Cities Index.
Agenda

Gridley City Council
November 17, 2025

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Agenda
Meeting
November 17, 2025
Body
Gridley City Council
Pages
45
Original file
15.5 MB
Text extracted from the city's file for reading and search. Open the original on www.gridleyca.gov. That file is the official record.

GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 11-17-25 Page 1 of 2 “Our purpose isto 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 November 17, 2025, 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.

You may view using the following link, ID, and passcode:
https://us06web.zoom.us/j/86855535053?pwd=JfWk02wbc7RGGeSC92FuCL0HZgKbbW.1 Webinar ID: 868 5553 5053
Passcode: 702643
CALL TO ORDER - Mayor Farr

ROLL CALL
PLEDGE OF ALLEGIANCE – Vice Mayor Johnson
PROCLAMATION – None

INTRODUCTION OF NEW OR PROMOTED EMPLOYEES
• Ruth Moreno, Accounting Technician
• Tyler Farr, Administrative Assistant I
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. Supplemental Appropriation – Gridley Invitational Basketball Tournament City Council to formally approve the supplemental appropriation for the donation request previously approved
Recommended Action(s):

Gridley City Council – Regular Meeting Agenda
Monday, November 17, 2025; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 11-17-25 Page 2 of 2 a. Approve Resolution 2025-R-027: a Resolution of the City of Gridley authorizing the donation of $1,500 to the Gridley Invitational Basketball Tournament

ITEMS FOR CONSIDERATION

2. Proposition 218 Process – Waste Management
City Council to review and authorize City staff to initiate the proposition 218 notice and public hearing process for proposed solid waste rate adjustment by Waste Management Recommended Action(s):
a. Authorize City staff to initiate the Proposition 218 notification and public hearing process
COUNCIL COMMITTEE REPORTS - 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.

DEPARTMENT UPDATE REPORTS – Brief updates and reports on City services as it pertains to each department, if any.

POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):

Energy Efficiency Contract Review 12/1/2025
Randolph Lot Use Agreement - GUSD 12/1/2025
CLOSED SESSION –

3. Pursuant to Government Code 54957.6: Conference with Labor Negotiator, Elisa Arteaga, City Administrator, for discussion of progress of collective bargaining discussions with City Employee represented classes – IBEW

4. Closed session discussion with City Attorney pursuant to Government Code 54956.95 – Liability Claim presented by Kimber N. Lee vs. City of Gridley ADJOURNMENT – adjourning to a regular meeting on December 1, 2025 NOTE 1: POSTING OF AGENDA- This agenda was posted on the public bulletin board at City Hall at or before 6:00 p.m., November 14th, 2025. 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.

City Council Item #1
RESOLUTION NO. 2025-R-027

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRIDLEY AUTHORIZING A

SUPPLEMENTAL APPROPRIATION FOR A DONATION TO THE GRIDLEY INVITATIONAL

BASKETBALL TOURNAMENT
WHEREAS, the City of Gridley received a request from the organizers of the Gridley Invitational Basketball Tournament for financial support in the amount of $1,500; and WHEREAS, the City Council considered this request at its regular meeting on October 20, 2025, and approved the donation; and
WHEREAS, a supplemental appropriation is necessary to allocate funds for this purpose from the appropriate account; and
WHEREAS, the donation will be funded from Account No. 010-4010-55000.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gridley as follows:

1. The City Council hereby authorizes a supplemental appropriation in the amount of $1,500 from Account No. 010-4010-55000 for the purpose of donating funds to the Gridley Invitational Basketball Tournament.

2. The City Administrator or designee is authorized and directed to take all actions necessary to process the supplemental appropriation and ensure payment of the approved donation.

PASSED AND ADOPTED by the City Council of the City of Gridley on this 17 day of November, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Attest: ___________________________________ Approve: _________________________________ Elisa Arteaga, City Clerk Michael W. Farr, Mayor

City Council Agenda Item #2
Staff Report
Date: November 17, 2025
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Authorization to Initiate Proposition 218 Rate Adjustment Process for Solid Waste Services
Recommendation
Staff recommends that the City Council authorize initiation of the Proposition 218 notification and public hearing process for a proposed solid waste rate adjustment submitted by Waste Management, Background
The City of Gridley maintains a franchise agreement with Waste Management for the collection and disposal of solid waste and recycling services. Under the terms of the agreement, annual adjustments to customer rates are permitted based on changes to the Consumer Price Index (CPI) and other approved cost factors.

For the upcoming adjustment cycle, Waste Management has submitted a proposed rate increase of

6.62%, which exceeds the typical CPI-based adjustment. Their proposal reflects:
• 4.83% increase based on CPI; and
• 1.79% increase associated with disposal cost changes at the Neal Road Landfill, which experienced an increase of 15.50% effective July 1, 2025.

The landfill disposal rate adjustments are set by Butte County and passed through to the franchisee as eligible extraordinary adjustments under the terms of the contract.

Initiating the Prop 218 process will allow the City to formally notify the public of the proposed rate adjustment and provide opportunity for comment and protest as required by law. This step is necessary before any solid waste rate increases may be considered or adopted.

Waste Management has provided a proposed rate schedule. These documents will be included as attachments to the Prop 218 notice and made available for public review.

Financial Impact
The direct financial impacts of initiating the Prop 218 process are limited to the costs associated with preparing and mailing the required notices, including postage. These costs will be determined once the notice materials are finalized.

Attachments
Waste Management Proposed Rate Schedule (6.62% Adjustment) Current Waste Management Agreement
X Regular
Special
Closed
Emergency

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Residential Rates
Adjustment

6.62%
Residential Carts
Service Current Rate Adjustment Rate
35 gallon - Senior $23.22 $1.54 $24.76
35 gallon $27.61 $1.83 $29.44
64 gallon $31.91 $2.11 $34.02
95 gallon $37.33 $2.47 $39.80
Add'l 35 gallon $13.80 $0.91 $14.71
Add'l 64 gallon $15.96 $1.06 $17.02
Add'l 90 gallon $18.66 $1.24 $19.90
Extra Pickup Charges
Service Current Rate Adjustment Rate
35 gallon $11.34 $0.75 $12.09
64 gallon $13.01 $0.86 $13.87
95 gallon $13.01 $0.86 $13.87
Bag $6.09 $0.40 $6.49
Ancillary Charges
Service Current Rate Adjustment Rate
Long walk service. Up to 100 feet $13.19 $0.87 $14.06
Long walk service. 101 to 200 feet $26.45 $1.75 $28.20
Overfull Container (Snapshot) $11.75 $0.78 $12.53
Contamination charge $14.11 $0.93 $15.04
Extra Pickup / Go Back Charge $60.40 $4.00 $64.40
Replace lost or stolen cart $114.11 $7.56 $121.67
Replace or Exchange damaged container
(not caused by WM) $114.11 $7.56 $121.67
Account reactivation charge (from bad pay) -
no cart delivery $60.40 $4.00 $64.40
Account reactivation charge (from bad pay) -
w/ cart delivery $107.42 $7.11 $114.53
Late Payment charge 2.5% of balance
($5.00 min. Chg.) N/A 2.5% of balance ($5.00 min. Chg.)

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Commercial Rates
Adjustment

6.62%
Commercial Carts Rate
35 gallon $39.48
64 gallon $55.63
95 gallon $96.22
Add'l 35 gallon $37.99
Add'l 64 gallon $55.63
Add'l 90 gallon $96.22
Commercial Bin Rates - Quantity 1 Rate Rate Rate Rate Rate Rate 1 Yard $172.16 $277.76 $383.42 $489.04 $594.66 $757.73

1.5 Yard $210.99 $343.19 $474.02 $606.25 $737.09 $938.97 2 Yard $277.02 $451.29 $625.52 $799.78 $972.55 $1,240.53 3 Yard $343.08 $559.30 $775.55 $993.28 $1,209.52 $1,543.57 4 Yard $407.68 $667.35 $927.13 $1,186.71 $1,446.39 $1,845.09 5 Yard $473.78 $775.44 $1,078.54 $1,380.24 $1,681.93 $2,146.66 6 Yard $539.84 $884.92 $1,228.62 $1,573.76 $1,918.86 $2,448.22 8 Yard $670.49 $1,101.04 $1,530.17 $1,960.76 $2,391.29 $3,052.77 Commercial Bin Rates - Quantity 2 Rate Rate Rate Rate Rate Rate 1 Yard $335.86 $547.06 $758.30 $969.54 $1,182.27 $1,506.90

1.5 Yard $413.38 $676.37 $939.44 $1,202.53 $1,465.63 $1,869.42 2 Yard $545.47 $894.02 $1,241.03 $1,589.59 $1,938.01 $2,473.98 3 Yard $676.18 $1,110.10 $1,544.04 $1,976.61 $2,410.54 $3,077.08 4 Yard $808.32 $1,326.15 $1,845.74 $2,363.50 $2,882.78 $3,681.65 5 Yard $939.06 $1,543.80 $2,147.14 $2,751.94 $3,355.40 $4,284.74 6 Yard $1,071.11 $1,759.84 $2,448.69 $3,139.00 $3,827.79 $4,889.37 8 Yard $1,332.42 $2,193.55 $3,053.22 $3,912.93 $4,772.60 $6,097.02 Commercial Bin Rates - Quantity 3 Rate Rate Rate Rate Rate Rate 1 Yard $498.05 $816.30 $1,133.22 $1,451.51 $1,768.40 $2,256.09

1.5 Yard $617.26 $1,011.03 $1,404.94 $1,798.78 $2,194.18 $2,799.84 2 Yard $813.94 $1,335.31 $1,857.99 $2,380.83 $2,902.01 $3,705.98 3 Yard $1,010.73 $1,660.88 $2,311.03 $2,961.31 $3,611.54 $4,612.09 4 Yard $1,207.45 $1,984.95 $2,764.33 $3,541.69 $4,319.26 $5,516.76 5 Yard $1,404.26 $2,310.71 $3,217.18 $4,122.18 $5,028.79 $6,422.89 6 Yard $1,600.96 $2,634.81 $3,668.76 $4,704.23 $5,738.15 $7,329.02 8 Yard $1,994.39 $3,284.61 $4,574.86 $5,865.19 $7,155.33 $9,139.83 Multi-Unit Residential Bin Rates Rate Rate Rate Rate Rate Rate 1 Yard $152.84 $245.93 $339.01 $432.04 $525.11 $664.21

1.5 Yard $186.95 $302.14 $417.38 $534.01 $649.23 $823.17 2 Yard $245.22 $397.37 $550.96 $704.56 $856.69 $1,087.63 3 Yard $302.04 $492.57 $683.11 $873.65 $1,064.14 $1,352.10 4 Yard $360.30 $587.78 $816.71 $1,044.12 $1,273.01 $1,615.05 5 Yard $417.16 $682.98 $948.78 $1,214.66 $1,480.49 $1,879.55 6 Yard $475.42 $778.18 $1,082.40 $1,385.18 $1,687.95 $2,143.98 8 Yard $590.49 $968.57 $1,346.64 $1,726.15 $2,104.25 $2,672.89 Commercial Recycling Rate
64 Gallon - EOW $35.11
2 Yard - 1xWeek $104.09
3 Yard - 1xWeek $110.37
4 Yard - 1xWeek $119.14
6 Yard - 1xWeek $135.45
Extra Pickup Charges Rate
35 gallon $12.42
64 gallon $14.27
95 gallon $14.27
Bag $6.63
1 Yard $75.15

1.5 Yard $89.42
2 Yard $111.37
3 Yard $146.49
4 Yard $173.19
5 yard $201.73
6 Yard $230.28
7 Yard $258.86
8 Yard $287.33
Ancillary Charges Rate
Extra pickup non-service day Trip Charge $143.12
Contamination Bin $68.97
Contamination Cart $21.32
Lock bar and lock - one time installation
charge $193.22
Lock service charge $1.42
Container clean/exchange $214.72
Replace lost or stolen container
WM
Replacement
Cost + 25%
Replace container. Damage not caused
by WM
WM
Replace/Repair
Cost + 25%
Overfull Bin (Snapshot) $100.33
Overafull Cart (Snapshot) $18.82
Account reactivation charge (from bad
pay) - no delivery $64.40
Account reactivation charge (from bad
pay) - w/ delivery $279.13
Late Payment charge

2.5% of balance
($5.00 min.

Chg.)
6 x Week
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
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
1 x Week 2 x Week 3 x Week
Adjustment

6.62%
Debris Box - Municipal Solid
Waste
Service Current Rate Adjustment Rate
20 Yard - MSW $531.04 $35.17 $566.21
30 Yard - MSW $601.21 $39.82 $641.03
40 Yard - MSW $676.35 $44.79 $721.14
20 Yard - Tires $1,062.12 $70.34 $1,132.46
30 Yard - Tires $1,200.71 $79.52 $1,280.23
40 Yard - Tires $1,549.75 $102.64 $1,652.39
Debris Box - Clean Recyclable
Materials
Service Current Rate Adjustment Rate
20 Yard - Wood or Metal $324.03 $21.46 $345.49
30 Yard - Wood or Metal $365.73 $24.22 $389.95
40 Yard - Wood or Metal $402.47 $26.66 $429.13
20 Yard - Masonry $324.03 $21.46 $345.49
10 Yard - Concrete $345.69 $22.89 $368.58
Ancillary Fees
Service Current Rate Adjustment Rate
Demurrage - Per Day $18.68 $1.24 $19.92
Waste Trip Charge $69.56 $4.61 $74.17
Compactor - Per Yard $33.37 $2.21 $35.58
Delivery $201.38 $13.34 $214.72
Exchange $201.38 $13.34 $214.72
Trip Charge $201.38 $13.34 $214.72
Relocate $201.38 $13.34 $214.72
Removal $201.38 $13.34 $214.72
Excessive Net Weight $939.73 $62.24 $1,001.97
Replace lost or stolen Roll Off
Box
WM
Replacement
Cost + 25%
N/A
WM
Replacement
Cost + 25%
Replace Roll Off Box. Damage
not caused by WM
WM
Replace/Repair
Cost + 25%
N/A
WM
Replace/Repair
Cost + 25%
Account reactivation charge
(from bad pay) - no delivery $59.59 $3.95 $63.54
Account reactivation charge
(from bad pay) - w/ delivery $198.65 $13.16 $211.81
Late Payment charge

2.5% of
balance ($5.00
min. Chg.)
N/A

2.5% of
balance ($5.00
min. Chg.)
Debris Box Rates
Effective 1/1/2026
Annual Rate Adjustment

CITY OF GRIDLEY

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Ord Ranch Transfer Station
Adjustment

6.62%
ORD Ranch Road Transfer Station Rate Schedule
Service Current
Rate
Rounded
Current
Rate
Increase Rate
Rounded Rate
(to nearest
dollar)
Minimum Charge $15.29 $15.00 $1.01 $16.30 $16.00
Up to 2 barrels $15.29 $15.00 $1.01 $16.30 $16.00
Up to 3 cans $15.29 $15.00 $1.01 $16.30 $16.00
Any size pickup $32.09 $32.00 $2.13 $34.22 $34.00
Bulky Items (each) $26.40 $26.00 $1.75 $28.15 $28.00
Appliances with Freon $57.68 $58.00 $3.82 $61.50 $62.00 Appliances without Freon $26.40 $26.00 $1.75 $28.15 $28.00 CRT's / Televisions up to 31" * $0.00 $0.00 $0.00 $0.00 $0.00 Wire (per approx yard) $22.82 $23.00 $1.51 $24.33 $24.00 Car Tires $7.80 $8.00 $0.52 $8.32 $8.00
Truck Tires $22.82 $23.00 $1.51 $24.33 $24.00
*(for Televisions over 32" call City offices for appropriate disposal)

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
CPI Change Calculation
CPI for All Urban Consumers (CPI-U) September 2024 Index 305.117 September 2025 Index 319.867
Series Id: CUUR0000SEHG Difference 14.75
Index Percentage Change 4.83%
Series Title: Previous Year Carry-Over 0.00%
CPI Change with Carry-Over 4.83%
Area: U.S. city average Applied 2% Floor and 5% Cap 4.83% Item: Water and sewer and trash collection services
Base Period: DECEMBER 1997=100 Roll Over to be Applied Next Year 0.00% Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2020 248.846 249.751 250.359 250.673 250.921 251.435 252.401 253.974 254.266 254.781 255.65 256.456 252.459 2021 257.722 258.763 259.204 259.581 259.542 260.4 261.706 262.81 263.747 264.278 264.58 265.365 261.475 2022 268.128 269.521 269.621 270.419 270.844 271.925 273.097 274.984 276.759 276.892 277.824 278.464 273.207 2023 281.461 283.663 284.166 285.052 286.322 287.457 289.005 290.975 291.279 291.683 292.694 292.915 288.056 2024 297.079 298.751 299.183 300.178 299.987 300.652 302.106 303.311 305.117 306.336 308.015 308.234 302.412 2025 310.239 313.344 313.925 314.82 315.585 316.851 318.244 319.403 319.867 Not Seasonally Adjusted
Water and sewer and trash collection services in U.S. city average, all urban consumers, not seasonally adjusted

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Proposed Extraordinary Rate Adjustment for Neal Road Landfill Disposal Change
Rate Before 7/1/2025 $48.64
New Rate Effective 7/1/2025 $56.18
Rate Change $7.54
Rate Change % 15.50%
Disposal minus CPI Change
CPI 4.83%
Disposal Increase minus CPI Increase 10.67%
Disposal Allocation
MSW Disposal Cost $1,355,263
Total Operations Costs $8,079,651
EI Disposal Adjustment 16.77%
Rate Adjustment
E.I. Disposal Rate Change (Applied to all rates in
addition to existing PI) 1.79%

Page 1 of 45 ends

In consideration ofthe mutual covenants in this Agreement, as amended and restated, and intending to be legally bound, the parties agree as follows:

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

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 ofthis Agreement.

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

1.3. Bins. Bins shall mean those containers provided by the Company for Commercial Customers and Multiple-Family Dwellings. The Bins are oftwo 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-offBins (also known as a Debris Box or Drop Box) (which are usually much larger in size).

1. DEFINITIONS. For purposes ofthis Agreement the following words or phrases shall have the following meanings.

THIS AMENDED AND RESTATED AGREEMENT (this “Agreement”) is made and entered into effective as ofMArMl , 202^f between the City of Gridley (the “City”), and USA Waste ofCalifornia 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.

1.5. City Representative. City Representative means the City Administrator, or designee.

1.12. 1.13.

Page 2 ends

Compactor. Compactor means a compacting unit that loads a detachable or nondetachable Bin or Debris Box. The detachable or non-dctachable 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.

C ompany Service Fee. Company Service Fee means the compensation provided to the Company for services performed pursuant to this Agreement.

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.

1.8. 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.

1.6. Cart. Cart means an industry standard receptacle for disposal of Franchise Materials, in a range ofsizes 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 ofthe 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. 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.

1.14. 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.

1.11. 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.

1.10. Commercial Recycling. Commercial Recycling means the collection, processing and marketing ofthose Recyclable Materials that are collected from Commercial Customers under this Franchise on an exclusive basis.

1.15. 1.16.

1.17. 1.18.

1.19. Discretionary Adjustment. Discretionary Adjustment is defined in Section 6.5.

1.20. Disposal Fees. Disposal Fees shall mean the charges imposed by the Disposal Disposal Site. Disposal Site has the meaning provided in PRC Section 40122 or

1.23.

Page 3 of 45 ends

Customer. Customer means an ifidividual 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.

Curb or Curbside. Curb or Curbside shall mean that pail ofthe homeowner's property, within five feet ofthe 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.

Effective Date. Effective Date means January 1,2024, the date that Franchise Services shall commence under this Agreement, as amended.

CPI Adjustment. CPI Adjustment means the annual Service Rates adjustment as specified in Section 6.2.

1.21. Site.

Debris Box/Temporary Bins. Debris Box means a receptacle for Solid Waste and C&D having a capacity oftwenty (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 rolloffbox 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.

Disposal. Disposal has the meaning provided in PRC Section 40120.1 or successor laws and regulations as may be amended from time to time.

1.22. successor laws and regulations as may be amended from time to time.

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.

1.30. Fuel Cost Adjustment. Fuel Cost Adjustment is defined in Section 6.3.

1.31. 1.32.

Page 4 ends

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.

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.

1.25. 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.

1.28. 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 ofin Class III landfills. It is the intention ofthe Parties to maximize the scope ofthe 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 ofthe 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.

1.33. Green W aste Processing Facility. Green Waste Processing Facility means the facility(ies) used by the Company for handling, processing, and preparing collected Green Waste for marketing.

1.27. 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 ofthis Agreement.

1.26. Franchise. Franchise means the rights granted to the Company under the terms and conditions ofthis Agreement.

1.34. Gross Revenues. Gross Revenues has the meaning provided in Section 3.1

1.35. 1.37.

1.40. 1.42. Parties. Parties mean the City and the Company.

1.43. PRC. PRC has the meaning provided in Section 1.1.

Private Drive(s). Private Drive(s) shall mean a privately owned or maintained

1.45.

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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.

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.

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.

1.44. way.

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.

1.39. 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.

1.38. 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.

1.36. Household Hazardous Waste (or HHW). I lousehold I lazardous 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.

1.41. 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 ofthe assessor of Nevada County or as may be indicated by documents recorded in the Nevada County Clerk-Recorder's Office.

1.46. 1.47. Public Street(s). Public Strect(s) shall mean a public way used for public travel.

Recyclable Construction and Demolition Debris or Recyclable C&D.

1.50. 1.53.

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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.

Recycling Program. Recycling Program shall mean an effort by the City to offer convenient and affordable recycling opportunities to all residents of City.

Processing or Process. Processing or Process shall mean treatment, sorting, or other activities intended to improve the market value of a Recyclable.

1.48. “Recyclable Construction and Demolition Debris” or “Recyclable C&D” means Construction and Demolition Debris or C&D that is disposed ofin a Cart or Debris Box or other receptacle that contains no more than 5% non-Recyclables.

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.

1.49. 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.

1.51. 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 ofraw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. As ofthe 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.

1.54. 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.

1.56. 1.58.

1.59. 1.60.

1.61. 1.62.

1.63.

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Signature Date. Signature Date means the date of execution ofthis Agreement by both Parties.

Single-Family Residence(s). Single-Family Residencc(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.

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/busincss/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 ofthis Agreement.

Service Area. Service Area shall mean the jurisdictional boundary ofthe City including all areas hereafter annexed or otherwise added to the territorial limits ofthe City.

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.

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.

Residential Recycling. Residential Recycling means the collection, processing and marketing ofthose 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.

1.64. 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 ofwaste 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. 1.66.

1.67. State. State means the State of California.

1.68. Ton. Ton means a “short ton” of 2.000 pounds.

Transfer Station Operations/Transfer Station Operation Services. Transfer Transport. Transport means the hauling of Franchise Materials to a Disposal Uncontrollable Circumstances. Uncontrollable Circumstances are any acts of 2 GRANT OF EXCLUSIVE AGREEMENT.

2.1. SCOPE OF EXCLUSIVE FRANCHISE.

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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.

1.70. Site.

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.

1.69. Station Operations/Transfer Station Operation Services means all ofthe services associated with the operation ofthe Ord Ranch Road Transfer Station, as provided in this Agreement.

1.71. God, such as landslides, lightning, fires, storms, Hoods, 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 ofthe 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.

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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 perfomi all ofits 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 ofthis Agreement.

2.3.1. Compactors for Rccyclables. 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.

2.1.3. 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.

2.1.1. 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 Recyclablcs Processing Facility, unless otherwise exempt from Collection pursuant to the terms and conditions of Section 2.3 ofthis Agreement. Participation in the Company’s Solid Waste, Recycling and Green Waste programs shall be mandatory for Residential and Commercial Customers.

2.3. EXCEPTIONS TO FRANCHISE. The following services and materials are expressly excluded from this Agreement. However, the granting ofthis Franchise shall not preclude an Owner or Customer from contracting for the categories ofservices 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.

2.1.2. The Company shall have the exclusive right and responsibility for the operation of the Ord Ranch Road Transfer Station, in accordance with the provisions ofthis Agreement, for the term ofthis Agreement and any extensions thereof.

2.3.2. Self-Hauling. Self-I laul 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.

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2.4. TERM OF AGREEMENT. The initial tenn ofthis 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.

2.3.8. 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.

2.5. TITLE TO FRANCHISE MATERIALS. It is expressly understood that all Franchise Materials collected under this Franchise shall remain the property ofthe resident or commercial Owner until such time as they arc 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.

2.3.3. Incidental Hauling. Materials which would otherwise constitute Franchise Materials that arc removed from a premise by a company as an incidental part ot 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 docs 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.

2.3.7. 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.

2.3.6. 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 oftheir 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.

2.3.5. 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 6 ANTI-SCAVENGING ENFORCEMENT; UNAUTHORIZED COMPACTION.

The City will cooperate with the Company in the Company’s enforcement ofthe 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 ofthis Agreement or

3. FRANCHISE FEE.
4 SERVICES OF COMPANY

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3.2. UNDER AND OVER PAYMENTS. If the Company fails to pay the entire amount of compensation clue the City through error or otherwise, the difference due the City shall be paid by the Company within thirty (30) days from discovery ofthe error or determination ofthe correct amount. Any overpayment to the City through error or otherwise shall be offset against the next payment due from the Company. the anti-scavenging provisions of PRC Section 41950 (which provides for treble damages, as measured by the value ofthe material removed, or a civil penalty of not more than S2.000.00. whichever is greater, for each unauthorized removal, in accordance with PRC Section 41953). IfCity 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, stafftime 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.

3.3. FINANCIAL REVIEW. The relevant books and records ofthe Company shall be subject to review and inspection for the purpose ofreviewing billing operations, accounts receivable and customer service, by either party, its auditors or other agents, at any reasonable time upon reasonable notice.

3.1. CITY FRANCHISE FEE. As ofthe Effective Date ofthis 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 ofthe Ord Ranch Road Transfer Station service and without subtracting the other cost of doing business, on or after the Effective Date ofthis 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 ofrecycled 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 ofthis 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 ofthe Company's cash receipts from Gross Revenues after the Effective Date ofthis 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 ofthe quarterly remittance.

4.3. SOLID WASTE COLLECTION.

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4.1. SB 1383. City has received a low-population waiver from CaIRccycle 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.

4.3.2. 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:

4.3.1. 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 ofthe Bins and the frequency oftheir 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 ofsuch Bins; provided, however.

Company shall provide in its Bin rental contracts for a Bin cleaning service to be performed at the request ofthe Customer for a fee specified in such contract. The initial delivery ofsuch Bins and Carts shall occur as provided in accordance with the implementation schedule agreed upon by the Parties.

4.2. SERVICES PROVIDED BY COMPANY. The Company shall, in accordance with the terms ofthis 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 ofthis Agreement will be provided upon terms and pricing determined by Company.

4.3.3.I.

4.3.3.2. Provision of debris box service as directed by City; and,

4.3.3.3.

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4.3.4. Pennanent 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 oftraffic 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.

At the option ofthe 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.

4.3.6. Hours ofCollection. Collection Service of all Bins and Cails 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 ofthe City Council.

Collection of Solid Waste, Recyclable Materials and Green Waste from City facilities and parks;
Review of plans for land use or property developments with regard to Solid Waste service issues.

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.

4.3.7. 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 arc being properly disposed or diverted according to applicable law. Waste Management will work with each complex to customize the appropriate level ofservice. Multiple-Family Dwellings will have the option to

4.4 RECYCLING.

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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.
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.

4.3.10. 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 ofthe 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 infonn Residential Customers within the Service Area, at least two weeks in advance ofthe clean-up event, ofthe date, time, location and other information pertinent to the clean-up event.

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

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 proofto 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 ofservice. 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 ofthe 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 ofthe Customer's or City's request.

Customers will be able to make a change in Cart size or number ofCarts 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.

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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.

Company will only provide Recycling services to Residential Customers that receive and pay for Solid Waste sendees.

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 ofthe 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.

4.4.6. 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.

4.4.5. 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 ofsign-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 ofthe City.

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 ofthe 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.

4.5. GREEN WASTE

4.6. OTHER COMPANY REQUIREMENTS.

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4.5.4. Additional Green Waste Cails. During leafseason (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 Cails.

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 ofthe State ofCalifornia, shall be kept clean and in good repair, shall be.

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 Cail. Company will provide one additional Green Waste Cail upon the request ofthe Customer, and service such Cail at no extra cost.

4.5.1. Green Waste Program. Residential Customers and Commercial Customers will participate in a Green Waste Program.

4.4.S. Materials to be Recycled. Company shall collect and Recycle all ofthe materials listed in Exhibit 1.

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.

4.5.3. 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 ofthe 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 ofCarts 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.

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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 fonnat) identifying the schedule for Solid Waste, Recyclables, and Green Waste Collection 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.

4.6.3. 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.

4.6.2. Collection on Holidays. If the day ofCollection 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.

4.6.5. Manner ofCollection. 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 ofwhere they were originally placed before collection.

4.6.4. Employees. Company shall exercise reasonable care to hire responsible Employees, to supervise the work ofsuch 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.

4.6.1.1. 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) vehiclc(s) or the future acquisition, hiring or use ofZEVs or NZEVs under Applicable Law, including without limitation Sections 2015 et seq. of Title 13 ofthe California Code of Regulations.

Should such existing Applicable Law apply to any Company's vehicles used in the provision ofservices under this Agreement during the Tenn, 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 ofservices under this Agreement.

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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. for that calendar year. The calendar shall provide adequate detail for customers to identify specific service days for specific service areas. Hard copies ofthe calendars shall be made available to Customers upon request.

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 ofthe 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

4.6.7. Code Revisions. The City shall use reasonable efforts to update the municipal code to be consistent with the terms ofthis Agreement and to reflect new program requirements ifrequested by the Company.

4.6.8.3. Missed Pickups. In the event of a missed pickup, the Company shall complete the pickup the same day ifthe complaint is received by 12:00 p.m. or by 12:00 p.m. the following day ifthe complaint is received after 12:00 p.m.

4.6.8.2. Complaint Response. The Company shall respond to all complaints, other than missed pickups, within twenty-four (24) hours ifthe complaint is received during a weekday or by the next business day ifthe complaint is received on a Saturday, Sunday or a holiday.

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.

4.6.8.1. 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 ofresolution. Such log shall be kept so that representatives ofthe City, upon request, may conveniently inspect it.

5. TRANSFER STATION OPERATION SERVICES.

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City’s responsibilities. City shall be responsible for ordinary maintenance ofthe 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 ofthis agreement.

Company shall not be responsible for any repairs to buildings, grounds and appurtenances on the premises during the term ofthis 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 ofthe 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 City shall have the right to enter and inspect the Transfer Station during normal operating hours.

5.1. TRANSFER STATION OPERATIONS. The Company shall, with the consent ofthe 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 ofthe City and surrounding areas of Butte County (including the area ofthe City and adjacent territory).

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.

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 ofthe property, buildings and appurtenances located at the Transfer Station.
terms ofthis 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 pennit 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.

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5.1.1. Transfer Operations. Transfer operations to be perfonned by the Company inelude, but are not necessarily limited to: the screening ofincoming 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.

5.1.4. 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 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 ofthese materials.

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 pail ofthis 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 ofthat dwelling unit to dispose at no cost of up to two (2) cubic yards ofrefuse at the Transfer Station during the term ofthis 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.

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5.2. MATERIALS TO BE TRANSFERRED AND DISPOSED OF AT THE TRANSFER STATION.

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 ifthe 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 ofits intention to do so.

5.5. COMPANY AND OTHER COMMERCIAL HAULER USE OF TRANSFER STATION.

5.2.1. The Company shall accept and transfer all self-hauled Solid Waste within the jurisdiction ofthe City and in the Gridley-Biggs County areas and delivered to the Transfer Station.

5.1.5. Drop-Off Recycling Center. As part ofthe Transfer Station Operation Services the Company agrees to provide and maintain a drop-offrecycling 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 I & 2), and newspaper, mixed paper (including but not limited to magazines, junk mail, brown paper bags, and white and colored paper), and corrugated cardboard.
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 S35 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 ofthis 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.

5.4. 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.

5.2.2. 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 ofthe City.

6. SERVICE RATES

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5.6. APPLICATION AND PERMIT. Attached hereto and made a pail hereof is a copy of the Solid Waste Facilities Permit for the Ord Ranch Road Transfer Station (Attachment A). The requirements and the provisions ofsaid Pennit are incorporated herein and made a part ofthis Agreement, and Company agrees to abide in all respects by the requirements ofsaid Permit.

5.8. INSPECTIONS. To ensure that the regulations and laws for the operation ofthe Ord Ranch Road Transfer Station are met, the site and operation may be inspected during the term ofthis Agreement by a representative ofthe City, State or other authorized agency to assure compliance.

6.1. AMOUNT OF SERVICE RATES. As ofthe Effective Date ofthis Agreement, Company may not charge Service Rates in excess ofthose set forth in Exhibit “2." The Company may establish charges for Special Services that arc not specified in Exhibit 2.

5.7. AGREEMENT WITH COUNTY. Attached hereto (Attachment B) and made a part hereof is a copy ofthe “Agreement Between the County of Butte and the City ofGridley for the City's Use of Certain Premises” (City/County Transfer Station Agreement). The requirements and the provisions ofsaid City/County Transfer Station Agreement are incorporated herein and made a part ofthis Agreement, and Company agrees to abide in all respects by the requirements ofsaid City/County Transfer Station Agreement. The City shall make a good faith effort to extend the term ofthe City/County Transfer Station Agreement for an additional period ending no earlier than eight years following the end ofthe 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.

5.5.2. 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.

5.5.1. Company Use ofTransfer 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 ofthis 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 arc 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 ofthe Ord Ranch Road Transfer Station. Approval of any such proposed changes shall be entirely at the discretion ofthe City, and shall be provided to the Company in writing.

6.3. FUEL COST ADJUSTMENT
(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:

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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:
“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.

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%) ofthe 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 ofthe annual percentage change in the CPI for September ofthe current year as compared to September ofthe 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.

6.3.1. 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 ofthe services hereunder in the manner provided below.

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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.
“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.
“New Rate" means the new rate calculated pursuant to the preceding formula that will replace the Old Rate.

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 ofCompany, be further adjusted to fully capture increased expenses and lost revenue associated with performance ofthe services hereunder due to any one or more ofthe following causes:
“Old Rate" means each ofthe rates for services as they may have been previously adjusted or amended.

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 ofthe Effective Date, as increased thereafter pursuant to this Article 6 or other provisions ofthis Agreement. Adjustments for fuel costs shall only be made to increase or reduce (but not below zero) prior adjustments for fuel costs.

6.5.1. Uncontrollable Circumstance;

6.5.2. Changes in Applicable Law that is effective after the Effective Date ofthis Agreement;
“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.

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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.

6.6.2. Non-Residential. All non-residential Customers shall be billed monthly in advance, except for roll-offservices, 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.

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 ofthe 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.

Ifsuch 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 infonnation supplied by Company. The City shall approve all properly calculated Service Rates adjustments within ninety (90) days ofCompany’s request, and the adjusted Service Rates shall be deemed to take effect as of the date of Company’s request.

In addition, ifthe 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.

6.6.1. 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 ofthe Company. Payment shall be due within 30-days ofthe 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.

6.5.3. 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 ofthe Company.

6.5.5. Any other extraordinary circumstances or causes or reasons that are not within the reasonable control of Company.

6.7. CONTAMINATION AND OVERAGE.

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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 ofJune 1st. Company shall provide the City a list ofthe 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 ofthe 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 ofthose payments from the property Owner and within thirty (30) days ofreceipt by the City.

6.6.4. Special Services. Company shall also receive fees for performance ofspecial services as agreed upon in separate contracts between Company and each Customer requesting such special service. Company shall provide the City with notice ofsuch special services and the fees charged.

6.6.3. Special Assessment Procedure. During each quarterly billing period, Company shall determine which Customers (SFD, MFD and Commercial) arc ninety (90) days or more delinquent in payment oftheir 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.

6.7.1.3. Violation Notice: An electronic notice to the customer (ifsuch contact information is provided by customer) with the following information: (a) Date ofthe offense; (b) description ofthe offense; (c) if available, a photograph or video (or link to photograph or video); (d) description ofthe materials that are appropriate for collection in said container and a link to view online with

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 ofthe container, in bags or otherwise.

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.

6.7.2. The following shall apply regarding occurrences ofContamination and Overage:

6.7.2.1. Contamination.

6.7.2.1.1. 6.7.2.I.2.

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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.

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.
educational materials; and (e) website to obtain additional information and/or receive responses to questions the customer may have.

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. Ifthere 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” ifthe total weight ofthe container and contents exceeds two times the volume capacity ofsaid 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 ofitems in this Agreement, but limited to information directly attributable to the 8 1 INDEMNIFICATION OF THE CITY.

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Collection Services provided under this Agreement. The frequency and content ofthe reports shall be determined by agreement ofthe City and the Company.

8.2. INSURANCE SCOPE AND LIMITS. The Company shall procure and maintain for the duration ofthe contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance ofthe 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 ofthe Company shall not be considered a waiver by City of any claim or liabilities it may have against the Company.

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 orjudicial), 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 ofthe Company, its agents, employees, affiliates and subcontractors, in perfonning or failing to perform this Agreement; (ii) the failure ofthe Company, its agents, employees, affiliates and subcontractors to comply in all respects with the provisions ofthis 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 ofthe 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 ofthe City, its officers, employees, agents or volunteers.

8.2.1. Minimum Limits ofInsurance. The Company shall maintain insurance coverage ofthe following type and with limits no less than:
8 INDEMNITY, INSURANCE

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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 ofthis 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 oftermination.

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 ofthe Company and shall be the sole responsibility ofthe Company.

8.2.3. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions:

8.2.3.2. Worker’s Compensation and Employers Liability Coverage. The Insurance company shall agree to waive all rights ofsubrogation against the City, its officers, officials, employees and volunteers for losses arising from work performed by the Grantee for the City.

8.2.3.4. Verification of Coverage. The Company shall furnish the City with certificates ofinsurance 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.

8.2.3.3. 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.

8.2.3.1. 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 ofthe Company; and with respect to liability arising out of work or operations performed by or on behalf ofthe Company including materials, parts or equipment furnished in connection with such work or operations.

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.

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9.1. EVENTS OF DEFAULT. Each ofthe 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:

9.1.2. 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 oftrust), custodian, sequestrator (or similar official) ofthe company for a pail ofthe Company’s operating assets or any substantial pail ofthe Company’s property, or shall make any general assignment for the benefit ofthe Company’s creditors, or shall fail generally to pay the Company’s debts as they become due.

9.2. CURE RIGHTS. Notwithstanding any other provision ofthe Agreement to the contrary, the City shall provide the Company with reasonable notice of and a reasonable opportunity to cure any breach ofthis 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 ofthe breach or default, whether 8 4. COMPLIANCE WITH APPLICABLE LAW AND MUNICIPAL CODE. Company agrees that it will comply with all Applicable Law and those provisions ofthe 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 ofthis Agreement without regard to this Section.

9.1.3. Court order or decree. Any court having jurisdiction shall enter a decree or order for relief in respect ofthe 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) ofthe Company or for any part ofthe Company's operating equipment or assets, or order the winding up or liquidation ofthe affairs ofthe Company.

9.1.1. Failure to correct breach. Failure to correct any breach ofthis Agreement within the applicable cure period (as defined below).
9 DEFAULT; DISPUTE RESOLUTION.

9.5. EXCUSE FROM PERFORMANCE

9.6. DISPUTE RESOLUTION.

Page 31 of 45 ends

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 ofthe Agreement shall not constitute an election ofremedies. Instead, all remedies provided for in this Agreement shall be in addition to any and all other non-duplicativc legal and equitable rights and remedies which the City may have under law or as otherwise provided in this Agreement.

9.2.2. Within thirty (30) days of giving or receiving notice of default; provided that if the nature ofthe 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. discovered by the Company or through notice from the City. Upon becoming cognizant ofthe default, the Company shall proceed to cure such default as follows:

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 ofthe 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 ofthis 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 ofsuch cause, give the other party notice ofthe 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.

9.2.1. Immediately, ifthe default is such that in the determination ofthe City, the health, safety, or welfare ofthe public is endangered thereby; or

9.6.2. Dispute Resolution Procedures.

9.6.2.1.1. 9.6.2.1.3.

Page 32 of 45 ends

Notification. When a party believes there is a dispute relating to the Agreement, the party will give the other party written notice ofthe dispute.

Confidentiality. All negotiations are confidential and shall be treated as compromise and settlement negotiations under the State of California Rules of Evidence.

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. 9.6.3. 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 ofthe State ofCalifornia for equitable relief, including temporary restraining orders, injunctions, attachments and conservation orders in appropriate circumstances.

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 ofthe Company and the City Administrator (the “Senior Executives").

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 ofthe 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 ofsuch intention and may also be accompanied by an attorney.

9.6.2.3. Litigation. If a dispute has not been resolved to the satisfaction ofthe parties within sixty (60) days after the written submission to the City Council, then either party may initiate litigation in the courts ofthe State ofCalifornia, which shall have exclusive jurisdiction over such disputes. The exclusive venue for such disputes shall be Butte County.

9.6.2.2. City Council. Ifthe dispute has not been resolved within thirty (30) days after the date ofthe notice of a dispute, or ifthe 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 ofsuch request.

10. ASSIGNMENT

10.1.

Page 33 of 45 ends

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 ofthis Agreement. I lowever. 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.
“Assignment” means: (i) a sale, exchange or other transfer ofthis Agreement, the Company's rights hereunder, or substantially all ofthe 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 ofthe outstanding common stock ofthe 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 ofits shareholders is a party which results in a change of ownership or control ofthirty (30) percent or more ofthe value or voting rights in the stock ofthe Company; and (iv) any combination ofthe 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 ofsuch 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 ofthis Agreement in 16 CFR §801.1 (a)(3)). For purposes ofthis Section, the term “proposed assignee” shall refer to the proposed assignee(s) or other successor(s) in interest pursuant to the assignment. Ifthe 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 ofshareholders where no shareholder owns more than ten percent (10%) ofthe voting securities ofthe surviving ultimate parent entity (excluding, however, any such shareholder that prior to such transaction owned 10% or more ofthe voting securities ofthe ultimate parent entity ofCompany).

Notwithstanding any other provision ofthis 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 ofwhich entity is the survivor, do not constitute an Assignment.

9.6.4. Costs and Attorney’s Fees. In the event of any action or litigation to enforce this Agreement, for interpretation or construction ofthis Agreement, or on account of any default under or breach ofthis Agreement, each party to such action, arbitration or litigation shall bear its own costs and expenses in connection with such action or litigation.

10.2. 10.3.

Page 34 of 45 ends

The City shall consent to such an assignment ifsuch information reasonably demonstrates that the proposed assignee has the demonstrated technical and financial capability to perform all Franchise Services.

10.2.5. Assignee has experience in billing Customers for a city of comparable size to City ofGridley 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.

10.2.1. 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 ofsuch citations and censures.

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.

10.2.3. The proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion.

Ifthe City consents to an Assignment at the point oftransition, 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 ofthe Company under this Agreement in conformity with the terms ofthis Section 10 (including with the City’s consent, where required), then the City shall execute a novation whereby such new entity shall assume all ofthe rights, duties and obligations ofthe Company under In connection with any proposed Assignment, the Company shall furnish the City with satisfactory proofthat any proposed assignee has the demonstrated technical and financial capability to perform all Franchise Services, including:

10.2.6. Financial assurances that confinn 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 infomiation required by City to ensure the proposed assignee can fulfill the terms ofthis Agreement in a timely, safe and effective manner.

II. MISCELLANEOUS
1 1.1.

11.2. 1 1.3.

I 1.4.
1 1.5.

11.6.

Page 35 of 45 ends

this Agreement and the City shall release the Company of all obligation and liability under this Agreement.

AMENDMENT. Except for rate and fee adjustments made pursuant to Section 6 ofthis Agreement, this Agreement may be amended or modified only by a written agreement duly authorized and executed by both City and Company.

INDEPENDENT COMPANY7. 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 ofthe services and work performed hereunder and all persons performing the same; that Company shall be solely responsible for the acts and omissions ofits 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.

LAW TO GOVERN. It is understood and agreed by the parties hereto that the laws ofthe State ofCalifornia shall govern the rights, obligation, duties and liabilities of the parties to this Agreement and shall govern the interpretation ofthis Agreement.

FEES AND GRATUTIES. Company shall not, nor shall it pennit 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.

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 ofthe Owner of or Customer located on the private street, easement, or property, or its lawful occupant.

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:

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 ofthe City, other than a delegation or subcontract to an affiliate ofthe Company.

To CITY:

With Copy to:

To COMPANY:

I 1.7.
1 1.8.

Page 36 of 45 ends

SEVERABILITY. If any non-material provision ofthis Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability ofsuch provision shall not affect the validity and enforceability of any ofthe remaining provisions ofthis Agreement, which shall be enforced as ifsuch invalid or unenforceable provision had not been contained herein.

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.

Anthony E. Galycan, Esq.

Gridley City Attorney
1129 D Street, PO Box “A”
Marysville, CA 95901
USA Waste of California, Inc.

Attn: President
333 E. Turner Road
Lodi. CA 95240
City of Gridley
City Hall
685 Kentucky Street
Gridley, CA 95948
Attn: City Administrator
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.
1 1 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 arc hereby superseded and are no longer of any force and effect, except to the extent that the terms ofsuch communications are expressly addressed in this Agreement. As ofthe Effective Date, this Agreement shall supersede any and all prior agreements between the parties. No waiver of any provision ofthis Agreement shall be deemed or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver.

Signatures on following page

Page 37 of 45 ends

11.11. INTERPRETATION. The language of each and all paragraphs, terms and/or provisions ofthis Agreement, shall, in all eases 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 ofthis 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 ofthis Agreement.

11.10. SECTION HEADINGS. The section and subsection headings in this Agreement arc for convenience ofreference only and are not intended to be used in the construction ofthis Agreement nor to alter or affect any ofits provisions.

11.13. AUTHORITY. All individuals executing this Agreement on behalf ofthe City or the Company represent and warrant that they are duly authorized to execute and deliver this Agreement to the other Party.

CITY OF GRIDLEY, CALIFORNIA
By:

Title:

USA WASTE OF CALI RNIA, INC.

By:

Nam<
Title:

Page 38 of 45 ends

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as ofthe day and year first above written.

Name:
(Uh)
Aluminum cans
Glassjars and bottles
Paperjunk 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

Page 39 ends

Exhibit 1
Recyclable Materials
Residential Carts
Service Rate
Extra Pickup Charges
Service Rate
Ancillary Charges
Service Rate
$106.89
$56.58
$100.62
Late Payment charge

Page 40 of 45 ends

Exhibit 2
First Year Service Rates

2.5% of balance
($5 00 min. Chg.)

CITY OF GRIDLEY
Effective 1/1/2024
Residential Rates
35 gallon
64 gallon
95 gallon
Bag
$21.75
$25 86
$29.89
$34.97
$12.93
$14 95
$17.48
$10.62
$12.19
$12 19
$5.70
__________ Long walk service. Up to 100 feet
_________ Long walk service. 101 to 200 feet
_____________ Overfull Container (Snapshot)
____________________ Contamination charge
_____________Extra Pickup / Go Back Charge| _________________Replace lost or stolen cart Replace or Exchange damaged container
_______________________(not caused by WM)
Account reactivation charge (from bad pay) -
___________________________no cart delivery
Account reactivation charge (from bad pay) -
w/ cart delivery
$12 36
$24.78
$11.01
$13.22
$56.58
$106.89
35 gallon - Senior
_______ 35 gallon
_______ 64 gallon
_______ 95 gallon
Add'l 35 gallon
Add'l 64 gallon
Add’l 90 gallon
Commercial Carts
1 xWeek 2xWeek 3 x Week 4 x Week 5 x Week 6 x Week
Commercial Bin Rates - Quantity 1 Rate Rate Rate Rate Rate Rate 1 xWeek 2 x Week 3 xWeek 4 xWeek 5 xWeek 6 xWeek
Commercial Bin Rates - Quantity 2 Rate Rate Rate Rate Rate Rate Commercial Recycling Rate

Page 41 of 45 ends

CITY OF GRIDLEY
Effective 1/1/2024
Commercial Rates
64 Gallon - EOW
2 Yard - IxWeek
3 Yard -lxWeek
4 Yard - IxWeek
$295.07
$363.17
$479.22
$594.05
$710.14
$825.00
$941.02
$1,170.59
1 xWeek
Rate
$134.28
$164.25
$215.44
$265.36
$316.54
$366.49
$417.68
$518.77
$480.62
$594.22
$785.44
$975.27
$1,165.08
$1.356.30
$1,546.10
$1,927.13
2 xWeek
Rate
$717.16
$888.23
$1.173.13
$1.459.15
$1.743.86
$2.030.06
$2.314.79
$2.885.67
$244.03
$301.50
$396.48
$491.37
$586.30
$681.25
$777.44
$967.31
$336.85
1416.45
$549.55
$681.36
$814.52
$947.55
$1,079.39
$1.34432
$666.20
$825.34
$1.09029
$1,356.50
$1.621.56
$1.886.35
$2.151.28
$2,682.38
3 xWeek
Rate
$995.58
$1,234.30

11.632.32
$2,030.34
$2,428.58
$2.826.42

13.223.16
$4,019.21
$429.64
$532.61
$702.64
$872.64
$1.042.58
$1.212.60
$1,382.62
$1,722.61
$851.78
$1.056.47
$1.396.52
$1,736.53
$2,076.43
$2,417.69
$2.757.74
$3,437.68
4 xWeek
Rate
$1^75.21
$1,580.31
$2,091.66
$2,601.64
$3,111.53
$3,621.51
$4,132.87
$5,152.81
$1,038.67
$1.287.62
$1,702.62
$2,117.76
$2,532.65
$2,947.86
$3.362.88
$4.192.93
$522.43
$647.57
$854.43
$1.062.61
$1270.72
$1.477.65
$1,685.80
$2,100.84
5 xWeek
Rate
$1.553.62
$1,927.68
$2,549.54
$3,172.89
$3.794.65
$4,418.01
$5,041.20
$6,286.26
$665.69
$824.93
$1,089.85
$1.356.09
$1,620.99
$1.885.93
$2,150.87
$2,681.99
$1,323.88
$1.642.36
$2.173.50
$2,703.35
$3,234.48
$3.764.32
$4.295.52
$5,356.49
Mufti-Unit Residential Bin Rate*
_________________________ 1 Yard

1.5 Yard
2 Yard
3 Yard
_________________________ 4 Yard
_________________________ 5 Yard
6 Yard
8 Yard
_____35 gallon
64 gallon
95 gallon
Add'l 35 gallon
Add'l 64 gallon
Add'l 90 gallon
1 Yard

1.5 Yard
2 Yard
3 Yard
4 Yard
5 Yard
6 Yard
8 Yard
1 Yard

1.5 Yard
2 Yard
3 Yard
4 Yard
5 Yard
6 Yard
8 Yard
1 xWeek
Rate
$437.55
$542.29
$715.08
$887.97
$1.060.80
$1.233.70
$1,406.51
$1,752.16
$30 85
$91 44
$96.96
$104 67
$151^5
$185.36
$243.37
$301.41
$358.17
$416.23
$474.27
$589.05
2 xWeek
Rate
$216.06
$265.44
$349.11
$432.74
$516.39
$600.03
$683.66
$850.93
3 xWeek
Rate
$297.83
$366.68
$484.04
$600.14
$717.51
$833.55
$950.94
$1,183.08
6 xWeek
Rate
$1.982.07
$2,459.78
$3,255.86
$4,051.92
$4.846.71
$5,642.78
$6,438.86
$8.029.73
6 x Week
Rate
$583.53
$723.19
$955.53
$1,187.87
$1.418.89
$1.651.26
$1,883.58
$2,348.24
Commercial Bin Rates • Quantity 3
1 Yard

1.5 Yard
__________________________ 2 Yard
3 Yard
__________________________ 4 Yard
5 Yard
6 Yard
8 Yard
4 xWeek
Rate
$379.56
$469.15
$618.99
$767.54
$917.30
$1,067.13
$1,216.94
$1,516.50
5 xWeek
Rate
$461.33
$570.37
$752.64
$934.89
$1,118.40
$1,300.67
$1,482.93
$1,848.67
Rate
$34.69
$48.87
$84.53
$33.38
$48.87
$84.53
6 Yard - lxWeek| S119 00
Extra Pickup Charges Rate
Ancillary Charges Rate
Extra pickup non-service day Trip Charge 5125 74
SI 69.75
Replace lost or stolen container
556.58
524523
Late Payment charge

Page 42 of 45 ends

Replace container. Damage not caused
by WM

2.5% of balance
($5.00 min
Chg.)
___________________Contamination Bin
__________________ Contamination Cart
Lock bar and lock - one time installation
_____________________________ charge
_________________ Lock service charge
Container clearVexchange
_____________ Overfull Bin (Snapshot)
___________ Overafull Cart (Snapshot)
Account reactivation charge (from bad
___________________pay) - no delivery
Account reactivation charge (from bad
pay) - w/ delivery
51 25
5188.64
WM
Replacement
Cost + 25%
WM
Replace/Repair
Cost 25%
588 15
516.53
56-0.60
518 73
510.91
512.53
512.53

55.83 566 02
578.56
597 84
5126 70
5152.15
5177 23
5202.31
5227 42
5252 43
35 gallon
64 gallon
95 gallon
Bag
1 Yard

1.5 Yard
2 Yard
3 Yard
4 Yard
5 yard
6 Yard
7 Yard
8 Yard
Service Rate
Service Rate
Ancillary Fees
Service Rate
$55.82
$186.08
Late Payment charge

Page 43 ends

Replace Roll Off Box. Damage
not caused by WM
Debris Box - Clean Recyclable
Materials
Replace lost or stolen Roll Off
Box
Debris Box - Municipal Solid
Waste

2.5% of
balance ($5.00
min. Chg.)

CITY OF GRIDLEY
Effective 1/1/2024
Debris Box Rates
Account reactivation charge
(from bad pay) - no delivery
Account reactivation charge
(from bad pay) - w/ delivery
20 Yard - Wood or Metal
30 Yard - Wood or Metal
40 Yard - Wood or Metal
____ 20 Yard - Masonry
10 Yard - Concrete
Demurrage - Per Day
Waste Trip Charge
Compactor - Per Yard
___________Delivery
_________ Exchange
________Trip Charge
__________ Relocate
__________ Removal
Excessive Net Weight
$497.44
$563.17
$633.56
$994.92
$1,124.74
$1,451.69
$303.53
$342.59
$377.00
$303.53
$323.82
S17.50
565.16
531.26
$188.64
$188.64
$188.64
$188.64
$188.64
$880.27
WM
Replacement
Cost + 25%
WM
Replace/Repair
Cost + 25%
20 Yard - MSW
30 Yard - MSW
40 Yard - MSW
20 Yard - Tires
30 Yard - Tires
40 Yard - Tires
WM
ORD Ranch Road Transfer Station Rate Schedule
Service Rate

Page 44 of 45 ends

CITY OF GRIDLEY
Effective 1/1/2024
Ord Ranch Transfer Station
Minimum Charge___________
Up to 2 barrels_____________
Up to 3 cans_______________
Any size pickup____________
Bulky Items (each)__________
Appliances with Fieon_______
Appliances without Freon
CRT's / Televisions up to 31" *
Wire (per approx yard)_______
Car Tires__________________
Truck Tires_____________________________________ __________ *(for Televisions over 32” call City offices for appropriate disposal) S14.32
S14.32
S14,32
$30.06
S24.73
$54.03
$24.73
$0.00
$21.38
$7,31
$21.38
Rounded Rate
(to nearest
dollar)
$14.00
$14.00
$14.00
$30.00
$25.00
$54.00
$25.00

50.00 $21 CO
S7 00
$21.00
Company shall provide the following sen ices at no charge to the City.

CITY FACILITIES*
+

SPECIAL EVENTS
Solid waste containers and recycling containers for up to 4 conununity events, per year. • Recycling containers are to be provided as directed by the City.

Page 45 ends

City Hall Police Facility
Electric Warehouse
Fire Station
4-cubic yard container
2 cubic yard container
2 cubic yard container
• A total of 20 solid waste containers ranging from 2-cubic yards to 4-cubic yards shall be provided on an annual basis.

Exhibit 3
City Facilities / Special Events
C ontainers shall be emptied weekly or more often if necessary.

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