Pinole City Council
June 3, 2025

DRAFT CAPITAL

IMPROVEMENT PLAN
FY 2025/26 – FY 2029/30
PRIORITY FY 2025/26

CAPITAL PROJECTS
City Council
June 3, 2025

PROPOSED CAPITAL IMPROVEMENT PLAN
FY 2025/26 – FY 2029/30
2  The Capital Improvement Plan (CIP) is a five-year plan used to identify and implement the City’s capital needs.
 The proposed five-year CIP contains 45 projects and 5 infrastructure assessments under six categories.
 Priority FY 2025/26 Projects include 3 Facilities, 2 Parks, 6 Sanitary Sewer, 2 Stormwater, 11 Streets & Roads, and 2 Infrastructure Assessments.

Replacement of Pools equipment to avoid
potential failure ($100,000 Development
Impact Fees)
Zero-emission vehicles and construction of
EV charging infrastructure ($75,000 of 2014
Measure S fund and $595,000 Climate
Implementation Grant)
City Hall improvements and upgrades to
extend its life and improve functionality
($400,000 Development Impact Fees)
3 FACILITIES – FY 2025/26 PROJECTS

 Improvements to City parks including
lighting, playground equipment, shaded
structures, landscaping, and paving
trails. (Starting with the Dog Park:
$200,000 Development Impact Fees in
addition to other funding sources)
Rehabilitation of the soccer fields
including improvements to the irrigation
systems and turf ($250,000 Development
Impact Fees)
4 PARKS – FY 2025/26 PROJECTS

 Replacement of two blowers at the Treatment
Plant to avoid equipment downtime ($280,000
Sewer Enterprise Fees)
 City Program for Private Sewer Lateral funding
support to property owners ($150,000 Sewer
Enterprise Fees)
 Effluent outfall to reduce pressure during storm
events and increase lifespan of the effluent pipes
($650,000 Sewer Enterprise Fees)
5 SANITARY SEWER – FY 2025/26 PROJECTS

 Rehabilitation of secondary clarifier at the
Treatment Plant ($425,000 Sewer Enterprise
Fees)
 Upgrade of the lab equipment and lab remodel at
the Treatment Plant ($150,000 Sewer Enterprise
Fees)
 Rehabilitation/replacement of the sewer pump
station and force main on San Pablo Avenue and
Hazel Street ($850,000 Sewer Enterprise Fees)
6 SANITARY SEWER – FY 2025/26 PROJECTS

7  Replacement of structurally deteriorated
and failing storm drain pipelines ($120,000
Measure S 2014)
 Upgrade of stormwater system and
installation of trash capture devices to
comply with state and regional standards
and requirements ($150,000 Measure S
2014)
STORMWATER – FY 2025/26 PROJECTS

8  Pavement Rehabilitation for long-term
improvements such as slurry seal, cape seal,
and reconstruction ($750,000 Measure J,
$1,500,000 Gas Tax, and $1,000,000 potential
Vehicle Impact Fees)
 Sidewalk rehabilitation to assist property
owners in maintaining the sidewalks in a safe
and accessible manner ($200,000 City Streets
Improvements)
 Accessibility improvements to meet ADA
requirements by providing curb ramps
($150,000 City Street Improvements)
STREETS & ROADS – FY 2025/26 PROJECTS

9  Pavement markings and signage upgrades to meet state requirements and maintain minimum level of retroreflectivity, which will also accompany pavement rehabilitation projects ($100,000 City Street
Improvements)
 City streetlight upgrades to meet standards for spacing and illumination thereby improving nighttime visibility and enhancing sense of safety and security ($250,000
Arterial Streets Rehabilitation)
 City signal upgrades through the installation of video detection, accessible devices, upgrade of controllers,
upgrade of software, battery back-up system and/or
designated left-turn phasing ($200,000 Arterial Streets Rehabilitation)
STREETS & ROADS – FY 2025/26 PROJECTS

10  Replacement of the San Pablo Avenue bridge over
the Burlington Northern Santa Fe Railroad – PE
Phase ($1,990,449 Federal and regional grants, and
$100,000 Measure S 2014)
 Safety Improvements on Arterial Roadways and
pedestrian crossing enhancements ($239,040 HSIP
grant, and $110,960 Arterial Streets Rehabilitation)
 Traffic Calming Program to change drivers’ behavior
and reduce travel speeds through the installation of
physical devices such as driver feedback signs, curb
extensions, speed cushions, and roundabouts
($200,000 City Street Improvements)
STREETS & ROADS – FY 2025/26 PROJECTS

11 Road Maintenance and Repairs such as
potholing ($350,000 Measure S 2006)
Update of the City’s 2004 ADA Transition
Plan for Public Improvements ($250,000
City Street Improvements)
STREETS & ROADS – FY 2025/26 PROJECTS

12 INFRASTRUCTURE ASSESSMENTS – FY 2025/26 PROJECTS
Recycled Water Feasibility Study to plan
and phase the construction of future
recycled water distribution system
infrastructure ($80,000 Sewer Enterprise
Fees)
Development of a Storm Drain Master
Plan to analyze existing collection system
and guide future improvements and
funding allocation ($125,000 Measure S
2014, $150,000 Sewer Enterprise Fees)

REVIEW AND APPROVAL PROCESS
13 Finance
Subcommittee
– April 24th
Preliminary
Proposed CIP –
City Council,
May 6th
Special Budget
Workshop –
May 13th
Draft CIP – City
Council June
3 rd
Planning
Commission -
June 9th
Final CIP – City
Council, June
17th

FIVE-YEAR CIP BUDGET SUMMARY
14 SOURCES BY FUND FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 5-Year Total 100 - General Fund $ - $ 200,000 $ - $ - $ - $ 200,000 105 - Measure S 2006 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 1,750,000 106 - Measure S 2014 $ 570,000 $ 2,123,000 $ 918,965 $ 250,000 $ 250,000 $ 4,111,965 200 - Gas Tax $ 1,500,000 $ 880,000 $ 500,000 $ 500,000 $ 500,000 $ 3,880,000 214 - Solid Waste $ - $ - $ - $ - $ - $ - 215 - Grant: TLC $ 41,442 $ - $ - $ - $ - $ 41,442 215 - Grant: Climat Implementation Grant - MTC $ 595,000 $ 357,000 $ - $ - $ - $ 952,000 215 - Grant: HSIP $ 239,040 $ - $ - $ - $ - $ 239,040 215 - Measure J $ 750,000 $ 500,000 $ 500,000 $ 500,000 $ 250,000 $ 2,500,000 215 - Grant: OBAG $ - $ 650,000 $ 370,000 $ - $ - $ 1,020,000 275 - Parkland Dedication $ - $ - $ - $ - $ - 276 - Growth Impact Fees $ 950,000 $ 2,018,000 $ 620,000 $ 220,000 $ 250,000 $ 4,058,000 324 - Public Facilities Fund $ - $ 582,000 $ 400,000 $ - $ - 325 - City Street Improvements $ 900,000 $ 1,075,000 $ 700,000 $ 700,000 $ 650,000 $ 4,025,000 325 - Grant: TDA Article 3 $ - $ - $ - $ - $ - $ - 325 - Grant: STMP Fees $ 597,417 $ 670,000 $ 480,000 $ - $ - $ 1,747,417 325 - Grant: HBP $ 1,351,590 $ 1,600,000 $ 23,919,035 $ - $ - $ 26,870,625 377 - Arterial Streets Rehabilitation $ 560,960 $ 450,000 $ 400,000 $ 350,000 $ 350,000 $ 2,110,960 500 - Sewer Enterprise Fund $ 2,735,000 $ 5,650,000 $ 4,480,000 $ 4,995,000 $ 2,835,000 $ 20,695,000 Potential Debt Financing $ - $ 4,000,000 $ 4,000,000 $ 2,750,000 $ 2,250,000 $ 13,000,000 Potential Vehicle Impact Fee $ 1,000,000 $ - $ - $ - $ - $ 1,000,000 Sources Total $ 12,140,449 $ 21,105,000 $ 37,638,000 $ 10,615,000 $ 7,685,000 $ 89,183,449 Unfunded Total $ - $ 515,000 $ - $ 1,050,000 $ 500,000 $ 2,065,000 Total Sources Required $ 12,140,449 $ 21,620,000 $ 37,638,000 $ 11,665,000 $ 8,185,000 $ 91,248,449

COUNCIL

RECOMMENDATIONS

CITY COUNCIL
REPORT 12.A.

DATE: JUNE 3, 2025
TO: MAYOR AND COUNCIL MEMBERS
FROM: Kelcey Young, City Manager, 5107248933, [email protected] SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO

EXECUTE THE NEW SOLID WASTE FRANCHISE AGREEMENT WITH
RICHMOND SANITARY SERVICE, INC. DBA REPUBLIC SERVICES AND TO

EXECUTE A SIDE LETTER AGREEMENT REGARDING USE OF CITY RATE STABILIZATION FUNDS TO OFFSET MAXIMUM SERVICE RATES.

RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the City Manager to Execute an Agreement with Richmond Sanitary Services, Inc. dba Republic Services for Solid Waste Collection Services, and authorizing the City Manager to Execute a Side Letter Agreement Regarding Use of City Rate Stabilization Funds to Offset Maximum Service Rates Effective July 1, 2025, through December 31, 2030.

BACKGROUND
Since May 15, 2001, the City of Pinole has maintained a Franchise Agreement with Richmond Sanitary Service, Inc., doing business as Republic Services (Republic). This agreement is set to expire on June 30, 2025. In preparation for the transition, the City Council previously directed staff to begin negotiations with Republic for a new 15-year contract.

The franchise agreement with Republic covers only solid waste collection services. Legislative compliance functions are managed by the West Contra Costa Integrated Waste Management Authority (RecycleMore), a Joint Powers Authority (JPA) of which Pinole is a member. Postcollection services (e.g. disposal of recycled and compostable materials), and outreach and education, are governed by the Post-Collection Agreement between RecycleMore and Republic. This Post Collection agreement is also scheduled to expire on June 30, 2025.

Under the current franchise agreement, the City receives revenue from two key fees: the franchise fee, which is directed to the General Fund, and a smaller AB939 Fee that supports solid waste diversion programs. Additionally, the City Waste Program Fee, which is allocated to a dedicated fund (Solid Waste 214), will be converted into a Vehicle Impact Fee as part of the new agreement.

REVIEW AND ANALYSIS
Staff, supported by R3 Consulting Group, have completed negotiations with Republic for a fifteen-year term length. This term length is typical for modern franchise agreements and matches the term length negotiated by the nearby cities of San Pablo and Hercules. The

proposed negotiated agreement, if approved would be effective on July 1, 2025, and expire on June 30, 2040.

Negotiated Outcomes
Staff, assisted by R3, worked with Republic over the past seven months to reach agreement on a modern, regulatory compliant franchise agreement that ensures competitive rates and rate stability. The most significant outcomes of negotiations, as described above, are as follows:
• Franchise agreement effective on July 1, 2025, and expiring on June 30, 2040. • Collection services largely remain the same.
• Republic will provide an additional single-family bulky item collection program. • Residents may call twice per year to schedule a pickup amounting to the equivalent of (a) three (3) Large Items, (b) fifteen (15) 35-gallon bags with a maximum weight of 50 pounds per each bag, (c) four (4) 95-gallon bags with a maximum weight of 50 pounds per each bag, (d) five (5) E-Waste items, or (e) up to 1.8 cubic yards of Garbage or Organic Waste per SFD Service Unit at no additional cost and expense. • Republic will continue to be responsible for programs and services required under SB 1383 and full legislative compliance coverage including recycling and organics service as a bundled rate, contamination monitoring, outreach and education, and reporting as required by recent state law.
• Republic will assist the City with abandoned waste removal. • The City now sets industrial rates.

Other improvements that City staff negotiated as a part of the franchise agreement restatement include the following:
• An initial 18-month rate freeze.
• Annual adjustments to collection service rates based upon the Consumer Price Index for Water, Sewer, and Trash collection (CPI).
• Annual rate adjustment cap of 5%, with a roll-over (e.g. if CPI increases by more than 5% Republic would be allowed to include the difference between the CPI and 5% in the next annual increase).
• Limitations on future changes in rates due to change in law. • Updated Agreement including modern performance and legal standards. • Detailed Administrative Penalties for non-compliance. • Republic will provide up to one thousand (1,000) cubic yards of compost or two thousand 2,000 cubic yards of mulch to the City annually. • Language describing the impact of potential future changes to the post-collection agreement such that changes may be accounted for without further amendments to the Franchise Agreement, within the contemplated limits.
• Reimbursement to the City for consultant and attorney costs for negotiations ($80,000).

Once the Public Hearing is concluded the City Council may consider adopting the attached resolution which will approve the rate adjustment.

Failing to adopt the proposed rate increase without a majority protest by solid waste collection service ratepayers would breach the adopted Franchise Agreement.

FISCAL IMPACT
The recommended rates include annual payments to the City from Republic Services of approximately $1,200,000 related to the new Vehicle Impact Fee. The City will be responsible for annual payments to Republic from the Solid Waste Fund of approximately $200,000 for the first five years of the agreement to smooth the impact of the initial rate increase on customers.

There are sufficient funds available in the Solid Waste Fund to fulfill this obligation, and this appropriation will be incorporated into the FY 2025-2026 Annual Budget.

ATTACHMENTS
A. Resolution Franchise Agreement
B. Side Letter Agreement
C. Fee Study
D. Franchise Agreement

RESOLUTION NO. XXA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE

AUTHORIZING THE CITY MANAGER TO EXECUTE THE RESTATED

FRANCHISE AGREEMENT BETWEEN THE CITY OF PINOLE AND

REPUBLIC SERVICES, AND AUTHORIZING THE CITY MANAGER TO

EXECUTE A SIDE LETTER AGREEMENT REGARDING USE OF CITY RATE STABILIZATION FUNDS (SOLID WASTE FUND 214); AND FINDING THESE

ACTIONS TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT PURSUANT TO GUIDELINES SECTIONS 15378 AND
15061(b)(3)
WHEREAS, the City of Pinole (City) has the responsibility and authority under the laws of California to determine all aspects of solid waste handling which are of local concern, including setting of charges and fees for provision of solid waste collection and disposal services; and
WHEREAS, on September 10, 1986, the City entered into a Franchise Agreement with Richmond Sanitary Services, Inc. (RSS) to provide solid waste collection and disposal services to the community, which is set to expire on June 30, 2025; and
WHEREAS, the City of Pinole negotiated the terms and conditions of a new solid waste franchise agreement with Republic Services which include bulky item collection at curbside twice per year, the regulation of industrial rates, and other service enhancements; and
WHEREAS, the City has replaced the current rate stabilization fee with a new Vehicle Impact Fee to partially recover the cost of the impact solid waste collection trucks have on the City streets,
WHEREAS, the increased cost of living as well as the addition of the new services requires an adjustment to the rates charged; and WHEREAS, approval of this Solid Waste Franchise Agreement (“Agreement”) and authorization to the City Manager to execute the same, receipt of the franchise fee study supporting the Agreement and actions proposed therein, and authorization of the City Manager to execute a side letter agreement to use rate stabilization funds, are all actions that are exempt from the California Environmental Quality Act (CEQA) in that they are not a “project” as defined in CEQA Guidelines Section 15378 because they authorize only administrative activities and no construction or other activities that could impact the environment, and also because even if they were considered a “project,” they are exempt pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that approval and acceptance of these agreements and the study would have a significant effect on the environment.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pinole

as follows:

1. The foregoing recitals are true and correct and are incorporated herein.

The City Council hereby authorizes the City Manager to execute the Solid Waste Franchise Agreement with Richmond Sanitary Services, Inc., a subsidiary of Republic Services, and to negotiate and make any changes necessary to substantially conform to City Council direction regarding the same.

2. The City Council hereby authorizes the City Manager to execute the Side Letter Agreement Regarding Use of City Rate Stabilization Funds to Offset Maximum Service Rates Effective July 1, 2025, through June 30, 2030 and to negotiate and make any changes necessary to substantially conform to City Council direction regarding the same.

3. The City Council hereby accepts the Franchise Fee Study.

4. The City Council hereby finds that approval of the Agreement and authorization to the City Manager to execute the same, acceptance of the Franchise Fee Study, and authorization of the City Manager to execute a side letter agreement to use rate stabilization funds, are all actions that are exempt from the California Environmental Quality Act (CEQA) in that they are not “project” as defined in CEQA Guidelines Section 15378 because they authorize only administrative activities and no construction or other activities that could impact the environment, and also because even if they were considered a “project,” they are exempt pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that approval and acceptance of these agreements and the study would have a significant effect on the environment.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 3rd day of June 2025 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

I hereby certify that the foregoing resolution was regularly introduced, passed, and adopted on the 3rd day of June 2025.
____________________________
Heather Bell
City Clerk

The Parties:

City of Pinole
Republic Services
Subject:

Side Letter Agreement Regarding Use of City Rate Stabilization Funds to Offset Maximum Service Rates Effective July 1, 2025, through December 31, 2029 Content:

The City of Pinole and Republic Services (collectively the “Parties”) hereby agree that the Maximum Service Rates effective July 1, 2025, through December 31. 2029, shall be offset by the City’s use of $200,000 annually in rate stabilization funds (Solid Waste Fund 214). Republic Services has calculated the Service Rates net of the City’s use of rate stabilization funds as described in Attachment 1 to this Side Letter Agreement.

Republic Services shall invoice the City quarterly starting on July 1, 2025, for the amount owed by the City. The quarterly amount owed will be calculated monthly based on the number of subscribers and the rate offsets shown in Attachment 1.

Provided that the City pays Republic Services the quarterly amounts owed as described above from July 1, 2025, through December 31,2029, Republic Services shall bill City Services Recipients at the Service Rates net of rate stabilization funding shown in Attachment 1 to this Side Letter Agreement and shall not bill Service Recipients at the Maximum Service Rates included in the Agreement.

If the City does not pay the quarterly amounts described herein, Republic Services may bill customers at the Maximum Service Rates per the Agreement, including retroactive prorated amounts if necessary and applicable to billing cycles for which the City did not pay rate stabilization funding invoices.

Starting January 1, 2030, Republic Services shall commence billing Service Recipients based on the Maximum Service Rates as adjusted in accordance with of the Agreement.

Signature Block:

Republic Services:

City of Pinole:

ATTACHMENT 1
1/1/25
Collection
Charge
2025
Collection
Maximum
Rate
*2025 Rate
Stabilization
Fund
Post
Collection
Charge
Vehicle
Impact
Fee
City AB
939 Fee
Total
Monthly
Rate
20-gallon $ 25.08 $ 28.15 $ (3.07) $ 7.56 $ 5.40 $ 0.83 $ 38.87 35-gallon $ 26.08 $ 29.28 $ (3.20) $ 13.27 $ 7.75 $ 0.83 $ 47.93 35-gallon Sr. $ 24.08 $ 27.28 $ (3.20) $ 13.27 $ 7.75 $ 0.83 $ 45.93 65-gallon $ 50.98 $ 50.98 $ 24.66 $ 14.10 $ 1.51 $ 91.25 95-gallon $ 72.79 $ 72.79 $ 37.02 $ 20.85 $ 2.19 $ 132.85 * Rate stabilization fund of $200K annually paid by the city. 7/1/2025 Residential Rates
Bin
Size 1 2 3 4 5
1 Yard 355.63 620.87 885.92 1,151.19 1,416.24
2 Yard 586.06 1,067.83 1,549.81 2,031.48 2,513.41
3 Yard 801.72 1,486.68 2,171.72 2,856.69 3,541.72
4 Yard 1,009.62 1,891.26 2,772.91 3,654.72 4,536.21
5 Yard 1,212.89 2,288.47 3,363.83 4,439.52 5,514.76
6 Yard 1,414.38 2,682.42 3,950.65 5,219.26 6,487.21
7 Yard 1,614.27 3,075.18 4,536.75 5,997.55 7,458.62
Times per Week
7/1/2025 Commercial Collection Rates (Combined)
Rate Per Haul
MSW, Miscellaneous Trash, C&D, Green Waste, Wood, Dirt, Concrete, Cardboard, Metal 2025 Rate Adj 2025
Box Size Current 16.21% Total Rate
10 Yard 530.00 85.91 615.91
14 Yard 588.00 95.31 683.31
20 Yard 624.00 101.15 725.15
30 Yard 675.00 109.42 784.42
40 Yard 746.00 120.93 866.93
7/1/2025 INDUSTRIAL ROLL-OFF SERVICE RATES
Plus disposal rate (per ton)

FINAL REPORT
City of Pinole
submitted electronically on April 7, 2025
Solid Waste
Franchise Fee Study

TABLE OF CONTENTS
City of Pinole | Solid Waste Franchise Fee Study – R3 Report toc - i

1. Executive Summary
page 1

2. Methodology & Calculations
page 3

3. Findings & Conclusions
page 20

4. Recommendations
page 21

1. EXECUTIVE SUMMARY
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 1 of 21 Background
The City of Pinole’s (City) Solid Waste Franchise Agreement (Agreement) dated May 15, 2001, with Richmond Sanitary Service, Inc. dba as Republic Services (Contractor) is for the collection of solid waste from Contractor’s solid waste service subscribers in the City. The Agreement provides the Contractor with the exclusive right to provide critical aspects of the City’s sanitation system, including solid waste collection and the other services and programs included in the Agreement. The Agreement specifies that the Contractor will charge solid waste service subscribers, with the Contractor billing and collecting revenues from subscribers and the City authorizing the maximum rates that the Contractor may charge pursuant to the rate adjustment methodology included in the Agreement.

Per the Agreement, the Contractor pays the City a Franchise Fee. This Study considers the Franchise Fee paying for the costs incurred by the City in managing, administering, enforcing, and supplementing the services provided in the Agreement, as well as the charge for the use of the public right-of-way for the special and lasting access to use it for set-out and collection of solid waste containers, along with the proportionate costs of the unique impacts to pavement caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service. The Contractor also pays the City a Rate Stabilization Fee and an AB 939 Fee. The City is also considering a Vehicle Impact Fee which would replace the Rate Stabilization Fee. For the purposes of this Study, the Rate Stabilization Fee is assumed to be eliminated at the end of Fiscal Year 2024-25.

Purpose
The purpose of this Study is to identify the amounts that may be considered for recovery through the Franchise Fee paid by the Contractor to the City and to develop the maximum amount that could be recovered via a new Vehicle Impact Fee (VIF). There are three components to this analysis. The first component includes the City’s proportionate costs (City’s Costs). The second component includes the proportionate charges for the Contractor’s use of the public right-of-way (Property Use Charges). The third is the City’s proportionate costs associated with pavement impacts (Pavement Impacts).

Methodology and Findings
To complete this Study, R3 reviewed and analyzed information provided by the City pertaining to the City’s Costs, Property Use Charges, and Pavement Impacts. Using that information, we then calculated the proportionate amounts necessary to cover the City’s costs, including staffing and other costs; use of government property in the public right-of-way; and pavement repair, maintenance, and rehabilitation costs caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service. All calculated amounts in this Study are in Fiscal Year (FY) 2023-24 dollars.

City’s Costs
The annual costs for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system includes: staffing salary and benefits, contracted services, operations and maintenance, supplies, and overhead for distributed costs including but not limited to property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions.

Staffing costs are calculated based on estimated time allocations (based on assessment of current City employees) and other costs are calculated based on estimated share allocations associated with the sanitation system, with distributed overhead applied to both.

The calculation results are $461,784 in staffing costs and $112,745 in other costs, for annual proportionate City’s Costs totaling $574,529.

Additionally, there is $73,486 in Other Costs associated with AB 939 compliance.

Executive Summary
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 2 of 21 Property Use Charges
The annual charge to the Contractor for use of government property in the public right-of-way is calculated as a function of estimates for the number of solid waste accounts setting out solid waste collection containers in the right-of-way, the set-out area used, the amount of time it is used, and the market value for the per square foot use of the public right-of-way.

The calculation result for the use of the public right-of-way is a proportionate annual total Property Use Charge of $441,521.

Pavement Impacts
The annualized costs for pavement repair, maintenance, and rehabilitation are calculated based on the proportionate impact to pavement from solid waste collection vehicles compared to other sources of impacts. This calculation accounts for five-year projections for growth in deferred maintenance only for the purposes of this Study. The calculation also accounts for the high loading and slow speed impacts on pavement associated with solid waste collection vehicles.

The calculation results for the proportionate Pavement Impacts caused by Contractor’s solid waste collection vehicles during the course of providing sanitation service is an annualized cost of $1,703,440.

Conclusions
Franchise Fee
The FY 2022-23 Franchise Fee paid Contractor to the City was $407,921 and the actual for FY 2023-24 was $432,818. The sum of FY 2023-24 annual City’s Costs and Property Use Charges calculated in this Study is $1,016,050, which is $521,152 (51%) higher than the FY 2023-24 Franchise Fee payments. The Franchise Fee is, therefore, not more than the sum of the City’s Costs and Property Use Charges.

AB 939 Fee
The FY 2022-23 AB 939 Fee paid Contractor to the City was $61,948 and the actual for FY 2023-24 was $62,080. The FY 2023-24 annual AB 939/SB 1383 City’s Costs calculated in this Study are $73,486, which is $11,406 (16%) higher than the FY 2023-24 AB 939 Fee payments. The AB 939 Fee is, therefore, not more than the sum of the City’s Costs for contract and programs associated with AB 939 and SB 1383 compliance.

Vehicle Impact Fee
The Pavement Impacts associated with the vehicles used in the solid waste system collection (refuse, recyclables and organics) are calculated at an annual value of $1,703,440. Should the City wish to implement a Vehicle Impact Fee, the annual amount collected by the Contractor should not be greater than this amount. Because the legal landscape for such fees remains unsettled, if the City does implement a Vehicle Impact Fee, we recommend setting the fee at a conservatively lower amount.

Limitations
This Study relies on information provided by the City, which we have reviewed and analyzed for reasonableness and accuracy but did not independently audit or verify. It was necessary to estimate certain values for information that the City did not have, and for which reasonable ranges are known to exist. When it was necessary to establish estimates or assumptions for those values, R3 relied on decades of professional experience working with dozens of local government agencies in California on solid waste utility and other local government public administration matters. Because changes to estimates and other underlying assumptions could change calculations, R3’s approach to this Study was to establish reasonable estimates and assumptions such that changes to them would minimize the potential for different ultimate findings. We have reviewed estimates and assumptions with City staff and legal counsel and have mutual concurrence on applicability and reasonableness of estimated and assumed values in this Study.

2. METHODOLOGY & CALCULATIONS
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 3 of 21 City’s Costs
Methodology
R3 reviewed and analyzed information provided by the City pertaining to the General Fund costs incurred for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system.

These costs include and may not be limited to:
» Staffing costs, including salaries and benefits.
» Contracted services.
» Capital and equipment operations and maintenance.
» Supplies and materials.
» Overhead for distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions.

Using the total annual salary, benefit, and other cost information provided by the City, we estimated the proportion of costs associated with management and administration of the agreement and the sanitation system. We then calculated the proportionate totals and categorized them by the functions listed in the sections below.

Variables, Estimates and Assumptions
Staffing Costs
Variables associated with salaries and benefits include the allocation of time that positions are dedicated to management and administration of the Agreement and the sanitation system (including time supervising others with primary responsibility for these duties), the amount by which funding of salaries and benefits is paid by the General Fund, and the applicable amount of General Fund overhead.

The estimated time allocation by position category used in this Study (and based on historical experience) is shown in Table 1, on the following page, along with the explanation for the allocation values.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 4 of 21 Table 1: Allocations of Staffing Time by Position
Positions Time
Allocation Explanation
CITY MANAGEMENT - City Manager
(5%), Finance Director (5%), City Clerk
(3%), Public Works Director (10%) and
Capital Improvement Manager (5%)
3-10%
Estimated allocation representing proportion
of staff time spent on solid waste
Agreement and sanitation utility
management and administration. This
estimated allocation is informed by our prior
work experience in local governments as
well as our experience conducting similar
studies for local governments in California.

Public Works Maintenance Staff Varies
Estimated actual time spent by staff on
direct support of the sanitation system
associated with street sweeping, catch
basin cleaning, public solid waste
receptacle collection, illegal dumping cleanup, tree trimming for large vehicle access, pavement repair and city events clean-up.

R3 verified with City staff that the salaries and benefits included in this Study are paid by the General Fund – any non-General Fund portions of positions included in Table 1 have been excluded from the calculations. A General Fund overhead rate of 10% (for the distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions) is also applied to the total allocated costs. The 10% General Fund overhead rate used in this Study is an assumption informed by our prior work experience in local governments as well as our experience conducting similar studies for local governments in California. In our experience, when a City does calculate a General Fund overhead rate on its own, the result tends to be higher than the 10% used for the purposes of this Study (e.g., 25% or greater).

Other Costs
Variables associated with the City’s other (i.e., non-salary and benefit) costs include the proportionate allocation of those costs that are for management and administration of the Agreement and the sanitation system, the amount by which these costs are paid by the General Fund, and the applicable amount of General Fund overhead. The estimated time allocation by cost category used in this Study is shown in Table 2, on the next page, along with the explanation for the allocation values.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 5 of 21 Table 2: Allocations of Other Costs by Category
Cost Category Cost
Allocation Explanation
Consulting and legal costs for direct
and indirect management and
administration of Agreement and
sanitation system.
100%
All these costs are directly associated with
management and administration of the
Agreement and the sanitation system.

Catch Basin Waste Removal, Street
Sweeping, Illegal Dumping, and Tree
Trimming
80%
Estimated allocation based on proportion of such
activities that are associated with sanitation
services in the City (i.e., the proportion of waste
that is generated by Contractor’s solid waste
customers in the City compared to overall waste
generation in the City).

CalRecycle & SB 1383 Compliance,
Implementation and Enforcement
Costs and Public Solid Waste
Receptable Collection Costs
100%
All these costs are directly associated with
sanitation services in the City (i.e., the proportion
of waste that is generated by Contractor’s solid
waste customers in the City compared to overall
waste generation in the City).

R3 verified with City staff that the other costs included in this Study are paid by the General Fund – any non-General Fund portions of these costs as included in Table 2 have been excluded from the calculations. A General Fund overhead rate of 10% (for the for distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions) is also applied to the total allocated costs.

Analysis
Direct Management and Administration
This category includes City staffing and consulting costs for direct management and administration of the Agreement and the sanitation system, for a calculated $187,680 in annual staffing costs. Other costs include solid waste consulting services provided by R3 and other consultants, for $55,000 in annualized consulting costs for the cost of performing this Study as well as other activities necessary to support the management and oversight of the solid waste system utilizing consultants and temporary employees. The total calculated cost for this category is $242,680.

Indirect Management and Administration
This category includes City staffing costs for indirect management and administration, including supervision of those responsible for direct management and administration of the Agreement and the sanitation system and associated responsibilities. Allocated annual costs for staffing in this category are $64,285. There are no “Other costs” associated with this category.

CalRecycle and SB 1383 Compliance
This category includes City staff costs and other costs for various activities associated with the City’s need to implement Senate Bill 1383 (Short-Lived Climate Pollutants Act) as well as annual reporting to the State agency CalRecycle. There are $73,486 in “Other costs” included in this category.

Code Enforcement
This category would include City staffing costs for enforcing the solid waste provisions of the City’s Municipal Code, which includes illegal solid waste accumulations, illegal dumping, littering, improper

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 6 of 21 waste collection setouts, nuisances, and the associated investigations, warnings, notices of violation, and administration of penalties. No costs associated with this category were identified by the City during completion of this Study. Though no such costs were identified, that does not mean that these costs do not exist. Future updates to this Study could result in identification of such costs.

Street Sweeping
This category includes $45,976 in City staffing costs and equipment, and operations and maintenance costs of $19,572 for the City’s street sweeping operations. Therefore, total costs associated with this category are $65,548.

Catch Basin Waste Removal
Solid waste that is not properly managed by waste generators or the Contractor, and not otherwise captured by street sweeping operations, accumulates in catch basins and other trash capture devices in the City’s storm drain system.

For the purposes of this Study, we do not assume that all mismanaged solid waste that ends up on the City’s catch basin system is generated by properties receiving solid waste services. Rather, because there is the possibility that some solid waste collected by catch basin waste removal operations was originally generated by other sources, this Study estimates that only 80% of the solid waste collected by catch basins was generated by properties receiving solid waste services. This assumption is consistent with other studies conducted by R3 (e.g., for the cities of Garden Grove and San Bruno) wherein street sweeping activities were allocated between 77.4% and 90% to the sanitation system.

This category includes City staffing, capital equipment, and operations and maintenance costs for the City’s catch basin waste removal operations. Allocated staffing costs for the Public Works maintenance crews are calculated to be $26,024 annually. The allocated and annualized costs for equipment are calculated to be $4,185 annually, for a calculated total in this category of $30,209.

Illegal Dumping Clean-up
The City’s Public Works maintenance crews also clean up solid waste materials that are illegally dumped throughout the City. As with catch basin waste removal, an 80% waste generation allocation is applied.

This category includes $13,663 in personnel costs and $1,588 in equipment to remove illegal dumping from rights-of-way and is calculated to be an annual cost of $15,250.

Public Waste Containers
This category includes City staff costs and other costs for collection of waste deposited in public waste containers in public rights-of-way and other public locations in the City, for a calculated annual cost of $75,395.

Waste Collection at City Events
This category includes City staff costs of $5,964 for collection of waste generated and disposed of at City public events.

Tree Trimming for Vehicle Access to Public Right-of-Way This category includes City staff costs of $47,711 and other costs of $27,488 for a total of $75,198 for trimming of the City’s street trees to provide safe clearance for collection vehicles to collect solid waste from the public right-of-way.

Annual Total of City’s Costs
Table 3, on the next page, shows the total of the City’s Costs for management and administration of the Agreement and the sanitation system as calculated in this Study, by category.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 7 of 21 Table 3: City’s Annual Costs by Category and in Total
Category Staffing Costs Other Costs Total
Direct Management &
Administration $187,680 $55,000 $242,680
Indirect Management &
Administration $64,285 $- $64,285
CalRecycle & SB 1383 Compliance,
Implementation & Enforcement $- $73,486 $73,486
Street Sweeping $45,976 $19,572 $65,548
Catch Basin Waste Removal $26,024 $4,185 $30,209
Illegal Dumping Response, Cleanup, Mitigation, & Prevention $13,663 $1,588 $15,250 Public Solid Waste Receptable
Collection $70,482 $4,913 $75,395
City Events Solid Waste Collection $5,964 $- $5,964
Tree Trimming for Large Vehicle
Curbside Access $47,711 $27,488 $75,198
Total Annual City’s Costs $461,784 $112,745 $574,529
Property Use Charges
Methodology
R3 reviewed and analyzed information provided by the City and the Contractor pertaining to Property Use Charges for Contractor’s use of the public right-of-way for collection of solid waste collection containers.

They then calculated the annual Property Use Charges based on:
» The setout area used for collection of solid waste containers (in square feet). » The amount of time that the area is used.
» The market value for use of the public right-of-way (in dollars per square foot). » The number of solid waste subscribers setting out collection containers in the public rightof-way.

Using these values, we calculated the market value for the Contractor’s use of government property in the City.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 8 of 21 Variables, Estimates, and Assumptions
Setout Area
Standard residential solid waste collection setouts include three solid waste collection containers, usually carts with wheels and lids, with one each for garbage, recycling, and organics waste streams. The setout area needed for placement of these containers is inclusive of the width of each container (typically two feet) as well as minimum required space between the containers and other objects such as cars (minimum of one feet). The set-out area also takes up available parking space and is, thus, assumed to extend six feet out from the curb. Taken altogether, the area for residential setouts is calculated as three containers that are each two feet wide, plus one foot between each container and other objects, for a total area ten feet wide times six feet in depth. The result is 60 square feet of setout area per serviced singlefamily residential property.

The amount of area used for commercial setouts (in this Study, use of the term commercial also always includes multi-family) can vary widely, as there is no standard commercial subscription size profile – each commercial solid waste subscriber can select from a range of container sizes, with most of them being larger than the containers used in residential areas. Given this complexity, this Study assumes that the average commercial setout area is twice that of the residential setout area, for 120 square feet. This estimate is likely lower than the average setout area needed in commercial areas and is, therefore, conservative.

Setout Time Usage
Standard residential solid waste collection is performed once weekly. Most residential containers are set out the evening prior to collection and are removed from the public right-of-way the following afternoon.

Thus, for the purposes of this Study, we assume that collection containers are in the public right-of-way for an average of 18 hours per day, one day per week, which amounts to approximately 10.71% of the time (18 hours divided by 24 per day divided by 7 days per week).

Commercial solid waste subscription setout times can vary widely – just as there is no standard commercial subscription size profile, likewise there is no standard collection frequency. Commercial solid waste subscribers can select collection frequency between once and six times per week, and with different frequencies for different waste streams. Given this complexity, this Study assumes that the average commercial collection frequently is twice weekly, 21.43% of the time. As with the setout area, this estimate is likely lower than the average commercial collection frequency and is, therefore, conservative.

Market Value for Use of Public Right-of-Way
To establish the market value for use of the public right-of-way, R3 conducted an online survey of recent purchases of bare land in the City and locally along the I-80 corridor between Hercules and Berkeley. R3 sampled twenty recent sales of bare land in the City, El Sobrante and Rodeo, which were sold for a median of $10.66 per square foot. To that value, R3 added the per square foot value of the City’s street pavement, which is calculated as a function of the total replacement value of the City’s streets ($140,414,777) divided by the area of the streets in square feet (10,290,677) both of which are contained in the City’s 2023-24 Pavement Management Program (PMP) Update (see next section).

The resultant value of the street improvements is $13.64 per square foot, which, when added to the $10.66 market value of bare land, yields $24.31 per square foot. This value is then divided by a rental realization rate of 1.89 (which is based on the estimated ratio of what it costs to purchase a property versus rent it) for a total annual per square foot use charge for the public right-of-way of $12.84. R3 believes this value to be conservative – other methodologies that could have been applied would have resulted in a higher estimated market value for the use of the public right-of-way. For example, had this Study used “parklet rental fee” charges (e.g., use of the public right-of-way for commercial activities like restaurant seating) established in other California communities, with an approximate average annual per

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 9 of 21 square foot value of $15.00 per square foot, the results from this Study would be higher than estimated herein.1
Number of Subscriptions Setting Out Containers
The Contractor reports that there are 5,859 residential and 382 commercial solid waste service subscribers in the City. However, not all subscribers set out their containers in the public right-of-way for collection all the time. To account for non-setouts (either because subscribers don’t have waste materials to set out or because they receive on-premises service) we conservatively assume that only 90% of residential solid waste subscribers set out containers on a regular basis, for a resulting total of 5,273 average residential setouts. This 90% assumption is informed by our work overseeing solid waste collection operations for local governments throughout California; from that experience, we know that almost all residential solid waste customers set out their solid waste containers for collection each week (with the exceptions being when residents are on vacation or generate exceptionally low amounts of waste). The City’s Contractor provides weekly collection of solid waste containers to all residents.

It is also understood that most commercial subscribers do not set out containers in the public right-of-way, and therefore we conservatively assume that only 5% of commercial subscribers set out containers on a regular basis, for a resulting total of 19 average commercial setouts. The assumed 5% set-out rate for commercial customers is almost certainly low – were one to take field observations for these values, we believe that the actual rates of set-out would be higher than used for the purposes of this Study. However, we use the 5% set-out assumption for commercial subscribers in this Study as data regarding use of the public right-of-way by commercial subscribers in the City is not available.

Analysis and Total Annual Property Use Charges
Calculating the total annual Property Use Charges using the variables, estimates, and assumptions from the prior section is a function of multiplication, as shown in Table 4, below.

Table 4: Calculation of Total Annual Property Use Charges Variable Category Residential Commercial
Grand Total Annual
Property Use Charge
Setout Area 60 SF 120 SF
Setout Time Usage 10.71% 21.43%
Annual Use Charge $12.84 per SF $12.84 per SF
Number of Setouts 5,273 19
Total Annual Property
Use Charges $435,248 $6,273 $441,521
1 Had this Study used a $15 per square foot market value for the use of the public right-of-way, the resulting total annual property use charge would have been $515,797 – more than 17 percent higher than the amount used in this Study and shown in Table 4.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 10 of 21 Pavement Impacts
Methodology
R3 reviewed and analyzed information provided by the City pertaining to Pavement Impacts from the Contractor’s solid waste collection vehicles. We then calculated estimates of the proportionate share of the average annual pavement repair, maintenance, and rehabilitation costs associated with solid waste collection vehicles based on the proportionate impact to pavement from solid waste collection vehicle compared to other sources of impacts. Note that this analysis does not include Contractor’s street sweeping vehicles – if those vehicles were included in this analysis, the calculated Pavement Impacts would be slightly higher than shown in this Study.

The calculation accounts for the City’s annual repair costs, five-year projections for capital improvement costs, and five-year projections for annualized growth in deferred maintenance. The calculation also accounts for the high loading and slow speed impacts on pavement associated with solid waste collection vehicles.

The calculation proportionately allocates the average annual pavement management costs to solid waste vehicles based on:
» The equivalent single-axle load and proportionate impacts from speed for those vehicles compared to other vehicles.
» The number of vehicle trips on City streets.
» The proportion of vehicle trips that are made by trucks versus automobiles.2 Variables, Estimates, and Assumptions
The weight, loading, slow speed, and frequent stops that characterize solid waste collection vehicle operations impose unique and quantifiable impacts on the City’s street pavement. It is important to understand that, while calculation of vehicle impacts to pavement can be precise for individual vehicles, out of necessity we made certain assumptions about overall blended pavement impacts associated with several categories of vehicle types for the purposes of this Study. This is because we sought to calculate estimated impacts to all street pavement in the City, covering all vehicle uses, and precise traffic information at that scale is not currently available. Thus, we make informed assumptions regarding several variables necessary for this Study.

For each of these variables, there is a range of potentially reasonable values that may be used. We have selected values at the low end of the range to present findings that conservatively calculate estimated values of the pavement impacts associated with the Contractor’s solid waste collection vehicles during the course of providing sanitation service. Assumptions used are described in the following subsections, which reference sources supporting the summary provided here. We must note that changes in assumptions may result in material changes in calculation results and findings.

Factors Impacting Pavement Conditions
Street pavement repair, maintenance, and rehabilitation needs and their resulting costs are affected by several factors, including vehicle usage and utility cuts (for maintenance and repairs to underground utilities). Environmental conditions such as light and water also contribute to pavement repair, 2 Our analysis accounts for the distribution of vehicles among the 13 Federal Highway Administration vehicle classifications, which include passenger cars, SUVs/pick-ups, buses, and multiple truck and truck/trailer axle combinations.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 11 of 21 maintenance, and rehabilitation needs in combination with the primary impacts from vehicles and trench cuts, and thus not separately accounted for. This Study only focuses on the impacts to street pavement from vehicles, and the proportion of those impacts that are attributable to the Contractor’s solid waste collection vehicles as they perform sanitation service.

City’s Costs for Pavement Repair, Maintenance and Rehabilitation This Study accounts for the City’s annual “light maintenance” costs of pavement repairs for FY 2023-24 in which the City spent approximately $61,589 from the General Fund for street maintenance” activities performed by its Public Works Department. Additionally, the General Fund overhead rate of 10% (for the distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions) is also applied to the total allocated costs for “light maintenance” similarly to other City costs.

The City regularly projects its costs for “heavy maintenance” and rehabilitation of pavement resulting from degradation due to use. These projections, and the basis for them, are documented in the Pavement Management Program Update (PMP) reports which the City commissions with engineering consultants.

Per the City’s March 2024 PMP Update report (scenario 2), the City’s projected average annual pavement “heavy maintenance” and rehabilitation costs from 2024 through 2028 for its entire street network, are approximately $800,000.

City’s Costs Deferred Maintenance
The City regularly projects its costs for repair, maintenance, and rehabilitation of pavement resulting from degradation due to use. These projections, and the basis for them, are documented in the City’s 2024 PMP Update. Per the PMP, deferred pavement maintenance on the City’s streets3 (which is the result of degrading pavement conditions associated with the impacts of vehicles and that is not funded for repair during the planning term) is projected to increase by $18,361,430 between FY 2023-24 and FY 2027-28, which is $3,672,286 per year.4 Deferred maintenance is the result of impacts to pavement that should be subject to repair or rehabilitation, but for which such repair or rehabilitation is not planned due to funding constraints. Though repair or rehabilitation of the deferred maintenance impact is not planned, the pavement condition is impacted, in part due to solid waste collection vehicles and the City must address the deferred maintenance eventually. If deferred maintenance were never to be funded and addressed via repair and rehabilitation, pavement conditions would degrade to the point of being unnavigable by vehicles.

Axle Loading
Our methodology for calculating the proportionate amount of pavement maintenance, and rehabilitation impacts for the Contractor’s vehicles is grounded in the fact that all vehicles, including solid waste collection vehicles, degrade pavement during use. Measurement of that impact – also known as “vehicle loading” – can be estimated, quantified, and expressed as an Equivalent Single Axle Load (ESAL), which is a function of the vehicle’s weight and the distribution of that weight over the vehicle’s axles.

It is important to note that heavier vehicles (including solid waste vehicles) have more impacts on pavement and have a higher vehicle loading ESAL value. It is also important to note that ESAL values are associated 3 Deferred maintenance is planned maintenance that gets delayed and backlogged because of a lack of funding.

Deferred maintenance costs remain on the books until they are funded and the work is completed and recategorized in the City’s PMP.
4 Our analysis assumes funding based on the City’s budgeted pavement maintenance costs as presented in the PMP under Scenario 2 “Expected Annual Budget ($800 thousand)”.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 12 of 21 with vehicle loading only, and not the speed of the vehicle; it is therefore assumed that relative ESAL values between vehicle types are based on vehicles travelling at the same rate of speed.

For this analysis, R3 used the vehicle categories and average ESAL values shown in Table 5, below. Table 5 explains and cites supporting information for how the ESAL for each vehicle type was determined. It should be noted that solid waste collection vehicles are much heavier than most other typical vehicles on City roadways.

Table 5: ESAL Value Assumptions by Vehicle Type
Vehicle Type ESAL
Value Source
Automobiles (Passenger Cars) 0.0008
AASHTO (American Association of State Highway and
Transportation Officials) Design Guide with ESALs by
Vehicle Type
Average of All Other Trucks5 0.0171
Calculated Value Using AASHTO Design Guide with
ESALs by Vehicle Type, Federal Highway Administration
ESALs by Vehicle Type, Comparative Traffic Counts
Solid Waste Vehicle (Garbage) 1.0000
Calculated Values by Type Using Example Axle Weights
and AASHTO Axle Load Equivalency Factors Solid Waste Vehicle (Organics) 1.0000 Solid Waste Vehicle (Recycling) 0.7500
Given the assumed ESAL values in Table 5, a solid waste vehicle collecting garbage has 1,250 times the impact of an automobile. We are aware of other research concluding that the impacts of solid waste collection vehicles may be as high as 8,000-9,000 times the impact of passenger cars; thus, our assumed ESAL of “1” for garbage collection vehicles is on the low end of the range of ESALs for such vehicles.

Speed Impact
Impacts to flexible pavements (which are typical for residential streets) are also influenced by vehicle speeds, with impacts being exponentially higher when a load carrying vehicle is moving at a very slow speed.6 This is demonstrated in Chart 1, on the following page. 5 “All other trucks” means all vehicles with high loading and impact on street pavement other than solid waste vehicles, including pickup trucks, vans, box trucks, and a variety of other trucks with a lower average ESAL than solid waste collection vehicles.
6 Effect of truck speed on the response of flexible pavement systems to traffic loading; International Journal of Pavement Engineering, July 2020; Michael R. S. Mshali and Wynand JvdM. Steyn.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 13 of 21 Chart 1: Exponential Relationship Between Speed and Pavement Impacts Unlike typical traffic on residential streets, which tends to travel at or near the posted speed limit (25 miles per hour [mph] in the City), solid waste vehicles slow and stop for collection in front of each household, averaging approximately 4 mph to 8 mph.7 At these low speeds, and as shown in Chart 1, vehicles have approximately 2.2 to 2.6 times the impact to the pavement than they would travelling only at the 25 mph speed limit.

In this Study we conservatively assume that solid waste vehicles in the City may be travelling at a faster 10 mph average speed, and we thus assume that the relative impact of speed is a factor of 2, not the higher

2.2 to 2.6 factors corresponding with slower speeds as noted above. We apply this speed factor of 2 as a multiplier to the ESAL loading for solid waste collection vehicles in our analysis of impacts to residential streets only; the factor is not applied to the ESAL loading for arterial and collector streets, as those streets are not typically comprised of flexible pavements, solid waste collection vehicles stop less frequently on those streets (and thus have a higher average speed).

Vehicle Passes Per Day
By estimating the number and type of vehicles (i.e., solid waste collection vehicles, automobiles, and all other trucks) that travel on a street, and the average pavement impacts (measured in ESAL loading) associated with each vehicle type (described in the prior subsection), the total impacts that the pavement will experience can be estimated in a mathematical calculation. Our analysis makes informed assumptions about the number of vehicle passes (meaning trips down streets) by type for the two major types of streets identified by the City in its PMSU. Those two types of streets are: high-traffic-volume streets (namely arterial and collector streets) and low-traffic-volume streets (residential streets). Specific data for the City relating to the number of vehicle passes per day and the proportion of those passes that are comprised of trucks was not available for this Study.

For the low-traffic residential streets, we used an estimate of 582 vehicle passes per day based on City traffic counts. We also estimated that 5% of residential traffic trips were made by trucks, which we believe 7 Real-world activity, fuel use, and emissions of heavy-duty compressed natural gas refuse trucks; Science of the Total Environment 761, 2021; Gurdas S. Sandhu, H. Christopher Frey, Shannon Bartelt-Hunt, Elizabeth Jones.

0.00 0.50

1.00 1.50

2.00 2.50

3.00 3.50
0 2 4 6 8 10 12 14 16 18 20 22 24 26
Relative Impact
Average Speed (MPH)

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 14 of 21 to be a conservative assumption – in communities where traffic trip information by vehicle type is available, the result is less than 5%, which yields a greater proportionate impact from solid waste vehicles.

For arterial and collector streets, we used an estimate of 14,972 passes per day based on City traffic counts.

For the percentage of those trips that are trucks, we started with a calculated value based on comparative traffic counts from the City of Torrance in 2023 and which is the same dataset that we used to estimate the average ESAL for “All other trucks” in Table 5. That analysis calculates the average daily traffic counts for all vehicles on commercial streets in that city, with 87.7% of the average daily traffic count being comprised of passenger cars and motorcycles and the remaining 12.3% being comprised of trucks. For the purposes of this Study, we have assumed an even higher percentage of arterial and collector street traffic being trucks, at 15% of the average daily traffic. As with the prior assumptions, this value is conservative in that it returns a low proportionate value for the impacts to streets from the Contractor’s solid waste vehicles.

Table 6, below, is a summary of the assumptions used in this Study related to average daily vehicles passes and the percentage that are trucks assumptions used in this Study.

Table 6: Vehicle Passes Per Day by Street Type
Street Type Vehicle Passes Per Day Percentage of Vehicle Passes That Are Trucks
Residential 582 5%
Arterial and Collector 14,972 15%
Vehicle Passes By Vehicle Type
The variables described in the prior subsection provide the overall number of vehicle passes per day, and the percentage of those passes that are trucks. To isolate the vehicle loading impacts to pavement associated with solid waste collection vehicles, we need to determine the number of passes that those vehicles make per day. This is a relatively simple calculation based on the weekly schedule of collections for solid waste collection services.

For the low-traffic residential streets, solid waste collection operations are on a weekly schedule. Since weekly collections are on both sides of the street, each street is driven twice (once in each direction) by a minimum of one of each type of solid waste collection vehicle. For the purposes of this Study, we assume that each solid waste collection vehicle makes two passes per week, or 0.286 passes per day, on residential streets. This value does not account for the fact that some streets are driven on during nonroute days so that collection vehicles can access streets on a given route, meaning that the actual average passes per week in the City must be higher than stated above.

Using the lower passes per week is conservative in that it returns a lower result for the street impacts from the Contractor’s solid waste vehicles. For the high-traffic arterial and collector streets, which are primarily commercial, the schedule for solid waste collection can vary. Solid waste collection services may be provided up to five or six times a week for larger waste generators and may be as low as weekly for smaller generators. Additionally, because solid waste generators in commercial areas are not all on the same collection schedules as residential accounts are, vehicles in commercial areas pass over the same streets multiple times to serve accounts with different collection schedules.

For the purposes of this Study, for arterial and collector streets, we assume that solid waste collection vehicles collecting garbage for landfill disposal pass over each street two times per day (once in each direction), while solid waste collection vehicles for organics and recycling pass over each street once per day (one half in each direction). Total passes for organics and recycling collection vehicles are less because it is generally the case that service levels for garbage are at least twice those of the corresponding organics or recycling service level. As with the number of passes on residential streets, this value does not account for the fact that some streets are driven on during non-route days so that

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 15 of 21 collection vehicles can access streets on a given route, meaning that the actual average passes per week in the City must be higher than stated above. Using the lower passes per week is conservative in that it returns a lower result for the pavement impacts from the Contractor’s solid waste vehicles.

The number of passes per day for the remaining vehicle types – automobiles and other trucks – are simply calculated as a function of the total number of daily passes, the total number of those that are trucks (based on the percentages discussed in the prior section), and the number of passes for solid waste collection vehicles. For example, for the City’s residential streets, given the assumed 582 passes per day and 5% (29) of those being trucks, there are 553 automobile passes per day (582 x 95%). With three types of solid waste collection vehicles each passing 0.286 times per day (as described above), the total passes per day are 0.857 (3 x 0.286). The number of passes for all other trucks is 28.243 (29 minus

0.857). Table 7, below, provides a summary of vehicle passes per day by street type.

Table 7: Vehicle Passes Per Day by Vehicle Type and Street Type Vehicle Type Residential Streets Arterial and Collector Streets Automobiles (Passenger Cars) 552.900 12,726.509
Average of All Other Trucks 28.243 2,242.997
Solid Waste Vehicle (Garbage) 0.286 1.429
Solid Waste Vehicle (Organics) 0.286 0.714
Solid Waste Vehicle (Recycling) 0.286 0.714
Total 582 14,972
Percentage of Streets by Type
A final variable that needs to be addressed is the percentage of streets by type. This information is included in the City’s PMSU, including the relative area by street type, as shown in Table 8, below.

Table 8: Percentage of Streets by Type
Street Type Area (Square Feet) Percentage of Area
Residential 6,511,401 63.3%
Arterial 2,113,863 20.5%
Collector 1,665,413 16.2%
Total 10,290,677 100%

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 16 of 21 Analysis
Percentage Impact for Solid Waste Vehicles by Street Type With the variables for ESAL by vehicle type, the multiplication factor for the relative impacts of speed for solid waste collection vehicles on residential streets, and the number of passes by vehicle type established, we then calculate the relative percentage impact associated with each vehicle type. This is calculated as a function of ESAL multiplied by speed factor (residential streets only) multiplied by the number of weekly passes, multiplied by ESAL, with the product being the total vehicle loading pavement impact by vehicle type per week.

Totaling the weekly total vehicle loading by vehicle types yields the total estimated loading experienced by each street type (residential vs. arterial and collector). From there, we calculate the percentage contribution to total vehicle loading for solid waste collection vehicles, which is the total weekly ESAL loading associated with solid waste collection vehicles divided by the total ESAL loading for the street.

Table 9, below, and Table 10, on the following page, show these calculations and the results.

Table 9: Calculation of Solid Waste Pavement Impacts – Residential Streets

A B C D E F
Vehicle Type
Average
ESAL /
Vehicle
(Per Table
5)
Relative
Impact
from
Speed
Passes /
Day /
Vehicle
Type
(Per Table
7)
Passes /
Week /
Vehicle
Type
(C x 7)
Total
Weekly
ESAL
Loading
(A x B x D)
Percent of
Total
ESAL
Loading
(E / 17.48)
Automobiles 0.0008 1x 552.900 3,870 3.10 17.72%
All Other Trucks 0.0171 1x 28.243 198 3.38 19.34%
Garbage Vehicles 1.0000 2x 0.286 2 4.00 22.89%
Organic Material Vehicles 1.0000 2x 0.286 2 4.00 22.89% Recycling Vehicles 0.7500 2x 0.286 2 3.00 17.17%
Total 582 4,074 17.48 100%
As shown in Table 9, for the City’s residential streets we calculated the percentage impacts for solid waste vehicles to be 62.94% of total impacts to residential street pavement (22.89% times 2 plus 17.17%).

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 17 of 21 Table 10: Calculation of Solid Waste Vehicle Impacts – Arterial and Collector Streets

A B C E F
Vehicle Type
Average
ESAL /
Vehicle
(Per Table 5)
Passes /
Day /
Vehicle Type
(Per Table 7)
Passes /
Week /
Vehicle Type
(B x 7)
Total Weekly
ESAL
Loading
(A x C)
Percent of
Total ESAL
Loading
(E / 358.51)
Automobiles 0.0008 12,726.509 89,086 71.27 19.88%
All Other Trucks 0.0171 2,242.997 15,701 268.49 74.89%
Garbage Vehicles 1.0000 1.429 10 10.00 2.79%
Organic Material Vehicles 1.0000 0.714 5 5.00 1.39%
Recycling Vehicles 0.7500 0.714 5 3.75 1.05%
Total 14,972 104,807 358.51 100%
For the City’s arterial and collector streets, Table 10 calculates the percentage impact from solid waste vehicles to be 5.23% of the total impacts (2.79% plus 1.39% plus 1.05%).

Sources of Pavement Impacts
The City’s projected pavement maintenance repair needs are assumed to include impacts to pavement caused by vehicles and utility cuts. This Study assumes that the impacts of utility cuts on the City’s streets to be 10% of all pavement repair, maintenance, and rehabilitation needs. Thus, this Study allocates 90% of the average annual pavement repair, maintenance, and rehabilitation needs to vehicle impacts.

The 10% assumption for the value of impacts related to utility cuts is, in part, based on experience working in local government street maintenance operations, wherein pavement repair and rehabilitation needs for utility cuts were a fraction of overall pavement repair and rehabilitation needs. The 10% assumption if further informed by the Federal Highway Administration’s Manual for Controlling and Reducing the Frequency of Pavement Utility Cuts8 which references a case study from the District of Columbia in 1996 wherein “the combined area of the utility cuts in the District was over one percent of the total pavement surface area.” This Study further considers that the costs to repair and rehabilitate pavement that has been impacted by utility cuts is approximately double the costs to repair and rehabilitate pavement without utility cuts.9 Taken together, the 10% assumption for the pavement repair and rehabilitation amount associated with utility cuts used in this Study contemplates up to 5% of pavement service area being affected by utility cuts (nearly five times the area cited in the Federal Highway Administration Manual) at double the repair and rehabilitation costs for pavement not affected by 8 https://www.fhwa.dot.gov/utilities/utilitycuts/man01.cfm 9 Analysis of the Impact of Utility Cuts on Rehabilitation Costs in Santa Cruz County, CA; November 2002; Shahin & Associates Pavement Engineering.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 18 of 21 utility cuts. The results of the 10% assumption for the impacts of utility cuts is demonstrated in Table 11, below.10

Table 11: Average Annual Pavement Impacts from Vehicles Category Amount of Impacts
from All Sources
Reduction for Utility
Cuts
Amount of Impacts
from Vehicles
Average Annualized
Repair $861,589 -10% $775,430
Average Annualized
Deferred Maintenance $3,672,286 -10% $3,305,057
Total $4,533,875 -10% $4,080,488
Table 12, below, shows the breakdown of the average annual pavement impacts from all vehicles by street type, using the total from Table 11.

Table 12: Total Pavement Impacts from Vehicles by Street Type Variable Residential Arterial and Collector Total
Percentage of Streets
by Type (From Table 8) 63.3% 36.7% 100%
Total $2,581,919 $1,498,569 $4,080,488
Total Annual Pavement Impacts
Calculating the total annual Pavement Impacts using the variables, estimates, and assumptions from the prior section is a function of multiplication, as shown in Table 13, on the following page. 10 R3 is aware of a Study conducted by another consultant that found a higher percentage for the impacts of trench cutting (i.e., 25%). R3 has not had opportunity to review that study or the basis its conclusion. However, if this Study were to have used a 25% factor for the impacts of trench cutting, rather than 10%, the result would not change our ultimate findings. This is because using a 25% factor rather than a 10% factor would result in a reduction in the value of the total pavement impacts from Contractor’s vehicles shown in Table 13 by $678,234.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 19 of 21 Table 13: Calculation of Total Pavement Impacts from Contractor’s Vehicles Variables Residential Arterial and Collector
Grand Total
Annual Pavement Impacts
from Vehicles (From
Table 12)
$2,581,919 $1,498,569
Percentage Impacts from
Contractor’s Vehicles
(From Tables 9 and 10)

62.94% 5.23%
Total $1,625,065 $78,376 $1,703,440

3. FINDINGS & CONCLUSIONS
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 20 of 21 Franchise Fee
» The FY 2022-23 Franchise Fee paid to the City was $407,921 and the FY 2023-24 amount was $432,818.
» R3 calculated estimates of the City’s Costs and Property Use Charges based on actual and estimated cost information provided by the City, and with conservative assumptions for estimated values. The sum of FY 2023-24 annual City’s Costs ($574,529) and Property Use Charges ($441,521) calculated in this Study is $1,016,050. » Where assumptions were necessary to complete the analysis in this Study, attempts were made to apply conservative assumptions given a range of possible inputs. » The City’s Costs have been reviewed and confirmed by City staff as being representative of the actual time and costs incurred for these activities. Amounts of Property Use Charges are proportionately allocated to the Contractor with due recognition of the realities of the Contractor’s operations.
» The amounts calculated in this Study are $521,152 (51%) higher than the projected FY 2023-24 Franchise Fee payments.
» The Franchise Fee therefore is not more than necessary to cover the City’s costs incurred in managing and administering the Agreement and the sanitation system plus the value of the Contractor’s use of the public right-of-way. » R3 also calculated estimates for SB 1383/AB 939 related program compliance costs of $73,486.

The AB 939 Fess paid to the City were $62,080 in FY 2023-24. » The AB 939 Fee therefore is not more than necessary to cover the City’s costs incurred in complying with AB 939.
» R3 also calculated estimates of the Pavement Impacts from Contractor’s solid waste collection vehicles based on quantifiable impacts from such vehicles. The amount of annual Pavement Impacts calculated in this Study is $1,703,440.

4. RECOMMENDATIONS
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 21 of 21 Annual Adjustments
All values calculated in this Study are in current FY 2023-24 dollars. Given that the City’s Costs, Property Use Charges, and Pavement Impacts will all tend to change over time in response to changing staffing, benefits, and other costs, it would be appropriate for the City to implement an annual adjustment to the Franchise Fee.

R3 recommends the City consider including an automatic annual adjustment that would change the fee in proportion to the percentage change in the Consumer Price Index (CPI).

Sources and Uses Accounting
Currently, the City’s Costs, Property Use Charges, and Pavement Impacts are not tied to Franchise Fee revenues in the City’s accounting system. The City could implement project code accounting and/or enterprise fund accounting for the Franchise Fee to better track source revenues and their uses. In either case, allocated and/or direct staffing and other costs could be tied to source revenues, while the Property Use Charges could be transferred out for general use.

R3 recommends the City consider implementing sources and uses accounting practices for Franchise Fee revenues, City’s Costs, Property Use Charges, and Pavement Impacts.

Periodic Recalculation
Over time, the City’s Costs associated with the Agreement and the sanitation system, the value of Property Use Charges for use of the public right-of-way, and the annualized costs associated with Pavement Impacts from the Contractor’s solid waste collection vehicles may change in ways that vary from the annual change in the CPI. Additionally, changes in City policies, programs, procedures, organization, geopolitical boundaries, laws, regulations, court rulings, and/or other factors may also trigger a need for recalculating fees.

R3 recommends the City consider updating this Study periodically (e.g., every five years) or more frequently if needed to recalculate fees in response to other factors.

Vehicle Impact Fees
As described in this Study, solid waste collection vehicles account for up to $1,703,440 of annual damage to the City’s street system. Should the City elect to implement a new Vehicle Impact Fee, we would recommend that the amount be considerably less than the amount calculated in the Study to be conservative given the unsettled legal landscape.

DRAFT 04/21/25
1 2
3 4
5 DRAFT SOLID WASTE FRANCHISE AGREEMENT
6 7 Executed Between the
8 City of Pinole
9 and
10 Richmond Sanitary Service, Inc., dba as Republic
11 Services
12 13 This ___ day of ______ 2025
14

DRAFT 042525 Page 2 of 134
16 TABLE OF CONTENTS
17 Solid Waste Franchise Agreement
18 19 Table of Contents
20 Article 1. Definitions..................................................................................................................6 21 Article 2. Term of Agreement..................................................................................................19 22 Article 3. Conditions Governing Services Provided by Contractor .........................................19 23 Article 4. Franchise Fees and Payments................................................................................21 24 Article 5. General Requirements ............................................................................................23 25 Article 6. Collection Service Rates .........................................................................................30 26 Article 7. Collection Service Billing .........................................................................................34 27 Article 8. Diversion Requirements ..........................................................................................36 28 Article 9. Service Unit Types ..................................................................................................38 29 Article 10. Residential Service................................................................................................39 30 Article 11. MFD Service..........................................................................................................45 31 Article 12. Commercial Service ..............................................................................................52 32 Article 13. Industrial Service ...................................................................................................58 33 Article 14. City Services..........................................................................................................59 34 Article 15. Additional Services ................................................................................................62 35 Article 16. Collection Routes ..................................................................................................64 36 Article 17. Minimum Performance Standards .........................................................................64 37 Article 18. Collection Equipment.............................................................................................67 38 Article 19. Contractor’s Office.................................................................................................70 39 Article 20. Contractor Support Services .................................................................................71 40 Article 21. Emergency Service ...............................................................................................78 41 Article 22. Record Keeping and Reporting Requirements......................................................79 42 Article 23. Nondiscrimination ..................................................................................................85 43 Article 24. Service Inquiries and Complaints ..........................................................................86 44 Article 25. Quality of Performance of Contractor ....................................................................87 45 Article 26. Performance Bond.................................................................................................88 46 Article 27. Insurance...............................................................................................................89 47 Article 28. Hold Harmless and Indemnification.......................................................................91 48 Article 29. Default of Agreement.............................................................................................95 49 Article 30. Modifications to the Agreement .............................................................................97 50 Article 31. Legal Representation ............................................................................................97 51 Article 32. Conflict of Interest..................................................................................................98 52 Article 33. Contractor's Personnel ..........................................................................................98 53 Article 34. Exempt Waste .......................................................................................................99 54 Article 35. Independent Contractor.........................................................................................99 55 Article 36. Laws to Govern ...................................................................................................100 56 Article 37. Consent to Jurisdiction ........................................................................................100

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57 Article 38. Assignment..........................................................................................................100 58 Article 39. Compliance with Laws.........................................................................................101 59 Article 40. Permits and Licenses ..........................................................................................101 60 Article 41. Ownership of Written Materials ...........................................................................101 61 Article 42. Waiver .................................................................................................................101 62 Article 43. Prohibition Against Gifts ......................................................................................102 63 Article 44. Point of Contact ...................................................................................................102 64 Article 45. Notices.................................................................................................................102 65 Article 46. Transition to Next Contractor...............................................................................103 66 Article 47. Contractor’s Records...........................................................................................103 67 Article 48. Entire Agreement.................................................................................................104 68 Article 49. Severability ..........................................................................................................104 69 Article 50. Right to Require Performance .............................................................................104 70 Article 51. All Prior Agreements Superseded .......................................................................105 71 Article 52. Headings .............................................................................................................105 72 Article 53. Exhibits ................................................................................................................105 73 Article 54. Attorney’s Fees....................................................................................................105 74 Article 55. Commencement Date..........................................................................................105 75 Exhibit 1 Maximum Service Rates ........................................................................................107 76 Exhibit 2 List of City Facilities ...............................................................................................110 77 Exhibit 3 Collection Container Specifications .......................................................................111 78 Exhibit 4 Administrative Charges and Penalties ...................................................................114 79 Exhibit 7 Processing and Disposal Facilities ........................................................................127 80 Exhibit 8 Sustainability and Compliance Plan .......................................................................129 81 Exhibit 9 Education and Outreach Plan ................................................................................132 82 Exhibit 10 Acceptable Recyclable Materials ..........................................................................134 83

DRAFT 042525 Page 4 of 134
84 This Solid Waste Franchise Agreement (“Agreement”) is hereby entered into by and between the 85 City of Pinole, a general law city existing under the laws of the State of California (“City”), and Richmond 86 Sanitary Service, Inc., a California municipal corporation ("RSS", or "Contractor"), a wholly owned 87 subsidiary of Republic Services, Inc., a Delaware corporation, collectively the "Parties." as of ______, 2025, 88 under the terms and conditions set forth herein.

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89 RECITALS
90 The Legislature of the State of California, by enactment of the California Integrated Waste 91 Management Act of 1989 (the “Act”) and subsequent additions and amendments (codified at California 92 Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and 93 require local agencies to make adequate provisions for garbage collection within their jurisdiction. 94 The State of California has found and declared that the amount of garbage generated in California, 95 coupled with diminishing landfill space and potential adverse environmental impacts from landfilling and the 96 need to conserve natural resources, have created an urgent need for State and local agencies to enact and 97 implement an aggressive integrated waste management program. The State has, through enactment of the 98 Act, directed the responsible State agency, and all local agencies, to promote disposal site diversion and 99 to maximize the use of feasible garbage reduction, re-use, recycling, and composting options to reduce the 100 amount of garbage that must be disposed of in disposal sites. 101 Pursuant to its Municipal Code and California Public Resources Code Section 40059(a) as may be 102 amended from time to time, City has determined that the public health, safety, and well-being require that 103 an exclusive right be awarded to a qualified contractor to provide for the collection of garbage, recyclable 104 materials, and organic waste materials, except for collection of materials excluded in City’s Municipal Code, 105 and other services related to meeting the Act’s fifty percent (50%) diversion goal and other requirements of 106 the Act.
107 City further declares its intent to regulate and set the maximum rates. Contractor may charge 108 Service Recipients for the collection of garbage, recyclable materials, and organic waste materials. 109 The City Council has determined that Contractor, by demonstrated experience, reputation, and 110 capacity, is qualified to provide for the collection of garbage, recyclable materials, and organic waste 111 materials within the corporate limits of City and the transportation of such material to appropriate places for 112 processing, recycling, composting, and/or disposal; and City Council desires that Contractor be engaged 113 to perform such collection services on the basis set forth in this Agreement; and Contractor has represented 114 that it has the ability and capacity to provide for the collection of garbage, recyclable materials, and organic 115 waste materials within the corporate limits of City and the transportation of such material to appropriate 116 places for processing, recycling, composting, and/or disposal. 117 By Resolution No. ___, the City Council of City duly approved this Agreement, together with the 118 Franchise Fee, Contractor payments to City, and other City-imposed fees provided for in the Agreement 119 (collectively “City-Imposed Fees”), and found and determined that such City-Imposed Fees were both 120 necessary and reasonably reflect, or are less than, the actual costs City that will incur in the administration 121 of the contracted services, compliance with mandatory State laws and regulations related to the contracted 122 services, and to mitigate the impacts contracted services will have on City streets. 123

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124 OPERATIVE PROVISIONS
125 Now, therefore, in consideration of the mutual covenants, agreements, and consideration contained 126 in this Agreement, City and Contractor agree as follows:
127 Article 1. Definitions
128 For the purpose of this Agreement, the definitions contained in this Article apply unless otherwise 129 specifically stated. When not inconsistent with the context, words used in the present tense include the 130 future, words in the plural include the singular, and words in the singular include the plural. Use of the 131 masculine gender includes the feminine gender. The meaning of terms or words not defined in this Article 132 will be as defined in the Integrated Waste Management Act, or if not defined therein, then as commonly 133 understood in the Solid Waste Collection industry when the common understanding is uncertain. 134 1.01 AB 341. “AB 341” means State of California Assembly Bill No. 341 approved October 5, 135 2011. AB 341 requires businesses, defined to include commercial or public entities that generate more than 136 4 cubic yards of commercial Solid Waste per week or multifamily residential dwellings of 5 units or more, to 137 arrange for Recycling services and require jurisdictions to implement a commercial Solid Waste Recycling 138 program.
139 1.02 AB 827. “AB 827” means State of California Assembly Bill No. 827 approved October 02, 140 2019. AB 827 requires businesses that are mandated to recycle under AB 341 (“MCR”) and/or mandated to 141 recycle Organic Waste under AB 1826 (“MORe”) or SB 1383 and that provide customers access to the 142 business, to provide customers with a Recyclable Materials bin and/or Organic Waste Collection bin for those 143 waste streams that is visible, easily accessible, and adjacent to each Bin or Container for trash. 144 1.03 AB 939. “AB 939” or “The Act” means “The California Integrated Waste Management Act 145 of 1989”, codified in part in Public Resources Code §§ 40000 et seq., and such regulations adopted by 146 California Department of Resources Recycling and Recovery (CalRecycle) for implementation of the Act, or 147 its successor agency, including but not limited to, the Jobs and Recycling Act of 2011 (AB 341), SB 1016 148 (Chapter 343, Statues of 2008 [Wiggins, SB 1016]), and the Mandatory Commercial Organics Recycling Act 149 (AB 1826).
150 1.04 AB 1594. “AB 1594” means State of California Assembly Bill No. 1594, approved 151 September 28, 2014. AB 1594 provides that as of January 1, 2020, the use of green material as Alternative 152 Daily Cover does not constitute Diversion through Recycling and would be considered Disposal. 153 1.05 AB 1826. “AB 1826” means State of California Assembly Bill No. 1826, approved 154 September 28, 2014. AB 1826 requires each jurisdiction, on and after January 1, 2016, to implement an 155 Organic Waste Recycling program to Divert from the landfill Organic Waste from businesses. Each business 156 meeting specific Organic Waste or Solid Waste generation thresholds phased in from April 1, 2016, to January 157 1, 2020, is required to arrange for Organic Waste Recycling services. 158 1.06 AB 3036. “AB 3036” means State of California Assembly Bill No. 3036, approved 159 September 27, 2018. AB 3036 prohibits a County, City, District, or local government agency from subjecting

DRAFT 042525 Page 7 of 134
160 the hauling of certain byproducts from the processing of food or beverages to an exclusive franchise, contract, 161 license, or permit.
162 1.07 Administrative Charges and Penalties. “Administrative Charges and Penalties” means 163 those charges listed in Exhibit 4 to this Agreement. 164 1.08 Agreement. “Agreement” means the written Solid Waste Franchise Agreement between 165 the City and the Contractor covering the work to be performed, as well as all contract documents attached to 166 the agreement and made a part thereof.
167 1.09 Agreement Administrator. “Agreement Administrator” means the City Manager, or his or 168 her designee, designated to administer and monitor the provisions of the Agreement. 169 1.10 Agreement Year. “Agreement Year” means each twelve (12) month period from July 1 to 170 June 30 during the Term of this Agreement.
171 1.11 Alternative Fuel Vehicle. “Alternative Fuel Vehicle” means a vehicle whose engine uses a 172 fuel other than gasoline or diesel fuel, such as compressed natural gas (CNG) or other fuel with comparably 173 low emissions of air pollutants regulated under the California Clean Air Act, Health, and Safety Code Section 174 39000 et seq. or the South Coast Air Quality Management District’s rules and regulations including Rule 1193. 175 1.12 Applicable Law. “Applicable Law” shall mean all Federal, State, county, and local laws, 176 regulations, rules, orders, judgments, decrees, permits, approvals, or other requirements of any governmental 177 agency having jurisdiction over an aspect of this Agreement that are in force on the Effective Date, and as 178 may be enacted, issued, or amended thereafter, including, without limitation, the City’s Municipal Code, the 179 California Integrated Waste Management Act of 1989 (Public Resources Code Section 40000 et seq.) as 180 amended as of the Effective Date, inclusive (without exclusion to other amendments not referenced here) of 181 AB 939, AB 341, AB 1826, AB 1594, SB 1383, and inclusive of all regulations implementing the same. 182 1.13 Bin. “Bin” means a metal or plastic waste Container designed or intended to be 183 mechanically serviced by a commercial front-end loader vehicle. It shall be designed to hold from one (1) to 184 six (6) cubic yards of material with the lid properly closed. The specifications for Contractor-provided Bins are 185 set forth in Exhibit 3.
186 1.14 Biohazardous or Biomedical Waste. “Biohazardous or Biomedical Waste” means any 187 waste which may cause disease or reasonably be suspected of harboring pathogenic organisms; included 188 are waste resulting from the operation of medical clinics, hospitals, and other facilities processing wastes, 189 which may consist of, but are not limited to, human and animal parts, contaminated bandages, pathological 190 specimens, hypodermic needles, sharps, contaminated clothing, and surgical gloves. 191 1.15 Bulky Waste. “Bulky Waste” means furniture, household appliances, automobile tires, 192 shipping crates and containers, carpets, mattresses, oversized yard waste such as tree trunks and large 193 branches if no larger than two feet in diameter and four feet in length, and similar large bulky or heavy items 194 not normally discarded on a regular basis at a residential, commercial, or business establishment and which 195 do not fit in a regular Collection Container and require special handling due to their size but can be Collected

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196 and transported without the assistance of special loading equipment (such as forklifts or cranes) and without 197 violating vehicle load limits. “Bulky Items” do not include Construction and Demolition Debris or Electronic 198 Waste, the latter of which is regarded as Universal Waste and the Disposal of which is governed by the 199 Department of Toxic Substances Control.
200 1.16 Business Day. “Business Day” means any Monday through Friday, excluding any holidays 201 as defined in Section 1.56.
202 1.17 Calendar Year. “Calendar Year” means each twelve (12) month period from January 1 to 203 December 31.
204 1.18 Cart. “Cart” means a heavy plastic receptacle with a rated capacity of at least twenty (20) 205 and not more than one hundred (100) gallons, having a hinged tight-fitting lid and wheels, that is provided by 206 the Exclusive Franchise Solid Waste Contractor, approved by the City, and used by Service Recipients for 207 Collection, accumulation, and removal of Solid Waste from commercial, industrial, or residential Premises in 208 connection with Exclusive Franchised Solid Waste Collection. The specifications for Contractor-provided 209 Carts are set forth in Exhibit 3.
210 1.19 CERCLA. “CERCLA” means the Comprehensive Environmental Response, Compensation 211 and Liability Act of 1980, 42 U.S.C. Sections 9601 and following, as may be amended and regulations 212 promulgated thereunder.
213 1.20 Change in Law. “Change in Law” means the occurrence of any of the following events after 214 the Effective Date, when such event has a material and adverse effect on the Parties’ responsive obligations 215 or the performance of their respective obligations under this Agreement (except for any payment obligations):
216 (i) the enactment, adoption, promulgation, amendment, repeal, judicial interpretation, or formal administrative 217 interpretation of any Applicable Law; (ii) the issuance of any order or judgment of any Federal, State, or local 218 court or agency in a proceeding to which a Party is a party, but not to the extent such order or judgment finds 219 the Party asserting there to have been a Change in Law to have been negligent or otherwise at fault; or (iii) 220 the denial, suspension, or termination of any government permit or other entitlement, but not to the extent 221 such denial, suspension, or termination is the result of any act or omission of the Party asserting there to 222 have been a Change in Law.
223 1.21 City. “City” means the City of Pinole, California, including any unincorporated areas of the 224 County that may be annexed by the City during the Initial Term and all extensions. 225 1.22 City Collection Service. “City Collection Service” means City Clean-up Services, City 226 Garbage Collection Service, Bulky Waste Collection Services, City Organic Waste Collection Service, City 227 Recyclable Materials Service, and City-Sponsored Events Services as more particularly described 228 immediately below.
229 A. City Clean-up Services. On-call City requested Collection from Agreement 230 Administrator to support City services and operations.

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231 B. City Garbage Collection Service. The Collection of Garbage, by Contractor, from 232 City Service Units in the Service Area, and the delivery of that Garbage to the Disposal Facility. 233 C. City Bulky Waste Collection Service. The periodic on-call Collection of Bulky Waste, 234 by Contractor, from City Service Units in the Service Area, and the delivery of that Bulky Waste to the 235 Disposal Facility, Materials Recovery Facility, or such other facility as may be appropriate under the terms 236 of this Agreement.
237 D. City Organic Waste Collection Service. The Collection of Organic Waste, by 238 Contractor, from City Service Units in the Service Area, and the delivery of those Organic Waste materials 239 to the Organic Waste Processing Facility.
240 E. City Recyclable Materials Service. The Collection of Recyclables Materials by the 241 Contractor from City Service Units in the Service Area, and the delivery of those Recyclable Materials to the 242 Materials Recovery Facility.
243 F. City-Sponsored Event Services. On-call Collection Services at City-Sponsored 244 Events.
245 1.23 City Facility. “City Facility(ies)” means any building or other site that the City owns, leases, 246 or occupies that are listed in Exhibit 2.
247 1.24 City Manager. “City Manager” means the City Manager of the City of Pinole, or his or her 248 designated representative, or any employee of the City who succeeds to the duties and responsibilities of the 249 City Manager.
250 1.25 Collect and Collection and Collected. “Collect”, “Collection”, and “Collected” all refer to the 251 removal of Solid Waste from a Service Unit and transportation to the Disposal Facility, Organic Waste 252 Processing Facility, Materials Recovery Facility, or Transfer Station, as appropriate. 253 1.26 Collection Container. “Collection Container” means a Bin, Cart, Debris Box or Roll-Off 254 Container that is approved by the Agreement Administrator for use by Service Recipients for Collection 255 Services under this Agreement.
256 1.27 Collection Services. “Collection Services” means Contractor’s obligations under this 257 Agreement to Collect Solid Waste within the Service Area. Collection Service includes Residential Collection 258 Service, Multi-Family Dwelling (MFD) Collection Service, Commercial Collection Service, and City Collection 259 Service.
260 1.28 Collection Vehicle. “Collection Vehicle” means a licensed vehicle that has all required 261 licenses to provide Collection Service and that has been approved by the Agreement Administrator for use 262 under this Agreement.
263 1.29 Commencement Date. “Commencement Date” shall mean July 1, 2025, as specified in 264 Section 2.01 of this Agreement.

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265 1.30 Commercial Collection Service. “Commercial Collection Services” means Collection 266 Service provided to Commercial Service Units. Commercial Collection Service specifically includes the 267 following:
268 A. Commercial Garbage Collection Service. The Collection of Garbage by Contractor 269 from Commercial Service Units in the Service Area, and the delivery of that Garbage to the Disposal 270 Facility.
271 B. Commercial Organic Waste Collection Service. The Collection of Organic Waste, 272 by Contractor, from Commercial Service Units in the Service Area and the delivery of those Organic Waste 273 materials to the Organic Waste Processing Facility. 274 C. Commercial Recyclable Materials Collection Service. The Collection of Recyclable 275 Materials, by Contractor, from Commercial Service Units in the Service Area, and the delivery of those 276 Recyclable Materials to the Materials Recovery Facility. 277 1.31 Compactor. “Compactor” means any Collection Container which has a compaction 278 mechanism, whether stationary or mobile.
279 1.32 Compost. “Compost” means the act or product of the controlled biological decomposition 280 of Organic Wastes that are Source Separated or are separated at a centralized facility. Compost may also 281 include the product of anaerobic digestion or other conversion technologies. 282 1.33 Construction and Demolition Debris. “Construction and Demolition Debris” means 283 discarded materials removed from Premises, resulting from construction, renovation, remodeling, repair, 284 deconstruction, or demolition operations on any pavement, house, commercial building, or other structure or 285 from landscaping. Such materials include, but are not limited to: “inert wastes” as defined in Public Resources 286 Code Section 41821.3(a)(1) (rock, concrete, brick, sand, soil, ceramics and cured asphalt); gravel; plaster; 287 gypsum wallboard; aluminum; glass; plastic pipe; roofing material; carpeting; wood; masonry; trees; remnants 288 of new materials, including paper, plastic, carpet scraps, wood scraps, scrap metal, building materials, and 289 packaging; and rubble resulting from construction, remodeling, renovation, repair and demolition operations 290 on pavements, houses, commercial buildings, and other structures. 291 1.34 Consumer Price Index (CPI). “CPI” means both the index sets published by the United 292 States Department of Labor, Bureau of Labor Statistics and, more specifically, Consumer Price Index series 293 CUSR0000SEHG, Water and Sewer and Garbage Collection Services in U.S. city average, all urban 294 consumers, seasonally adjusted.
295 1.35 Container. “Container" means a Collection Container. 296 1.36 Contaminant. “Contaminant” means any material or substance placed into or found in a 297 Collection Container, other than the type of Source Separated material for which that Collection Container is 298 intended or reserved. For example, anything that is not Recyclable Materials is a Contaminant if placed into 299 or found in a Recyclable Materials Collection Container. Similarly, anything that is not Organic Waste is a 300 Contaminant if placed into or found in an Organic Waste Collection Container.

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301 1.37 Contractor. “Contractor” means Republic Services, which has entered into this Agreement. 302 1.38 County. “County” means Contra Costa County, California. 303 1.39 Customer. “Customer" means the owner, occupant, or user of Premises at which Solid 304 Waste is generated and then Collected by Contractor. Customers include Residential Customers, MFD 305 Customers, and Commercial Customers. City is also a receiver of Collection Services, but not a Customer. 306 1.40 Dispose or Disposal. “Disposal” or “Dispose” means the final disposition of Solid Waste at 307 a permitted landfill or other permitted Solid Waste Disposal facility, as defined in California Public Resources 308 Code Section 40192(b).
309 1.41 Disposal Facility. “Disposal Facility” means the permitted place or places listed in Exhibit 7 310 for the Disposal of Garbage or other materials as appropriate and acceptable. 311 1.42 Diversion or Divert. “Diversion” and “Divert” refer to the programs and activities that reduce 312 or eliminate the Disposal of Solid Waste in landfills, which can include source reduction, reuse, salvage, 313 Recyclable Materials, and Composting.
314 1.43 Diversion Compliance. “Diversion Compliance” means compliance with Diversion 315 requirements under the Act and applicable CalRecycle regulations. Should there be a Change in Law for 316 Diversion Compliance, Contractor may request a rate adjustment pursuant to Section 30.02. 317 1.44 Dwelling Unit. “Dwelling Unit” means a building or part of a building designed for residential 318 use by a single independent housekeeping unit and having separate exterior access, toilet, and facilities for 319 cooking and sleeping.
320 1.45 Edible Food. “Edible Food” has the same meaning as found in Section 5-2.01 of the Pinole 321 Municipal Code. Edible Food means food intended for human consumption. For purposes of this Agreement, 322 Edible Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement requires or 323 authorizes the recovery of food that does not meet the food safety requirements of the California Retail Food 324 Code.
325 1.46 Edible Food Recovery. “Edible Food Recovery” means the actions to Collect and distribute 326 Edible Food and distributing it to local food recovery organizations from places where it would otherwise go 327 to waste, such as, but not limited to, restaurants, grocery stores, produce markets, school cafeterias, or dining 328 facilities.
329 1.47 Effective Date. “Effective Date of Agreement” shall mean the date on which the Agreement 330 is signed by the duly authorized representatives and the parties and delivered by the last of the parties to sign 331 and deliver.
332 1.48 Electronic Waste (E-Waste). “E-Waste” means electronic equipment such as stereos, 333 televisions, computers, and other similar items Collected from Single-Family Dwelling (SFD) Service Units or 334 MFD Service Units.

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335 1.49 Exempt Waste. “Exempt Waste” consists of Biohazardous or Biomedical Waste, 336 Hazardous Waste, Sludge, automobiles, automobile parts, boats, boat parts, boat trailers, internal combustion 337 engines, lead-acid batteries, dead animals, and those wastes under the control of the Nuclear Regulatory 338 Commission.
339 1.50 Food Waste. “Food Waste” means (1) food scraps, including all edible or inedible food 340 such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, 341 bread, cheese, coffee grounds, and eggshells; and (2) food-soiled paper, which is compostable paper 342 material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, 343 paper coffee cups, napkins, and pizza boxes. Food Waste excludes fats, oils, and grease when such materials 344 are Source Separated from other Food Waste.
345 1.51 Franchise Fee. “Franchise Fee” means a payment that the Contractor has voluntarily 346 agreed to pay to City in consideration of the exclusive rights granted by the City under this Agreement. City 347 and Contractor acknowledge and agree that the amount of the Franchise Fee is the result of bona fide, arms348 length negotiations between City and Contractor. Contractor further acknowledges and agrees that the 349 amount of the Franchise Fee represents the City’s costs associated with this Agreement, payment for use of 350 government property and the repairing of impacts of solid waste collection service on government property. 351 Contractor is not required by this Agreement or any City ordinance, resolution, or regulation to charge the 352 Franchise Fee to Customers, but is a cost of doing business. Because the Franchise Fee represents a cost 353 to Contractor in performing services pursuant to this Agreement, Contractor may, in its sole discretion, include 354 an amount equal to the Franchise Fee in Contractor’s compensation. 355 1.52 Garbage. “Garbage” means all putrescible and non-putrescible solid, semi-solid, and 356 associated liquid waste generated or accumulated through the normal activities of a Premises. Garbage does 357 not include Recyclable Materials, Organic Waste, or Bulky Waste that is source-separated and set out for 358 purposes of Collection and Recycling.
359 1.53 Green Waste. “Green Waste” means grass clippings, leaves, landscape and pruning 360 waste, wood materials from trees and shrubs, and other forms of organic materials generated from 361 landscapes or gardens.
362 1.54 Gross Revenue. “Gross Revenue” means all monetary amounts actually Collected or 363 received by Contractor for the provision of all services pursuant to this Agreement, including, but not limited 364 to: all receipts from Service Recipients, inclusive of late charges, contamination charges, Franchise Fees, or 365 any other cost of doing business. “Gross Revenue”, for purposes of this Agreement, does not include 366 revenues generated from the sale of Recyclable Material, Compost, or energy; or grants, cash awards, State 367 of California Department of Conservation payments, or rebates resulting from the performance of this 368 Agreement.
369 1.55 Hazardous Waste. “Hazardous Waste” shall have the meaning set forth in California Code 370 of Regulations, Title 14 §17225.32 and Health and Safety Code §25117, or successor laws and regulations 371 as may be amended from time to time.

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372 1.56 Holiday. “Holiday” means New Year’s Day, President’s Day, Memorial Day, Independence 373 Day, Labor Day, Veterans Day, Thanksgiving Day, Christmas Day, and any other day recognized by 374 resolution of the City Council as a day on which waste Collection Service will not be provided until the following 375 day, excluding Sunday.
376 1.57 Home Compost Bin. “Home Compost Bin” means a portable durable Container purchased 377 by the Contractor and stored and distributed by the Contractor to SFD or MFD Service Recipients, as 378 requested, for use by those Service Recipients to Compost Organic Waste at their Premises. 379 1.58 Household Hazardous Waste (HHW). “HHW” means that waste resulting from products 380 purchased by the general public for household use which, because of its quantity, concentration, or physical, 381 chemical or infectious characteristics, may pose a substantial known or potential hazard to human health or 382 the environment when improperly treated, Disposed, or otherwise managed, or, in combination with other 383 Solid Waste, may be infectious, explosive, poisonous, caustic, or toxic, or exhibit any of the characteristics of 384 ignitability, corrosivity, reactivity, or toxicity as per California Code of Regulations Title 22, Division 4.5, 385 Chapter 11, Section 66261.3.
386 1.59 Joint Exercise of Powers Agreement (JEPA). "Joint Exercise of Powers Agreement" means 387 the joint exercise of powers agreement creating the Authority by and among the cities of El Cerrito, Pinole, 388 Pinole, Richmond, and San Pablo, including any subsequent amendments thereto. 389 1.60 Kitchen Food Waste Pail. “Kitchen Food Waste Pail” means a plastic receptacle with a 390 rated capacity not exceeding two and one-half (2.5) gallons, having a hinged lid, suitable for use in a SFD 391 Service Unit for temporary storage of SFD Organic Waste that is approved for such purpose by City. 392 1.61 Materials Recovery Facility. “Materials Recovery Facility” means the facility listed in Exhibit 393 7 to which Recyclable Materials are brought for separation into marketable Recyclable Materials. 394 1.62 Maximum Rate. “Maximum Rate” means the maximum amount that Contractor may charge 395 Service Recipients for Solid Waste Collection, as listed in Exhibit 1, and as may be adjusted in accordance 396 with the provisions of this Agreement. The Maximum Rate does not include any Post-Collection Rate that 397 may exist for Service Recipients for any post-collection services, including such services as may be provided 398 under one or more post-collection agreements.
399 1.63 “Multi-Family Dwelling” and “MFD” shall mean any building or structure, or portion thereof, 400 including but not limited to Mobile Home Parks, used for residential purposes, and having five (5) or greater 401 distinct living units.
402 1.64 Multi-Family Dwelling (MFD) Collection Service. “MFD Collection Service” means 403 Collection Service that serves a Multi-Family Dwelling, and specifically includes the following:
404 A. MFD Garbage Collection Service. The Collection of Garbage, by Contractor, from 405 MFD Service Units in the Service Area, and the delivery of that Garbage to the Disposal Facility. 406 B. MFD Bulky Waste Collection Service. The periodic on-call Collection of Bulky 407 Waste, by Contractor, from MFD Service Units in the Service Area and the delivery of those Bulky Waste to

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408 the Disposal Facility, Materials Recovery Facility, or such other facility as may be appropriate under the 409 terms of this Agreement. MFD Bulky Waste Collection Service may include the Collection of Bulky Waste 410 using Roll-Off Containers.
411 C. MFD Organic Waste Collection Service. The Collection of Organic Waste, by 412 Contractor, from MFD Service Units in the Service Area, and the delivery of those Organic Waste materials 413 to the Organic Waste Processing Facility.
414 D. MFD Recyclable Materials Service. The Collection of Recyclables Materials by the 415 Contractor from MFD Service Units in the Service Area, and the delivery of those Recyclable Materials to 416 the Materials Recovery Facility.
417 1.65 Municipal Code. “Municipal Code” means the City of Pinole Municipal Code. 418 1.66 Non-Collection Notice. “Non-Collection Notice” means a written notice approved by the 419 Agreement Administrator that notifies a Service Recipient of the reason Contractor did not Collect Solid Waste 420 set out for Collection.
421 1.67 Organic Waste. “Organic Waste” has the same meaning as set forth in Section 8.10.020 422 of the Pinole Municipal Code and means Food Waste, Green Waste, Wood Waste, and food-soiled paper 423 waste that is mixed in with Food Waste. Plastic bags, including compostable plastic bags, are not accepted 424 in the City’s Organic Materials Collection program unless otherwise determined mutually by City and 425 Contractor. Paper products and printing and writing paper, each as defined in SB 1383, may be placed in 426 either the Recyclable Materials Container or the Organic Waste Container. Carpet and textiles, as well as 427 compostable plastic materials, may not be placed in either the Recyclable Materials Container or the Organic 428 Waste Container.
429 1.68 Organic Waste Collection Service. “Organic Waste Collection Service” means the 430 Collection of Organic Waste from Service Units, and the delivery of those Organic Waste materials to the 431 Organic Waste Processing Facility.
432 1.69 Organic Waste Processing Facility. “Organic Waste Processing Facility” means the facility 433 designed, operated, and legally permitted for the purpose of receiving and processing Food Waste, Green 434 Waste, and Organic Waste listed in Exhibit 7.
435 1.70 Overage. “Overage” means Solid Waste set out for Collection either on top of or outside of 436 a Container or in any manner that either prevents the Container lid from completely closing or potentially 437 causes Solid Waste to spill during Collection by Contractor’s vehicles. 438 1.71 Post-Collection Rate. “Post-collection rate” means the amount that Service Recipients may 439 be charged independently of this Collection Agreement for post collection services, including under a post440 collection agreement, such as the West Contra Costa County Integrated Waste Management Authority Post441 Collection Agreement, which is governed by the West Contra Costa County Integrated Waste Management 442 Authority.

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443 1.72 Premises. “Premises” means any land or building in the City where waste is generated or 444 accumulated.
445 1.73 Prohibited Container Contaminants. “Prohibited Container Contaminants” means any of 446 the following, but does not include Organic Waste specifically allowed for Collection in a Container that is 447 required to be transported to a high Diversion Organic Waste processing facility if the waste is specifically 448 identified as acceptable for Collection in that Container in a manner that complies with the requirements of 449 14 CCR Section 18984.1, 18984.2, or 18984.3: (A) Non-Organic Waste placed in a Collection Container 450 designated for Organic Waste provided pursuant to 14 CCR Section 18984.1 or 18984.2; (B) Organic Wastes 451 that are carpet, hazardous Wood Waste, or non-compostable paper placed in the Collection Container that 452 is part of an Organic Waste Collection Service provided pursuant to 14 CCR Section 18984.1 or 18984.2; (C) 453 Organic Wastes placed in a Collection Container designated for Garbage, that pursuant to 14 CCR Section 454 18984.1 or 18984.2 were intended to be Collected separately in a Collection Container designated for Organic 455 Waste or Recyclable Materials; (D) Organic Wastes placed in the Collection Container designated for 456 Recyclable Materials shall be considered Prohibited Container Contaminants when those wastes were 457 specifically identified in this Agreement, or through local ordinance for Collection in the Container designated 458 for Organic Waste, or mutually agreed to and promulgated by the City and Contractor. Paper products, 459 printing and writing paper, wood, and dry lumber may be considered acceptable and not considered 460 Prohibited Container Contaminants if they are placed in Collection Container designated for Recyclable 461 Materials; and (E) Exempt Waste placed in any Collection Container. 462 1.74 Quarter. “Quarter” means a three-month period during a calendar year. The first Quarter is 463 January through March. The second Quarter is April through June. The third Quarter is July through 464 September. The fourth Quarter is October through December. 465 1.75 Rate Year. “Rate Year” means the period of July 1 to June 30 for each year during the 466 Term of this Agreement.
467 1.76 Recyclable Materials. “Recyclable Materials” means those materials that are separated 468 from Solid Waste prior to Disposal to be recycled, consistent with the requirements of the Act. Recyclable 469 Materials that can be placed in the Recyclable Materials Container are listed in Exhibit 10, and the term also 470 includes any other items determined by the Agreement Administrator. 471 1.77 Recycling. “Recycling” means the process of Collecting, sorting, cleansing, treating, and/or 472 marketing Recyclable Materials that would otherwise become Garbage, and returning them to the economic 473 mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality 474 standards necessary to be used in the marketplace. The Collection, transportation, or Disposal of Solid Waste 475 not intended for, or capable of, reuse is not Recycling. “Recycling” does not include transformation as defined 476 in Public Resources Code Section 40201. Paper products and printing and writing paper, each as defined in 477 SB 1383, may be placed in either the Recyclable Materials Container or the Organic Waste Container. Carpet 478 and textiles, as well as compostable plastic materials, may not be placed in either the Recyclable Materials 479 Container or the Organic Waste Container.

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480 1.78 Residential Collection Service. “Residential Collection Service” means ongoing regularly 481 scheduled Collection of Solid Waste by an Exclusive Franchise from Residential Service Units and MFD 482 Service Units, and the delivery of that Solid Waste to the Disposal Facility, Materials Recovery Facility, and/or 483 Organic Waste Processing Facility.
484 1.79 Residential Premises. “Residential Premises” means: (i) any building or structure, or 485 portion thereof, that is used for residential housing purposes and has four (4) or fewer distinct living units; and 486 (ii) any multiple-unit residential complex which, with the prior written approval of the City Manager, receives 487 Solid Waste Collection using standard residential Containers. 488 1.80 Roll-Off Container. “Roll-Off Container” means a large, open-top rectangular metal 489 Container used to store and transport Solid Waste, Recyclable Materials, Green Waste, Construction and 490 Demolition Debris, or other materials, with a capacity of ten (10) or more cubic yards that is normally loaded 491 onto a specialized Collection vehicle and transported to the appropriate facility. 492 1.81 SB 1383. “SB 1383” means State of California Senate Bill 1383, Short-lived Climate 493 Pollutants: Organic Waste Reductions, approved September 19, 2016, and the regulations implementing the 494 law, Title 14, Code of California Regulations (CCR), Chapter 12. 495 1.82 SB 54. “SB 54” means State of California Senate Bill 54, Plastic Pollution Prevention and 496 Packaging Producer Responsibility Act, approved June 30, 2022, when adopted, adding Chapter 3 within 497 Part 3 of Division 30 of the California Public Resources Code. 498 1.83 Self-Haul. “Self-Haul” means the Collection of Solid Waste by the resident, owner, or 499 occupant of the Premises on which the Solid Waste was generated, and in compliance with the requirements 500 of the Municipal Code.
501 1.84 Service Area. “Service Area” means that area within the city limits of the City of Pinole 502 designated by City as the Service Area.
503 1.85 Service Recipient. “Service Recipient” means an individual or entity receiving Collection 504 Service. Service Recipient and Customer are used interchangeably depending on context. 505 1.86 Service Unit. “Service Unit” means a single subscriber to Contractor’s Solid Waste 506 Collection. Service Unit specifically includes the following:
507 A. City Service Unit. City Facility(ies) that utilize a Bin, Cart, or Roll-Off Container(s) 508 for the accumulation and set-out of Solid Waste. City Service Units are the properties set forth in Exhibit 2 509 and may be modified by written notice to Contractor by the City. 510 B. Commercial Service Unit. All retail, professional, wholesale, and industrial 511 facilities, as well as other commercial enterprises offering goods or services to the public, that utilize a 512 Garbage Bin, Cart, Compactor, or Roll-Off Container for the accumulation and set-out of Commercial 513 Solid Waste.

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514 C. Multi-Family Dwelling (MFD) Service Unit. A MFD Service Unit refers to any Multi515 Family Dwelling Unit in the Service Area utilizing a Cart for the accumulation and set out of Solid Waste 516 originating from MFD Residential Premises.
517 1.87 Single-Family Dwelling (SFD) Service Unit. “Single-Family Dwelling” and “SFD” shall mean 518 any building or structure, or portion thereof, including but not limited to Mobile Home Parks, used for 519 residential purposes, and having four (4) or fewer distinct living units. A SFD Service Unit refers to any Single520 Family Dwelling Unit in the Service Area utilizing a Cart for the accumulation and set out of Solid Waste 521 originating from SFD Residential Premises. The term SFD Service Unit is inclusive of all SFD Dwelling Units 522 regardless of how many SFD Dwelling Units sit on a single parcel; though multiple Dwelling Units may exist 523 on one parcel, to the extent that one SFD Dwelling has four (4) or fewer distinct living units, it shall be treated 524 as a SFD Service Unit.
525 1.88 SFD Collection Service. “SFD Collection Service” means SFD Garbage Collection Service, 526 SFD Recyclable Materials Service, SFD Organic Waste Collection Service, and SFD Bulky Waste Collection 527 Service.
528 A. SFD Garbage Collection Service. The Collection of Garbage, by Contractor, from 529 SFD Service Units in the Service Area, and the delivery of that Garbage to the Disposal Facility. 530 B. SFD Bulky Waste Collection Service. The periodic on-call Collection of Bulky 531 Waste, by Contractor, from SFD Service Units in the Service Area, and the delivery of those Bulky Waste 532 to the Disposal Facility, Materials Recovery Facility, or other such facility as may be appropriate under the 533 terms of this Agreement. SFD Bulky Waste Collection Service does not include the Collection of Bulky 534 Waste using Roll-Off Containers.
535 C. SFD Organic Waste Collection Service. The Collection of Organic Waste, by 536 Contractor, for SFD Service Units in the Service Area, and the delivery of those Organic Waste Materials 537 to the Organic Waste Processing Facility.
538 D. SFD Recyclable Materials Service. The Collection of Recyclable Materials, 539 including dry-cell household batteries when set out by the Service Recipient in heavy duty plastic bags 540 and placed on the Recyclable Materials Cart, by the Contractor from SFD Service Units in the Service 541 Area the delivery of those Recyclable Materials to the Materials Recovery Facility. 542 1.89 Single-Family Dwelling or SFD. “Single-Family Dwelling” or “SFD” means any residential 543 Premises with four (4) or fewer single attached Dwelling Units, each designed for use by one bona fide 544 housekeeping group.
545 1.90 Sludge. “Sludge” means the accumulated solids, residues, and precipitates generated as 546 a result of waste treatment or processing, including wastewater treatment, water supply treatment, or 547 operation of an air pollution control facility, as well as mixed liquids and solids pumped from septic tanks, 548 grease traps, privies, or similar disposal appurtenances, or any other such waste having similar 549 characteristics or effects.

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550 1.91 Solid Waste. “Solid Waste” means all putrescible and non-putrescible solid, semisolid, and 551 liquid wastes, including Garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and 552 construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, 553 dewatered, treated, or chemically fixed sewage Sludge which is not Hazardous Waste, vegetable or animal 554 solid and semisolid wastes, and other discarded solid and semisolid wastes, as set forth in California Public 555 Resources Code Section 40191(a)(b), as amended from time to time. Solid Waste includes Recyclable 556 Materials but does not include (1) Hazardous Waste; (2) radioactive waste regulated pursuant to the Health 557 and Safety Code Section 114960 et seq.; and (3) medical waste regulated pursuant to the Health and Safety 558 Code Section 117600 et seq.
559 1.92 Solid Waste Collection. “Solid Waste Collection” means the Collection of Garbage, 560 Recyclable Materials, and Organic Waste within the corporate limits of City, and the transportation of such 561 material to appropriate places for processing, Recycling, Composting, and/or Disposal. 562 1.93 Source Separated. “Source Separated” means materials that have been kept separate in 563 the Solid Waste stream, at the point of generation, for the purpose of additional sorting or processing in order 564 to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted 565 products, which meet the quality standards necessary to be used in the marketplace, or as otherwise defined 566 in 14 CCR Section 17402.5(b)(4).
567 1.94 Source Reduction and Recycling Element (SRRE). “SRRE” means a formal planning 568 document that demonstrates how the City will comply with the Act’s Diversion goals. 569 1.95 Term. “Term” means the time period or duration for which the Agreement is in effect. 570 1.96 Tier One Commercial Edible Food Generator. “Tier One Commercial Edible Food 571 Generator”, defined within SB 1383, means a commercial Edible Food generator that has an SB 1383 572 compliance deadline of January 1, 2022. Tier One Generators may include supermarkets; grocery stores with 573 a total facility size equal to or greater than 10,000 square feet; food service providers that serve institutional, 574 governmental, commercial, or industrial locations; food distributors; and/or wholesale food vendors. 575 1.97 Tier Two Commercial Edible Food Generator. “Tier Two Commercial Edible Food 576 Generator”, defined within SB 1383, means a commercial Edible Food generator that has an SB 1383 577 compliance deadline of January 1, 2024. Tier Two Generators may include restaurants with 250 or more 578 seats or a total facility size equal to or greater than 5,000 square feet; hotels with an on-site food facility and 579 200 or more rooms; health facilities with an on-site food facility and 100 or more beds; large venues 580 (permanent venue facilities that annually seat or serve an average of more than 2,000 individuals within the 581 grounds of the facility per day of operation); large events (events that serve an average of more than 2,000 582 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, 583 or privately owned park, parking lot, golf course, street system, or other open space when being used for an 584 event); State agencies; and/or local education agencies.

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585 1.98 Transfer Station. “Transfer Station” means the place or places listed in Exhibit 7 for 586 conveyance of Solid Waste Collected by Contractor into larger vehicles prior to transportation of the Solid 587 Waste to the Disposal Facility or Processing Facility. 588 1.99 Unicycling. “Unicycling” means a method of separating trash and Recyclable Materials in 589 a single Collection Container. Garbage materials are Collected in bags and deposited into the Collection 590 Container, and Recyclable Materials are deposited into the Collection Container loose and unbagged. 591 1.100 Universal Waste or U-Waste. “Universal Waste” or “U-Waste” means electronic devices, 592 dry-cell batteries, non-empty aerosol cans, fluorescent lamps, fluorescent bulbs, mercury thermostats, and 593 other mercury-containing equipment.
594 1.101 Waste. “Waste” means the useless, unused, unwanted, or discarded material and debris 595 resulting from normal residential and commercial activity or materials which, by their presence, may injuriously 596 affect the health, safety, and comfort of persons or depreciate property values in the vicinity thereof. 597 1.102 Waste Generator. “Waste generator” means any person, as defined by the most current 598 version of the Public Resources Code, whose act or process produces Solid Waste as defined in that same 599 code, or whose act first causes Solid Waste to become subject to regulation. 600 1.103 West Contra Costa Integrated Waste Management Authority or “Authority”. A joint exercise 601 of powers authority established and existing pursuant to Government Code Section 6500 et seq., or any 602 successor entity and shall have the same meaning as defined in the Joint Power Agreement. 603 1.104 Workday. “Workday” means any day, Monday through Saturday, that is not a Holiday as 604 set forth in this Agreement.
605 1.105 Wood Waste. “Wood Waste” means Solid Waste consisting of stumps, large branches, 606 tree trunks, and wood pieces or particles that are generated from the manufacturing or production of wood 607 products; harvesting, processing, or storage of raw wood materials; or Construction and Demolition activities. 608 Article 2. Term of Agreement
609 2.01 Term of Agreement. The Term of this Agreement will be for a period beginning July 1, 610 2025, and terminating on June 30, 2040. Contractor shall commence performance of its Solid Waste 611 Collection obligations under this Agreement on July 1, 2025 (“Commencement Date”). 612 Article 3. Conditions Governing Services Provided by Contractor 613 3.01 Grant of Exclusive Agreement. City hereby grants to Contractor, on the terms and 614 conditions set forth herein, including the limitations set forth in Sections 3.02 and 3.03, the exclusive franchise, 615 right, and privilege to collect, remove, and dispose of, in a lawful manner, Solid Waste, Recyclable Materials, 616 and Organic Materials accumulating in the City’s Service Area and offered for Collection to the Contractor in 617 accordance with Applicable Law, for the Term of and within the scope set forth in this Agreement.

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618 3.02 Recyclable Materials, Organic Waste, and Bulky Waste Discarded by Service Recipients. 619 This Agreement shall not prohibit any Service Recipient from selling Recyclable Materials or Organic Waste 620 or giving Recyclable Materials or Organic Waste away to persons or entities other than Contractor. However, 621 in either instance: (1) the Recyclable Materials and Organic Waste must be Source Separated from and not 622 mixed with other Solid Waste; and (2) the seller/donor may not pay the buyer/donee any consideration for 623 Collecting, processing, or transporting such Recyclable Materials or Organic Waste. A discount or reduction 624 in the price for Collection, Disposal, and/or Recycling services for any form of un-segregated or segregated 625 Solid Waste is not a sale or donation of Recyclable Materials or Organic Waste, and such Solid Waste does 626 not qualify for this exception. However, once the Recyclable Materials or Organic Waste have been placed 627 in the Collection Container and the Container set out for Collection, the Recyclable Materials or Organic 628 Waste become the property of Contractor and cannot be sold or donated. 629 3.03 Exclusions to Exclusivity.
630 3.03.1 Specialized Recyclable Materials. If Contractor expressly advises City in writing that 631 it is unable or unwilling to Collect and process for specific Diversion, after being provided the opportunity in 632 writing to provide the specific service, specialized materials as described in this Section, and a third party is 633 able to reuse or Recycle one or more of these materials, Service Recipients shall have the right to engage 634 the third-party recycler to Collect and Recycle those Source-Separated Recyclable Materials, provided that 635 the Diversion is verified by the City. These specialized materials shall include, but are not limited to, Organic 636 Waste, metals, Construction and Demolition Debris, laboratory waste, pallets, clothing, shoes, textiles, and 637 plastic.
638 3.03.2 Recyclable Materials Sold By Commercial Generator. If the Waste Generator at a 639 Commercial Service Unit has Source Separated Recyclable Material, the Waste Generator is entitled to sell 640 that Recyclable Material or be otherwise compensated in a manner resulting in a documented net positive 641 payment to the Waste Generator, when such collector is permitted as appropriate under the City Municipal 642 Code.
643 3.03.3 Byproducts of Food and Beverage Processing. Under AB 3036 (2018), certain 644 byproducts from the processing of food or beverages from agricultural or industrial sources, provided they 645 do not include animal, including fish, processing byproducts, they are Source-Separated, they are not 646 discarded , and they are used as animal feed, are exempted from this Exclusive Franchise Agreement. 647 Entities requesting exemption must apply to the City and be any of the following: registered pursuant to 648 Section 110460 of the Health and Safety Code or be exempted from registration pursuant to Section 110480 649 of the Health and Safety Code or be a beer manufacturer as defined in Section 23012 of the Business and 650 Professions Code, or be a distilled spirits manufacturer, as defined in Section 23015 of the Business and 651 Professions Code.
652 3.03.4 Donated Solid Waste. Recyclable Materials, Organic Waste, or Bulky Waste which 653 is Source Separated at any Premises by the waste generator and donated to youth, civic, or charitable 654 organizations qualified as such pursuant to Federal law.

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655 3.03.5 Gardening or Landscape Services. Green Waste removed from a Premises by a 656 gardening, landscaping, or tree trimming company as an incidental part of a total service offered by that 657 company rather than as a hauling service.
658 3.03.6 Self-Haul. Service Recipients may choose to Self-Haul Solid Waste to Disposal or 659 Processing Facilities, to the extent authorized by the Municipal Code. 660 3.03.7 Materials Generated or Accumulated During An Emergency or Disaster. During an 661 emergency or disaster, as determined by City in its sole discretion, City may enlist additional contractors or 662 other entities in the Collection, transportation, and/or Disposal of any and all types of materials that are 663 generated or accumulated. In particular, the City may choose to pursue reimbursement of disaster services 664 through the Federal Emergency Management Agency (FEMA), which would require that the associated 665 disaster services be secured via a competitive bidding process. Contractor shall not be prohibited by any 666 part of this Agreement from participating in this competitive bidding process, but City shall be free to put 667 services associated with declared disasters out to bid in accordance with FEMA requirements and enlist 668 additional contractors based on the results of that process. 669 3.04 Change in Collection and Disposal Methods. In consideration of the exclusive franchise 670 granted herein, the parties understand and agree that the City may require changes in collection and disposal 671 methods, including but not limited to the collection and disposal of solid wastes and recyclable materials, and 672 may further require implementation of changes in applicable technology to secure the most efficient and 673 current methods of collection and disposal. In the event City chooses to implement programs for changed 674 methods of collection or disposal, including but not limited to the implementation of a recycling program, the 675 Contractor shall have the right to present a proposal to the City to perform such a program pursuant to the 676 provisions of sections 30.01 and/or 30.02 shall apply. 677 3.05 Responsibility for Service Billing and Collection. Contractor is responsible for the billing 678 and collection of payments for Solid Waste Collection within the Service Area. 679 Article 4. Franchise Fees and Payments
680 4.01 Contractor’s Payments to City. The Parties agree that all fees and any payments owed by 681 Contractor to City under this Agreement are the product of extensive negotiations and constitute valid 682 consideration for the rights and privileges granted to Contractor under this Agreement. 683 4.02 Reimbursement for the Cost of Negotiation Process. Contractor shall reimburse the City a 684 one-time fee of Fifty-Five Thousand Dollars ($55,000) for the cost of the Franchise Agreement negotiation, 685 and award process. This fee shall be due and payable on the thirtieth (30th) day after the Effective Date of 686 the Agreement. This fee shall not be recoverable via Contractor’s Collection Services Rates or any other form 687 of compensation under this Agreement.
688 4.03 Monthly Fees and Payments. The following monthly fees and payments shall be due and 689 payable on the twentieth day of the month following the end of each month for which Solid Waste Collection 690 was provided, with the first such payment being due on August 20, 2025. The City Council may adjust the

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691 Monthly Fees by resolution, in which case Contractor shall be entitled to an adjustment to Maximum Service 692 Rates as a City-directed change in accordance with Section 30.01. The Monthly Fees shall be accompanied 693 at the time of payment by a written report, in a format acceptable to the City, setting forth the calculations 694 Contractor used to determine the amount due and the basis for those calculations. Figures used in the report 695 shall be taken from Contractor’s general books of account, and Contractor shall retain all supporting 696 documentation in accordance with the records retention requirements in Section 22.01. 697 4.03.1 Franchise Fee. Contractor shall pay to City a Franchise Fee in the amount of 698 $______ annually. One twelfth of the Franchise Fee shall be due and payable monthly within twenty (20) 699 days following the end of each month. If payment is not received within said twenty (20) day period, interest 700 shall accrue thereon at ten (10) percent per annum. Any such fee shall have prospective effect only; 701 provided, however, that should any adjustment be given retroactive effect, the applicable Franchise Fee 702 shall also be given such effect.
703 4.03.1.1 Adjustments to Franchise Fee. At any time that the Maximum 704 Rates are adjusted as described in Article 6 and elsewhere in this Agreement, the Franchise Fee shall be 705 adjusted by the same proportional increase.
706 4.03.2 Vehicle Impact Fee (VIF). Contractor shall pay to City a VIF in the amount of $_____ 707 annually to cover the costs for the damage to the City’s roads caused by the Contractor’s Collection Vehicles. 708 The VIF shall be due and payable monthly within twenty (20) days following the end of each month. If 709 payment is not received within said twenty (20) day period, interest shall accrue thereon at the interest rate 710 of ten (10) percent per annum. Any such fee shall have prospective effect only. 711 4.03.2.1 Adjustments to the Vehicle Impact Fee. At any time that the 712 Maximum Rates are adjusted as described in Article 6 and elsewhere in this Agreement, the Vehicle Impact 713 Fee shall be adjusted by the same proportional increase. 714 4.04 Adjustments to Fees. City may set other fees or adjust the fees established in this Article 715 from time to time during the Term of this Agreement, and such adjustments and any Fee adjustments shall 716 be included in the adjustment of Maximum Rates as described in Exhibit 1. 717 4.05 Time and Method of Payment. Contractor shall pay all amounts owed under this Article 718 without prior notice or demand and without abatement, deduction, offset, or credit in lawful money of the 719 United States, on or before the applicable due date, unless the due date lands on a weekend or Holiday, in 720 which case the due date shall be the next Business Day. If sent by U.S. mail, the remittance must be post721 marked on or before the due date. If hand-delivered, Contractor must request and receive a date-stamped 722 receipt from the City by 5:00 p.m. Pacific Time (PT) on the due date. 723 4.06 Franchise Fee Disputes. In the event of any disputes between the Contractor and the City 724 with respect to the fees described in this Article, the City shall provide the Contractor with written objection 725 within one hundred eighty (180) days of the receipt of the written report described in Section 4.03, 726 encompassing the dispute amount. The City shall state its objections in writing with reference to the applicable

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727 portion(s) of the report and its reasons then known for its dispute. The Parties agree to meet and confer 728 regarding any such dispute.
729 4.07 In the event any City-Imposed fee (hereinafter “CIF”) is determined by a court to be 730 excessive, invalid, or unenforceable, then in accordance with the judgment or court order that is expressly 731 binding on one or more of the Parties hereto: (i) Contractor shall not charge or collect the future portion of 732 such CIF; (ii) to the extent the Customers are entitled to a reimbursement of any portion of such CIF, and City 733 is required to reimburse Contractor in the amount of such CIF previously remitted to City, thereafter Contractor 734 shall directly reimburse all Customers entitled to reimbursement in the amount attributable to each Customer 735 account. In no event shall Contractor retain any portion of the fees reimbursed by City; (iii) to the extent the 736 Customers are entitled to a reimbursement of such CIF, and City is required by a court to directly reimburse 737 Customers, Contractor shall assist City in identifying all Customers entitled to a reimbursement, quantifying 738 the reimbursement amount attributable to each Customer account, and obtaining and providing to City any 739 other information needed to satisfy the obligations imposed by a court; and (iv) City and Contractor will, within 740 thirty (30) days following such court decision, meet and confer to negotiate in good faith and using reasonable 741 efforts to attempt to agree on modifications to the Agreement. 742 Article 5. General Requirements
743 5.01 Service Standards. Contractor must perform all Solid Waste Collection under this 744 Agreement in a thorough and professional manner as described in Article 25, while meeting the minimum 745 performance and Diversion standards listed in Article 17, according to the Sustainability and Compliance Plan 746 (Exhibit 8) developed by the Contractor and approved by the City. 747 5.02 Labor and Equipment. Contractor must provide and maintain all labor, equipment, tools, 748 facilities, and personnel supervision required for the performance of Contractor’s obligations under this 749 Agreement. Contractor must always have sufficient backup equipment and labor to fulfill Contractor’s 750 obligations under this Agreement. No compensation for Contractor’s services or for Contractor’s supply of 751 labor, equipment, tools, facilities, or supervision will be provided or paid to Contractor by City or by any Service 752 Recipient except as expressly provided by this Agreement. 753 5.03 Holiday Service. The City observes New Year’s Day, Martin Luther King Jr. Day, 754 Independence Day, Labor Day, Thanksgiving Day, and Christmas Day as legal Holidays. Contractor is not 755 required to provide Solid Waste Collection or maintain office hours on the designated Holidays. In any week 756 in which one of these Holidays falls on a Workday, SFD Collection Services for the Holiday and each Workday 757 thereafter will be delayed one Workday for the remainder of the week, with normally scheduled Friday SFD 758 Collection Services being performed on Saturday. Commercial Collection Services will be adjusted as set 759 forth in Article 12, but must meet the minimum frequency requirements of one (1) time per week. Solid Waste 760 Collection will not take place on Sundays, unless previously authorized by the Agreement Administrator. 761 5.04 Inspections. The City has the right to inspect Contractor’s facilities or Collection Vehicles 762 and their contents used to provide services pursuant to this Agreement at any reasonable time while operating 763 inside or outside the City without advance notice to the Contractor.

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764 5.05 Commingling of Materials.
765 5.05.1 SFD Materials Collected in Pinole. Except as expressly provided herein, Contractor 766 may commingle any SFD materials Collected, provided that Contractor tracks the tonnage of Commercial 767 material Collected inside the City using a City-approved allocation methodology pursuant to this Agreement. 768 Contractor’s current allocation methodology is approved pursuant to this Agreement. 769 5.05.2 Commercial Garbage Materials Collected in Pinole. Contractor may commingle 770 Commercial Garbage materials Collected pursuant to this Agreement with other materials Collected outside 771 the City of Pinole, provided that Contractor tracks the tonnage of Commercial material Collected inside the 772 City of Pinole separately using a City-approved allocation methodology. Contractor’s current allocation 773 methodology is approved pursuant to this Agreement. Changes to the allocation methodology may only be 774 made with the express prior written authorization of the Agreement Administrator. By executing this 775 Agreement, City approves of Contractor’s current methodology. 776 5.05.3 Recyclable Materials. Subject to Sections 10.08.3, 11.08.4, and 12.05.4, Contractor 777 may at any time commingle SFD or Commercial Recyclable Materials Collected, provided that Contractor 778 tracks the tonnage of Commercial material Collected inside the City of Pinole separately using a City779 approved allocation methodology. Contractor’s current allocation methodology is approved pursuant to this 780 Agreement. Changes to the allocation methodology may only be made with the express prior written 781 authorization of the Agreement Administrator.
782 5.05.4 Organic Waste. Subject to Sections 10.09.3, 11.09.5, and 12.06.6, Contractor may 783 at any time commingle SFD or Commercial Organic Waste Collected pursuant to this Agreement with any 784 other material type Collected by Contractor, provided that Contractor tracks the tonnage of Commercial 785 material Collected inside the City of Pinole separately using a City-approved allocation methodology. 786 Contractor’s current allocation methodology is approved pursuant to this Agreement. Changes to the 787 allocation methodology may only be made with the express prior written authorization of the Agreement 788 Administrator.
789 5.06 Recyclable Materials and Organic Waste Contamination. Contractor must offer the Service 790 Recipients the correct combination of Cart and Bin sizes and Collection frequency beyond the minimum 791 bundled service requirements, as necessary, that matches their unique service needs to reduce 792 contamination of Recyclable Materials and Organic Waste, and to provide service at the least cost to Service 793 Recipient. To support City’s Diversion goals and Contractor’s Diversion Requirements as set forth in Article 794 8, Contractor is only required to Collect and process Recyclable Materials if they have been separated by the 795 Service Recipient from Garbage and Organic Waste and will only be required to Collect Organic Waste if it 796 has been Source Separated by the Service Recipient from Garbage and Recyclable Materials. 797 As part of Contractor’s Public Education Services under Section 20.02, Contractor has agreed to provide 798 outreach and support to Service Recipients as described in the Contractor’s Sustainability and Compliance 799 Plan provided as Exhibit 8 and the Education and Outreach Plan provided as Exhibit 9. Additionally, 800 Contractor’s route Collection personnel will report to Contractor’s supervisors if they observe potential 801 contamination problems and/or insufficient Collection capacity. For purposes of determining if Recyclable

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802 Materials or Organic Waste are deemed to be contaminated, if, by visual or digital inspection, Recyclable 803 Materials are commingled with ten percent (10%) by weight or volume of Garbage or Organic Waste, or if, by 804 visual inspection, Organic Waste is commingled with three percent (3%) by volume of Garbage or Recyclable 805 Materials, then Recyclable Materials and/or Organic Waste will be deemed to be contaminated and 806 Contractor may take the following steps:
807 5.07 Violations by Service Recipients. The following provisions will apply to all Commercial, 808 MFD, and SFD Service Recipients. An occurrence is defined as an event of contamination in one day, 809 meaning that two occurrences cannot occur on the same day. 810 5.07.1 Two-Month Contamination Education Period. For the first two months following 811 commencement of this Agreement, all Service Recipients will be provided educational materials and 812 instructions on methods to properly source separate generated materials within the appropriate Collection 813 Containers and prevent contamination for a particular Container (i.e., Recyclable Materials or Organic 814 Waste). During this two-month contamination education period, Contractor must Collect the contaminated 815 Container (as the Container’s intended commodity) and must affix to the contaminated Container a 816 Contamination Violation Notice which contains instructions on the proper procedures for sorting Recyclable 817 Materials or Organic Waste, and must notify the Service Recipient by phone, U.S. mail, email, or in person 818 (which may be a Container tag that meets SB 1383 requirements), that for the third and subsequent incidents 819 of excess contamination, following this two-month contamination education period, the Service Recipient 820 may be charged a contamination fee for the contaminated Container, and Contractor may increase the 821 Collection Container size, or require an additional Collection Container. Contractor’s representative must 822 also contact the Service Recipient by phone, U.S. mail, email, or in person (which may be a Container tag 823 that meets SB 1383 requirements) to ensure that they have the appropriate level of service for proper 824 Collection of Recyclable Materials and/or Organic Waste. Contractor must also document the contamination 825 issue and provide digital/visual documentation to the Service Recipient that clearly documents the Service 826 Recipient’s on-going contamination problems. For each new service account that is created during the term 827 of this Agreement, that Service Recipient will also be given a two-month contamination education period 828 prior to the assessment of a contamination fee for the contaminated Container. The procedures for such 829 contamination education period associated with the establishment of a new service account will follow those 830 previously described in this section during the first two months of the account contract’s commencement. 831 5.07.2 Occurrences After the Two-Month Contamination Education Period. Upon 832 conclusion of the two-month contamination education period for for a particular Container (i.e., Recyclable 833 Materials or Organic Waste), Contractor must Collect the contaminated Container (as the Container’s 834 intended commodity) and must charge the Service Recipient a contamination fee as set forth in Exhibit 1. 835 Contractor must continue providing the Recyclable Materials or Organic Waste Collection Services. 836 Contractor must provide (or have provided) digital/photographic documentation to the Service Recipient that 837 clearly documents the Service Recipient’s on-going contamination problems and written Notices of 838 contamination as described above. Contractor may increase the Container size or Collection frequency and 839 impose a contamination surcharge on the account for a period of six months or until the Service Recipient 840 has demonstrated no contamination for a period of three consecutive months. Contractor must document 841 contamination issue and surcharge and notify City within five (5) Business Days if Contractor increases the

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842 Container size or Collection frequency for excessive contamination or imposes the contamination surcharge 843 on the account. City will consult with Contractor and consider and pursue, as applicable, appropriate legal 844 remedies against offending Service Recipients to secure discontinuance of the contamination. 845 5.08 Tracking Occurrences of Contamination. Regarding Section 5.07, each Contamination 846 occurrence is tracked annually per Calendar Year. Where contamination is occurring, and occurrences are 847 consecutive and unremedied, their count shall continue across Calendar Years until remedy occurs. 848 5.09 Disputes Over Excess Contamination Charges. If Service Recipient disputes a 849 contamination charge (which must be within thirty (30) days of them being assessed), Contractor will 850 temporarily halt any contamination charge and/or increased Maximum Service Rate resulting from increasing 851 the Collection Container size, or Collection frequency, and Contractor may request a ruling by the City 852 Manager to resolve the dispute. During the pendency of any request, Contractor may restore Container size 853 or number, or Collection frequency to the prior levels. A request by Contractor to the City Manager to rule on 854 any such dispute must be filed within ten (10) Business Days of Contractor’s halting of contamination charge, 855 or increased Maximum Rate, and must include written documentation and digital/visual evidence of ongoing 856 overall problems. The City Manager may request a meeting (in person or phone) with both the Service 857 Recipient and Contractor to resolve the dispute. Following such a meeting, the City Manager will rule on the 858 dispute within ten (10) Business Days, and the City Manager’s decision on resolving the dispute between 859 Contractor and Service Recipient shall be based solely on the weight of the evidence presented by the 860 Contractor and Customer and will be final. If the City Manager rules in favor of the Service Recipient, 861 Contractor will credit the disputed contamination charges or increased Maximum Service Rate. If the City 862 Manager rules in favor of Contractor, Contractor may charge Service Recipient the prior halted contamination 863 charge and/or increased Maximum Service Rate resulting from increasing the Collection Container size or 864 Collection frequency and may follow the steps in Section 7.08 for collection of delinquent accounts. 865 5.10 Overage and Correction Procedures. Contractor shall provide the Service Recipients the 866 correct combination of Collection Containers and Collection frequency that matches each Service Recipient’s 867 unique service needs to enable clean, efficient, and cost-effective Collection of Solid Waste, Recyclable 868 Materials, and Organic Waste. City and Contractor agree that overflow of Solid Waste that is not properly in 869 the Service Recipient’s Solid Waste Collection Containers negatively impacts public health and safety. 870 Contractor has also agreed to conduct Recycling audits and provide outreach and support to Service 871 Recipient accounts receiving the correct service level. However, if Service Recipients are found to habitually 872 overflow their Solid Waste Collection Containers (i.e., lid will not close, and/or material not contained within 873 Container), Contractor may take the steps listed below to correct Service Recipient’s on-going overflow of 874 Solid Waste.
875 5.10.1 Prior Arrangements for Collection. If the Service Recipient has made prior 876 arrangements with Contractor for Collection of Solid Waste Overages, Contractor must Collect such 877 Overages as arranged and may charge the Service Recipient the Solid Waste Overage fee (prior 878 arrangement) set forth in Exhibit 1.
879 5.10.2 No Prior Arrangements. If the Service Recipient has not made prior arrangements 880 with Contractor for Collection of Solid Waste Overage, (i) Contractor may Collect such Solid Waste Overage

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881 at no additional charge as a courtesy, (ii) Contractor may not Collect the Solid Waste Overage and leave a 882 Non-Collection Notice explaining the reason for non-collection of the Solid Waste Overage, (iii) Contractor 883 may Collect the Solid Waste Overage (up to two lifts) and charge the Service Recipient the Solid Waste 884 Overage fee (no prior arrangement) set forth in Exhibit 1 as provided below, or increase the capacity or 885 frequency of Collection of the existing Collection Container(s) to match documented service needs as 886 provided below. In managing Solid Waste Overages, the following apply:
887 5.10.2.1 SFD Service Recipients – Each Occurrence. For each occurrence 888 Contractor will not Collect the Solid Waste Overage because the Collection Container could not be serviced 889 by normal operating procedures or cause spillage upon servicing, Contractor must provide written notice 890 via email, U.S. mail, or in person (which may be by Non-Collection Notice) to the Service Recipient with the 891 date, description, and photograph of the Solid Waste Overage. Contractor’s Non-Collection Notice for SFD 892 Service Recipients shall also contain instructions on (a) how to schedule a Bulky Waste Collection or (b) 893 request an additional Collection Container to eliminate future Overages. For each occurrence Contractor 894 charges a Service Recipient the Solid Waste Overage fee (no prior arrangement) set forth in Exhibit 1, 895 Contractor will document the physical condition of the Collection Container and associated Overage with 896 one or more photographs and retain this documentation for the period of at least one year. 897 5.10.2.2 Commercial and MFD Service Recipients – Each Occurrence. 898 Contractor must provide a written notice on the Container and may provide a copy of the notice via email, 899 U.S. mail, or in person (which may be by Non-Collection Notice) to the Service Recipient with the date, 900 description, and photograph of the Solid Waste Overage. Contractor’s Non-Collection Notice for MFD 901 Service Recipients shall also contain instructions on (a) how to schedule a Bulky Waste Collection or (b) 902 request an additional Collection Container to eliminate future Overage. Contractor may Collect the Solid 903 Waste Overage and may charge the Service Recipient a Solid Waste Overage fee as set forth in Exhibit 1 904 and increase the capacity or Collection frequency of the Collection Container to match documented service 905 needs. At least ten (10) Business Days prior to increasing the Collection Container size or frequency of 906 Collection, Contractor’s representative must also contact the Service Recipient by phone, U.S. mail, email, 907 or in person (which may be by Non-Collection Notice) to ensure that Service Recipient has the appropriate 908 level of service. Contractor must document Overage issue and notify City within ten (10) Business Days of 909 any changes in Service Recipient’s Collection Container size or Collection frequency. The increased 910 capacity or Collection frequency will remain in effect until Contractor determines that it is no longer needed 911 to prevent Overages, which may be longer than the one Calendar Year stated above. Such determination 912 will be in Contractor’s sole but reasonable discretion and will be subject to the dispute resolution procedure 913 set forth below. City will consider, and pursue as applicable, appropriate legal remedies against offending 914 Service Recipients in order to secure discontinuance of the Overages. 915 5.10.2.3 Tracking Occurrences of Solid Waste Overage. Regarding 916 Section 5.10, after twelve (12) months have passed from the last applicable Solid Waste Overage 917 occurrence, the next Solid Waste Overage occurrence will be deemed a first Solid Waste Overage 918 occurrence.
919 5.10.3 Disputes Over Container Overflow Charges. If Service Recipient disputes a Solid 920 Waste Overage charge or Container size or Collection frequency change within 30 days of the disputed

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921 action, Contractor must temporarily halt Solid Waste Overage charge and/or increased Maximum Service 922 Rate resulting from increasing the Collection Container size or Collection frequency, and Contractor may 923 request a ruling by the City Manager to resolve the dispute. During the pendency of any request, Contractor 924 may restore Container size or number, or Collection frequency, to the prior levels. A request by Contractor 925 to the City Manager to rule on any such dispute must be filed within ten (10) Business Days of Contractor’s 926 halting of Solid Waste Overage charge, or increased Maximum Rate, and must include written 927 documentation and digital/visual evidence of ongoing overall problems. The City Manager may request a 928 meeting (in person or phone) with both the Service Recipient and Contractor to resolve the dispute. Following 929 such a meeting, the City Manager will consider the evidence presented by the parties and rule on the dispute 930 within ten (10) Business Days, and the City Manager’s decision on resolving the dispute between Contractor 931 and Service Recipient will be final. If the City Manager rules in favor of the Service Recipient, Contractor 932 must credit the disputed charge or increased Maximum Service Rate. If the City Manager rules in favor of 933 Contractor, Contractor may charge Service Recipient the prior halted Solid Waste Overage charge and/or 934 increased Maximum Service Rate resulting from increasing the Solid Waste Collection Container size or 935 Collection frequency and may follow the steps in Section 7.08 for collection of delinquent accounts. 936 5.10.4 Notifying City of Habitual Overflow. Contractor shall notify the City regarding 937 Commercial and MFD Customers that habitually overflow their Containers, where habitual overflow is 938 defined as three (3) or more instances per Quarter, so that the City can take appropriate action with such 939 Customers to secure discontinuance of the Overages. 940 5.11 Ownership of Materials. Except as provided otherwise under Applicable Law, title to 941 Residential Waste, Commercial Solid Waste, Recyclable Materials, and Organic Waste will pass to Contractor 942 at such time as materials that are set out for Collection are collected and placed in Contractor’s collection 943 vehicle.
944 5.11.1 Ownership of Excluded Waste. Section 5.11 notwithstanding, at no time shall title 945 to Excluded Waste pass to Contractor. Contractor shall not be deemed an owner of Excluded Waste for any 946 purpose. Excluded Waste shall always be considered to be owned by the generator of the waste, title shall 947 remain with the generator, and the generator shall be considered the responsible agent. If Excluded Waste 948 is Collected by Republic, Republic will take action to identify who the generator is of such Excluded Waste, 949 so that title remains with the generator and is not passed to the Contractor. 950 5.12 Spillage and Litter. Contractor may not litter Premises in the process of providing Solid 951 Waste Collection or while its vehicles are on the road. Contractor must transport all materials Collected under 952 the terms of this Agreement in such a manner as to prevent the spilling or blowing of such materials from 953 Contractor's vehicles. Contractor must exercise all reasonable care and diligence in providing Solid Waste 954 Collection to prevent spilling or dropping of Residential Waste, Commercial Solid Waste, Recyclable 955 Materials, or Organic Materials, and must immediately, at the time of occurrence, clean up such spilled or 956 dropped Residential Waste, Commercial Solid Waste, Recyclable Materials, or Organic Materials. 957 5.12.1 Contractor is not responsible for cleaning up sanitary conditions caused by the 958 carelessness of the Service Recipient; however, Contractor must clean up any material or residue that is 959 spilled or scattered by Contractor or its employees, or from Overage.

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960 5.12.2 Equipment oil, hydraulic fluids, spilled paint, or any other liquid or debris resulting 961 from Contractor’s operations (including Collection Services) or equipment repair must be covered 962 immediately with an absorptive material and removed from the street surface. Contractor must document 963 spillage and notify City’s stormwater compliance coordinator within ninety (90) minutes of any spills resulting 964 from Contractor’s operations or equipment. When necessary, Contractor must apply a suitable cleaning 965 agent and cleaning technique to the street surface to provide adequate cleaning as approved by the City’s 966 stormwater compliance coordinator to be compliant with the City’s stormwater permit. 967 5.12.3 The above paragraphs notwithstanding, Contractor must clean up any spillage or 968 litter caused by Contractor within ninety (90) minutes upon notice from the City. If City deems necessary, 969 Contractor must engage a third-party environmental clean-up specialist to remove any equipment oil, 970 hydraulic fluids, or any other liquid or debris that remains on street after Contractor’s own clean-up efforts. 971 If clean-up is not conducted to the satisfaction of City, City has the right to engage environmental clean-up 972 specialist to perform additional clean-up work at the expense of Contractor. In the event of Contractor’s spill 973 or release of a Hazardous Substance, Contractor is responsible for promptly notifying any Federal, State, 974 County, or local governmental agency having jurisdiction over same as may be required under Federal, 975 State, County or local law or regulation.
976 5.12.4 In the event where damage to City streets is caused by a hydraulic fluid spill (i.e., 977 any physical damage more than a simple cosmetic stain caused by the spill), Contractor shall be responsible 978 for all repairs to return the street to the same condition as that prior to the spill. Contractor shall be 979 responsible for all clean-up activities related to the spill. Repairs and clean-up shall be performed in a manner 980 satisfactory to the City and at no cost to the City. 981 5.12.5 To facilitate immediate clean-up, Contractor’s vehicles must always carry enough 982 petroleum absorbent materials to clean-up typical, non-emergency spills, along with a broom and shovel. 983 5.13 SB 1383 Universal Roll-Out. Contractor shall provide Organic Materials Collection service 984 to all of its Customers within City who are subscribed to and pay for Solid Waste Collection service, unless 985 (i) the Customer is categorically exempted under City’s Municipal Code from the requirement to subscribe for 986 Organic Materials Collection service (ii) the Customer qualifies for and is granted a State- or City-issued 987 waiver. Contractor will work with Customers to appropriately size Collection Containers such that source988 separation of all materials is possible without any overflow of material, and if any disputes arise or Overages 989 occur, the City will make the final determination on proper Container size. 990 5.14 Regulations and Record Keeping. Contractor must comply with emergency notification 991 procedures required by Applicable Laws and regulatory requirements. All records required by regulations 992 must be maintained at Contractor’s offices. These records must include waste manifests, waste inventories, 993 waste characterization records, inspection records, incident reports, and training records. 994 5.15 Response Times for City Requests. Upon receiving a data request or information request 995 from City that is not covered by other timeline requirements articulated in this document, and provided that 996 the request from City shall not take more than eight (8) hours of Contractor staff time to complete, Contractor

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997 shall compile the requested information and send back a complete response within ten (10) Business Days 998 of receipt of the request.
999 Article 6. Collection Service Rates
1000 6.01 Collection Service Rates. Contractor is solely responsible for determining the rates it will 1001 charge for providing Solid Waste Collection, provided that Contractor shall not charge any Service Recipient 1002 an amount that exceeds the applicable Maximum Service Rate set forth in Exhibit 1, which may only be 1003 adjusted as provided in this Agreement.
1004 6.01.1 The Maximum Service Rate set forth in Exhibit 1 is inclusive of the following 1005 components: the Collection Rate due to Contractor, the Solid Waste Administration Fee collected by 1006 Contractor and paid to the City and does not change annually, and the Post-Collection Charge which is 1007 collected by Contractor and paid to the Authority in accordance with the terms of the Post-Collection 1008 Agreement between the Authority, Contractor, and City, and any successors to such agreement in alignment 1009 with the Joint Exercise of Powers Agreement.
1010 6.01.2 Contractor shall, without regard to the amount collected pursuant to Section 6.01 of 1011 this Amendment, pay over to Authority, without reduction, limitation, offset or adjustment of any kind, all 1012 amounts authorized by Authority in accordance with Post-Collection Charge which are in addition to the 1013 rates authorized to be charged at the Designated Facility or Facilities and said payment shall be made at 1014 the times and in the manner specified by the Authority. 1015 6.01.3 Notwithstanding any other provision of the Agreement, and in addition to all rates 1016 and charges otherwise allowed under the Agreement, contractor shall collect from all residential and non1017 residential customers whose Solid Waste is delivered to the Designated Facility or Facilities the collection 1018 rate amounts specified by the Authority for such services and no more. 1019 6.02 Senior Discount as Contractor’s Good Will. In exchange for the good will of the City and 1020 the general public, Contractor voluntarily agrees to discount the rate it charges for Solid Waste Collection 1021 provided to eligible Service Recipients (the “Discount”) and that the Discount shall neither impact the 1022 Maximum Service Rates nor be otherwise paid for or subsidized by any other Service Recipients. The 1023 Discount shall be in the amount of $2.00 per month. Contractor shall make the Discount available to any 1024 person who demonstrates through appropriate documentation that they are: (i) 62 years of age or older; and 1025 (ii) the service account holder; and (iii) the head of household and occupant at the Service Unit address. 1026 Within thirty (30) days of the Commencement Date, Contractor shall provide educational materials describing 1027 and explaining the availability and how to qualify for and receive the Discount to all persons in the City 1028 currently subscribed to a discount rate program. Contractor shall thereafter advertise the availability of the 1029 Discounted services on its website throughout the Term of this Agreement and at least once per year by direct 1030 notice to all SFD Service Recipients.
1031 6.03 Adjustments to Collection Rate using CPI. Beginning on January 1, 2027, and annually 1032 thereafter, Contractor shall, subject to compliance with all provisions of this Section, receive an annual 1033 adjustment to the Collection Rate component of customer Rates.

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1034 6.03.1 CPI Adjustment Calculation. For Rate Year 2027, beginning on January 1, 2027, 1035 and for subsequent years thereafter, the rates shall be adjusted based on one hundred percent (100%) of 1036 the average change in the CPI for the 12-month period from July 1 to June 30. Therefore, the first rate 1037 adjustment, effective January 1, 2027, will be based on the percentage change in CPI for the average CPI 1038 value from October 1, 2025 to September 30, 2026, compared to the average CPI value for the previous 1039 year from October to September , rounded to the nearest hundredth of a percent. The index to be used shall 1040 be the series CUSR0000SEHG, Water and Sewer and Garbage Collection Services in U.S. city average, all 1041 urban consumers, seasonally adjusted. Should this index be eliminated or no longer available, the Parties 1042 shall mutually agree upon a new index.
1043 6.03.2 Rounding. Adjustments to the overall Maximum Service Rates shall be made only 1044 in units of one cent ($0.01). Fractions of less than one cent ($0.01) shall not be considered in making 1045 adjustments. All CPI indices shall be rounded at two (2) decimal places for the adjustment calculations. 1046 6.03.3 Maximum Service Rate Adjustment Request. On or before January 1 of each year 1047 of the Term, Contractor shall deliver to City a request proposing adjustment to the Maximum Service Rates 1048 for the subsequent calendar year (the “Adjustment Request”). The Adjustment Request shall be in a format 1049 as may be mutually agreed on between the City and Contractor and must contain or be accompanied by 1050 Contractor’s adjustment calculations for the specific services performed under this Agreement during the 1051 preceding Agreement Year in Microsoft Excel or another electronic format acceptable to the City. Contractor 1052 shall be solely responsible for the cost of preparing the Adjustment Request. Contractor shall be solely 1053 responsible for the cost of preparing the Adjustment Request. In any Rate Year that the calculation of the 1054 CPI exceeds five percent (5%), the total adjustment for that year will equal five percent (5%) and any amount 1055 over the 5% cap will roll over and be added to the rate adjustment percentage in the following year. If the 1056 CPI is negative (after accounting for any applicable rollover percentages from prior years), and any negative 1057 amount will roll over and be added to the rate adjustment percentage in the following year. 1058 6.03.3.1 Corrections. In the event the City determines the Adjustment 1059 Request contains substantial errors or omissions, Contractor shall, at its sole cost, provide a corrected 1060 report to the City. A corrected report submitted after March 1 shall be treated as a late report. 1061 6.03.3.2 Late Request. If Contractor fails to submit the Adjustment Request 1062 by March 1, the City may: (1) accept and consider the late Adjustment Report if the City, in its sole and 1063 reasonable discretion, deems there is sufficient time to review and approve the proposed adjustment in 1064 time for it to be implemented on July 1; or (2) accept and consider the late Adjustment Report at its earliest 1065 convenience, in which case any approved rate adjustment shall only go into effect prospectively thirty (30) 1066 days after the City’s approval. In no event shall Contractor apply any rate adjustment retroactively. 1067 6.03.3.3 No Request. If Contractor fails to provide any Adjustment 1068 Request, the Maximum Service Rate shall remain unchanged for the next calendar year. 1069 6.04 City Confirmation. If Contractor provides a timely Adjustment Report, the City Manager 1070 shall notify Contractor on or before December 1 whether the City has confirmed the Contractor’s calculations 1071 for the requested adjustments to the Maximum Service Rates for the next Rate Year. Contractor shall be

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1072 solely responsible for the cost of preparing the Adjustment Request. In any Rate Year that the calculation of 1073 the CPI exceeds five percent (5%), the total adjustment for that year will equal five percent (5%) and any 1074 amount over the 5% cap will roll over and be added to the rate adjustment percentage in the following year. 1075 If the CPI is negative (after accounting for any applicable rollover percentages from prior years), there will be 1076 no CPI adjustment for that year.
1077 6.05 Contractor Payment for CPI review. Contractor shall be responsible for paying the City’s 1078 cost of reviewing the annual CPI adjustment in the amount of Ten Thousand ($10,000) per year. If the City 1079 determines that Contractor has made substantial errors and has not properly submitted or correctly calculated 1080 the CPI adjustment, the City may add additional costs up to Ten Thousand ($10,000) to conduct a second 1081 review and analysis. These payment amounts shall increase annually by the CPI Adjustment Calculation in 1082 Section 6.03.1.
1083 6.06 Extraordinary Adjustments. Independent of and separate from the adjustments due to 1084 Change in Law outlined in Section 30.02, Contractor and City acknowledge that there may be infrequent 1085 extraordinary events, which, although they do not prevent either party from performing, and thus do not 1086 implicate the force majeure provisions hereof, nevertheless increase the cost of providing services above the 1087 Maximum Service Rate Adjustment articulated in Section 6.03. The obligation of the parties in such event is 1088 to act reasonably toward each other in arriving at an appropriate adjustment in rates. Accordingly, at its option, 1089 Contractor may apply to the City for an extraordinary rate adjustment should an event or circumstance arise 1090 which negatively impacts the economic operation of Contractor and which is in excess of the rate adjustment 1091 resulting from the application of Section 6.03. An extraordinary adjustment in rates will be deemed justified if 1092 it is necessary for the Contractor to make a substantial change in its operations, or substantial capital 1093 expenditure or investment to perform its obligations under this Agreement due to the occurrence of an event 1094 or circumstance which is beyond the reasonable control of Contractor. Extraordinary rate adjustments shall 1095 only be effective after approval by the City Council. Contractor may not apply for an Extraordinary Adjustment 1096 in two successive years.
1097 6.06.1 Contractor’s Burden. In the event of such an application for an extraordinary rate 1098 increase, it is understood that the Contractor shall have the burden of demonstrating to the reasonable 1099 satisfaction of the City the basis for the extraordinary increase cost. Contractor shall bear the burden of 1100 justifying its request and shall be solely responsible for the cost of preparing and submitting sufficient 1101 documentation in support of its request. City in its sole reasonable discretion may request Contractor to 1102 provide any additional information it deems necessary to fully evaluate the request, and Contractor shall be 1103 solely responsible for the cost of providing such additional information. Contractor shall allow City to review 1104 a report of its annual revenues and expenses for the services provided in the City. City shall have the right 1105 to review this information in connection with the City’s review of Contractor’s extraordinary rate adjustment 1106 request. With respect to any financial statements or any other information Contractor specifically designates 1107 as non-public information (“Confidential Information”), City agrees that, except as otherwise set forth in this 1108 Section: (a) it will hold in confidence all Confidential Information; (b) it will restrict the disclosure of 1109 Confidential Information within its own organization and to its agents or representatives who need to know 1110 the Confidential Information for the purposes of the request; (c) it will not disclose Confidential Information 1111 to any third party without the prior written consent of the Contractor; (d) it will not copy or reproduce any

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1112 written or electronically stored Confidential Information without the prior written approval of the Contractor; 1113 and (e) it will not use Confidential Information except as required for consideration of the request. City may 1114 consider increases or decreases in Contractor’s total revenues and total cost of services when reviewing an 1115 extraordinary rate adjustment request. Notwithstanding any other provision in this Section, the City will inform 1116 the Contractor upon receiving a California Public Records Act request or a subpoena for any Confidential 1117 Information by written notice delivered to the Contractor (“Notice”). The Contractor will have five (5) days 1118 from the date of the Notice to inform the City in writing of its intent to assert its confidentiality rights under 1119 this Agreement. The Contractor will then have fifteen (15) days from the date of the Notice to seek and obtain 1120 a court order or other judicial ruling to prevent the disclosure of the Confidential Information. If the Contractor 1121 fails to act within the five (5) or fifteen (15) day windows described above, the City may disclose the 1122 requested Confidential Information to the requestor or subpoenaing party. In the event Contractor seeks a 1123 court order to stay or enjoin the disclosure of the Records, Contractor agrees to indemnify and hold harmless 1124 the City, its Council, elected and appointed board or commission members, officers, employees, volunteers, 1125 and agents (collectively, "Indemnities") from and against any and all loss, liability, penalty, forfeiture, claim, 1126 demand, action, proceeding, or suit in law or equity of any and every kind and description, whether judicial, 1127 quasi-judicial, or administrative in nature, arising or resulting from or in any way connected with the subject 1128 of a CPRA, FOIA request, or subpoena for the Confidential Records. For the purposes of this Section, 1129 “Records” shall mean records created or maintained by Contractor in accordance with this Agreement, 1130 including those records that may include financial statements or Confidential Information of Contractor. 1131 Contractor’s indemnity obligation shall survive the expiration or termination of this Agreement. 1132 6.06.2 Review Costs. At the time of its request, Contractor shall also submit a payment to 1133 the City of Twenty-Five Thousand Dollars ($25,000) to defray the City’s costs to review the request. In the 1134 event the City’s reasonable costs exceed that amount, Contractor shall reimburse the City for any 1135 documented amount in excess. This payment amount shall increase annually by the CPI Adjustment 1136 Calculation in Section 6.03.1.
1137 6.06.3 Meet and Confer. The City and Contractor agree to meet and confer regarding the 1138 request and to negotiate in good faith regarding the appropriateness of the requested adjustment. 1139 6.06.4 City Review; Approval. City shall review the Contractor’s request and, in the City’s 1140 sole and reasonable judgment, make the final determination as to whether an adjustment to the Maximum 1141 Service Rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. 1142 Approval of the City Council shall be required for any Extraordinary Adjustments. The City shall notify 1143 Contractor of its decision within ninety (90) calendar days regarding whether it accepts Contractor’s request. 1144 Except as provided herein, any such change approved by the City shall not be implemented until July 1 of 1145 the next Rate Year unless a different timeframe is approved by the City Council and shall comply with 1146 Proposition 218 noticing requirements.
1147 6.07 Procedures in Event of Invalidation of Rate Adjustment. In the event that City is unable by 1148 operation of Applicable Law to approve or implement a rate increase under this Article 6, or some or all of the 1149 Maximum Service Rates are disallowed by operation of Applicable Law, Contractor will have the right, within 1150 thirty (30) days after notice of any such inability to approve or invalidation of an approved rate increase, to 1151 request, in writing, that City negotiate in good faith regarding reductions in programs, services, or fees to

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1152 compensate for any negative impact from the unapproved or invalidated rate increase. If City fails to 1153 commence negotiations in good faith or negotiations are not completed within forty-five (45) days following 1154 the date of receipt of Contractor’s request, either party may terminate this Agreement no earlier than one 1155 hundred and eighty (180) days after written notice to the other. 1156 Article 7. Collection Service Billing
1157 7.01 Responsibility for Collection Service Billing and Collection. Contractor shall be solely 1158 responsible for the billing and collecting of payments for the Solid Waste Collection Services it provides within 1159 the Service Area.
1160 7.02 Invoices. Contractor shall prepare and send out invoices, by either U.S. mail or email, to 1161 each Service Recipient in advance of all services provided by Contractor under this Agreement. Contractor 1162 shall include an online payment option for all Customers regardless of invoice format. If sent by mail, invoices 1163 for each billing period shall be placed in a separate envelope accompanied by a self-addressed return 1164 envelope. All invoices shall include Contractor’s email address, include directions for payment by payment 1165 by check, credit card, or Automated Clearing House (ACH) debit, and shall include or be accompanied by a 1166 complete billing statement showing all charges and all services provided. Contractor’s online billing portal 1167 shall include clear instructions for how to contact the Contractor if the Service Recipient has questions about 1168 an invoice. City shall have the right to direct Contractor to revise the format of all invoices and billing 1169 statements upon reasonable notice to Contractor. The Contractor shall not separately itemize the Franchise 1170 Fee, nor any other rate component, in its invoices to customers. 1171 7.03 Timing; Frequency. Contractor shall not initiate billing to any Service Unit sooner than the 1172 first day of the service period of Collections Services covered by the invoice. Contractor shall invoice Service 1173 Recipients once every month for Commercial Service Units and MFD Service Units and once every Quarter 1174 for SFD Service Units. No invoice shall be due and payable sooner than the last day of the respective month 1175 or Quarter for which Solid Waste Collection is provided. 1176 7.04 Partial Month Service. If, during a month, a Service Unit is added to or deleted from 1177 Contractor’s Service Area, Contractor shall pro-rate billing to the Service Recipient on a weekly basis, 1178 meaning one-fourth of the applicable Maximum Service Rate found in Exhibit 1 multiplied by the number of 1179 weeks of service provided by Contractor.
1180 7.05 Overpayments. Contractor shall refund or issue a service credit for overpayments by 1181 Service Recipients no later than 30 days after Contractor discovers or is notified of the overpayment. 1182 Contractor shall refund every overpayment that: (1) exceeds two hundred dollars ($200) or the amount of 1183 Service Recipient’s typical invoice, whichever is less; or (2) is due to the Service Recipient closing the account 1184 prior to the end of the billing period.
1185 7.06 Delinquent Service Accounts. Contractor shall report all Service Recipients whose 1186 accounts are delinquent by more than ninety (90 days) to the Agreement Administrator on a monthly basis.

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1187 7.07 Contractor’s Reservation of Legal Rights and Remedies. Notwithstanding any other 1188 provision of this Article, Contractor reserves its right to, and may take such action as is legally available to 1189 Contractor, to collect or cause collection of past due or over-invoiced amounts; provided, however, that 1190 Contractor shall never discontinue Solid Waste Collection to any Service Unit. Contractor may send a written 1191 notice to Service Recipient regarding payments of Billings during the current period or for prior service period. 1192 As set forth herein, collection of delinquent accounts is subject to the lien collection provisions at Section 1193 8.08.110 of the City’s Municipal Code.
1194 7.08 Collection of Past Due Accounts.
1195 7.08.1 Contractor shall be responsible for collection of payment from Customers with past1196 due accounts (“bad debt”). Contractor shall make reasonable efforts to obtain payment from delinquent 1197 accounts through issuance of late payment notices, making at least 3 telephone requests for payments to 1198 Customer and property owner (if the owner is a different Person or entity than the Customer), offering a 1199 Customer payment plan, and suspension of service in accordance with the following. 1200 7.08.2 If a Customer’s payment becomes more than one hundred twenty (120) days past 1201 due, Contractor may request approval from the City, which will not be unreasonably denied, to reduce service 1202 to that account until payment is received, providing written evidence for each account that the required 1203 collection steps have been taken. If the City approves such request, the Contractor shall provide the 1204 Customer and property owner (if the owner is different from the Customer) written notice of service reduction 1205 which includes a description of potential penalties from the City for nuisance, should it occur. All notifications 1206 and correspondence issued by Contractor shall be directed to the Customer and the owner of the property 1207 if the owner is a different Person or entity than the Customer. The City Finance Director shall, upon request 1208 of Contractor, follow the notice and hearing process set forth in Municipal Code section 8.08.110 and place 1209 delinquent accounts on the County tax roll for collection and remittance to Contractor when received from 1210 the County.
1211 7.08.3 At its option, Contractor may charge Customers a late payment fee for accounts 1212 that are over sixty (60) days past due provided that Contractor provides each Customer thirty (30) days 1213 written notice of its intent to assess the late fee. The maximum late fee is subject to the City approval and 1214 reflected in Exhibit 1.
1215 7.09 Billing Accounts After Missed Collections.
1216 7.09.1 In the event of a missed Collection, wherein Containers were properly set out in a 1217 timely manner and wherein the Contractor was unable resolve the complaint by the end of the following 1218 Workday, Contractor shall credit the account of the Customer that experienced the missed Collection by a 1219 prorated amount for that missed Service.
1220 7.09.2 In the event that a Customer was subject to a missed Collection wherein Containers 1221 were properly set out in a timely manner and wherein the Contractor was unable to return and Collect the 1222 Customer’s Solid Waste until the following week, that Customer shall not be subject to any Solid Waste 1223 Overage fees or otherwise be penalized or tracked for an instance of Overage.

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1224 Article 8. Diversion Requirements
1225 8.01 Warranties and Representations. Contractor warrants that it is aware of and familiar with 1226 City's waste stream, and that it has the ability, and shall use commercially reasonable efforts to provide and 1227 employ, sufficient programs and services to ensure City will meet or exceed City’s Diversion goals 1228 requirements (including, without limitation, amounts of Solid Waste to be Diverted, timeframes for Diversion, 1229 and any other requirements) as set forth in this Article, Applicable Law, and CalRecycle Regulations, and that 1230 Contractor will do so without imposing any costs or fees other than those set forth in Exhibit 1. Contractor 1231 hereby agrees to assist the City to meet or exceed, on an annual basis, the Diversion Compliance, by 1232 undertaking the actions set forth in Section 8.02. For purposes of this Agreement and Contractor’s obligations 1233 outlined herein, the terms “City’s Diversion”, “City’s Diversion goals”, “Diversion Requirements”, “Franchised 1234 Diversion Rate” and similar terminology means compliance with the requirements for meeting the State’s fifty 1235 percent (50%) diversion rate expressed as a pounds per day per year rate as established by CalRecycle 1236 pursuant to Public Resources Code section 41780, as Applicable Law. 1237 8.02 Contractor Required Actions. Contractor shall take all of the following actions to assist the 1238 City in meeting, on an annual basis, Diversion Compliance:
1239 8.02.1 Except for Organic Waste Collected from homeless encampments or material 1240 subject to quarantine by the California Department of Food & Agriculture, and except as provided in Sections 1241 5.06 and 5.10, Collect and deliver all Organic Waste to the Organic Waste Processing Facility for processing 1242 and Diversion.
1243 8.02.2 Except as provided in Sections 5.06 and 5.10, Collect and deliver all Recyclable 1244 Materials to the Materials Recovery Facility.
1245 8.02.3 Collect and deliver all Garbage to the Disposal Facility. 1246 8.02.4 Collect and deliver all Construction and Demolition Debris to the Materials Recovery 1247 Facility.
1248 8.02.5 Deliver all material set out for Collection in Cart, Bins, or Roll-Off Containers 1249 identified as containing Source Separated Recyclable Material to the Materials Recovery Facility for 1250 processing and Diversion.
1251 8.02.6 Deliver all material set out for Collection in Cart, Bins, or Roll-Off Containers 1252 identified as containing Source Separated Organic Waste to the Organic Waste Processing Facility for 1253 processing and Diversion.
1254 8.02.7 Only material in Garbage Carts or Garbage Bins will be delivered to the Disposal 1255 Facility for Disposal. All other material must go to the appropriate facility for full processing and Diversion. 1256 8.02.8 Contractor must take all commercially reasonable and lawful actions to maximize 1257 Diversion of materials from landfills.

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1258 8.02.9 Contractor must develop and provide sufficient accurate information and data as 1259 necessary to ensure that Contractor and City annually demonstrate Diversion Compliance to CalRecycle. 1260 8.02.10 Contractor must implement public education and outreach programs as required 1261 under this Agreement.
1262 8.03 Annual Reporting. Contractor shall calculate the Diversion Compliance Rate on an annual 1263 basis and shall deliver a written report regarding the same to the City no later than February 14 of the year 1264 following the reporting period as set forth in Section 22.06. 1265 8.04 Failure of Recyclables Market. Notwithstanding any other provision of this Agreement to 1266 the contrary, where CalRecycle has determined that there are no commercially viable markets for a specific 1267 type of Recyclable Materials, or with written notice to City, Contractor is unable to identify a market for one or 1268 more Recyclable Materials despite the exercise of commercially reasonable efforts to process and market 1269 the material, and determines to Dispose of the Recyclable Material(s), such a determination shall not 1270 constitute a failure to implement service, a failure to implement a program, or an event of default hereunder. 1271 8.05 Failure to Meet Franchised Diversion Rate. If CalRecycle determines pursuant to Public 1272 Resources Code 40059.1 that City has failed to meet the Diversion Compliance due to Contractor’s failure to 1273 undertake the actions described in this Section, Contractor must prepare, at Contractor’s cost and expense, 1274 and submit a corrective action plan to City sufficient to demonstrate good faith efforts by City to comply with 1275 Diversion Compliance and that is otherwise acceptable to CalRecycle, and may be subject to Administrative 1276 Charges and Penalties as allowed under Article 25 and specified in Exhibit 4. Contractor must also submit a 1277 written corrective action plan to the City before March 15 of the year following the missed minimum Diversion 1278 requirement. Contractor’s corrective action plan must specify all actions Contractor will take to ensure it will 1279 meet Diversion Compliance Rates in the future and shall be subject to the review and approval by the 1280 Agreement Administrator. Contractor must implement all measures identified in the corrective action plan at 1281 its sole cost and expense, unless the failure to meet Diversion Compliance was due to a Change in Law or 1282 due to the negligent acts or omissions of the City. If Contractor fails to submit an adequate corrective action 1283 plan or to fully implement a City-approved corrective action plan, it shall subject Contractor to Administrative 1284 Charges and Penalties as allowed under Article 25 and specified in Exhibit 4 in addition to any other remedies 1285 available to the City.
1286 8.06 Representations and Warranties. Contractor represents and warrants that it is aware of 1287 and familiar with the Diversion Compliance, the Applicable Laws, and City’s waste stream. Contractor 1288 represents and warrants that it has the capacity, skill, and ability to undertake the actions identified in Section 1289 8.02 above without imposing any costs or fees other than those set forth in the Schedule of Maximum Service 1290 Rates, as may be adjusted as provided for in this Agreement. Where the Diversion Compliance is modified 1291 by a Change in Law, Contractor agrees to develop and implement such actions, programs, and measures as 1292 are necessary to bring City into compliance with the modified Diversion Compliance, and City agrees that it 1293 will meet and confer with Contactor for a period not to exceed ninety (90) days regarding such actions, 1294 programs, and measures, their implementation, and adjustments to rates reasonably necessary to effectuate 1295 same in accordance with Section 30.01.

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1296 8.07 Mutual Cooperation. City and Contractor shall each reasonably cooperate in good faith 1297 with all efforts of the other Party to meet City's Diversion requirements under Applicable Law and the 1298 Contractor’s obligations under this Article. City's obligations in this regard shall include, without limitation, 1299 making such petitions and applications as may be reasonably requested by Contractor for time extensions in 1300 meeting Diversion goals, or other exceptions from the terms of Applicable Laws, and to agree to authorize 1301 such changes to Contractor’s Recyclable Materials, Organic Waste, or Solid Waste programs as may be 1302 reasonably requested by Contractor in order to achieve the minimum requirements of this Article. 1303 8.08 Contractor’s Diversion Programs. Contractor shall implement the Diversion programs 1304 required under this Agreement to ensure that City and Contractor comply with all Diversion requirements 1305 under Applicable Law and the City meets or exceeds all minimum Diversion requirements under Applicable 1306 Law. Contractor shall furthermore, at its sole cost and expense, (1) assist the City in responding to inquiries 1307 from, or prepare for and attend any hearing before, CalRecycle or any other regulatory agency relating to the 1308 City’s compliance with Applicable Law; prepare for and participate in CalRecycle’ s review of the City's SRRE; 1309 apply for any extension available under Applicable Law; develop and implement a public awareness and 1310 education program consistent with the City's SRRE and Household Hazardous Waste Element and any 1311 related requirements of Applicable Law; (2) provide the City with Recycling, source reduction, and other 1312 technical assistance as may be needed to comply with Applicable Law; and (3) advise the City of additional 1313 programs or measures Contractor can, if authorized by the City, implement to increase compliance with the 1314 Diversion requirements of Applicable Law.
1315 8.09 New Diversion Programs. If Contractor fails to meet any Diversion Compliance requirement 1316 or the City fails to meet any CalRecycle Diversion requirement, notwithstanding Contractor’s implementation 1317 of all Diversion and public education programs as required by this Agreement, the City shall direct Contractor 1318 to modify its Diversion and public education programs or implement new programs. Such modifications may 1319 constitute a City-Directed Change under Section 30.01. Contractor shall not implement new Diversion 1320 programs not described in this Agreement without the City’s prior consent. 1321 8.10 Nothing contained herein shall prohibit Contractor from meeting its Diversion requirements 1322 by any alternative methods or procedures, provided it complies with Applicable Law, as may be amended 1323 from time to time. Contractor’s ability to meet its Diversion requirements by alternative methods per this 1324 Section is subject to Agreement Administrator review and approval. 1325 Article 9. Service Unit Types
1326 9.01 Service Units. Service Units include all the following categories of Premises which are in 1327 the Service Area as of July 1, 2025, and all such Premises which may be added to the Service Area by means 1328 of annexation, new construction, or as otherwise set forth in this Agreement during Term of this Agreement:
1329 9.01.1 SFD Service Units. Services are specified in Article 10. 1330 9.01.2 MFD Service Units. Services are specified in Article 11. 1331 9.01.3 Commercial Service Units. Services are specified in Article 12.

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1332 9.01.4 Industrial Service Units. Services are specified in Article 13. 1333 9.01.5 City Service Units. Services are specified in Article 14. 1334 9.01.6 Any question as to whether a Premises falls within one of these categories will be 1335 determined by the Agreement Administrator and the determination of the Agreement Administrator will be 1336 final.
1337 9.02 Service Unit Changes. City and Contractor acknowledge that during the Term of this 1338 Agreement it may be necessary or desirable to add or delete Service Units for which Contractor will provide 1339 Service.
1340 9.02.1 Additions and Deletions. Contractor must provide services described in this 1341 Agreement to new Service Units in Contractor’s Service Area within five (5) Workdays of receipt of notice 1342 from City or the new Service Unit to begin such Service. 1343 9.03 Annexation. If, during Term of the Agreement, additional territory within or adjacent to the 1344 Contractor’s Service Area is acquired by City through annexation, subject to the requirements of Public 1345 Resources Code Section 49520, Contractor agrees to provide Solid Waste Collection in such annexed area 1346 in accordance with the provisions and Maximum Service Rates set forth in this Agreement after termination 1347 of former contractor’s rights to provide service have been exhausted. Such Solid Waste Collection must begin 1348 within five (5) Workdays of receipt of written notice from City. Contractor may not begin Collection Service 1349 without written authorization from City.
1350 9.04 Route Map Update. Contractor must revise the Service Unit route maps to show the 1351 addition of Service Units added due to annexation and must provide such revised maps to the Agreement 1352 Administrator as requested.
1353 9.05 Shared Service. Provided that such action is not disallowed under City Municipal Code, 1354 City businesses shall not be prohibited from sharing bins with other businesses as a single Commercial 1355 Service Unit, or from coordinating to share a single Commercial Service Unit Collection account; and City 1356 residents shall not be prohibited from sharing bins with other residents as a single SFD Service Unit, or from 1357 coordinating to share a single SFD Service Unit Collection account. 1358 Article 10. Residential Service
1359 10.01 SFD Conditions of Service. Except as set forth below, Contractor must provide SFD 1360 Collection Services to all SFD Units in the Service Area. The SFD Services are governed by the following 1361 terms and conditions:
1362 10.01.1 Curb Service. Except for those Service Recipients that choose to receive Bins for 1363 service, Contractor must provide SFD Collection Service to all SFD Service Units in the Service Area whose 1364 SFD Solid Waste is properly containerized in Garbage Carts; Recyclable Materials are properly 1365 containerized in Recyclable Materials Carts, except as set forth in Section10.09.2; and Organic Wastes are 1366 properly containerized in Organic Waste Carts, except as set forth in Section 10.10.3; and where the

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1367 Garbage, Recyclable Materials, and Organic Waste carts have been placed within three (3) feet of the curb, 1368 swale, paved surface of the public roadway, closest accessible roadway, or other such location agreed to 1369 by Contractor and Service Recipient that will provide safe and efficient accessibility to Contractor's Collection 1370 crew and vehicle.
1371 10.01.2 Bundled SFD Cart Service. Contractor will use a weekly Bundled SFD Solid Waste 1372 Collection Service system with one (1) 20-gallon, 35-gallon, 65-gallon or 95 gallon Black or Grey Garbage 1373 Cart, one (1) 65-gallon- Blue Recyclable Materials Cart, and one (1) 65 gallon Green Organic Waste Cart 1374 as part of the base SFD Solid Waste Collection Service. SFD Service Recipients shall receive additional 1375 Recyclable Materials Carts and additional Organic Waste Cart to be included at no additional cost, if 1376 requested. Additional Recyclable Materials Carts and Organic Waste Carts shall be made available in 1377 accordance with the service rates set forth in Exhibit 1. Garbage Carts with a capacity of 20 gallons and/or 1378 Recyclable Materials and Organic Waste Carts with a capacity or 65 gallons may be requested by Customers 1379 that can demonstrate that they (a) have cart storage space constraints and (b) do not generate sufficient 1380 quantities of a waste stream type to justify the larger size of cart. Pricing for downsizing Carts, upsizing carts, 1381 or adding additional Carts, relative to the base Bundled Service, are included in Exhibit 1. 1382 10.01.3 On-Premises Service. Notwithstanding any term or definition set forth in this 1383 Agreement, Contractor must provide Collection of SFD Garbage, Recyclable Materials, and Organic Waste 1384 on the SFD Service Recipients Premises to an SFD Service Unit as follows. 1385 10.01.3.1 At no additional cost to the SFD Service Unit. SFD Service Units 1386 where all adult Service Recipients residing therein have disabilities that prevent them from setting their 1387 Garbage, Recyclable Materials, Organic Waste Cart, or Bulky Waste at the curb for Collection, and if a 1388 request for on-premises service has been made. For Bulky Waste on-premises services, materials must be 1389 staged externally to the Dwelling Unit in a location that’s accessible and visible to Contractor, as close to 1390 the Service Unit’s standard curbside Collection location as is feasible for the Customer. 1391 10.01.3.2 At an additional cost to the SFD Service Unit. 1392 A. SFD Service Units where topography, steep driveways, below-grade dwellings, or 1393 limited access to public streets that prevent the SFD Service Recipient from setting their Garbage, 1394 Recyclable Materials, or Organic Waste Cart at the curb for Collection, as determined by the City and 1395 agreed by the Contractor, and if a request for on-premises service has been made. 1396 B. SFD Service Units inaccessible by standard 3- or 4-axel Collection Vehicles as 1397 determined by the Contractor and agreed by the City. Stinger/scout/pup truck services shall be provided for 1398 the retrieval of Collection Containers from locations with accessibility constraints that make Containers 1399 difficult or impossible to access using regular trash Collection trucks. 1400 C. Contractor must offer “push services” to SFD Service Recipients other than those 1401 listed above on a subscription basis upon request for the Maximum Service Rates set forth in Exhibit 1. 1402 Push services include, but are not limited to, dismounting from the Collection Vehicle, moving the Collection 1403 Containers from their storage location for Collection, and returning the Collection Containers back to their 1404 storage location.

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1405 10.01.3.3 Contractor must provide on-premises Collection Service on the 1406 same Workday that curbside Collection would otherwise be provided to the SFD Service Unit. 1407 10.02 Frequency and Scheduling of Service. SFD Collection Service must be provided one (1) 1408 time per week, on a schedule matching the City’s current service schedule. SFD Collection Service must be 1409 scheduled so that all Service Units receive Garbage Collection Service, Recyclable Materials Collection 1410 Service, and Organic Waste Collection Service on the same Workday. SFD Collection Service must be 1411 provided, commencing no earlier than 6:00 a.m. and terminating no later than 6:00 p.m., Monday through 1412 Friday, except for Holidays in accordance with Section 5.03. The hours, day, or both of Collection may be 1413 extended due to extraordinary circumstances or conditions with the prior verbal or written consent of the 1414 Agreement Administrator.
1415 10.03 Manner of Collection. The Contractor must provide Collection Service with as little 1416 disturbance as possible; the Contractor must leave any Garbage, Recyclable Materials, or Organic Waste 1417 Cart in an upright position, with the lid closed, at the same point it was Collected, without obstructing alleys, 1418 roadways, driveways, sidewalks, or mailboxes. Contractor’s employees providing Collection Service must 1419 follow the regular walk for pedestrians while on private property and may not trespass nor cross property to 1420 the adjoining Premises unless the occupant or owner of both properties has given permission. Care should 1421 be taken to prevent damage to property, including flowers, shrubs, and other plantings. 1422 10.03.1 Any damage caused by Contractor to Service Recipient property shall be repaired 1423 or replaced promptly.
1424 10.03.2 Notification of Accidents. Contractor shall notify City Representative of any 1425 accidents occurring within the Service Area that involve Contractor’s vehicles, employees, or equipment that 1426 result in any personal injury or property damage. Such notification shall be made within twenty-four (24) 1427 hours of occurrence to City Representative via both (a) email and (b) either an in-person visit or a telephone 1428 call. If Contractor is unable to reach City Representative in person or via telephone, a voicemail is an 1429 acceptable alternative.
1430 10.04 Kitchen Food Waste Pails. In the event that Kitchen Food Waste Pails are no longer 1431 provided by the West Contra Costa Integrated Waste Management Authority, and subject to the terms and 1432 conditions of Section 30.01, Contractor must make available, upon request, Kitchen Food Waste Pails that 1433 comply with Collection Container specifications in Exhibit 3. If any changes to these specifications are 1434 adopted after the Commencement Date that results in Contractor being required to replace Collection 1435 Containers before they have been fully depreciated, Contractor will be eligible for additional compensation in 1436 accordance with Exhibit 1.
1437 10.05 Replacement of Carts. Contractor’s employees must take care to prevent damage to Carts 1438 by unnecessary rough treatment. Any Cart damaged by the Contractor must be replaced by Contractor, at 1439 Contractor's expense, within five (5) Workdays at no cost or inconvenience to the Service Recipient. 1440 10.05.1 Upon notification to Contractor by City or a Service Recipient that the Service 1441 Recipient’s Cart(s) has been stolen or damaged beyond repair through no fault of Contractor, Contractor

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1442 must deliver a replacement Cart(s) to such Service Recipient within five (5) Workdays. Contractor must 1443 maintain records documenting all Cart replacements occurring. 1444 10.05.2 Each Service Recipient is entitled to the replacement of one (1) lost, destroyed, or 1445 stolen Cart every ten (10) years during the life of this Agreement at no cost to the Service Recipient. Except 1446 in the case of a Cart that must be replaced because of damage caused by Contractor or in the case where 1447 Contractor elects to replace a Cart rather than repair it on-site, Contractor will be compensated for the cost 1448 of those replacements in excess of one (1) per type of Cart per Service Recipient during the aforementioned 1449 10-year period within the Term of the Agreement, in accordance with the “Cart Exchange” Maximum Service 1450 Rates set forth in Exhibit 1, or as may be adjusted by the City from time to time as provided under this 1451 Agreement.
1452 10.05.3 Contractor understands and agrees that this provision is intended to be applied on 1453 a per Cart type, individual Service Recipient basis, and accordingly each Service Recipient could receive up 1454 to three (3) replacement Carts, one (1) of each type, every ten (10) years during the Term of the Agreement. 1455 10.05.4 Repair of Garbage, Recyclable Materials, and Organic Waste Carts. Contractor is 1456 responsible for the repair of Carts, including, but not limited to, hinged lids, wheels, and axles. Within five (5) 1457 Workdays of notification by the City or a Service Recipient of the need for such repairs, Contractor must 1458 repair the Cart or, if necessary, remove the Cart for repairs and deliver a replacement Cart to the Service 1459 Recipient. Collection Container repair also includes the removal of graffiti from the Collection Container. 1460 10.05.5 Cart Exchange. Upon notification to Contractor by City or a Service Recipient that 1461 a change in the size of a Cart is requested, Contractor must deliver such Cart to such Service Recipient 1462 within five (5) Workdays. Each SFD Service Unit is eligible to receive one (1) free Cart exchange per 1463 Calendar Year during the Term of this Agreement for moving to a larger Garbage, Recyclable Materials, or 1464 Organic Waste Cart size. Each SFD Service Unit is eligible to receive unlimited Cart exchanges per Calendar 1465 Year during the Term of this Agreement for moving to a smaller Garbage Cart size. Each SFD Service Unit 1466 is eligible to receive one (1) free Cart exchange per Calendar Year during the Term of this Agreement for 1467 moving to a smaller Recyclable Materials or Organic Waste Cart size, provided they meet the qualifications 1468 articulated in Section 10.01.2 above. Accordingly, Contractor will be compensated only for the cost of those 1469 exchanges in excess of one (1) per Calendar Year for those Service Units receiving larger Cart sizes, in 1470 accordance with the “Cart Exchange” service rate as set forth in Exhibit 1 or as may be adjusted this 1471 Agreement.
1472 10.05.6 Additional Cart Request. Upon notification to the Contractor by City or a Service 1473 Recipient that additional Black or Grey Carts for Garbage, Blue Carts for Recyclable Materials, or Green 1474 Carts Organic Waste are requested, Contractor shall deliver such Carts to such Service Recipient within five 1475 (5) Workdays, at the rate set forth in Exhibit 1.
1476 10.06 Ownership of Carts. Ownership of Carts is vested in the Contractor. 1477 10.07 Cleaning of Collection Containers. Once every five (5) years, starting at the date of 1478 signature of this agreement, each SFD Service Recipient is entitled to request the exchange of up to three

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1479 (3) carts, one each of dirty Garbage, Recyclable Materials, and Organic Waste Carts, for clean Garbage 1480 Recyclable Materials, or Organic Waste carts. Upon receiving such a request from an SFD Service Recipient 1481 within the allowed timeframe, Contractor must replace the dirty Collection Container(s) with clean Collection 1482 Container(s). Any Collection Container cleanings done at a Contractor facility must be done in such a manner 1483 that results in no water entering the City’s storm drain system. This service must be provided at no charge to 1484 the Service Recipient, so long as the service is not requested more than once every five years. In addition, 1485 regardless of whether this cleaning is requested by the Service Recipient, Contractor will ensure that all 1486 Collection Containers are exchanged on an as-needed basis so as to maintain a clean appearance and 1487 proper function. Additional exchanges beyond once every five years will be subject to the Maximum Service 1488 Rate set forth in Exhibit 1.
1489 10.08 SFD Garbage Collection Service. This service is governed by the following terms and 1490 conditions:
1491 10.08.1 Non-Collection. Contractor is not required to Collect any Garbage that is not placed 1492 in a Garbage Cart. For every event of non-collection, Contractor must provide the following written notice 1493 via email, U.S. mail, or in person (which may be by Non-Collection Notice) to the Service Recipient: the date 1494 of the Solid Waste Non-Collection and the reason for Non-Collection. Contractor’s Non-Collection Notice for 1495 SFD Service Recipients shall also contain instructions on (a) how to schedule a Bulky Waste Collection and, 1496 if relevant, (b) how to request an additional Collection Container, as well as a QR code that links to a website 1497 with all Disposal programs offered by the City. If Non-Collection occurs for some unforeseeable circumstance 1498 not listed above that the Contractor encounters and is impeded by, Contractor shall provide the same written 1499 notice as described in this Section.
1500 10.08.2 Disposal Facility. Except as set forth below, all Garbage Collected as a result of 1501 performing Solid Waste Collection must be transported to, and Disposed of, at the Disposal Facilities listed 1502 in Exhibit 7. Failure to comply with this provision may result in assessment of Administrative Charges and 1503 Penalties as specified in Exhibit 4 and may result in Contractor being in default under this Agreement. 1504 10.08.3 SFD Recyclable Materials Service. This service is governed by the following terms 1505 and conditions
1506 10.08.4 Recyclable Materials - Improper Procedure. The Contractor is not required to 1507 Collect Recyclable Materials if the Service Recipient does not segregate the Recyclable Materials from Solid 1508 Waste or Organic Waste. Furthermore, Contractor is not required to Collect Recyclable Materials that are 1509 contaminated through commingling with Solid Waste or Organic Waste. To address contamination, 1510 Contractor must follow the steps set forth in Section 5.07. 1511 10.08.5 Materials Recovery Facility. Except as provided in Section 5.07, all Recyclable 1512 Materials Collected as a result of performing Recycling services must be delivered to the Materials Recovery 1513 Facility listed in Exhibit 7. Failure to comply with this provision may result in assessment of Administrative 1514 Charges and Penalties as specified in Exhibit 4 and may result in Contractor being in default under this 1515 Agreement.

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1516 10.08.6 Recyclable Materials - Changes to Services. Should changes in Applicable Law 1517 arise that necessitate any additions or deletions to the services described in this Section, including the type 1518 of items included as Recyclable Materials, the parties will negotiate any necessary cost changes and will 1519 enter into an Agreement amendment covering such modifications to the services to be performed and the 1520 compensation to be paid in accordance with Section 30.02 before undertaking any changes or revisions to 1521 such services.
1522 10.09 SFD Organic Waste Collection Service. This service is governed by the following terms 1523 and conditions:
1524 10.09.1 Organic Waste Processing Facility. Contractor must deliver all Collected Organic 1525 Waste to the Organic Waste Processing Facility listed in Exhibit 7 and agreed upon by the City. Failure to 1526 comply with this provision may result in assessment of Administrative Charges and Penalties as specified in 1527 Exhibit 4 and may result in Contractor being in default under this Agreement. 1528 10.09.2 Holiday Tree Collection. Contractor must Collect Holiday Trees set out at the curb 1529 for Collection during the three-week period beginning December 26th each year during the Term of this 1530 Agreement. Holiday Trees set out for Collection may either be containerized within an Organic Waste Cart 1531 or placed on the ground near the Service Unit’s Collection Containers. Contractor must deliver the Collected 1532 Holiday Trees to the Organic Waste Processing Facility for Diversion through uses other than Alternative 1533 Daily Cover or Beneficial Use. This annual service will be provided at no additional charge to the Service 1534 Recipient and shall not be counted as one of the free annual Bulky Waste Collections as set forth in Section 1535 10.10. Contractor is not required to Divert Holiday Trees with tinsel, flocking, or ornaments. 1536 10.09.3 Organic Waste - Improper Procedure. Contractor is not required to Collect Organic 1537 Waste if the Service Recipient does not segregate the Organic Waste from Solid Waste or Recyclable 1538 Materials. Furthermore, Contractor is not required to Collect Organic Wastes that are contaminated through 1539 commingling with Solid Waste or Recyclable Materials. Contractor will address contamination in accordance 1540 with Section 5.07.
1541 10.09.4 Home Compost Bins. In the event that home compost bins are no longer provided 1542 to the City by West Contra Costa Integrated Waste Management Authority, Contractor shall store, promote, 1543 and distribute a maximum of 300 Home Compost Bins per Calendar Year to be used by Service Recipients 1544 to Compost Organic Waste. Contractor is responsible for purchase and storage of Home Compost Bins, and 1545 Contractor is responsible for providing Home Compost Bins to SFD Service Recipients upon request, until 1546 the maximum of 300 has been reached. The services described in this section are not effective until such 1547 time as the City and Contractor agree to a City-Directed Change per Section 30.01. 1548 10.10 SFD Bulky Waste Collection Service. This service is governed by the following terms and 1549 conditions:
1550 10.10.1 Conditions of Service. Contractor must provide SFD Bulky Waste Collection 1551 Service, including the Collection of E-Waste and U-Waste, to all SFD Service Units in the Service Area 1552 whose Bulky Waste, E-Waste, and U-Waste have been placed within three (3) feet of the curb, swale, paved

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1553 surface of the public roadway, closest accessible roadway, or other such location agreed to by Contractor 1554 and Service Recipient, that will provide safe and efficient accessibility to Contractor's Collection crew and 1555 vehicle. Up to two (2) times per Calendar Year, each Service Recipient is entitled to receive Bulky Waste 1556 Disposal amounting to the equivalent of (a) three (3) Large Items, (b) fifteen (15) 35-gallon bags with a 1557 maximum weight of 50 pounds per each bag, (c) four (4) 95-gallon bags with a maximum weight of 50 pounds 1558 per each bag, (d) five (5) E-Waste items, or (e) up to 1.8 cubic yards of Garbage or Organic Waste per SFD 1559 Service Unit at no additional cost and expense. For subsequent Collection in any Calendar Year, the 1560 Contractor shall receive compensation from the Customer at the rate for such service as set in Exhibit 1. 1561 10.10.2 Frequency of Service. Bulky Waste Collection Service will be provided on the next 1562 regular Collection day if the request is received at least ten (10) Workdays in advance of the next regular 1563 Collection day. The Service Recipient may not intentionally commingle residential Bulky Waste with other 1564 Residential Waste.
1565 10.10.3 Bulky Waste Containing Freon. In the event Contractor Collects Bulky Waste that 1566 contain Freon, Contractor must handle such Bulky Waste in a manner such that the Bulky Waste is not 1567 subject to regulation as Hazardous Waste under applicable State and Federal laws or regulations. 1568 10.10.4 Maximum Reuse and Recycling. Contractor must Dispose of Bulky Waste Collected 1569 from Service Units pursuant to this Agreement in accordance with the following hierarchy:
1570 10.10.4.1 Reuse as is (where energy efficiency is not compromised). 1571 10.10.4.2 Disassemble for reuse or Recycling.
1572 10.10.4.3 Recycle.
1573 10.10.4.4 Disposal.
1574 10.10.5 Disposal of Bulky Waste. Contractor may not landfill such Bulky Waste unless the 1575 Bulky Waste cannot be reused or recycled.
1576 Article 11. MFD Service
1577 11.01 MFD Conditions of Service. Except as set forth below, Contractor must provide MFD 1578 Collection Services to all MFD Units in the Service Area. The MFD Services are governed by the following 1579 terms and conditions:
1580 11.01.1 Bundled MFD Cart Service. Except for those Service Recipients that choose to 1581 receive Bins for service, Contractor must provide MFD Collection Service to all MFD Service Units in the 1582 Service Area whose MFD Solid Waste is properly containerized in Black/Grey Garbage Carts; Blue 1583 Recyclable Materials are properly containerized in Recyclable Materials Carts, except as set forth in Section 1584 11.08.4; and Organic Wastes are properly containerized in Green Organic Waste Carts, except as set forth 1585 in Section 11.09.5; and where the Garbage, Recyclable Materials, and Organic Waste carts have been 1586 placed within three (3) feet of the curb, swale, paved surface of the public roadway, closest accessible

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1587 roadway, or other such location agreed to by Contractor and Service Recipient that will provide safe and 1588 efficient accessibility to Contractor's Collection crew and vehicle. 1589 11.01.2 Bundled MFD Bin Service. Contractor must provide MFD Solid Waste Collection 1590 Service to MFD Service Units in the Service Area that choose to receive Bins for service. MFD Collection 1591 Service shall be provided in Garbage Bins at the size and frequency as requested by the MFD Service 1592 Recipient and including at no additional cost one (1) 65-Gallon Blue Recyclable Materials Cart and one (1) 1593 65 Gallon Green Organic Waste Cart as part of the base bundled MFD Collection Service. Additional 1594 services may be requested by the MFD Service Recipient. To be exempted from MFD Recyclable Materials 1595 Service or MFD Organic Waste Collection Service, Service Recipient must apply for exemption to the 1596 Contractor. All such exemption applications must be reported and approved by the City. Additional Collection 1597 Containers or different size Collection Containers are subject to the applicable Maximum Service Rate set 1598 forth in Exhibit 1.
1599 11.01.3 On-Premises Service. Notwithstanding any term or definition set forth in this 1600 Agreement, Contractor must provide Collection of MFD Garbage, Recyclable Materials, and Organic Waste 1601 on the MFD Service Recipients Premises to an MFD Service Unit as follows. 1602 11.01.3.1 At no additional cost to the MFD Service Unit. MFD Service Units 1603 where all adult Service Recipients residing therein have disabilities that prevent them from setting their 1604 Garbage, Recyclable Materials, Organic Waste Cart, or Bulky Waste at the curb for Collection, and if a 1605 request for on-premises service has been made. For Bulky Waste on-premises services, materials must be 1606 staged externally to the Dwelling Unit in a location that’s accessible and visible to Contractor, as close to 1607 the Service Unit’s standard curbside Collection location as is feasible for the Customer. 1608 11.01.3.2 At an additional cost to the MFD Service Unit. 1609 A. MFD Service Units where topography, steep driveways, below-grade dwellings, or 1610 limited access to public streets that prevent the MFD Service Recipient from setting their Garbage, 1611 Recyclable Materials, or Organic Waste Cart at the curb for Collection, as determined by the City and 1612 agreed by the Contractor, and if a request for on-premises service has been made. 1613 B. MFD Service Units inaccessible by standard 3- or 4-axel Collection Vehicles as 1614 determined by the Contractor and agreed by the City. Stinger/scout/pup truck services shall be provided for 1615 the retrieval of Collection Containers from locations with accessibility constraints that make Containers 1616 difficult or impossible to access using regular trash Collection trucks. 1617 C. Contractor must offer “push services” to MFD Service Recipients other than those 1618 listed above on a subscription basis upon request for the Maximum Service Rate set forth in Exhibit 1. Push 1619 services include, but are not limited to, dismounting from the Collection Vehicle, moving the Collection 1620 Containers from their storage location for Collection, and returning the Collection Containers back to their 1621 storage location.
1622 11.01.3.3 Contractor must provide on-premises Collection Service on the 1623 same Workday that curbside Collection would otherwise be provided to the MFD Service Unit.

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1624 11.02 Frequency and Scheduling of Service. MFD Collection Service must be provided, 1625 commencing no earlier than 6:00 a.m. and terminating no later than 6:00 p.m., Monday through Friday. This 1626 service must be provided as deemed necessary and determined between Contractor and the MFD Service 1627 Unit, but such service must be received no less than one (1) time per week with no exception for Holiday(s) 1628 as set forth herein, except that Collection service scheduled to fall on a Holiday may be rescheduled as 1629 determined between the Service Unit and Contractor as long as the minimum frequency requirement is met. 1630 The size of the Container and the frequency (above the minimum) of Collection will be determined between 1631 the MFD Service Unit and Contractor. However, size and frequency must be sufficient to provide that no Solid 1632 Waste need be placed outside the Collection Container. Contractor must provide Containers as part of the 1633 Commercial Collection Maximum Service Rates set forth in Exhibit 1. Service Recipients may own and 1634 provide their own Compactor provided that the Service Recipient is completely responsible for its proper 1635 maintenance, and that such Compactor is of a type that is compatible with Contractor's equipment. Contractor 1636 shall operate equipment that is compatible with pre-existing Service Recipient-owned compactors. All other 1637 Collection Containers used by Service Recipients must be owned and supplied by Contractor. 1638 11.03 Manner of Collection. The Contractor must provide Collection Service with as little 1639 disturbance as possible; the Contractor must leave any Garbage, Recyclable Materials, or Organic Waste 1640 Cart in an upright position, with the lid closed, at the same point it was Collected, without obstructing alleys, 1641 roadways, driveways, sidewalks, or mailboxes. Contractor’s employees providing Collection Service must 1642 follow the regular walk for pedestrians while on private property and may not trespass nor cross property to 1643 the adjoining Premises unless the occupant or owner of both properties has given permission. Care should 1644 be taken to prevent damage to property, including flowers, shrubs, and other plantings. 1645 11.03.1 Any damage caused by Contractor to Service Recipient property shall be repaired 1646 or replaced promptly.
1647 11.03.2 Notification of Accidents. Contractor shall notify City Representative of any 1648 accidents occurring within the Service Area that involve Contractor’s vehicles, employees, or equipment that 1649 result in any personal injury or property damage. Such notification shall be made within twenty-four (24) 1650 hours of occurrence to City Representative via both (a) email and (b) either an in-person visit or a telephone 1651 call. If Contractor is unable to reach City Representative in person or via telephone, a voicemail is an 1652 acceptable alternative.
1653 11.04 Kitchen Food Waste Pails. At the start of this Agreement, Contractor must make available, 1654 upon request, Kitchen Food Waste Pails that comply with Collection Container specifications in Exhibit 3. 1655 11.05 Replacement of Carts. Contractor’s employees must take care to prevent damage to Carts 1656 by unnecessary rough treatment. Any Cart damaged by the Contractor must be replaced by Contractor, at 1657 Contractor's expense, within five (5) Workdays at no cost or inconvenience to the Service Recipient. 1658 11.05.1 Upon notification to Contractor by City or a Service Recipient that the Service 1659 Recipient’s Cart(s) has been stolen or damaged beyond repair through no fault of Contractor, Contractor 1660 must deliver a replacement Cart(s) to such Service Recipient within five (5) Workdays. Contractor must 1661 maintain records documenting all Cart replacements occurring monthly.

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1662 11.05.2 Each Service Recipient is entitled to the replacement of one (1) lost, destroyed, or 1663 stolen Cart every ten (10) years during the life of this Agreement at no cost to the Service Recipient. Except 1664 in the case of a Cart that must be replaced because of damage caused by Contractor or in the case where 1665 Contractor elects to replace a Cart rather than repair it on-site, Contractor will be compensated for the cost 1666 of those replacements in excess of one (1) per type of Cart per Service Recipient during the aforementioned 1667 10-year period within the Term of the Agreement, in accordance with the “Cart Exchange” Maximum Service 1668 Rate set forth in Exhibit 1, or as may be adjusted by the City from time to time as provided under this 1669 Agreement.
1670 11.05.3 Contractor understands and agrees that this provision is intended to be applied on 1671 a per Cart type, individual Service Recipient basis, and accordingly each Service Recipient could receive up 1672 to three (3) replacement Carts, one (1) of each type, every ten (10) years during the Term of the Agreement. 1673 11.05.4 Repair of Garbage, Recyclable Materials, and Organic Waste Carts. Contractor is 1674 responsible for the repair of Carts, including, but not limited to, hinged lids, wheels, and axles. Within five (5) 1675 Workdays of notification by the City or a Service Recipient of the need for such repairs, Contractor must 1676 repair the Cart or, if necessary, remove the Cart for repairs and deliver a replacement Cart to the Service 1677 Recipient. Collection Container repair also includes the removal of graffiti from the Collection Container. 1678 11.05.5 Cart Exchange. Upon notification to Contractor by City or a Service Recipient that 1679 a change in the size of a Cart is requested, Contractor must deliver such Cart to such Service Recipient 1680 within five (5) Workdays. Each MFD Service Unit is eligible to receive one (1) free Cart exchange per 1681 Calendar Year during the Term of this Agreement for moving to a larger Garbage, Recyclable Materials, or 1682 Organic Waste Cart size. Each MFD Service Unit is eligible to receive unlimited Cart exchanges per 1683 Calendar Year during the Term of this Agreement for moving to a smaller Garbage Cart size. Each MFD 1684 Service Unit is eligible to receive one (1) free Cart exchange per Calendar Year during the Term of this 1685 Agreement for moving to a smaller Recyclable Materials or Organic Waste Cart size, provided they can 1686 demonstrate that they (a) have cart storage space constraints and (b) do not generate enough of a waste 1687 stream type to justify the larger size of cart. Accordingly, Contractor will be compensated only for the cost of 1688 those exchanges in excess of one (1) per Calendar Year for those Service Units receiving larger Cart sizes, 1689 in accordance with the “Cart Exchange” service rate as set forth in Exhibit 1 or as may be adjusted this 1690 Agreement.
1691 11.05.6 Additional Cart Request. Upon notification to the Contractor by City or a Service 1692 Recipient that additional Carts for Garbage, Recyclable Materials, or Organic Waste are requested, 1693 Contractor shall deliver such Carts to such Service Recipient within five (5) Workdays, at the rate set forth 1694 in Exhibit 1.
1695 11.05.7 Ownership of Carts. Ownership of Carts is vested in the Contractor. 1696 11.06 Cleaning of Collection Containers. Once every five (5) years, starting at the date of 1697 signature of this agreement, each MFD Service Recipient is entitled to request the exchange of up to three 1698 (3) carts, one each of dirty Garbage, Recyclable Materials, and Organic Waste Carts, for clean Garbage 1699 Recyclable Materials, or Organic Waste carts. Upon receiving such a request from an MFD Service Recipient

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1700 within the allowed timeframe, Contractor must replace the dirty Collection Containers with clean Collection 1701 Containers. Any Collection Container cleanings done at a Contractor facility must be done in such a manner 1702 that results in no water entering the City’s storm drain system. This service must be provided at no charge to 1703 the Service Recipient, so long as the service is not requested more than once every five years. In addition, 1704 regardless of whether this cleaning is requested by the Service Recipient, Contractor will ensure that all 1705 Collection Containers are cleaned on an as-needed basis so as to maintain a clean appearance and proper 1706 function. Additional cleanings beyond once every five years will be subject to the Maximum Service Rate set 1707 forth in Exhibit 1.
1708 11.07 MFD Garbage Collection Service. This service is governed by the following terms and 1709 conditions:
1710 11.07.1 Non-Collection. Contractor is not required to Collect any Garbage that is not placed 1711 in a Garbage Cart. In the event of non-collection, Contractor must provide the following written notice via 1712 email, U.S. mail, or in person (which may be by Non-Collection Notice) to the Service Recipient: the date of 1713 the Solid Waste Non-Collection and the reason for Non-Collection. Contractor’s Non-Collection Notice for 1714 MFD Service Recipients shall also contain instructions on (a) how to schedule a Bulky Waste Collection and, 1715 if relevant, (b) how to request an additional Collection Container, as well as a QR code that links to a website 1716 with all disposal programs offered by the City. If Non-Collection occurs for some unforeseeable circumstance 1717 not listed in this Agreement that the Contractor encounters and is impeded by, Contractor shall provide the 1718 same written notice as described in this Section.
1719 11.07.2 Disposal Facility. Except as set forth below, all Garbage Collected as a result of 1720 performing Solid Waste Collection must be transported to, and Disposed of, at the Disposal Facilities listed 1721 in Exhibit 7. Failure to comply with this provision may result in assessment of Administrative Charges and 1722 Penalties as specified in Exhibit 4 and may result in Contractor being in default under this Agreement. 1723 11.08 MFD Recyclable Materials Service. This service is governed by the following terms and 1724 conditions:
1725 11.08.1 Conditions of Service. Contractor must provide MFD Recyclable Materials Service 1726 to all MFD Service Units in the Service Area whose Recyclable Materials are properly containerized in 1727 Recyclable Materials Collection Containers except as set forth below, where the Recyclable Materials 1728 Collection Containers are accessible. The Maximum Service Rates for Contractor’s MFD Recyclable 1729 Materials Services are set forth in Exhibit 1.
1730 11.08.2 Base MFD Recyclable Materials Service. All MFD Service Recipients subscribing 1731 to MFD Solid Waste Collection Service must receive weekly Collection of Recyclable Materials with a 1732 minimum of at least one 65-gallon Recyclable Materials Cart per Service Recipient and included in the 1733 Bundled Rate set forth in Exhibit 1. The actual configuration of Recyclable Materials Collection Container 1734 sizes to be provided will be based on the total equivalent volume and configured in a manner determined by 1735 the Service Recipient in consultation with Contractor.

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1736 11.08.3 Overages. Corrugated cardboard that will not fit inside the Recyclable Materials 1737 Cart may be placed beside the Recyclable Materials Cart if flattened. 1738 11.08.4 Recyclable Materials - Improper Procedure. The Contractor is not required to 1739 Collect Recyclable Materials if the Service Recipient does not segregate the Recyclable Materials from Solid 1740 Waste or Organic Waste. Furthermore, Contractor is not required to Collect Recyclable Materials that are 1741 contaminated through commingling with Solid Waste or Organic Waste. To address contamination, 1742 Contractor must follow the steps set forth in Section 5.07. 1743 11.08.5 Materials Recovery Facility. Except as provided in Section 5.07, all Recyclable 1744 Materials Collected as a result of performing Recyclable Materials services must be delivered to the 1745 Materials Recovery Facility listed in Exhibit 7. Failure to comply with this provision may result in assessment 1746 of Administrative Charges and Penalties as specified in Exhibit 4 and may result in Contractor being in 1747 default under this Agreement.
1748 11.08.6 Recyclable Materials - Changes to Services. Should changes in Applicable Law 1749 arise that necessitate any additions or deletions to the services described in this Section, including the type 1750 of items included as Recyclable Materials, the parties will negotiate any necessary cost changes and will 1751 enter into an Agreement amendment covering such modifications to the services to be performed and the 1752 compensation to be paid in accordance with Section 30.02 before undertaking any changes or revisions to 1753 such services.
1754 11.09 MFD Organic Waste Collection Service. This service is governed by the following terms 1755 and conditions:
1756 11.09.1 Base MFD Organic Waste Service. All MFD Service Recipients subscribing to MFD 1757 Garbage Collection Service must receive weekly Collection of the equivalent volume of at least one (1) 65- 1758 gallon Green Organic Waste Cart per Service Recipient included in the Bundled Service rate. The actual 1759 configuration of Organic Waste Collection Container sizes to be provided will be based on the total equivalent 1760 volume and configured in a manner determined by the Service Recipient in consultation with Contractor. 1761 Contractor may charge for MFD Organic Waste Collection as set forth in Exhibit 1 for MFD Organic Waste 1762 Service greater than the base 32-gallon Organic Waste Cart. 1763 11.09.2 Size and Frequency of Service. This service will be provided as deemed necessary 1764 and determined between Contractor and the Service Recipient, but such service must be received no less 1765 than one (1) time per week with no exception for Holiday(s) as set forth herein, except that Collection Service 1766 scheduled to fall on a Holiday may be rescheduled as determined between the Service Recipient and 1767 Contractor as long as the minimum frequency requirement is met. Service may be provided by Bin or Cart 1768 at the option of the Service Recipient. The size of the Container and the frequency (above the minimum) of 1769 Collection will be determined between the Customer and Contractor. However, size and frequency must be 1770 sufficient to provide that no Organic Waste needs be placed outside the Collection Container. Service 1771 Recipients may own and provide their own Compactor provided that the Service Recipient is completely 1772 responsible for its proper maintenance, and such Compactor is of a type that is compatible with Contractor's

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1773 equipment. All other Collection Containers used by Service Recipients must be owned and supplied by 1774 Contractor.
1775 11.09.3 Organic Waste Processing Facility. Contractor must deliver all Collected Organic 1776 Waste to the Organic Waste Processing Facility listed in Exhibit 7 and agreed upon by the City. Failure to 1777 comply with this provision may result in assessment of Administrative Charges and Penalties as specified in 1778 Exhibit 4 and may result in Contractor being in default under this Agreement. 1779 11.09.4 Holiday Tree Collection. Contractor must Collect Holiday Trees set out at the curb 1780 for Collection during the three-week period beginning December 26th each year during the Term of this 1781 Agreement. Contractor must deliver the Collected Holiday Trees to the Organic Waste Processing Facility 1782 for Diversion through uses other than Alternative Daily Cover or Beneficial Use. This annual service will be 1783 provided at no additional charge to the Service Recipient and shall not be counted as one of the MFD Service 1784 Recipient’s free annual Bulky Waste Collections as set forth in Section 11.10. Contractor is not required to 1785 Divert Holiday Trees with tinsel, flocking or ornaments. 1786 11.09.5 Organic Waste - Improper Procedure. Contractor is not required to Collect Organic 1787 Waste if the Service Recipient does not segregate the Organic Waste from Solid Waste or Recyclable 1788 Materials. Furthermore, Contractor is not required to Collect Organic Wastes that are contaminated through 1789 commingling with Solid Waste or Recyclable Materials. Contractor will address contamination in accordance 1790 with Section 5.07.
1791 11.10 MFD Bulky Waste Collection Service. This service is governed by the following terms and 1792 conditions:
1793 11.10.1 Conditions of Service. Contractor must provide MFD Bulky Waste Collection 1794 Service, including the Collection of E-Waste and U-Waste, to all MFD Service Units in the Service Area 1795 whose Bulky Waste, E-Waste, and U-Waste have been placed within three (3) feet of the curb, swale, paved 1796 surface of the public roadway, closest accessible roadway, or other such location agreed to by Contractor 1797 and Service Recipient, that will provide safe and efficient accessibility to Contractor's Collection crew and 1798 vehicle. Upon property manager request, each MFD Service Unit is twice annually entitled to receive Bulky 1799 Waste Collection of up to the equivalent of (a) three (3) Large Items, (b) fifteen (15) 35-gallon bags with a 1800 maximum weight of 50 pounds per each bag, (c) four (4) 95-gallon bags with a maximum weight of 50 pounds 1801 per each bag, (d) five (5) E-Waste items, or (e) 1.8 cubic yards of uncontainerized Garbage or Organic 1802 Waste per Dwelling Unit for up to twenty (20) Dwelling Units at no additional cost and expense. For 1803 subsequent Collection in any Calendar Year, the Contractor shall receive compensation from the Customer 1804 at the rate for such service as set in Exhibit 1.
1805 11.10.2 Frequency of Service. Bulky Waste Collection Service will be provided on the next 1806 regular Collection day if the request is received at least ten (10) Workdays in advance of the next regular 1807 Collection day. The Service Recipient may not intentionally commingle residential Bulky Waste with other 1808 Residential Waste.

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1809 11.10.3 Bulky Waste Containing Freon. In the event Contractor Collects Bulky Waste that 1810 contain Freon, Contractor must handle such Bulky Waste in a manner such that the Bulky Waste is not 1811 subject to regulation as Hazardous Waste under applicable State and Federal laws or regulations. 1812 11.10.4 Maximum Reuse and Recycling. Contractor must Dispose of Bulky Waste Collected 1813 from Service Units pursuant to this Agreement in accordance with the following hierarchy:
1814 11.10.4.1 Reuse as is (where energy efficiency is not compromised). 1815 11.10.4.2 Disassemble for reuse or Recycling.
1816 11.10.4.3 Recycle.
1817 11.10.4.4 Disposal.
1818 11.10.5 Disposal of Bulky Waste. Contractor may not landfill such Bulky Waste unless the 1819 Bulky Waste cannot be reused or recycled.
1820
1821 Article 12. Commercial Service
1822 12.01 Commercial Conditions of Service. Except as set forth below, Contractor must provide 1823 Commercial Collection Services to all Commercial Service Units in the Service Area, including those City 1824 Service Units listed in Exhibit 2. MFD Units serviced with Bins will abide by the requirements listed in this 1825 Section unless they conflict with the requirements listed in Article 11, in which case Article 11 requirements 1826 supersede Article 12 requirements. This service is governed by the following terms and conditions:
1827 12.01.1 Provision of Service. Contractor must provide Commercial Garbage Collection 1828 Service, Commercial Recyclable Materials Service, and Commercial Organic Waste Collection Service to 1829 all Commercial Service Units Service Units in the Service Area whose Solid Waste, Recyclable Materials, 1830 and Organic Waste are properly containerized in Collection Containers as appropriate where the Collection 1831 Containers are accessible as set forth in Section 12.01.4. Contractor must offer Garbage, Recyclable 1832 Materials, and Organic Waste Carts in 32-, 64-, and 96-gallon sizes. Contractor must offer Garbage and 1833 Recyclable Materials Bins in 1-, 2-, 3-, 4-, and 6-cubic-yard sizes and must offer Organic Waste Bins in 1-, 1834 2-, and 3-cubic-yard sizes. Contractor may offer Roll-off Containers in 10-, 20-, 30-, and 40-cubic-yard sizes. 1835 Contractor must also either provide Collection Service from Compactors that are owned by Commercial 1836 Service Units or provide Compactors for Commercial Service Units to use for Collection Service, for the 1837 Maximum Service Rates set forth in Exhibit 1. The size of the Container and the frequency (above the 1838 minimum) of Collection will be determined between the Service Recipient and Contractor. However, the size 1839 and frequency must be sufficient to provide that no Garbage, Recyclable Materials, or Organic Waste need 1840 be placed outside the Collection Container. The base Commercial Collection Service will include Commercial 1841 Recyclable Materials Service as described in Section 12.05 below, and Commercial Organic Waste 1842 Collection Service as described in Section 12.06 below.

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1843 12.01.2 Bundled Service. For the Commercial Solid Waste Collection Service system, 1844 Contractor shall provide Garbage Bins as requested by the Commercial Service Recipient and include at no 1845 additional cost one (1) 65-Gallon Blue Recyclable Materials Cart and one (1) 65-Gallon Green Organic 1846 Waste Cart service as part of the base bundled Commercial Collection Service. Additional services may be 1847 requested by the Commercial Service Recipient. To be exempted from Commercial Recyclable Materials 1848 Service or Commercial Organic Waste Collection Service, Service Recipient must apply for exemption to 1849 the Contractor. All such exemption applications must be reported and approved by the City. 1850 12.01.3 Hours of Collection. Commercial Collection Service must be provided commencing 1851 no earlier than 4:00 a.m., and terminating no later than 7:00 p.m., Monday through Saturday, except for 1852 Holidays. If the Commercial Collection Service is adjacent to Residential Premises, and City receives 1853 complaints about noise from adjacent residents, City and Contractor will confer, gather any necessary 1854 information about the situation, and work together to attempt to find a solution. Contractor will proactively 1855 work in good faith to address noise complaints related to specific locations. The hours, day, or both of 1856 Collection may be extended due to extraordinary circumstances or conditions with the prior verbal or written 1857 consent of the Agreement Administrator.
1858 12.01.4 Accessibility. Contractor must Collect all Collection Containers that are readily 1859 accessible to Contractor's crew and vehicles and not blocked. However, Contractor must provide “push 1860 services” and “stinger/scout truck services” as necessary upon request during the provision of Commercial 1861 Collection Services for the Maximum Service Rate set forth in Exhibit 1. Push services include, but are not 1862 limited to, dismounting from the Collection Vehicle, moving the Collection Containers from their storage 1863 location for Collection, and returning the Collection Containers back to their storage location, relocking the 1864 storage enclosure if a lock is included. Stinger/scout truck services provide for the retrieval of Collection 1865 Containers from locations with accessibility constraints that make Containers difficult or impossible to access 1866 using regular trash Collection trucks.
1867 12.01.5 Manner of Collection. Contractor must provide Commercial Collection Service with 1868 as little disturbance as possible and must leave any Collection Container in an upright position, with the lid 1869 closed, at the same point it originally located, without obstructing alleys, roadways, driveways, sidewalks, or 1870 mailboxes.
1871 12.01.6 Purchase and Distribution of Collection Containers for New Commercial Service 1872 Units. Contractor must also distribute newly painted Collection Containers as specified in Exhibit 3 to new 1873 Commercial and MFD Service Units that are added to Contractor’s Service Area during the Term of this 1874 Agreement. The size and mix of the Collection Containers will be in accordance with the service agreement 1875 obtained by Contractor as set forth in this Agreement and the distribution must be completed within five (5) 1876 Workdays of receipt of the request for service.
1877 12.01.7 Replacement of Collection Containers. Contractor’s employees must avoid damage 1878 to Collection Containers by unnecessary rough treatment. Any Collection Container damaged by the 1879 Contractor must be replaced by Contractor, at Contractor's expense, within five (5) Workdays at no cost or 1880 inconvenience to the Service Recipient.

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1881 12.01.7.1 Each Commercial Service Unit is entitled to the replacement of 1882 one (1) lost, destroyed, or stolen Garbage, Recyclable Materials, and Organic Collection Container every 1883 ten (10) years during the life of this Agreement at no cost to the Service Unit. Accordingly, Contractor will 1884 be compensated for the cost of those replacements in excess of one (1) Garbage, Recyclable Materials, 1885 and Organic Collection Container per Commercial Service Unit during the aforementioned 10-year period 1886 within the Term of the Agreement, in accordance with the “Collection Container Exchange” Maximum 1887 Service Rate, as appropriate, set forth in Exhibit 1. Contractor must deliver a replacement Collection 1888 Container to such Service Unit within five (5) Workdays. 1889 12.01.8 Repair of Collection Containers. Contractor is responsible for repair of Collection 1890 Containers. Within five (5) Workdays of notification by City or a Service Recipient of the need for such 1891 repairs, Contractor must repair the Collection Container or, if necessary, remove the Collection Container 1892 for repairs and deliver a replacement Collection Container to the Service Recipient. Collection Container 1893 repair also includes the removal of graffiti from the Collection Container. 1894 12.01.9 Collection Container Exchange. Upon notification to Contractor by City or a Service 1895 Recipient that a change in their Collection Containers is required, for reasons beyond those outlined in 1896 Section 12, Contractor must deliver such Collection Containers to such Service Recipient within five (5) 1897 Workdays. Each Commercial Service Unit is eligible to receive one (1) free Collection Container exchange 1898 per Calendar Year during the Term of this Agreement. Contractor is allowed to charge the Service Unit for 1899 the cost of those exchanges in excess of one (1) Collection Container exchange per Calendar Year, in 1900 accordance with the appropriate “Collection Container Exchange” service rate set forth in Exhibit 1 as may 1901 be adjusted by City under this Agreement. Additional Collection Containers or different size Collection 1902 Containers are subject to the applicable Maximum Service Rate set forth in Exhibit 1. 1903 12.02 Ownership of Collection Containers. Ownership of Collection Containers distributed by 1904 Contractor is vested in Contractor.
1905 12.03 Cleanliness of Collection Containers. Once every five (5) years, starting at the date of 1906 signature of this agreement, each Commercial Service Recipient is entitled to request the exchange of up to 1907 three (3) Collection Containers, one each of dirty Garbage, Recyclable Materials, and Organic Waste 1908 Containers, for clean Garbage Recyclable Materials, or Organic Waste Containers. Upon receiving such a 1909 request from a Commercial Service Recipient within the allowed timeframe, Contractor must replace the dirty 1910 Collection Containers with clean Collection Containers. Any Collection Container cleanings done at 1911 Contractor facility must be done in such a manner that results in no water entering the City’s storm drain 1912 system. This service must be provided at no charge to the Service Unit, so long as the service is not requested 1913 more than once every five years. In addition, regardless of whether this exchange is requested by the Service 1914 Unit, Contractor will ensure that all Collection Containers are exchanged on an as-needed basis so as to 1915 maintain a clean appearance and proper function. Additional exchanges beyond once every five years will be 1916 subject to the Maximum Service Rate set forth in Exhibit 1. 1917 12.04 Commercial Garbage Collection Service.

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1918 12.04.1 Conditions of Service. Contractor must provide Commercial Garbage Collection 1919 Service to all Commercial Service Units in the Service Area whose Garbage is properly containerized in 1920 Garbage Collection Containers, where the Garbage Collection Containers are accessible. 1921 12.04.2 Size and Frequency of Service. This service must be provided as deemed 1922 necessary and determined between Contractor and the Commercial Service Unit, but such service must be 1923 received no less than one (1) time per week with no exception for Holiday(s) as set forth herein, except that 1924 Collection service scheduled to fall on a Holiday may be rescheduled as determined between the Service 1925 Unit and Contractor as long as the minimum frequency requirement is met. The size of the Container and 1926 the frequency (above the minimum) of Collection will be determined between the Commercial Service Unit 1927 and Contractor. However, size and frequency must be sufficient to provide that no Solid Waste need be 1928 placed outside the Collection Container. Contractor must provide Containers as part of the Commercial 1929 Collection Maximum Service Rates set forth in Exhibit 1. Service Recipients may own and provide their own 1930 Compactor provided that the Service Recipient is completely responsible for its proper maintenance, and 1931 that such Compactor is of a type that is compatible with Contractor's equipment. All other Collection 1932 Containers used by Service Recipients must be owned and supplied by Contractor. 1933 12.04.3 Non-Collection. Contractor is required to Collect any Commercial Solid Waste that 1934 is not placed in a Garbage Collection Container if such Commercial Solid Waste is outside the Garbage 1935 Collection Container because of overflow. In the event of non-collection, Contractor must provide the 1936 following written notice via email, U.S. mail, or in person (which may be by Non-Collection Notice) to the 1937 Service Recipient: the date of the Solid Waste Non-Collection and the reason for Non-Collection. 1938 Contractor’s Non-Collection Notice for Commercial Service Recipients shall also contain instructions on how 1939 to request an additional Collection Container, if relevant. If Non-Collection occurs for some unforeseeable 1940 circumstance not listed in this Agreement that the Contractor encounters and is impeded by, Contractor shall 1941 provide the same written notice as described in this Section. 1942 12.04.4 Disposal Facility. All Solid Waste Collected as a result of performing Commercial 1943 Solid Waste Collection must be transported to, and Disposed of at, the Disposal Facility. Failure to comply 1944 with this provision may result in assessment of Administrative Charges and Penalties as specified in Exhibit 1945 4 and may result in Contractor being in default under this Agreement. 1946 12.05 Commercial Recyclable Materials Service. This service is governed by the following terms 1947 and conditions:
1948 12.05.1 Conditions of Service. Contractor must provide Commercial Recyclable Materials 1949 Service to all Commercial Service Units in the Service Area whose Recyclable Materials are properly 1950 containerized in Recyclable Materials Collection Containers, except as set forth below, where the Recyclable 1951 Materials Collection Containers are accessible. The Maximum Service Rates for Contractor’s Commercial 1952 Recyclable Materials Services are set forth in Exhibit 1. 1953 12.05.2 Base Commercial Recyclable Materials Service. All Commercial Service Recipients 1954 subscribing to Commercial Solid Waste Collection Service must receive weekly Collection of Recyclable 1955 Materials with a minimum of at least one 65-gallon Blue Recyclable Materials Cart per Service Recipient at

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1956 no additional cost as part of the base service and included in the Bundled Rate set forth in Exhibit 1. The 1957 actual configuration of Recyclable Materials Collection Container sizes to be provided will be based on the 1958 total equivalent volume and configured in a manner determined by the Service Recipient in consultation with 1959 Contractor.
1960 12.05.3 Size and Frequency of Service. This service will be provided as deemed necessary 1961 and determined between Contractor and the Service Recipient, but such service must be received no less 1962 than one (1) time per week with no exception for Holiday(s) as set forth herein, except that Collection service 1963 scheduled to fall on a Holiday may be rescheduled as determined between the Service Recipient and 1964 Contractor as long as the minimum frequency requirement is met. Service may be provided by Collection 1965 Container at the option of the Service Recipient. The size of the Collection Container and the frequency 1966 (above the minimum) of Collection will be determined between the Service Recipient and Contractor. 1967 However, size and frequency must be sufficient to provide that no Recyclable Materials need be placed 1968 outside the Collection Container. Contractor may charge for Commercial Recyclable Materials Services 1969 above the weekly trash volume equivalent and must provide Recyclable Materials Collection Containers as 1970 a part of the Bundled Service with rates set forth in Exhibit 1. Service Recipients may own and provide their 1971 own Compactor provided that the Service Recipient is completely responsible for its proper maintenance, 1972 and that such Compactor is of a type that is compatible with Contractor's equipment. All other Collection 1973 Containers used by Service Recipients must be owned and supplied by Contractor. 1974 12.05.4 Recyclable Materials - Improper Procedure. Contractor is not required to Collect 1975 Recyclable Materials if the Service Recipient does not segregate the Recyclable Materials from Commercial 1976 Solid Waste and Organic Waste. Furthermore, Contractor is not required to Collect Recyclable Materials 1977 that are contaminated through commingling with Solid Waste or Organic Waste. To address contamination, 1978 Contractor must follow the steps as set forth in Section 5.07. 1979 12.05.5 Materials Recovery Facility. All Recyclable Materials Collected as a result of 1980 performing Recyclable Materials Services must be delivered to the Materials Recovery Facility listed in 1981 Exhibit 7. Failure to comply with this provision may result in assessment of Administrative Charges and 1982 Penalties as specified in Exhibit 4 and may result in Contractor being in default under this Agreement. 1983 12.05.6 Recyclable Materials - Changes to Work. Should changes in law arise that 1984 necessitate any additions or deletions to the work described herein including the type of items included as 1985 Recyclable Materials, the parties will negotiate any necessary cost changes and will enter into an Agreement 1986 amendment covering such modifications to the work to be performed and the compensation to be paid in 1987 accordance with Section 30.02 before undertaking any changes or revisions to such work. 1988 12.05.7 Additional Recyclable Materials Collection Containers. Contractor must provide 1989 additional Recyclable Materials Collection Containers to Commercial Service Recipients above the minimum 1990 requirements within five (5) days of request and may charge for such additional capacity set forth in Exhibit 1991 1 provided that additional Collection Containers are used by Service Recipients for the purposes of setting 1992 out additional Recyclable Materials for regular weekly Commercial Recyclable Materials Service.

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1993 12.06 Commercial Organic Waste Collection Service. This service is governed by the following 1994 terms and conditions:
1995 12.06.1 Conditions of Service. Contractor must provide Commercial Organic Waste 1996 Collection Service to all Commercial Service Units in the Service Area whose Organic Waste is properly 1997 containerized in Organic Collection Containers, where the Organic Waste Collection Containers are 1998 accessible. Contractor will conduct a site visit with each non-exempt Service Recipient to determine the 1999 specific materials to be included in the Service Recipient’s Organic Waste Collection (i.e., Food Waste, 2000 Green Waste, combined Food and Green Waste). Contractor will charge for Collection of Organic Waste 2001 within the Bundled Service rate specified in Exhibit 1. For Organic Waste Collected in Collection Containers 2002 beyond the size specified in the Bundled Service rate, Contractor will charge at the rate set forth in Exhibit 2003 1. Contractor agrees that not all Service Units will elect to receive Organic Waste Collection Service in Carts, 2004 and that Contractor will provide Organic Waste Collection Bins upon request and as necessary. Service 2005 Recipients may elect to add Green Waste only Collection Bins to their service at pricing included in Exhibit 2006 1. Contractor will provide enough Collection Containers and at a Collection frequency to allow for any such 2007 Service Unit to utilize the Collection of Organic Waste. Commercial Organic Waste Collection will occur 2008 Monday through Saturday upon request and as necessary. City shall provide Contractor a list of the names 2009 and addresses of Commercial Service Units that are approved by City for exemption from Organic Waste 2010 Collection.
2011 12.06.2 Organic Waste Processing Facility. Contractor must deliver all Collected Organic 2012 Waste to the Organic Waste Processing Facility listed in Exhibit 7. Failure to comply with this provision may 2013 result in assessment of Administrative Charges and Penalties as specified in Exhibit 4 and may result in 2014 Contractor being in default under this Agreement.
2015 12.06.3 Organic Waste Collection Frequency. Contractor must comply with CalRecycle 2016 Collection frequency requirements as they may apply during the Term of this Agreement. If any such 2017 changes to Collection frequency are adopted after Commencement Date that result in Contractor being 2018 allowed to reduce the frequency of Garbage or Organic Waste Collection, or otherwise cause Contractor to 2019 reduce its Collection costs as a result in a change in Garbage or Organic Waste Collection frequency, 2020 Contractor must provide City with its estimate of its reduced costs and shall make adjustments to the 2021 Maximum Service Rates.
2022 12.06.4 Base Commercial Organic Waste Service. All Commercial Service Recipients 2023 subscribing to Commercial Garbage Collection Service must receive weekly Collection of the equivalent 2024 volume of at least one (1) 32-gallon Green Organic Waste Cart per Service Recipient at no additional cost 2025 as part of the base service included in the Bundled Service rate. The actual configuration of Organic Waste 2026 Collection Container sizes to be provided will be based on the total equivalent volume and configured in a 2027 manner determined by the Service Recipient in consultation with Contractor. Contractor may charge for 2028 Commercial Organic Waste Collection as set forth in Exhibit 1 for Commercial Organic Waste Service 2029 greater than the base 32-gallon Organic Waste Cart. 2030 12.06.5 Size and Frequency of Service. This service will be provided as deemed necessary 2031 and determined between Contractor and the Service Recipient, but such service must be received no less

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2032 than one (1) time per week with no exception for Holiday(s) as set forth herein, except that Collection service 2033 scheduled to fall on a Holiday may be rescheduled as determined between the Service Recipient and 2034 Contractor as long as the minimum frequency requirement is met. Service may be provided by Bin or Cart 2035 at the option of the Service Recipient. The size of the Container and the frequency (above the minimum) of 2036 Collection will be determined between the Customer and Contractor. However, size and frequency must be 2037 sufficient to provide that no Organic Waste needs be placed outside the Collection Container. Service 2038 Recipients may own and provide their own Compactor provided that the Service Recipient is completely 2039 responsible for its proper maintenance, and that such Compactor is of a type that is compatible with 2040 Contractor's equipment. All other Collection Containers used by Service Recipients must be owned and 2041 supplied by Contractor.
2042 12.06.6 Organic Waste - Improper Procedure. Contractor is not required to Collect Organic 2043 Waste if the Service Recipient does not separate the Organic Waste from Solid Waste and Recyclable 2044 Materials. Furthermore, Contractor is not required to Collect Organic Waste that is contaminated through 2045 commingling with Solid Waste or Recyclable Materials. To address contamination, Contractor must follow 2046 the steps set forth in Section 5.07.
2047 12.06.7 Organic Waste - Changes to Services. Should changes in law arise that necessitate 2048 any additions or deletions to the services described in this Section, including the type of items included as 2049 Organic Waste, the parties will negotiate any necessary cost changes and will enter into an Agreement 2050 amendment covering such modifications to the services to be performed and the compensation to be paid 2051 in accordance with Section 30.02 before undertaking any changes or revisions to such services. 2052 12.06.8 Additional Organic Waste Collection Containers. Contractor must provide additional 2053 Organic Waste Collection Containers to Service Recipients at the rates listed in Exhibit 1 provided that 2054 additional Collection Containers are used by Service Recipients for the proposes of setting out additional 2055 Organic Waste materials for regular weekly Organic Waste Collection Service. 2056 Article 13. Industrial Service
2057 13.01 Contractor shall provide temporary Bin and Roll-Off Container service, including 2058 Construction and Demolition Debris Bins, to Service Recipients. Contractor must offer temporary Roll-Off 2059 Containers in 10-, 20-, 30-, and 40-cubic-yard sizes. Contractor shall deliver such Bin or Roll-Off Container 2060 within one (1) Business Day of request. The size of the Container and the frequency of Collection will be 2061 determined between the Service Recipient and Contractor. The Contractor shall receive compensation for 2062 Temporary Bin and Roll-Off Container Service from the Customer at the rate for such service as set in Exhibit 2063 1. Contractor shall also offer discounts on temporary Roll-Off Container Service Rates for homeowner’s 2064 associations when requested, for a discount of up to 25% of the standard Service Rates for the requested 2065 service, provided that the request originates from the homeowner's association management, and provided 2066 that the Roll-Off Container(s) will be used for a community-based clean-up project. 2067 13.02 Contractor shall provide monthly Roll-Off Container service, including Construction and 2068 Demolition Debris Bins, to Service Recipients. Contractor may offer monthly Roll-Off Containers in 10-, 20-, 2069 30-, and 40-cubic-yard sizes. Contractor shall deliver such Roll-Off Container within one Business Day of

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2070 request. Contractor must also either provide Collection Service from Compactors that are owned by 2071 Commercial Service Units or provide Compactors for Commercial Service Units to use for Collection Service, 2072 for the Maximum Service Rates set forth in Exhibit 1. The size of the Container and the frequency of Collection 2073 will be determined between the Service Recipient and Contractor. The Contractor shall receive compensation 2074 for monthly Roll-Off Container Service from the Customer at the rate for such service as set in Exhibit 1. 2075 13.03 Hours of Collection. Industrial Collection Service must be provided commencing no earlier 2076 than 4:00 a.m., and terminating no later than 7:00 p.m., Monday through Saturday, except for Holidays. If the 2077 Commercial Collection Service is adjacent to Residential Premises, then Collection service will be provided 2078 no earlier than 7:00 a.m. Monday through Friday and 8:00 a.m. on Saturday. The hours, day, or both of 2079 Collection may be extended due to extraordinary circumstances or conditions with the prior verbal or written 2080 consent of the Agreement Administrator.
2081 Article 14. City Services
2082 14.01 City Collection Services.
2083 14.01.1 Contractor shall provide Garbage, Recyclable Materials, and Organic Waste 2084 Collection Services to all City Service Units set forth in Exhibit 2, or as City may designate in the future (and 2085 where applicable, subject to the conditions in this Section), where the Containers are not blocked and are 2086 accessible by Contractor’s Collection Vehicles. City may update Exhibit 2 annually. 2087 14.01.2 Bulky Waste Collection Service. Contractor shall Collect Bulky Waste, including E2088 Waste and U-Waste, from City Services Units as listed on Exhibit 2 on an on-call basis on the same terms 2089 and conditions as are provided to SFD Service Units per Section 10.10. Contractor shall provide up to twelve 2090 (12) 40-yard debris boxes annually for community clean-ups. 2091 14.01.3 Public Garbage Cans and City Transit Shelters. Contractor shall provide Garbage 2092 Collection services to public trash cans and City-owned bus stops not less than three (3) days per week. 2093 Collection service shall include power-washing public trash cans and maintaining cleanliness in and around 2094 the trash cans on an annual basis. City public trash cans and Transit Shelter Garbage Collection Service 2095 Areas are specified in Exhibit 2.
2096 14.01.4 Development Review. Contractor, upon City’s request, shall assist the City in the 2097 review of applicants’ plans for projects covered by Public Resources Code § 42911, including commercial 2098 and multi-family projects, to provide for effective and economical accumulation and Collection of Solid 2099 Waste.
2100 14.01.5 Abandoned Waste Removal. Upon request from the Agreement Administrator or 2101 other authorized City staff, Contractor shall provide abandoned waste removal services within twenty-four 2102 (24) hours. Contractor shall be responsible for loading or arranging for loading of abandoned waste. 2103 Contractor shall Collect, transport, and deliver abandoned waste to the Disposal Facility, the Materials 2104 Recovery Facility, or Organic Waste Processing Facility as appropriate given the characteristics of the 2105 abandoned waste. Contractor shall Collect, transport, and process the abandoned waste from up to fifty (50)

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2106 abandoned waste incidents identified by the City each Agreement Year at no charge to the City. Contractor 2107 shall do all of the following:
2108 (a) Contractor will Collect Abandoned Waste discarded along roads at locations identified 2109 by the City (which may include reports of locations by members of the public to the City 2110 or to Contractor from City staff).
2111 (b) Contractor shall respond to requests from the City to Collect abandoned waste on City 2112 Premises.
2113 (c) Contractor shall proactively Collect any and all Abandoned Waste from designated Hot 2114 Spots identified by the City, on a schedule set by the City. 2115 (d) Contractor shall proactively Collect any and all unreported Abandoned Waste that is 2116 discovered during the course of regular Collection Service. 2117 (e) Contractor shall cooperate with City in any investigation and prosecution of illegal 2118 dumping and collect abandoned waste from cleared homeless encampments. 2119 (f) Contractor shall clean up all abandoned waste and debris within a 10-foot radius of 2120 each Abandoned Waste Collection site.
2121 (g) Each Abandoned Waste Collection incident shall equate to no more than four (4) cubic 2122 yards of debris. Any additional volume above four (4) cubic yards of debris shall be 2123 considered a second incident.
2124 If Contractor is directed by City to Collect abandoned waste more than fifty (50) times in a year as described 2125 above, Contractor shall be entitled to charge the City for Collected materials exceeding fifty(50) Collections 2126 per Agreement Year in accordance with the Service Recipient Rates as set forth in Exhibit 1. 2127 14.01.6 Contractor shall publicize, to the satisfaction of City, two options for members of the 2128 public to use to report abandoned waste and illegal dumping. The first option, which is preferred by the City, 2129 is for the public to use the City’s free smartphone application, Pinole Connect. This option should always be 2130 listed first in publicity materials. The second option is the Contra Costa Clean Water Program toll free number 2131 1-800-NO DUMPING.
2132 14.01.7 City-Sponsored Events. Upon request by the City, Contractor shall provide 2133 Garbage, Recyclable Materials, and Organic Waste Containers and Collection Services at up to twelve (12) 2134 City-Sponsored Events annually at no cost to the City. Containers shall be delivered and picked up on the 2135 same day as each event, to prevent unauthorized use of the Containers. 2136 14.01.8 City Dumpster Service. Upon request from City, and at no additional cost to City, 2137 Contractor shall provide Roll-Off Containers for large-scale City clean-ups, provided that City provides one 2138 week of advance notice to Contractor. Examples of large-scale City clean-ups may include creek desilting 2139 events, encampment clean-ups, City Facility move-out days, fire prevention clean-up events, tenant 2140 improvements at City Facilities, and other miscellaneous activities on City or public property that involve 2141 large quantities of debris. Contractor shall provide up to four (4) 40-yard Roll-Off Containers, or three (3) 40- 2142 yard Roll-Off Containers plus one 10-cubic-yard low-wall wet dumpster, per event, for up to eight (8) events

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2143 per year. Containers shall be delivered and picked up on the same day as each clean-up, to prevent 2144 unauthorized use of the Containers.
2145 14.02 City Collection Conditions of Service. City Collection Services shall be governed by the 2146 following terms and conditions:
2147 14.02.1 Contractor’s Good Will. In exchange for the good will of the City and the general 2148 public, Contractor voluntarily agrees to provide Solid Waste Collection under this Article at no cost to the 2149 City excepting excess service as provided in this Article and warrants that such service shall neither impact 2150 the Maximum Service Rates nor be otherwise paid for or subsidized by any other Service Recipients. 2151 14.02.2 Contractor shall receive written permission from the City before placing any 2152 Collection Containers on City-owned property for service, except that no such permission shall be needed 2153 to place Collection Containers at locations specified for such Containers in Exhibit 2. 2154 14.02.3 Contractor shall limit the number of trips and the path of travel for Collection 2155 Vehicles in City parking lots.
2156 14.02.4 Container Service. City Facilities shall be provided Solid Waste Collection generally 2157 subject to the same terms and conditions as similar Service Units regarding Container specifications, repair, 2158 replacement, cleanings, and exchange; provided the City shall not be charged for any requests for such 2159 services.
2160 14.02.5 Frequency of Service. The frequency of Collection may be designated by the City, 2161 but not to exceed six (6) times per week per Container. City may change the City Service Units receiving 2162 service, and the Container volume and Collection frequency provided to any City Service Unit, by written 2163 notice to Contractor.
2164 14.02.6 Keys to City Facilities. City may issue Contractor sets of keys to facilitate access to 2165 City Service Unit sites. Contractor shall be responsible for the safekeeping of these keys, and shall pay for 2166 the replacement cost of keys if replacements are needed. 2167 14.03 Disposal Services. The City shall have the privilege of depositing non-hazardous solid 2168 wastes, including sludge, that require no special handling produced by regular municipal operations and 2169 collected by municipal employees on municipally owned property at the Golden Bear Transfer Station at no 2170 cost to the City.
2171 14.04 HHW Drop-Off Reimbursement Program for City Service Units. If City Service Unit delivery 2172 of HHW to the West Contra Costa County Household Hazardous Waste Facility is no longer free to the City, 2173 and subject to the terms and conditions of Section 30.01, Contractor shall provide reimbursement to City for 2174 any costs accrued by City Service Unit delivering HHW to the West Contra Costa County Household 2175 Hazardous Waste Facility. City shall provide reimbursement requests with back-up documentation quarterly, 2176 and Contractor shall provide reimbursement quarterly, to be determined via meet and confer per Section 2177 6.06.3. The agreed upon payment amount shall increase annually by the CPI Adjustment Calculation in 2178 Section 6.03.1.