Pismo Beach City Council
May 3, 2022

RESOLUTION NO. R-2022-035

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,

CALIFORNIA APPROVING, AND AUTHORIZING THE CITY MANAGER TO

EXECUTE, A SECOND AMENDMENT TO THE AMENDED AND RESTATED SOLID

WASTE COLLECTION FRANCHISE AGREEMENT WITH SOUTH COUNTY
SANITARY SERVICE, INC. FOR SOLID WASTE COLLECTION SERVICES WHEREAS, the City of Pismo Beach has a franchise agreement with South County Sanitary Service, Inc., (SCSS) for solid waste collection services, effective as of July 1, 2008 and expiring on June 30, 2023; and
WHEREAS, the agreement provides, among other things, that SCSS will provide solid waste, recyclable materials, and green waste collection and disposal services for the City; and
WHEREAS, this agreement has been periodically amended and restated, and further amendment is now warranted to reflect requirements set forth in Senate Bill (SB) 1383; and
WHEREAS, SB 1383 sets goals to reduce disposal of organic waste in landfills, including edible food in order to reduce greenhouse gas emissions and address food insecurity in California; and
WHEREAS, the law has many aspects to it which is resulting in a rate increase in an attempt to recover some of those costs associated with compliance with SB 1383.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby approves, and authorizes the City Manager to execute, the Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement (Exhibit A).

UPON MOTION OF Council Member Blake, seconded by Council Member Guthrie, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 3rd day of May 2022, by the following vote:

AYES: 5 Blake, Guthrie, Newton, Reiss, Waage
NOES: 0
ABSENT: 0
ABSTAIN: 0
RECUSED: 0
Appr yed: Attest: F Ed Waage, Mayo ica Ind 6ii d, City Clerk PAGE 1 OF 18
R-2022-035

81.dOZ3DVd
9£0-ZZOZ-b

SECOND AMENDMENT
TO

AMENDED AND RESTATED

SOLID WASTE COLLECTION FRANCHISE AGREEMENT

BETWEEN

CITY OF PISMO BEACH
AND
SOUTH COUNTY SANITARY SERVICE INC.

APRIL 2022 FINAL DRAFT
Gty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement

SECOND AMENDMENT TO

AMENDED AND RESTATED

SOUD WASTE COLLECTION

FRANCHISE AGREEMENT

THIS SECOND AMENDMENT TO AMENDED AND RESTATED SOLID WASTE COLLECTION FRANCHISE AGREEMENT (this "Amendment") is made and entered into this day of , 2022 in the State of California, and shall modify that certain Amended and Restated Solid Waste Collection Franchise Agreement, dated June 3, 2008 as previously amended by a first amendment dated August 3, 2016 (the "Agreement"), by and between the CITY OF PISMO BEACH, a general law city in the State of California ("City") and SOUTH COUNTY SANITARY SERVICE, INC., a California corporation ("Contractor"). City and Contractor may be collectively referred to herein as the "Parties" and individually as a "Party", unless specifically identified otherwise.

This Amendment 1f2 is made and entered into on the basis of the following facts, understandings, and intentions of the parties:

WHEREAS: The Parties entered into the Agreement on (Insert Effective); and, WHEREAS: The Agreement provides City with the right to direct Contractor to modify the scope of one or more types of service described in the Agreement, or to otherwise modify its performance under the Agreement, subject to providing additional compensation; and, WHEREAS: SB 1383 establishes regulatory requirements for jurisdictions, Generators, haulers, Solid Waste facilities, and other entities to support achievement of State-wide Organic Waste Disposal reduction targets; and,
WHEREAS: SB 1383 requires the City to implement Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements; and, the City has chosen to delegate some of its responsibilities to the Contractor, acting as the City's designee, through this Agreement; and,
WHEREAS: Both Parties have, in good faith, negotiated changes to the Agreement necessary to support the City's compliance with SB 1383, as set forth herein.

April 2022 FINAL DRAFT

86JOC3JVd
9£0-ZZOZ-21
Oty of Pismo Beach / South County Sanitary Service, Inc.

Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement

AGREEMENT

NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND

SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, THE PARTIES AGREE TO AMEND THE AGREEMENT, AS FOLLOWS:

Article 1. Definitions
A. Article 1 of the Agreement is hereby amended to include the following:
"AB 1826" means the Organic Waste Recycling Act of 2014 (Chapter 727, Statutes of 2014 modifying Division 30 of the California Public Resources Code), also commonly referred to as "AB 1826," as amended, supplemented, superseded, and replaced from time to time. "AB 341" means the California Jobs and Recycling Act of 2011 (Chapter 476, Statues of 2011 [Chesbro, AB 341]), also commonly referred to as "AB 341", as amended, supplemented, superseded, and replaced from time to time.
"AB 901" means Assembly Bill approved by the Governor of the State of California on October 10, 2015, which amended Section 41821.5 of, amended, renumbered and added Section 41821.6 of, and added Sections 41821.7 and 41821.8 to, the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time. "Applicable Law" means all Federal, State, County, and local laws, regulations, rules, orders, Judgments, degrees, permits, approvals, or other requirement of any governmental agency having City over the Collection, Transportation, and Processing of Recyclable Materials, Organic Materials, and Solid Waste that are in force on the Effective Date and as may be enacted, Issued or amended during the Term of this Agreement. Applicable Law includes, but is in no way limited to, AB 939, AB 341, AB 1826, and SB 1383. "Approved Disposal Facility" means the Cold Canyon Landfill as the primary, and Chicago Grade Landfill, or the Santa Maria Landfill, as alternatives, which have been selected by the Contractor and approved by the City. Contractor shall notify City before using an alternative facility. "Approved Fadlity(ies)" means any one of or any combination of the following: Approved Recyclable Materials Processing Facility; Approved Organic Materials Processing Facility; and/or Approved Disposal Facility.
"Approved Organic Materials Processing Facility" means the Hitachi 2osen inova (HZI) Kompogas Facility located at 4300 Old Santa Fe Rd, San Luis Obispo, CA 93401, and Engel & Gray Inc. Regional Compost Facility, located at 745 West Betteravia Road, Santa Maria, California which have been selected by the Contractor and approved by the City.
"Approved Processing Facility(tes)" means any one of or any combination of the: Approved Recyclable Materials Processing Facility; or Approved Organic Materials Processing Facility. "Approved Recyclable Materials Processing Facility" means the Materials Recovery Facility at Cold Canyon Processing Facility, which has been selected by the Contractor and approved by the City. "Bin" means a Container with capacity of approximately one (1) to eight (8) cubic yards, with a hinged lid, and with wheels (where appropriate), that is serviced by a front end -loading and/or rear end -loading Collection vehicle, including Bins with Compactors attached to increase the capacity of the Bin. "Business Days" mean days during which the City offices are open to do business with the public. "California Code of Regulations" or "(CCR)" means the State of California Code of Regulations. CCR April 2022 FINAL DRAFT Page 4
City of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement references in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g., "14 CCR" refers to Title 14 of CCR).
"CalRecycle" means Caiifomia's Department of Resources Recycling and Recovery. "Cart" means a plastic Container with a hinged lid and wheels that is serviced by an automated or semi - automated Collection vehicle. A Cart has capacity of 20, 35, 64 or 96 gallons (or similar volumes). "City" means the City of Pismo Beach, a general law city in the State of California, and all the territory lying within the municipal boundaries of the City as presently existing or as such boundaries may be modified during the term, acting through the City Council or the City Manager. The City may designate responsibilities to one or more third parties, in writing, between the City Manager and the designee. "City Manager" means the City staff member or their designee responsible for contract management and maintenance.
"Collect" or "Collection" (or any variation thereof) means to take physical possession, transport, and remove Discarded Materials at the place of generation in the City. "Commercial" shall mean of, from, or pertaining to non -Residential Premises where business activity is conducted, including, but not limited to, retail sales, services, wholesale operations, manufacturing, and industrial operations, but excluding businesses conducted upon Residential property which are permitted under applicable zoning regulations and are not the primary use of the property. "Compactor" means a mechanical apparatus that compresses materials together with the Container that holds the compressed materials or the Container that holds the compressed materials if it is detached from the mechanical compaction apparatus. Compactors include two (2) to eight (8) cubic yard Bin Compactors serviced by front-end loader Collection vehicles and ten (10) to fifty (50) cubic yard Drop Box Compactors serviced by roll -off Collection vehicles.
"Complaint" shall mean each written or orally communicated statement made by any Person, whether to City or Contractor, alleging: (1) non-performance, or deficiencies in Contractor's performance, of its duties under this Agreement; (2) a violation by Contractor of this Agreement; or (3) an SB 1383 Non -Compliance Complaint as required under 14 CCR Section 18995.3.
"Compostable Plastics" or "Compostable Plastic" means plastic materials that meet the ASTM D6400 standard for Compostability.
"Compost" (or any variation thereof) includes a controlled biological decomposition of Organic Materials yielding a safe and nuisance free Compost product.
"Container" means any Cart, Bin, Compactor, or franchise Roll -Off used for Collection and storing Discarded Materials.
"Contractor' means SOUTH COUNTY SANITARY SERVICE, INC organized and operating under the laws of the State and its officers, directors, employees, agents, companies, related -parties, affiliates, subsidiaries, and Subcontractors.
"County" means the County of San Luis Obispo, a political subdivision of the State of California. "Customer" means the Person whom Contractor submits its billing invoice to and collects payment from for Collection services provided to a Premises. The Customer may be either the Occupant or Owner of the Premises.
"Customer Notice" means the Contractor's notice to Customer(s) as described in Section 5.14.2.

April 2022 FINAL DRAFT Page 5

86 JO V 3SVd
9£0-ZZOZ-N
Oty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement "Designated Waste" means non -Hazardous Waste which may pose special Disposal problems because of its potential to contaminate the environment, and which may be Disposed of only in Class II Disposal sites or Class 111 Disposal sites pursuant to a variance issued by the California Department of Health Services.

Designated Waste consists of those substances classified as Designated Waste by the State, in California Code of Regulations Title 23, Section 2522 as may be amended from time to time. "Discarded Materials" means Recyclable Materials, Organic Materials, and Solid Waste placed by a Generator in a receptacle and/or at a location for the purposes of Collection by Contractor, excluding Excluded Waste.
"Disposal" (or any variation thereof) means the final disposition of Solid Waste, or Processing Residue at a Disposal Facility.
"Disposal Facility" means a landfill, or other facility for ultimate Disposal of Solid Waste. "Divert" or "Diversion" (or any variation thereof) means to prevent Discarded Materials from Disposal at landfill or transformation facilities, (including facilities using incineration, pyrolysis, distillation, gasification, or biological conversion methods) through source reduction, reuse, Recycling, Composting, anaerobic digestion or other method of Processing, subsequent to the provisions of AB 939. Diversion is a broad concept that Is to be inclusive of material handling and Processing changes that may occur over the Term Including, but not limited to, changes in standard industry practice or implementation of innovative (but not necessarily fully proven) techniques or technology that reduce Disposal risk, decrease costs and/or are for other reasons deemed desirable by the City. "Dwelling Unit" means any individual living unit In a; Single -Family dwelling (SFD) or Multi -Family dwelling (MFD) structure or building, a mobile home, or a motor home located on a permanent site intended for, or capable of being utilized for, Residential living other than a hotel or motel. "Edible Food" means food intended for human consumption. For the purposes of this Agreement, Edible Food is not Solid Waste if it is recovered and not discarded. Nothing In thls Agreement requires or authorizes the recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this definition, the definition in 14 CCR Section 18982(a)(18) shall apply to thls Agreement. "Effective Date" means the date on which the latter of the two Parties signs this Agreement. "Excluded Waste means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated Waste, volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material, waste that Contractor reasonably believes would, as a result of or upon Disposal, be a violation of local, State or Federal law, regulation or ordinance, including land use restrictions or conditions, waste that cannot be Disposed of In Class III landfills, waste that in Contractors reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Contractor or City to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after implementation of programs for the safe Collection, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. Excluded Waste does not include Used Motor 011 or Use Motor Oil Filters when properly placed for Collection by Contractor, as set forth in this Agreement "Federal" means belonging to or pertaining to the Federal government of the United States. "Food Recovery" means actions to Collect and distribute food for human consumption which otherwise would be Disposed, or as otherwise defined in 14 CCR Section 18982(a)(24). "Food Scraps" means those Discarded Materials that will decompose and/or putrefy including: (i) all April 2022 FINAL DRAFT Page 6
Oty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement kitchen and table Food Waste; (ii) animal or vegetable waste that is generated during or results from the storage, preparation, cooking or handling of food stuffs; (iii) fruit waste, grain waste, dairy waste, meat, and fish waste; and, (iv) vegetable trimmings, houseplant trimmings and other Compostable Organic Waste common to the occupancy of Residential dwellings. Food Scraps are a subset of Food Waste. "Frond -Soiled Paper" means Compostable paper material that has come in contact with Food Scraps or liquid, such as, but not limited to, Compostable paper plates, napkins, and pizza boxes. Food -Soiled Paper is a subset of Food Waste.
"Generator" means any Person whose act or process produces Discarded Materials as defined in the Public Resources Code, or whose act first causes Discarded Materials to become subject to regulation. "Green Waste" means those Discarded Materials that will decompose and/or putrefy, including, but not limited to, green trimmings, grass, weeds, leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees, small pieces of unpainted and untreated wood, and other types of Organic Materials resulting from normal yard and landscaping maintenance that may be specified in City Legislation for Collection and Processing as Organic Materials under this Agreement. Green Waste does not Include Items herein defined as Excluded Waste. Green Waste are a subset of Organic Materials. Green Waste placed for Collection may not exceed six (6) Inches In diameter and three (3) feet in length and must fit within the Contractor -provided Container. Acceptable Green Waste may be added to or removed from this list from time to time by mutual consent or at the sole discretion of the City. Contractor shall not add or remove materials to or from this Ilst without written approval from the City Manager or signed amendment to the Agreement, and such approval shall not be unreasonably withheld. "Hazardous Substance" means any of the following: (a) any substances defined, regulated or listed (directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Wastes", "toxic waste", "pollutant", or "toxic substances", or similarly identified as hazardous to human health or the environment, in or pursuant to: (i) the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of 1980, 42 USC 59601 et seq. (CERCLA); (II) the Hazardous Materials Transportation Act, 49 USC 41802, et seo.. (III) the Resource Conservation and Recovery Act, 42 USC §6901 et sea. (Iv) the Clean Water Act, 33 USC §1251 et seq.; (v) California Health and Safety Code §§25115.25117, 25249.8, 25281, and 25316; (vl) the Clean Air Act, 42 USC §7901 et sea.' and, (vii) California Water Code §13050; (b) any amendments, rules or regulations promulgated thereunder to such enumerated statutes or acts currently existing or hereafter enacted; and, (c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any other Applicable Law currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl's (PCBs), petroleum, natural gas, and synthetic fuel products, and by-products. "Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State in Health and Safety Code §25110.02, §25115, and 425117 or In the future amendments to or recodifications of such statutes or identified and listed as solar panels from Residential Premises, and Hazardous Waste by the U.S. Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC 46901 et seq.), all future amendments thereto, and all rules and regulations promulgated thereunder. "Holidays" are defined as New Years Day, Memorial Day, independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
"Household Hazardous Waste" or "HHW" means Hazardous Waste generated at Residential Premises within the City. HHW includes: paint, stain, varnish, thinner, adhesives, auto products such as old fuel, Used Motor Oil and Filter, Used Oil Filter, batteries, household batteries, fluorescent bulbs, tubes, cleaners and sprays, pesticides, fertilizers and other garden products, needles, syringes, and lancets.

April 2022 FINAL DRAFT

86J0939Vd
9£0-ZZOZ-21
aty of Pismo Beach / South County Sanitary Service, Inc.

Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement "Infectious Waste" means biomedical waste generated at hospitals, public or private medical clinics, dental offices, research laboratories, pharmaceutical industries, blood banks, mortuaries, veterinary facilities and other similar establishments that are identified In Health and Safety Code Section 25117.5 as may be amended from time to time.
"Liquidated Damages" means the amounts due by Contractor for failure to meet specific quantifiable standards of performance as described In Section 12.3.
"Member Agency" means any jurisdiction that has allocated some or all of its Solid Waste powers to a Solid Waste Joint Powers Authority as defined by the Memorandum of Agreement related to the Jurisdiction's compliance with Applicable Law.
"Materials Recovery Facility" see "Approved Processing Facility(ies). "Multifamily Dwelling Unit" means, notwithstanding any contrary definition in the Municipal Code, any Premises, other than a Single Family Dwelling Unit, with five (5) or more Dwelling Units used for Residential purposes, irrespective of whether residence therein is transient, temporary or permanent, including such Premises when combined In the same building with Commercial establishments, that receive centralized, shared, Collection service for all units on the Premises which are billed to one (1) Customer at one (1) address. Customers residing In Townhouses, mobile homes, condominiums, or other structures with five (5) or more Dwelling Units who receive centralized, shared, Collection service for all units on the Premises which are billed to one (1) Customer at one (1) address shall be considered Multi - Family.
"Municipal Code" means the Pismo Beach Municipal Code, as amended from time to time. "Occupant" means the Person who occupies a Premises.
"Organic Materials" means Green Waste and Food Waste, individually or collectively. No Discarded Material shall be considered to be Organic Materials, however, unless it is separated from Recyclable Material and Solid Waste. Organic Materials are a subset of Organic Waste. "Organic Waste" means wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, Green Waste, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges, or as otherwise deflned in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
"Party" or "Parties" refers to the City and Contractor, individually or together. "Premises" means any land or building in the City where Discarded Materials are generated or accumulated. "Processing" (or any variation thereof) means to prepare, treat, or convert through some special method.
"Processing Facility" means any plant or site used for the purpose of sorting, cleansing, treating or reconstituting Recyclable Materials for the purpose of making such material available for Recycling or reuse or the facility for the Processing and/or Composting of Organic Materials. "Prohibited Container Contaminants" means the following: (I) Discarded Materials placed in the Recyclable Materials Container that are not identified as acceptable Recyclable Materials for the City's Collection program; (ii) Discarded Materials placed In the Organic Materials Container that are not Identified as acceptable Organic Materials for the City's Collection program; (ill) Discarded Materials placed in the Solid Waste Container that are acceptable Recyclable Materials and/or Organic Materials to be placed in the City's Recyclable Materials or Organic Materials Containers or otherwise managed under CRy of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement the City's Collection program; and, (iv) Excluded Waste placed in any Container. "Recyclable Materials" means by-products or discards set aside, handled, packaged or offered for Collection from residential, commercial, governmental or industrial customers in a manner different from Solid Waste, including, but not limited to, aluminum, newspaper, clear and colored glass, tin and bi-metal, all plastic containers, cardboard, chipboard, magazines, mixed paper (including magazines, phone books and junk mall) and motor oil and filters (separately collected). Greenwaste material Is Included in this definition, but Is collected separately from other Recyclable Materials, and includes grass clippings, leaves, weeds, brush, wood, Christmas Trees and branches. Acceptable Recyclable Materials may be added to or removed from this list from time to time by mutual consent or at the sole discretion of the City. Contractor shall not add or remove materials to or from this list without written approval from the City Manager or signed amendment to the Agreement, and such approval shall not be unreasonably withheld.
"Residential" shall mean of, from, or pertaining to a Single -Family Premises or Multi -Family Premises including Single -Family homes, apartments, condominiums, Townhouse complexes, mobile home parks, and cooperative apartments.
"Residue" means those materials which, after Processing, are Disposed rather than Recycled due to either the lack of markets for materials or the Inability of the Processing Facility to capture and recover the materials.
"Roll -Off means an open -top or lidded Container with a capacity of seven (7) to forty (40) cubic yards that is serviced by a roll -off Collection vehicle.
"Slit 1383" means Senate 61111383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets In a statewide effort to reduce emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time.

For the purposes of this Agreement, SB 1383 specifically refers to the Short -Lived Climate Pollutants (SLOP): Organic Waste Reductions regulations developed by CalRecycle and adopted on November 3, 2020, that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR.
"SB 1383 Qualified Renewable Natural Gas" or "SB 1383 RNG" means SB 1383 qualified gas derived from Organic Waste that has been Diverted from a landfill and Processed at an in -vessel digestion facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62)
"Self -Contractor" or "Self -Haul" means a Person who hauls Discarded Materials, recovered material, or any other material, to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66). Self - Contractor also includes a Person who back -hauls waste, as defined in 14 CCR Section 18982(a)(66)(A). "Service Level" refers to the size of a Customer's Container and the frequency of Collection service. "Single -Family" or"SFD" means notwithstanding any contrary definition In Municipal Code, any detached or attached house or residence designed or used for occupancy by one (1) family, provided that Collection service feasibly can be provided to such Premises as an Independent unit, and the Owner or Occupant of such Independent unit Is billed directly for the Collection service. Single -Family Includes Townhouses that maintain individual collection service regardless of whether each unit is separately billed for their specific Service Level, Single -Family also includes duplex, tri-plex, or four-plex Residential structures regardless of April 2022 FINAL DRAFT Page 8 April 2022 FINAL DRAFT Page 9

81. JO 9 3OVd
9£0-ZZOZ- I
Oty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement whether each unit maintains Individual collection service or is separately billed for their specific Service level.
"Solid Waste" means Solid Waste as defined in California Public Resources Code, Division 30, Part 1, Chapter 2, 440191 and regulations promulgated thereunder. Excluded from the definition of Solid Waste are Excluded Waste, Source Separated Recyclable Materials, Source Separated Organic Materials, and radioactive waste. Notwithstanding any provision to the contrary, Solid Waste may include de minimis volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after implementation of programs for the safe Collection, Recycling, treatment, and Disposal of Household Hazardous Waste In compliance with Section 41500 and 41802 of the California Public Resources Code as may be amended from time to time. Solid Waste includes salvageable materials only when such materials are included for Collection in a Solid Waste Container not Source Separated from Solid Waste at the site of generation.
"Source Separated" means the segregation, by the Generator, of materials designated for separate Collection for some form of Recycling, Composting, recovery, or reuse. "State" means the State of California.
"Subcontractor" means a Party who has entered Into a contract, express or implied, with the Contractor for the performance of an act that Is necessary for the Contractor's fulfillment of its obligations for providing service under this Agreement. Vendors providing materials and supplies to Contractor shall not be considered Subcontractors.
"Ton" or "Tonnage" means a unit of measure for weight equivalent to two thousand (2,000) standard pounds.
"Townhouse" means an attached or semi -attached Dwelling Unit within a group of attached or semi - attached Dwelling Units. A Townhouse shall be considered a Single -Family Dwelling Unit if each unit maintains individual Collection service subscription. A Townhouse shall be considered a Multi -Family Dwelling Unit if the Premise receives centralized, shared, Collection service for all units on the Premise.

These shall be the designations regardless of whether the Premises are billed individually or through a central account (e.g., homeowner association, property manager). 'Transfer" means the act of transferring the materials Collected by Contractor in its route vehicles into larger vehicles for Transport to other facilities for the purpose of Recycling or Disposing of such materials. "Transportation" (or any variation thereof) means the act of conveying Collected materials from one location to another.

Article 4. Scope of the Agreement
A. Article 4, Section 4.2 of the Agreement Is hereby amended to include the following:
"D. Contractor shall cooperate with and shall not impede, interfere, or attempt to impede or interfere with the implementation, expansion, or operation of Food Recovery efforts in the City." Article 5. Direct Services
A. Article 5, Section 5.2 of the Agreement is amended to include the following:
"Contractor shall provide regular weekly Collection of Garbage for all Premises within City, or such other level of service as may be determined by City with the consent of Contractor and at rates established by this Agreement. Contractor shall provide more frequent Collection services at rates April 2022 FINAL DRAFT Page 10
City of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement established by this Agreement for those Premises within the City that generate larger volumes of Solid Waste.

No later than the Effective Date, Contractor shall provide a three -Container Collection program to Collect and remove all Discarded Materials placed in Containers at the designated Collection locations for Single Family Dwelling Units and Multifamily Dwelling Units, and Commercial Customers all at the rates established by this Agreement. Residential Recyclable Material and Organic Materials Collection shall be weekly on the same day of the week as Solid Waste Collection service, unless in -yard service Is provided, or Customer has a received a waiver pursuant to Section 6.12. Recyclable Materials and Organic Materials Collection shall be on a schedule as determined by Contractor and the Generator. Contractor recognizes that because of an unusual circumstance, a Single Family Dwelling Unit may generate more Recyclable Material than will fit In the blue Recyclable Materials Container. The excess Recyclable Material may be neatly placed next to the blue Container and Contractor will Collect the excess Recyclable Material at no additional charge. This extra service to a Single Family Dwelling Unit shall be limited to a frequency of once per month and a quantity to an amount that will fit into the existing blue Recycling Materials Container.

Physically disabled residents who reside in a Single Family or Multifamily Dwelling Unit shall have the option of placing their Containers near their dwelling, visible from the curb, and the Contractor will collect their Containers at this location and return the Containers to the same location. To be eligible for this Collection option, residents must present proof of their physical incapacity to the Contractor."
B. Article 5, Section 5.2 of the Agreement is hereby amended to include the following subsections:
"5.2.1 Single -Family Collection
The Contractor shall provide kitchen pails designed to contain Food Scraps prior to placement in the Customer's Organic Materials Cart. Contractor will be responsible for distribution of kitchen pails to Single -Family upon request, from Contractor's office beginning on the Effective Date. City or its designee may restock Contractor inventories at local offices for distribution to new residents or residents who need a replacement
A.

B.

5.2.2 Multi -Family Collection
Contractor and City, in conjunction with each other, if directed by the City, may make contact with each and every Multi -Family Customer in advance of the Effective Date to determine appropriate Container sizes and service frequency. Contractor shall deliver Recyclable Materials Containers and Organic Materials Containers to each and every Multi -Family Customer at the same time that the Contractor delivers Solid Waste Containers.

The Contractor shall provide kitchen pails designed to contain Food Scraps prior to placement in the Customer's Organic Materials Cart. Contractor will be responsible for distribution of kitchen pails to Multi -Family Customers upon request, from Contractor's office beginning on the Effective Date. City or its designee may restock Contractor inventories at local offices for distribution to new residents or residents who need a replacement.

5.2.3 Commercial Collection
Contractor and City, in conjunction with each other, if directed by the City, may make contact with April 2022 FINAL DRAFT Page 11

81,AOZ. Odd
5£0-ZZOZ-b
aty of Pismo Beach / South County Sanitary Service, Inc.

Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement each and every Commercial Customer In advance of the Effective Date to determine appropriate Container sizes and service frequency. Contractor shall deliver Recyclable Materials Containers and Organic Materials Containers to each and every Commercial Customer at the same time that the Contractor delivers Solid Waste Containers, unless that Commercial Customer is exempted from Recyclable Materials services by the City or has demonstrated to the City that it is Diverting Recyclable Materials through subscription with another City -approved Contractor, or other City -approved method."
C. Article 5, Section 5.3 of the Agreement Is hereby amended to read as follows:
"5.3 pistarded Materials to Be Collrrt•4
A. Solid Waste. Contractor shall provide Containers to Customers for Collection of Solid Waste, and shall provide Solid Waste Collection service, as set forth in this Section. Contractor shall Transport the Solid Waste to the Approved Disposal Facility. Contractor may allow carpets and textiles to be placed in the Containers. Prohibited Container Contaminants shall not be Collected in Solid Waste Containers. The Containers shall comply with the requirements of Section 5.6.

B. Recyclable Materials. Contractor shall provide Containers to Customers for Collection of Source Separated Recyclable Materials and shall provide Source Separated Recyclable Materials Collection service, as described in this Section. Contractor shall Transport the Source Separated Recyclable Materials to the Approved Recyclable Materials Processing Facility. In addition, Organic Materials will also be Collected in a separate Container. The Parties agree that the list of accepted types of Source Separated Recyclable Materials may be added to or removed from this list from time to time by mutual consent or at the sole discretion of the City. Contractor shall not add or remove materials to or from this list without written approval from the City Manager or signed amendment to the Agreement, and such approval shall not be unreasonably withheld.

Prohibited Container Contaminants shall not be Collected in the Recyclable Materials Containers.

The Containers shall comply with the requirements of Section 5.6.

C. Organic Materials. Contractor shall provide Containers to Customers for Collection of Organic Materials and shall provide Organic Materials Collection service, as described in this Section.

Organic Materials that are to be accepted for Collection in the Organic Materials Collection program include the following: Food Scraps; Food -Soiled Paper, Green Waste, which are defined in Article 1. Contractor shall Transport the Organic Materials to the Approved Organic Materials Processing Facility.

No later than the Effective Date, Contractor shall implement an Organic Materials Collection program that allows Generators to intentionally commingle Food Waste and Green Waste in the Green Containers to all Residential, Multi -family, and Commercial business. Contractor shall provide Organic Materials Collection service, as described in this Section and Transport the Organic Materials to the Approved Organic Materials Processing Facility." D. Article 5, Section 5.4 of the Agreement is hereby amended as follows:
"5.4 Refusal to Provide Collection Servicef
Contractor may refuse to Collect Recyclable Materials or Organic Materials and shall not be obligated to continue to provide Container(s) to any participant in the Recycling or Organic Materials program who, after reasonable warning by Contractor, fails to properly sort and set out Recyclable Materials or Organic Materials, Including excessive contamination.

Contractor shall report monthly to City any warning notices issued as specified In Exhibit D." April 2022 FINAL DRAFT Page 12
Gty of Pismo Beads / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement E. Article 5, Section 5.6.2 of the Agreement is hereby amended to Include the following:

B. Specifications. All vehicles used by Contractor in providing Solid Waste, Recyclable Materials, and Organic Materials Collection services under this Agreement shall comply with all federal, California, and City requirements for such vehicles as they now exist or may be amended in the future, including all applicable air emissions requirements, and shall be registered with the California Department of Motor Vehicles. All such vehicles shall have watertight bodies designed to prevent leakage, spillage or overflow. All such vehicles shall comply with U.S. Environmental Protection Agency noise emission regulations and other applicable noise control regulations." F. Article 5, Section 5.6.3 of the Agreement is hereby amended as follows:
"5.6.3 Discarded Materials Containers
Contractor shall supply each Single -Family Dwelling Unit with a 32, 64 or 96-gallon Container for SoEd Waste. The monthly service fee for each size Container is shown in Exhibit A. In addition, each Single -Family Dwelling Unit will receive from Contractor a 64 or 96-gallon Container for all commingled Recyclable Materials and a 64 or 96-gallon Container for Organic Materials. If requested by customer, Contractor shall provide to the customer a 32-, 64-, or 96-gallon Recyclable Container and either a 32, 64- or 96-gallon Organic Materials Container.

Contractor shall provide Customers (including Single -Family, Multi -Family, Commercial, and City facility Customers) with new Collection Containers as requested by the Customer to meet its desired Service Level within five (5) Business Days of Contractor's flrst receipt of the Customer request.

Containers provided by the Contractor on and after the Effective Date, shall comply with the Container standards set forth in this Section. All Containers shall display identifying and contact information approved by the City Manager, including telephone number, capacity, and identifying inventory or serial number.

Contractor shall supply each Multi -family Dwelling Unit and commercial or governmental agency with appropriately sized Containers for Solid Waste, commingled Recyclables and Organic Materials. If needed, Contractor agrees to provide additional Containers, as requested, by all Persons at the rate as shown on Exhibit A. All Multi -family Dwelling Units and Commercial or governmental agency Customers shall be entitled to the Collection of an unlimited quantity of Recyclable Material picked up twice per week, as requested, at the rate approved by the City. Contractor agrees not to limit the specific type of Recyclable Material (such as cardboard only) that can be placed in a Container unless approved by the City on a customer -by -customer basis.

All Solid Waste Cart lids shall be black/grey, all Recyclable Materials Cart lids, shall be blue and all Organic Materials Cart lids shall be green. Solid Waste Bin, Compactor, and franchise Roll -Off lids or bodies shall be black/grey, all Recyclable Materials Bin, Compactor, and franchise Roll -Off lids or bodies shall be blue, and all Organics Materials Bin, Compactor, and franchise Roll -Off lids or bodies shall be green. No later than December 31, 2035, Contractor shall provide all Customers with clean Collection Containers that comply with the Container color requirements specified in this Section or as otherwise specified In 14 CCR Section 18982; 14 CCR, Division 7, Chapter 12, Article 3; or other Applicable Law.

If an existing Container breaks or is otherwise rendered non-functional on or after the Effective Date, the Contractor shall replace the non-functional Container with a new Container that April 2022 FINAL DRAFT Page 13

81.:O8OVd
5£0-ZZOZ-21
Oty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement complies with the color requirements of this Section. Notwithstanding this Section, the Contractor is not required to replace functional Containers, including Containers purchased prior to the Effective Date, which do not comply with the color requirements of this Section prior to the end of the useful life of those Containers, or prior to January 1, 2036, whichever comes first.

Any new Containers for Recyclable Materials shall include an in -molded graphic or sticker which provides instructions to the Generator. The final color and signage, including the in -molded graphic or sticker on the Containers shall be approved by the City Manager or their designee.

City and Contractor acknowledge that from time to time, Containers become damaged or destroyed. City and Contractor also acknowledge that from time -to -time Containers may be stolen from the curb or damaged due to normal use. The fee schedule to replace lost or damaged Containers is shown on Exhibit A.

All Contractor supplied Containers for Discarded Materials shall remain the property of Contractor. Containers damaged due to lack of reasonable care by the customer, or Containers damaged by graffiti may be replaced by Contractor, the fee for which shall be the same as for lost or damaged Containers as set forth on Exhibit A Contractor may recover Containers used by customers for other than their intended purpose.

Contractor shall ensure a label on the body or lid of each Container has been provided to a Customer that includes language or graphic Images, or both, that indicate the primary materials accepted and the primary materials prohibited in that Container. Labels shall clearly indicate items that are Prohibited Container Contaminants for each Container. On or before the Effective Date, Contractor shall imprint new Container bodies or lids with text or graphic images that indicate the primary materials accepted and the primary materials prohibited in that Container.

Labels shall clearly indicate items that are Prohibited Container Contaminants for each Container.

Prior to ordering any Containers or lids with in -mold labels, Contractor shall submit a sample of its proposed label, proposed location(s) for placement of labels on each type of Container, and Its labeling plan to the City Manager for approval.

All Roll -Offs delivered within the City limits must be placed solely on private property. Any Roll - Off delivered within the public right of way, even partially, or on other publicly owned land must be done with the benefit of the encroachment permit, unless the Roll -Off is ordered by the City.

It is Contractor's responsibility to ensure the Customer has obtained an encroachment permit prior to delivery of a Roll -Off that is entirely or partially In the right of way." G. Article 5, Section 5.8 of the Agreement is hereby retitled, and amended as follows:
"5.8 Cleaning Containers
Contractor shall steam clean and refurbish all Commercial Bins at Contractor's own expense every 6 months upon request. Customers desiring more frequent cleaning may arrange additional cleaning with Contractor at a Rate established by City, including pick- up, cleaning, and replacement of gins.

Contractor shall set a steam cleaning fee and/or a clean Container exchange fee for Organics Materials Containers to Residential Customers requesting such service up to two (2) times per year per Organics Container."
H. Article 5, Section 5.11 of the Agreement Is hereby amended as follows:
"5.11.1 Receiptof Recyclable Material and Organic Materials.

April 2022 FINAL DRAFT Page 14
City of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement The Contractor shall have in place or have arrangements for an Approved Recyclable Materials Processing Facility to receive and accept all deliveries of Recyclable Materials from Single -Family, Multi -Family and Commercial Generators in the City. Contractor shall have arrangements for an Approved Organic Materials Processing Facility to Process Single -Family, Multi -Family, and Commercial Source Separated Organic Waste.

5.11.2 Status of Approved Processing Faciiity(fes).

Any Approved Processing Facility used by Contractor must be designed and constructed in accordance with all applicable Califomia and local laws (e.g., CEQA, California Code of Regulations, etc.). The Approved Recyclable Materials Processing Facility and the Approved Organic Materials Processing Facility must have all permits from Federal, California, regional, County and City agencies necessary for it to operate as an Approved Recyclable Materials Processing Facility or an Approved Organic Materials Processing Fadlity and must be in full regulatory compliance with all such permits.

The Approved Recyclable Materials Processing Facility and Approved Organic Materials Processing Fadlity must be authorized to accept, under Its existing permit, and have sufficient uncommitted capacity to accept, all Recyclable Materials and/or Organic Materials delivered to it by, or on behalf of, Contractor for the term of this Agreement. Contractor shall Immediately notify City of any notice of breach or default received from either the Approved Recyclable Materials Processing Facility or the Approved Organic Materials Processing Facility.

5.11.3 Alternative Processing Facility
If Contractor becomes unable to deliver the City's Recyclable Materials to the Materials Recovery Facility due to causes within its control and which could have been avoided by the exercise of due care, the Contractor shall arrange for it to be accepted at another Materials Recovery Facility, In which case Contractor shall pay for any increased Transportation costs, any differences in the fees charged at such Materials Recovery Fadlity and the fees then in effect under this Agreement. If Contractor's inability to deliver the City's Recyclable Materials to the Materials Recovery Facility Is not due to causes within its control or which could have been avoided by the exercise of due care, then Contractor shall propose alternative Material Recovery Facilities including all related costs and City shall have the right to approve the alternative to be used. Contractor may propose a change in Rates to cover the costs of the alternative Material Recovery Facility pursuant to Section 8.4, without the regard to five percent limitation set forth in that section. Contractor shall provide notice by email to the City within forty-eight (48) hours of the use of an altemative Processing Facility.

Contractor shall, keep all existing permits and approvals necessary for use of the Approved Processing Facility in full regulatory compliance. Upon request, Contractor shall provide copies of facility permits and/or notices of violations (obtained from its Processing Facility if necessary) to City Manager."
J. Article 5 of the Agreement is hereby amended to include the following subsection:
"5. 13 Procurement of Recovered Organic Waste Products

5.13.1 58 1383 Compliance. To assist the City in SB 1383 compliance related to organic waste product procurement, Contractor shall make reasonable efforts to provide RNG, power, and Compost or Mulch as described below to maximize the procurement credit to the City.

April 2022 FINAL DRAFT Page 15

81dO6J`dd
5£0-ZZOZ-21
Gty of Pismo Beach / South County Sanitary Service, Inc.

Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement

5.13.2 58 1383 Qualified Renewable Natural Gas (SB 1383 RNG) Vehicles. Under this Agreement, the Contractor shall make a best effort for all Collection vehicles to be powered by SB 1383 RNG generated by a local facility or powered by SB 1383 RNG that is purchased through a wheeling agreement with a party(ies), provided that the wheeling agreement is for purchase of gas derived from Organic Waste that has been Diverted from a Landfill and Processed at an in -vessel digestion Facility that is permitted or otherwise authorized by Title 14 of CCR to recover Organic Waste and meets the requirements of 14 CCR Section 18993.1(h). Upon City's request, Contractor shall obtain and provide the City whh a written certification by an authorized representative of the publicly owned treatment works or the wheeling agreement contractor certifying that the in - vessel digestion facility produces the SB 1383 RNG consistent with the requirements of 14 CCR Section 18993.1(h). Contractor shall maintain records of the amount of SB 1383 RNG purchased and shall report this information in accordance with Exhibit D. Contractor shall agree to the Cites right to report this SB 1383 RNG usage toward the City's fulfilment of Its annual recovered Organic Waste product procurement target In accordance with 14 CCR Section 18993.1.

5.13.3 Power. To the extent that electricity produced from the Approved Organic Materials Processing Facility qualifies for City's procurement credit under SB 1383, City shall be allocated its proportional share of such qualified electricity usage based on the inbound tonnage delivered by City divided by the total inbound tonnage of the Approved Organic Materials Processing Facility for that same time period.

5.13.4 Compost Give -Away Events. Contractor shall make available for distribution an annual total of at least one thousand (1,000) cubic yards of Compost for all Member Agencies, including but not limited to the City, utilizing the Approved Processing Facility to City residents at no additional cost to the City or Customers at two (2) public events. To the extent that such distribution qualifies for City's procurement credit under S8 1383, City shall be allocated its proportional share of such qualified procurement based on the Inbound Tonnage of Organic Materials collected by Contractor from City divided by the total Inbound Tonnage of the Approved Organic Materials Processing Facility to which Contractor delivered such City Tonnage during the applicable measurement period by each Member Agency. The location, date, and time of such events shall be determined by the City with notice provided to the Contractor within twenty (20) Business Days of the date of the event and may be held in conjunction with other City -approved events. Contractor shall deliver the Compost to the agreed -upon event location at no cost to City.

Contractor shall provide at least one (1) attendant for at least six (6) hours per event." K. Article 5 of the Agreement is hereby amended to include the following subsection:
"5.14 City's Right to Perform Service, Tagging of Improper Setouts, and Prohibited Container Contaminants

5.14.1 City's Right to Perform Service. In the event Contractor falls to Collect, remove, and Dispose of Discarded Materials on a Customer's regularly scheduled Collection Day, within twenty-four (24) hours of a request from City or a Customer to do so, City may Collect said Discarded Materials and Contractor shall be liable for all related expenses incurred by City. Such expenses include but are not limited to Disposal, administrative, and legal costs. Contractor shall reimburse City for such expenses as required.

5.14.2 Customer Notices.

A. General. If the Contractor observes twenty percent (20%) or more Prohibited Container Contaminants or does not Collect any item or Container of Discarded Materials due to a April 2022 FINAL DRAFT Page 16
City of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement Customer's non- compliance with rules and regulations for proper set -out, Contractor shall attach a Customer Notice, subject to City's approval, securely to the item or Container specifying the identified non-compliance Issues. The Customer Notice shall contain Contractor's name, telephone number, and information described below.

The Customer Notice shall, at a minimum:

1. Inform the Customer of the reason for the Customer Notice; and

2. Include the date and time the issue was observed.

In addition, upon the identification of Prohibited Container Contaminants in a Customer's Container as specified in this Section, the Contractor shall provide the Customer with the following information in the Customer Notice, or through another form of communication such as mail, e-mail, text message, or over the phone:

1. Information on the Customer's requirement to properly separate materials Into the appropriate Containers, and the accepted and prohibited materials for Collection in each Container;

2. Inform the Customer of the non -Collection of the contaminated materials on this occasion with information that the Contractor may assess contamination Processing fees and/or may not Collect the Container in the future; and,

3. Include photographic evidence of the violation(s).

B. Upon Identification of Prohibited Container Contaminants. If the Contractor Collects contaminated Recyclable Materials and/or Organic Materials Containers, Contractor shall either Transport the material to the appropriate Approved Facility for Processing; or, Contractor may Collect the contaminated materials with the Solid Waste and Transport the contaminated materials to the Approved Disposal Facility. A Collection of contaminated Recyclable Materials or Organic Materials where the materials are sent to the Approved Disposal Facility may be made with a Solid Waste Collection vehicle, provided that the contaminants may safely and lawfully be Collected as Solid Waste.

C. Communications with Customer. Whenever a Container at the Premises of a Customer is not Collected, Contractor shall contact the Customer on the scheduled Collection day by telephone, email, text message, or other verbal or electronic message to explain why the Container was not Collected. Whenever a Container is not Collected because of Prohibited Container Contaminants, a Customer service representative shall contact the Customer to discuss and encourage the Customer to adopt proper Discarded Materials preparation and separation procedures.

D. Contractor Return for Collection. Upon request from Customer, Contractor shall Collect Containers that received Customer Notices specifying non -Collection within one (1) Working Day of Customer's request. Contractor shall bill Customer for the extra Collection service event ("extra pick-up") at the applicable City -approved Rates only If Contractor notifies Customer of the premium Rate for this service at the time the request Is made by Customer.

E. Assessment of Contamination Processing Fees. If the Contractor observes twenty percent (20%) or more Prohibited Container Contaminants and has Issued a Customer Notice specifying April 2022 FINAL DRAFT Page 17

el- JOOt.AJbd
5£0-ZZOZ-b
aty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement a Collection, the Contractor may impose a contamination rate approved by the City for that Customer's Service Level, If and only if Contractor has Informed the Customer of the potential for a Processing fee pursuant to this Section. The Intent of contamination fees is to provide a behavioral tool to educate and prevent Customers from placing Source Separated Discarded Material into the improper designated Container(s). To ensure that assessment of fees is to be used for the intended purposes and not as a form of revenue generation, After the first Issuance of a Customer Notice for the observance of Prohibited Container Contaminants In one (1) calendar year, Contractor may Issue a fee of ten (10) dollars. After the second observance of Prohibited Container Contaminants in the same calendar year, Contractor may Issue a fee of twenty (20) dollars. After the third observance of Prohibited Container Contaminants In the same calendar year, Contractor may Issue a fee of thirty (30) dollars. In the fourth and any subsequent observances of Prohibited Container Contaminants in the same calendar year, Contractor may increase the contamination Processing fee by ten (10) dollar increments and may Collect the contaminated materials with the Solid Waste and Transport the contaminated materials to the Approved Disposal Facility, provided that the contaminants may safely and lawfully be Collected as Solid Waste.

F. Suspension of Contamination Processing Fee Program. Contractor agrees that contamination fees shall not exceed one percent (1%) of Contractor's Gross Receipts in any calendar quarter.

In the event that contamination fees exceed one percent (1%) of Contractor's Gross Receipts In any calendar quarter, the assessment of contamination fees shall be suspended immediately and Indefinitely pending a program assessment by the City and Contractor. Upon program suspension or at the request of the City at any time during the Term of the Agreement, City and Contractor shall meet and confer regarding the application and effectiveness of contamination fees in accomplishing the behavior change. If the program is suspended due to excessive revenue generation, the City may require Contractor to eithen i) modify the program parameters; II) modify the amount of the contamination fee; or, iii) return to the City any funds generated by the contamination fee which exceed one percent (1%) of Contractor's Gross Receipts for a given period of time.

G. City Actions upon Identification of Prohibited Container Contaminants. The City or its designee shall perform 5B 1383 activities required for the identification of Prohibited Container Contaminants which includes but is not limited to, record keeping, provision of educational notices and reporting."
Article 6. Other Services: Billing, Reporting, Record -Keeping and Public Education A. Article 6, Section 6.8 of the Agreement Is hereby amended to the following:
"6.8 Customer Information
Contractor shall prepare and keep current a flier acceptable to the City which summarizes solid waste regulations, all services provided by Contractor, solid waste collection and disposal rates, telephone numbers, special collection events, collection schedules, complaint procedures, and other pertinent information. Contractor shall have copies of this flier available at all times in Contractor's office; shall distribute copies to all new customers; shall annually mail copies to all of its current customers; and shall mail updated copies to ail customers as notification of changes in service or rates, prior to such changes.

Contractor shall maintain Customer contact data, Customer service, accounting, statistical, operational, programmatic, and other records, and associated documentation related to Its April 2022 FINAL DRAFT Page 18
City of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement performance as shall be necessary to provide detailed and as accurate reports under this Agreement, and to demonstrate compliance with the Agreement and Applicable Law."

8. Article 6, Section 6.10 of the Agreement is hereby amended to the following:
"6.10 Public Education
The Gty shall be responsible for designing, implementing, and conducting a public education and outreach program. The City's public education and outreach strategy shall focus on Improving Generator understanding of the benefits of and opportunities for source reduction, Reuse, and Landfill Disposal reduction and supporting compliance with Applicable Laws and regulations, including, but not limited to AB 939, AB 341, AB 1826, AB 876, AB 901, SB 1383, and other current or future Federal, State, or local regulations, as amended. The cumulative intended effect of these efforts is to reduce each Generator's Solid Waste and, ultimately, Disposal of Solid Waste, and Contractor agrees to support and not undermine or interfere with such efforts.

Contractor acknowledges and agrees that education and public awareness are critical, key and essential elements of any efforts to achieve AB 939 and other Applicable Law requirements.

Contractor shall cooperate and coordinate with the Gty on public education activities to minimize duplicative, inconsistent, or inappropriately timed education campaigns. Accordingly, Contractor agrees to take direction from City to exploit opportunities to expand public and customer knowledge concerning needs and methods to reduce, reuse and recycle solldwaste and to cooperate fully with City in this regard.

Contractor shall maintain its own program of providing information relevant to billing and solid waste services, issues and needs with its bills. Contractor shall also include In customer bills additional information, including information on recycling programs, as directed by the City.

Contractor shall bear all labor costs with respect to Inserting public education materials with the billings. City shall bear any additional postage expense resulting from the City's Inserts and shall bear other expenses related to the inserts to the extent said expenses are clearly in excess of the Contractor's normal billing costs. Contractor agrees to insert and distribute brochures, newsletters, or other information developed by the City, as inserts in Contractor's Customer invoices at no additional charge to the City. Up to letter -sized bit inserts shall be designed and produced by the City, with review and comment by Contractor, and final approval by the City.

Annually, Contractor shall be responsible for printing the bill Inserts. For Customers receiving electronic bills, Contractor agrees to distribute brochures, newsletters, or other information developed by the City as attachments to Customer Invoices at no additional charge to the City.

Contractor shall provide electronic bill inserts (or separate email attachments) to Customers who are billed electronically, and paper bill inserts to Customers who receive paper bills. Electronic bill inserts/attachments must be readily available for the Customer to view upon receipt of the invoice (attachments shall not be provided as links). Upon City's request for such inserts, Contractor shall comply with such request during Its next billing cycle for the targeted Customer group. Contractor shall perform this service with no additional requirement for compensation.

All public education materials shall be approved in advance by the City.

Contractor shall obtain approval from the City on all Contractor -provided public education materials outside of the City's education plan, Including, but not limited to print, radio, television, or Internet media before publication, distribution, and/or release. All education and outreach materials detailed in this Section shall be provided in at the very least English and Spanish, as to comply with SB 1383 and other Applicable Law. City shall have the right to request that Contractor include City identification and contact information on public education materials April 2022 FINAL DRAFT Page 19
1 81, dO I- L 3OVd
5£0-ZZOZ-N
Oty of Pismo Beach / South County Sanitary Service, Inc.

Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement and approval of such requests shall not be unreasonably withheld.

At the direction of the City, Contractor shall participate in and promote AB 939, AB 341, AB 1826, SB 1383, and other current or future Federal, State, or local regulations, as amended, and other Solid Waste management techniques at community events and local activities. Such participation would normally Include providing, without cost, educational and publicity information promoting the goals of the City's Solid Waste program.

Not less than once per year during each Rate Year, Contractor shall prepare and distribute to each Generator In the City a mailer that includes information specified in 14 CCR Section 18985.1(a). Such mailer shall be distributed by Contractor to all Residential and Commercial mailing addresses including individual Multi -Family Dwelling Units. Contractor shall also make this notice available in an electronic format through the Contractor's webshe." C. Article 6, Section 6.11 of the Agreement is hereby amended to the following:
"6.11 Records Retention
Contractor shall maintain the above records, reports and data set forth in this Article for the Term of this Agreement plus five (5) years after its expiration or earlier termination. Records and data shall be In chronological order and organized form that Is easily and easily Interpreted to facilitate flexible use of data to structure reports. Contractor's reports shall be stored in one central location, physical or electronic, that can be readily accessed by City. Contractor agrees to make all such records, reports and data available for inspection by Oty or City's authorized representatives in a timely manner not to exceed ten (10) Business Days of a request, such that the City or City's authorized representative may fulfill its obligations under Applicable Law including, but not limited to, AB 939, AB 341, AB 1826, AB 876, AB 901, 581383, and other current or future Federal, State, or local regulations, as amended." D. Article 6 of the Agreement is hereby amended to Include the following subsection:
"6.12 Waivers
The City or its designee may grant waivers described in this Section to Commercial or Multi - Family Generators that impact the scope of Contractor's provision of service for those .Customers; provided, the Generator shall continue to subscribe with Contractor for franchised Collection services to the extent such services are not waived by the City. Waivers Issued shall be subject to compliance with SB 1383 requirements, pursuant to 14 CCR Section 18984.11, or other requirements specified by the City.

6.12.1 Generator Waivers.
a. De Minimis Waivers. The City or its designee may waive a Multi-Family's, Commercial Business's, or Its Property Owner's obligation to comply with some or all of the Source Separated Recyclable Materials and Organic Materials requirements set forth in this Agreement, SB 1383 Regulations, and applicable City Municipal Code if the Multi -Family, Commercial Business, or its Property Owner provides documentation, or the City has evidence demonstrating one of the following de minimis conditions:
i. The Multi-Family's or Commercial Business's total Solid Waste Collection service is two (2) cubic yards or more per week, and Organic Materials subject to Collection comprises less than twenty (20) gallons per week, per applicable Container, of the Multl-Family's or Commercial Business's total waste; or, April 2022 FINAL DRAFT Page 20
Cry of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement

11. The Multi-Family's or Commercial Business's total Solid Waste Collection service is less than two (2) cubic yards per week, and Organic Materials subject to Collection comprises less than ten (10) gallons per week, per applicable Container, of the Multi-Family's or Commercial Business' total waste. b. Space Constraint. The City or its designee may waive a Multi-Family's, Commercial Business's, or its Property Owner's obligation to comply with some or all of the Source Separated Recyclable Materials or Organic Materials Collection service requirements set forth In this Agreement, SB 1383 Regulations, and/or as required in the Municipal Code, in the event that the Generator qualifies for a space constraint waiver under the City's Municipal Code.

6.12.3 Waiver Requests. Generators may submit requests for de minimis waivers and physical space waivers to the City. If a Generator submits a request for a waiver to the Contractor, the Contractor shall refer the Generator to the City. Upon request of the City the Contractor shall support the City in the waiver review process by providing requested Customer information. If the City or its designee grants a waiver to a Generator, the City shall notify the Contractor and Contractor shall update the Customer's information and Service Level." Article 7. Payments to City
A. Article 7, Section 7.2 of the Agreement is hereby amended as follows:
"7.2 AB 939/SB 1383 Reimbursement Fee
If requested by City, Contractor shall pay an AB 939/S8 1383 reimbursement fee each month, to be specified annually by the City, and in addition If the San Luis Obispo Integrated Waste Management Authority "IWMA" currently implements an AB 939, SB 1383 reimbursement, or Solid Waste Management fee, Contractor shall pay that fee directly to the IWMA. Said fee shall be an allowable cost In Contractor's rate application. All AB 939 fees, SB 1383 fees, or Solid Waste Management fees paid to the City or IWMA shall be considered a pass through cost for purposes of rate setting, and as such if the City or IWMA changes these fees, the Contractor's rates shall be adjusted accordingly subject to all Applicable Laws and regulations. The City or the IWMA shall have the right to establish and adjust the AB 939, SB 1383, or Solid Waste Management fee at any time, provided that any changes are considered a pass through cost for the purposes of rate setting, at the time of the change in the Solid Waste Management fee." Article 9. Records, Reports and Information, Studies, and Hearing Requirements A. Article 9, Section 9.1 of the Agreement is hereby amended as follows:

9.1 BCL=Ld3
Contractor shall maintain records required to conduct its operations, to support requests it may make to City, and to respond to requests of the City, and to help Oty fulfill its obligations under Applicable Law Including, but not limited to, AB 939, AB 341, AB 1826, AB 876, AB 901, 58 1383, and other current or future Federal, Stator or local regulations, as amended. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a flre, theft and earthquake.

Electronically maintained data and records shall be protected and an adequate backup system shall be provided for such data and records. The protection and backup systems shall be subject to approval by the City.

The following records shall be maintained for the City in form and detail satisfactory to the City, relating April 2022 FINAL DRAFT Page 21

81, dO Z 1. 39Vd
9£0-ZZOZ-2I
Gty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement to:
• Customer services and billing;
• Weight of Solid Waste, especially as related to reducing and Diverting Solid Waste. Information is to be separated by kind of account;
• Special annual dean -up event results;
• Routes;
• Facilities, equipment and personnel used;
• Facilities and equipment operations, maintenance and repair, • Processing and Disposal of Solid Waste;
• Complaints;
• Missed pick-ups; and,
• Any other records as specified in Exhibit D.

Contractor shall maintain records of Transfer, Diversion and Disposal of all Solid Waste Collected in the City for the period of this Agreement and all extensions to this Agreement or successor Agreements. In the event Contractor discontinues providing Solid Waste services to City, Contractor shall provide all records of Diversion and Disposal of all Solid Waste Collected within the City to City within thirty (30) days of discontinuing service. Records shall be in chronological order, and organized in a form readily and easily interpreted.

Records for other programs shall be tailored to specific needs. In general, they shall include:
• Plans, tasks, and milestones.
• Accomplishments in terms such as dates, activities conducted, quantities of products used, produced or distributed, and numbers of participants and responses.

B. Article 9, Section 9.3 of the Agreement is hereby amended as follows:
"9.3 Report Formats and Schedule
Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed. Reports are Intended to compile recorded data into useful forms of information that can be used to, among other things:
• Determine and set rates, and evaluate the financial efficacy of operations; and objectives; and
• Evaluate past and expected progress towards achieving goals and • Determine needs for adjustment to programs; and
• Evaluate customer service and complaints
The City may at no cost to Itself request that Contractor provide such additional information in the reports set forth below as the City deems necessary or appropriate to meet its needs, including provision of AB 939 report Information.

Contractor shall submit all reports to the City electronically via e-mail using software acceptable to the City. The City reserves the right to require the April 2022 FINAL DRAFT Page 22
Gty of Pismo Beads / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement Contractor to maintain records and submit the reports required herein through use of the City -selected web -based software platform and/or Microsoft Excel spreadsheet, at the Contractor's expense. Monthly reports shall be submitted within ten (10) calendar days after the end of the report month. Quarterly reports shall be submitted within fifteen (15) calendar days after the end of the quarter.

Quarters end on November 30, February 28, May 31, and August 31. Annual reports shall be submitted no later than forty-five (45) calendar days after the end of each calendar year.

All reports shall be submitted to:

Gty Manager
City of Pismo Beach
760 Mattie Road
Pismo Beach, CA 93449"
C. Article 9, Section 9.4 of the Agreement shall hereby be amended as follows:
"9.4 Monthly Reports
The information listed shall be the minimum reported for each service:
• Discarded Materials, Collected, Transferred, Diverted and Disposed of, by sector (Commercial, industrial, Residential) of Generator -Collected by Contractor, in Tons, by month.
• Complaint summary, for month and cumulative for report year, as above.

Summarized by nature of Complaints.
• Narrative summary of problems encountered, and actions taken with recommendations for the City, as appropriate.
• All data and Information described in Exhibit D."
D. Article 9, Section 9.5 of the Agreement is hereby amended as follows:
"Quarterly reports shall be formatted and submitted as described In Exhibit D." E. Article 9, Section 9.7 is hereby added to the Agreement as follows:
"9.7 Additional Reports
AB 901 Reporting. At the City's option, the City may require that Contractor provide the Gty with the aggregate tonnage data related to AB 901 reporting that the City needs for Its 5B 1383 reporting, to the extent available to Contractor within five (5) Business Days of City request, or mutually agreed time. At the City's option, the City may review specific Customer information; however, City shall not be permitted to make copies or take records specific to Customer information. "
Article 12. Default, Remedies and Liquidated Damages
A. Article 12, Section 12.3 of the Agreement is hereby amended to the following:
"12.3 Liquidated Damages
A. General. The Parties find that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a breach by Contractor of its obligations under this Agreement. The factors relating April 2022 FINAL DRAFT Page 23

14 8Ld0CI, AOVd
9£0-ZZOZ-21
City of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement to the Impracticability of ascertaining damages Include, but are not limited to, the fact that (I) substantial damage results to members of the public who are denied services or denied quality or reliable service; (II) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to Individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that exclusive services might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is Impossible to calculate In precise monetary terms; and, (Iv) the termination of this Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches.

B. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The Parties further acknowledge that consistent, reliable Collection services are of utmost importance to City and that City has considered and relied on Contractor's representations as to its quality -of -service commitment in awarding the Agreement to It. The Parties recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The Parties further recognize that if Contractor fails to achieve the performance standards or fails to submit required documents in a timely manner, City and its residents and businesses will suffer damages, and that it is, and will be, impractical and extremely difficult to ascertain and determine the exact amount of damages which City will suffer. Therefore, without prejudice to City's right to treat such non-performance as an event of default under this Section, the Parties agree that the Liquidated Damage amounts established In this Section represent a reasonable estimate of the amount of such damages considering all of the circumstances existing on the Effective Date of this Agreement, including the relationship of the sums to the range of harm to City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical.

Contractor agrees to pay (as Liquidated Damages and not as a penalty) the amounts set forth in the Performance Standards and Liquidated Damages, Article 12.

Before assessing Liquidated Damages, City shall give Contractor notice of Its intention to do so.

The notice will include a brief description of the incident(s) and non-performance. City may review (and make copies at Its own expense) all Information in the possession of Contractor relating to incident(s) and/or non-performance. City may, within ten (10) Business Days after issuing the notice, request a meeting with Contractor. City may present evidence of non-performance in writing and through testimony of Its employees and others relevant to the incident(s) and non- performance. City Manager will provide Contractor with a written explanation of their determination on each incident(s) and non-performance prior to authorizing the assessment of Liquidated Damages under this Section. The decision of City shall be final, and Contractor shall not be subject to, or required to exhaust, any further administrative remedies.

City wishes to establish standards of performance under the Agreement in each of the "Performance Areas" listed below. The City Manager may monitor Contractor's performance in each of those areas based on the "Speclfk Performance Measures" within that performance area.

In the event that the City Manager determines that Contractor has failed to meet the performance standard established for any "Specific Performance Measure", the City may assess Liquidated Damages pursuant to this Section of the Agreement. Liquidated Damages, if assessed, shall only Aprll 2022 FINAL DRAFT Page 24
City of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement be assessed for the number of events, days, or other measure in excess of the acceptable performance level.

Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts set forthbelow:

Collection Reliability and Ouatlty
For each failure over five (5) annually to commence service to a new customer account within seven (7) days after order:
$150
For each failure over twenty-four (24) each calendar year to Collect Solid Waste, Recyclables or Organic Materials, which has been properly set out for Collection, from an established customer account on the scheduled Collection day and not collected within 24 hours after notice of missed pick-up:
$150
For each failure to Collect Solid Waste, Recyclables
or Organic Materials, which have been properly set out for Collection,
from the same customer on two (2) consecutive scheduled pickup days:
$150
For each occurrence over five (5) annually of damage to private property:
$250
For each occurrence over ten (10) annually of discourteous behavior:
$250
For each failure over ten (10) annually to clean up Discarded Materials, spilled by Contractor from Containers:
$150
For each occurrence over five (5) annually of Collecting Discarded Materials, during unauthorized hours:
$250
For each failure to respond to a customer complaint within twenty-four (24) working hours:
$100
Timeliness of Submissions to Citt
REPORTS. Any report shall be considered late until such time as City receives a correct and complete re. • 11. For each calendar d. a re .ort is late, the dat assessment hall be:

Monthly Reports: For each infraction
Quarterly Reports: For each Infraction
Annual Reports: For each infraction
$25 per day
$25 per day
$50 per day
Use of Unauthorized Facilities. For each Individual occurrence of delivering Discarded Materials to a Facility other than an Approved/Designated Facility(ies) for each Discarded Material type under this Agreement.
$0 for first five (5) failures; $1,000
per each subsequent failure
Failure to Implement three-Contalner System. For each
occurrence of failing to provide Customers with the three - Container system required by and compliant with Section 5.2 and

5.4 excluding Generators and Customers granted waivers
pursuant to Section 6.12 of this Agreement and excluding Generators and Customers that demonstrate compliance with $100/ Generator or Customer /
occurrence / Day until
compliance achieved
April 2022 FINAL DRAFT

dO171- Odd
9£0-ZZOZ-21
Gty of Pismo Beath / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement Recycling and Organic Waste Self -Hauling requirements pursuant to applicable City Municipal Code and 14 CCR Division 7, Article 12, Article 7.

Failure to Comply with Container Labeling and Colors. For each occurrence of Contractor's failure to comply with Container labeling and color requirements pursuant to Section 5.6 of this Agreement.
$180 / Container / occurrence
Failure to Perform Public Education and Outreach. For each failure to perform any individual education and outreach activity as required and in the tlmeframe specified by this Agreement. 5180 / occurrence
Failure to Allow Access to Records. For each failure to provide access to records In compliance with and in the tlmeframe specified in this Agreement.

Failure to provide access
records: $120 / day
to
Failure to Issue Customer Notices. For each failure of Contractor Collection personnel to issue contamination notices and maintain documentation of issuance as required by Section 5.14 of this Agreement.
$100
/Contractor
Route/Day
Improper Fee Issuance. For each fee that is issued to a generator without prior authorization from City under this agreement. $100
/Customer/Day
Amount. The City Manager or his/her designee may assess liquidated damages for each calendar day or event, as appropriate, that Contractor is determined to be liable In accordance with this Agreement In the amounts specified in this Section subject to annual adjustment described above.

Article 13. Other Agreements of the Parties
A. Article 13, Section 13.6 of the Agreement is hereby amended as follows:
"13.6 Subcontracting. Except as approved in writing by the City, Contractor shall not enter into an agreement to have another Person perform Collection, Transportation, or Processing of Recyclable Materials, Organic Materials or Solid Waste services without the prior written consent of City Manager. Contractor must obtain written agreements with Processing Subcontractors, including the Approved Organic Materials Processing Facility, to the Facility's capacity to Process Discarded Materials. If the Contractor plans to engage other affiliated or related party entities in the provision of services, Contractor shall provide City Manager and City with thirty (30) days written notification of its plans and provide an explanation of any potential impacts related to the scope, quality, timeliness, or cost of providing services under this Agreement. All Insurance documents must be reviewed and approved by the City's Risk Manager prior to City acceptance. Contractor shall require that all Subcontractors file insurance certificates with the Clty, name Clty as an additional insured, and comply with all material terms of this Agreement. Contractor shall undertake to pay City its reasonable expenses for attorney's fees and investigation costs necessary to investigate the suitability of any proposed subcontractor, and to review and finalize any documentation required as a condition for approving any such subcontracting agreement"
April 2022 FINAL DRAFT Page 26
Gty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement Exhibit D. Recordkeeping and Reporting
A. Exhibit D, Recordkeeping and Reporting, is hereby added to thls agreement as follows:

EXHIBIT D

RECORD KEEPING AND REPORTING
D.1 General
Contractor shall maintain such accounting, statistical, and other records related to Its performance under this Agreement as shall be necessary to develop the reports required by this Agreement or City Municipal Code. Contractor agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with Applicable Laws and regulations and to meet the reporting and Discarded Materials Collection, Processing, and Disposal program management needs of the City. At the written direction or approval of City, the records and reports to be maintained and provided by Contractor in accordance with this Exhibit and other Articles of the Agreement may be adjusted in number, format, and frequency, if required to comply with State or Federal regulatory or reporting requirements.

Information from Contractor's records and reports can be used to, among other things:

1. Determine and set Rates and evaluate the financial efficacy of operations;

2. Evaluate past and expected progress toward achieving the Contractor's Landfill Disposal reduction or Diversion goals and objectives;

3. Provide concise and comprehensive program information and metrics for use In fulfilling reporting requirements under Applicable Law;

4. Determine needs for adjustment to programs;

5. Evaluate Customer service and Complaints; and,

6. Determine Customer compliance with AB 341, AB 1826, and SB 1383 statutes and corresponding regulations; and, any subsequent State -mandated landfill Disposal reduction, Recycling, recovery, or Diversion statutes, regulations, or other requirements.

D.2 Record Keeping
A. General. Contractor shall maintain Customer contact data, Customer service, accounting, statistical, operational, and other records related to its performance as shall be necessary to provide reporting required by this Agreement and Applicable Law and to demonstrate compliance with this Agreement and Applicable Law (such as, but not limited to, AB 939, AB 341, AB 1826, AB 876, AB 901, and SB 1383 statutes and corresponding regulations).

Record keeping and reporting requirements specified in this Agreement shall not be considered a comprehensive list of reporting requirements. In particular, this Exhibit Is intended to highlight the general nature of records and reports and their minimum content and is not meant to comprehensively define the scope and content of the records and reports that Contractor is required to maintain and report by Applicable Law or this Agreement. Upon written direction or approval of City, the records and reports required by April 2022 FINAL DRAFT Page 27

81. JO 51, 2OVc
9£0-ZZOZ-21
City of Pismo Beath / South County Sanitary Service, Inc.

Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement Contractor In accordance with this and other Articles of the Agreement shall be adjusted in number, format, or frequency.

Contractor shall maintain adequate records, and corresponding documentation, of information required by this Exhibit, such that the Contractor is able to produce accurate monthly, quarterly, and annual reports, and is able to provide records to verify such reports.

Contractor will make these records available and provide to the City any record or documentation necessary for the City to fulfill obligations under Applicable Law including, but not limited to, AB 939, AB 341, AB 1826, AB 876, AB 901, and SB 1383 statutes and corresponding regulations; and, other current or future Federal, State, or local statutes and regulations, as amended. Upon request by the City, Contractor shall provide access to Contractor's requested records in a timely manner, not to exceed ten (10) Business Days from the time of City's request to Contractor.

B. Record Retention and Security. Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed, pursuant to this Exhibit. Contractor's records shall be stored in one central location, physical or electronic, that can be readily accessed by Contractor. City reserves the right to require the Contractor to maintain the records required herein through the use of a City -selected web - based software platform, at Contractor's expense. Unless otherwise required in this Exhibit, Contractor shall retain all records and data required to be maintained by this Agreement for the Term of this Agreement plus five (5) years after its expiration or earlier termination.

Records and data shall be in chronological and organized form and readily and easily Interpreted. Contractor shall maintain adequate record security to preserve records from events that can be reasonably anticipated such as a fire, theft, and an earthquake.

Electronically maintained data and records shall be protected and backed -up. To the extent that Contractor utilizes its computer systems to comply with record keeping and reporting requirements under this Agreement, Contractor shall, on a monthly basis, save all system - generated reports supporting those record keeping and reporting requirements in a static format in order to provide an audit trail for all data required.

C. Compilation of Information for State Law Purposes. Contractor shall maintain accurate records for Its operation, including, but not limited to, Discarded Materials quantities Collected and quantities Transported to or Transferred to each Approved Facility, listed separately by material type, Customer type, and Facility. Records shall be maintained in such form by methods that facilitate the use of data for the production of reports as needed.

Contractor will make these records available and provide to the City, any record or documentation necessary for the City to fulfill obligations under Applicable Law including, but not limited to, AB 939, AB 341, AB 1826, AB 876, AB 901, AB 1595, and SB 1383 statutes and corresponding regulations; and, other current or future local, Federal or State statutes and regulations, as amended.

D.3 Reporting
D.3.1 General
A. General Purpose. Reports are intended to compile recorded data into useful forms of information that can be used by the Clty. All reports shall be adequate to meet City's current April 2022 FINAL DRAFT Page 28
Oty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement and future reporting requirements to CalRecycle, including AB 939, AB 341, AB 1826, and SB 1383 statutes and corresponding regulations, or any other State or Federal agency statutes and regulations throughout the Term of this Agreement.

B. Failure to Report. Failure of Contractor to comply with the reporting requirements as set forth In this Section may result in an assessment of Uquidated Damages in accordance with the Liquidated Damages provision in Section 12.3 of this Agreement. Contractor's repeated failure to submit reports, and/or failure to submit reports on time, may be deemed an event of default and may result in the termination of the Agreement at the discretion of the City Manager, in accordance with Article 12 of this Agreement.

C. Report Format. Contractor shall submit all reports to the City electronically via e-mail using software acceptable to the Clty. The City reserves the right to require the Contractor to maintain records and submit the reports required herein through use of the City -selected web -based software platform and/or Microsoft Excel spreadsheet, at the Contractor's expense.

D. Submittal Process. All reports shall be submitted to the City, Department of Public Works, Solid Waste Planning and Recycling Program and the Department of Environmental Health Local Enforcement Agency or as directed by the City Manager/Director. Reports shall be submitted electronically via email or uploaded to a document sharing platform agreed upon by the Parties. City reserves the right to require the Contractor to maintain records and submit the reports required herein through use of a City -selected web -based software platform, at the Contractor's expense.

Monthly reports shall be submitted within ten (10) calendar days after the end of the reporting month; quarterly reports hall be submitted within fifteen (15) calendar days after the end of the quarter; and annual reports shall be submitted within forty-five (45) days after the end of the reporting year.

D.3.2 Monthly Reports
Monthly reports shall be submitted by Contractor to City and shall include the following information pertaining to the most recently completed calendar month. In addition, each monthly report shall include a year-to-date summary page that includes the data submitted from the monthly report(s) submitted in the calendar year prior to the submittal of the current monthly report. Contractor shall report the Information included in the following subsections.

A. Tonnage Report

1. Contractor shall report the total quantities in Tons of Discarded Materials Collected, Transferred, Processed, and Disposed by the Contractor, all of which shall be based on actual certified scale weights for each load, if available, or similarly accurate methodology pursuant to weighing protocol. Tonnage shall be reported separately by:
a. Material type, which shall include, at a minimum, separate reporting of Source Separated Recyclable Materials, Source Separated Organic Materials, Solid Waste, and any other type of Discarded Material separately Collected by Contractor (including, but not limited to: Bulky Items, used oil, mixed C&D, dirt, rock, metals, cardboard, wood waste, salvageable materials, etc);
b. Customer/sector type (Single -Family, Multi -family, Commercial Roll -off, C&D); and, April 2022 FINAL DRAFT Page 29

81,JO963O` c
9£0-ZZOZ-1:1
Gty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement c. Approved Facility and Facility type.

2. Report Residue level and Tonnage for all Discarded Materials Processed, listed separately by material type Collected and Approved Facility(les) used.

3. Source Separated Recyclable Materials Tonnage Marketed, by commodity, and including average commodity value for each, and Processing Residue Tonnage Disposed, listed separately by material type Collected and Approved Facility(ies) used.

4. Documentation of all Discarded Materials exported out of State, as provided in 14 CCR Sections 18800 through 18813.

B. Collection and Subscription Report

1. Number of Containers at each Service Level by Customer Type and program, including:
a. A summary of the total gallons of Cart service, cubic yards of Bin service, and pulls, and cubic yards or Tons of Drop Box and Compactor service by Customer Type. b. Calculation of the average volume of service received per. Single -Family Dwelling Unit (separately identifying Dwelling Units Ina duplex, triplex, or fourplex); Multi -Family Dwelling Unit; and Commercial Customer.

2. A summary of Customer subscription data, Including the number of accounts; the number of Customers subscribing to each Cart, Bin, and Roll -Off Service Level listed separately for Single -Family, Multi -Family, and Commercial and separately for each type of Discarded Material; the number and type of waivers (i.e., de minimis or physical space constraint) active for Customers for each type of Discarded material; and the number of Bulky Items Collections performed.

C. Contamination Monitoring Report
The Contractor shall submit the following information regarding Contractor conducted contamination monitoring issuance of Customer Notices conducted pursuant to Section 5.4 and 5.14 of this Agreement:

1. Description of the Contractor's Process for determining the level of contamination;

2. Summary report of Customer Notices issued which for each notice shall include the date of Issuance, Customer name, and service address.

3. A record of each inspection and contamination Incident, which shall Include, at a minimum:
a. Name of the Customer
b. Address of the Customer
c. The date the contaminated Container was observed
d. The staff who conducted the inspection
e. The total number of violations found, and a description of what action was taken for each
f. Copies of all notices issued to Generators with Prohibited Container Contaminants g. Any photographic documentation or supporting evidence.

4. Any other information reasonably requested by the City or specified in contamination April 2022 FINAL DRAFT Page 30
Gty of Piismo Beads / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement monitoring provisions of this Agreement.

D. Customer Service Report

1. Contractor shall maintain a record of all 5B 1383 noncompliance Complaints as defined in 14 CCR Section 18995.3 and responses and submit the following information:
a. Total number of 58 1383 non-compliance Complaints received, and total number of SB 1383 non-compliance Complaints investigated
b. Copies of documentation recorded for each SB 1383 non-compliance Complaint received, which shall at a minimum include the following information:
i. The SB 1383 non-compliance Complaint as received;
ii. The name and contact information of the complainant, if the 58 1383 non- compliance Complaint is not submitted anonymously;
iii. The identity of the alleged violator, if known;
iv. A description of the alleged violation; including location(s) and all other relevant facts known to the complainant;
v. Any relevant photographic or documentary evidence submitted to support the allegations in the SB 1383 non-compliance Complaint; and, vi. The identity of any witnesses, if known.
c Copies of all SB 1383 non-compliance Complaint reports submitted by Contractor to the City.
d. Copies of all investigation reports submitted to the City which shall Include at a minimum:

I. The SB 1383 noncompliance Complaint as received;
ii. The date the Contractor investigated the SB 1383 non-compliance Complaint; iii. Documentation of the findings of the investigation; iv. Any photographic or other evidence collected during the investigation; and, v. Contractor's recommendation to the City on whether or not the entity investigated is in violation of SB 1383 Regulations based on the Contractor's investigation.

E. Education Program Report
The monthly status of activities identified in the annual public education plan described in Section

6.10 of this Agreement.

D.3.3 Annual Reports
In addition to the monthly reporting requirements in this Exhibit, the Contractor shall provide an Annual Report, covering the most recently completed calendar year, in accordance with the format and submittal requirements of this Exhibit. The Annual Report shall include the Information in the following subsections.

April 2022 FINAL DRAFT Page 31

el- JO/1- OVd
9£0-ZZOZ-2I
City of Pismo Beath / South County Sanitary Service, Inc.

Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement A. Collection and Subscription Report

1. A summary of all data provided in the Tonnage report section, including quarterly and annual totals and averages.

2. The type(s) of Collection service(s) provided, a list of all hauler routes serviced, and a record of the addresses served on each hauler route.

3. A summary of Customer subscription data, including the number of accounts; the total number of Generators enrolled with Contractor for service, listed separately by Service Level and Container type (Cart, Bin, and Roll -Off service), separately by Single -Family, Multi - Family, and Commercial Customers, and separately for each type of Discarded Material.

B. Processing Facility Report

1. Approved Organic Materials Processing Facility: Contractor shall provide documentation demonstrating the actual percent of the material removed for landfill disposal that Is Organic Waste is less than the percent specified In 14 CCR Section 17409.5.8(c)(2) or 17409.5.8(c)(3), whichever is applicable, and, if applicable, demonstrations compliance with the digestate handling requirements specified In 14 CCR Section 17896.5.

2. Temporary Equipment or Operations Failure: If the Contractor is granted a Processing facility temporary equipment or operational failure waiver, in accordance with Section 5.11 of the Agreement, the Contractor shall include the following documents and information:
a. The number of days the Processing Facility temporary equipment waiver or operation failure waiver was in effect;
b. Copies of any notifications sent to the City pursuant to Section 5.11 of the Agreement, and copies of City notices to Contractor pursuant to Section 5.11 of the Agreement; c. Documentation setting forth the date of issuance of the waiver, the timeframe for the waiver; and,
d. A record of the Tons of Organic Materials, Recyclable Materials, and Solid Waste redirected to an Alternative Facility or Disposed at an Approved Disposal Facility as a result of the waiver, recorded by Collection vehicle or Transfer vehicle number/load, date, and weight.

3. Quarantined Organic Waste: A record of all compliance agreements for quarantined Organic Waste that are Disposed of, including the name of Generator, date issued, location of final disposition, and the amount of quarantined Organic Waste that was required to be Disposed at a Landfill, pursuant to Section 5.7 of the Agreement C. Compliance Monitoring and Enforcement Report

1. A summary of the total number of SB 1383 Regulatory non-compliance Complaints that were received and forwarded to the City or their designee.

2. The total number of Customer Notices and Contamination Processing Fees Issued, if any, categorized by type of Generator.

3. The number of violations that were resolved, categorized by type of Generator.

4. Copies of all Customer Notices issued, and educational materials issued to non -compliant April 2022 FINAL DRAFT Page 32
ctty of Pismo Beach / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement Generators.

D. Public Education and Outreach Report

1. A copy of all education and outreach materials provided to Generators, or otherwise used for education and outreach efforts in accordance with this Agreement, Including, but not limited to: flyers, brochures, newsletters, invoice messaging/billing inserts, and website and social media postings.

2. A record of the date and to whom the information was disseminated, or direct contact made, in the form of a list that includes: the Generator's name or account name, the type of education or outreach received; the distribution date, and the method of distribution.

3. For any mass distribution through mailings or bill Inserts, the Contractor shall maintain a record of the date, a copy of the information distributed, and the type and number of accounts that received the information.

4. A copy of electronic media, Including the dates posted for: social media posts, e-mail communications, or other electronic messages.

5. A summary of the status of the annual education plan of the reporting year, including actMities conducted and the quantitative and/or qualitative results of those activities.

6. The annual public education plan required by Section 6.10 of the Agreement for the upcoming then -current calendar year. For example, Contractor submittal of a 2021 annual report in February 2022 shall include Contractor submittal of the annual public education plan for calendar year 2022.

D.3,4 Additional Reports
A. Upon Request Reporting. City reserves the right to request additional reports or documents in the case of unforeseen legislative or regulatory changes, requests from CalRecycle, or additional requirements imposed upon the City. The Contractor shall provide the requested reports, documents, or information within ten (10) Business Days upon receipt of the request or within a timeframe determined by the City Manager, which shall not to exceed ten (10) days.

B. Facility Capacity Planning Information. To the extent such information is available to Contractor, City may require Contractor to provide City with information of available Organic Waste Processing capacity for any Approved Processing Facilities, where available capacity may include identification of monthly Tons of additional Organic Waste such Approved Facilities have the ability to receive within permitted limits. Contractor shall respond to City within sixty (60) days of City's request for information regarding available new or expanded capacity, to the extent such information is available to Contractor and, at City's option, may be required to submit reports on a more regular basis (such as monthly, quarterly, or annually). If Contractor uses a Subcontractor to perform some or all of the Facility -related services required by this Agreement, Contractor shall use commercially reasonable efforts to secure any City -requested Facility capacity planning information from its Subcontractor(s). The annual Facility capacity planning report shall comply with the following:

1. Include reports of current throughput and permitted capacity and available capacity for Organic Materials Processing for any Facility in the City that Processes Organic Materials. Existing capacity may include identification of monthly Tons of additional Source Separated Recyclable Materials, Source Separated Organic Materials, and/or April 2022 FINAL DRAFT Page 33

81, dO 81. 2OV
9£0-ZZOZ- J
Gty of Pismo Beads / South County Sanitary Service, Inc Second Amendment to Amended and Restated Solid Waste Collection Franchise Agreement Solid Waste capacity such Facility has the ability to receive within permitted limits.

2. Include description of potential new or expanded Processing capacity at those Facilities, operations, and activities for Processing of Organic Materials, including information about throughput and permitted capacity necessary for planning purposes.

3. Be submitted using a form or format approved by the City Manager.

April 2022 FINAL DRAFT Page 34