GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 3-4-24 Page 1 of 2 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.” The Public is encouraged to attend and participate in person. Comments from the public on agenda items will be accepted until 4 pm on March 4, 2024, via email to [email protected] or via the payment/document drop box at Gridley City Hall and will be conveyed to the Council for consideration.
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CALL TO ORDER - Mayor Farr
ROLL CALL
PLEDGE OF ALLEGIANCE – Councilmember Sanchez
PROCLAMATION – None
INTRODUCTION OF NEW OR PROMOTED EMPLOYEES
Employee Recognition for Code Enforcement Officer Katie Hill COMMUNITY PARTICIPATION FORUM - Members of the public may address the City Council on matters not listed on the agenda. The City Council may not discuss nor take action on any community participation item brought forward by a member of the community. Comments are requested to be limited to three (3) minutes.
CONSENT AGENDA
1. City Council Minutes Dated February 20, 2024
2. Updated Cal-Card Policy
3. Escheatment Policy
ITEMS FOR CONSIDERATION
Gridley City Council – Regular Meeting Agenda
Monday, March 4, 2024; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 3-4-24 Page 2 of 2
4. Conduct a Public Hearing Regarding Solid Waste Rate Adjustments
5. Award of Contract to Commercial Pump and Mechanical (CPM) for Liberty Well Repairs
6. Concrete Removal on Electric Department Property at 57 E Gridley Rd.
CITY STAFF AND COUNCIL COMMITTEE REPORTS - Brief updates from City staff and brief reports on conferences, seminars, and meetings attended by the Mayor and City Council members, if any.
CITY ADMINISTRATOR REPORTS - Brief updates and reports on conferences, seminars, and meetings attended by the City Administrator, if any.
POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):
Gridley Unified School District Land Dedication (Laurel Street) 3/18/2024 Utility Write Offs 3/18/2024
Fire - Calendar Year End 3/18/2024
Second Amendment to Cooperation Agreement - Groundwater Sustainability Agencies in the Butte Subbasin 3/18/2024
Chandler Subdivision 3/18/2024
CalTrans Presentation of Highway 99 Project 3/18/2024
CLOSED SESSION
7. Closed session discussion with legal counsel pursuant to Government Code 54957.8: Case Review/Planning, 1 matter
8. Closed Session discussion with City Administrator Elisa Arteaga pursuant to Government Code 54957 – PUBLIC EMPLOYEE APPOINTMENT – Gridley Police Department, Sworn Peace Officer Position
ADJOURNMENT – adjourning to a Regular meeting on March 18th, 2023.
NOTE 1: POSTING OF AGENDA- This agenda was posted on the public bulletin board at City Hall at or before 6:00 p.m., March 1st, 2024. This agenda along with all attachments is available for public viewing online at www.gridley.ca.us and at the Administration Counter in City Hall, 685 Kentucky Street, Gridley, CA.
NOTE 2: REGARDING UNSCHEDULED MATTERS – In accordance with state law, it shall be the policy of this Council that no action shall be taken on any item presented during the public forum or on unscheduled matters unless the Council, by majority vote, determines that an emergency situation exists, or, unless the Council by a two-thirds vote finds that the need to take action arose subsequent to the posting of this agenda.
GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 2-20-24 Page 1 of 3 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”
CALL TO ORDER
Mayor Farr called the meeting to order at 6:00 pm.
ROLL CALL
Councilmembers
Present: Farr, Roberts, Sanchez, Calderon, Johnson
Absent: None
Arriving after roll call: None
Staff Present: Elisa Arteaga, City Administrator
Rodney Harr, Police Chief
Tony Galyean, City Attorney
Ross Pippitt, Public Works Director
Martin Pineda, Finance Director
Dave Harden, City Engineer
Donna Decker, City Planner
PLEDGE OF ALLEGIANCE
Vice Mayor Johnson led the Pledge of Allegiance.
PROCLAMATION – None
INTRODUCTION OF NEW OR PROMOTED EMPLOYEES - None
COMMUNITY PARTICIPATION FORUM
The forum was open, and seeing no one was present to speak, was closed.
CONSENT AGENDA
1. City Council Minutes Dated February 5, 2024
2. Award of Contract to Replace Furnace at the Recreation Center
3. January 2024 Expenditure Report
Gridley City Council – Regular Meeting Minutes
Tuesday, February 20, 2024; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 2-20-24 Page 2 of 3 Motion: to approve the consent agenda as presented.
Motion: Johnson
Seconded: Calderon
ROLL CALL VOTE: 5-0
Ayes: Calderon, Johnson, Roberts, Sanchez, Farr
ITEMS FOR CONSIDERATION
4. 2024 Energy Efficiency Rebate Programs
City Administrator Arteaga gave a brief update on the services that have been provided to the City by Efficiency Services Group for the past 20 years using the City’s Public Benefit Fund.
Administrator Arteaga requested Council’s input and preferences of potential program offerings moving forward that will be decided through a subcommittee consisting of City representatives and ESG consulting.
Councilmember Roberts will join the subcommittee.
5. Discussion Concerning City Consultants (Johnson)
Vice Mayor Johnson explained that he would like for City staff to bring forward a review of all consultant contracts. Johnson also stated that he would like a cost comparison of hiring an inhouse planner vs having a planning consultant. Mayor Farr and Councilmember Calderon supported the request.
City Administrator Arteaga informed Council that she will work with City staff and schedule future open study sessions with Council to review the material found.
6. AT&T Phone Utility Service Discussion (Sanchez)
Councilmember Sanchez requested Council’s vote to submit a letter of opposition for the record to the California Public Utilities Commission (CPUC ) on the matter of AT&T’s pending application to permanently discontinue landline phone services in California. During Council discussion on the matter, AT&T had released a 2nd notice redacting some of the information initially provided.
Councilmember Sanchez reiterated the support to submitting a letter on the Council’s behalf.
Motion: to submit letter of opposition for the record to CPUC Motion: Sanchez
Seconded: Johnson
ROLL CALL VOTE: 4-1
Ayes: Sanchez, Johnson, Roberts, Calderon
Noes : Farr
GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 2-20-24 Page 3 of 3
CITY STAFF AND COUNCIL COMMITTEE REPORTS
Councilmember Roberts reported on his attendance at the Red Suspenders Day meeting.
Vice Mayor Johnson reported on his attendance at the Sutter Butte Flood Control Agency meeting and the Mosquito Vector Control District Meeting.
CITY ADMINISTRATOR REPORTS
City Administrator Arteaga informed Council that she attended meetings with Rotary Club, Butte Water Subbasin, and FEMA Storm Readiness.
POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):
Gridley Unified School District Land Dedication (Laurel Street) 3/4/2024 Utility Write Offs 3/4/2024
Calcard Policy 3/4/2024
WM Franchise Agreement & Rate Increases 3/4/2024
Fire - Calendar Year End 3/4/2024
Second Amendment to Cooperation Agreement - Groundwater Sustainability Agencies in the Butte Subbasin 3/4/2024
Energy Efficiency Consulting Contract Review 3/4/2024
CLOSED SESSION – None
ADJOURNMENT
With no further items left to discuss, Mayor Farr adjourned to the next regular meeting of March 4th, 2024.
City Council Agenda Item #2
Staff Report
Date: March 4, 2024
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: Approval of Updated Cal-Card Policy
Recommendation
Staff respectfully request the City Council to approve the Cal-Card Policy and to make this policy effective immediately.
Background
The City of Gridley’s current Cal-Card Policy was approved by Gridley city council on 02/06/2006. The Cal-Card Policy being presented is an update to the policy so it’s in line with the City’s business needs. This Policy outlines the guidelines and regulations for the issuance, usage, and management of Cal-Cards within our organization. Cal-Cards are issued to employees who require them for authorized business-related expenses. Eligibility for a Cal-Card is determined by the employee's position, responsibilities, and the discretion of management.
Employees must have a valid business need and must complete any required training related to Cal-Card usage.
The updated Cal-Card Policy outlines to following, but not limited to:
- Purpose of the policy
- Issuance of Cal-Cards to staff
- Receipting/Invoicing and Statement reconciliation
- Procedures for reporting lost or stolen Cal-Card
- Procedures for replacing old/worn out cards
- Procedures for terminating a card
- Procedures for requesting a charge back
- Instructions on entering charges to Gridley’s Financial Software for payment processing - Prohibited Uses
Financial Impact
There is no financial impact as this policy aims to ensure transparency, accountability, and responsible stewardship of public funds while facilitating efficient business operation.
Attachments
Cal-Card Policy
Resolution 2024-R-005
X Regular
Special
Closed
Emergency
CITY OF GRIDLEY CAL-CARD POLICY
AND FINANCE DEPARTMENT PROCEDURES
1 TABLE OF CONTENTS
PURPOSE, DEFENITIONS, AND ISSUANCE OF BANKS CARDS ................... 2 PROGRAM AUDIT ................................................................................... 3 PROCEDURES AND INSTRUCTIONS ........................................................ 8 CALCARD RESTRICTIONS ......................................................................13 CALCARD REPLACEMENT......................................................................14 CHARGEBACK REASONS/DEFENITIONS.................................................15 2 PURPOSE
The purpose of this policy is to establish comprehensive guidelines and procedures for the issuance, use, and management of Cal Cards byemployees of the City of Gridley. This policy aims to ensure transparency, accountability, and responsible stewardship of public funds while facilitating efficient business operation.
PROHIBITED USES
The PROHIBITED USES are discussed on page 13. The Cardholder and Approving Official are required to be familiar with these prohibited uses.
DEFINITIONS
1. Cardholder: The Cardholder is the employee whose name is on the bank card. The Cardholder is authorized to make purchases of commodities on behalf of the City of Gridley and should be familiar with City purchasing and contracting procedures and policies.
2. Approving Official: The Approving Official is the employee who reviews the monthly bank statements to verify that purchases comply with program requirements and include proper documentation prior to authorizing payment. The Approving Official must have a working knowledge of various purchasing methods and be familiar with City purchasing and contracting procedures and policies.
3. Supervisor/ Department Head: In some cases, the Approving Official may appoint a supervisor to review all the Cal-Card purchases after the Cardholder has attached all the invoices to the statements. A Supervisor/Department Head may also be the one to request that Finance issue a new card or delete a card.
ISSUANCE OF BANK CARDS
U.S. Bank is the bank card contractor who will issue the bank cards. All Cardholders will receive their assigned bank card and the Cal-Card Policy from the City’s Administrative Secretary. - Cal Cards may be issued to employees who require them to carry out their official duties. - The issuance of Cal Cards will be authorized by the Department head and City Administrator.
- Requests for Cal Cards must be submitted through the appropriate channels and approved by the Department Director and City Administrator.
Upon receiving a request to issue a new Cal-Card, the Administrative Secretarywill return a memo to the new Cardholder confirming their supervisor’s request. Attached to the memo will be the Cal-Card procedures. Prior to receiving the Cal-Card the new Cardholder will be required to sign an acknowledgment indicating that they have become familiar with the Cal-Card procedures and will comply with the policy. At the same time the Cardholder will acknowledge the receipt of the bank card. This memo will be retained by the Administrative Secretary. 3 PROGRAM AUDIT
The Finance Department will perform an audit of the documentation submitted under this program. The audit will be performed monthly to monitor and ensure that the Cal-Card policies and procedures are being followed.
1. RESPONSIBILITY. The Cardholder is responsible for ensuring that the bank card is used appropriately, and all purchases of commodities are within the City's purchasing and contracting procedures and policies.
2. OBTAINING GOODS. The Cardholder uses the bank card to purchase goods in person, by telephone, or the internet.
3. SECURITY OF BANK CARD. The Cardholder is responsible for the security of the bank card.
4. DETERMINE THE NEED.
a. The Cardholder or his/her supervisor determines the need to purchase goods. b. The Cardholder determines if the request is an appropriate use of the bank card.
5. PROHIBITED USES. See page 13.
6. SECURING BIDS.
a. Purchases do not require competitive bids, although the Cardholder may wish to compare prices before making the purchase.
7. OBTAIN COMMODITY. The Cardholder will go to either the vendor’s place of business and obtain the commodity, call the vendor, and place the order, or order via the internet. In all cases, the Cardholder will require the vendor to itemize the receipt/invoice. An itemized receipt/invoice consists of the following information for commodity purchases:
• Description of commodities purchased.
• Quantity purchased.
• Price per item.
• Amount of sales tax and total amount.
• Shipping charges, if applicable.
• Date of purchase.
The itemized receipt requirement provided to the Finance Department is due to the following:
• An itemized invoice shows what has been purchased.
• An itemized invoice also shows if any labor has been paid for by credit card. Although labor is a prohibited charge, sometimes labor/services charges slip through. Finance is 4 required by law to report services received to the IRS. That means that if you pay for any services on Cal-Card, Finance will need to keep a list of all these charges to allow us to produce a 1099 Form for each of the vendors at the end of the year. If the Cardholder pays for a service/labor on your Cal-Card, the Cardholderwill be required to obtain a W-9 (page 29) from the vendor so that the correct information can be reported to the IRS at the end of the calendar year.
• An itemized invoice generally reflects if sales tax has been charged. Finance is responsible for making sure the city pays the correct amount of sales tax on each purchase. If an outof-state vendor does not charge the city for sales tax on an invoice, Finance keeps track of the amounts owed and remits those amounts after the fact to the State Board of Equalization.
8. TRAVEL
a. PRIOR to incurring any City related travel, the Cardholder is required to choose between being reimbursed on a per diem basis for their meals, which is accomplished by submitting a Check Request prior to travel or using their Cal-Card to pay for their meals (This optionis only available to cardholders, employees without Cal Cards will have to submit a check request). Once the decision is made, the Cardholder is not allowed to switch back and forth for the duration of that trip.
b. The Cardholder will require the vendor to provide an itemized receipt/invoice to support the credit card receipt(s) when paying for meals, hotel, airline ticket(s), vehicle rental(s), and incidentals.
Note: The meal receipt/invoice must be signed by the Cardholder. Indicate what meal the receipt/invoice is for, note the job order on the receipt, and attach the receipt/invoice to the monthly credit card bank statement for processing. The meal receipt/invoice need not be itemized if it is less than the standard meal allowance. If the meal costs more than the standard per diem meal allowance, the employee must provide an itemized receipt and a written explanation as to the reason for the excess. The excess amount will be subject to the Finance Director’s approval. Reimbursement to the City will be required for any charges not approved by the Finance Director. The Cardholder is not allowed to alternate between using their Cal-Card to pay for some meals and requesting a per diem allowance for others on the same trip. See item “a” above.
If by chance the cardholderis not able to receive an itemized receipt, the following is required to note on the statement or receipt:
1. That no itemized receipt was available.
2. Sign that no alcohol was purchased (alcohol related charges are strictly prohibited).
3. Sign that the meal was only for you while conducting City business. If the meal was purchased for others, please list everyone, and state the business reason for the meeting.
c. If the Cardholder is paying for a flight, a complete flight itinerary should be attached to the 5 itemized receipt/invoice.
d. A complete copy of the brochure outlining the seminar should be attached to the itemized receipt/invoice. Finance needs to know the time, place, business purpose and if any meals are included in the seminar. Note: If you incur charges for your trip that spans two credit card cycles, you will need to attach a complete copy of the brochure to both credit card statements.
e. A travel itinerary should be attached to the itemized receipt/invoice. f. If the Cardholder is traveling with a companion, the Cardholder should not use their Cal-Card to pay for meals or other travel expenses associated with the companion's travel. One standard room allowed per Cal Card.
9. BANK CARD RECEIPT/INVOICE.
a. Whether the purchasing transaction is by telephone, in person, or on the internet, the Cardholder should require the vendor to itemize the receipt or invoice. If the receipt or invoice is not itemized, write in the quantity and price of each item, item description and total dollar amount and have the salesperson sign the receipt. b. Upon the receipt of the bank card receipt/invoice, the Cardholder should complete the following:
(1) Note the City's expense account number on the receipt/invoice. (2) Put the receipt/invoice in a manila envelope to be retained by the end of the month for reconciliation to the Cardholder's bank statement.
c. If the Cardholder has lost receipts/invoices, first contact the vendor, and request a duplicate copy. Often there is a phone number for the vendor on the charge slip or bank statement.
10. BANK STATEMENT.
a. Each Cardholder will receive an individual bank statement. b. The Cardholder is required to reconcile the bank statement with the vendor receipts/invoices.
c. The Cardholder is responsible for attaching to the bank statement all corresponding receipts/invoices. Receipts/invoices will be placed in the order they are listed on the bank statement. PLEASE NOTE: Individual receipts/invoices smaller than 4-1/4" x 5-1/2" must be taped on an 8-1/2" x 11" sheet of paper, photocopied, and added to the support. d. The Cardholder is responsible for contacting the Bank Contractor on questionable items or 6 disputed items which appear as a transaction on the bank statement. Even if the cardholder is disputing the item, they must indicate the job order to be charged since the city has elected to pay all disputed items up front. If a credit is received for a disputed item, the expense account associated with that transaction should be the same as the original charge.
(1) It will be the Cardholder's responsibility to follow-up on questionable or disputed items.
e. Receipts should be kept until the credit transaction shows up on the bank statement.
Receipts then should be attached to the bank statement (see pages 8-10). f. All items (including disputed and credits) on the statement must be charged to anExpense account. Any reimbursement (credit amounts) should be applied to the same Expense Account as the initial charge.
g. The Cardholder will approve/sign/date both the bank statement and the CalCard Log indicated on forms as to where to sign and date.
h. Within three (3) working days from receipt of the bank statement, the Cardholder is to attach applicable receipts/invoices and other documentation to the bank statement, prepare the CalCard Log with expense account information and submit it to the Administrative Bank Card Folder. Upon receipt of all statements, the Administrative Secretary will forward the entire file to the Approving Official to validate all expense accounts and sign for approval of transactions.
11. REPORTING OF LOST/STOLEN BANK CARD.
a. Contact the Bank Contractor at 1-800-344-5696. The number is also located on the back of the bank card. If you need assistance, please contact the Administrative Secretary at City Hall.
Provide the following information: complete Cardholder’s name, card number, the date reported to the police (if stolen), and any purchase(s) made on the day the card was lost or stolen. A replacement card will be mailed within two (2) business days of such notice to the Bank Contractor.
b. Notify the Approving Official (Finance Department). See page 6.
Provide the following information: complete cardholder’s name, card number, the date reported to the police (if stolen), the date bank contractor was notified, and any purchase(s) made on the day the card was lost or stolen. c. If stolen, contact the local Police Department where it occurred and immediately report the card as stolen. An appropriate report will be made to include a case number. Please 7 retain that number for future reference. The caller will need to give the card embossed account number. If that number is not known, it can be obtained from the Administrative Secretary or Finance Director. The Police Department does not investigate credit card fraud until the investigative paperwork has been forwarded to them from the credit card company.
8 1. RECEIPT OF CARDHOLDER BANK CARD STATEMENT, RECEIPTS/ INVOICES AND GROUP BILLING SUMMARY.
a. Approving Officer should reconcile the main bank statement(Group Billing Summary)that lists all cards and activitywith the CalCard Purchasing Logs submitted by the Cardholders.
Purchasing logs should have receipts/invoices attached to the Group Billing Summary. b. The Cardholder should prepare a monthly CalCard Purchasing Log and provide the expense account for each transaction on the Cardholder's bank statement. c. The Cardholder should ensure that all attachments (receipts/invoices) are accounted for and forward them along with the bank statement and the Group Billing Summary to the appropriate Approving Official.
d. The Approving Official or a designee for the department will enter the Expense Account information into the Tyler Incode ERP PRO 10 financial software on the Intranet (see CalCard Procedures, on page 11). e. The Administrative Secretary will reviewsupporting documentationand logs and ensure all information is attached to CalCard logs. The Group Billing Summary will be forwarded to the Approving Official to approve, sign and date all the Cardholders’ CalCard Purchasing Logs. The Approving Official will forward the bank statements along with attachments and the Group Billing Summary to Finance (accounts payable) within three (3) calendar days from receipt of the bank statements from the Cardholders. All Cal-Card statements should be approved and forwarded to Finance no later than the 10th of each month.
2. REPLACEMENT BANK CARDS/ISSUANCE OF NEW CARDS.
There will be instances where the replacement of bank cards will be needed. It will be the cardholder’s responsibility to initiate this process by notifying theirDepartment Directorwho will notify the Administrative Secretary. Follow the instructions below which apply to your situation:
a. Issuance of New Cards.
(1) A memorandum or an email from the cardholder must be submitted to the Administrative Secretary indicating the Cardholder's name, telephone number, department name, dollar limit, and Approving Official's name. (2) The new Cardholder will be required to become familiar with the Cal-Card procedures and sign an acknowledgment that they have fulfilled this requirement and will comply with the procedures as outlined.
b. Replacement of Worn-Out Cards/Defective Cards.
(1) If a bank card needs to be replaced because it is worn out or defective, a memorandum or email from the cardholder requesting a bank card replacement must be submitted 9 along with the worn-out bank card through channels (Approving Official) to the Administrative Secretary.
3. TERMINATION OF BANK CARD
When a Cardholder leaves the city or will no longer be authorized to use the Cal-Card, it is the Supervisor's responsibility to notify the Administrative Secretary to terminate the Cardholder's card. At this same time, the Supervisor will also obtain the Cardholder’s Cal-Card and return it to the Administrative Secretary.
1. RECONCILE BANK STATEMENTS.
a. Approving Official will be sent the following by the Administrative Secretary:
(1) Group Billing Summary - This is a composite statement of all the individual Cardholders the Approving Official is responsible for who have used their credit cards in the last billing period. The Group Billing Summary should be used as the lead sheet for the Cardholders’ CalCard Purchasing Logs and bank statements when they are submitted to Finance.
b. Cardholder's Bank Statement, receipts/invoices, and Group Billing Summary - The Approving Official will be responsible for the following:
(1) Within three (3) working days after receipt of the Cardholders’ bank statements, receipts/invoices and Group Billing Summary, the Approving Official should reviewthe charges to ensure that purchases are appropriate and not on the prohibited lists and proper documentation (invoices/receipts) is included.
(2) Approve, sign, and date the Cardholder’s CalCard Purchasing Log and bank statement (a line for the approving Official's signature is provided on the statement). (3) The Cardholder is responsible for photocopying the appropriate number of copies for submittal:
· One (1) copy of the Cardholders CalCard Purchasing Log · One (1) copy of the Cardholder's bank statement
· One (1) copy of invoices/receipts
(4) Distribute copies as follows:
The original of all the Cardholders’ bank statements, the corresponding invoices/receipts and the Group Billing Summary are to be sent to the Administrative Secretary. The Administrative Secretary will forward all CalCard Purchasing Log submittals to the Approving Official or designee for approval. Upon last signature of the Approving Official, the entire Group Summary with logs will be forwarded for payment processing to Finance (Accounts Payable) for entry into the financial software. 10 Upon final completion of the process for approval, the Cardholders’ bank statements, the corresponding invoices/ receipts and the Group Billing Summary are to be scanned into the financial software accounts payable module.
b. Disputed Items. All items which are disputed will not be deleted from the Group Billing Summary or the Cardholder's bank statement. The Approving Official will be responsible for ensuring that the Cardholder has resolved any disputed items. 11 The Approving Official will assign the personnel who will enter the Expense Account on the City’s Financial Software.
1. Approving Officials or designee will have access to their own group’s statements and have the capacity to enter Expense Accounts.
2. Cardholders may enter the Expense Accounts intheir own statements. But unless they are given the authority, they only have access to their own statement. If the Approving Official would like a Cardholder to enter the Expense Account detail for other Cardholders in the group, they must be given access to the entire group.
3. The Approving Official may assign a designee in their department to review, approve and enter the Expense Accounts in their absence. If at any time after the initial assignment the Approving Official wants to reassign this job, add another person to share in this responsibility, or take the responsibility away from an individual, the Approving Official should notify the Administrative Secretary.
The instructions for charging the correct Expense Accounts into Tyler Financial Software (ERP Pro10) are as follows:
1. Log into Tyler Accounting Software with personalized credentials.
2. Select processing, then payable input/review and add
3. Enter vendor number: XXX01
4. Enter unique payable ID
5. Enter payable description
6. Select distribution and item entry
7. Under the invoiced amount, enter the total that is listed on the final page of the Group Billing Summary.
8. Select split distribution (if more than one transaction)
9. For each transaction listed on all the cardholders CalCard logs, enter the pertaining invoiced amount and expense account
10. Once all the itemized transactions for each department have been entered, the split distribution total must equal the total listed on the Group Billing Summary Bank Statement.
11. Scan all the logs and bank statements.
12 12. Verify totals, expense accounts and invoices, then save and close FINANCE DIVISION. The Finance Department, monthly, is responsible for auditing all documentation submitted under this program: receipts/invoices, bank statements, CalCard Purchasing Logs, Group Billing Summary statements and Expense Accountnumbers assigned to the expenses. Finance will also process the payment to U.S. Bank.
If there is any unresolved question during the Finance Departments audit, an email will be sent and or a phone call will be made to the cardholder for clarification. If it remains unresolved, the cardholder runs the risk of not being able to use their Cal Card until the issue is resolved.
ISSUANCE AND REPLACEMENT OF BANK CARDS
U.S. Bank is the bank card contractor who will issue the bank cards. All Cardholders will receive their bank card from the Administrative Secretary.
Upon receiving a request to issue a new Cal-Card, the Administrative Secretarywill return a memo to the new Cardholder confirming their Department Director’s request. Attached to the memo will be the Cal-Card Policy describing the procedures. Before the Administrative Secretarydistributes the Cal-Card, the new Cardholder will be required to sign an acknowledgment indicating that they have become familiar with the Cal-Card Policy and procedures and will comply with them. The Cardholder should have read and have a good understanding of the procedures before using the Cal-Card. By signing this form, the Cardholder is also acknowledging receipt of the bank card.
The memo will be retained by the Administrative Secretary and added to the employeespersonnel file by the Human Resource Manager.
EMPLOYEE CREDIT CARD LISTING. Administrative Secretary and Finance will maintainan up-todate listing of all Cardholders, Supervisors, and Approving Officials.
PROGRAM AUDIT
The Finance Department will perform an audit of the documentation submitted under this program. The audit will be performed monthly to monitor and ensure that the Cal-Card policies and procedures are being followed.
13 THE FOLLOWING USES OF THE CITY BANK CARDSTRICTLY PROHIBITEDUNLESS THERE IS AN EXCEPTION:
Alcoholic beverages, Bars and Cash Advances
Consultants, instructors, and speakers contracted by the City Medical drugs, narcotic drugs
Employee Overtime Meals -Exception: Employees that are working overtime or overnight during a scheduled or in emergency scenarios are exempt. Cardholders are allowed to buy meals for the crew that is working only under these conditions.
In-town Meals/Food Purchases – In-town meals and food purchases for employees are prohibited unless PRIOR approval has been granted from the employees’ Department Manager. If the Cardholder has a need to entertain someone who is not a city employee and there is a specific business purpose associated with the entertainment, prior Department Director approval is not necessary. The Cardholder is required to provide an itemized receipt/invoice, the names of the individuals present and the business purpose.
Membership dues – Prior approval fromthe City Administrator will need to be provided for membership dues to be paid using a CalCard. There should be a memo or email attached to the receipt/invoice explaining why it was paid and with the City Administrators email signature or wet signature.
Personal Items - computers (to include hardware and software) - All makes and models including peripheral equipment and printers (including Laser Jets), personal entertainment, personal or reimbursement transactions and rental payments.
Services and Labor – Services and Labor are strictly prohibited because of IRS regulations and 1099 reporting requirements. It is necessary to acquire service/labor through a purchase order and/or through the procurement policy guidelines. This restriction includes advertisement and printing as this type of service includes a labor element which may not be separated in the charge.
Communication - Telecommunication devices (including cell phones and two-way radios), Cell phone accessories may be purchased on the Cal-Card.
NOTE: Do not allow vendors to credit the Cal-Card for purchases that were made from a purchase order.
14 REPLACEMENT OF BANK CARD
There will be instances where the replacement of a bank card will be needed, or a new card may be requested. It will be the Approving Official's responsibility to initiate this process. Follow the instruction below which applies:
1. Removing a Cardholder
When a Cardholder leaves the department/division the Department Director will notify the Approving Official and the Administrative Secretary in writing. The memorandum or email should include the name of the Cardholder, card number and date of departure. In addition, the Department Director will need to collect the Cardholder’s Cal-Card and submit it to the Administrative Secretary. Department Directors departure will require the CalCard to be returned to the Approving Official.
2. Replacement of Worn-Out Card/Defective Cards
If a bank card needs to be replaced because it is worn out or defective, a memorandum from the Cardholder/Department Director or the Cardholder/Approving Officialrequesting a bank card replacement must be submitted along with the worn-outbank card to theAdministrative Secretary.
3. Reporting Lost/Stolen Bank Card
The Cardholder should immediately contact the Administrative Secretary, the bank contractor, the Police Department, the Cardholder's Supervisor, and the Approving Official. A replacement card will be ordered within two (2) working days.
4. Expired Cards
Bank Cards will automatically be replaced during the month they expire. Bank Cards are valid until the last day of the month in which they are dated to expire. It is not necessary for Cardholders to notify/contact the Administrative Secertary regarding expiration dates. When the new card is received, the Administrative Secertary will contact the Cardholder to come pick up and sign for the card.
15 REQUEST FOR CREDIT ON BANK CARD
The various reasons to request a charge back are described below. If you have any questions regarding the appropriate charge back reason to use, please contact the Administrative Secretary or call the number that is listed on the credit card.
Unauthorized Mail/Phone Order
This reason should be used for telephone or mail order transactions. If a sales slip is signed or imprinted with the Cardholder's card, this reason does not apply.
Duplicate Processing
This reason is used when a transaction has a multiple billing to an account. The amounts must be the same. The Cardholder should provide the transaction details of the original billing, such as dollar amounts, transaction date, etc. A copy of the monthly bank statement on which the billings occur, and a copy of the original sales slip should be forwarded with the Cardholder's Statement of Questioned Item form.
Merchandise Not Received
This reason is used when the goods were paid forby other means. The Cardholder should attempt to resolve the dispute with the vendor. The Cardholder should detail this attempt and provide the date of expected delivery of merchandise. If the goods were paid by another means, a copy of the payment (copy of front and back of a check or other payment document) along with the Cardholder’s statement should be forwarded with the Cardholder's Statement of Questioned Item form.
In the event merchandise was canceled, full details should be provided such as why the transaction was canceled and date of cancellation.
Merchandise Returned
In the event merchandise was returned and a credit has not yet been posted, the Cardholder should describe the reason for returning the merchandise and the date the item was returned. A copy of the reference number on the monthly statement, postal, UPS or other official receipt proving the merchandise was returned should be included.
Credit Not Received
This reason may be used when the Cardholder has received a credit voucher or written refund acknowledgment from the vendor, but the credit has not been postedto the Cardholder's account within 30 days from the date on the voucher or acknowledgment. The Cardholder acknowledges participation in the transaction, but the goods were returned or canceled.
The Cardholder should state the amount of credit they are expecting on the Cardholder’s 16 Statement, attach the credit voucher or acknowledgment letter from the vendor and provide a copy of the Cardholder’s statement with the original charge.
Alteration of Amount
This reason is used when the Cardholder participated in the transaction and indicates that the amount was altered without permission. The Cardholder must acknowledge the amount before alteration and a copy of the Cardholder's copy of the draft must be provided to support this reason. The amount of the credit would be the difference between the amount before alteration and after alteration. The sales draft copy should be forwarded with a copy of the Cardholder’s statement and Cardholder's Statement of Questioned Item form.
Inadequate Description or Unrecognized Charge
In the event Cardholder does not recognize the transaction description, he/she should request the vendorto supply a copy of the sales draft due to inadequate description or unrecognized charge.
This should be requested only after reviewing their supporting documentation and ensuring a merchant (vendor) description or location error has not occurred.
Copy Request
This reason should be used when the Cardholder recognizes the charge butrequires a copy of the sales draft for their records. The Cardholder should be encouraged to keep all other supporting documentation, such as catalog information, magazine ads, shipping documents, etc., as evidence of their purchase. The copy of the applicable Cardholder’s statement should be forwarded with the Cardholder's Statement of Questioned Item form.
Not as Described
This reason is used when the Cardholder claims goods were not received as described. The written document of what was to be delivered must be different from what was delivered. It is important that the sales draft be specific as to what was purchased. For example, this reason could not be used when the Cardholder was expecting a Sony tape recorder, model XX210, and when he or she got back to the office, they determined that a Sony model B640 was in the box and the sales draft simply said, "tape recorder."
In a telephone order situation, the verbal description is considered the "document characterization." The Cardholder must explain in a letter how the verbal description was different from what was received.
An attempt must be made to return the goods and must be stated in the Cardholder complaint. 17 Cardholder Dispute
This reason should be considered only after reviewing other specific charge back reasons. This reason requires that the Cardholder attempt a resolution with the merchant. A complete description of the problem and the attempted resolution should be provided on the Cardholder's Statement of Questioned Item form. Additionally, a copy of the sales slip and copy of the Cardholder's Statement of account on which the transaction appears should be forwarded with the Cardholder's Statement of Questioned Item form.
Other Dispute Reason
In the event the reasons discussed here and identified on the Cardholder's Statement of Questioned Item form do not fit the Cardholder's dispute circumstances, the Cardholder should submit a Cardholder's Statement of Questioned Item form with the transaction detail, a copy of the applicable Cardholder’s statement, and a detailed letter of the circumstances of the dispute.
Reference should be made to any contact with the vendor, names, telephone numbers, etc., that would be helpful.
For all disputes submitted for consideration, a Cardholder signature is required.
RESOLUTION NO. 2024-R-005
A RESOLUTION OF THE CITY OF GRIDLEY IMPLEMENTING AN CAL-CARD POLICY WHEREAS, it is essen�al for the City of Gridley to maintain secure and efficient financial management prac�ces; and; and
WHEREAS, the u�liza�on of Cal-Card can streamline procurement processes, enhance accountability, and expedite transac�on; and
WHEREAS, the implementa�on of a comprehensive Cal-Card Policy will provide clear guidelines and procedures for the issuance, usage, monitoring, and reconcilia�on of Cal-Cards within the City of Gridley;
NOW, THEREFORE, BE IT RESOLVED the City of Gridley shall adopt a Cal-Card Policy to govern the issuance and usage of Cal-Cards for authorized employees and departments, the policy shall outline eligibility criteria to hold a Cal-Card, and implement strict guidelines regarding permissible use and restricted uses or a Cal-Card, this resolu�on shall take effect immediately upon approval by the Gridley City Council.
I HEREBY CERTIFY that the foregoing resolu�on was duly introduced and passed at a regular mee�ng of the City Council of the City of Gridley held on the 4th of March, 2024, by the following vote:
AYES: COUNCILMEMBERS __________________________________ NOES: COUNCILMEMBERS __________________________________ ABSENT: COUNCILMEMBERS __________________________________ ABSTAIN: COUNCILMEMBERS __________________________________ ATTEST : APPROVE :
_________________________ __________________________
Elisa Arteaga, City Administrator Michael W. Farr, Mayor City Council Agenda Item #3
Staff Report
Date: March 4, 2024
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: Escheatment Policy
Recommendation
Staff respectfully request the City Council to approve the Escheatment Policy.
Background
This report provides an overview of the proposed Escheatment Policy for the City of Gridley.
Escheatment refers to the process by which unclaimed property is transferred to the state when the rightful owner cannot be located. Establishing a clear Escheatment Policy is crucial for compliance with state regulations and ensuring proper handling of unclaimed property within the organization.
Escheatment laws vary by state and typically require organizations to report and remit unclaimed property, such as uncashed checks, to the state's unclaimed property office after a specified period. Failure to comply with escheatment requirements can result in penalties and fines.
Key Components of the Policy include:
- Identification and Tracking of Unclaimed Funds
- Accounting for unclaimed funds
- Communication and Notification
- Ensure compliance with state escheatment laws and regulations - Protect the rights of owners and facilitate the return of unclaimed funds whenever possible
Financial Impact
Financial Impact will be depending on the amount of unclaimed funds. These funds are currently a liability to the City. Adopting an escheatment policy will allow the city to potentially decrease its liability.
Attachments
Escheatment Policy
Resolution 2024-R-006
X Regular
Special
Closed
Emergency
City of Gridley
Unclaimed Funds
Escheatment Policy
OVERVIEW
THE PURPOSE OF THIS POLICY IS TO ENSURE ADEQUATE CONTROL OVER CASH BALANCES. THE PURPOSE OF THIS POLICY IS TO
DEFINE THE PROCEDURES GOVERNING UNCLAIMED FUNDS IN
ACCORDANCE WITH GOVERNMENT CODE §50050-50057.
POLICY
IT IS THE POLICY OF THE CITY OF GRIDLEY THAT CASH BALANCES
BE PROPERLY ACCOUNTED FOR AND RECORDED IN THE GENERAL
LEDGER. PURSUANT TO THE GOVERNMENT CODE §50050-50057 IT
IS THE RESPONSIBILITY OF THE FINANCE DEPARTMENT TO ENSURE
UNCLAIMED FUNDS ARE IDENTIFIED, TRACKED, AND ACCOUNTED
FOR IN THE GENERAL LEDGER PROPERLY.
PROCEDURES
Unclaimed Funds Defined
Unclaimed funds are defined as funds disbursed but not claimed by legal owner(s) for a period of three (3) years or greater. The procedures herein identify the funds to be transferred to the General Fund if they remain unclaimed. Unclaimed funds do not include disbursements less than fifteen dollars, or where the depositor’s name is unknown, and unclaimed for one year.
Identifying Unclaimed Funds
Through the bank reconciliation procedure, the accountant performing the monthly bank reconciliation identifies checks outstanding for a period no less than one (1) year from the date of the original payment.
Tracking Unclaimed Funds
The accountant performing the bank reconciliation maintains a worksheet of unclaimed funds (Exhibit A). The worksheet is organized by checks less than $15 and outstanding for (1) year or greater and checks greater than $15 and outstanding for more than (1) year. The accounts payable technician updates the unclaimed funds worksheet to include check information needed for escheatment (i.e. payee name, address, vendor ID number, etc).
Accounting for Unclaimed Funds
The accounts payable technician then voids the check(s) in the accounting system, and forwards supporting documentation for the voided check(s) to accounting.
The accountant then prepares a journal entry to reclassify the accounts payable liability generated by the void check process to escheat liability and submits for review and approval (Exhibit B).
Procedures for notifying the bank to apply stop payments on void checks should be followed according to already established procedures regarding void checks.
If funds less than fifteen dollars ($15) or where the depositor’s name is unknown are unclaimed, funds are deemed the property of the City and transferred to the General Fund miscellaneous revenue, unless otherwise restricted. If this is the case, a journal entry to reclassify the escheat liability to miscellaneous revenue will be prepared and submitted for review and approval at this time. No publication notice is required.
The accountant then updates the unclaimed funds schedule with the date and journal entry ID for future reference.
The accountant also reviews the schedule of unclaimed funds for checks unclaimed for three (3) years or greater. Once identified, the accountant then prepares and submits for review and approval a notice to be published in the local newspaper once a week for two (2) consecutive weeks.
The notice shall state that if the funds remain unclaimed for a period of no less than Forty-five (45) days and no more than Sixty (60) days the monies will be deemed the property of the City.
The accountant then updates the schedule of unclaimed funds with the date of the publication.
At the same time, the city will notify the payee via regular mail (Exhibit C).
If funds are claimed a new check is written and coded to release the escheat liability account.
If funds are not claimed after Sixty (60) days the accountant prepares a journal entry to reclassify the escheat liability to general fund miscellaneous revenue, unless otherwise restricted.
Exhibit A
Unclaimed Funds Worksheet
Exhibit B
Escheatment Journal Entry Template
Exhibit C
Escheatment Memo Notice Template
<2/29/2024>
<Name>
<Address 1>
<Address 2>
<CSZ>
Dear <Name>,
Our records indicate that the following check issued to you has not cleared our bank.
Check number: <Check number>
Amount: <Amount>
Date issued: <Date issued>
Please reply to this correspondence below and return to us, either via email or mail.
Yes, this payment is still due, I hereby request a replacement check be sent to:
_________________________________________________________________ _________________________________________________________________ No, this payment has been satisfied, no payment is due.
Other. Please explain:
_________________________________________________________________ _________________________________________________________________ If we do not hear from you by <60 days date> this payment will be deemed the property of the City.
If you have any questions, please feel free to contact me.
Sincerely,
<Name>,
<Title>
<Phone>
<Email>
RESOLUTION NO. 2024-R-006
A RESOLUTION OF THE CITY OF GRIDLEY IMPLEMENTING AN ESCHEATMENT POLICY WHEREAS, prudent financial management necessitates the establishment of policies and procedures to address unclaimed property; and
WHEREAS, escheatment refers to the process of transferring unclaimed property to the appropriate governmental authority in accordance with applicable laws and regula�ons; and WHEREAS, implemen�ng a comprehensive Escheatment Policy will ensure compliance with legal requirements, mi�gate financial risks, and safeguard the interest of the City of Gridley;
NOW, THEREFORE, BE IT RESOLVED BY The City of Gridley shall adopt an Escheatment Policy to govern the iden�fica�on or unclaimed property in accordance with relevant laws and regula�ons, set guidelines for the use of Cal-Cards, the resolu�on shall take effect immediately upon approval by the Gridley City Council.
I HEREBY CERTIFY that the foregoing resolu�on was duly introduced and passed at a regular mee�ng of the City Council of the City of Gridley held on the 4th of March, 2024, by the following vote:
AYES: COUNCILMEMBERS __________________________________ NOES: COUNCILMEMBERS __________________________________ ABSENT: COUNCILMEMBERS __________________________________ ABSTAIN: COUNCILMEMBERS __________________________________ ATTEST : APPROVE :
_________________________ __________________________
Elisa Arteaga, City Administrator Michael W. Farr, Mayor
City Council Agenda Item #4
Staff Report
Date: March 4, 2024
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Resolution No. 2024-R-007 : Conduct a Public Hearing and Consider Solid Waste Rate Adjustments and Solid Waste Contract Extension
Abstract
On November 20th, 2023, the City Council received an informational report for the Solid Waste Contract set to expire December 31st, 2023. At the meeting staff reported because the contract is set to expire and providing solid waste services to residents is vital, they would meet with WM Representatives to discuss the options for extension and details of current service practices, SB1383 regulation requirements, transfer station, proposed rate increases, multi-annual RFP process and terms of extension for the extension of the contract.
During the series of meetings between staff and Waste Management discussions were held relating to rate information which confirmed the existing rates under the current contract are set at lower rates than surrounding jurisdictions which have recently approved solid waste contracts. The city staff and City Attorney reviewed the language in the extension proposal submitted by Waste Management which incorporated recommended changes. The information was presented to the City Council in the December 18th, 2023, council meeting.
At this meeting Waste Management Representatives presented to City Council information contained in the new contract and noted it was for consideration of approval for a five-year extension set to expire on December 31st, 2028. At this meeting the Amended Solid Waste Contract Extension was accepted, and Staff further added well before the contract expiring, an RFP would be initiated mid contract to allow for adequate to transition to a new provider should the contract be awarded to a new service provider. Staff also informed the Council the contract contained a new rate schedule that was subject to Prop 218 regulations. Therefore, although the contract was tentatively approved, the new rates must be set by public hearing which would provide a 45-day notice period to allow for tabulation of all protests received, and if a majority of the protest is not received, the new rate increase will become effective March 5th, 2024, as set forth in the attached solid waste contract rate structure.
Recommendation
1. Conduct a public hearing to accept comments on the proposed solid waste rates at the conclusion of the hearing close the 45-day notice period; and
2. Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly.
3. Direct the City Clerk to tabulate the results of the protests received from property owners and customers and announce the findings; and
4. Confirm approval of Amended and Restated Agreement between the City of Gridley and USA Waste of California, Inc., for Collection of Solid Waste, Green Waste, and Recyclables, and transfer station operation services Franchise Agreement; and
5. Adopt Resolution No. # 2024-R-007, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRIDLEY, CALIFORNIA, ESTABLISHING SOLID WASTE RATES AND CHARGES EFFECTIVE MARCH 5, 2024”, by reading of title only.
x Regular
Special
Closed
Emergency
Fiscal Impact
There is no negative fiscal impact to the current fiscal year budget as the city receives franchise revenue.
Compliance with City Council Strategic Plan or Budget Goals The City Council and City staff are committed to providing the best possible financial practices and the highest possible transparency regarding all financial transactions.
Attachments
1. Amended and Restated Agreement between the City of Gridley and USA Waste of California, Inc., for Collection of Solid Waste, Green Waste, and Recyclables, and transfer station operation services Franchise Agreement
2. Resolution No. 2024-R-007
ATTACHMENT 2
RESOLUTION NO. 2024-R-007
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRIDLEY,
CALIFORNIA, ESTABLISHING SOLID WASTE RATES AND CHARGES
EFFECTIVE MARCH 5, 2024
WHEREAS, the City of Gridley has contracted and entered into agreement with USA Waste of California, Inc. (hereinafter “Waste Management”) for collection of solid waste, green waste, recyclables and transfer station operation services Franchise Agreement; and WHEREAS, on December 18th, 2023, Waste Management provided a report and presented the agreement for consideration for contract extension; and WHEREAS, the solid waste service contract is was set to expire December 31st, 2023 and continuation of services for city residents is vital means in order provide a method of disposal of waste and an extension of the current contract would provide adequate time for the city to prepare a future request for solid waste service through an Request for Service process (RFP); and WHEREAS, recommendations during a City Council meeting allowed for approval of the contract to extend services but a request to set a public hearing, authorize the mailing of notices to property owners and customers informing them of the proposed adjustments to solid waste charges, and commence the 45-day notice period in accordance with Proposition 218; and WHEREAS, following a public hearing held on March 4th, 2024, in conformity with Proposition 218, the City Council determined that no majority protest against the proposed solid waste contract and rate structure and changes existed.
NOW, THEREFORE, the City Council of the City of Gridley resolves as follows:
Section 1: The City Council does hereby adopt the solid waste rates and changes set forth in Exhibit “2,” which is attached hereto and incorporated herein by reference effective March 5th , 2024, with phased-in increase thereto effective January 1, 2025 as identified in Exhibit “2.” The City Council directs staff to include the newly established solid waste rates and charges and phased-in increases thereto, as adopted by this resolution, in the City’s Master Fee Schedule, or other successor document thereto as amended from time to time.
Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution.
Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 4: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.
Exhibit A – Amended and Restated Agreement Between the City of Gridley and USA Waste of California, Inc., for Collection of Solid Waste, Green Waste, Recyclables, and Transfer Station Operation Services Franchise Agreement Effective January 1st, 2024 through December 31st, 2028 PASSED, ADOPTED and APPROVED this 4th day of March, 2024.
AYES: AGENCY MEMBERS
NOES: AGENCY MEMBERS
ABSTAIN: AGENCY MEMBERS
ABSENT: AGENCY MEMBERS
ATTEST: APPROVE:
___________________________ _______________________________ Elisa Arteaga, City Clerk Michael W. Farr, Mayor
AMENDED AND RESTATED AGREEMENT
BETWEEN THE CITY OF GRIDLEY AND
USA WASTE OF CALIFORNIA, INC.,
FOR COLLECTION OF SOLID WASTE, GREEN WASTE, RECYCLABLES, AND
TRANSFER STATION OPERATION SERVICES
FRANCHISE AGREEMENT
THIS AMENDED AND RESTATED AGREEMENT (this “Agreement”) is made and entered into effective as of __________________, 2023, between the City of Gridley (the “City”), and USA Waste of California Inc. (the “Company”). Unless otherwise specified in this Agreement, any action authorized, or required to be taken by the City may be taken by the City Council (the “Council”) or by the City Administrator.
In consideration of the mutual covenants in this Agreement, as amended and restated, and intending to be legally bound, the parties agree as follows:
1. DEFINITIONS. For purposes of this Agreement the following words or phrases shall have the following meanings.
1.1. Act. Act means the California Integrated Waste Management Act of 1989, California Public Resources Code (“PRC”) sections 40000 et seq., as amended, supplemented, superseded, and replaced by the California legislature from time to time. All state code references are to the PRC unless otherwise noted. In the event of any inconsistency between the definitions set forth below and those in the PRC or the California Code of Regulations (“CCR”) related to solid waste, the PRC and/or the CCR shall prevail.
1.2. Applicable Law. Applicable Law means all laws, ordinances, municipal code, resolutions, regulations, rules, orders, judgments, decrees, permits, approvals, or other requirement of any governmental agency having jurisdiction over the collection, handling, processing, and disposition of Franchise Materials that are in force on the Effective Date and as they may be enacted, issued or amended during the term of this Agreement.
1.3. Bins. Bins shall mean those containers provided by the Company for Commercial Customers and Multiple-Family Dwellings. The Bins are of two types: (i) Bins which are picked up by trucks designed for Solid Waste, C&D and Recycling by means of front-loading apparatus; and (ii) roll-off Bins (also known as a Debris Box or Drop Box) (which are usually much larger in size).
1.4. Bulky Waste. Bulky Waste means large household items that do not properly fit in the Customer’s Cart, or bundled or bagged Solid Waste, that do not exceed four feet by four feet by two feet (4’x4’x2’) and weigh no more than sixty (60) pounds, which are attributed to the normal activities of a Single-Family Premises. Such materials may include furniture, area and floor rugs properly prepared (cut and bundled), mattresses (must be wrapped in plastic), appliances, and tires without rims. All liquids must be
drained; no item may contain Freon. Bulky Waste excludes any Excluded Waste, as well as automotive parts, tree stumps, oil and gas, propane tanks, C&D Debris, and batteries.
1.5. City Representative. City Representative means the City Administrator, or designee.
1.6. Cart. Cart means an industry standard receptacle for disposal of Franchise Materials, in a range of sizes including approximately 35, 64, or 96 gallons. A Cart will have wheels, a handle for ease of movement and a fitted, attached lid, and is designed to be dumped mechanically into a Solid Waste or Recyclables collection vehicle.
1.7. Collection or Collection Service. Collection or Collection Service shall mean all or any part of the activities involved in the Collection of Franchise Materials specified in this Agreement and its transportation to and disposal at a Disposal Site or Recycling facility.
1.8. Commercial Customer. Commercial Customer is a Customer that receives Commercial Service including, but not limited to, those Multiple-Family Dwellings and Mobile Home Park Customers that use Bin service.
1.9. Commercial Premises. Commercial Premises shall mean all industrial, manufacturing, warehouse, wholesale or retail stores, service establishments, professional offices, other business establishments, and government facilities and schools and construction sites, and Multiple-Family Dwellings.
1.10. Commercial Recycling. Commercial Recycling means the collection, processing and marketing of those Recyclable Materials that are collected from Commercial Customers under this Franchise on an exclusive basis.
1.11. Commercial Service. Commercial Service means Bin or Cart service provided under this Franchise to Commercial Premises and Bin service provided to MultipleFamily Dwellings and Mobile Home Parks.
1.12. Compactor. Compactor means a compacting unit that loads a detachable or nondetachable Bin or Debris Box. The detachable or non-detachable Bin or Debris Box serves as a receptacle of Solid Waste, and has a capacity of one (1) cubic yard or larger.
The Bin or Debris Box is picked up by a collection vehicle for emptying at a separate location.
1.13. Company Service Fee. Company Service Fee means the compensation provided to the Company for services performed pursuant to this Agreement.
1.14. Construction and Demolition Debris or C&D. Construction and Demolition Debris or C&D has the meaning provided in Title 14, Division 7, Section 17388(c) of the CCR or successor laws and regulations as may be amended from time to time, but not including any Excluded Waste.
1.15. CPI Adjustment. CPI Adjustment means the annual Service Rates adjustment as specified in Section 6.2.
1.16. Curb or Curbside. Curb or Curbside shall mean that part of the homeowner’s property, within five feet of the Public Street or alley without blocking sidewalks, driveways or on-street parking. If extraordinary circumstances preclude such a location, Curbside shall be considered a placement suitable to the resident, convenient to the Company’s equipment, and mutually agreed to by the homeowner and the Company.
1.17. Customer. Customer means an individual or entity that receives Franchise Services provided by the Company. Customer shall also mean the person, organization or corporation receiving Disposal service for Franchise Materials to which billing statements are sent. Customer also means those Generators of Recyclable Materials in the Service Area to whom the Company provides and the Customer pays for Collection Service under this Agreement.
1.18. Debris Box/Temporary Bins. Debris Box means a receptacle for Solid Waste and C&D having a capacity of twenty (20) cubic yards or greater that is picked up in its entirety by a dedicated truck for emptying at a separate location. Also known as a rolloff box or drop box. Temporary Bins or “temp bins” will be containers with a capacity greater than a 96 gallon cart and less than the twenty cubic yard debris box.
1.19. Discretionary Adjustment. Discretionary Adjustment is defined in Section 6.5.
1.20. Disposal. Disposal has the meaning provided in PRC Section 40120.1 or successor laws and regulations as may be amended from time to time.
1.21. Disposal Fees. Disposal Fees shall mean the charges imposed by the Disposal Site.
1.22. Disposal Site. Disposal Site has the meaning provided in PRC Section 40122 or successor laws and regulations as may be amended from time to time.
1.23. Effective Date. Effective Date means January 1, 2024, the date that Franchise Services shall commence under this Agreement, as amended.
1.24. Electronic Waste or E-Waste. Electronic Waste or E-Waste means waste containing or consisting of electronic devices and components, such as computers, monitors, terminals, computer cards and components, computer peripheral devices, main frame computers, keyboards, mice, printers and scanners, mini-systems, power supply units, servers, connectors/cables, storage discs, consumer electronics, printed circuit boards, televisions, chips and components, cellular and other phones, telecommunications equipment, and fax machines and copiers, but not including Excluded Waste.
1.25. Excluded Waste. Excluded Waste means Hazardous Waste, Medical and Infectious Waste, volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material, waste that Company reasonably believes would, as a result of or upon disposal, be a violation of Applicable Law, including land use restrictions or conditions, waste that cannot be disposed of in Class III landfills, waste that in Company’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Company or City to potential liability, and Special Waste; not including de minimis volumes or concentrations of waste of a type and amount normally found in residential solid waste after implementation of programs for the safe collection, recycling, treatment and disposal of batteries and paint in compliance with PRC 41500 and 41802.
1.26. Franchise. Franchise means the rights granted to the Company under the terms and conditions of this Agreement.
1.27. Franchise Fee. Franchise Fee means an amount paid to the City by Company for the right to provide Collection Services, as further agreed in Section 3.1 of this Agreement.
1.28. Franchise Materials. Franchise Materials means all Solid Waste, Recyclable Materials, Construction & Demolition Debris and Green Waste generated in the Service Area and included within the Franchise. At the Company’s option, “Franchise Materials” shall also include any other materials that can now or in the future be disposed of in Class III landfills. It is the intention of the Parties to maximize the scope of the Company’s exclusive franchise within the Service Area by including within the definition of “Franchise Materials” those materials that can be safely Collected, Transported, Disposed of or Recycled using commercially reasonable methods.
1.29. Franchise Services. Franchise Services means all of the duties and obligations of the Company hereunder as stated in this Agreement. Company shall notify the City should there be more than a 24-hour delay in the service schedules included in this Agreement or as amended to this Agreement.
1.30. Fuel Cost Adjustment. Fuel Cost Adjustment is defined in Section 6.3.
1.31. Generator. Generator has the meaning used in the laws governing Hazardous Waste, but applies in this Agreement not only to Hazardous Waste but also to all other materials.
1.32. Green Waste. Green Waste means all tree and plant trimmings, grass cuttings, dead plants, weeds, leaves, branches, and similar materials that fit into a Green Waste Cart, but not including Excluded Waste or items with a diameter greater than 10 inches.
1.33. Green Waste Processing Facility. Green Waste Processing Facility means the facility(ies) used by the Company for handling, processing, and preparing collected Green Waste for marketing.
1.34. Gross Revenues. Gross Revenues has the meaning provided in Section 3.1
1.35. Hazardous Waste. Hazardous Waste has the meaning provided in PRC Section 40141 or successor laws and regulations as may be amended from time to time.
1.36. Household Hazardous Waste (or HHW). Household Hazardous Waste shall have the meaning set forth in California Health and Safety Code Section 25218 and in Title 14, CCR, Section 18502 or successor laws and regulations as may be amended from time to time, but not including any Excluded Waste.
1.37. Inaccessible Area. Inaccessible Area shall mean any road, alley or property that does not allow safe access, turn-around, or clearance for standard collection vehicles.
1.38. Medical and Infectious Waste. Medical and Infectious Waste means biomedical waste generated at residences in excess of legal limits or at hospitals, public or private medical clinics, dental offices, research laboratories, pharmaceutical industries, blood banks, mortuaries, veterinary facilities and other similar establishments.
1.39. Mobile Home Parks. Mobile Home Parks means a site at which mobile home spaces are rented for residential use. Mobile Home Parks, at the Owner’s request, may be provided with Residential Service using Carts or Commercial Service using Bins.
1.40. Multiple-Family Dwellings. Multiple-Family Dwellings means any building or structure, or portion thereof used for residential purposes and having four (4) or more distinct living units. Multiple-Family Dwellings, at the Owner’s request, may be provided with Residential Service using Carts or Commercial Service using Bins.
1.41. Owner. Owner shall mean the person, organization or corporation holding legal title to the real property constituting the Residential Premises to which Collection Service for Franchise Materials is provided. For the purposes of provisions in this Agreement pertaining to the sending of notices, billings or other communications by Company to an Owner, Company may regard as Owner the person, organization, corporation or other entity shown in the records of the assessor of Nevada County or as may be indicated by documents recorded in the Nevada County Clerk-Recorder’s Office.
1.42. Parties. Parties mean the City and the Company.
1.43. PRC. PRC has the meaning provided in Section 1.1.
1.44. Private Drive(s). Private Drive(s) shall mean a privately owned or maintained way.
1.45. Private Road(s). Private Road(s) shall mean a privately owned or maintained way that allows for access by a small wheel base service truck and which serves four or more Residences.
1.46. Processing or Process. Processing or Process shall mean treatment, sorting, or other activities intended to improve the market value of a Recyclable.
1.47. Public Street(s). Public Street(s) shall mean a public way used for public travel.
1.48. Recyclable Construction and Demolition Debris or Recyclable C&D. “Recyclable Construction and Demolition Debris” or “Recyclable C&D” means Construction and Demolition Debris or C&D that is disposed of in a Cart or Debris Box or other receptacle that contains no more than 5% non-Recyclables.
1.49. Recycle, Recycling. Recycle, Recycling has the meaning provided in PRC Section 40180 or successor laws and regulations as may be amended from time to time.
1.50. Recycling Carts. Recycling Carts shall mean a Recycling Cart or other wheeled Cart owned by the Company, suitable for on-site collection, storage, and set-out of Recyclables.
1.51. Recyclable Materials, Recyclables. Recyclable Materials or Recyclables means that portion of Solid Waste which is material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace, but not including Excluded Waste. Recyclable means that portion of Franchise Materials which may be separated on a commercially reasonable basis from other Franchise Materials and returned 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. As of the Effective Date, the Recyclable Materials are as provided in Exhibit 1.
1.52. Recyclables Processing Facility. Recyclables Processing Facility means the facility(ies) used by the Company for handling, processing, and preparing collected Recyclable Materials for marketing.
1.53. Recycling Program. Recycling Program shall mean an effort by the City to offer convenient and affordable recycling opportunities to all residents of City.
1.54. Recycling Revenues. Recycling Revenues means all revenues, net of transportation or processing costs, resulting from the sale of Recyclable Materials, Construction and Demolition Debris and Green Waste collected through provision of Franchise Services.
1.55. Residential Customer. Residential Customer is a Customer that receives Residential Service including those Multiple-Family Dwellings and Mobile Home Park Customers that use Solid Waste Cart Service.
1.56. Residential Recycling. Residential Recycling means the collection, processing and marketing of those Recyclable Materials that are collected from Residential Customers under this Franchise on an exclusive basis.
1.57. Residential Service. Residential Service means Collection Service for Franchise Materials normally provided under this Franchise to all Single-Family Residences and those Multiple-Family Dwellings and Mobile Home Parks that receive Solid Waste Cart Service.
1.58. SB 1383 Regulations. SB 1383 Regulations means to the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR., as they may be amended.
1.59. Self Haul. Self Haul means the transport of Franchise Materials from a residence or Commercial Premises, where the materials being generated are taken directly to an authorized landfill or transfer station. The transport must be accomplished by the resident, Owner or commercial/business/industrial entity that generates the Franchise Materials and may not be transported by a company, agent or other third-party hired for such use except as provided in Section 2.3 of this Agreement.
1.60. Service Area. Service Area shall mean the jurisdictional boundary of the City including all areas hereafter annexed or otherwise added to the territorial limits of the City.
1.61. Service Rates. Service Rates means the Company fees for providing the Franchise Services, as initially set forth in Exhibit 2. The Service Rates include the Franchise Fee.
1.62. Signature Date. Signature Date means the date of execution of this Agreement by both Parties.
1.63. Single-Family Residence(s). Single-Family Residence(s) shall mean all one unit houses and mobile homes, any building or structure, or portion thereof, that is used for residential housing purposes and has two (2) or fewer distinct living units.
1.64. Solid Waste. Solid Waste shall mean and include all Solid Waste as defined in PRC Section 40191 and regulations or successor laws and regulations as may be amended from time to time generated within the Service Area that can be disposed of in Class III landfills. Excluded from the definition of Solid Waste are Excluded Waste, Bulky Wastes, Special Wastes, Recyclable Materials, Green Waste, and Construction and Demolition Debris. Notwithstanding any provision to the contrary, “Solid Waste” may include de minimis volumes or concentrations of waste of a type and amount normally found in residential solid waste after implementation of programs for the safe collection, recycling, treatment and disposal of batteries and paint in compliance with PRC Sections 41500 and 41802.
1.65. Special Services. Special Services are specific service-related activities, including without limitation lock, gate, and long walk services, or other services for which no Service Rate is established by the City, that is provided by the Company to Customers for which the Company may charge an additional fee.
1.66. Special Waste. Special Wastes include flammable waste, waste transported in a bulk tanker, liquid waste, sewage sludge, pollution control process waste, residue and debris from the cleanup of a hazardous material spill or release of chemical substances, commercial products or any other Special Wastes; contaminated soil, waste, residue, debris and articles from the cleanup of a site or facility formerly used for the generation, storage, treatment, Recycling, reclamation, or Disposal of any other Special Wastes; dead animals, manure, waste water, explosive substances, and radioactive substances.
1.67. State. State means the State of California.
1.68. Ton. Ton means a “short ton” of 2,000 pounds.
1.69. Transfer Station Operations/Transfer Station Operation Services. Transfer Station Operations/Transfer Station Operation Services means all of the services associated with the operation of the Ord Ranch Road Transfer Station, as provided in this Agreement.
1.70. Transport. Transport means the hauling of Franchise Materials to a Disposal Site.
1.71. Uncontrollable Circumstances. Uncontrollable Circumstances are any acts of God, such as landslides, lightning, fires, storms, floods, pestilence, freezing, and earthquakes; explosions, sabotage, civil disturbances, acts of a public enemy, wars, blockades, riots, labor unrest, eminent domain, condemnation or other taking, or other events of a similar nature, not caused or maintained by the City or Company, which event is not reasonably within the control of the party claiming the excuse from its obligations due to such event, to the extent such event has a material adverse effect on the ability or costs of a Party to perform its obligations thereunder. Events which could have been prevented by reasonable precautions, including compliance with agreements and applicable laws, shall not be considered an Uncontrollable Circumstance. Labor unrest, including but not limited to strike, work stoppage or slowdown, sickout, picketing, or other concerted job action lawfully conducted by the Company’s employees or lawfully directed at the Company, or a subsidiary, are not considered Uncontrollable Circumstances, but shall excuse performance to the extent provided in Section 9.5.
2. GRANT OF EXCLUSIVE AGREEMENT.
2.1. SCOPE OF EXCLUSIVE FRANCHISE.
2.1.1. City hereby grants to Company, for the term hereinafter set forth, the exclusive right and privilege to collect and transport Franchise Materials to any legally authorized Disposal Site, Green Waste Processing Facility, or Recyclables Processing Facility, unless otherwise exempt from Collection pursuant to the terms and conditions of Section 2.3 of this Agreement. Participation in the Company’s Solid Waste, Recycling and Green Waste programs shall be mandatory for Residential and Commercial Customers.
2.1.2. The Company shall have the exclusive right and responsibility for the operation of the Ord Ranch Road Transfer Station, in accordance with the provisions of this Agreement, for the term of this Agreement and any extensions thereof.
2.1.3. The Company shall dispose of all Solid Waste collected under this Agreement at the designated Disposal Site. The Disposal Site the Company has designated shall be the Neal Road Landfill owned by the County of Butte. The Company reserves the right to direct the Company to dispose of Solid Waste at a particular licensed Disposal Site (which must be a Class III disposal site) suitable for municipal waste.
2.2. COMPANY RESPONSIBILITY. The Company hereby accepts and assumes responsibility to perform and fulfill all the terms, covenants, conditions, and obligations required under this Agreement. Company agrees to perform all of its obligations under this Agreement for the term hereof. Company shall furnish all the labor and equipment necessary for the Collection, Processing, Transport and Disposal of all Franchise Materials, subject to the terms, conditions and provisions of this Agreement.
2.3. EXCEPTIONS TO FRANCHISE. The following services and materials are expressly excluded from this Agreement. However, the granting of this Franchise shall not preclude an Owner or Customer from contracting for the categories of services and materials described below to be delivered to, collected and/or transported by the Company or others, provided that nothing in this Franchise is intended to or shall be construed to excuse any person from any authorization from the City which is otherwise required by law.
2.3.1. Compactors for Recyclables. Rental, lease or sale of Compactors, provided that the Company shall have the exclusive right to provide hauling services for Compactors unless used exclusively for the collection of Recyclable Materials, including Recyclable C&D, in which at least ninety-five percent (95%) of each load is actually Recycled and for which the Generator receives payment.
2.3.2. Self-Hauling. Self-Haul materials, which are delivered by a person or entity directly to a disposal facility. Persons or entities cannot subcontract any portion of the Self-Haul to any entity other than the Company. This provision does not allow persons or entities to purchase, borrow or rent Bins or Carts or other containers and have them collected by a third-party.
2.3.3. Incidental Hauling. Materials which would otherwise constitute Franchise Materials that are removed from a premise by a company as an incidental part of a gardening, landscaping, tree trimming, cleaning, maintenance, construction, handyman, tractor or similar service offered by that company rather than as a waste hauling service. This provision does not allow the hauling of materials by any business hired solely for the purposes of hauling and/or removal of debris.
2.3.4. Construction and Demolition Debris. Construction and Demolition Debris materials removed from a work or construction/demolition site by a company or business generating the C&D and Self Hauled or incidentally hauled as provided in Sections 2.3.2 and 2.3.3.
2.3.5. Recyclable C&D. Recyclable C&D, in which at least ninety-five percent (95%) of each load is actually Recycled and for which the Generator receives payment.
2.3.6. Residential Recyclables. Recyclable Materials donated or sold by Residential Customers from Single-Family Residences or Multiple-Family Dwellings, or from Mobile Home Parks, to any party of their choice, in which at least ninety-five percent (95%) of each load is actually Recycled and that the Generator donated or for which the Generator receives payment.
2.3.7. Commercial Recyclables. Commercial Recyclable Materials in which at least ninety-five percent (95%) of each load is actually Recycled and for which the Generator receives payment.
2.3.8. Governmental Entities. The Company’s exclusive Franchise in this Agreement shall not include governmental entities if and to the extent the City has no legal power to include them in the exclusive Franchise.
2.4. TERM OF AGREEMENT. The initial term of this Agreement shall commence January 1, 2024 and end at the close of business on December 31, 2028. Thereafter, the parties may agree in writing to extend the term for up to two five-year periods.
2.5. TITLE TO FRANCHISE MATERIALS. It is expressly understood that all Franchise Materials collected under this Franchise shall remain the property of the resident or commercial Owner until such time as they are collected for Disposal, Transport or Recycling. That ownership shall transfer to Company once the Franchise Materials are collected. The Company is hereby granted the right to retain, dispose of, and otherwise use such Franchise Materials, or any part thereof, in any fashion or for any lawful purpose desired by the Company, and to retain any benefit or profit resulting therefrom.
2.6. ANTI-SCAVENGING ENFORCEMENT; UNAUTHORIZED COMPACTION.
The City will cooperate with the Company in the Company’s enforcement of the exclusive rights granted to the Company in this Agreement and anti-scavenging laws, including without limitation the institution of civil actions against a person or entity alleged to have violated the exclusive rights created in Section 2.1 of this Agreement or
the anti-scavenging provisions of PRC Section 41950 (which provides for treble damages, as measured by the value of the material removed, or a civil penalty of not more than $2,000.00, whichever is greater, for each unauthorized removal, in accordance with PRC Section 41953). If City is required to take administrative, law enforcement, or other legal action against any person who infringes on the Company’s exclusive rights, the Company shall reimburse the City for all reasonable costs, staff time and legal costs related to any such action. Nothing herein precludes the Company from taking such legal action against third parties as it deems appropriate to protect the exclusive nature of its franchise.
Customers shall not permit Franchise Materials to be compacted in Company-provided Bins or Debris Boxes, unless such compaction is provided by Company under this Agreement.
3. FRANCHISE FEE.
3.1. CITY FRANCHISE FEE. As of the Effective Date of this Agreement, five percent (5%) of all revenues collected by the Company resulting from all revenue or compensation to the Company from Service Rates established pursuant to Article 6 for Collection of Solid Waste, including for operation of the Ord Ranch Road Transfer Station service and without subtracting the other cost of doing business, on or after the Effective Date of this Agreement within the Service Area, but excluding revenue for services provided by the Company prior to the Effective Date and from services other than Collection Services, non-exclusive or excepted services, exempt materials, or sales of recycled materials (collectively, “Gross Revenues”), shall be paid by the Company to the City as a Franchise Fee. If the Franchise Fee is increased after the date of this Agreement, the Service Rates shall be adjusted in the same manner as adjustments for increases in Disposal Fees as provided in Section 6.4. The Franchise Fee shall be computed and paid on the basis of the Company’s cash receipts from Gross Revenues after the Effective Date of this Agreement. Company shall make payments to City on a quarterly basis within 30 days following the completion of each calendar quarter. The Company shall remit the Franchise Fee as part of the quarterly remittance.
3.2. UNDER AND OVER PAYMENTS. If the Company fails to pay the entire amount of compensation due the City through error or otherwise, the difference due the City shall be paid by the Company within thirty (30) days from discovery of the error or determination of the correct amount. Any overpayment to the City through error or otherwise shall be offset against the next payment due from the Company.
3.3. FINANCIAL REVIEW. The relevant books and records of the Company shall be subject to review and inspection for the purpose of reviewing billing operations, accounts receivable and customer service, by either party, its auditors or other agents, at any reasonable time upon reasonable notice.
4. SERVICES OF COMPANY.
4.1. SB 1383. City has received a low-population waiver from CalRecycle pursuant to 14 CCR Section 18984,12(a) and, unless expressly provided in this Agreement, Company is not providing services required by SB 1383 Regulations.
4.2. SERVICES PROVIDED BY COMPANY. The Company shall, in accordance with the terms of this Agreement, Applicable Law and best industry practices, provide all labor, materials, facilities, services and equipment necessary to Collect, Process, Recycle or Dispose of (as appropriate), market and transport all set out Franchise Materials.
Services not within the scope of this Agreement will be provided upon terms and pricing determined by Company.
4.3. SOLID WASTE COLLECTION.
4.3.1. Bin Service. Company shall furnish or provide Carts to all Residences and Bins or Carts for collection use, as appropriate, to all Multiple-Family Dwellings that receive Bin service and Commercial Premises that generate Solid Waste within City. The size of the Bins and the frequency of their collection (which shall not be less than once a week) shall be determined between the Customer and Company.
Bins shall be placed on hard surface locations which are accessible to Company and consistent with applicable municipal code and development approvals. Bins supplied by Company shall, at all times, be maintained by Company in a well-kept appearance. Front load bins must be maintained with lids. Customers shall be responsible for sanitation and deodorizing of such Bins; provided, however, Company shall provide in its Bin rental contracts for a Bin cleaning service to be performed at the request of the Customer for a fee specified in such contract. The initial delivery of such Bins and Carts shall occur as provided in accordance with the implementation schedule agreed upon by the Parties.
4.3.2. Curbside Single-Family Residence. Company shall, once per week, collect the Solid Waste that has been placed, kept or accumulated in a Cart (other than a Bin) at Single-Family Residences within the Service Area and placed at curbside or roadside prior to Company’s normal weekly collection time, provided that in no event shall Company be required to collect any additional Solid Waste placed at curbside which is not placed in the Cart. The standard service level for a SingleFamily Residence shall be a 64-gallon Cart. The Company may also collect Solid Waste at Single-Family Residences within the Service Area at additional times or in excess volumes for an additional fee as agreed upon in separate contracts between Company and each customer requesting such service.
4.3.3. City Facilities’ Collection. The Company shall collect, transport and dispose of all Solid Waste generated at public facilities identified in Exhibit 3 according to the specified service levels and collection frequency. The Company shall make collections from containers Monday through Friday or on Saturdays following nonworking holidays. Collections from bins and debris boxes shall be scheduled at a time mutually agreed upon by the Company and City. The Company shall provide, at City’s direction, additional Solid Waste services entailing:
4.3.3.1. Collection of Solid Waste, Recyclable Materials and Green Waste from City facilities and parks;
4.3.3.2. Provision of debris box service as directed by City; and,
4.3.3.3. Review of plans for land use or property developments with regard to Solid Waste service issues.
At the option of the City, exercised in writing, these additional services may be provided at no charge to the City but shall be reimbursed to the Company through the Service Rates charged other service recipients.
4.3.4. Permanent Containers/Debris Box Service. Company shall provide permanent /debris box Containers for the purpose of Collection of Solid Waste. Company shall deliver to and Collect debris boxes from the location identified by the service recipient. Containers shall be free of graffiti and in good repair. Containers must be clearly marked and identifiable as belonging to Company. Special consideration shall be given when determining the pick-up area for temporary Containers to ensure that the flow of traffic is not impeded and that it does not result in aesthetic degradation of an area. The designated pick up area, if disputed by service recipient or Company, shall be determined by City. Additionally, if in City’s opinion the location of an existing pick-up area is inappropriate, City may require the service recipient or Company to relocate the pick-up area.
4.3.5. Roll-Off Boxes. The Company will provide 10 roll-off box hauls to the City at no additional charge for the purpose of code enforcement and blight abatement within the City. The Company will deliver the boxes within the City as requested by the City. The Company will provide information for code enforcement to discourage the placement of hazardous materials in these abatement boxes; City will be responsible for any hazardous materials placed in the abatement boxes. Should the City decide not to implement this program, it may use the 10 roll-off box hauls for other cleanup programs or for the City’s use.
4.3.6. Hours of Collection. Collection Service of all Bins and Carts shall not start before 5:00 a.m. for commercial and 6:00 a.m. for residential or continue after 6:00 p.m., subject to change by action of the City Council.
4.3.7. Multiple-Family Dwellings. Multiple-Family Dwellings shall be provided with Solid Waste Service as frequently as negotiated with the Customer but in no event less that once per week, to collect the Solid Waste that has been placed, kept or accumulated in Bins; an exception is where the facility self-hauls and provides proof to the City that all waste materials are being properly disposed or diverted according to applicable law. Waste Management will work with each complex to customize the appropriate level of service. Multiple-Family Dwellings will have the option to
select the appropriate cart size or 2, 3, 4, and 6-cubic yard bins for Solid Waste collection. The 6-cubic yard bins will not have wheels.
4.3.8. Commercial Customers. Commercial Customers shall be provided with Solid Waste Service as frequently as negotiated with the Commercial Customer but in no event less that once per week, to collect the Solid Waste that has been placed, kept or accumulated in Bins; an exception is where the facility self-hauls and provides proof to the City that all waste materials are being properly disposed or diverted according to applicable law. Waste Management will work with each Commercial Customer to customize the appropriate level of service. Commercial Customers will have the option to select the appropriate cart size or 2, 3, 4, and 6-cubic yard bins for Solid Waste collection. The 6-cubic yard bins will not have wheels.
4.3.9. Cart Replacement. The Company, without expense to the City or Customer, and within seventy-two hours after notice, shall replace Solid Waste Carts that are lost, stolen or damaged, unless due to customer neglect such as putting hot ashes in the Cart in which case the Company may charge the Customer for the retail costs of the replacement Cart. In addition, the Company will replace Solid Waste Carts damaged due to normal wear and tear and provide free replacements for graffiti on Solid Waste Carts without charge within 14 days of the Customer’s or City’s request.
Customers will be able to make a change in Cart size or number of Carts once every twelve months at no additional replacement cost. The Company, without expense to the City or the Customer, and within five working days after notice, shall provide a Solid Waste Cart to a new Residential Customer that has no such Cart or to a new Multi-Family Customer who elects Cart service. The Company shall own and maintain all Solid Waste Carts at its expense, except as provided in this paragraph.
4.3.10. Clean-Up Event. The Company shall hold one clean-up event per year for the collection of Solid Waste, which shall be open to Residential Customers of the Company in the Service Area (one load per Customer). The actual date and time will be set by the Company in coordination with the City at least ninety (90) days in advance. The Company shall reasonably inform Residential Customers within the Service Area, at least two weeks in advance of the clean-up event, of the date, time, location and other information pertinent to the clean-up event.
4.3.11. Senior Residential Service. Senior citizens may receive a 35-gallon Solid Waste Cart at the Service Rate provided in Exhibit 2. In order to qualify for the reduced senior Service Rate all inhabitants at the property, shown by driver’s license or other identification acceptable to Company, must be sixty-five (65) years of age and older.
4.4. RECYCLING.
4.4.1. Residential Recycling. The Company shall, once every other week, Collect, Process, Recycle, and Transport all Recyclables from all Residential Customers.
Recycling Carts shall be collected using an automated collection system. The
Company will only provide Recycling services to Residential Customers that receive and pay for Solid Waste services.
4.4.2. Residential Recycling Carts Provided. Company shall provide Residential Customers with Recycling Carts and promotional information within fourteen (14) days of notice of, or request for, Solid Waste service. Customers may co-mingle all Recyclables listed on Exhibit 1 in the Recycling Cart. The Company shall provide and distribute to each Residential Customer one (1) Recycling Cart, but, upon request of the Customer and as needed, will provide no more than one additional Recycling Cart at no additional charge. The standard service level for a SingleFamily Residence shall be a 64-gallon Recycling Cart.
4.4.3. Residential Recycling Carts Replaced. The Company, without expense to the City or the Customer, and within seventy-two hours after notice, shall provide free replacements of Recycling Carts that are lost, stolen or damaged, unless due to customer neglect such as putting hot ashes in the Cart in which case the Company may charge the Customer for the retail costs of the replacement Cart. In addition, the Company will replace Recycling Carts damaged due to normal wear and tear and provide free replacements for graffiti on Recycling Carts without charge. The Company, without expense to the City or Customer, and within five working days after notice from the City or the Customer, shall provide a Recycling Cart to a new Residential Customer that has no such Recycling Cart. The Company shall own and maintain all Recycling Carts at its expense.
4.4.4. Commercial and Multiple-Family Dwelling Recycling. The Company shall Collect, Process, and Transport all Recyclables from all Commercial and MultipleFamily Dwelling Premises, unless it has received a self-haul exemption. The Company shall notify City of locations where Recycling services are not selected by customer or not possible to provide. Multiple-Family Dwellings will have the option at varying Service Rates to select the appropriate cart size or 2, 3, 4, and 6-cubic yard bins for Recycling collection. The 6-cubic yard bins will not have wheels.
4.4.5. Commercial Recycling Carts Provided. The Company shall provide recycling Carts to each Commercial Premises, except those that properly self-haul. Recycling Carts shall be provided within fifteen (15) working days of sign-up and Owner’s, Customer’s or property manager’s permission and provision of a proper site.
Recycling Carts shall be sited in accordance with all policies and regulations of the City.
4.4.6. Collection Days and Times. To the maximum extent possible, Collection of Recyclables from all Residential Customers shall be made bi-weekly and will be scheduled on the same day as Solid Waste collection. Collection from Commercial Premises shall be made on a regular schedule as negotiated between the Commercial Business and the Company.
4.4.7. Construction and Demolition. The Company shall encourage builders and demolition companies to source separate their C&D for future recycling. Prior to disposal, Company shall have the right to salvage C&D collected pursuant to this Agreement and to retain funds derived therefrom.
4.4.8. Materials to be Recycled. Company shall collect and Recycle all of the materials listed in Exhibit 1.
4.5. GREEN WASTE.
4.5.1. Green Waste Program. Residential Customers and Commercial Customers will participate in a Green Waste Program.
4.5.2. Green Waste Collection. The Company shall, once every other week, Collect and Transport Green Waste set out in Carts. Green Waste Carts shall be collected using an automated collection system. The standard service level for a Single-Family Residence shall be a 96-gallon Cart. Company will provide one additional Green Waste Cart upon the request of the Customer, and service such Cart at no extra cost.
4.5.3. Cart Replacement. The Company, without expense to the City or Customer, and within seventy-two hours after notice, shall provide free replacements of Green Waste Carts that are lost, stolen or damaged, unless due to customer neglect such as putting hot ashes in the Cart in which case the Company may charge the Customer for the retail costs of the replacement Cart. In addition, the Company will replace Green Waste Carts damaged due to normal wear and tear and provide free replacements for graffiti on Green Waste Carts without charge to the City or Customer within 14 days of request by the City or the Customer. Customers will be able to make a change in Green Waste Cart size or number of Carts once every six months at no additional replacement cost. The Company, without expense to the City or the Customer, and within five working days after notice, shall provide a Green Waste Cart to a new Residential Customer that has no Green Waste Cart. The Company shall own and maintain all Green Waste Carts at its expense, except as provided in this paragraph.
4.5.4. Additional Green Waste Carts. During leaf season (beginning October 1st of each year and ending November 30th of each year), the Company, at the request of a residential customer and at no additional cost to the customer, will provide three additional Green Waste Carts.
4.6. OTHER COMPANY REQUIREMENTS.
4.6.1. Company Provided Equipment and Vehicles. Company shall provide an adequate number of vehicles and equipment for the Collection, Disposal and Transportation services for which it is responsible under this Agreement. All vehicles used by Company under this Agreement shall be registered with the Department of Motor Vehicles of the State of California, shall be kept clean and in good repair, shall be,
uniformly painted and shall be washed at least once every seven (7) calendar days during good weather. Company’s name, phone number and vehicle number shall be prominently displayed on its vehicles. Company shall furnish a listing of equipment utilized to perform all services included in this Agreement upon request by City.
4.6.1.1. The City and Company agree that Company’s obligations and/or scope of services under this Agreement exclude any existing requirements regarding the future conversion of fleets, or any part thereof, to Zero-emissions (ZEV) or Near-zero-emissions (NZEV) vehicle(s) or the future acquisition, hiring or use of ZEVs or NZEVs under Applicable Law, including without limitation Sections 2015 et seq. of Title 13 of the California Code of Regulations.
Should such existing Applicable Law apply to any Company’s vehicles used in the provision of services under this Agreement during the Term, then the City and Company agree to meet and confer in good faith to amend this Agreement to incorporate provisions and obligations reasonably necessary to comply with such Applicable Law, and Company shall be entitled to a Service Rates adjustment in accordance with Section 6.5 for such change in Company’s obligations and/or scope of services under this Agreement.
4.6.2. Collection on Holidays. If the day of Collection on any given route falls on Christmas Day, New Year’s Day, Thanksgiving Day or a holiday observed by the Disposal Site to which the City’s Franchise Materials are disposed, Company shall provide Collection Service for such route on the next workday following such holiday, thereby adjusting subsequent workdays that week.
4.6.3. Private Drives and Inaccessible Areas. For Residential Customers on Private Drives or other inaccessible areas, the Company shall Collect Solid Waste, Green Waste and Recyclables on the nearest Public Street or Private Road connecting to the Private Drive or other inaccessible area.
4.6.4. Employees. Company shall exercise reasonable care to hire responsible Employees, to supervise the work of such Employees, and to discipline and, if necessary and consistent with Company’s legal and contractual obligations, discharge an Employee failing to meet reasonable standards for performance of work under this Agreement. Company shall comply with applicable state and federal law pertaining to employment including, but not limited to, applicable equal opportunity employment and affirmative action requirements.
4.6.5. Manner of Collection. The Company shall perform all Collection Services in a quiet and courteous manner and ensure that all Carts and Bins are placed on the premises from which they were removed in an upright position, with lids closed, and within five (5) feet of where they were originally placed before collection.
4.6.6. Service Schedule. In January of each calendar year, the Company shall provide all customers with calendars (which may be in “PDF” or other similar format) identifying the schedule for Solid Waste, Recyclables, and Green Waste Collection
for that calendar year. The calendar shall provide adequate detail for customers to identify specific service days for specific service areas. Hard copies of the calendars shall be made available to Customers upon request.
4.6.7. Code Revisions. The City shall use reasonable efforts to update the municipal code to be consistent with the terms of this Agreement and to reflect new program requirements if requested by the Company.
4.6.8. Service Complaints. All service complaints shall be directed to Company.
Company shall record all complaints duly received and Company agrees to use its best efforts to resolve all such complaints within the two (2) business days next following the date on which such complaint is received.
4.6.8.1. Complaint. The Company agrees to maintain a written log of all oral and written service complaints registered with the Company from Customers, service recipients, or the public within Franchise area (“Complaint Log”). The Company shall be responsible for the prompt and courteous attention to, and prompt and reasonable resolution of, all complaints. Complaints that cannot be reasonably resolved may be appealed to the City Administrator or designee for final resolution. The Company shall record in the Complaint Log all written and oral complaints, noting the name and address of complainant, date and time of complaint, nature of complaint, and nature and date of resolution. Such log shall be kept so that representatives of the City, upon request, may conveniently inspect it.
4.6.8.2. Complaint Response. The Company shall respond to all complaints, other than missed pickups, within twenty-four (24) hours if the complaint is received during a weekday or by the next business day if the complaint is received on a Saturday, Sunday or a holiday.
4.6.8.3. Missed Pickups. In the event of a missed pickup, the Company shall complete the pickup the same day if the complaint is received by 12:00 p.m. or by 12:00 p.m. the following day if the complaint is received after 12:00 p.m.
4.6.8.4. Telephone. The Company shall maintain a toll-free telephone system during office hours (8:00 a.m. to 5:00 p.m.), which will have available service representatives sufficient to handle the volume of calls typically experienced by the Company. Customers must be able, with reasonable convenience, to reach the Company’s office by phone during office hours.
4.7. CHANGE IN OPERATIONS, ADMINISTRATION OR SCHEDULE. The Company shall notify the City in writing of any material changes in, or to the operation to provide Franchise Services (e.g. vehicle routes, equipment type, crew size), administration (e.g., management), and schedule five (5) days in advance of the time such material change is implemented. Any changes to the Company’s Collections operation shall meet the service requirements and performance standards and all other
terms of this Agreement. In the case of changes to the Collection schedule the Company must notify all affected Customers at least (14) days prior to any change in the Collection day. The Company shall not permit any Customer to go more than seven (7) days without Solid Waste Collection Service in connection with a Collection schedule change other than in the event of an Uncontrollable Circumstance.
4.8. ADDITION OF NEW NON-FRANCHISE SERVICES. Upon receiving a written request from the City, the Company shall provide any other exclusive or non-exclusive services not covered by this Franchise, and that it is qualified to provide, including, but not limited to, assistance to the City in the event of natural disasters, subject to establishment of appropriate and mutually agreed upon compensation for providing the service.
5. TRANSFER STATION OPERATION SERVICES.
5.1. TRANSFER STATION OPERATIONS. The Company shall, with the consent of the County of Butte, operate the Ord Ranch Road Transfer Station (the “Transfer Station”) for the receipt of Franchise Materials collected by Company under this Agreement, as well as Self-Haul waste from residences and businesses of the City and surrounding areas of Butte County (including the area of the City and adjacent territory).
City shall have the right to enter and inspect the Transfer Station during normal operating hours.
Company shall have the right to utilize the Transfer Station for Solid Waste, Recyclable Materials, Green Waste, Construction and Demolition Debris collection and transfer purposes, and all of the property, buildings and appurtenances located at the Transfer Station.
City’s responsibilities. City shall be responsible for ordinary maintenance of the Transfer Station and repairs thereto necessitated by normal wear and tear. City shall not be responsible for damages or extraordinary wear to its facilities caused by Company’s active negligence or intentional misconduct. City shall construct, where necessary, fences, walls, paving or appurtenances as may be necessary for the collection, sorting and handling of Franchise Materials.
Company’s responsibilities. Company shall be responsible for keeping the Transfer Station in a clean and workable condition at all times during the term of this agreement.
Company shall not be responsible for any repairs to buildings, grounds and appurtenances on the premises during the term of this agreement, except to the extent the damage was caused by the Company’s active negligence or intentional misconduct.
Company shall be responsible for the payment of all utility charges and fees connected to the operation of the Transfer Station. Company shall provide, and have complete responsibility for all necessary personnel, vehicles, equipment and containers necessary for the collection and handling of Franchise Materials. Company shall be responsible for transferring all material received at the Transfer Station to ultimate disposal or
processing facilities. Company shall be required to ensure that unloaded materials are properly placed in the designated areas. For example, Company shall be required to deposit batteries and cell phones, used motor oil and used motor oil filters in the containers designated for storage of these materials.
5.1.1. Transfer Operations. Transfer operations to be performed by the Company include, but are not necessarily limited to: the screening of incoming loads for hazardous waste, or other unacceptable material at a level consistent with or greater than that required by the applicable regulations; receipt of acceptable Solid Waste; the transfer of Solid Waste from the designated tipping area to the Company provided (40) to sixty five (65) yard transfer containers; and transport of Solid Waste to the Disposal Site.
5.1.2. Residential Household Hazardous Waste Program. Company agrees to conduct a Residential Customer household hazardous waste program at the Transfer Station free of charge to City residents. As a part of this program, the Company shall conduct appropriate public awareness and education programs concerning the need to separately dispose of certain hazardous wastes used commonly for residential use.
Company shall further institute a once a month collection of household hazardous waste at the Transfer Station, including a load check program at the landfill site.
Materials to be accepted shall include, at a minimum, antifreeze, batteries, oil, paint and materials containing chlorofluorocarbon (CFC).
5.1.3. Transfer Station Voucher. City will provide each dwelling unit receiving residential services with one “Transfer Station Voucher” on a schedule and on a form to be approved by the Company. Each voucher will entitle a resident of that dwelling unit to dispose at no cost of up to two (2) cubic yards of refuse at the Transfer Station during the term of this Agreement. To be valid, the voucher must be presented upon entrance to the transfer station. Notwithstanding the foregoing, the voucher shall not permit the disposal of commercial waste or any materials that under current or future statute, ordinance or regulation require the application of special treatment, handling, or disposal practices beyond those normally required for solid waste, including without limitation dirt, concrete, tires, liquids, toxic or hazardous materials, cathode ray tubes (CRT), materials containing CFC’s, and large or heavy metal objects such as auto bodies, engines, transmissions, refrigerators, and air-conditioners; provided, however, that Company may, in its discretion, accept such waste and materials for an additional charge to be determined by Company.
5.1.4. Senior Bulky Waste Collection. Upon request by the City, the Company will provide at no additional charge curbside collection of Bulky Waste for Residential Customers who request such service, are over 65 years of age and do not have a vehicle to use the voucher at the transfer station; provided that the Company’s obligation shall be limited to collecting Bulky Waste consisting of no more than four cubic yards in aggregate per household per year. The Company’s obligations shall be limited to the first 25 qualifying individuals requesting service during each
calendar year. Such services will be provided on a schedule mutually agreed upon by City and the Company. The Company may charge an additional charge of $35 for special handling items, such as a refrigerator requiring refrigerant evacuation.
Should the City decide not to implement this program, the City may utilize the 25 four cubic yard cleanup bins for code enforcement, other clean-up programs or for the City’s use. For purposes of this paragraph “Bulky Waste” excludes Hazardous Waste, items larger than four cubic yards and items of excessive size or density, such as engine blocks, spas, boats and trailers.
5.1.5. Drop-Off Recycling Center. As part of the Transfer Station Operation Services the Company agrees to provide and maintain a drop-off recycling center at the Ord Ranch Road Transfer Station. Materials to be accepted are to include, but are not necessarily limited to: aluminum cans, glass bottles and jars, e-waste, metal cans and narrow neck plastic containers (plastic 1 & 2), and newspaper, mixed paper (including but not limited to magazines, junk mail, brown paper bags, and white and colored paper), and corrugated cardboard.
5.2. MATERIALS TO BE TRANSFERRED AND DISPOSED OF AT THE TRANSFER STATION.
5.2.1. The Company shall accept and transfer all self-hauled Solid Waste within the jurisdiction of the City and in the Gridley-Biggs County areas and delivered to the Transfer Station.
5.2.2. Company shall have sufficient bins on hand such that no one be turned away who presents acceptable Solid Waste during the hours the Transfer Station is open.
Delivery of Solid Waste, Recyclable Materials, Green Waste or any other materials to the Transfer Station by a commercial hauler or collector other than Company is not permitted without the written authorization of the City.
5.3. DAYS AND HOURS OF OPERATION. The Transfer Station will be open to the public, at a minimum, every Saturday and Sunday, unless Saturday or Sunday falls on a recognized holiday, between the hours of 9:00 a.m. and 5:00 p.m. Company may remain open additional days and additional hours if the volume of Solid Waste is such that additional time is warranted. In the event that Company does desire to operate on additional days, Company shall give the City thirty (30) days’ notice of its intention to do so.
5.4. CITY USE OF TRANSFER STATION. The City reserves the right to enter the Ord Ranch Road Transfer Station at any time, including non-operating hours, for its own use for the purpose of dumping street sweepings and refuse. There shall be no charge to the City for this material.
5.5. COMPANY AND OTHER COMMERCIAL HAULER USE OF TRANSFER STATION.
5.5.1. Company Use of Transfer Station. The Company shall have the right to use the Ord Ranch Road Transfer Station for the transfer of Solid Waste, Recyclable Materials and Green Waste. Should the Company not be able to use the Ord Ranch Road Transfer Station for this intended purpose due to regulatory prohibitions or inability to effectively operate the transfer station as proposed due to lack of effective due diligence or other factors within its control, it shall make alternative arrangements for handling of this material at no additional cost to the City; if Company is not able to use the Transfer Station for reasons beyond its reasonable control, and alternate facilities are used at an increased cost to Company, then Company shall be entitled to additional compensation (Section 6.4). Company shall notify the City in writing of any proposed material changes to the use of the Ord Ranch Road Transfer Station. Approval of any such proposed changes shall be entirely at the discretion of the City, and shall be provided to the Company in writing.
5.5.2. Commercial Hauler Delivery to Transfer Station. The City and Company may agree in writing to authorize other commercial haulers to deliver Solid Waste, Recyclable Materials or Green Waste to the Ord Ranch Road Transfer Station.
5.6. APPLICATION AND PERMIT. Attached hereto and made a part hereof is a copy of the Solid Waste Facilities Permit for the Ord Ranch Road Transfer Station (Attachment A). The requirements and the provisions of said Permit are incorporated herein and made a part of this Agreement, and Company agrees to abide in all respects by the requirements of said Permit.
5.7. AGREEMENT WITH COUNTY. Attached hereto (Attachment B) and made a part hereof is a copy of the “Agreement Between the County of Butte and the City of Gridley for the City’s Use of Certain Premises” (City/County Transfer Station Agreement). The requirements and the provisions of said City/County Transfer Station Agreement are incorporated herein and made a part of this Agreement, and Company agrees to abide in all respects by the requirements of said City/County Transfer Station Agreement. The City shall make a good faith effort to extend the term of the City/County Transfer Station Agreement for an additional period ending no earlier than eight years following the end of the Initial Term. Should the County decline to extend or renew the Transfer Station Agreement, the City and Company will meet to determine impacts and options.
5.8. INSPECTIONS. To ensure that the regulations and laws for the operation of the Ord Ranch Road Transfer Station are met, the site and operation may be inspected during the term of this Agreement by a representative of the City, State or other authorized agency to assure compliance.
6. SERVICE RATES.
6.1. AMOUNT OF SERVICE RATES. As of the Effective Date of this Agreement, Company may not charge Service Rates in excess of those set forth in Exhibit “2.” The Company may establish charges for Special Services that are not specified in Exhibit 2.
6.2. CPI ADJUSTMENT. The Service Rates set forth in Exhibit 2 shall be adjusted on January 1st of each year, beginning January 1, 2025 and annually thereafter to reflect one-hundred percent (100%) of the annual change in the Consumer Price Index, series CUUR0000SEHG CPI-U Water and Sewer and Trash Collection Services, US City Average, not seasonally adjusted, as published by the United States Department of Labor, Bureau of Labor Statistics (CPI). This annual adjustment to the rates will be based on 100-percent of the annual percentage change in the CPI for September of the current year as compared to September of the prior year (CPI 100% Rate Adjustment Factor). Annual CPI adjustments shall have a 2% floor and 5% cap. If an annual CPI adjustment would otherwise be lower than 2% or above 5%, such difference will be applied to the following year’s CPI adjustment. For example, if a CPI adjustment would be 6% if not for the cap, the adjustment shall be 5%, and 1% shall be added to the following year’s CPI adjustment. The Company shall submit a formal Request for Service Rates Adjustment to the City on an annual basis no later than November 1st of the current year.
6.3. FUEL COST ADJUSTMENT.
6.3.1. Entitlement to Fuel Cost Adjustment. The Service Rates set by this Agreement are calculated to pay certain expenses and costs that are of a contingent and uncertain nature. Therefore, in addition to the CPI Adjustment and other rate adjustments provided by this Article 6, the Service Rates shall be further adjusted for changes in fuel costs associated with performance of the services hereunder in the manner provided below.
6.3.2. Procedural Requirements. The Fuel Cost Adjustment shall be made annually concurrently with and using the same time frames as the adjustment for changes in the Consumer Price Index as contemplated by Section 6.2.
6.3.3. Formula for Fuel Cost Adjustments. The Fuel Cost Adjustment shall be calculated by the following formula:
(1+ [(Fuel Cost Change – CPI Change) x Fuel Percentage]) x Old Rate = New Rate The terms used in the preceding formula shall have the following meanings:
“Fuel Cost Change” means, for No. 2 diesel fuel, the average price for California No. 2 diesel fuel for the most recently completed calendar year divided by such average price for the calendar year preceding the most recent calendar year. The price used to compute the Fuel Cost Change shall be the price reported by the United States Department of Energy, Energy Information Administration. In the event that price is no longer reported, the parties will designate a new methodology for determining the price based on comparable data. For fuels other than No. 2 diesel, the Company shall calculate the change in fuel cost using the same time periods and a reasonably comparable fuel price index.
“CPI Change” means the average CPI index for the U.S. City Average, All Items, 1982- 84 = 100, for All Urban Consumers, for the most recently completed calendar year divided by such average price for the calendar year preceding the most recent calendar year.
“Fuel Percentage” means the Company’s total cost for diesel fuel (or such other fuel as is employed by Company) incurred during the most recent calendar year divided by Company’s total operating revenue for such calendar year, in both cases calculated for Company’s operations district that includes the City.
“Old Rate” means each of the rates for services as they may have been previously adjusted or amended.
“New Rate” means the new rate calculated pursuant to the preceding formula that will replace the Old Rate.
6.3.4. Fuel Cost Floor. This rate adjustment for fuel costs shall be in addition to, and not in lieu of, any other rate increase to which Company may be entitled under this Agreement. Under no circumstances may an adjustment for fuel costs reduce a rate below the initial rates as of the Effective Date, as increased thereafter pursuant to this Article 6 or other provisions of this Agreement. Adjustments for fuel costs shall only be made to increase or reduce (but not below zero) prior adjustments for fuel costs.
6.4. REDIRECTION OF FRANCHISE MATERIALS. In the event that the Company redirects Solid Waste, Recyclable Materials and/or Green Waste to a facility other than the Ord Ranch Road Transfer Station and such changes result in a material increase or decrease in costs and/or increase or decrease in revenues to the Company, the Company and the City shall have the right to receive an adjustment in the Service Rates sufficient to offset in full such increase or decrease, and in no event shall the Company be required to implement any redirection until such time as adjustments in the Service Rates rates have been made in order to compensate the Company for such increase in costs and/or decrease in revenues.
6.5. EXTRAORDINARY SERVICE RATE REVIEW REQUEST. In addition to the annual adjustment provided by Sections 6.2, 6.3 and 6.4 above, the Service Rates shall, upon written request of Company, be further adjusted to fully capture increased expenses and lost revenue associated with performance of the services hereunder due to any one or more of the following causes:
6.5.1. Uncontrollable Circumstance;
6.5.2. Changes in Applicable Law that is effective after the Effective Date of this Agreement;
6.5.3. Increase in surcharges, fees, assessments or taxes levied by federal, state or local regulatory authorities or other governmental entities related to the Franchise Services;
6.5.4. Processing facility and disposal facility/landfill tip fees that are not regulated by the Company or an affiliate of the Company.
6.5.5. Any other extraordinary circumstances or causes or reasons that are not within the reasonable control of Company.
If Company requests a Service Rates adjustment pursuant to this Section 6.5, it shall prepare a Service Rates adjustment request setting forth its calculations of the increased costs/lost revenue and accompanying adjustment to the Service Rates necessary to offset such increased costs/lost revenue. The City may request documentation and data reasonably necessary to evaluate such request by Company, and may retain, at its own expense, an independent third party to audit and review such documentation and request.
If such third party is retained, the City shall take reasonable steps, consistent with Applicable Law, to protect the confidential or proprietary nature of any data or information supplied by Company. The City shall approve all properly calculated Service Rates adjustments within ninety (90) days of Company’s request, and the adjusted Service Rates shall be deemed to take effect as of the date of Company’s request.
In addition, if the request is based upon any new or increased third party fees, taxes, assessments or charges, the City shall approve the Service Rates adjustment within such time period as necessary to ensure that such fees, taxes, assessments or charges are passed on to Service Recipients by the date the same are effective.
6.6. BILLING AND COLLECTION OF ACCOUNTS. Company shall bill Customers for all Collection Services (including Disposal) for Franchise Materials as part of a single all-inclusive Service Rate. Such billings may cover the periods and be collected by the methods hereinafter set forth.
6.6.1. Residential. Single-Family Residence and Multiple-Family Dwellings Customers may be billed for up to three (3) months in advance or based on arrears/advanced billing combinations implemented at the discretion of the Company. Payment shall be due within 30-days of the billing date. If not paid when due, the bill may thereafter bear a late charge of 1.5% per month which shall be collectible along with the charge for service. If the bill is not within 90-days of billing, and after notice of delinquency has been sent to the Customer by Company, the Company may discontinue service and may continue charge interest not to exceed 1.5% per month, for such time as the bill remains unpaid after the due date.
6.6.2. Non-Residential. All non-residential Customers shall be billed monthly in advance, except for roll-off services, which may be billed in arrears. Payment with respect to each such bill shall be due on or before the 30th day following the end of the service period for which the bill is rendered; thereafter the bill shall be considered delinquent, and the Company may discontinue service and may charge interest, not to exceed 1.5% per month, for such time as the bill remains unpaid after the due date.
6.6.3. Special Assessment Procedure. During each quarterly billing period, Company shall determine which Customers (SFD, MFD and Commercial) are ninety (90) days or more delinquent in payment of their bill. Company shall prepare and mail a bill to each such Customer indicating that the Customer has incurred a bill that is ninety (90) days delinquent. Company shall also mail a notice to each affected property Owner, if not the Customer, advising the Owner that the Customer’s tenant has incurred a bill that is ninety (90) days delinquent, including tenants who have cancelled their service. Company agrees that it will use the most current data of property Owners compiled by the County Tax Assessor’s Office when mailing such notices.
Company will mail three (3) notices to delinquent Customers and each affected property Owner. Such notices shall be mailed in February, March and April, with a payment due date of June 1st. Company shall provide the City a list of the delinquent accounts that have not paid. A bill must be past due at least one hundred twenty (120) days and the Company shall exercise reasonable efforts as described in this Section to achieve collection of the bill prior to passing it on to the City for placement on the tax rolls. City shall reimburse Company for delinquent payments that are placed on the tax roll upon collection of those payments from the property Owner and within thirty (30) days of receipt by the City.
6.6.4. Special Services. Company shall also receive fees for performance of special services as agreed upon in separate contracts between Company and each Customer requesting such special service. Company shall provide the City with notice of such special services and the fees charged.
6.7. CONTAMINATION AND OVERAGE.
6.7.1. Definitions:
6.7.1.1. Contamination: Materials placed in a Recyclable Materials container other than Recyclable Materials, or material placed in a Green Waste container other than Green Waste.
6.7.1.2. Overage: (i) Solid Waste, Recyclable Materials or Green Waste exceeding its container’s intended capacity such that the lid is lifted (or would be lifted if lowered) or (ii) Solid Waste, Recyclable Materials or Green Waste placed on top of or in the immediate vicinity of the container, in bags or otherwise.
6.7.1.3. Violation Notice: An electronic notice to the customer (if such contact information is provided by customer) with the following information: (a) Date of the offense; (b) description of the offense; (c) if available, a photograph or video (or link to photograph or video); (d) description of the materials that are appropriate for collection in said container and a link to view online with
educational materials; and (e) website to obtain additional information and/or receive responses to questions the customer may have.
6.7.2. The following shall apply regarding occurrences of Contamination and Overage:
6.7.2.1. Contamination.
6.7.2.1.1. First and Second Occurrences. Company shall service containers with Contamination except where there is visible Excluded Waste.
Company shall provide a Violation Notice, where such contact information has been provided.
6.7.2.1.2. Third and Subsequent Occurrences. Company may opt to not collect Recyclable Materials or Green Waste containers with Contamination; in such event, the customer may request the container be collected as Solid Waste, and an additional fee will apply. Alternatively, Company may collect a container with Contamination and invoice the customer a Contamination Charge in the amount set forth in Exhibit A. In either case, the Company shall provide a Violation Notice where such electronic contact information has been provided.
6.7.2.2. Overage. Company may opt to not collect Overage, unless caused by Company spillage of non-overloaded containers during collection; in such event, the customer may correct the Overage and request that Company return to service the container (an additional fee will apply). Alternatively, Company may collect the container with Overage and invoice the customer an Overage Charge in the amount set forth in Exhibit A. In either case, the Company shall provide a Violation Notice where such electronic contact information has been provided. If there have been more than three instances of Overage in any 12- month period for a particular service (i.e., Solid Waste, Recyclable Materials, or Green Waste), Company may increase the customer’s service level (i.e., larger container or more frequent service) to mitigate the Overage, and may increase the charges to such Customer according to the increased service level.
6.7.2.3. Overweight Containers. The Company may refuse to collect any Solid Waste, Recyclable Materials, or Green Waste Container which the Company reasonably believes to be overweight. A container shall be considered “overweight” if the total weight of the container and contents exceeds two times the volume capacity of said container (e.g., 192 pounds for a 96-gallon Cart). The Company shall provide notification to the customer regarding each instance of non-collection.
7. REPORTS. The Company will provide the City with reports that contain the information required by the City for compliance with AB 939 and for the City to measure the Company’s performance of items in this Agreement, but limited to information directly attributable to the
Collection Services provided under this Agreement. The frequency and content of the reports shall be determined by agreement of the City and the Company.
8. INDEMNITY, INSURANCE.
8.1. INDEMNIFICATION OF THE CITY.
8.1.1. General Indemnity. The Company agrees to and shall indemnify, defend, with counsel acceptable to the City, and hold harmless City, its officers, officials, employees, volunteers, agents and assigns from and against any and all damages (whether special, general or punitive), loss, liability, fines, penalties, forfeitures, claims, demands, actions, proceedings or suits (whether administrative or judicial), in law or in equity, of every kind and description, ( including, but not limited to, injury to and death of any person and damage to property, strict liability, product liability, or for contribution or indemnity claimed by third parties) arising or resulting from or in any way connected with: (i) the operation of the Company, its agents, employees, affiliates and subcontractors, in performing or failing to perform this Agreement; (ii) the failure of the Company, its agents, employees, affiliates and subcontractors to comply in all respects with the provisions of this Agreement, Applicable Laws; (iii) the acts of Company, its officers, employees, agents, affiliates and subcontractors in performing services under this Agreement (whether or not third parties may also be contributorily negligent); (iv) the acts of the Company, its officers, employees, agents, affiliates and/or subcontractors in performing services under this Agreement for which strict liability is imposed by law (including without limitation strict liability under environmental laws), subject to the Company’s right of contribution, if any, against the City; and (v) the processing, marketing, and end use of Recyclable Materials and Green Waste. The foregoing indemnity shall only apply to the extent such loss, liability, penalty, forfeiture, claim, demand, action, proceeding, suit, injury, death or damage is not caused by the negligence or willful misconduct of the City, its officers, employees, agents or volunteers.
8.2. INSURANCE SCOPE AND LIMITS. The Company shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Company, his agents, representatives, employees or subcommands.
With respect to General Liability and Pollution and/or Environmental Impairment Liability coverage shall be maintained for a minimum of five (5) years after contract completion, which continuing coverage may be maintained through continuous policy renewals. The maintenance of claims made against any insurance required of the Company shall not be considered a waiver by City of any claim or liabilities it may have against the Company.
8.2.1. Minimum Limits of Insurance. The Company shall maintain insurance coverage of the following type and with limits no less than:
8.2.1.1. General Liability: $5,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage.
8.2.1.2. Automobile Liability: $5,000,000 combined single limit per accident for bodily injury and property damage.
8.2.1.3. Worker’s Compensation and Employer’s Liability: $3,000,000 each accident, $1,000,000 policy limit bodily injury or disease, $3,000,000 each employee bodily injury by disease.
8.2.1.4. Pollution and/or Environmental Impairment Liability: $5,000,000 each occurrence/$10,000,000 policy aggregate covering liability arising from the release of waste materials and/or irritants, contaminants or pollutants.
8.2.2. Deductible and Self-Insured Retentions. The deductibles or self-insured retentions for the General Liability and Auto Liability policies are for the account of the Company and shall be the sole responsibility of the Company.
8.2.3. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions:
8.2.3.1. Automobile liability and general liability: The City, its officers, officials, employees and volunteers are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Company; and with respect to liability arising out of work or operations performed by or on behalf of the Company including materials, parts or equipment furnished in connection with such work or operations.
8.2.3.2. Worker’s Compensation and Employers Liability Coverage. The Insurance company shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from work performed by the Grantee for the City.
8.2.3.3. All Coverages. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party except after thirty (30) days prior written notice has been given to the City.
8.2.3.4. Verification of Coverage. The Company shall furnish the City with certificates of insurance and endorsements effecting coverage required by this clause or certificates evidencing such coverage. The endorsements or certificates are to be signed by a person authorized by that Insurance Company to bind coverage on its behalf.
8.3. REVOCATION OF PREVIOUS AGREEMENTS. This Agreement, rather than any preceding agreements between the City and Company, shall govern with respect to the Company and City’ rights, duties and obligations relating to this Franchise. Upon execution of this Agreement, all previous Agreements shall terminate and be of no further force and effect except with respect to covenants therein for acts and omissions occurring prior to the date of termination.
8.4. COMPLIANCE WITH APPLICABLE LAW AND MUNICIPAL CODE. Company agrees that it will comply with all Applicable Law and those provisions of the Gridley Municipal Code which are applicable to the work or business in which it is herein franchised, and with any and all amendments to such applicable provisions during the term hereof, but only to the extent they are not inconsistent with or do not conflict with the terms and conditions of this Agreement without regard to this Section.
9. DEFAULT; DISPUTE RESOLUTION.
9.1. EVENTS OF DEFAULT. Each of the following shall constitute an event of default (“Event of Default”) hereunder, in each case subject to any applicable cure rights, including without limitation the cure rights provided in Section 9.2:
9.1.1. Failure to correct breach. Failure to correct any breach of this Agreement within the applicable cure period (as defined below).
9.1.2. Company bankruptcy. The Company files a voluntary petition for debt relief under any applicable bankruptcy, insolvency, debtor relief, or other similar law now or hereafter in effect, or consents to the appointment of or taking of possession by a receiver, liquidator, assignee (other than as a part of a transfer of equipment no longer useful to the company or necessary for this Agreement), trustee (other than as security for an obligation under a deed of trust), custodian, sequestrator (or similar official) of the company for a part of the Company’s operating assets or any substantial part of the Company’s property, or shall make any general assignment for the benefit of the Company’s creditors, or shall fail generally to pay the Company’s debts as they become due.
9.1.3. Court order or decree. Any court having jurisdiction shall enter a decree or order for relief in respect of the Company, in any involuntary case brought under any bankruptcy, insolvency, debtor relief, or similar law now or hereafter in effect, or the Company shall consent to or shall fail to oppose any such proceeding, or any such court shall enter a decree or order appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Company or for any part of the Company’s operating equipment or assets, or order the winding up or liquidation of the affairs of the Company.
9.2. CURE RIGHTS. Notwithstanding any other provision of the Agreement to the contrary, the City shall provide the Company with reasonable notice of and a reasonable opportunity to cure any breach of this Agreement during the time periods set forth below or such longer period as may otherwise be provided in the Agreement (the “Cure Period”). Any breach that is timely cured by the Company shall not be determined to constitute an event of default or give rise to the City’s right to terminate or suspend the Agreement or pursue its other remedies for breach. The Company shall begin cure of any breach or default as soon as it becomes aware of the breach or default, whether
discovered by the Company or through notice from the City. Upon becoming cognizant of the default, the Company shall proceed to cure such default as follows:
9.2.1. Immediately, if the default is such that in the determination of the City, the health, safety, or welfare of the public is endangered thereby; or
9.2.2. Within thirty (30) days of giving or receiving notice of default; provided that if the nature of the default is such that it will reasonably require more than thirty (30) days to cure, the Company shall have such additional time as is reasonably needed to expeditiously complete a cure. During any default cure period, the Company shall provide the City weekly written status of progress in curing such default.
9.3. RIGHT TO TERMINATE UPON DEFAULT. Upon an Event of Default by the Company, the City shall have the right to terminate this Agreement, subject to review as provided in Section 9.6.
9.4. CUMULATIVE SPECIFIC PERFORMANCE. The City’s right to terminate the Agreement under Section 9.3 is not exclusive, and the City’s termination of the Agreement shall not constitute an election of remedies. Instead, all remedies provided for in this Agreement shall be in addition to any and all other non-duplicative legal and equitable rights and remedies which the City may have under law or as otherwise provided in this Agreement.
9.5. EXCUSE FROM PERFORMANCE.
9.5.1. Excuse from Performance. The Parties shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by Uncontrollable Circumstances beyond the control of and not the fault of the Party claiming excuse from performance hereunder. In the event of labor unrest, including but not limited to strike, work stoppage or slowdown, sickout, picketing, or other concerted job action, the Company shall not be required to adhere strictly to the specific requirements of this Agreement regarding routes, collection times or similar matters; provided, however, that: (i) in no event shall more than nine days elapse between pickups for customers, and (ii) all customers shall receive at least 24 hours’ notice of deviations from collection routes or times.
9.5.2. Notice. The Party claiming excuse from performance shall, within two (2) business days after such party has notice of such cause, give the other party notice of the facts constituting such cause, efforts undertaken by the Company to attempt to perform this Agreement, the estimated timelines for such performance, and asserting its claim to excuse under this Section; provided, that failure to give such notice shall not eliminate the excuse from performance except to the extent the other Party shall have been prejudiced by such failure.
9.6. DISPUTE RESOLUTION.
9.6.1. Reference of dispute. Any dispute seeking damages and any dispute seeking other legal or equitable relief, including but not limited to specific enforcement of any provision hereof, shall be heard and determined as provided below in this Section
9.6. 9.6.2. Dispute Resolution Procedures.
9.6.2.1. Negotiations. In the event that any dispute may arise, the parties shall first seek to resolve any disputes by negotiations between a senior executive of the Company and the City Administrator (the “Senior Executives”).
9.6.2.1.1. Notification. When a party believes there is a dispute relating to the Agreement, the party will give the other party written notice of the dispute.
9.6.2.1.2. Meeting among Senior Executives. The Senior Executives shall meet at a mutually acceptable time and place within thirty (30) days after the date of the notice to exchange relevant information and to attempt to resolve the dispute. If a Senior Executive intends to be accompanied at a meeting by an attorney, the other party’s Senior Executive shall be given at least three (3) business days’ notice of such intention and may also be accompanied by an attorney.
9.6.2.1.3. Confidentiality. All negotiations are confidential and shall be treated as compromise and settlement negotiations under the State of California Rules of Evidence.
9.6.2.2. City Council. If the dispute has not been resolved within thirty (30) days after the date of the notice of a dispute, or if the party receiving such notice fails or refuses to meet within such time period, either party may submit the dispute to the City Council for resolution by making written request to the City Council. The City Council shall consider the dispute at a meeting to be held within thirty (30) days following receipt of such request.
9.6.2.3. Litigation. If a dispute has not been resolved to the satisfaction of the parties within sixty (60) days after the written submission to the City Council, then either party may initiate litigation in the courts of the State of California, which shall have exclusive jurisdiction over such disputes. The exclusive venue for such disputes shall be Butte County.
9.6.3. Interim Measures. Notwithstanding the requirements for alternative dispute resolution procedures (such as negotiation and submission to the City Council), either party may apply to the courts of the State of California for equitable relief, including temporary restraining orders, injunctions, attachments and conservation orders in appropriate circumstances.
9.6.4. Costs and Attorney’s Fees. In the event of any action or litigation to enforce this Agreement, for interpretation or construction of this Agreement, or on account of any default under or breach of this Agreement, each party to such action, arbitration or litigation shall bear its own costs and expenses in connection with such action or litigation.
9.6.5. Punitive Damages. Penal, punitive, treble, multiple, consequential, incidental or similar damages may not be recovered or awarded as damages for a breach of this Agreement. However, notwithstanding the preceding sentence, in the case of a finding of tortious liability by either party, there shall be no prohibition on the award of punitive, exemplary or treble damages where such damages are based upon a judicial finding of “fraud”, “oppression” or “malice” as those terms are defined in California Civil Code 3294.
10. ASSIGNMENT.
10.1. “Assignment” means: (i) a sale, exchange or other transfer of this Agreement, the Company’s rights hereunder, or substantially all of the Company’s assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of thirty (30) percent or more of the outstanding common stock of the Company; (iii) any reorganization, consolidation, merger re-capitalization, stock issuance or re-issuance, voting trust, pooling Agreement, escrow arrangement, liquidation or other transaction to which the Company or any of its shareholders is a party which results in a change of ownership or control of thirty (30) percent or more of the value or voting rights in the stock of the Company; and (iv) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership; provided that the effect of such occurrence is to change control of the Company or responsibility for this Agreement to an entity that is not controlled by Company’s ultimate parent entity (as defined on the effective date of this Agreement in 16 CFR §801.1(a)(3)). For purposes of this Section, the term “proposed assignee” shall refer to the proposed assignee(s) or other successor(s) in interest pursuant to the assignment. If the Company is a subsidiary of another corporation or business entity, any “Assignment,” as defined above, by the parent company or corporation shall be considered an Assignment by the Company; provided, however, that no such occurrence shall constitute an “Assignment” if, following such occurrence, the surviving ultimate parent entity is owned by a large, fluid aggregation of shareholders where no shareholder owns more than ten percent (10%) of the voting securities of the surviving ultimate parent entity (excluding, however, any such shareholder that prior to such transaction owned 10% or more of the voting securities of the ultimate parent entity of Company).
Notwithstanding any other provision of this Section 10, reorganizations, mergers, consolidations, sales of equity or assets or similar transactions between or among entities owned by the same ultimate parent, including but not limited to Company and regardless of which entity is the survivor, do not constitute an Assignment.
10.2. In connection with any proposed Assignment, the Company shall furnish the City with satisfactory proof that any proposed assignee has the demonstrated technical and financial capability to perform all Franchise Services, including:
10.2.1. That the proposed assignee has at least 10 years of Solid Waste management experience on a scale equal to or exceeding the scale of operations conducted by Company under this Agreement.
10.2.2. In the last five (5) years, the proposed assignee has not suffered any significant citations or other censure from any State, federal or local laws and the assignee has provided City with a complete list of such citations and censures.
10.2.3. The proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion.
10.2.4. The proposed assignee conducts its Solid Waste management practices in accordance with sound Solid Waste management practices in full compliance with all federal, State and local laws regulating the collection and Disposal of Solid Waste including hazardous substances.
10.2.5. Assignee has experience in billing Customers for a city of comparable size to City of Gridley in which the company has provided residential and Commercial Service, and has successfully performed the billing and collection services for a minimum of five years for Residential and Commercial Customers.
10.2.6. Financial assurances that confirm the assignee’s financial ability to perform the Agreement, and the City may require changes to the insurance coverage provided in this Agreement (including without limitation insurance products, coverage limits, deductibles and self-insured retentions) as appropriate in view of the assignee’s financial capability and to confirm the assignee’s financial ability to perform all Franchise Services and its other responsibilities under this Agreement.
10.2.7. Any other information required by City to ensure the proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner.
The City shall consent to such an assignment if such information reasonably demonstrates that the proposed assignee has the demonstrated technical and financial capability to perform all Franchise Services.
10.3. If the City consents to an Assignment at the point of transition, the Company shall cooperate with the City and subsequent Company(s) or subcontractor(s) to assist in an orderly transition which shall include the Company providing route lists and billing information. If any entity succeeds to the rights duties and obligations of the Company under this Agreement in conformity with the terms of this Section 10 (including with the City’s consent, where required), then the City shall execute a novation whereby such new entity shall assume all of the rights, duties and obligations of the Company under
this Agreement and the City shall release the Company of all obligation and liability under this Agreement.
10.4. The Company shall not delegate or subcontract its obligations under this Agreement to any other person or entity without the prior written consent of the City, other than a delegation or subcontract to an affiliate of the Company.
11. MISCELLANEOUS.
11.1. AMENDMENT. Except for rate and fee adjustments made pursuant to Section 6 of this Agreement, this Agreement may be amended or modified only by a written agreement duly authorized and executed by both City and Company.
11.2. INDEPENDENT COMPANY. It is expressly understood and agreed that Company shall perform all work and services described herein as an independent contractor and not as an officer, agent, servant or employee of City; that Company shall have the exclusive control over the details of the services and work performed hereunder and all persons performing the same; that Company shall be solely responsible for the acts and omissions of its officers, agents, employees, contractors and subcontractors, if any; and that nothing herein shall be construed as creating a partnership or joint venture between City and Company. Neither Company nor its officers, employees, agents or subcontractors shall obtain any rights to retirement benefits, workers’ compensation benefits or any other benefits which accrue to City employees.
11.3. RIGHT OF ENTRY. Company shall have the right, until receipt of written notice revoking permission to pass is delivered to Company, to enter or drive on any private street, court, place, easement or other private property for the purpose of collecting or transporting Franchise Materials of the Owner of or Customer located on the private street, easement, or property, or its lawful occupant.
11.4. LAW TO GOVERN. It is understood and agreed by the parties hereto that the laws of the State of California shall govern the rights, obligation, duties and liabilities of the parties to this Agreement and shall govern the interpretation of this Agreement.
11.5. FEES AND GRATUTIES. Company shall not, nor shall it permit any agent, employee or subcontractor employed by it to, request, solicit, demand or accept, either directly or indirectly, any compensation or gratuity for the collection of Franchise Materials otherwise required to be collected under this Agreement, other than acceptance by drivers of holiday gifts offered by customers of a reasonable value.
11.6. NOTICES. All notices, demands, requests, consents or other communications which this Agreement contemplates or authorizes, or requires or permits either party to give to the other, shall be in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, or a nationally recognized overnight delivery service (receipt requested), addressed to the respective party as follows:
To CITY: City of Gridley
City Hall
685 Kentucky Street
Gridley, CA 95948
Attn: City Administrator
With Copy to:
Anthony E. Galyean, Esq.
Gridley City Attorney
1129 D Street, PO Box “A”
Marysville, CA 95901
To COMPANY: USA Waste of California, Inc.
Attn: President
333 E. Turner Road
Lodi, CA 95240
or to such address as either party may from time to time designate by notice to the other given in accordance with this Section. Such notice shall be deemed effective on the date personally served or, if mailed, three (3) business days from the date such notice is deposited in the mail.
11.7. SEVERABILITY. If any non-material provision of this Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect the validity and enforceability of any of the remaining provisions of this Agreement, which shall be enforced as if such invalid or unenforceable provision had not been contained herein.
11.8. GOOD FAITH AND EXERCISE OF OPTIONS. Parties will exercise any approval, disapproval, consent, option, discretion, election, opinion or choice under this Agreement, make a requirement under this Agreement, or interpret this Agreement (“Discretionary Action”) reasonably. Parties will exercise their rights and remedies in good faith in accordance with Applicable Law. Any referee, court or other decisionmaker must find the party’s exercise to be reasonable.
11.9. ENTIRE AGREEMENT; PRIOR AGREEMENTS; WAIVER. This
Agreement, including all Exhibits and Attachments attached hereto, constitutes the full and entire agreement between the parties with respect to the matters covered herein. All prior and contemporaneous agreements, understandings, negotiations, writings and other communications between the parties are hereby superseded and are no longer of any force and effect, except to the extent that the terms of such communications are expressly addressed in this Agreement. As of the Effective Date, this Agreement shall supersede any and all prior agreements between the parties. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver.
11.10. SECTION HEADINGS. The section and subsection headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions.
11.11. INTERPRETATION. The language of each and all paragraphs, terms and/or provisions of this Agreement, shall, in all cases and for any and all purposes, and in any way and all circumstances whatsoever, be construed as a whole, according to its fair meaning, and not for or against any party hereto and with no regard whatsoever to the identity or status of any person or persons who drafted all or any portion of this Agreement.
11.12. THIRD PARTIES. Nothing in this Agreement expressed or implied is intended or shall be construed to confer upon or give to any person or entity other than the Parties hereto and their successors and permitted assigns, any rights or remedies under or by reason of this Agreement.
11.13. AUTHORITY. All individuals executing this Agreement on behalf of the City or the Company represent and warrant that they are duly authorized to execute and deliver this Agreement to the other Party.
Signatures on following page
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.
CITY OF GRIDLEY, CALIFORNIA
By: ______________________________
Name: ______________________________
Title: ______________________________
USA WASTE OF CALIFORNIA, INC.
By: ______________________________
Name: ______________________________
Title: ______________________________
Exhibit 1
Recyclable Materials
• Aluminum cans
• Glass jars and bottles
• Paper junk mail
• Colored paper and bags
• Steel, bi-metal, and tin cans
• Mixed paper
• Brown paper bags
• Plastic bottles and jugs
• Chip board
• Catalogs
• Plastic containers (#1-2)
• Clean foil containers
• Paper egg cartons
• Corrugated cardboard
• Small scrap and cast aluminum
Exhibit 3
City Facilities / Special Events
Adjustment
5.00%
Commercial Carts Current Rate Adjustment Proposed
Rate
35 gallon $33.04 $1.65 $34.69
64 gallon $46.54 $2.33 $48.87
95 gallon $80.50 $4.03 $84.53
Add'l 35 gallon $31.79 $1.59 $33.38
Add'l 64 gallon $46.54 $2.33 $48.87
Add'l 90 gallon $80.50 $4.03 $84.53
Commercial Bin Rates - Quantity 1 Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate 1 Yard $144.05 $151.25 $232.41 $244.03 $320.81 $336.85 $409.18 $429.64 $497.55 $522.43 $633.99 $665.69
1.5 Yard $176.53 $185.36 $287.14 $301.50 $396.62 $416.45 $507.25 $532.61 $616.73 $647.57 $785.65 $824.93 2 Yard $231.78 $243.37 $377.60 $396.48 $523.38 $549.55 $669.18 $702.64 $813.74 $854.43 $1,037.95 $1,089.85 3 Yard $287.06 $301.41 $467.97 $491.37 $648.91 $681.36 $831.09 $872.64 $1,012.01 $1,062.61 $1,291.51 $1,356.09 4 Yard $341.11 $358.17 $558.38 $586.30 $775.73 $814.52 $992.93 $1,042.58 $1,210.21 $1,270.72 $1,543.80 $1,620.99 5 Yard $396.41 $416.23 $648.81 $681.25 $902.43 $947.55 $1,154.86 $1,212.60 $1,407.29 $1,477.65 $1,796.12 $1,885.93 6 Yard $451.69 $474.27 $740.42 $777.44 $1,027.99 $1,079.39 $1,316.78 $1,382.62 $1,605.52 $1,685.80 $2,048.45 $2,150.87 8 Yard $561.00 $589.05 $921.25 $967.31 $1,280.30 $1,344.32 $1,640.58 $1,722.61 $2,000.80 $2,100.84 $2,554.28 $2,681.99 Commercial Bin Rates - Quantity 2 Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate 1 Yard $281.02 $295.07 $457.73 $480.62 $634.48 $666.20 $811.22 $851.78 $989.21 $1,038.67 $1,260.84 $1,323.88
1.5 Yard $345.88 $363.17 $565.92 $594.22 $786.04 $825.34 $1,006.16 $1,056.47 $1,226.30 $1,287.62 $1,564.15 $1,642.36 2 Yard $456.40 $479.22 $748.04 $785.44 $1,038.37 $1,090.29 $1,330.02 $1,396.52 $1,621.54 $1,702.62 $2,070.00 $2,173.50 3 Yard $565.76 $594.05 $928.83 $975.27 $1,291.90 $1,356.50 $1,653.84 $1,736.53 $2,016.91 $2,117.76 $2,574.62 $2,703.35 4 Yard $676.32 $710.14 $1,109.60 $1,165.08 $1,544.34 $1,621.56 $1,977.55 $2,076.43 $2,412.05 $2,532.65 $3,080.46 $3,234.48 5 Yard $785.71 $825.00 $1,291.71 $1,356.30 $1,796.52 $1,886.35 $2,302.56 $2,417.69 $2,807.49 $2,947.86 $3,585.07 $3,764.32 6 Yard $896.21 $941.02 $1,472.48 $1,546.10 $2,048.84 $2,151.28 $2,626.42 $2,757.74 $3,202.74 $3,362.88 $4,090.97 $4,295.52 8 Yard $1,114.85 $1,170.59 $1,835.36 $1,927.13 $2,554.65 $2,682.38 $3,273.98 $3,437.68 $3,993.27 $4,192.93 $5,101.42 $5,356.49 Commercial Bin Rates - Quantity 3 Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate 1 Yard $416.71 $437.55 $683.01 $717.16 $948.17 $995.58 $1,214.49 $1,275.21 $1,479.64 $1,553.62 $1,887.69 $1,982.07
1.5 Yard $516.47 $542.29 $845.93 $888.23 $1,175.52 $1,234.30 $1,505.06 $1,580.31 $1,835.89 $1,927.68 $2,342.65 $2,459.78 2 Yard $681.03 $715.08 $1,117.27 $1,173.13 $1,554.59 $1,632.32 $1,992.06 $2,091.66 $2,428.13 $2,549.54 $3,100.82 $3,255.86 3 Yard $845.69 $887.97 $1,389.67 $1,459.15 $1,933.66 $2,030.34 $2,477.75 $2,601.64 $3,021.80 $3,172.89 $3,858.97 $4,051.92 4 Yard $1,010.29 $1,060.80 $1,660.82 $1,743.86 $2,312.93 $2,428.58 $2,963.36 $3,111.53 $3,613.95 $3,794.65 $4,615.91 $4,846.71 5 Yard $1,174.95 $1,233.70 $1,933.39 $2,030.06 $2,691.83 $2,826.42 $3,449.06 $3,621.51 $4,207.63 $4,418.01 $5,374.08 $5,642.78 6 Yard $1,339.53 $1,406.51 $2,204.56 $2,314.79 $3,069.68 $3,223.16 $3,936.07 $4,132.87 $4,801.14 $5,041.20 $6,132.25 $6,438.86 8 Yard $1,668.72 $1,752.16 $2,748.26 $2,885.67 $3,827.82 $4,019.21 $4,907.44 $5,152.81 $5,986.91 $6,286.26 $7,647.36 $8,029.73 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week
CITY OF GRIDLEY
Annual Rate Adjustment
Effective 3/5/2024 - 12/31/2024
Commercial Rates
1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week
1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week
Multi-Unit Residential Bin Rates Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate Current Rate Proposed Rate 1 Yard $127.89 $134.28 $205.77 $216.06 $283.65 $297.83 $361.49 $379.56 $439.36 $461.33 $555.74 $583.53
1.5 Yard $156.43 $164.25 $252.80 $265.44 $349.22 $366.68 $446.81 $469.15 $543.21 $570.37 $688.75 $723.19 2 Yard $205.18 $215.44 $332.49 $349.11 $460.99 $484.04 $589.51 $618.99 $716.80 $752.64 $910.03 $955.53 3 Yard $252.72 $265.36 $412.13 $432.74 $571.56 $600.14 $730.99 $767.54 $890.37 $934.89 $1,131.30 $1,187.87 4 Yard $301.47 $316.54 $491.80 $516.39 $683.34 $717.51 $873.62 $917.30 $1,065.14 $1,118.40 $1,351.32 $1,418.89 5 Yard $349.04 $366.49 $571.46 $600.03 $793.86 $833.55 $1,016.31 $1,067.13 $1,238.73 $1,300.67 $1,572.63 $1,651.26 6 Yard $397.79 $417.68 $651.10 $683.66 $905.66 $950.94 $1,158.99 $1,216.94 $1,412.31 $1,482.93 $1,793.89 $1,883.58 8 Yard $494.07 $518.77 $810.41 $850.93 $1,126.74 $1,183.08 $1,444.29 $1,516.50 $1,760.64 $1,848.67 $2,236.42 $2,348.24 Commercial Recycling Current Rate CPI Adjustment Proposed Rate
64 Gallon - EOW $29.38 $1.47 $30.85
2 Yard - 1xWeek $87.09 $4.35 $91.44
3 Yard - 1xWeek $92.34 $4.62 $96.96
4 Yard - 1xWeek $99.69 $4.98 $104.67
6 Yard - 1xWeek $113.33 $5.67 $119.00
Extra Pickup Charges Current Rate CPI Adjustment Proposed Rate
35 gallon $10.39 $0.52 $10.91
64 gallon $11.93 $0.60 $12.53
95 gallon $11.93 $0.60 $12.53
Bag $5.55 $0.28 $5.83
1 Yard $62.88 $3.14 $66.02
1.5 Yard $74.82 $3.74 $78.56
2 Yard $93.18 $4.66 $97.84
3 Yard $122.57 $6.13 $128.70
4 Yard $144.90 $7.25 $152.15
5 yard $168.79 $8.44 $177.23
6 Yard $192.68 $9.63 $202.31
7 Yard $216.59 $10.83 $227.42
8 Yard $240.41 $12.02 $252.43
Ancillary Charges Current Rate Adjustment
Proposed
Rate
Extra pickup non-service day Trip Charge $119.75 $5.99 $125.74 Contamination Bin $57.71 $2.89 $60.60
Contamination Cart $17.84 $0.89 $18.73
Lock bar and lock - one time installation
charge $161.67 $8.08 $169.75
Lock service charge $1.19 $0.06 $1.25
Container clean/exchange $179.66 $8.98 $188.64
Replace lost or stolen container
WM
Replacement
Cost + 25%
N/A
WM
Replacement
Cost + 25%
Replace container. Damage not caused
by WM
WM
Replace/Repair
Cost + 25%
N/A
WM
Replace/Repai
r Cost + 25%
Overfull Bin (Snapshot) $83.95 $4.20 $88.15
Overafull Cart (Snapshot) $15.74 $0.79 $16.53
Account reactivation charge (from bad
pay) - no delivery $53.89 $2.69 $56.58
Account reactivation charge (from bad
pay) - w/ delivery $233.55 $11.68 $245.23
Late Payment charge
2.5% of balance
($5.00 min.
Chg.)
N/A
2.5% of
balance ($5.00
min. Chg.)
1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week
CITY OF GRIDLEY
Annual Rate Adjustment
Effective 3/5/2024 - 12/31/2024
Residential Rates
Adjustment
5.00%
Residential Carts
Service Current Rate Adjustment Proposed Rate
35 gallon - Senior $20.71 $1.04 $21.75
35 gallon $24.63 $1.23 $25.86
64 gallon $28.47 $1.42 $29.89
95 gallon $33.30 $1.67 $34.97
Add'l 35 gallon $12.31 $0.62 $12.93
Add'l 64 gallon $14.24 $0.71 $14.95
Add'l 90 gallon $16.65 $0.83 $17.48
Extra Pickup Charges
Service Current Rate Adjustment Proposed Rate
35 gallon $10.11 $0.51 $10.62
64 gallon $11.61 $0.58 $12.19
95 gallon $11.61 $0.58 $12.19
Bag $5.43 $0.27 $5.70
Ancillary Charges
Service Proposed Rate Adjustment Proposed Rate
Long walk service. Up to 100 feet $11.77 $0.59 $12.36
Long walk service. 101 to 200 feet $23.60 $1.18 $24.78
Overfull Container (Snapshot) $10.49 $0.52 $11.01
Contamination charge $12.59 $0.63 $13.22
Extra Pickup / Go Back Charge $53.89 $2.69 $56.58
Replace lost or stolen cart $101.80 $5.09 $106.89
Replace or Exchange damaged container
(not caused by WM) $101.80 $5.09 $106.89
Account reactivation charge (from bad pay) -
no cart delivery $53.89 $2.69 $56.58
Account reactivation charge (from bad pay) -
w/ cart delivery $95.83 $4.79 $100.62
Late Payment charge 2.5% of balance
($5.00 min. Chg.) N/A 2.5% of balance ($5.00 min. Chg.)
City Council Agenda Item #5
Staff Report
Date: March 4, 2024
To: Mayor and Council
From: Utility Director Ross Pippitt
Subject: Award of Contract to Commercial Pump and Mechanical (CPM) for Liberty Well Repairs
Recommendation
Staff respectfully requests City Council award the contract to administer repairs at the Liberty Well located at the Industrial Park in the amount of $45,803.65.
Background
At the beginning of January, Liberty Well encountered a critical breakdown, leading to a disruption in operations. Prompt action was taken by the staff to address the issue, and CPM was contacted to assess and remedy the situation. Upon inspection, it was determined that the motor, pump, and head shaft were all compromised, with the shaft being bent and broken, and the head suffering irreparable damage. CPM created a quote for the repair of Liberty Well. In addition to addressing the required replacement of the shaft and head, we requested a comprehensive examination of the motor and pump components. Given the urgency of the situation, we request it is deemed appropriate for CPM to undertake the entirety of the project.
Removal of Motor, Pump and Shaft Head - $6355.00
Inspection of Motor and Pump, Labor, and Replacement of Shaft Head - $39,448.65 Total is $45,803.65
Financial Impact
Public Works currently has allocated funds within the 23-24 CIP budget specifically designated for well equipment replacement, which are fully capable of covering the expenses associated with the repair of Liberty Well.
Compliance with City Council Strategic Plan or Budget Goals The City Council and City Staff are committed to providing effective leadership while providing quality cost-effective local government services.
Attachments
CPM’s quote
X Regular
Special
Closed
Emergency
City Council Agenda Item #6
Staff Report
Date: March 4, 2024
To: Mayor and Council
From: Utility Director Ross Pippitt
Subject: Concrete Removal on Electric Department Property at 57 E Gridley Rd.
Recommendation
Staff respectfully recommends that the City Council consider approving the removal of concrete slabs and concrete debris on the Gridley Electric Department property at 57 E Gridley Rd.
Background
The City’s Electric Dept. at 57 East Gridley Rd. currently has a few concrete slabs and concrete debris on the property. Recognizing the potential safety hazards, the Electric Dept. would like to address the areas of concern and move forward to complete the property clean up.
The City received three quotes for the concrete removal from Duke Sherwood, Kegan Waite and Scarberry Trucking. Each quote was bid by the hour.
Duke Sherwood – Mobilization of equipment $480, Excavator $344 Hr. Trucking $193 Hr.
Estimated hours 24 to 32 hours
Kegan Waite – Excavator $235 Hr. Trucking $160 Hr. Estimated hours 24 Scarberry Trucking – Excavator $250 Hr. Trucking $170 Hr. Estimated hours 30 Quotes attached
Staff recommends awarding the job to Kegan Waite.
Financial Impact
This is a 23/24 CIP Project
Compliance with City Council Strategic Plan or Budget Goals This recommendation is consistent with our ongoing effort to be responsive and transparent regarding all business transactions and financial matters.
X Regular
Special
Closed
Emergency