CITY SERVICES .............................................................................26 SECTION 5.08 SPECIAL EVENTS AND SERVICES ............................................26 SECTION 5.09 COLLECTION SERVICE OPERATING REQUIREMENTS ........28 SECTION 5.10 COLLECTION LOCATIONS..........................................................29 ARTICLE VI. OTHER RELATED SERVICES...............................................................30 SECTION 6.01 TRANSFER, PROCESSING AND DISPOSAL..............................30 SECTION 6.02 CONTAMINATION & OVERAGE MONITORING......................31 SECTION 6.03 PUBLIC OUTREACH AND EDUCATION....................................33 SECTION 6.04 TECHNICAL ASSISTANCE PROGRAM......................................34 SECTION 6.05 FOOD RECOVERY PROGRAM ....................................................34 SECTION 6.06 BILLING...........................................................................................34 SECTION 6.07 GENERATOR WAIVER PROGRAM COORDINATION.............36 SECTION 6.08 INSPECTION AND ENFORCEMENT...........................................37 SECTION 6.09 SERVICE COMPLAINTS ...............................................................38 SECTION 6.10 REPORT OF ABANDONED MATERIALS...................................40 SECTION 6.11 NON-DISCRIMINATION ...............................................................40 SECTION 6.12 EMERGENCY CONTACT..............................................................41 ARTICLE VII. STANDARDS OF PERFORMANCE.......................................................41 SECTION 7.01 PROPERTIES, FACILITIES, AND EQUIPMENT.........................41 SECTION 7.02 VEHICLES .......................................................................................41 SECTION 7.03 CONTAINERS .................................................................................42 SECTION 7.04 DIVERSION REQUIREMENTS .....................................................43 ARTICLE VIII. RECORD KEEPING AND REPORTING...............................................43 SECTION 8.01 ACCOUNTING AND RECORDS...................................................43 SECTION 8.02 MONITORING AND REPORTING................................................44 SECTION 8.03 INSPECTION ...................................................................................45 SECTION 8.04 RESEARCH AND DEVELOPMENT .............................................46 ARTICLE IX. CUSTOMER RATES AND SERVICE COSTS ......................................46 Packet Pg. 66
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SECTION 9.01 CUSTOMER RATES.......................................................................46 SECTION 9.02 ANNUAL CUSTOMER RATES AND SERVICE COSTS
ADJUSTMENTS ..............................................................................46 SECTION 9.03 COST COMPONENTS AND RATE ADJUSTMENT
INDEXES .........................................................................................46 SECTION 9.04 FRANCHISE FEE ............................................................................49 SECTION 9.05 CHANGES IN APPLICABLE LAW OR MARKET
CONDITIONS ..................................................................................49 SECTION 9.06 OTHER SERVICE FEE ADJUSTMENTS......................................49 ARTICLE X. INDEMNITY, INSURANCE AND PERFORMANCE BOND ..............50 SECTION 10.01 INDEMNIFICATION OF CITIES...................................................50 SECTION 10.02 HAZARDOUS MATERIALS INDEMNIFICATION.....................51 SECTION 10.03 PERFORMANCE BOND.................................................................51 SECTION 10.04 FORFEITURE OF PERFORMANCE BOND .................................52 ARTICLE XI. DEFAULT AND REMEDIES ...................................................................52 SECTION 11.01 REMEDIES FOR BREACH.............................................................52 SECTION 11.02 RIGHT OF THE CITIES TO PERFORM SERVICES IN CERTAIN CIRCUMSTANCES.......................................................52 SECTION 11.03 EVENTS OF DEFAULT OF FRANCHISEE..................................54 SECTION 11.04 EVENT OF DEFAULT BY THE CITIES .......................................55 SECTION 11.05 NO WAIVERS..................................................................................56 SECTION 11.06 NO CONSEQUENTIAL OR PUNITIVE DAMAGES....................56 SECTION 11.07 FORUM FOR DISPUTE RESOLUTION........................................56 SECTION 11.08 ADMINISTRATIVE REVIEW OF DISPUTES..............................56 SECTION 11.09 CRIMINAL ACTIVITY OF THE FRANCHISEE ..........................57 SECTION 11.10 RIGHT TO TERMINATE................................................................57 ARTICLE XII. OTHER AGREEMENTS OF PARTIES..................................................57 SECTION 12.01 RELATIONSHIP OF PARTIES.......................................................57 SECTION 12.02 COMPLIANCE WITH LAW...........................................................57 SECTION 12.03 GOVERNING LAW.........................................................................58 SECTION 12.04 JURISDICTION ...............................................................................58 SECTION 12.05 BINDING ON SUCCESSORS.........................................................58 SECTION 12.06 PARTIES IN INTEREST .................................................................58 SECTION 12.07 FURTHER ASSURANCES .............................................................58 Packet Pg. 67
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SECTION 12.08 FRANCHISEE’S INVESTIGATION ..............................................58 SECTION 12.09 NOTICES..........................................................................................58 SECTION 12.10 NOTICES OF LITIGATION............................................................59 SECTION 12.11 ACTIONS OF THE CITY IN ITS GOVERNMENTAL
CAPACITY.......................................................................................59 SECTION 12.12 AMENDMENTS ..............................................................................59 SECTION 12.13 INTERPRETATION.........................................................................59

APPENDICES
Appendix A – Specifications for Containers and Vehicles Appendix B – Customer Rate Cap Schedule
Appendix C – Public Containers and Cities Facility Locations Appendix D – Public Outreach and Education Information and Requirements Appendix E – Routing and Collection System
Appendix F – Required Insurance Scope and Limits
Appendix G – Form of Performance Bond
Appendix H - Reporting Requirements
Appendix I – Street Sweeping
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EXCLUSIVE FRANCHISE AGREEMENT FOR

SOLID WASTE, RECYCLABLES, AND ORGANIC WASTE COLLECTION

SERVICES
This Exclusive Franchise Agreement for Solid Waste, Recyclables, and Organic Waste Collection Services (“Agreement”) is made and entered into on this ______day of ________ 2025, (Agreement Date” or “Franchise Date”) by and between the Cities of Gonzales, Greenfield and Soledad, each one a political subdivision of the State of California (hereinafter collectively “Cities” or singularly “City”), and Tri-Cities Disposal and Recycling Service, Inc., a California corporation (hereinafter “Franchisee”) for the Collection and subsequent transfer, transportation, Recycling, processing and/or Disposal of certain Solid Waste, Recyclables, and Organic Waste and provision of other related services.

RECITALS
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) (California Public Rescources Code Section 40000, et seq.) has established a Solid Waste management process which requires local agencies to implement source reduction, Reuse and Recycling as integrated waste management practices; and WHEREAS, the State of California has found and declared that the amount of waste materials generated in California, coupled with diminishing Disposal capacity, interest in minimizing potential environmental impacts from landfills, and the need to conserve natural resources have created an urgent need for State and local agencies to enact and implement an aggressive integrated waste management program. The State has through the enactment of AB 939 and subsequent related legislation including, but not limited to: the Jobs and Recycling Act of 2011 (AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), the Mandatory Commercial Organics Recyling Act of 2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383), directed the responsible State Agency, and all local agencies to promote a reduction in Landfill Disposal, maximize the use of waste reduction, Re-use, Recycling, and Composting options in order to reduce the amount of material that must be Disposed; and WHEREAS, SB 1383 establishes regulatory requirements for jurisdictions, Generators, haulers, Solid Waste facilities, and other entities to support achievement of State-wide Organic Waste Disposal reduction targets and;
WHEREAS, pursuant to California Public Resources Code section 40059(a)(2) and each City’s Solid Waste and Recycling related Code, the City Councils have determined that the public health, safety and well being require that an exclusive Franchise Agreement for Solid Waste, Recyclables, and Organic Waste Collection Services be awarded to a qualified company for the Collection and subsequent transfer, transportation, Recycling, processing and/or Disposal of Solid Waste, Recyclables, and Organic Waste; and
WHEREAS, the Cities of Gonzales, Soledad, and Greenfield in 1997 entered into a Franchise Agreement for Solid Waste, Recyclables, and Organic Waste Collection Services with Tri-Cities Disposal with term end June 30, 2004, and based on satisfactory reasonable cost services, in 2004 entered into a new Franchise Agreement for enhanced collection services through June 30, 2011, which was later extended and revised and restated with term end June 30, 2025; and, Packet Pg. 69
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WHEREAS, in 2022, the Cities began preparations for a Request for Proposals for such services, and after review of proposals received, rejected the submitted proposals due to significant high costs, and entered into negotiation with current incumbent Tri-Cities Disposal and Recycling; and WHEREAS, the Franchisee has demonstrated to the Cities that it has the experience, responsibility, and qualifications to conduct the services detailed herein for the collection, safe transportation and processing or Disposal of Franchise Materials as described herein; and WHEREAS, Franchisee desires to engage in the business of Collecting certain Solid Waste, Recyclables, and Organic Waste; and
WHEREAS, the Cities wish to continue utilizing the Franchisee’s services to offer Solid Waste, Recyclables, and Organic Waste Collection Services to Residents, Multi-Family Dwellings and Commercial Properties. The Cities therefore grant the Franchisee the franchise described herein the terms and conditions established hereby.

AGREEMENT
NOW THEREFORE, in consideration of the promises above stated and the terms, conditions, covenants, and agreements contained herein, the Parties do hereby agree as follows:

Article I.

DEFINITIONS
For purposes of this Agreement, unless a different meaning is clearly required, the words and phrases in this Article shall have the following meanings ascribed to them by this Article and shall be capitalized throughout this Agreement. Where a definition is derived from a State or federal law or regulation, the definition shall be interpreted in accordance with the definition in the State or federal law or regulation as it currently exists or may subsequently be amended.

AB 341 means the Mandatory Commercial Recycling Law, signed into law January 2012 and as defined now and into the future under Division 30 of the Public Resources Code, requiring businesses and multi-family facilities of a certain size waste stream to conduct Recycling onsite through subscribed services or Self-Hauling to achieve an increase in Diversion from landfilling and reduce greenhouse gases.

AB 876 means the Assembly Bill approved by the Governor of the State of California on October 8, 2015, which added Section 418214 to the Public Resources Code, relating to Solid Waste as amended, supplemented, superseded, and replaced from time to time.

AB 901 means the Assembly Bill approved by the Governor of the State of California on October 10, 2015, which amended Section 41821.5 and added Section 41821.6, 41821.7 and 41821.8 to the Public Resources Code relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time.

AB 939 means 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 1594 means the Assembly Bill approved by the Governor of the State of California on Packet Pg. 70
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September 28, 2014, which amended Sections 40507 and 41781.3 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time.

AB 1826 means the Mandatory Commercial Organics Recycling Law, signed into law October 2014 and as defined now and in the future under Division 30 of the Public Resources Code, requiring businesses of a certain size waste stream and waste profile to Recycle their Organic Wastes.

Affiliate means all businesses (including corporations, limited and general partnerships and sole proprietorships) that are directly or indirectly related to Franchisee by virtue of direct or indirect ownership interest or common management. They shall be deemed to be “Affiliated with” Franchisee and included within the term “Affiliates” as used herein. An Affiliate shall include: (i) a business in which Franchisee has a direct or indirect ownership interest, (ii) a business that has a direct or indirect ownership interest in Franchisee and/or (iii) a business that is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in Franchisee. For the purposes of this definition, “ownership” means ownership as defined in the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the date here, provided that ten percent (10%) shall be substituted for fifty percent (50%) in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be disregarded, and percentage interests shall be determined on the basis of the percentage of voting interest of value that the ownership interest represents.

Agreement means this Exclusive Franchise Agreement for Solid Waste, Recyclables, and Organic Waste Collection Services between the Cities and Franchisee for the Collection and subsequent transfer, transportation, processing, and/or Disposal of Single-Family, Multi-Family Dwelling and Commercial Solid Waste, Recyclables, and Organic Waste and including all exhibits and attachments, and any amendments thereto.

Agreement or Franchise Date means the date that this Agreement was signed by all Parties.

Appendix means an Appendix to this Franchise Agreement, as the same may be amended or modified from time to time in accordance with the terms hereof.

Applicable Law means any law, rule, regulation, requirement, guideline, permit, action, determination or order of any Governmental Body having jurisdiction, applicable from time to time to the Franchise Services; the Franchise Operating Assets; the siting, design, acquisition, permitting, construction, equipping, financing, ownership, possession, shakedown, testing, operation or maintenance of any of the Franchise Operating Assets; or any other transaction or matter contemplated hereby (including any of the foregoing which concern health, safety, fire, environmental protection, labor relations, mitigation monitoring plans, building codes, nondiscrimination and the payment of minimum wages, and further including the Monterey County Integrated Waste Management Plan).

Appropriate Level of Service means a level of Franchise Services (i.e., number of Containers, size of Containers, and frequency of Franchise Services) such that all Blue Container Waste, Gray/Black Container Waste, and Green Container Waste generated or coming to exist at a Premises is properly contained in a Container and Collected by Franchise, except as expressly provided in this Agreement.

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Authority means the Salinas Valley Solid Waste Authority, a Joint Powers Authority consisting of the municipal corporations of the City of Salinas, City of Gonzales, City of Greenfield, City of King, City of Soledad, and the County of Monterey, a political subdivision of the State of California.

Back-Haul means generating and transporting Waste to a destination owned and operated by the Generator using the Generator’s own employees and equipment or as otherwise defined in 14 CR Section 18982(a)(66)(A).

Bin means a metal or plastic container with hinged lid(s) and wheels, when applicable, serviced by a front-end loading Collection vehicle with an approximate contained capacity in accordance with Appendix A, including Bins with Compactors attached to increase the capacity of the Bin.

Bins are also knowns as dumpsters.

Blue Container has the same meaning as in 14 CCR Section 18982.2(a)(5) and shall be used for the purpose of storage and Collection of Blue Container Waste.

Blue Container Waste means Recyclable Materials that are accepted by the applicable Designated Facility for processing, handling, and/or Recycling. Blue Container Waste shall not include Excluded Materials. For purposes of this Agreement, “Franchise Recyclable Materials” shall mean Blue Container Waste.

Bulky Items means large and small household appliances, furniture, carpets, mattresses and similar large items that require special collection due to their size or nature, but can be collected without the assistance of special loading equipment. Bulky Items do not include items herein defined as Exempt Waste or Construction and Demolition Debris. Any Bulky Items containing chloroflourocarbon (CFC) refrigerants shall be handled in accordance with Applicable law.

Business Day(s) means a day during which the City’s offices are open to do business with the public.

California Code of Regulations (CCR) means the State of California Code of Regulations. For example, references to 14 CCR refer to Title 14 of the California Code of Regulations.

Cart means a plastic wheeled Container with a hinged lid and wheels serviced by automated or semi-automated Collection vehicles and with a Container capacity in accordance with Appendix A.

Change in Law means any of the following events or conditions that have a material and adverse effect on the performance by the Parties of their respective obligations under this Agreement:

1. The enactment, adoption, promulgation, issuance, modification, or written change in administrative or judicial interpretation of any Applicable Law on or after the Effective Date; or,

2. The order or judgment of any Governmental Body, on or after the Effective Date, to the extent such order or judgment is not the result of willful or negligent action, error or omission or lack of reasonable diligence of the Cities or of the Franchisee, whichever is asserting the occurrence of a Change in Law; provided, however, that the contesting in good faith or the failure in good faith to contest any such order or judgment shall not constitute or be construed as such a willful or negligent action, Packet Pg. 72
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error or omission or lack of reasonable diligence.

City or Cities means, individually or together, the City of Gonzales, the City of Soledad, and the City of Greenfield, each one a political subdivision of the State of California.

City Facility means any building, park, rights of way or other site owned, leased or used regularly and significantly by employees, citizens, or contractors of the City.

City Manager means the City Manager of the City or their designee.

Collect/Collection means the act of taking physical possession of Discarded Materials, whether by, manual, semi-automated or automated means, and transporting the Discarded Materials to an approved Designated Facility for processing, transfer, or Disposal.

Commercial means from or pertaining to a business, including but not limited to partnership, proprietorship, joint stock company, corporation or association that is organized as a for-profit, nonprofit entity, strip mall, industrial facility, Multiple-Family Dwelling Premises having five (5) or more distinctive living units and with communal Franchise Services (with one billing account), institutional facility, hospital facility, school, retail, office or other Commercial enterprise offering goods or services to the public excluding businesses conducted upon any Residential Premises, as defined in 14 CCR Section 18982(a)(6).

Commercial Customer means any person who subscribes to Commercial Franchise Services provided by the Franchisee pursuant to this Agreement.

Commercial Edible Food Generators includes Tier One Commercial Edible Food Generators and Tier Two Commerical Edible Food Generators, or as otherwise defined in 14 CCR Section 18982(a)(7). For purposes of this defintion, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators, or as otherwise specified in 14 CCR Section 18982(a)(7).

Commercial Premises means any building or site in the Franchise Area, other than a Residential Premises where each living unit has individual Franchise Services and an individual account, from which any business, service, non-profit, governmental, institutional, Commercial or industrial activity is conducted, including without limitation motels, hotels, recreational vehicle parks, restaurants, professional offices, clubhouses, places of entertainment, manufacturing plants, and private schools.

Compactor means a machine or device, owned and maintained by the Customer, designed to compress, reduce, and compact a variety of materials through hydraulic, mechanical, or pneumatic force.

Composting means the controlled biological decomposition of Organic Wastes that are Source Separated from the municipal waste stream, or which are separated at a centralized facility.

Compostable Plastic means plastic materials that meet the ASTM D6400 standard for compostability, or otherwise described in 14 CCR Section 18984.1(a)(1)(A) or 18984.2(a)(1)(C).

Construction and Demolition Debris (C&D) means Recyclable and non-Recyclable waste building materials, packaging and rubble resulting from construction, remodeling, repair and Packet Pg. 73
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demolition operations on pavements, houses, Commercial buildings and other structures. (California Code of Regulations, Section 20150-20164. Article 1-2. Chapter 2. Title 27).

Containers mean a receptacle for temporary storage of Discarded Materials. Containers can include Bins, Carts, Drop-Box/Roll-Off Boxes, Compactors or other storage instruments for the use of Collection for Gray/Black Container Waste, Blue Container Waste, and/or Green Container Waste, as specified in Appendix A.

Cost Indicator means the consumer index or change in rate for services to process Franchise Materials used to adjust Rate Cost Components annually as defined in Article 9.

Cost Component(s) means individual fees from Franchisee, Authority, Designated Facilities, and Cities that make up the maximum Customer Rates as defined in Article 9.

Customer means any person or business to whom the Franchisee or City submits its billing invoice to and collects payment from for Collection services provided to the Premises. The Customer is not necessarily the owner of the Premises and may be either the person who occupies the Premises or the owner of the Premises.

Designated Facility(s) means any one of or any combination of the: Designated C&D Processing Facility; Designated Disposal Facility; Designated Organic Materials Processing Facility; Designated Recyclable Materials Processing Facility; and/or Designated Transfer Station.

Designated C&D Processing Facility means the Johnson Canyon Landfill located at 31400 Johnson Canyon Road, Gonzales, CA.

Designated Disposal Facility means the Johnson Canyon Landfill located at 31400 Johnson Canyon Road, Gonzales, CA.

Designated Organic Waste Processing Facility means the Johnson Canyon Landfill’s Composting Facility located at 31400 Johnson Canyon Road, Gonzales, CA.

Designated Recyclable Materials Processing Facility means the Monterey Disposal Recovery Facility located at 10 Ryan Ranch Road, Monterey, CA.

Designated Transfer Station means the Jolon Road Transfer Station located at 52654 Jolon Road, King City, CA.

Discarded Materials means Gray/Black Container Waste, Blue Container Waste, and/or Green Container Waste (except Edible Food that is recovered for human consumption and is not discarded in accordance with this Agreement). For the purposes of this Agreement, Discarded Materials also includes C&D once the materials have been placed in appropriate Containers for Collection.

Disposal means the ultimate disposition of unprocessed Discarded Material intended for Disposal and Residue.

Disposal Fees means the fees established by the Designated Facilities for the purpose of handling, processing and Disposal of Franchise Materials.

Divert/Diversion means to prevent Blue Container Waste and Green Container Waste from Packet Pg. 74
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Disposal at landfill through Source Reduction, reuse, Recycling, and Composting as provided in AB 939, as may hereafter be amended or superseded.

Drop-Box or Roll-off Box means an open or closed-top metal Container, roll-top Container, or closed Compactor Container serviced by a Roll-Off truck and with a Container capacity as specified in Appendix A.

Edibile Food means food intended for human consumption. For purposes of this Agreement, Edible Food is not waste if it is recovered and not discarded. Nothing in this Agreement requires or authorizes the recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code.

Effective Date means July 1, 2025, upon approval by all Parties as provided in Section 3.06.

Excluded Materials means any waste tires, radioactive, volatile, corrosive, flammable, explosive, biomedical, infectious, bio-hazardous, regulated medical or hazardous waste, toxic substance or material, as defined by, characterized, or listed under applicable federal, state, or local laws or regulations, including, without limitation: Hazardous Waste, Medical Waste, Qualified Household Hazardous Waste, Infectious Waste, toxic substances or material that Designated Facility operator reasonably believes the acceptance or handling of such waste to be in violation of state, local, or federal law, and corrosive or volatile waste. In addition, Excluded Materials shall include any materials containing information protected by federal, state or local privacy and security laws or regulations, waste that may damage Franchisee’s equipment or facilities or present a substantial endangerment to the health or safety of the public or Franchisee’s employees. Title to and liability for Excluded Materials shall remain with the Generator at all times.

Food Distributor means a company that distributes food to entities including, but not limited to, Supermarkets and grocery stores. Notwithstanding the foregoing, this term shall be defined as in 14 CCR Section 18982.

Food Recovery means actions to collect and distribute food for human consumption which otherwise would be Disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).

Food Recovery Organization means an entity that primarily engages in the collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities, including, but not limited to:

1. A food bank as defined in Section 113783 of the Health and Safety Code;

2. A non profit charitable organization as defined in Section 113841 of the Health and Safety Code; and

3. A non profit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code.

Food Recovery Service means a person or entity that collects and transports Edible Food from a Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery.

Food Scraps means all food such as, but not limted to, fruits, vegetables, cooked meat, poultry, seafood, shellfish, bones, and rice, beans, pasta, bread, cheese and eggshells. Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps.

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Food Waste means all Source-Separated organic material originally acquired for animal or human consumption, including but not limited to: vegetable waste, fruit waste, grain waste, dairy waste, cooked meat waste and fish waste, and compostable paper.

Franchise Area shall be that geographic area comprising the city limits of City of Gonzales, City of Soledad and City Greenfield which may be periodically amended to reflect changes to the geographic limits of each City.

Franchise Fee(s) means the fee(s) paid to the Cities and/or collected by the Cities for the exclusive rights granted under this Franchise Agreement in accordance with Section 9.04.

Franchise Materials means materials generated in the Franchise Area, and shall include Gray/Black Container Waste, Blue Container Waste, Green Container Waste, C&D, and Bulky Items; provided, however, that Franchise Materials shall not include Excluded Materials.

Franchise Services means all of the duties and obligations of the Franchisee hereunder.

Franchise Year means the calendar year beginning on July 1 and ending on the following June

30. The first Franchise Year shall begin on July 1, 2025 and end on the following June 30. The last Franchise Year shall begin on the July 1 preceding the last day of theTerm of this Agreement and end on such last day of the Term.

Franchisee means Tri-Cities Disposal and Recycling Service, Inc., the party that executed this Exclusive Franchise Agreement and its Affiliates, DBAs and Sub-Franchisees that perform services on the Franchisee’s behalf.

Franchisee Compensation means the monetary compensation received by the Franchisee in return for providing Collection services in accordance with this Agreement.

Franchisee Operating Assets means all real and personal property of any kind, which is owned, leased, managed or operated by or under contract to the Franchisee for providing the Franchise Services, including without limitation, Containers, vehicles, transfer stations, processing facilities, maintenance and storage facilities, administrative facilities, and other equipment, machinery, parts, supplies and tools.

Generator means any person or business whose act or process produces Discarded Materials as defined in the Public Resources Code, or whose act first causes any of these items to become subject to regulation.

Governmental Body means any federal, State, county, city, local or regional legislative, executive, judicial or other governmental board, agency, authority, commission, administration, court or other body, or any officer thereof acting within the scope of his or her authority.

Gray/Black Container has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used for the purpose of storage and Collection of Gray/Black Container Waste.

Gray/Black Container Waste means Solid Waste that is accepted by the applicable Designated Facility for processing and/or Disposal. Gray/Black Container Waste shall not include Excluded Materials. For Purposes of this Agreement, “Franchise Solid Waste” shall mean Gray/Black Container Waste.

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Green Container has the same meaning as in 14 CCR Section 18982(a)(29) and shall be used for the purpose of storage and Collection of Organic Waste (Yard Waste and Food Waste).

Green Container Waste means Organic Waste that is accepted by the applicable Designated Facility for processing and/or handling. Green Container Waste shall not include Excluded Materials. For purposes of this Agreement, “Franchise Organic Waste” shall mean Green Container Waste.

Habitual Contaminator means a Customer that has placed Prohibited Container Contaminants in a Container on at least three occasions.

Hazardous Substance means any substance by reason of its quality, concentration, composition or physical, chemical or infectious characteristics which may do either of the following: cause, or significantly contribute to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness, or pose a substantial threat or potential hazard to human health or the environment when improperly treated, stored, transported or disposed of or otherwise mismanaged, or (b) any waste which is defined or regulated as a Hazardous Waste, toxic substance, hazardous chemical substance or mixture, or asbestos under Applicable Law, as amended from time to time including, but not limited to:

1. Resource Conversation and Recovery Act and the regulations contained in 40 CFR Parts 260-281;

2. Toxic Substance Control Act (15 U.S.C. Section 2601 et seq.) and the regulations contained in 40 CFR Parts 761-766;

3. California Health and Safety Code, §§ 25115-25117;

4. California Public Resources Code, §40141;

5. Hazardous Materials Transportation Act;

6. Comprehensive Environmental Response, Compensation and Liability Act; and

7. Any future additional or substitute federal, state or local laws pertaining to the identification, treatment, storage or disposal of toxic substances or Hazardous Wastes; and (b) radioactive materials which are source, special nuclear or byproduct material as defined by the Atomic Energy Act of 1954 (42 U.S.C. Section 2011 et al.) and the regulations contained in 10 CFR Part 40.

Hazardous Waste means any waste which meets the definitions set forth in 22 CCR Section 66261.3, et seq. and is required to be manned; or as otherwise defined in 14 CCR Section 17402(a)(7). Hazardous Waste includes hazardous Wood Waste, which means wood that falls within the definition of “treated wood’ or “treated Wood Waste” in 22 CCR Section 67386.4, or as otherwise defined in 14 CCR Section 18982(a)(30.5).

Large Event means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and served an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system or other open space when being used for an event.

Large Venue means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility.

For purposes of 14 CCR, Division 7, Chapter 12 and this Agreement, a venue facility includes, but is not limtied to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, amusement park, conference or civil center, zoo, aquarium, airport, racetrack, horse track, Packet Pg. 77
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performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of 14 CCR Division 7, Chapter 12 and this Agreement, a site under common ownership or control that includes mor than one Large Venue that is continguous with other Large Venues on the site, is a single Large Venue.

Legal Entitlement means all permits, licenses, approvals, authorizations, consents and entitlements of whatever kind and however described which are required under Applicable Law to be obtained or maintained by any person with respect to the Franchise Operating Assets or the performance of any obligation under this Agreement or the matters covered hereby.

Legal Proceeding means every action, suit, litigation, arbitration, administrative proceeding, and other legal or equitable proceeding having a bearing upon this Agreement.

Medical Waste means (a) any waste capable of producing an infection or pertaining to or characterized by the presence of pathogens, including without limitation certain wastes generated by medical practitioners, hospitals, nursing homes, medical testing labs, mortuaries, taxidermists, veterinarians, veterinary hospitals and medical testing labs and (b) any waste which includes animal wastes or parts from slaughterhouses or rendering plants.

Mulch means a layer of material applied on top soil, and, for the purposes of the Agreement, Mulch shall conform with the conditions specified in 14 CCR section 18993.1(f)(4):

1. Meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standard for land application specified in 14 CCR Section 17852(a)(24.5)(A)(1) - (3).

2. Was produced at one or more of the following types of facilities:
a. A compostable material handling operation or facility that is permitted or authorized under 14 CCR Division 7, other than a chipping and grinding operation or facility
b. A transfer/processing facility or transfer/processing operation that is permitted or authorized under 14 CCR, Division 7; or
c. A Solid Waste landfill as defined in PRC Section 40195.1 that is permitted under 27 CCR, Division 2.

Multi-Family Dwelling Customer means any person who subscribes to Multiple-Family Dwelling Franchise Services provided by the Franchisee pursuant to this Agreement.

Multi-Family Dwelling Premises means any building or structure, or portion thereof used for residential purposes, having five (5) or more distinct living units, and with communal Franchise Services (with billing under one account). Multi-Family Dwelling Premises does not include hotels, motels, or other transient occupancy facilities, which are considered Commercial businesses. Further Multi-Family Dwelling Premises does not include Premises where each living unit has individual Franchise Services and an individual account; such living units will be considered a Single-Family Dwelling and shall be provided Residential Customer Franchise Services.

Non-Compostable Paper means paper that is coated in a plastic material that will not breakdown in the Composting process.

Non-Organic Recyclables means non-putrescible and non-hazardous recyclables including, but not limited to bottles, cans, metals, plastics and glass. Non-Organic Recyclables are a subset of Packet Pg. 78
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Recyclable Materials.

Organic Waste means Discarded Materials containing material orginated from living organisms and their metabolic waste products including, but not limited to food, Yard Waste, organic textiles and carpets, lumber, wood, soiled Paper Products, manure, bisolids, digestate and sludges or otherwise defined under AB 1826 and SB 1383.

Overage means Gray/Black, Blue, or Green Container Waste exceeding its Container’s intended capacity such that the lid is lifted, would be lifted if closed, waste placed on top of lid, or in the immediate vicinity of the Container. Overage does not include batteries placed on top of a Blue Container as provided in Section 6.02.E.

Paper Products include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue and toweling or as otherwise defined in 14 CCR Section 18982(a)(51).

Party or Parties refers to the City (ies) and Franchisee, indivdually or together.

Premises means any Residential, Multiple-Family Dwelling, or Commercial Premises.

Prohibited Container Contaminents means the following (1) Discarded Materials placed in the Blue Container that are not identified as designated Blue Container Waste or that are not identified as acceptable materials for the City’s Collection program; (2) Discarded Materials placed in the Green Container that are not identified as designated Green Container Waste or that are not identified as acceptable for the City’s Collection program, and (3) Discarded Materials placed in the Gray/Black Container that are acceptable Blue Container Waste and/or acceptable Green Container Waste to be placed in collector’s Blue and/or Green Containers; and (4) Excluded Materials placed in any container. For the purposes of this Agreement, “contamination” or “contaminated” means the presense of Prohibited Container Contaminants.

Public Containers means containers designated for the collection of Gray/Black Container Waste, Blue Container Waste, and Green Container Waste at City Facilities or public places as listed in Appendix C.

Putrescible Waste means wastes that are capable of being decomposed by microorganism with sufficient rapidity as to cause nuisances because of odors, gases, or other offensive conditions, and includes materials such as, but not limited to Food Waste, offal, and dead animals; or as otherwisedefined in 14 CCR 17402(a)(21).

Qualified Household Hazardous Waste means waste materials determined by the State Integrated Waste Management Board, the Departmetn of Health Services, the State Water Resources Control Board, or the Air Resources Board to be:

1. Of a nature that they must be listed as hazardous in State statues and regulations;

2. Toxic/ignitiable/corrosive/reactive; and

3. Carcinogenic/mutagenic/teratogenic;
which are discarded from households as opposed to busineses. Qualified Houshold Hazardous Waste shall not include Hazardous Waste.

Rate(s) or Customer Rate Caps means the maximum amount, approved by the Cities’ City Council that the Franchisee or City may bill a Customer for providing specified services under this Agreement. A Rate has been established for each individual service level and the initial Rates for Packet Pg. 79
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Rate Year One are presented in Appendix B and are adjusted annually according to Section 9. The Rates approved are the maximum Rate that the Franchisee or Cities may charge a Customer for a particular service level and Franchisee/City may, in its sole discretion charge any amount up to and including the maximum Rate approved by the Cities.

Rate Year means the period from July 1 to June 30 of the following year during the term of this Agreement and the period for application of each annual Rate adjustment as defined in Article 9.

Recycle, Recycled or Recycling means the process of separating, collecting, sorting, cleaning, treating, reconstituting or otherwise processing materials that are or would otherwise be disposed of in a landfill and returning them to the economic mainstream in the form of raw material for new, reused or reconstituted products which meet the quality standards necessary to be used in the marketplace.

Recyclable Materials or Recyclables include, but are not limited to clean and dry mixed paper (newspapers, magazines, catalogues, office paper, junk mail, paper bags, envelopes, colored paper, printing and writing paper), cardboard (boxes, paper board, egg cartons, shoe boxes), milk and juice cartons, glass bottles and jars (including clear, brown and green glass), aluminum (beverage containers, clean foil and food containers), steel, tin cans, small scrap metal, plastics #1, #2, and #5 (no polystyrene), and any other materials mutually agreed by the Parties, accepted by the processing facility, or as required by law.

Residential Customer means any person who subscribes to Residential Premises Franchise Services provided by the Franchisee pursuant to this Agreement.

Residential Premises means any building in the City used for or designated as a Single or MultiFamily Dwelling Premises where each living unit has individual Franchise Services and an individual account. This excludes hotels, motels or other similar Premises.

Residue means materials which remain after processing Recyclable Materials or Organic Waste which cannot be recycled, marketed, or otherwise utilized, including but not limited to materials such as rocks, contaminated paper, Putrescible Waste, and other debris.

Reuse means the use, in the same, or similar, form as it was produced, of a material which might otherwise be discarded.

Salvageable Material (or Salvaged Material) means an object or material that can be reused again, either for its original purpose or for a similar purpose, without significantly altering the physical form of the object or material.

SB 1383 means Senate Bill 1383 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7 and 39730.8 to the Health and Safety Code, and added Chapter

13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in statewide efforts to reduce emissions of shortlived climate pollutants. For purposes of this Agreement, SB 1383 specifically refers to the ShortLived Climate Pollutants: Organic Waste Reduction regulations developed by CalRecycle that created Chapter 12 of 14 CCR and amended portions of regulations of 14 CCR and 27 CCR.

Self-Haul means the infrequent transport of Solid Waste, C&D, Household Hazardous Waste, Recyclables, electronic waste, Organic Waste from a residence or Commercial or industrial business, where the waste is being generated, directly to an authorized landfill, transfer station or Packet Pg. 80
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processing facility. Transportation of materials must be accomplished by the resident, owner, or Commercial/industrial business entity that generates the waste.

Service Coordinator means City Manager or their designee.

Service Fee means a cost component of Franchisee Rate for providing Franchise Services under this Agreement, as specified in Section 9.03.A.1.

Single-Family or Single-Family Dwelling means any Residential Premises with less than five (5) units.

Solid Waste means all Putrescible and non-Putrescible Solid, and semisolid Wastes, including garbage, trash refuse, paper, rubbish, ashes, industrial wastes, Construction and Demolition Debris, abandoned materials and part thereof, discarded home and industrial appliances, dewatered, treated or chemically-fixed sewage sludge which is not Hazardous Waste, manure, vegetable or animal solid and semisolid waste, and other discarded Solid and semisolid Wastes.

Solid Waste does not include any of the following wastes: Excluded Materials; Hazardous Wastes; radioactive waste, Medical Waste and infectious waste, and Recyclable Materials, Organic Waste, Construction and Demolition Debris, manure and/or Salvageable Materials if such materials have been Source Separated by the Generator for the purpose of Recycling, Composting, processing, salvage or Reuse.

Source Separated means materials that have been separated for the purpose of collection, such that Blue Container Waste, Green Container Waste, Construction and Demolition Debris, manure and/or Salvageable Materials are separated from Gray/Black Container Waste for the purposes of Collection, Recycling, salvage, Reuse and/or processing.

State means the State of California.

Supermarket means a full-line, self-service retail store with gross annual sales of two million dollars ($2,000,000), or more and which sells a line of dry grocery, canned goods or nonfood items and some perishable items as defined in 14 CCR Section 18982.

Term means the duration of the Agreement, including extension periods granted, as specified in Article III.

Tier One Commercial Edible Food Generators means a Commercial Edible Food Generator that is one of the following: (a) Supermarket; (b) grocery store with total facility size equal or greater than 10,000 square feet; (c) food service provider; (d) Food Distributor; and (e) wholesale food vendor.

Tier Two Commercial Edible Food Generators means a Commercial Edible Food Generator that is one of the following: (a) restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet; (b) hotel with an on-site food facility and 200 or more rooms; (c) health facility with an on-site food facility and 100 or more beds; (d) Large Venue; (e) Large Event; (f) a State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet; (g) a local education agency with an on-site food facility.

Ton means a “short ton” equal to 2,000 pounds.

Uncontrollable Circumstance means only the following acts, events or conditions, whether Packet Pg. 81
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affecting the Franchisee Operating Assets, the Cities, or the Franchisee, to the extent that it materially and adversely affects the ability of either party to perform any obligation under the Agreement, if such act, event or condition is beyond the reasonable control and is not also the result of the willful or negligent act, error or omission or failure to exercise reasonable diligence on the part of the party relying thereon as justification for not performing an obligation or complying with any condition required of such party under this Agreement; provided, however, that the contesting in good faith or the failure in good faith to contest such action or inaction shall not be construed as willful or negligent action or a lack of reasonable diligence of either party:

1. An act of nature (but not including reasonably anticipated weather conditions for the geographic area of the facility), hurricane, landslide, lightning, earthquake, tsunami, fire, explosion, flood, epidemic, pandemic, quarantine, sabotage or similar occurrence, acts of a public enemy, extortion, war, blockade or insurrection, riot or civil disturbance;

2. A Change in Law;

3. The failure of any appropriate Governmental Body or private utility having operational jurisdiction in the area in which the Franchisee Operating Assets are located to provide and maintain utilities, services, water and sewer lines and power transmission lines to the Franchisee Operating Assets, which are required for the performance of the Franchise Services and which directly results in a delay or curtailment of the performance of the Franchise Services;

4. Pre-emption of materials or services by a Governmental Body in connection with a public emergency or any condemnation or other taking by eminent domain of any portion of the Franchisee Operating Assets; and

5. Strikes, work stoppages or other labor disputes or disturbances (collectively, “labor disturbances”) occurring with respect to any activity performed or to be performed by the Franchisee or any of the Franchisee’s sub-Franchisees or suppliers in connection with the Franchisee Operating Assets or the Franchise Services, to the extent labor disturbances do not exceed seven (7) days.

6. It is specifically understood that none of the following acts or conditions shall constitute Uncontrollable Circumstances unless caused by an event described above:

1. General economic conditions, interest or inflation rates, or currency fluctuation or changes in the cost or availability of fuel, commodities, supplies or equipment

2. Changes in the financial condition of the City, the Franchisee or any of its Affiliates or any sub-Franchisee affecting their ability to perform their obligations;

3. The consequences of errors, neglect or omissions by the Franchisee, any of its Affiliates or any sub-Franchisee of any tier in the performance of the Franchise Services;

4. The failure of the Franchisee to secure patents or licenses in connection with the technology necessary to perform its obligations hereunder;

5. Union work rules, requirements or demands which have the effect of increasing the number of employees employed in connection with the Franchisee Operating Assets or otherwise increase the cost to the Franchisee of operating and maintaining the Franchisee Operating Assets or providing the Franchise Services;

6. Labor disturbances occurring with respect to any activity performed or to be performed by the Franchisee or any of the Franchisee’s sub-Franchisees or suppliers in connection with the Franchisee Operating Assets or the Franchise Services, to the extent labor disturbances exceed seven (7) days; Packet Pg. 82
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7. Any failure of any sub-Franchisee or supplier to furnish labor, materials, service or equipment for any reason;

8. Equipment failure;

9. Any impact of prevailing wage law, customs or practices on the Franchisee’s construction or operating costs; or

10. Any act, event or circumstance occurring outside of the State of California.

Wood Waste means dimensional lumber, post-consumer, and other wood products, pallets and tree trunks, all of which are without paint or chemical treatment of any kind. Wood Waste is a subset of Organic Waste.

Yard Waste means all tree and plant trimmings, grass cuttings, dead plants, weeds, leaves, branches, dead trees and similar materials and any other similar materials mutually agreed by the parties; provided, however, that the parties hereto may, from time to time, mutually agree to exclude certain materials from the definition. Yard Waste is a subset of Organic Waste. Yard Waste items must be less than 4 inches in diameter and 3 feet in length, and must fit within the Green Container, and the lid must completely close.

Article II.

REPRESENTATIONS AND WARRANTIES OF THE FRANCHISEE
The Franchisee, by acceptance of this Agreement, represents and warrants that:

SECTION 2.01 CORPORATE STATUS
The Franchisee is duly organized and validly existing as a corporation under the laws of the State of California, with full legal right, power and authority to enter into and perform its obligations under this Agreement.

SECTION 2.02 CORPORATE AUTHORIZATION
The Franchisee has the authority to enter into and perform its obligations under this Agreement.

The board of directors of the Franchisee (or the owners/shareholders) have taken all actions required by law, its articles of incorporation, and bylaws to authorize the execution of this Agreement. This Agreement has been duly executed and delivered by the Franchisee and constitutes the legal, valid and binding obligation of the Franchisee, enforceable against the Franchisee. The Person(s) signing this Agreement on behalf of the Franchisee has the authority to do so.

SECTION 2.03 NO CONFLICT
Neither the execution nor the delivery by the Franchisee of this Agreement nor the performance by the Franchisee of its obligations hereunder:

1. Conflicts with, violates or results in a breach of any law or governmental regulations applicable to the Franchisee;

2. Conflicts with, violates or results in a breach of any term or condition of any judgment, decree, agreement (including, without limitation, the certificate of incorporation of the Packet Pg. 83
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Franchisee) or instrument to which the Franchisee is a party or by which the Franchisee or any of its properties or assets are bound, or constitutes a default under any such judgment, decree, agreement or instrument; or

3. Will result in the creation or imposition of any encumbrance of any nature whatsoever upon any of the properties or assets of the Franchisee.

SECTION 2.04 NO LITIGATION
There is no action, suit or other proceeding as of the Agreement Date, at law or in equity, before or by any court or governmental authority, pending or, to the Franchisee’s best knowledge, threatened against the Franchisee which is likely to result in an unfavorable decision, ruling or finding which would materially and adversely affect the validity or enforceability of this Agreement or any such agreement or instrument entered into by the Franchisee in connection with the transactions contemplated hereby, or which would materially and adversely affect the performance by the Franchisee of its obligations hereunder or by the Franchisee under any such other agreement or instrument.

SECTION 2.05 NO LEGAL PROHIBITION
The Franchisee and Cities have no knowledge of any Applicable Law in effect on the Agreement Date which would prohibit the performance by the Franchisee of this Agreement and the transactions contemplated hereby.

SECTION 2.06 INFORMATION SUPPLIED BY THE FRANCHISEE
The information supplied by the Franchisee in all submittals made in connection with negotiation and execution of this Agreement is correct and complete in all material respects.

SECTION 2.07 WAIVER OF CERTAIN RIGHTS
The Franchisee hereby:

Waives any right it may possess to contest the legal right, power or authority of the Cities to enter into and perform this Agreement, including particularly the provisions thereof, providing for the payment of Franchise Fees, the delivery to the Designated Disposal Facility of Gray/Black Container Waste which are not diverted from landfill Disposal, and Green Container Waste to the Designated Processing Facility and agrees to cooperate with and assist the Cities in supporting the legal validity of and authorization for such provisions in the event of any legal challenge thereto brought or made in any manner by a third party; and
Agrees to observe and comply with the operating rules and regulations established by the Authority with respect to the Designated Disposal/Processing Facility, including without limitation those governing delivery procedures, receiving hours, vehicle and waste inspection, Hazardous Waste screening, litter control and safety measures.

SECTION 2.08 FREE MARKET DECISION
The Franchisee, without constraint and as a free-market business decision in accepting this Agreement, agrees to use the Designated Disposal Facility for Disposal of Gray/Black Container Packet Pg. 84
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Waste and the Designated Processing Facility for processing of Franchise Green Container Waste and such decision in no way constitutes a restraint of trade notwithstanding any Change in Law regarding flow control limitations or any definition thereof.

SECTION 2.09 FRANCHISEE INVESTIGATION
The Franchisee has made an independent investigation to its satisfaction of matters, conditions, and circumstances relating to its execution and delivery of this Agreement and its obligations hereunder, including the nature and amount of Franchise Materials generated within the Cities and the source reduction and Recycling programs now in effect or currently planned to be put into effect in the Cities. The Cities expressly disclaim any warranties, either express or implied, as to the accuracy or reliability for any particular purpose of any data supplied by the Cities.

Article III.

TERMS OF AGREEMENT
SECTION 3.01 GRANT AND ACCEPTANCE OF FRANCHISE
A. Franchise Service. Pursuant to Public Resource Code Section 40059, the Cities hereby grant an exclusive franchise, license, and privilege, on the terms and conditions set forth herein, to the Franchisee for the service in the Franchise Area of collecting, transporting, handling, processing and/or disposing of Franchise Materials. By its executed acceptance hereof the Franchisee accepts the franchise, license and privilege so granted by the Cities on and subject to the terms and conditions contained herein and agrees to perform all of the duties and obligations of a Franchisee thereunder. Specifically, the Franchisee agrees to provide Franchise Services to any person within the Franchise Area subject to the payment by such person of the Customer Rates no greater than those specified in this Agreement, Appendix B, as adjusted in accordance with Section 9.02. The Franchisee shall provide Residential and Commercial service in accordance with this Agreement, and Premises in the Cities shall be required to have an Appropriate Level of Service.

B. Franchise Area. The area with respect to which this Agreement is granted is the Franchise Area.

C. Exceptions to Franchise. The franchise, license, and privilege granted in Subsection

3.01.A hereof shall not give the Franchisee any right or responsibility with respect to Excluded Materials or to the materials described below. This Franchise shall not preclude the categories of materials described below from being delivered to and Collected and transported by others, provided that nothing in this Agreement is intended to or shall be construed to excuse any person from any authorization from the Cities which is otherwise required by law:

1. Materials which would otherwise constitute Blue Container Waste, but which are not deposited in Blue Containers provided by the Franchisee, and are:
(i) collected by youth, civic, or charitable organizations, and private recyclers without payment or compensation of any type by the Generator related to the Collection or processing of such materials by such collectors, and
(ii) comprised of loads at least 90% of each load of which are actually Recycled, and are not deposited in landfills for Disposal;
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2. Materials which would otherwise constitute Franchise Materials removed from a Premises by a hired third-party contractor as an incidental part of a gardening, landscaping, tree trimming, cleaning, maintenance, construction or similar service offered by that contractor rather than as a hauling service;

3. Dead animals and animal waste and remains from slaughterhouses or butcher shops;

4. By-products of sewage treatment, including sludge, grit, and screenings;

5. Edible Food that is collected from a Generator by other person(s) such as a person from a Food Recovery Orgnization or Food Recovery Service for the purpose of Food Recovery, regardless of whether the Generator donates, sells or pays a fee to the other person to collect or receive the Edible Food from the Generator.

Further, the provisions of this Agreement shall not preclude or prohibit Cities, or any officer or employee thereof, or any employee of the State of California, or any governmental subdivision thereof, from Collecting, removing, and Disposing of Solid Waste from City or State facilities. In addition, the provisions of this Agreement shall not preclude or prohibit the owner or occupant of any Premises from personally (or by its employees, as applicable) Collecting, removing, and Disposing of Solid Waste, Recyclables, C&D materials or Organic Waste generated on such Premises, provided such self-hauling complies with the Cities’ Municipal Code, self-haulers that are Commercial Customers (including Multi-Family Customers) shall provide certain information detailed therein upon request of the Cities. Upon request by Franchisee, Cities shall provide to Franchisee all such self-haul information and records of such Commercial and Multi-Family Customers.

D. Haulage by Third Parties. This Agreement shall not prohibit haulers of Discarded Materials that are not Franchise Materials.

E. Corporation Yard(s) and Customer Service Office (s). The Franchisee shall locate its’ Customer Service Office(s) at a location within Monterey County. The Franchisee’s Corporation Yard shall be located at 621 El Camino Real, Greenfield, CA, or may be relocated upon mutual agreement within the vicinity of the Franchise Service Area.

SECTION 3.02 ASSIGNMENT AND TRANSFER OF FRANCHISE
A. Consent of Cities Required. This Agreement shall not be transferred, sold, pledged, hypothecated, leased, or assigned, nor shall any of the rights or privileges herein be transferred, sold, pledged, hypothecated, leased or assigned, either in whole or in part, nor shall title hereto or thereto, either legal or equitable, or any right, interest, or property herein or therein, pass to or vest in any person, except the Franchisee, either by action or inaction of the Franchisee or by operation of law, without the prior written consent of the Cities, which may be withheld or delayed in its sole and absolute discretion with or without cause. Any attempt by the Franchisee to effectuate any of the foregoing without the consent of the Cities shall be null and void. The restrictions in this section shall not apply to transactions between Franchisee and a Franchisee Affiliate.

B. Imposition of Conditions. The Cities may impose conditions and restrictions on any approval it may elect to give of any transaction described in Sections 3.02.A and 3.03 hereof, including without limitation conditions relating to payment of all costs relating to such transfer Packet Pg. 86
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and an additional fee of $10,000.00 and requiring acceptance of amendments of this Franchise.

SECTION 3.03 CHANGE IN FRANCHISEE OWNERSHIP OR CONTROL
A. Current Ownership and Control. The Franchisee represents that, as of the Franchise Date, the voting stock of the Franchisee is owned solely by Tri-Cities Disposal and Recycling Service, Inc.

B. Maintenance of Corporate Existence. The Franchisee covenants that during the Term of this Franchise it will maintain its corporate existence, will not dissolve or otherwise dispose of all or substantially all of its assets, and will not take any other action which would materially impair the ability of the Franchisee to perform the Franchise Service.

C. Consolidation, Merger, Sale, Transfer and Change in Control. The Franchisee shall not, without the prior written consent of the Cities which may be withheld or delayed in its sole and absolute discretion, acquire any entity, consolidate with or merge with another entity, or permit one or more other entities to consolidate with or merge into it, which results in loss by the Franchisee of operational or voting control of Franchisee.

D. Transfer of Voting Stock. The Cities’ prior written consent, which may be withheld or delayed in its sole and absolute discretion, shall be required for the sale or transfer by any means, whether by agreement or by operation of law (including transfers resulting from death, bankruptcy or divorce) of any of the voting stock of the Franchisee, which results in loss by the Franchisee of operational or voting control of Franchisee. The restrictions in this section, as well as Subsection C above shall not apply to transactions between Franchisee and a Franchisee Affiliate.

SECTION 3.04 PAYMENT OF CERTAIN COSTS BY FRANCHISEE
A. If the Franchisee requests the consent of the Cities for any transaction described in Section

3.02 or Section 3.03 hereof, the Franchisee shall reimburse the Cities for all costs and expenses incurred by the Cities in reviewing, examining, analyzing and acting on the request, including all direct and indirect administrative expenses of the Cities, consultants and attorney’s fees and expenses. In addition, the Franchisee shall pay a transfer fee in the amount of $10,000.00 as described in Section 3.02.B. Bills shall be supported with evidence of the expense or cost incurred.

The Franchisee shall pay such bills within thirty (30) days of receipt.

B. Reimbursement for Franchise Contract Administration. On behalf of each Party to this Agreement, the Franchisee shall reimburse the Authority or any designated successor Franchise Administrator(s) an annual sum of $20,000 per City, and each City $10,000. This fee is payable no later than August 31, 2025 and no later than August 31st of each succesive Term year of this Agreement. This rate is subject to annual cost adjustments in accordance with the Service Fee adjustment formula in Section 9.03.B.1.

SECTION 3.05 EFFECT ON PRIOR AGREEMENTS
The Parties acknowledge that, as of the Franchise Date, the following agreements are in effect between the Cities and the Franchisee:

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• Revised and Restated Franchise Agreement Between the Cities of Gonzales, Greenfield and Soledad, California and Tri-Cities Disposal and Recycling Service, Inc. for Solid Waste, Recycling, and Organics Collection Services, Dated: January 1, 2017 • Side Letter Agreement No. 2019-01, Dated May 9, 2019 (Corporation Yard) • Memorandum of Understanding in Regard to Negotiations for Amendments to Exclusive Solid Waste Handling, Recycling and Organics Collection Services Program Agreements, Approved March 2023 (SB 1383)
Such Agreements will continue in full force and effect through June 30, 2025. On July 1, 2025, which is the date on which the Franchisee is required to commence services pursuant to this Agreement, all such agreements will be superseded by this Agreement, and will be terminated except for indemnity provisions for any cause or event occurring in whole or in part prior to the termination date, the Franchisee’s payment obligations to the Cities and any other obligations that have accrued under such agreements prior to the termination date, or any other provisions that the agreements state shall survive termination, all of which together shall survive such termination.

SECTION 3.06 EFFECTIVE DATE AND TERM OF THIS AGREEMENT
The Effective Date of this Agreement shall be July 1, 2025. The Term of this Agreement shall be ten (10) years beginning with the Effective Date.

SECTION 3.07 EXTENSION TERM
The Franchisee may request up to two (2) five (5) year term extensions to the Term of this Agreement at the Cities’ sole discretion, for a total Term that does not exceed twenty (20) years.

Any City may grant the Franchisees’ request to extend the term, but under no circumstance is any City(s) required to extend the term. Franchisee must request each five (5) year extension in writing no later than three (3) years prior to the expiration of the then most current approved Term.

SECTION 3.08 NO GUARANTEES OF MATERIAL VOLUME OR COMPOSITION

OF CUSTOMERS
The Cities do not guarantee the quantity or composition of Discarded Materials that may be available for Collection by the Franchisee for subsequent transfer, transport, Reuse, salvage, Recycle, process, and/or Disposal by the Franchisee during the Term of the Agreement. The Parties acknowlege that the quantity and composition of the Discarded Materials may be impacted during the Term of the Agreement based on a number of unpredictable factors such as, but not limited to, (1) state of the economy, (2) the number of residents and number of types of businesses, (3) participation level of residents and business in various Diversion programs, (4) rate-setting practices for services, (5) changes in technology, (6) Cities’ ongoing effort to increase Diversion of Discarded Materials and Food Recovery, (7) impact of SB 1383 and programs implemented as a result of SB 1383 Regulations, (8) impact of new bans or policies on Disposal of materials established by each City and/or State.

Furthermore, each City does not guarantee the number or types of Customers that the Franchisee will have during the Term of the Agreement.

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Article IV.

GENERAL AGREEMENT
SECTION 4.01 GRANT OF AGREEMENT
The Cities hereby grant to Franchisee an exclusive right to engage in the business of Collecting and subsequently transporting, transferring, Reuse, salvage, Recycling, processing and/or Disposing Discarded Materials accumulated or produced in each City and to use the public streets and right-of-ways for such purpose, subject to the limitations in this Agreement.

SECTION 4.02 CITIES DESIGNATION OF FACILITIES
The Franchisee, without constraint and as a free-market business decision in accepting this Agreement, agrees to use the Designated Facilities for the purposes of Disposal or processing of all Discarded Materials Collected by the Franchisee under the terms of this Agreement. Such decision by the Franchisee in no way constitutes a restraint of trade nothwithstanding any Change in Law regarding flow control limitations or any definition thereof.

Article V.

COLLECTION SERVICES
SECTION 5.01 COLLECTION AND PROCESSING SERVICES
A. Commencement of Service. Commencing on July 1, 2025, the Franchisee shall provide the Franchise Services, as more particularly described below.

B. Overall Performance Obligations. The work to be done by the Franchisee pursant to this Agreement shall include the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform all requirements of the Agreement. The enumeration of, and specification requirement, for particular items of labor or equipment shall not relieve the Franchisee of the duty to furnish all others, as may be required.

The scope of services to be performed by the Franchisee pursuant to this Agreement shall be accomplished in the manner so that the residents and businesses receiving services are provided reliable, courteous and high-quality services at all times. The enumeration of, and specification of requirements for, particular aspects of service quality, shall not relieve Franchisee of the duty of accomplishing all other aspects in the manner generally provided in this Article, whether such aspects are enumerated elsewhere in the Agreement or not.

Franchisee shall not knowingly Collect Blue, Green, or Gray/Black Containers that include observable Excluded Materials.

C. Requirements for Parent Company or Affiliates. Upon approval by the Cities, Franchisee, its parent company, and Affiliates operating under the terms of this Agreement are allowed, at their option, to use each entity’s name to comply with the Collection vehicle and Container labeling requirements and may use each entity’s name on any education and outreach materials.

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D. Ownership of Discarded Materials. By operation of this Agreement, ownership and the right to possession of all Discarded Materials shall be transferred to the Franchisee from the person discarding the materials once such materials are placed in Containers and properly placed for Collection. If Excluded Materials are found in Containers set out for Collection, the materials shall be considered not properly placed for Collection, and Franchisee shall have the right to reject Collection of the contaminated Containers and the ownership of materials shall remain with the person discarding the materials. Nothing in this Agreement shall be construed to require Franchisee to take possession or ownership of Excluded Materials.

E. Compaction. Customers shall not permit Franchise Materials to be compacted in Franchisee-provided Containers, unless such compaction is provided by Franchisee using a Compactor under this Agreement.

SECTION 5.02 RESIDENTIAL THREE CONTAINER SYSTEM
A. General. Commencing on July 1, 2025, Franchisee shall provide a three-Container collection program for the separate Collection of Discarded Materials using Containers that comply with Appendix A.

B. Blue Container Waste Collection. Franchisee shall provide Blue Containers to Customers for Collection of Blue Container Waste and shall provide Blue Container Collection Services as provided in this Agreement. Francishee shall transport the Blue Container Waste to the Designated Recyclable Materials Processing Facility. The Parties agree Recyclable Materials accepted as Blue Container Waste may be revised from time to time by mutual consent, as required by law, or due to changes in processor acceptance. Franchisee shall not remove materials to or from the list without the written consent of the Cities or signed Amendment to this Agreement, and such approval shall not be unreasonably withheld.

C. Green Container Waste Collection. Franchisee shall provide Green Containers to Customers for Collection of Green Container Waste. Franchisee shall transport the Green Container Waste to the Designated Organic Waste Processing Facility or the Designated Transfer Facility for transfer and transport to Designated Organic Waste Processing Facility.

The Parties agree that Organic Waste accepted as Green Container Waste may be revised from time to time by mutual consent or as required by law. Franchisee shall not add or remove materials from the list without written consent of the Cities or a signed Amendment to this Agreement, and such approval shall not be unreasonably withheld.

The Franchisee shall Collect all Green Container Waste generated by Residential Customers and delivered for Collection not less than weekly. The Franchisee shall provide, industry standard Containers (as described in Appendix A). The Cities shall be responsible for the cost of processing Green Container Waste at the Designated Processing Facility, and any other applicable surcharges and fees.

D. Gray/Black Container Waste Collection. Franchisee shall provide Gray/Black Containers to Customers for Collection of Gray/Black Container Waste, and shall provide Gray/Black Container Waste Collection services as provided in this Agreement. Franchisee shall transport the Gray/Black Container Waste to the approved Designated Disposal Facility.

Franchisee may allow certain organic material such as carpets and textiles to be placed in Gray/Black Containers.

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The Franchisee shall Collect and deliver to the Designated Disposal Facility, all Gray/Black Container Waste generated by Residential Customers and placed curbside for Collection not less than once per week. Collection will be performed with collection vehicles (as described in Appendix A). The Franchisee shall provide industry standard Containers (as described in Appendix A) based on size and service level requested by such Residential Customer. The Cities shall be responsible for paying the direct Disposal costs for Gray/Black Container Waste at the Designated Disposal Facility, and any other applicable surcharges and fees.

E. Used Motor Oil and Filter Collection. Franchisee shall, without charge or additional fees, Collect used motor oil and filters in a sealed container set out curbside by Residential Customers on their normal Collection day. Franchisee shall use the containers and filter bags provided by the Monterey County Health Department's Used Motor Oil and Filter Recycling Program (Program). Franchisee shall use reasonable business efforts to Recycle used oil and filters collected, with State-authorized recyclers. Franchisee shall not knowingly Collect used oil and filters that are contaminated as they constitute Hazardous Waste. Franchisee shall tag any oil and/or filters that are determined to be contaminated, provide an explanation as to why the material(s) are considered contaminated, and provide Residential Customers with directions for the proper Disposal of such material(s). In the event existing State and Monterey County grant funding for this Program is eliminated, both parties agree to negotiate in good faith an adjustment to the Franchisee's Service Fees solely for the loss of this funding source.

F. Curbside Used Battery Collection. Franchisee shall, without charge or additional fees, Collect used household batteries in a sealed plastic bag set out curbside by Residential Customers and placed on top of the Blue Container. Franchisee shall provide Customers instructions on how to properly dispose of batteries. Franchisee shall deliver Collected batteries to the Authority to be properly recycled.

G. Special Services. The Franchisee shall provide, without charge or compensation, special manual carry-out services for those Residential Customers who provide proof of long term or permanent disability of each permanent household member over 12 years old (Customers to provide such information to the City, which will notify Franchisee if a Customer qualifies).

Customers shall be required to store Containers in an easy-to-access and safe location as close as feasible to the curbside and not behind a locked door or gate on the property in order to facilitate qualifying manual carry-out services.

SECTION 5.03 MULTI-FAMILY DWELLING AND COMMERCIAL SERVICES A. General. Franchisee shall assist its Multi-Family Dwelling and Commercial Customers in complying with Multi-Family Dwelling and Commercial Diversion service levels and State mandates through provision of educational information and technical assistance. For purposes of this Section, “non-compliant Customer” shall mean a Multi-Family Dwelling or Commercial Customer with a Diversion service level ratio that is not adequate to meet State mandates.

B. Gray/Black Container Waste Collection. The Franchisee shall provide the number and kind of industry standard Containers and Collect and deliver to the Designated Disposal Facility all Gray/Black Container Waste generated by Multi-Family Dwelling and Commercial Customers, as scheduled with such Customers, but not less than once per week or as required by Applicable Law. The Collection will be performed with collection vehicles using Containers provided by the Franchisee (as described in Appendix A). The Cities shall be responsible for paying the direct Packet Pg. 91
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Disposal costs for Gray/Black Container Waste at the Designated Disposal Facility, and any other applicable surcharges and fees.

C. Blue Container Waste Collection. The Franchisee shall provide the number and kind of industry standard Containers and Collect, process, and market Blue Container Waste generated by Multi-Family Dwelling and Commercial Customers, as scheduled with such Multi-Family Dwelling and Commercial Customers, but not less than once per week. Franchisee shall provide adequate Blue Container capacity to meet Customer’s needs at no additional cost to Multi-Family and Commercial Customers.

The Franchisee shall be responsible for the cost of processing Blue Container Waste at the Designated Processing Facility, and any other applicable surcharges and fees.

D. Green Container Waste Collection. The Franchisee shall provide Green Container Waste Collection services to any Customers requesting such service to comply and in accordance with AB 1826 and SB 1383 according to the Rates in Apprendix B. The Franchisee shall Collect and deliver to the Designated Processing Facility all Commerical Green Container Waste generated by Multi-Family Dwelling and Commercial Customer at least once per week. The Collection will be performed with Collection vehicles using Containers provided by the Franchisee (as described in Appendix A). The Cities shall be responsible for paying the processing costs for processing Organic Waste at the Designated Processing Facility, and any other applicable surcharges and fees.

E. Waivers. The City Manager or their designated representative may waive the minimum Multi-Family Dwelling and Commercial service provision on a case-be-case basis due to unique Customer space limitations for Containers.

F. Outreach Assistance for Customers. Franchisee shall conduct assessments of and outreach to non-compliant Customers to assist such Customers in achieving compliance with the City’s Multi-Family Dwelling and Commercial Diversion service level ratio requirements.

Through its assessments and outreach, Franchisee shall document if the Customer is complying through activities conducted.

G. Push, Enclosure, and Long Walk Services. Upon receipt of a Multi-Family or Commercial Customer request for a roll-out Bin, the Franchisee shall provide push service (up to 15 feet on smooth level surface) for all Commercial Customers, who are required to roll out Containers (from one (1) cubic yard up to four (4) cubic yards) to a designated location for collection, such as but not limited to alley ways, narrow streets, etc. The Franchisee shall dismount vehicle, roll out Containers for Collection and then return Containers to secure enclosure location.

The Franchisee shall provide enclosure service for those Customers, whose Containers must be removed and replaced in an enclosure not meeting the requirements of this agreement, in order to be serviced. The Franchisee shall provide long walk services, as determined by the Franchisee, where the Franchisee must travel in excess of 15 feet from the centerline of the vehicle on the road used by the collection vehicle in order to service the container. The Franchisee shall be entitled to charge additional fees in accordance with Appendix B for providing these services.

SECTION 5.04 DROP-BOX/ROLL-OFF AND COMPACTOR SERVICES
General. If requested by a Customer, the Franchisee shall provide short term, on-call, or weekly Drop-Box/Roll-Off or Compactor Collection service according to the Rates specified in Appendix B. The Collection will be performed with Collection vehicles using Containers provided Packet Pg. 92
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by the Franchisee (as described in Appendix A). The Franchisee shall bill the Customer directly for this service. The Franchisee shall be responsible for the cost of disposal and/or processing Gray/Black Container Waste, Blue Container Waste and Green Container Waste at the Designated Processing Facilities, and any other applicable surcharges and fees. Customers using DropBox/Roll-Off and/or Compactor service as their permanent service, will be considered Commercial or Multi-Family Customers and will refer to Section 5.03 for all other services and conditions as specified in that section.

SECTION 5.05 CONSTRUCTION AND DEMOLITION (C&D) COLLECTION

PROGRAM
If requested by a Residential or Commercial Customer, the Franchisee shall provide Drop-off/Rolloff Containers for Collection of C&D according to the maximum Rates specified in Appendix B.

Wherever feasible, the Franchisee shall provide Collection services for Source Separated Collection of C&D materials including but not limited to asphalt, concrete, masonry, wood waste and scrap metal. The Collection will be performed with Collection vehicles using Containers provided by the Franchisee (as described in Appendix A). The Franchisee shall bill the Customer directly for this service and shall include both the direct Disposal and or processing costs and applicable surcharges and fees on the entire bill. The Franchisee shall be responsible for paying the direct Disposal costs and surcharges for Drop-box/Roll-off service at the Designated Disposal Facility. The Franchisee shall be responsible for the cost of processing C&D that has been Source Separated from other Discarded Materials at the Designated Processing Facility, and any other applicable surcharges and fees.

SECTION 5.06 COMMUNITY DROP-OFF EVENTS AND BULKY ITEMS

PROGRAM
Franchisee shall provide up to three (3), one-day “Community Drop-off Events” per Franchise Year to each City on the days agreed upon by Franchisee and the City Manager. For each event, Franchisee shall provide up to five (5) 40-cubic yard Collection Containers to be placed at a location or locations designated by each City Manager and agreed upon by Franchisee, for the collection of all Franchise Materials and Bulky Items from any Residential or Multi-Family Dwelling Customer. The Franchisee will work with each City Manager to coordinate the Drop-off Event day at least one month in advance, and will be responsible for advertising the event at least two weeks in advance, and will notify all Customers regarding the specific date for collection and allowable materials in accordance with Appendix D. The location will be monitored by Franchisee and each Container will be removed at the end of the event. All materials will be delivered to the Designated Disposal/Processing Facility.

In addition to the foregoing, the Franchisee shall work with each City Manager to assist in coordinating volunteers, provide Collection Containers and establish a time and coordinate community volunteer effort for the removal of litter and debris from designated public rights-ofway. This is to be done twice annually (one day for each event) for a maximum of two (2) miles of roadway per event.

The Franchisee shall also Collect up to five (5) Bulky Items four (4) times per year curbside at each Customer Premises from Residential, Multi-Family Dwelling, and Commercial Customers in accordance with this Section at the Rates specified in Appendix B. To arrange for a Bulky Item pickup, a Customer must call the Franchisee Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m. to arrange for a mutually acceptable time and day for the Collection of said Packet Pg. 93
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material. The Franchisee shall then pick up the material at the agreed upon day and time. Unless otherwise agreed by the Customer, Franchisee shall strive to collect Bulky Items within the week following the date when the Customer first called for this service.

SECTION 5.07 CITY SERVICES
A. City Facilities. The Franchisee shall, without charge or compensation, collect Gray/Black Container Waste, Green Container Waste, and Blue Container Waste from all City Facilities located within the boundaries of the City and identified in Appendix C. Cities shall pay for cost of Disposal and processing of Franchise Materials. Wastewater treatment process sludges and materials are not included.

B. Public Containers for Discarded Materials. The Franchisee shall, without charge or compensation, collect Discarded Materials from public Gray/Black Containers, Green Containers, and Blue Containers from locations identified in Appendix C. Such locations and schedule may be modified from time to time by the City Manager, provided that Franchisee is compensated for its additional costs. Public Containers must be compatible with Franchisee’s Collection processes.

C. Illegal Dumping Abatement. Upon request of the City Manager, the Franchisee shall within two (2) normal Business Days Collect and remove from City streets, alleys, parks and other public areas which are located within Franchise Area, Bulky Items and Solid Waste identified by the City Manager in any volume which has been unlawfully abandoned or discarded. For any such Collection the Franchisee shall receive compensation from the City on the basis of time and materials at rates as agreed upon by the City Manager and Franchisee. The Franchisee shall create a specific work order in response to each call received by the City Manager with a monthly "Summary of Unlawfully Discarded Solid Waste Work Order Completed." The summary shall include, but not be limited to, the date, time, hours spent, and type of unlawfully discarded Solid Waste Collected and disposed of.

SECTION 5.08 SPECIAL EVENTS AND SERVICES
A. General. The Franchisee shall provide adequately sized Containers for the Disposal of Gray/Black Container Waste, Blue Container Waste, and Green Container Waste at up to six (6) special events as identified and approved by the City at no additional charge to the event or City per year. The Franchisee may provide additional services for such events or provide service at additional special events at a mutually agreed rate. The Franchisee shall provide the special event services to the other events that are sponsored by the City upon thirty (30) calendar days’ advance notice by the City Manager. The Franchisee shall deliver Containers to specified sites and then dispose of the Solid Waste and Organic Materials at the Designated Facilities and process and market the Franchise Recyclables. The Franchisee shall not be responsible for paying for the disposal costs relating to the Franchise Solid Waste or Organic Materials collected pursuant to this provision; provided, however, the Franchisee will bear the costs of processing and marketing the Franchise Recyclables.

B. Reporting. At the City Manager’s request, Franchisee shall provide a report of Tonnage or volume of each material type Collected by the Franchisee, and a description of the public education provided at the event.

C. Coordination with Others. The Franchisee may, at its sole discretion and expense, coordinate with local youth, community or charitable organizations to provide some or all of the Packet Pg. 94
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required services. If Franchisee elects to use such an organization, Franchisee shall be responsible for ensuring that service is provided to the Customer in a professional and timely manner.

D. Service to Additional Special Events. For special events that are not identified or otherwise hosted or sponsored by the City, the Franchisee shall provide the above-described services at the request of the event organizer and may negotiate the charges for such services with the event organizer based on the specific needs of the event.

E. Annual Holiday Tree Recycling Collection. Annually, commencing on the regularly scheduled collection day during the first two weeks starting the week after New Year’s Day, the Franchisee shall collect holiday trees from Residential Premises. Residential Customers are required to place the holiday trees curbside on the scheduled Collection Day for Solid Waste.

Holiday trees placed for Collection after the Collection period will be collected in the Green Container. Trees must be cut to fit in the Green Container. Trees must be free of ornaments, garlands, tinsel and flocking, and stands must be removed. Multi-Family Dwelling Customers can request a Drop-Box container for placement of holiday trees for a cost in accordance with Appendix B.

Franchisee shall deliver the Collected holiday trees to an appropriate facility for processing. This annual service shall be provided at no additional charge. The Franchisee shall be responsible for individual Customer notification prior to the Collection program informing Residents of the dates of Collection.

F. Home Composting Bin Notification. Franchisee shall coordinate with the Authority and notify Residential Customers at least twice each Franchise Year, in accordance with Appendix D, of the availability of Composting bins for sale to Customers at a specified cost and location within the Cities.

G. Street Sweeping. The Cities may, at their discretion, instruct the Franchisee to provide street sweeping, in accordance with the provisions of this section and Appendix I. If any of the Cities determine that street sweeping is necessary to address litter abatement associated with the Collection of Discarded Waste, the Franchisee shall, without additional charge or compensation, provide weekly street sweeping services for each City no later than 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. Cities are required to provide and pay for water used in street sweeping and pay for disposal of residues.

It is further agreed that upon request for street sweeping services, the Cities shall provide the Franchisee one-hundred twenty (120) days’ written notice to allow the Franchisee adequate time to procure additional staffing and/or equipment, if necessary.

H. Additional Services. The Franchisee shall provide special services identified in the Customer Rate Schedule identified in Appendix B. Franchisee shall provide additional special services requested by any Customer which are directly related and ancillary to any of the other Franchise Services authorized hereunder, provided Franchisee provides such services in the area.

Such special services may include, without limitation, cleaning or exchange of Containers, providing roll-off Containers to Customers for special events or other special Collection needs.

I. Service Coordinator. The City and the Franchisee each shall designate in writing on or immediately following the Franchise Date a person to transmit instructions, receive information Packet Pg. 95
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and otherwise coordinate service matters arising pursuant to this Agreement. The City Service Coordinator shall be the City Manager or designee. Either party may designate a successor or substitute Service Coordinator at any time by written notice to the other party.

J. Use of Plastic Bags. Franchisee shall allow Customers and Generators to place and collect bags of Gray/Black Container Waste in large plastic bags for placement in the Gray/Black Containers. No plastic bags are allowed inside the Blue Containers or Green Containers.

Franchisee shall allow Compostable Plastic bags in the Green Container for selected Commercial businesses. If, at any time during the Term of the Agreement, the Designated Organic Waste Processing Facility can accept plastic bags or can no longer accept Compostable Plastic bags, Franchisee shall notify the Cities within forty-five 45 days of the Facility’s ablity to accept plastic bags or inability to accept Compostable Plastic bags. The notification shall include a desccription of the reasons that the Facility can accept plastic bags or is no longer able to process the Compostable Plastic bags and the Franchisee’s proposed plan to assist in the education and outreach to Customers.

SECTION 5.09 COLLECTION SERVICE OPERATING REQUIREMENTS
A. Collection Routes. The Franchisee shall establish and maintain Collection routes in such manner as to provide for the uniform and efficient Collection of Franchise Materials from all Residential Customers on a Monday-through-Friday basis and Multi-Family Dwelling and Commercial Customers on a Monday-through-Friday basis. The Franchisee shall not schedule Franchise Materials Collection on Saturdays and Sundays, except as authorized by the City Manager or unless a regular service day falls on a holiday and service is delayed, necessitating Saturday Collection. For all Commercial Customers who require more than one (1) Collection per week, the Franchisee shall schedule Collections at appropriately spaced intervals throughout the work week and shall charge additional service fees for the applicable service level.

B. Collection Schedule Revisions. The Franchisee may request the City to approve any revision to the Residential Collection schedule which the Franchisee may propose. City approval of any such request will not be unreasonably withheld or delayed. Upon such direction or approval by the City, the Franchisee shall notify all affected Customers at least seven (7) days prior to implementing the revision. Franchisee may revise Commercial Collection schedules without City approval.

C. Route Books and Maps. The Franchisee shall prepare route books and maps for each route, which outline specific routing information regarding the daily collection of Franchise Materials. Route information shall be kept current and made available to the City Manager or their Service Coordinator for inspection upon request, subject to Section 8.01.

D. Hours of Service. Except for special pickups, collecting missed pickups, or due to emergencies, the Franchisee shall schedule no Collections from any Customer earlier than 5:00 a.m., or later than 5:00 p.m. Monday through Friday and earlier than 8:00 a.m. or later than 5:00 p.m. on Saturdays (except during holiday Collection schedule, annual Community Drop-off Events, or special events). In addition, the Franchisee shall use reasonable efforts to revise Collection routes to address noise complaints.

E. Holidays. Collection of Franchise Materials shall not be required on the following legal holidays: New Year’s Day, Independence Day, Thanksgiving Day and Christmas Day, except in case of emergency or as otherwise required by the City Manager. (The Franchisee acknowledges Packet Pg. 96
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that the Designated Disposal and Processing Facilities are not open on those days.) Whenever a regular Collection falls on such a holiday, the collection shall be made on the following working day, and Collections shall become current within one (1) week thereafter, with exception for Christmas Day and New Years Day.

SECTION 5.10 COLLECTION LOCATIONS
A. General. The Franchisee is responsible for the Collection of all Franchise Materials placed for Collection in a legal manner at the roadside, or in the event that physical conditions prohibit roadside placement, at a location within a reasonable distance of roadside, visible to the Franchisee. The Franchisee shall immediately notify the Service Coordinator of any condition at or near any Collection location which creates a safety hazard or accessibility problem. In such circumstances, upon authorization by the City Manager, the Franchisee shall arrange with the Customer for a temporary Collection location until the safety hazard or accessibility problem is corrected. The Franchisee shall, where necessary, traverse private roads in order to collect Containers deposited by Customers for Collection; provided, however, that the Franchisee shall not be required to utilize private roads if the owner of such road prohibits the use of such road by the Franchisee or if the owner does not execute a Franchisee-provided release form. The Franchisee shall also provide any other special services reasonably requested by a Customer; provided, however, that the Franchisee shall be entitled to reasonable compensation for providing such services, as specified in Appendix B.

B. Enclosures. Where the Collection location is within an enclosure constructed pursuant to the requirements of the City and the Franchisee, and upon the Customer’s request, the Franchisee shall be responsible for the removal and replacement of all Containers placed therein. The Franchisee shall use sufficient care in the handling of such Containers so as to prevent any damage to the enclosure, the enclosure doors, and adjacent facilities or improvements. The Franchisee shall repair at its own expense and within thirty (30) working days after notification from the Service Coordinator or Customer any such enclosure or adjacent facilities or improvements damaged by it. Franchisee fees would apply to such enclosure services. Customer shall be responsible for normal wear and tear, keep enclosures in good working condition, and shall safely accommodate the size and weight of the Containers and Collection vehicles.

C. Improper Loading and Placement of Containers. All Containers are to be Collected at the curbside and dumped with a fully automated lifting mechanism. The Franchisee shall Collect any Franchise Material that is properly loaded into the correct container. When Franchisee encounters Containers that are over-loaded/over-filled (too heavy to safely lift or lid does not sit flush with Container body) that could result in spillage or damage, or any Container where Franchise Materials will, of its own weight, fall out when emptied, Franchisee may empty the Container and charge an Overage fee as set forth in Appendix B, or it may choose not to empty the Container and provide notification to the Customer. The Franchisee shall clean up any spillage as a result of emptying overloaded Containers and shall also report the Overage charges to the City or the Authority per Appendix H.

D. Authorized Non-Collection of Certain Waste. The Franchisee shall not be required to collect Excluded Materials.

E. Record of Non-Collection. When any Franchise Material deposited for Collection is not Collected by the Franchisee, the Franchisee shall notify the Customer indicating the reasons for such non-Collection and the toll-free phone number of the Franchisee at which the Customer can Packet Pg. 97
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inquire as to the circumstances relating to the non-collection. This information shall either be in writing or by means of a checkmark on a form tag notice. The Franchisee shall maintain, at its place of business, a log listing all such circumstances in which collection is denied. The log shall contain the names of the Premises involved, the date of such notification tagging, the reason for non-Collection, and the date and manner of disposition of each case. The log shall be kept so that it may be conveniently inspected by the Service Coordinator upon request. The log relating to any particular tagging shall be retained for a period of two (2) years following such tagging.

F. Fees and Gratuities. The Franchisee shall not, nor shall it permit any agent, employee or sub-Franchisee employed by it, to request, solicit, demand or accept, either directly or indirectly, any compensation or gratuity for the Collection of Franchise Materials or other Franchise Services, except such compensation as is specifically provided for herein.

Article VI.

OTHER RELATED SERVICES
SECTION 6.01 TRANSFER, PROCESSING AND DISPOSAL
A. Designation of Facilities. Franchisee shall transport all Discarded Materials Collected in accordance with this Agreement to the Designated Facilities appropriate for each type of Discarded Materials. Once Collected materials are deposited by Franchisee at the appropriate Designated Facilities(s) ownership of such materials shall transfer from the Franchisee to the owner of the Facility operator of the Designated Facility(s), subject to the provision/limitations of that Designated Facility or contract. The Franchisee is not responsible for providing transfer, processing, or Disposal services unless otherwise provided herein. The initial Designated Disposal and Organic Waste Processing Facility shall be the Johnson Canyon Landfill, or the Jolon Road Transfer Station owned by the Authority. The Cities shall notify the Franchisee in writing of any changes in or additions to the Designated Disposal and/or Processing Facilities. The Franchisee shall transport and Dispose of all Franchise Materials which it collects but does not Divert from landfill Disposal at the Designated Disposal Facility and shall transport and deliver all Franchise Organic Waste which it collects to the Designated Processing Facility in accordance with the requirements of Applicable Law, and shall comply with the requirements, rules and regulations of the owner or operator of the Designated Disposal and Processing Facilities. The Franchisee agrees that it shall not Dispose of Blue or Green Container Waste at any Disposal Facility, through any other type of Disposal or, in the case of Blue Container Waste, through incineration, except as may be required in emergencies resulting from Uncontrollable Circumstances with the prior written approval of the City Manager.

B. Use of Alternative Facilities. The Cities may designate an alternative facility for Franchisee’s use for a short or extended period. Such a change shall be considered a jurisdictional directed change in scope and handled in accordance with such provisions in the Agreement. If a City-imposed change to the Disposal or processing location results in longer travel time and/or fuel usage by Franchisee, Service Fees shall be adjusted such that Franchisee will recover all its additional Franchisee expenses. Franchisee may request use of an alternate Recyclable Materials Processing Facility, either for a short or extended period; the City will not unreasonably withhold approval of such request.

C. Payment of Designated Facility Fees. Cities shall pay all tipping fees, Residue surcharges, Contamination Processing fees, and other costs charged by Facility operator(s) of Packet Pg. 98
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Designated Facility(s) for acceptance and transfer, processing, and/or Disposal of Blue Container Waste, Green Container Waste, and Gray/Black Container Waste collected in accordance with this Agreement. Franchisee shall receive compensation for transfer and processing costs in accordance with Article 9.

D. Disposal Records. The Franchisee shall keep and maintain such logs, records, manifest, bills of lading or other documents as the City Manager may deem to be necessary or appropriate to confirm compliance by the Franchisee with this Agreement and shall retain all weight slips or other call information provided to the Franchisee’s drivers by the owner or operator of the Designated Facility for three (3) fiscal years.

E. Gray/Black Container Waste Origin and Weight Tracking. The Franchisee shall submit monthly tonnage reports which track both Disposal and Diversion Customer type. The Franchisee shall work cooperatively with the owner or operator of the Designated Disposal Facility to assure all incoming Gray/Black Container Waste is recorded and assigned to the Franchise Area or other jurisdiction. The Franchisee shall keep, maintain, and make available to the City Manager upon request a list of all collection vehicles operating within the Franchise Area.

F. Recyclables Processing and Marketing. The Franchisee shall be responsible for the following activities:

1. The receipt, storage, and processing of all Discarded Recyclable Materials Collected by the Franchisee;

2. The marketing of products recovered from the processing of Discarded Recyclable Materials in accordance with the marketing plan submitted by the Franchisee under this Agreement for approval by the City Managers.

G. Payment of Recyclables Processing, Marketing, and Residue Disposal Costs. The Franchisee shall be responsible for the payment of all costs and expenses associated with the transportation, processing and marketing of Blue Container Waste and other Recyclables collected or delivered under this Agreement. In addition, the Franchisee will bear the costs of, and is solely responsible for, the proper and lawful Disposal of all processing residues.

H. Franchisee Responsibility for Marketing. The Cities shall have no responsibility for the availability of markets for recycled products, nor shall they have any liability associated with or resulting from the markets for, or end-uses of, Recycled products, and the Franchisee shall indemnify and hold the Cities harmless from same. In the event that there is a severe reduction in the pricing or marketability of Recyclables that causes the Franchisee financial hardship, the Cities may, but are not required to, negotiate a supplemental Rate adjustment to temporarily compensate the Franchisee until the markets recover. If approved, the adjusted Rates will be added to Appendix B and when Recycling markets improve and the Franchisee is no longer experiencing financial hardship, the Rate adjustment will be reversed and removed from Appendix B.

I. Recycling Market Development Zone. The Franchisee shall make Recyclables available to remanufacturing businesses, identified by the City Managers, within the Central Coast Recycling Market Development Zone at the prevailing market prices for those Franchise Recyclable Materials, or at such other prices agreed to by the parties hereto.

SECTION 6.02 CONTAMINATION & OVERAGE MONITORING
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A. General. Franchisee must comply with the following contamination and Overage monitoring requirements.

B. Contamination Inspection Methods. Container inspections shall be performed by Franchisee through visual inspection of the contents of the Containers. Franchisee’s personnel shall lift the Container lid and observe the contents or observe the contents as the Container is being Collected. Upon finding Prohibited Container Contaminants in a Container, Franchisee shall follow the contamination noticing procedures and contaminated Container handling protocols set forth below. If Franchisee wants to perform the Collection route reviews using electronic inspection methods such as the use of artificial intelligent cameras or sensors, Franchisee shall seek approval of its proposed methods from the City Managers. Commencing on or before July 1, 2025, or the date specified by the City Manager, whichever date is later, vehicles with automated Collection service, the Collection vehicle hopper shall be equipped with a video camera or other monitoring system.

C. Contamination Handling. Where Franchisee finds Prohibited Container Contaminants in any Containers, the Franchisee shall take the following action:

1. If Franchisee observes Prohibited Container Contaminants in a collected Container. The Franchisee shall either leave a Contamination notice indicating a warning or, depending on the severity or frequency of the contamination, a Contamination notice indicating a charge. The Rates for Contamination are specified in Appendix B. In the event that the Franchisee observes frequent Contamination from a particular customer, the Franchisee shall refer the customer to the City. The City, at its sole discretion, may require the offending customer to increase service capacity or frequency to mitigate contamination.

The Cities and/or the Franchisee can remove Contamination charges from Customers’ accounts with mutual coordination.

2. If Franchisee observes Prohibited Container Contaminants in an uncollected Container, the Franchisee shall leave an instructive Contamination notice on the Customer’s Container, gate, or door and/or mail or e-mail the notifications to the Customer indicating that Franchisee cannot Collect the Container as a result that it contains Prohibited Container Contaminants.

D. Contamination Violation Noticing. The format of the Contamination/Violation notice must be approved by the City Manager and at a minimum must include the following:
• Date of the offense;
• Description of the offense
• If available, a photograph or video (or link to the photograph or video); • A website to obtain additional information and/or receive responses to questions the Customer may have.

E. Overage Occurrences. Where Franchisee documents that a Customer has overfilled a container (Overage), the Franchisee shall collect the offending Container, where it can be done safely and without causing material to fall out of the container during the process. If a customer has been deemed to frequently cause Overage, the Franchisee shall notify the City. The City at its discretion can require the customer to increase service to reduce Overage.

F. Notification to Multi-Family Dwelling and Commercial Customers. If Franchisee leaves physical contamination notices on three (3) occasions reporting identification of Prohibited Packet Pg. 100 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

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Container Contamination on a Multi-Family Dwelling or Commercial Container, gate, or door, Franchisee shall deliver notification by in-person visit, telephone call, mail or e-mail to the responsible party(ies).

SECTION 6.03 PUBLIC OUTREACH AND EDUCATION
A. General. In order to promote public education, Franchisee shall create all public education materials and conduct education programs and activities described in this Section at its expense.

B. Program Objectives. Franchisee’s public outreach and education program strategy shall focus on improving Generators’ understanding of the benefits of and opportunities for source reduction, Reuse, and landfill Disposal reduction. It should enhance program participation and maximize Diversion of Recyclables and Organic Waste.

C. Annual Education Plan. The Franchisee shall submit a public outreach and education plan for review and approval of the Cities sixty (60) days prior to the commencement of services under this Agreement. Annually, the Franchisee shall develop and submit a public education plan to promote the programs performed by the Franchisee. The Franchisee shall work with an appropriate contractor or designated staff trained in public relations to provide focused, quality public education and awareness efforts. At a minimum, the public outreach and education plan will include items defined in Appendix D. All public outreach and education materials produced by the Franchisee shall be bilingual in both English and Spanish and must be reviewed by the Cities in advance of distribution. The plans and budgets for each Franchise Year shall be submitted to the City Manager for approval prior to implementation of such plans, as further defined in Appendix D.

D. Annual Budget. Franchisee shall spend, for the public education and outreach services described in Section 6.03, not less than One Hundred Twenty Thousand Dollars ($120,000.00) per Franchise Year. The budget shall be adjusted annually thereafter by the same percentage used to adjust Service Fees pursuant to Article 9.03.B.1 The Franchisee shall annually provide a detailed description of how such budget will be spent as part of the annual public education plan to be developed. Any unused funds shall be carried forward and added to the following year’s budget Franchisee will regularly participate in Central Coast Recycling Media Coalition (CCRMC) activities, including the following: attending meetings, helping develop media campaigns, contributing to subcommittee activities, and making an annual financial contribution of at least Three Thousand Dollars ($3,000).

E. Implementation of On-Going Education Requirement. At a minimum, Franchisee shall provide and perform the activities as outlined in Appendix D and shall perform these services in a manner that complies with requirements of this Section 6.03 and 14 CCR Division 7, Chapter 12, Article 4.

F. Minimum Language Requirements. Franchisee shall comply with the requirements of 14 CCR Section 18985.1 when preparing and distributing education information required by this Section, and shall include providing the education information in English and Spanish. Franchisee shall comply with the requirements in this section on or before July 1, 2025, or the date specified in 14 CCR Section 18985.1, whichever is later.

G. Minimum Website Requirements. Franchisee shall develop and maintain a website that is specifically dedicated to providing Customers with detailed service information. Franchisee Packet Pg. 101 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

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shall make the instructional service guides, mailers, newsletters and other outreach materials required above available for viewing and downloading through the Franchisee’s website. In addition to service information, the Franchisee shall include information on the City’s programs, including a link to the City’s Food Recovery program webpage.

H. Records & Reporting. Franchisee shall track and document all education and outreach activities in the County-wide reporting system (currently Recyclist), or an equivalent on-line, cloud-based system. Franchisee shall provide quarterly updates to Recyclist of customer lists and service levels for reporting purposes. Franchisee shall contribute to each Cities annual subscription costs for the online system which is subject to annual adjustment.

I. Minimum Recycled-Content Requirements. Franchisee shall provide all printed outreach and education materials, on a minimum of 30% post-consumer Recycled content paper when available. Franchisee shall provide all promotional items made from Recycled material including but not limited to recycled plastic, metal, paper, etc., when available.

SECTION 6.04 TECHNICAL ASSISTANCE PROGRAM
A. General. No later than thirty (30) days following the Effective Date of this Agreement, Franchisee shall designate a Recycling Technical Assistance Point of Contact (POC) to its Customers and provide such contact information to the Cities. If the Franchisee changes the POC, Franchisee shall provide the Cities notification of the change in POC within thirty (30) days of the change.

B. Technical Assistance Requirements. The POC shall provide technical assistance to Franchisee’s Commercial and Multi-Family Dwelling Customers to support Customer compliance with Blue and Green Container Waste Diversion requirements. POC shall provide waste reduction assistance to Commercial and Multi-Family Dwelling Customers. POC shall contact Multi-Family Dwelling and Commercial Customers and provide site visits for the purpose of assessing how much Blue and Green Container Waste is being disposed.

SECTION 6.05 FOOD RECOVERY PROGRAM
A. General. Franchisee shall cooperate with and shall not impede, interfere, or attempt to impede or interfere with the implementation, expansion or operation of Food Recovery efforts in the Cities.

B. Tier One and Tier Two Commercial Edible Food Generators. Franchisee shall assist the Cities with identfiying Tier One and Tier Two Commercial Edible Food Generators for the purpose of the Food Recovery program. Franchisee shall provide the Cities with a list of Commercial Customers that qualify or appear to qualify as Tier One or Tier Two Commercial Edible Food Generators, as defined by this Agreement.

C. Website Content. No later than July 1, 2025, Franchisee shall include Food Recovery program information on the Franchisee’s web site.

SECTION 6.06 BILLING
A. Franchisee Responsible.

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1. Franchisee Billing Statements. For each month the Franchisee shall prepare and provide to the Service Coordinator on behalf of the Cities, a statement (a "Billing Statement") by the 15th day of the following month, which Billing Statement shall set forth a calculation of the monthly Service Fee, in accordance with Appendix B. An additional statement shall be provided to reflect the Customer Rates paid directly to the Franchisee for the provision of Franchise Services during such month.

2. Billing Statement Estimates and Adjustments. To the extent that the actual value of charge, credit, index value or any other item in any Billing Statement cannot be accurately determined at the Billing Statement date, such item shall be billed on a good faith estimated basis reflecting actual operating experience and reasonable projections for the balance of the Franchise Year, and an adjustment shall be made to reflect the difference between such estimated amount and the actual amount of such item on the Billing Statement next following the date on which the Franchisee learns the exact amount of such item.

3. Annual Estimates. Upon request, the Franchisee shall provide to the Cities a written statement setting forth its reasonable estimate of the aggregate Customer Rate for the next year, which statement shall not be binding on the Franchisee. The Franchisee shall also estimate the number of Customers it expects the following year, as well as the type and level of service which it expects those Customers to subscribe to. The annual estimate prepared by the Franchisee shall be considered by the Cities in the Cities' ratification of Franchisee's recommended Customer Rates for such year.

4. Monthly Reconciliation. Upon Request, within fourteen (14) days of the close of each month, the Franchisee shall deliver to the Cities a monthly settlement statement (the "Monthly Settlement Statement") setting forth the aggregate monthly Service Fees payable with respect to such Franchise Year and a reconciliation of such amount with the Customer Revenues for such month. In the event that the aggregated monthly Service Fees for such month exceed the amount of Customer Revenues for such month, the Customer Rates shall be increased so as to generate sufficient additional Customer Revenues to make up such shortfall. If any amount is then in dispute, the Monthly Settlement Statement shall set forth the Franchisee's estimate of such amount and a final reconciliation of such amount shall be made in the Billing Statement for the Billing Period immediately following the resolution of such dispute.

B. Cities Responsible.

1. Billing by the Cities. The Cities shall bill Customers and be solely responsible for collecting payment from Customers and paying all applicable fees, excluding Drop-Box/Roll-off services. The Franchisee will specify the amount to be billed to each Customer for Franchise Services based on the classification of service which the Customer receives, and any additional services provided to the Customer, such as ancillary services or the collection of contamination and/or overage charges. Such amounts in addition to the Disposal, AB 939 fees, administrative and other costs borne by each City shall constitute Customer Rates and shall be established, calculated and proposed by the Franchisee and ratified by the Councils in accordance with Article

9. Other than the bills rendered to the Cities described above in Section 6.06.A, the Franchisee shall have no right to, and shall not, impose any fee or charge on any Customer or other person for Franchise Services except as provided in Appendix B.

2. Receipt of Payments. The Cities shall deposit all amounts received from Customers related to Franchise Services into a special account to be established by the Cities entitled the "Customer Revenue Account” or a title that clearly isolates this revenue. Such amounts shall Packet Pg. 103 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

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constitute Customer revenues. Such Customer Revenues shall constitute the property of each City, subject to the reconciliation of such Customer Revenues with the aggregate Customer Rates described in Appendix B. The Cities shall reconcile payments made by Customers to amounts billed to such Customers and shall send up to two (2) delinquency notices to Customers which do not make timely payment of amounts billed. The Cities shall, by the 25th day of each month, provide the Franchisee with a report detailing delinquent accounts. The Cities and Franchisee shall mutually develop a process for timely notification of all delinquent accounts and timelines for termination of Franchise Waste collection service at Cities’ request. Under no circumstances shall the Franchisee be entitled to Service Fees for Customers until and unless any delinquencies relating to such Customers' accounts are paid in full.

3. Setting of Customer Rates. The Customer Rates contained in Appendix B as proposed by Franchisee, will be ratified by resolution of the Councils. The Franchisee shall bill the Cities in accordance with the Rates set forth in Appendix B and pursuant to Article 9. The Rates will be established in such a manner as to ensure that the Franchisee receives the specified Service Fee for each account or special service for which the Cities collect payment. The Rates set forth in Appendix B are subject to annual adjustment by resolution of the Councils.

4. City Surcharges. Each City may, at its sole and absolute discretion, include in its bills to Customers any applicable fees or surcharges in the manner authorized by law, whether related to managing wastes or not, as may be imposed by each individual City Council, including but not limited to Recycling Fees, Landfill Disposal Fees, Waste Transfer Fees, Organic Waste processing Fees or AB 939 Program Fees.

C. Disputes. If the Franchisee disputes any amount billed by the Cities in any Billing Statement, the Franchisee shall provide the Cities with written objection within fifteen (15) days of the receipt of such Billing Statement indicating the portion of the billed amount that is being disputed and providing all reasons then known to the Franchisee for its objection to or disagreement with such amount. If the Cities and the Franchisee are not able to resolve such dispute within thirty (30) days after the Franchisee's objection, either party may refer such dispute to review pursuant to Section 11.08 hereof. Nothing contained in this Subsection shall limit the authority of any authorized officer of the Cities or any other governmental agency to raise a further objection to any amount billed by the Cities pursuant to an audit conducted pursuant to Applicable Law.

D. Transition Plan. The Parties hereto agree that the Cities interested in exploring the concept of transferring all billing responsibilities directly to Franchisee, shall inform the Franchisee by December 31, 2025, so Franchise has sufficient time to prepare a report by December 31, 2026, detailing the process that would be used in transferring billing responsibilities from the Cities to the Franchisee, including a detailed description of billing procedures that would be used by Franchisee and an estimate of both the initial costs for the transfer and all associated billing costs thereafter. The Cities and the Franchisee agree that thereafter, the Parties will reopen this Agreement, upon the Cities’ request, solely for the purpose of establishing appropriate terms and conditions for future billing services to be performed by Franchisee.

SECTION 6.07 GENERATOR WAIVER PROGRAM COORDINATION
A. General. The Cities may grant waivers described in this Section to Generators that impact the scope of Franchisee’s provisions of service for those Generators. Waivers issued shall be subject to compliance with 14 CCR Section 18984.11 or other requirements specified by the City Packet Pg. 104 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

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Manager.

B. Franchisee Waiver Request on Behalf of Customer. Upon reasonable belief that a Customer may qualify for a wavier allowed by the Cities pursuant to each City’s Code, the Franchisee may submit a requeset for the City to grant a waiver to the Customer in accordance with the City’s preapproved application process. The Franchisee shall obtain each Customer’s consent to the waiver application. City will review and approve or deny the waiver request. Upon City’s request, Franchisee may be required to upload each waiver application to a City designated web based software system.

C. Franchisee Review of Customer Waiver Request. Generators may submit requests for de minimus waivers or physical space waivers to the City. Upon City request, the Franchisee shall within fifteen (15) days review the waiver application of a Generator if the Generator is a Customer of the Franchisee and, in such a case, shall inspect the Customer(s)’ Premises to verify the accuracy of the application.

D. Franchisee Change in Customer Service Levels. If the City grants a waiver to one of the Franchisee’s Customers, the City shall notify the Franchisee within seven (7) days of the waiver approval with information on the Customer and any changes to service level or service requirements. Franchisee shall have seven (7) days to modify the Customer’s service level and billing statements, as needed.

E. Verification and Record Keeping. City or their designee shall verify that Customers that have been granted waivers are in compliance with such waivers within five (5) years of waiver approval. Franchisee and City will be responsible for maintaing records of all Customers granted waivers pursuant to this Section.

SECTION 6.08 INSPECTION AND ENFORCEMENT
A. Annual Compliance Reviews.

1. General. Franchisee shall perform compliance reviews described in this Section commencing January 1, 2026, and at least annually thereafter, unless otherwise noted.

2. Commercial Generator Service Compliance Reviews. The Franchisee shall complete a service compliance review of all Multi-Family Dwelling and Commercial Customers that generate two (2) cubic yards or more per week of Gray/Black Container Waste, including Green Container Waste, to determine their participation compliance with (1) Generator requirements under the City’s Gray/Black Container Waste, Blue Container Waste, and Green Container Waste Collection programs; and (2) if applicable for the Generator, Self-Hauling requirements pursuant to 14 CCR Section 18988.3 and each City’s Code, including whether a Multi-Family Dwelling or Commercial business is complying through Back-Hauling, Green Container and/or Blue Container Waste. The compliance review shall mean a “desk” review of records to determine Customers’ compliance with the above requirements and does not necessarily require an on-site observation of services. However, the City may request that the Franchisee perform an on-site observation of service in addition to or in lieu of the desk review if needed to obtain the required information.

3. Annual Hauler Route Review. Franchisee shall conduct annual hauler route reviews of Commercial, Multi-Family Dwelling and Residential Generators for compliance with the City’s Packet Pg. 105 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

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Gray/Black Container Waste, and Blue Container Waste, Green Container Waste Collection program. These hauler route reviews may be performed concurrently with contamination monitoring, provided that the Franchisee documents a reasonable sampling of Generators for which compliance with the City’s Collection program during the hauler route review was assessed.

B. Generator Waiver Assessments. Franchisee shall assist the Cities in verifying MultiFamily Dwelling and Commercial Generator de minimis and physical space constraint waivers, if requested via “desk” review or on-site audit, as applicable.

C. Compliance and Route Review Process.

1. Number of Reviews. The Franchisee shall conduct a sufficient number of route reviews to adequately determine Customers’ compliance with SB 1383 regulations, AB 1826, AB 341 and each City’s Code. The number of route reviews and timeframe of such reviews shall be decided by the Franchisee, provided that the route reviews comply with 14 CCR Section 18984.5(b). The City reserves the right to require additional inspections, if the City determines that the number of inspections conducted by the Franchisee is insufficient. The City may require the Franchisee to prioritize inspections of entities that the City determines are more likely to be out of compliance.

2. Non-Compliant Entities. When compliance reviews are performed by the Franchisee pursuant to Section 6.08.A, the Franchisee shall provide educational materials in response to violations. Franchisee shall provide these educational materials to the non-compliant Customers and Generators within twenty (20) days of determination of non-compliance or immediately upon determination of non-compliance, if such non-compliance is determined during an inspection or hauler route review. Franchisee shall document the non-compliant Customers and Generators, and the date and type of education materials provided and shall report such information to the City. Beginning January 1, 2026, the Franchisee shall, in addition to providing the education materials described in this Subsection, document non-compliant Customers and Generators determined through the Franchisee’s compliance reviews pursuant to 6.08.A and shall report all Customers and Generators with violations of SB 1383 regulations to the City. The City shall be responsible for subsequent enforcement action against the Generators.

3. Documentation of Inspection. The Franchisee shall generate a written and/or electronic record and maintain documentation of each inspection, hauler route reviews and compliance review, as applicable.

SECTION 6.09 SERVICE COMPLAINTS
A. General. The Franchisee shall maintain a written log of all oral and written service complaints registered with the Franchisee from Customers. The Franchisee during office hours shall have a complaint service and a telephone answering system having an answering capacity satisfactory to the City Manager. The Franchisee shall provide bilingual, English and Spanish speaking customer service representatives. Copies of all complaints shall be given to the City Manager as required by the reporting requirements established in Appendix H. The Franchisee shall record all complaints, including date and time, complainant name and address, and nature and date and time of resolution of complaint, in a computer-based log. This log shall be available to the City.

B. Required Response to Complaints. The Franchisee has until 4:00 p.m. of the next Packet Pg. 106 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

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Business Day after its receipt of notice from a Customer, or the City Manager, to respond to a reported failure to provide Franchise Service as required by the terms of this Agreement. Missed pick-ups shall be picked up no later than 4:00 p.m. the following normal business day, provided materials are placed in appropriate Containers and left in approved Collection locations.

C. SB 1383 Related Complaints. If Franchisee receives a complaint in which a person reports an activity that may be in violation of SB 1383 regulatory requirements, Franchisee shall document the information and notify the City for enforcement. Franchisee shall provide this information in a brief complaint report to the City for each SB 1383 non-compliance complaint within seven (7) days of receipt of such complaint and shall provide a quarterly summary report of SB 1383 noncompliance complaints. Upon request, Franchisee shall provide the Cities with documentation or information related to such complaints from records it is required to maintain under this Agreement.

D. Annual Review of Performance and Quality of Service. At the Cities’ sole option, with thirty (30) days’ written notification to the Franchisee, it may conduct a public hearing at which the Franchisee will be present and will participate, to review the Franchisee’s performance and quality of service and provide for evaluation of technological and regulatory changes. The reports required by the Agreement regarding Customer complaints may be utilized as a basis for review.

Performance and service quality review hearings may be scheduled by any of the Cities at its discretion throughout the Term of this Agreement. Within thirty (30) days after the conclusion of the public hearing, the City will issue a report on the adequacy of performance and quality of service. If any noncompliance with this Agreement is found, the City may direct the Franchisee to correct the inadequacies in accordance with the terms of this Agreement.

E. Liquidated Damages for Failure to Meet Requirements of Franchise. The City Manager may assess liquidated damages in the amounts listed below for Franchisee’s failure to meet the requirements of this Agreement. The City Manager’s decision to assess such liquidated damages shall not be deemed an election of remedies but shall be cumulative with any other remedies provided for in this Agreement or in Applicable Law. The City Manager may impose the fines listed below for the corresponding deficiency in performance by the Franchisee as its sole remedy for Franchisee’s breaches under this Section:

1. Failure to correct a missed service by 4:00 p.m. of the next Business Day of notice of the missed service: $100 per occurrence;

2. Failure to provide Containers to Residential Customers within seven (7) days of initial subscription to service or request for replacement of Container: $100 per day;

3. Failure to repair or replace any Container by 4:00 p.m. of the seventh (7th) day after notification by City or the Customer of the necessity thereof: $50 per occurrence;

4. Undertaking Collection operations earlier than 5:00 a.m. or later than 5:00 p.m.1:
$100 per day (not per Customer);

5. Failure to maintain Collection vehicles in neat and orderly manner, after notice by the City Manager and reasonable time to cure: $100 per day; 1 If a collection vehicle experiences a breakdown, it may run until 7:00 p.m. to finish a route.

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6. Failure to document a response to a Customer complaint or request within 48 hours of resolution: $100 per occurrence;

7. Franchisee imposes a special service not in accordance with Agreement or not requested by the Customer: $100 per occurrence;

8. Failure to clean up spillage or litter during Collection activity created by driver or truck: $100 per occurrence;

9. Failure to remit any fees due to City by the 25
th of the month: $100 per occurrence;

10. Penalty assessed for each day (after the 5th notice day) Franchisee does not provide required reports, provided City had provided five days’ written notice to Franchisee of a report being past due: $100 per day;

11. Failure to resolve a billing complaint within 30 working days from the complaint:
$50 per occurrence; each additional day problem not resolved: $50;

12. Assessment when Franchisee receives more than 25 service-related complaints in one month, excluding those where Franchisee has determined the complaint to be without merit and those types of complaints that are addressed in other liquidated damage items in this section:
$500;

13. Failure to tag with a contamination notice those materials not collected due to contamination or inappropriately prepared: $100 per occurrence.

City must make a claim for liquidated damages within 90 days of the underlying event. Any damages due under this section shall be compensated to the City(s). The parties agree that the City’s actual damages upon the Franchisee’s breach of any of the above described requirements of this Agreement would be difficult or impossible to ascertain, and that the liquidated damages provided for above represent the reasonable endeavor of the parties to agree on the amount of such damages, and such liquidated damages are intended to place the City in an economic position equivalent to that which it would have been if the described breach had not occurred, and that such liquidated damages are not a penalty, and shall constitute the only damages payable by the Franchisee to the City for each such singular breach event. The obligation to pay such liquidated damages shall not impair or limit the obligation of the Franchisee to the City under any other provision of this Franchise.

SECTION 6.10 REPORT OF ABANDONED MATERIALS
Franchisee shall report to the City locations where Franchisee vehicle drivers or other personnel observed accumulations of abandoned material. Such reporting shall occur within twenty-four (24) hours of observation and shall be in the form of an email to the City Manager or their designee identifying the address of the abandoned materials, a general description of the items abandoned, estimated quantity, and if available, a photo of the materials. If the Franchisee removes and Collects such materials in accordance with Section 5.07.C, Franchisee shall document and maintain a record of the Tons of materials removed from each site.

SECTION 6.11 NON-DISCRIMINATION
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Franchisee shall not discriminate in the provision of service or the employment of persons engaged in performance of this Agreement on account of race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, or sex of such persons or as otherwise prohibited by law or regulation. The Franchisee’s Rates, fees, or charges for all services rendered pursuant to this Agreement shall be non-discriminatory and uniform for equal services rendered.

SECTION 6.12 EMERGENCY CONTACT
The Franchisee shall provide the City Manager with an emergency phone number where the Franchisee can be reached in person, not by voicemail, at all times, twenty-four (24) hours per day.

Article VII.

STANDARDS OF PERFORMANCE
SECTION 7.01 PROPERTIES, FACILITIES, AND EQUIPMENT
A. General. Franchisee shall acquire and maintain at its own cost and expense Franchisee Operating Assets which in number, nature, and capacity, shall be sufficient to enable the Franchisee to provide Franchise Services in accordance with the terms hereof. Franchisee shall maintain all its properties, facilities and equipment used in providing service under this Agreement in a safe, neat and clean and operable condition at all times.

B. Insurance. The Franchisee shall at all times during the Term of this Agreement, at its own cost and expense, obtain and maintain insurance in accordance with Appendix F.

SECTION 7.02 VEHICLES
A. General. All vehicles used by the Franchisee in providing Collection services shall be registered with the California Department of Motor Vehicles and inspected by the California Highway Patrol at frequency required by the state, and shall meet or exceed all legal standards including, but not limited to, 14 CCR Section 17341 et. seq. Vehicles shall be operated in compliance with the California Vehicle Code, 14 CCR, Division 7, Chapters 3, Article 5.

Franchisee agrees to operate and maintain all its vehicles in compliance with the provisions of Applicable Law and regulations, including but not limited to, California Vehicle Code. All vehicles shall comply with the specification requirements in accordance with Appendix A.

B. Inventory. Franchisee shall furnish sufficient equipment to provide all services required under this Agreement, including backup Collection vehicles. Franchisee shall furnish the Cities a written inventory of all vehicles, including Collection vehicles, used in providing service, upon request. The inventory shall list all vehicles by manufacturer, Franchisee identification number, Authority tare weight number, if applicable, date of acquisition, depreciated life, type, and capacity.

C. Storage. Franchisee shall arrange to store all vehicles and other equipment in safe and secure location(s) in accordance with Cities’ applicable zoning regulations.

D. Access to Private Property. Franchisee shall close all gates after making Collections and shall avoid crossing private or public planting areas and grounds or jumping over hedges and Packet Pg. 109 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

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fences.

E. Vehicle Backing. Franchisee shall use all reasonable means to minimize any backing of Collection vehicles on public streets.

F. Spills and Leaks Prevention. Each Collection vehicle shall be designed so that Discarded Materials will not blow, fall or leak out of truck on the street. All Discarded Materials shall be transported by means of vehicles equipped with leak-resistant bodies fitted with close fitting covers. Vehicles shall be equipped with a mechanical cover or tarp, that is adequate to cover and prevent Discarded Materials from blowing out of the vehicle. In the event that a spill or leak of Franchise Materials occurs during the Collection process, Franchisee shall immediately, upon the occurrence, clean up the spill or leak.

G. Load Limits. Franchisee shall not load vehicles in excess of the manufacture’s recommendations or limitations imposed by State or local weight restrictions on vehicles.

H. Vehicle Inspection by Cities. All trucks used in the Collection and transportation of Discarded Materials may be inspected at such time and place as designated by the City Manager.

The City Manager may schedule an annual inspection for randomly selected trucks operated by Franchisee. The City Manager may revoke the use of any truck that fails to meet the requirements of this Agreement, and such truck shall not be used for the Collection or transportation of Discarded Materials until the issue has been corrected to the satisfaction of the City Manager.

Revocation of the right to use a truck shall not excuse the Franchisee from performing any of its obligations under this Agreement.

SECTION 7.03 CONTAINERS
A. General. Franchisee shall provide industry standard Containers used for storage of Discarded Materials to all Customers. Containers shall meet all applicable federal regulations on Solid Waste generation safety and shall comply with the specification requirements in accordance with Appendix A.

B. Maintenance and Repair Requirements. The Franchisee shall provide Containers to Customers as designated in Appendix A. Franchisee shall be responsible for the general maintenance and repair of Containers provided to Customers. The Franchisee shall repair or replace at its own expense, any Container provided by the Franchisee which becomes unusable by any reason of normal wear and tear or is damaged by the Collection operations. The Franchisee shall charge the Customer the Container replacement charge designated in Appendix B for replacement or repair of Containers which are stolen or damaged by an event not caused by the Franchisee. Such repair, replacement, or a temporary service solution shall occur within five (5) Business Days following notification to the Franchisee of the need for a new Container. Once annually, Franchisee shall provide bin cleaning for Customer requesting such service at no additional cost. Cart Customers can request such service at a Rate specified in Appendix B.

C. Containers after Termination. At the end of the Term or earlier termination of the Franchise, the City shall have the right to purchase all or none of the Containers owned and utilized by the Franchisee to provide services under this Agreement. In the event that the City elects to exercise such option to purchase, the purchase price payable by the City with respect to each Container that it elects to purchase shall be the then-current book value of such Container, plus Franchisee’s removal and delivery fees.

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The Franchisee shall be responsible, at its own cost and expense, for the removal of any Containers which the City does not elect to purchase.

SECTION 7.04 DIVERSION REQUIREMENTS
A. Diversion Goal. In the event that CalRecycle determines that the any of the Cities have failed to meet the City’s applicable annual Diversion goal(s), and such failure resulted from Franchisee’s breach of this Agreement, Franchisee shall submit a plan to the City no later than two (2) months after the City provides notice of CalRecycle’s determination of non-compliance which details additional steps and/or programs the Franchisee shall implement to assist the City with achieving the City’s Diversion requirements, as well as the increased costs for which the Franchisee would be reimbursed. The plan shall include:

1. A summary of additional Diversion improvement activities that the Franchisee can implement within its current programs without additional cost to the Customers (i.e., changes to public outreach messages, City Code changes, improved enforcement of Habitual Contaminators); and

2. A summary of new or enhanced infrastructure or other Diversion improving activities or programs that could achieve the goal but would potentially require an increase to Customer Service Fees, and estimated Rate impacts to Customers for each option.

Franchisee, City Manager and the City’s contract administrator shall meet to discuss the plan, and the City Manager shall decide the most appropriate option to implement to increase Customer Diversion levels.

B. Diversion Credit, Not Disposal. Diverted Tonnage shall be Tonnage Collected and taken to a permitted transfer/processing facility for recovery, permitted composting facility, or other permitted recovery facility. Diversion achieved by transformation (conversion to energy) shall be credited toward reaching the Cities Diversion goals only to the extent that the State grants Diversion credit to the Cities.

Article VIII.

RECORD KEEPING AND REPORTING
SECTION 8.01 ACCOUNTING AND RECORDS
Franchisee shall compile and maintain records related to its performance under this Agreement as necessary to develop the reports required by this Agreement. Franchisee agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with and to meet the reporting and Discarded Materials program management needs of the Cities, AB 939, AB 341, SB 1383, other Applicable Laws, and the requirements of this Agreement.

Record keeping and reporting requirements specified in this Agreement shall not be considered limiting or necessarily complete. In particular, it is intended to highlight the general nature of records and reports and their minimum content and is not meant to comprehensively define the scope and content of the records and reports. Upon written direction or approval of Cities, the records and reports required by Franchisee in accordance with this and other Articles of the Packet Pg. 111 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

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Agreement shall be adjusted in number, format, or frequency. Franchisee shall maintain all records necessary to allow the Cities to determine Franchisee’s compliance with the terms of the Agreement and compliance with the performance standards presented in this Agreement. The records shall be maintained in a manner that allows for easy verification of Franchisee’s performance.

A. Maintenance and Audit of Records. The Franchisee shall maintain in its principal office full and complete financial and accounting records prepared on an accrual basis in accordance with generally accepted accounting principles. To the extent such records are necessary for the Cities to verify Franchise compliance with this Agreement, such records shall be subject to audit and inspection by the Cities and its authorized officers, agents or employees, at any reasonable time at the Franchisee’s principal office; provided, however, that nothing in this Agreement shall require Franchisee to permit City or its authorized officers, agents or employees to copy or otherwise take possession in any manner of any of Franchisee’s confidential information, proprietary information, trade secrets, or any other protected intellectual property of Franchisee (“Franchisee Intellectual Property”). In the event that the City utilizes any third party that is not an officer or employee of the City in such audit or inspection, such third party shall execute a reasonable non-disclosure agreement to protect Franchise Intellectual Property prior to any such audit or inspection. The gross receipts derived from the Franchise Services under this Franchise, whether such services are performed by the Franchisee or by a subcontractor or sub-contractors, shall be recorded as revenues in the accounts of the Franchisee. The Franchisee shall maintain and preserve all Disposal records for a period of not less than three (3) years following the expiration or termination of the Franchise.

B. Delivery of Financial Reports to Cities. At the request of any of the Cities’ City Manager, the Franchisee shall furnish, by April 15 of each year, at Franchisee’s sole cost and expense, complete annual financial statements of the Franchisee and/or the Franchisee’s corporate parent to the City Manager.

C. Customer Information Database. The Franchisee shall maintain a database which specifies the service address of each Customer within the Franchise Area, the service classification applicable to each Premise, and any special services provided to such Premises. The Franchisee shall provide the following information upon request:

1. The complaint/resolution log required to be maintained by the Franchisee,

2. Record of missed pickups,

3. Records of Container delivery,

4. Route identification,

5. Container servicing, and

6. Tagging notices for contamination, placement, or other reasons.

SECTION 8.02 MONITORING AND REPORTING
A. Records. The Franchisee shall maintain in its local office records for the City which reflect records required to conduct its operations, to support requests it may make to City, and to respond to requests from City. It is necessary for Franchisee to maintain accurate, detailed financial and operational information in a consistent format and to make such information available to the City at a reasonable time, and in accordance with reporting requirements specified in this Article. Some necessary records are as follows:

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1. Gray/Black Container Waste collected and disposed under the terms of this Franchise;

2. Blue Container Waste Collected and, if available from the processor, Blue Container Waste purchased, processed, sold, donated or given for no compensation, and Residue disposed; and

3. Green Container Waste, Wood Waste and/or Food Waste materials Collected and, if available from the processor, Green Container Waste received, purchased, processed, sold, donated, or given for no compensation, and Residue disposed.

Quantities by type of Blue Container Waste collected by Franchisee may be determined by estimates based on load sampling to characterize the contents of each commingled material load, using a sample protocol established by mutual agreement of Cities and Franchisee. Said records shall be subject to the inspection provisions described in Section 8.03.

B. Waste Disposal and Characterization Studies. The Franchisee shall cooperate with and assist the Cities in the performance of annual waste Disposal and characterization studies.

C. Collection Monitoring. The Franchisee shall monitor its Collection of Gray/Black Container Waste, Blue Container Waste, and Green Container Waste to assist in identifying occurrences of and reducing contamination of Blue Container Waste and Green Container Waste, the latter in particular for plastic and other inorganics. Up to twice per year, the Franchisee shall allow a person designated by the City Manager to ride with the Franchisee Collection vehicles on any route or routes. The City Manager will inform the Franchisee at least one (1) week in advance prior to date of route monitoring.

D. Reporting. The Franchisee shall submit all reports to the City Manager in accordance with Appendix H, Reporting Requirements:

1. Monthly Report Submittals: Monthly reports shall be submitted no later than the 25th of the month following the reporting period.

2. Quarterly Report Submittals: Quarterly reports shall be submitted no later than the 25th of the month following the end of the quarter.

3. Additional Reports: The Franchisee shall furnish the Cities with financial reports pursuant to Section 8.01 and any additional monthly or annual reports as may be required to set forth all information required under SB 1383. Said reports shall be in the form required by the Cities and shall categorize Recycling and Diversion activity in the manner required by the Cities.

SECTION 8.03 INSPECTION
The Cities shall have the right to inspect or review Franchisee’s service levels and Disposal records, payroll tax reports, specific documents required specifically or by inference pursuant to this Agreement. The Franchisee shall make them available at the Franchisee’s local office at any time during regular business hours for inspection and audit by any or all of the Cities during the Term of this Franchise and for a period of three (3) years following the expiration or termination of the Franchise.

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Franchisee agrees that the records of any and all companies conducting operations addressed in the Agreement shall be provided or made available to Cities and its official representatives for review. The Cities, its auditors and other agents selected by the Cities, shall have the right, during regular business hours, to schedule on-site inspections and review of the records that Franchisee is required to maintain under this Agreement.

SECTION 8.04 RESEARCH AND DEVELOPMENT
Franchisee agrees to take a proactive approach on its own initiative and, in addition, to cooperate with the Cities and the Authority in pursuing new technologies, management techniques and markets through pilot programs or other similar activities to improve cost efficiencies and product quality and to increase material recovery from the Collection and processing services described herein. The Franchisee and the Cities, by mutual agreement, will determine the scope of work, timing, costs, and reimbursement, if any, due to Franchisee to accomplish the purposes of this paragraph. The Franchisee shall provide the Cities, on request, with a written summary report identifying the results and conclusions of such research or pilot programs. If Franchisee deems such information proprietary or containing trade secret information, the Cities shall keep it confidential. In the context of the objectives of this paragraph, the Franchisee will meet with the Cities, as requested, to evaluate the performance of the Franchise Services and to examine new market opportunities for the processed materials produced by the Franchise Services.

Article IX.

CUSTOMER RATES AND SERVICE COSTS
SECTION 9.01 CUSTOMER RATES
Cities shall be responsible for ratifying the Rate caps proposed by the Franchisee set forth in Appendix B (the “Customer Rates” or “Rates”). The Rates that the Cities may bill Customers through the Rate Year ending June 30, 2026, shall not exceed the maximum amounts set forth in Appendix B, as they may be adjusted hereunder.

SECTION 9.02 ANNUAL CUSTOMER RATES AND SERVICE COSTS

ADJUSTMENTS
The Customer Rate for each type of service defined under Section 5 shall be composed of “Cost Components” 1-6 listed under Section 9.03 below.

Beginning the Rate Year starting July 1, 2026, and on the same date annually thereafter (the “Adjustment Date”), the individual Cost Components shall be adjusted as provided in Section

9.03.B. The Franchisee shall submit its maximum “Rate Adjustment” request in writing directly to Cities on or before April 1st of each succeeding year for review and is subject to ratification by each of the City Councils by resolution. Failure to submit a written request by April 1st of each year shall result in the Franchisee waiving the right to request such an increase for the subsequent Rate Year. Missed Rate Adjustments shall not be added to Rate Adjustment applications in ensuing years. The maximum Rates shall account for decreases in Cost Components.

SECTION 9.03 COST COMPONENTS AND RATE ADJUSTMENT INDEXES The approved maximum Customer Rates consist of base Rates and ancillary Rates, as they are Packet Pg. 114 Attachment: Tri-Cities & Disposal Franchise Agreement (3295 : Resolution No. 2025-41 Franchise Agreement with Soledad, Greenfield & Tri-

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Gonzales City CouncilJune 16, 2025

Gonzales City Council
June 16, 2025