Rancho Cordova City Council
March 4, 2024

ITEM 18.2. ATTACHMENT 3
Rancho Cordova Municipal Code
Chapter 2.30 PLANNING COMMISSION

F. Perform other powers and duties as directed by the city council. [Ord. 2-2022 § 3 (Exh. A); Ord. 22-2021 § 3 (Exh. A)].

2.30.080 Rules.

The planning commission shall adopt, subject to city council approval, rules of procedure which shall govern the conduct of hearings and other business of the commission. Copies of the rules shall be published and shall be available with the city clerk’s office. [Ord. 2-2022 § 3 (Exh. A); Ord. 22-2021 § 3 (Exh. A)].

2.30.090 Organization.

At the initial meeting of the commission, and annually thereafter at the first meeting of the calendar year for the commission, the members of the commission shall select a chairperson and vice-chairperson and shall determine the time, place, and frequency of regular meetings. [Ord. 2-2022 § 3 (Exh. A); Ord. 22-2021 § 3 (Exh. A)].

2.30.100 Meetings.

The planning commission shall meet at least twice a month at a regularly scheduled time and date, and at other such times as the chairperson deems necessary to perform the duties of the commission. [Ord. 2-2022 § 3 (Exh. A); Ord. 22-2021 § 3 (Exh. A)].

2.30.110 Voting.

Four members of the seven-member planning commission shall constitute a quorum, and a quorum is required for the commission to take action on any item on its agenda. [Ord. 2-2022 § 3 (Exh. A); Ord. 22-2021 § 3 (Exh. A)].

2.30.120 Compensation.

A. Each member of the planning commission shall receive compensation for services as follows: Each member of the commission shall receive $75.00 compensation for each planning commission meeting attended, including regularly scheduled or special meetings.

B. The city may, at the discretion of the city manager, approve payment to a member for necessary and actual expenses incurred by a member acting in an official capacity as a member of the planning commission. [Ord. 2-2022 § 3 (Exh. A); Ord. 22-2021 § 3 (Exh. A)].

MEMORANDUM
City Council Staff Report - Page 1 of 1

ITEM 18.3.

DATE: March 4, 2024
TO: Honorable Mayor and Council Members
FROM: Albert Stricker, Public Works Director
Quoc Nham, Senior Civil Engineer
SUBJECT: A RESOLUTION APPROVING THE STREET NAME CHANGE OF

POOPENAUT COURT TO ARTIST POINT COURT IN THE SUNRIDGE

PARK COMMUNITY

RECOMMENDATION
Adopt the Resolution.

RESULT OF RECOMMENDED ACTION
Adoption of the Resolution would change the street name of Poopenaut Court to Artist Point Court.

BACKGROUND
Poopenaut Court, named after a valley and trail head in Yosemite National Park, was developed as part of the Sunridge Park Phase II Subdivision, recorded March 7, 2006, in Book 348 of Maps, at Page 1. Poopenaut Court is a public non-residential road providing access to the Saramento Municipal Utility District (SMUD) substation facility and an adjacent City stormwater detention basin. A vicinity map is included as Attachment 2.

At the January 16, 2024, City Council Meeting, the Council selected Artist Point Court as the replacement name for Poopenaut Court. Council's decision to change the street name of Poopenaut Court was publicly noticed beginning on Friday, February 9, 2024, for a period of ten days. If the Resolution is approved by Council, a new street name sign for Artist Point Court will be manufactured and installed by the end of April 2024.

FISCAL IMPACT AND FUNDING SOURCE
There is no fiscal impact.

ATTACHMENT(S)

1. Resolution

2. Vicinity Map

ITEM 18.3. ATTACHMENT 1
Resolution No. XX-2024 Page 1 of 1

CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE

OF CALIFORNIA, APPROVING THE STREET NAME CHANGE OF POOPENAUT COURT TO

ARTIST POINT COURT IN THE SUNRIDGE PARK COMMUNITY
WHEREAS, Poopenaut Court was developed as part of the Sunridge Park Phase II Subdivision, recorded March 7, 2006 in Book 348 of Maps, at Page 1; and WHEREAS, Poopenaut Court is a public non-residential road currently serving SMUD’s substation facility and the City’s stormwater detention basin; and

WHEREAS, at the January 16, 2024, Council Meeting, City Council was presented with five County approved street name options and selected Artist Point Court to replace Poopenaut Court; and
WHEREAS, pursuant to the Streets and Highways Code Section 970.5; Police, Fire, and the Post Office have concurred to changing the street name and the property owner(s) abutting Poopenaut Court or having a mailing address to Poopenaut Court have been notified by certified letter of the City’s intent.

NOW, THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA does approve changing the street name of Poopenaut Court to Artist Point Court in the Sunridge Park Community.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 4th day of March 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

David Sander, Mayor
Stacy Leitner, CMC
City Clerk

BORDERLANDS DR

CANYONLANDS DR

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VICINITY MAP OF

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Aerial Photo Date: March 2022

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GRANT LINE RD

LOCATION MAP
Path: X:\GIS_Staff\PROJECTS\PUBLIC_WORKS\DEVELOPMENT\PROJECTS\Poopenaut_Ct\Poopenaut Ct.mxd | Date: 1/29/2024 DETAIL
AREA
ITEM 18.3. ATTACHMENT 2

MEMORANDUM
City Council Staff Report - Page 1 of 2

ITEM 18.4.

DATE: March 4, 2024
TO: Honorable Mayor and Council Members
FROM: Ka Vang, Management Analyst
Stefan Heisler, Housing Manager
SUBJECT: A RESOLUTION APPROVING THE 2023 COMMUNITY

DEVELOPMENT BLOCK GRANT CONSOLIDATED ANNUAL
PERFORMANCE EVALUATION REPORT FOR SUBMITTAL TO U.S.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

RECOMMENDATION
Adopt the Resolution.

RESULT OF RECOMMENDED ACTION
The 2023 Community Development Block Grant (CDBG) Consolidated Annual Performance Evaluation Report (CAPER) would be submitted for U.S. Department of Housing and Urban Development (HUD) review according to CDBG program requirements and timelines.

BACKGROUND
The City receives an annual entitlement allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The City received $616,496 of CDBG funds in Program Year (PY) 2023. CDBG allows the City to carry out housing and community development projects and programs, such as housing rehabilitation, neighborhood infrastructure improvements, and public services, for low- and moderate-income individuals, households, and neighborhoods.

HUD requires an annual evaluation of the programs and projects funded through its CDBG grant allocation, known as the Consolidated Annual Performance Evaluation Report (CAPER).

The PY 2023 CAPER describes the City’s accomplishments in the implementation of programs and activities under the CDBG program. It also reports the progress of the City in meeting overall five-year goals and priorities identified as part of the 2020-2024 Consolidated Plan.

CDBG regulations require that the public be given a 15-day period in which to review the CAPER and provide comments prior to its approval by the City Council. A public notice announcing the availability of the CAPER was published in the Grapevine Independent on February 2, 2024, and copies of the CAPER were made available for public review at City Hall and on the City’s website. The public comment period closes on March 4, 2024, and any comments received will be acknowledged and incorporated in the final draft of the CAPER and submitted to HUD.

City Council Staff Report - Page 2 of 2

PY 2023 was the City’s fourth year of the 2020-2024 Consolidated Plan cycle. The City’s program is in good standing with HUD, and program administrators have continued to work on refining guidelines and procedures, assisting service providers to provide technical assistance in administering CDBG funds, and partnering with regional neighbors to improve efficiencies and identify best practices for program administration.

A summary of the accomplishments achieved in 2023 include:
• Helping 159 low-income households, including families at risk of homelessness, remain in their housing;
• Completing 5,379 code enforcement inspections of general properties in the CDBG target area;
• Conducting 4,091 inspections of rental units in the CDBG target area; • Providing social services and meals for 126 seniors in the community; • Completing 10 housing rehabilitation projects on homes occupied by low-income households; and
• Providing youth mentoring services to 189 at-risk youth.

FISCAL IMPACT AND FUNDING SOURCE
The CAPER has no direct fiscal impact on the City.

ATTACHMENT(S)

1. Resolution

2. Final Draft 2023 CAPER

ITEM 18.4. ATTACHMENT 1
Resolution No. XX-2024 Page 1 of 2

CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE OF CALIFORNIA, APPROVING THE 2023 COMMUNITY DEVELOPMENT BLOCK GRANT

CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT FOR SUBMITTAL TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the City of Rancho Cordova (City) has applied for and received Community Development Block Grant (CDBG) funds as an entitlement jurisdiction from the Government of the United States under Title I of the Housing and Community Development Act of 1974; and WHEREAS, the U.S. Department of Housing and Urban Development (HUD) is the federal agency that promulgates regulations and oversees the administration of the CDBG program; and
WHEREAS, HUD requires that entitlement jurisdictions complete an annual evaluation of their grants programs through a report known as the Consolidated Annual Performance and Evaluation Report (CAPER); and
WHEREAS, City staff have completed the 2023 CAPER; and
WHEREAS, a public notice announcing the availability of the CAPER and a 15-day public comment period for the report was published in the Grapevine Independent on February 2, 2024; and
WHEREAS, the 15-day public comment period did open February 19, 2024, and closed March 4, 2024, and the CAPER has been considered by the Rancho Cordova City Council.

NOW, THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA approves the 2023 CAPER; authorizes the City Manager, or his designee, to submit the CAPER to HUD; and authorizes staff to make technical modifications to the CAPER as required by HUD, and pending any public comment received prior to March 3, 2024.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 4th day of March 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ITEM 18.4. ATTACHMENT 1
Resolution No. XX-2024 Page 2 of 2
ATTEST:

David Sander, Mayor
Stacy Leitner, CMC
City Clerk

CAPER 1
City of Rancho Cordova
2023 Consolidated
Annual Performance
and Evaluation
Report (CAPER)
Community Development Block Grant
ITEM 18.4. ATTACHMENT 2

CAPER 2
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.

91.520(a)
This could be an overview that includes major initiatives and highlights that were proposed and executed throughout the program year.

Listed below are the approved projects and programs that were funded using the City’s 2023 CDBG allocation. These programs were selected through a competitive application process that occurred in July and August of 2022. Each project was selected to assist in carrying out the City’s CDBG priority needs, as identified in the 2020-2024 Consolidated Plan’s Strategic Plan section:
• $51,000 in funding was allocated for Code Enforcement ($25,500) services and the Rental Housing Inspection ($25,500) program, which provide health and safety code inspections for residential housing, businesses, and renter-occupied residential housing in the CDBG target area. • $47,214.43 ($22,214.43 in CV funds and $25,000 in EN funds) in funding was allocated to Meals on Wheels by ACC, a program that aids senior populations, including homebound seniors, by providing access to nutritious meals.
• $37,337.20 ($14,061 in CV funds and $23,276.20 in EN funds) in funding was allocated to Folsom Cordova Community Partnership to help support the Group Mentoring Initiative program. This program provides youth support and improves community involvement through intensive one-on-one and group youth mentoring.
• $31,237.20 ($20,000 in CV funding and $11,237.20 in EN funds) in funding was allocated to The Empowered Life Community Program to help support the SheBuilds program, supporting female youths from LMI households
• $10,000 in funding was allocated to Boys & Girls Clubs of Greater Sacramento for the Club Connect Program, which provides weekly kits to low-income youth and families that are in need of assistance. • $12,961 in funding was allocated to Sacramento Self-Help Housing for a renter’s helpline, which provides counseling and mediation services for landlord/tenant disputes for City residents in a housing crisis or dispute.
• $6,919 in funding was allocated to Sacramento Self Help-Housing for fair housing services, which includes advocacy, enforcement, mediation, and marketing and education materials. • $253,021.60 in funding was allocated to Rebuilding Together Sacramento for homeownership repairs through the Roof Rehab & Repair Program and the Critical Systems Home Repair program. • $10,000in funding was allocated to Rancho Cordova Food Locker for food recovery • $123,299.20 in funding was allocated to the City of Rancho Cordova’s Housing Division for the general administrative costs to facilitate and manage the CDBG program. Administrative costs include the management of monitoring efforts, assisting subrecipients of CDBG funds with information and ITEM 18.4. ATTACHMENT 2

CAPER 3
guidance on CDBG policies and procedures, planning for future CDBG goals and actions, and any other general administration activities involved in the implementation of the CDBG program. • $10,000 in funding was allocated to HOME Monitoring as City is recipient of State HOME funds and is required to perform annual monitoring on HCD’s behalf.

In May 2023, Sacramento Self Help Housing (SSHH) officially ceased its operations. Subsequently, the city, in collaboration with the Consortium, initiated a transition plan, exploring the utilization of 211 Connect. These measures were taken to seamlessly continue and extend support services that were previously provided by SSHH. The aim was to ensure minimal disruption and maintain assistance to our residents by the closure of SSHH. Additionally, during this time, the transition of Fair Housing, which was previously under SSHH, transitioned to Project Sentinel. Notably, Project Sentinel, a subcontractor for Fair Housing under SSHH, assumed full responsibility for Fair Housing operations.

Funds were allocated to the Rancho Cordova Food locker; however, no subsequent activity has occurred.

Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g)
Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.

Table 1, below, provides a detailed evaluation of the City’s individual programs and projects, and compares them to the goals identified in the 2023 Annual Action Plan (AAP) and the 2020-2024 Consolidated Plan.

ITEM 18.4. ATTACHMENT 2

CAPER 4
Project/Activity Agency/Operator Goal Funding Total Expenses Indicator Unit of Measure Goal 5 yr Plan
Act. 5 yr
Plan % Comp. Goal 2023
Act.
2023
%
Comp.

Planning and Administration - PA-23
Planning and
Administration City Staff Planning and Administration $103,081 $92,066.57 Successfully administered the
CDBG program according to HUD
regulations
Efficient
Administration NA NA NA
Planning and
Administration: Fair
Housing
Sacramento Self-Help
Housing (Now Project
Sentinel)
Homelessness
Prevention $6,919 $3,634.66 Public Services Low/Mod Housing Benefit Household Housing
Unit NA NA NA
Planning and
Administration: HOME
Monitoring
City Staff Planning and
Administration $10,000 $0 Monitoring City’s State HOME project Review Completion NA NA NA Public Services - PS-23
Homelessness Prevention - Households and Housing Units 2,100 1184 56% 445 159 35% Renters Helpline
Sacramento Self-Help
Housing (Now 211
Connect)
Homelessness
Prevention $12,961 $2,930.92 Public Services Low/Mod Housing Benefit Household Housing
Unit 445 159 35%
Senior and Disability Services - Persons Assisted 500 884 176.8% 95 126 132.2% Senior Nutrition Program Meals on Wheels Senior and Disability Services $47,214.43 $47,214.43 Public Services other than Low/Mod Housing Benefit Persons Assisted 95 126 132.2% Child and Youth Services - Persons Assisted 1,000 1,678 167.8% 1,690 189 11.18% Group Mentoring
Initiative
Folsom Cordova
Community Partnership Youth Services $37,337.20 $33,788.99 Public Services other than Low/Mod Housing Benefit Persons Assisted 150 53 35% The Empowered Life
Community Program SheBuilds Youth Services $31,237.20 $31,237.20 Public Services other than Low/Mod Housing Benefit Persons Assisted 40 33 82.5% Club Connect Program Boys & Girls Clubs of
Greater Sacramento Youth Services $10,000 $10,000 Public Services other than Low/Mod Housing Benefit Persons Assisted 200 103 51.5% Food Bank Rancho Cordova Food
Locker Unknown $10,000 $0 Public Services other than Low/Mod Housing Benefit Persons Assisted 1,300 0 0% Housing Preservation Program HP-23
Housing Preservation - Code Cases and Inspections 5,000 27,128 542.56% 5,000 9,470 189.4% Code Enforcement City Staff Housing
Preservation $25,500 $25,500
Housing Code
Enforcement/Foreclosed Property
Care
Code Cases 2,500 5379 112%
Rental Housing
Inspection Program City Staff Housing Preservation $25,500 $25,500 Housing Code
Enforcement/Foreclosed Property
Care
Code Cases 2,500 4091 163.64%
Housing Preservation - Housing Units 70 70 100% 9 10 111% Critical Repair Program Rebuilding Together
Sacramento
Housing
PreservationHomeless
Prevention
$253,021.60 $253,021.60 Homeowner Housing Rehabilitated Household Housing Unit 9 10 111%
Public Infrastructure PI-23
Public Infrastructure - Persons Provided Improved Access 30,000 51,760 173% 1 1 100% ITEM 18.4. ATTACHMENT 2

CAPER 5
Project/Activity Agency/Operator Goal Funding Total Expenses Indicator Unit of Measure Goal 5 yr Plan
Act. 5 yr
Plan % Comp. Goal 2023
Act.
2023
%
Comp.
2023 ADA Side Walk
Improvement Project Public Works Public Improvements $100,000 $9,390 Public Facility or Infrastructure Activities for Low/Moderate
Income Housing Benefit
Low-income Area 2000 0 0
Table 1 - Accomplishments – Program Year & Strategic Plan to Date ITEM 18.4. ATTACHMENT 2

CAPER 6
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

The 2023 program year was the fourth year of the 2020-2024 Five Year Consolidated Plan. The 2020-2024 Consolidated Plan identifies the following nine goals and priorities for projects that the City intends to fund through CDBG allocations during the plan’s five-year cycle. Those goals are as follows:
• Homelessness Prevention • Public Infrastructure • Public Facilities • Senior and Disability Services • Homeless Housing • COVID-19 Preparation, Prevention, and Response • Child and Youth Services • Housing Preservation Program • Program Administration CDBG-funded programs in the 2023 program year aligned with six of the nine goals that are outlined in the 2020-2024 Consolidated Plan. The six goals supported in 2023 were Homelessness Prevention, Senior Services, Child and Youth Services, Public Infrastructure, Housing Preservation Program, and Program Administration. Table 1 above shows these goals and their associated projects in more detail, along with the one-year progress against the five-year goals established in the Consolidated Plan.

ITEM 18.4. ATTACHMENT 2

CAPER 7
CR-10 - Racial and Ethnic composition of families assisted.

Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)
Race CDBG %
White 1274 41.17%
Black or African American 543 17.55%
Asian 337 10.89%
American Indian or American Native 52 4.91%
Native Hawaiian or Other Pacific Islander 19 0.61%
American Indian or American Native and White 35 1.13%
Black or African American and White 63 2.03%
Asian and White 28 .90%
American Indian or American Native and Black/African American 16 0.51% Other Multi-Racial 727 23.49%
Total 3,094 -
Hispanic 555
Not Hispanic 1,364
Table 2 – Table of assistance to racial and ethnic populations by source of funds Narrative
The table above shows the racial and ethnic distribution of persons who received assistance or services through the regular entitlement CDBG program during the 2023 program year.

The City strives to make all of its programs and activities available to eligible low- and moderate-income residents regardless of sex, race, religious background, or disability. All of the CDBG-funded public service programs, including senior services, youth services, and housing counseling, are available to residents citywide. Projects that focus on facility or infrastructure improvements are generally limited to the CDBG target area so they may benefit as many low- and moderate-income residents as possible.

ITEM 18.4. ATTACHMENT 2

CAPER 8
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program
Year
CDBG public - federal 764,909.66 749,615.81
Other public - federal 861,317 856,781.64
Table 3 - Resources Made Available
Narrative
• In the 2023 program year, the City received an award of $616,496 and $148,413.66 in rollover funds. The following is a list of 2023 City CDBG programs and approved allocation amounts:
• Planning and Administration
o Planning and Administration – $123,299.20
o SSHH: Fair Housing Services – $6,919
o HOME Monitoring - $10,000
• Housing Preservation Program
o Rental Housing Inspection Program – $25,500
o Code Enforcement – $25,500
o Housing Repair – $253,021.60
• Non-Housing Community Development Needs
o Public Infrastructure and Facilities
Rancho Cordova Food Locker Food Recovery– $10,000
o ADA Side Walk - $100,000
• Public Services
o Folsom Cordova Community Partnership: Group Mentoring Initiative – $37,337.20 o Meals on Wheels: Senior Nutrition – $47,214.43
o SSHH: Renters Helpline – $12,961
o SheBuilds – $31,237.20
o Boys & Girls Clubs of Greater Sacramento: Club Connect Program – $10,000 All recipient and subrecipient programs performed according to CDBG Laws and Regulations, found in the Federal Code of Civil Procedure, 24 Code of Federal Regulations (CFR) Part 570 Community Development Block Grants. In addition to all laws and regulations, the City and its subrecipients have made regular drawdowns and completed quarterly reports. All projects, aside from the ADA Sidewalk Improvement project, were completed during the program year, and all projects were completed within their allocated budget. The City has met timeliness requirements every year since becoming an entitlement jurisdiction.

ITEM 18.4. ATTACHMENT 2

CAPER 9
Identify the geographic distribution and location of investments Target
Area
Planned
Percentage
of
Allocation
Actual
Percentage
of
Allocation
Narrative Description
CDBG
Target
Area 82 76
Rental Housing Inspection, Code Enforcement, Critical
Repairs projects take place in the CDBG target, Rancho
Cordova Food Locker, ADA Sidewalk Program.

Citywide 18 24
Sacramento Self Help Housing (now 211 Connect),
USNRG, Meals on Wheels, Folsom Cordova Partnership,
Boys and Girls Club
Table 4 – Identify the geographic distribution and location of investments.

Narrative
For the 2023 program year allocation, approximately 76 percent ($468,536.96) was spent on activities in the CDBG target area (net administration expenses).

Geographic distribution of activities is widely varied, but most activities take place in or near low- or moderate-income areas. The location of an activity largely depends on the type of activity. Some of the City’s 2023 CDBG activities, such as Meals on Wheels and SSHH’s Renter’s Helpline, are able to serve populations across the entire City, while other projects and programs are located and provided to populations in the CDBG target area. The primary geographic area identified for use in CDBG-funded activities is the CDBG target area, which is made up of census tracts in which more than 50 percent of households earn less than 80 percent of area median income (AMI).

The Rental Housing Inspection program and Code Enforcement activities, funded by CDBG, take place in the City’s designated CDBG target areas, as seen in Map 1 below The investment of other public and private funds in these areas will provide a comprehensive approach to revitalization.

As shown in Map 1, much of the City, including many residential neighborhoods, is in the CDBG target area. This allows for a significant percentage of the annual CDBG allocation to be focused in these lowmoderate income areas of the City.

ITEM 18.4. ATTACHMENT 2

CAPER 10
MAP 1
ITEM 18.4. ATTACHMENT 2

CAPER 11
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

Federal funds require additional regulation, labor compliance standards, and administration that can add a significant cost burden to a new affordable housing project or a rehabilitation project. For new construction and large-scale rehabilitation of affordable housing, the City prefers to pursue funding that does not significantly increase the building cost, unless there are sufficient federal funds to benefit the project’s bottom line. The CDBG allocation to the City does not add sufficient value to offset the increased costs for most of the City's affordable housing development efforts. Therefore, the City focuses CDBG funding either on projects that are already burdened with the federal reporting requirements or on projects where there is no other viable funding source and the project can be completed with the available CDBG funding.

The City’s CDBG program does not have any match requirements. The City has pursued State of California housing funds whenever appropriate and will continue to look for opportunities to leverage private and non-federal resources. The City will also begin to require that CDBG subrecipients demonstrate sufficient committed non-CDBG funding, so that projects will have the best results for the community and the low- and very low-income residents they are intended to serve. Sources may include tax credits, infrastructure infill grants, sustainable community grants, veterans housing grants, and, for the single-family owner-occupied housing rehabilitation program, CalHome funding.

The City did not utilize publicly owned land or property to address the needs identified in the 2023 Annual Action Plan.

ITEM 18.4. ATTACHMENT 2

CAPER 12
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 0 0
Number of Non-Homeless households to be
provided affordable housing units 0 0
Number of Special-Needs households to be
provided affordable housing units 0 0
Total 0 0
Table 5 – Number of Households
One-Year Goal Actual
Number of households supported through
Rental Assistance 0 0
Number of households supported through
The Production of New Units 0 0
Number of households supported through
Rehab of Existing Units 0 0
Number of households supported through
Acquisition of Existing Units 0 0
Total 0 0
Table 6 – Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

In the 2023 program year, the City continued to address its affordable housing needs in a variety of ways. For example, the City’s partnership with Rebuilding Together Sacramento made it possible for income-qualified residents to receive health and safety repairs to their homes. These residents might otherwise not have a habitable home, which could lead to homelessness. The repair program also contributes toward the continued preservation of the existing stock of affordable housing, a high priority goal identified in the 2020-2024 Consolidated Plan. This program successfully repaired 8 homes within ITEM 18.4. ATTACHMENT 2

CAPER 13
the CDBG target area.

The City also preserves affordable housing through code enforcement and rental inspection efforts, which ensure that all rental housing is safe and habitable. The continued success of the Rental Housing Inspection and Code Enforcement programs, run by the City’s Neighborhood Services Division, is largely because of the funding and technical assistance received through the CDBG program.

Discuss how these outcomes will impact future annual action plans.

The City plans to address housing needs, but without significant additional resources, the City will continue to focus CDBG dollars where they will do the most good for low- and moderate-income households through better access to affordable housing, services, and public infrastructure.

The City’s plan for the 2023 program year is to continue cooperating and actively engaging the County of Sacramento in its attention to homelessness issues, including chronic homelessness and near homelessness. The City will continue to contract with 211 Connect (previously SSHH) to provide housing counseling and homelessness prevention to Rancho Cordova residents. For anyone that wishes to learn more information about 211 Connect, information is accessible to Rancho Cordova residents at https://www.21.org/, by telephone, and by walk-in appointment.

Due to the continued success of Rebuilding Together Sacramento’s Critical Systems Repair project, the City will continue to fund this program in the 2024 AAP. This program has proven to be effective in assisting low-income individuals with housing repairs and directly benefiting individuals who lack alternative options to housing improvements. Additionally, this organization continues to abide by CDBG reporting and reimbursement procedures, which is a beneficial aspect to the administration costs of the CDBG program.

With 2023 program funds, the City allocated $51,000 to the two City-run Neighborhood Services projects: the Rental Housing Inspection program and Code Enforcement. These programs were able to exceed their planned goals for the program year and provide the CDBG target area with blight and nuisance prevention, along with assistance in mitigating rental housing unit dilapidation and safety problems. The City has phased out these two programs for the 2024 program year. However, blight, nuisance prevention, and mitigation of rental housing unit is still carried out in the CDBG target area by other funds.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Number of Households Served CDBG Actual % Total
Extremely Low-income 274 56.61%
Low-income 123 25.41%
Moderate-income 58 11.98%
Non-Low/Moderate Income 29 5.99%
ITEM 18.4. ATTACHMENT 2

CAPER 14
Total 484 0
Total Low-to-Moderate Income
Persons served 455 94%
Table 7 – Number of Households Served
Narrative Information
Income categories for the CDBG program are set through the HUD Metro Fair-Market-Rate Area (HMFA) formula. HUD adjusts this formula each year to address inflation and changes in household costs. The CDBG requirement is that a minimum of 70 percent of all CDBG recipients must be low to moderate income. The HMFA for Sacramento-Roseville-Arden Arcade, CA Metro Area in the 2023 program year was $113,900 for a family of four; since 80 percent of HMFA is considered low income, this calculates to $85,750 for a family of four. All persons assisted with CDBG-funded programs are required to provide income data to identify which category they fit: extremely low income (30 percent or less of HMFA), low income (31-50 percent of HMFA), moderate income (51-80 percent of HMFA), or above moderate income (81+ percent of HMFA). About 95 percent of persons assisted through CDBG funds were low- to moderate-income individuals.

Our Housing Element identifies housing solutions that solve local housing problems. It includes goals, policies, and actions to ensure development in affordable housing for families, individuals, and persons of disability. Our Consolidated Plan five-year strategy also identifies the need for affordable housing as a priority. The City of Rancho Cordova is successful at finding and applying alternative funding for past and future affordable housing projects. The Crossings at New Rancho and Crossings at Woodberry are projects that provide housing for low-income to extremely low-income households. A percentage of the housing units must be able to convert for a person with a disability. The Mather Veterans Village is another project built to meet the demand for affordable housing for veterans and those with a disability. These projects highlight the City’s continued commitment to ensure affordable housing for all.

ITEM 18.4. ATTACHMENT 2

CAPER 15
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City established a set of strategies and priority actions to expand homeless services and provide supportive housing opportunities to elderly persons, disabled veterans, and other persons with special needs. Since CDBG funding fluctuates from year to year, the City is seeking additional funding for programs and services aimed at assisting homeless persons and non-homeless special needs populations to supplement funding of current programs.

In May 2023, Sacramento Self Help Housing (SSHH) officially ceased its operations. Subsequently, the city, in collaboration with the Consortium, initiated a transition plan, exploring the utilization of 211 Connect. These measures were taken to seamlessly continue and extend support services that were previously provided by SSHH. Additionally, during this time, the transition of Fair Housing, which was previously under SSHH, transitioned to Project Sentinel. Notably, Project Sentinel, a subcontractor for Fair Housing under SSHH, assumed full responsibility for Fair Housing operations.

During the 2023 program year, the City continued its relationship with SSHH (now 211 Connect) to assist homeless and special needs populations. SSHH (211 Connect) provides vital homelessness prevention services and resources to individuals and families who are at imminent risk of homelessness due to housing discrimination and/or landlord disputes. SSHH (211 Connect) also provides a Renters Helpline, as well as Housing Counseling, to help with landlord/tenant disputes and housing discrimination cases. A collaborative approach previously between SSHH (211 Connect) and Project Sentinel provides a telephone hotline, tenant education and housing assistance, and mediation services for Rancho Cordova residents in a housing crisis or dispute. The SSHH (211 Connect) team deals directly with concerns about landlord/tenant disputes while fair housing issues are identified and referred to Project Sentinel. The collaborative team aims to reduce housing discrimination, promote public awareness of fair housing laws and rights, and assist persons with disabilities, and to protect residents in danger of homelessness.

Addressing the emergency shelter and transitional housing needs of homeless persons The City participates in the regional Continuum of Care (CoC) through the nonprofit Sacramento Steps Forward (SSF). SSF manages the Sacramento Area CoC process, which establishes a set of strategies and priority actions to expand the City’s homeless programs and services and provide supportive housing opportunities and services. The CoC is working on several system updates to improve the flow of shelters and transitional housing, which includes policy and process improvement for the County shelters, lower barriers to housing programs, and improvement to placements into the different housing services offered in the region. Rancho Cordova is also home to the Mather Community Campus, a ITEM 18.4. ATTACHMENT 2

CAPER 16
transitional living facility that supports homeless individuals and families and includes job training, as well as housing and supportive services. The City also coordinated with the County, Mather Veterans Administration Hospital, and a competitively selected nonprofit development team to develop a comprehensive range of housing opportunities for homeless, near-homeless, and disabled veterans.

None of these efforts are funded through CDBG and are all supported through other funding sources and staff time.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The City contracts with SSHH (now 211 Connect) to provide counseling to low-income households who are at risk of becoming homeless. This program is intended to prevent homelessness, and the counseling helps individuals and households to maintain housing stability. Clients receiving services from SSHH also include those discharged from public institutions. Sacramento Steps Forward’s Coordinated Access System (CAS) serves as the foundational framework for accessing shelter and crucial resources within the region. SSHH also provides assistance to tenants facing relocation as the result of the sale or dilapidation of their housing or other catastrophe. Residents can also call the Renters Helpline at (916) 498-1000 or 211 and get access to homeless and homelessness prevention services. Through a collaborative approach between SSHH and Project Sentinel, the City is able to help facilitate the provision of a telephone hotline, tenant education, housing assistance, and mediation services for Rancho Cordova residents in a housing crisis or dispute.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The City refers individuals to housing counseling providers that keep a detailed database of housing resources that are available to homeless and near-homeless residents. Rancho Cordova is home to the Mather Veterans Village, which provides transitional and permanent supportive housing specifically for homeless and near-homeless veterans in the region. The Mather Community Campus provides units as both a permanent and transitional living facility, as well as offering job training and supportive services for homeless individuals and families to prevent repeated patterns of homelessness. The City does not receive enough in CDBG funds to support these projects solely through the CDBG program and relies on coordination with other agencies and nonprofits as well as alternative funding sources to support these ITEM 18.4. ATTACHMENT 2

CAPER 17
projects.

Additionally, the City’s 2021-2029 Housing Element identifies a specific policy to remove potential constraints to housing for persons with disabilities:
• H.3.3 – Provide housing for special needs populations, including housing accessible for persons with disabilities (including veterans as a primary target group), persons with development disabilities, large households, people experiencing homelessness, farmworkers, and , and singleparent households.

Projects such as the Mather Veterans Village work to address underserved needs of individuals in the City with disabilities and other special needs. Concurrently, goals and policies in the Housing Element, such as the one mentioned above, work to break down barriers to affordable housing among these same populations.

ITEM 18.4. ATTACHMENT 2

CAPER 18
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The City does not own any public housing; however, the local public housing authority, Sacramento Housing and Redevelopment Agency (SHRA), manages 63 public housing units across 11 properties complexes and several single-family homes throughout the City. Additionally, there are 522 affordable housing units of various sizes (1, 2, 3, and 4 bedrooms) in the City, financed by SHRA. The 2020-2024 Consolidated Plan does not include plans to construct or operate public housing.

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
While the City is dedicated to increasing community outreach and involving neighborhoods in the decision-making process, the City does not plan to participate in any activities to increase resident involvement in SHRA-owned and -operated public housing unless specifically asked to do so by SHRA.

Actions taken to provide assistance to troubled PHAs
SHRA has a Satisfactory Participation Score with HUD.

ITEM 18.4. ATTACHMENT 2

CAPER 19
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) The City has undertaken a number of actions to reduce potential barriers and constraints to affordable housing and housing for special needs populations. These actions include identifying funds in support of affordable housing development and offering fee reductions, regulatory incentives, density incentives, and the operation of a home rehabilitation and repair program, as well as several other options. Details of these actions can be found in the City’s 2021-2029 Housing Element. The Housing Element includes a thorough analysis of governmental and regulatory barriers to affordable housing. The City has been aggressive in pursuing affordable housing development opportunities and has removed regulatory barriers.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The need for affordable housing for lower-income households and supportive housing for persons with special needs continues to exceed available resources. The City has provided services, discussed previously in the Homeless and Other Special Needs narrative, and has worked to offer housing opportunities to underserved groups, including homeless individuals and veterans with disabilities. The City continues its active participation in County, Mather Veterans Administration Hospital, and service provider efforts to locate and develop a continuum of housing opportunities for disabled veterans.

The City has continued its work with neighboring jurisdictions, such as the County of Sacramento, City of Sacramento, City of Citrus Heights, and City of Elk Grove, and agencies such as SHRA and the Sacramento Area Council of Governments, to address the regional issues that affect the needs of targetincome persons and special needs populations. The goal in this effort is to reduce the burden of providing services within each jurisdiction with CDBG funding. The City has worked directly with service providers and local, state, and federal agencies (e.g., HUD and the California Department of Housing and Community Development).

The City also plans to use its CDBG funds to promote the local provision of services for low- and moderate-income residents in Rancho Cordova. Furthermore, the City will encourage area service providers to offer services in the community. In the 2023 program year, several organizations (including 211, Project Sentinel, Meals on Wheels, and Folsom Cordova Community Partnership) are being funded with CDBG funds and continuing to provide services in Rancho Cordova.

The City addressed the worst-case housing needs of persons with disabilities through activities that serve the City generally. The City funded the Renters Helpline, Housing Counseling, Code Enforcement, Rental Housing Inspection Program, and Critical Repair Program during the 2023 program year:
• Renters Helpline responds to requests from Rancho Cordova residents in danger of becoming homeless.
• Homeless Prevention is facilitated through Sacramento Steps Forward’s Coordinated Access System ITEM 18.4. ATTACHMENT 2

CAPER 20
(CAS), which provides counseling and support services to residents at risk of homelessness or to homeless persons to aid them in securing housing.
• Code Enforcement identifies health and safety violations present in single-family housing. • Rental Inspection Program inspects rental units for health and safety violations. • Critical Repair Program provides home repairs to single-family homeowners.

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) The City works with a certified lead-based paint inspector to identify lead-based paint hazards when necessary. This inspector is qualified to conduct lead-based paint identification, assessment, and clearance services to reduce lead hazard.

The City complies with the Residential Lead-Based Paint Hazard Reduction Act of 1992 as implemented in 24 CFR 35 Subpart B. Compliance includes the following strategy:

Housing Rehabilitation: All housing rehabilitation activities funded under this plan will assess lead hazard risk before proceeding, including the planned Emergency Repair Grant Program. This applies to any work on structures constructed prior to January 1, 1978. The work will comply with the appropriate level of protection indicated in 24 CFR 35.100. All work on homes constructed prior to January 1, 1978, will have a lead hazard risk assessment conducted as described in 24 CFR 35.110. At the completion of any prescribed lead hazard reduction activities, a clearance examination is required as described in 24 CFR

35.110.

When needed, Rebuilding Together Sacramento conducts lead-based paint inspections through a contractor.

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The City continues to fund public services intended to help poverty-level families. The City’s anti-poverty strategy is based on revitalizing Rancho Cordova’s existing housing stock to provide safe and decent places to live, and on supporting the services of social services agencies that promote income and housing stability. The City’s strategy also includes supportive services for target-income residents, including senior and youth services. For example, after the closure of SSHH the City funded 211 Connect for the second half of the 2023 program year, as 211 Connect provides vital services and resources to families who are homeless or are at imminent risk of homelessness, and Rebuilding Sacramento Together, a program that helps low-income homeowners rehabilitate necessary health- and safetyrelated issues in their homes in order to avoid homelessness due to habitability issues.

The City also continued to fund other anti-poverty programs, such as the Senior Nutrition program offered by Meals on Wheels and the Folsom Cordova Community Partnership’s Group Mentoring Initiative for Youth populations and their families. This latter program supports youth and enhances community involvement through intensive one-on-one youth mentoring to help improve economic opportunities for low-income youth in Rancho Cordova.

In November 2020, Rancho Cordova voters approved Measure R, a half-cent sales tax measure, which ITEM 18.4. ATTACHMENT 2

CAPER 21
will generate an estimated $12 million revenue for the City’s general fund. Funds may be used to attract jobs and address homelessness.

In November 2014, Rancho Cordova voters approved Measure H, a half-cent sales tax measure, which has generated revenue for the City’s general fund. The local fund is called the Community Enhancement Fund and provides funding for projects administered by individual residents, organizations, businesses, and community partners who are interested in enhancing the Rancho Cordova community. During the 2023 CDBG program year, there were several Community Enhancement Fund projects, many of which will reduce the number of poverty-level families. Projects include, but are not limited to, on-site youth career centers, senior nutritional support, youth meal services, food pantry improvements, home repairs, and a winter homeless shelter.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) The City developed a monitoring system to ensure that the activities carried out in furtherance of the AAP are done so in a timely manner in accordance with the federal monitoring requirements of 24 CFR 570.501 and 2 CFR 200 and all other applicable laws, regulations, policies, and sound management and accounting practices. The objectives of the monitoring plan are described in more detail in the Consolidated Plan.

The City’s Community Development Department is responsible for the management, implementation, and monitoring of Consolidated Plan documents, including the AAP and all other subsequent documents related to the implementation of the CDBG program.

City staff will administer the programs and activities funded with CDBG funds. These staff members will work with the individual City divisions, such as Public Works, as well as partner districts, such as Folsom Cordova Unified School District, to develop procedures and coordinate the administration of programs that will be carried out by these divisions. Designated staff will also work closely with the providers of CDBG-funded services and programs that are not carried out by the City.

Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
The City strives to provide training opportunities and technical assistance to grant subrecipients and works to establish best practices. The City’s goal is for all subrecipients to update their programs to integrate industry best practices into the day-to-day and long-term activities of programs. In addition, the City is continuing its initiative to coordinate activities with neighboring cities, especially in regard to responding to fair housing-related efforts. Coordinated efforts include joint monitoring of common service providers, standardizing reporting requirements and forms to encourage efficiency and consistency, and sharing information from workshops.

During the 2023 program year, the City implemented contracts with local service organizations that provide assistance to senior/elderly households, households at imminent risk of homelessness, and special needs populations. These subrecipients have all received CDBG funding in the past from the City.

City staff and City Council have realized the continued need for these services.

ITEM 18.4. ATTACHMENT 2

CAPER 22
The City will continue its work with neighboring jurisdictions, such as the County of Sacramento, City of Sacramento, City of Citrus Heights, and City of Elk Grove, and agencies such as SHRA and the Sacramento Area Council of Governments, to address the regional issues that affect the needs of targetincome persons and special needs populations. The City also intends to work directly with service providers and local, state, and federal agencies (e.g., HUD and the California Department of Housing and Community Development).

Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) On June 21, 2021, the City of Rancho Cordova adopted the 2021–2029 Housing Element. The Housing Element includes an analysis of vacant and underused land in the City that can be developed into housing for low-, moderate-, and above moderate-income housing. It also contains an analysis of potential governmental and nongovernmental constraints to housing development in the City as well as policies and goals the City should take to produce more affordable housing.

During the 2023 program year, the City partnered with SSHH to provide fair housing and landlord/tenant services. The City is also a partner in the Renters Helpline, a service offered by SSHH that is designed to determine if calls they receive represent a fair housing issue or a landlord/tenant or life crisis issue.

SSHH staff is trained to answer calls and make accurate determinations. In the City of Rancho Cordova, the Renters Helpline assisted 94 (SSHH) and 211 65 persons between January 1, 2023, and December 31, 2023.

The Analysis of Impediments report identified issues with disproportionate housing needs, segregation and integration, and access to opportunity for residents in the City of Rancho Cordova.

Disproportionate Housing Needs
A portion of new construction homes for sale in the city fall in the moderate price range compared to the region. The average market rate housing price per square foot in Rancho Cordova is cheaper than in Sacramento County. Future development of affordable housing will assist in resolving cost-burden and housing challenges for residents within the city. The city has set aside 120 acres of Regional Housing Needs Allocation (RHNA) sites to develop affordable housing projects.

On March 4, 2020, The City Council enacted a temporary moratorium on eviction to protect residential tenants in the city during COVID. This action prevented residents from being evicted and displaced due to income loss or health care cost from COVID. More recently, the city has responded to concerned residents regarding space rent increases at the eight mobile home parks in the city. A committee was created to assist with negotiation between the mobile home park owners, the mobile home park industry associations, and residents. A resolution was reached by all parties and the Mobile Home Space Rent Memorandum of Understanding (MOU) was created. The MOU will restrict how much annual space rents can increase annually, assist with dispute resolution, and provide resources for rent subsidy programs for low-income tenants.

ITEM 18.4. ATTACHMENT 2

CAPER 23
Segregation and Integration
The city launched a Workforce Development Program through our Economic Development Department.

The program offers free educational and training opportunities to Rancho Cordova residents who are unemployed, underemployed or want to upskill to compete for higher wage jobs. A continued partnership between the local food pantries and local businesses keeps donations flowing in to serve Rancho Cordova residents in need of food support.

Access to Opportunity
The city has four SacRT light rail stations, a SmarRT Ride shuttle service, and the Rancho CordoVan that offers multiple public transit routes to residents. The city’s newly built youth center will provide a safe environment and year-round programs for elementary and teenage students with a focus of equity and inclusion, mentorship, academic support, and sports activities. The Mills Crossing project is currently in development. It will include up to 120,000 square feet of affordable performing arts, health center, wellness, cultural and community space, retail, a maker space for entrepreneur opportunities, and up to 120 units of housing, of which 50% will be affordable. In 2023, the city earned the Prohousing Designation from California’s Department of Housing and Community Development. Garnering $960,000 from the one-time Prohousing Incentive Program (PIP). This funding is directed to predevelopment design activities for the affordable housing section of the Mills Crossing Project.

The city continues to improve sidewalks and rehabilitate streets in low-income and disadvantaged neighborhoods through the city’s American Rescue Plan Act (ARPA) funding.

ITEM 18.4. ATTACHMENT 2

CAPER 24
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
City staff communicated with the subrecipients’ staff responsible for each activity prior to the beginning of the program year. All subrecipients were informed of the obligations to collect the required information on income, household composition, and race and ethnicity. Staff provided technical assistance to subrecipients throughout the year as needed. During the 2023 program year, City staff performed desk monitoring to examine the progress the subrecipients were making toward performance targets. Subrecipients are required to report the demographics of their service population on a quarterly basis, as well as additional supporting information such as general ledger and program accounting documents. Each subrecipient agreement contains provisions for reductions to or suspensions of payments in the event that targets are not being met (without valid reason) or past performance issues have not been resolved.

The City has continued to emphasize the importance for subrecipients to gather complete and accurate information on the persons and/or households they serve, and to regularly report their progress.

The City requires all applicable CDBG subrecipients to comply with minority/women business enterprise (MBE/WBE) requirements when procuring their activities. This is written into their subrecipient agreements. At each year’s Notice of Funding Availability meeting, staff informs potential CDBG subrecipients that they will be subject to a monitoring every year that they receive CDBG funds.

Additionally, for all construction projects that require adherence to Davis-Bacon, staff conducts a labor compliance review to ensure the project’s procurement has followed MBE/WBE standards.

In October 2023, CDBG staff conducted a monitoring of the Meals on Wheels Senior Nutrition program.

This organization was found to be operating CDBG activities in accordance with HUD regulations and their subrecipient agreement. The City will continue to conduct ongoing desk monitoring on all CDBGfunded programs throughout the 2023 program year, as well as a monitoring of one subrecipient that will be selected at a later date. The CDBG program has successfully met expenditure deadlines in years past and is on target to meet its deadlines for the 2023 program year. The City is also current on quarterly and semi-annual reports due to HUD.

ITEM 18.4. ATTACHMENT 2

CAPER 25
Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

This report was made available for public review during a 15-day public comment period from February 19, 2024 to March 4, 2024.

A public notice announcing its availability was published in the Grapevine Independent and posted on the City’s website on February 2, 2024 The public notice included the purpose of the report, the premise of the CDBG program, information identifying the public hearing that will be held to approve of the CAPER, the address of City Hall, staff contact names, mailing addresses, phone numbers, the website to view the report, and information on where to direct comments and questions.

Copies of this CAPER were made available for public review and comment in electronic format found online on the City of Rancho Cordova’s website (www.cityofranchocordova.org). City Council approved the CAPER at a public hearing held on March 4, 2024.

The following is a summary of comments received from citizen participation:
• [Pending Comments]
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.
n/a
Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No
[BEDI grantees] Describe accomplishments and program outcomes during the last year.

ITEM 18.4. ATTACHMENT 2

CAPER 26
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.
n/a
Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No
[BEDI grantees] Describe accomplishments and program outcomes during the last year.

ITEM 18.4. ATTACHMENT 2

CAPER 27
CR-58 – Section 3
Identify the number of individuals assisted and the types of assistance provided Total Labor Hours CDBG HOME ESG HOPWA HTF
Total Number of Activities 0 0 0 0 0
Total Labor Hours 0
Total Section 3 Worker Hours 0
Total Targeted Section 3 Worker Hours 0
Table 8 – Total Labor Hours
Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers 0
Outreach efforts to generate job applicants who are Other Funding Targeted Workers. 0
Direct, on-the job training (including apprenticeships). 0 Indirect training such as arranging for, contracting for, or paying tuition for, off-site training. 0
Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching). 0
Outreach efforts to identify and secure bids from Section 3 business concerns.
0 Technical assistance to help Section 3 business concerns understand and bid on contracts. 0
Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns. 0
Provided or connected residents with assistance in seeking employment including: drafting resumes,preparing for interviews, finding job opportunities, connecting residents to job placement services. 0 Held one or more job fairs. 0
Provided or connected residents with supportive services that can provide direct services or referrals. 0
Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation. 0 Assisted residents with finding child care. 0
Assisted residents to apply for, or attend community college or a four year educational institution. 0
Assisted residents to apply for, or attend vocational/technical training. 0 Assisted residents to obtain financial literacy training and/or coaching. 0 Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns. 0
Provided or connected residents with training on computer use or online technologies. 0
Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses. 0 Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act.
0 ITEM 18.4. ATTACHMENT 2

CAPER 28
Other. 0
Table 9 – Qualitative Efforts - Number of Activities by Program Narrative
ITEM 18.4. ATTACHMENT 2

MEMORANDUM
City Council Staff Report - Page 1 of 2

ITEM 19.1.

DATE: March 4, 2024
TO: Honorable Mayor and Council Members
FROM: Albert Stricker, Public Works Director
Dalia Fadl, Principal Engineer
SUBJECT: PUBLIC HEARING TO RECEIVE PROTESTS TO THE PROPOSED STORMWATER UTILITY 1 FEE INCREASE AND A RESOLUTION TO

SUBMIT THE QUESTION TO A VOTE OF THE PROPERTY OWNERS
FOR APPROVAL OF THE PROPOSED STORMWATER UTILITY 1

FEE INCREASE

RECOMMENDATION
Hold a noticed public hearing to consider protests to the proposed Stormwater Utility 1 increase and, if a majority protest is not received at the Protest Hearing, adopt the Resolution to submit the question of the proposed Stormwater Utility 1 Fee increase to a vote of the owners of the property subject to the proposed fee increase for approval.

RESULT OF RECOMMENDED ACTION
If a majority protest is not received at the public hearing, adoption of the Resolution would authorize a special election, to be held solely by mail ballot, for the purpose of submitting the proposed Stormwater Utility 1 Fee Increase to a vote of the owners of parcels that are subject to the proposed Stormwater Utility 1 Fee Increase. The results of the ballot voting would be presented at the May 6, 2024, City Council Meeting.

BACKGROUND
The Stormwater Utility 1 (SWU1) Fee was created in 1995 in order to provide safety for the residents of the City, protect property in the City from damage associated with flooding, and meet the requirements of the National Pollution Discharge Elimination System (NPDES) permit.

It is necessary to design, construct, operate, maintain, improve and replace storm drainage facilities that collect storm and surface water runoff and convey and treat such runoff safely. It is also necessary to inspect, monitor, and take enforcement action related to illegal dumping, trash, and illicit discharges into the City's storm drain system.

The City of Rancho Cordova has over $120 million in deferred maintenance and replacement costs, including outdated pump stations, local flooding, and damaged and aging infrastructure.

Delay in addressing deferred maintenance will result in a growing maintenance backlog and an increased need to reactively address emergency conditions. Furthermore, the effort needed to comply with state and federal regulations continues to grow.

City Council Staff Report - Page 2 of 2

DISCUSSION
The SWU1 revenue is not adequate to support the City’s stormwater enterprise and, as a result, the stormwater utility fund has a growing deficit. In addition, inadequate revenues generated by the current SWU1 fee have necessitated the deferral of capital improvements to the storm drain system. Staff recommends an increase to the SWU1 fee to provide adequate funding for maintenance and capital improvements of stormwater infrastructure, addressing deferred maintenance, staying in compliance with state and federal regulations, and reducing the potential for future flooding.

A “Rate Analysis Report” was prepared by Harris & Associates and found that revenue generated by the current rate is not adequate to support the City’s stormwater enterprise. The analysis completed by the City found that the annual costs to maintain, replace, and improve the stormwater infrastructure in the SWU1 area is $8.9 million per year. This cost does not include unforeseen/emergency replacement cost: $70 million based on facilities built starting in the 1960s. The current SWU1 fee collects about $3.5-$4 million per year, a shortfall of approximately $5 million per year. Increasing the rate would reduce this gap and allow the City to provide a higher level of service to address deferred maintenance, decrease the potential for flooding, and comply with growing federal and state regulations.

At the December 4, 2023, City Council meeting, staff presented multiple fee options to the Council and received direction to move forward with a proposed annual rate of $156.79/Single Family Residential (SFR) with inflation starting in year six (6). The fee increase will be implemented over a five-year period, after which the fee will be increased annually based on the Consumer Price Index. The proposed fee schedule is summarized in the presentation.

On February 1, 2024, City staff conducted a public meeting to provide property owners another opportunity to gain information, ask questions and voice concerns. On February 5, 2024, City Council opened the protest hearing and continued the item to the regularly scheduled City Council Meeting on February 20, 2024. On February 20, 2024, City Council again continued the protest hearing to the March 4, 2024, regularly scheduled City Council Meeting. Protests will be accepted until March 4, 2024.

In tonight’s action, the City will hold a noticed public hearing to consider protests to the proposed Stormwater Utility 1 increase and, if a majority protest is not received at the Protest Hearing, staff's recommendation is to adopt the Resolution to submit the question of the proposed Stormwater Utility 1 Fee increase to a vote of the owners of the property subject to the proposed fee increase for approval. The results of the ballot voting will be presented at the May 6, 2024, City Council Meeting.

FISCAL IMPACT AND FUNDING SOURCE
The proposed action will have no impact on the City's General Fund.

ATTACHMENT(S)

1. Resolution

2. Presentation

ITEM 19.1. ATTACHMENT 1
Resolution No. XX-2024 Page 1 of 8

CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE OF CALIFORNIA, FOR SUBMITTAL OF A STORMWATER UTILITY 1 FEE INCREASE TO

OWNERS OF REAL PROPERTY SUBJECT TO THE PROPOSED INCREASE AND

ADOPTING PROCEDURES FOR THE CONDUCT OF THE ELECTION
WHEREAS, revenues from the City’s existing Stormwater Utility 1 fee, which has not been increased since its adoption in 1995, are not sufficient to fund the ongoing operations, maintenance, repairs and capital improvements to the City’s storm drain system; and WHEREAS, Article XIIID of the California Constitution (“Proposition 218”) and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750, et seq.) requires the City to follow certain procedural and substantive requirements when proposing to increase property-related fees (as defined in Proposition 218), such as the City’s Proposed Increase to the existing Stormwater Utility 1 Fee (“Proposed Increase”); and WHEREAS, on December 4, 2023, the City Council adopted Resolution No. 166-2023 designating a time and place for hearing protests in connection with a proposed Stormwater Utility 1 Fee increase, approving procedures in connection therewith and taking certain other actions; and
WHEREAS, before increasing the existing Stormwater Utility 1 fee, the City Council must hold a noticed public hearing to consider protests to the Proposed Increase and, if a majority protest is not received at the public hearing, the City Council must submit the question of the Proposed Increase to a vote of the owners of the property subject to the Proposed Increase for approval; and
WHEREAS, in accordance with Proposition 218, the City Council held a duly noticed public hearing on the matter of the Proposed Increase on March 4, 2024, which is not less than 45 days after mailing the notice of the Proposed Increase to the record owners of each parcel subject to the Proposed Increase; and
WHEREAS, at the March 4, 2024, Protest Hearing, the City Council took testimony, both written and oral, regarding the proposed increase.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF RANCHO CORDOVA HEREBY FINDS, DETERMINES AND RESOLVES AS FOLLOWS:

SECTION 1. The City Council has:
(a) Heard and considered testimony from all persons who wished to be heard at the Protest Hearing;
(b) Heard and considered all objections, protests, or other written communications from any persons owning real property subject to the Proposed Increase; (c) Received and considered oral and documentary evidence pertaining to the Proposed Increase;
(d) Corrected minor defects, if any, in the proceedings.

ITEM 19.1. ATTACHMENT 1
Resolution No. XX-2024 Page 2 of 8
SECTION 2. The City Council determines that written protests have not been received from property owners representing a majority of the parcels subject to the Proposed Increase.

SECTION 3. The City Council hereby authorizes a special election, to be held solely by mail ballot, for the purpose of submitting the Proposed Increase to a vote of the owners of parcels that are subject to the Proposed Increase.

SECTION 4. The Council hereby calls a special election, to be held solely by mail ballot, for the purpose of submitting the Proposed Increase to a vote of the owners of parcels subject to the Proposed Increase. The date of the election shall be Friday, May 3, 2024. Ballots must be received by the City Clerk no later than 5:00 p.m. on Friday, May 3, 2024. Ballots will be opened and tabulated for public viewing in the Community Board Room located at 2729 Prospect Park Drive in the City of Rancho Cordova, on Monday, May 6, 2024, from 9:00 AM until completed.

SECTION 5. At the special election called by this resolution, the following measure shall be submitted to the property owners voting:

To improve, upgrade and maintain the storm drain system by:
• addressing deteriorating pipes, infrastructure, and sinkholes; • protecting drinking water sources (creeks & rivers) from pollutants; and • preventing local flooding due to insufficient capacity or condition.

Do you approve the 5-year stepped annual increase and the annual adjustment in year 6 and thereafter for inflation equal to the Consumer Price Index to the Rancho Cordova Stormwater Utility 1 Fee?
YES ______
NO ______
SECTION 6. The special election called by this resolution shall be conducted in accordance with procedures as set forth in the “Procedures For The Conduct Of A Protest Hearing And Vote Relating To A Proposed Increase To The Stormwater Utility 1 Fee”, attached hereto and incorporated herein by this reference; Exhibit A. No impartial analysis by the City Attorney shall be required, and no arguments for or against the Proposed Increase shall be filed.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova this 4th day of March 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
David Sander, Mayor

ITEM 19.1. ATTACHMENT 1
Resolution No. XX-2024 Page 3 of 8
ATTEST:
________________________________
Stacy Leitner, CMC
City Clerk

ITEM 19.1. ATTACHMENT 1

EXHIBIT "A"

PROCEDURES FOR THE CONDUCT OF A

PROTEST HEARING AND VOTE RELATING TO A PROPOSED
INCREASE TO THE STORMWATER UTILITY 1 FEE
The following Procedures have been adopted by the City Council of the City of Rancho Cordova for the purpose of conducting a protest hearing required by Article XIII D of the California Constitution for consideration of the proposed increase to the Stormwater Utility 1 Fee (the " Stormwater Utility 1 Fee").

TABLE OF CONTENTS
A. Written Report Page 1
B. Notice of the Protest Hearing on the Proposed
Increase to the Stormwater Utility 1 Fee Page 1
C. Eligibility to File a Protest Page 2
D. Submission of Written Protests Page 3
E. Conduct of the Public Hearing; Determination of A Majority Protest Page 3 F. Conduct Property Owner Vote; Determination of a Majority Protest Page 4 A. Written Report
The City shall cause to be prepared a written report ("Written Report"), which shall contain a list of all parcels to which the proposed increase to the Stormwater Utility 1 Fee will apply (the "Identified Parcels") and the amount of the proposed increase for each Identified Parcel for Fiscal Year 2024-25.

The Written Report shall be placed on file in the office of the City Clerk prior to the mailing of the Notice of Public Hearing on the Proposed Stormwater Utility 1 Fee and shall remain available for public inspection.

B. Notice of the Protest Hearing on the Proposed Stormwater Utility 1 Fee Notice of the protest hearing on the proposed increase to the Stormwater Utility 1 Fee shall be sent by first class mail at least forty-five (45) days prior to the date set for the protest hearing to

ITEM 19.1. ATTACHMENT 1

the Record Owner of each Identified Parcel. The forty-five (45) day requirement may be waived with the unanimous consent of the property owners.
"Record Owner" means the owner of an Identified Parcel whose name and address appears on the last Sacramento County equalized secured property tax assessment roll (the "Assessment Roll"), or in the case of any public entity, the State of California, or the United States, means the representative of that public entity at the address of that entity known to the City.

Notices shall be mailed to the Record Owners of the Identified Parcels, addressed to the names and addresses as they appear on the Assessment Roll, and, in the case of any public entity, the State of California, or the United States, addressed to the public entity at the address of that entity known to the City. In addition, notices shall be mailed to owners of the Identified Parcels, addressed to the names and addresses known to the City Clerk, if different than shown on the Assessment Roll.

Each mailed notice shall contain all of the following:
· A reference to filing of the Written Report;
· A reference to the proposed ordinance imposing the proposed increase to the Stormwater Utility 1 Fee;
· The amount of the proposed increase to the Stormwater Utility 1 Fee to be imposed upon the Identified Parcel covered by the notice;
· The basis upon which the amount of the proposed increase to the Stormwater Utility 1 Fee was calculated;
· The reason for the proposed increase to the Stormwater Utility 1 Fee; · The effect of a majority protest; and
· The date, time and location of a public hearing on the proposed increase to the Stormwater Utility 1 Fee.

The City Clerk, or the designee of the City Clerk, may certify the proper mailing of notices by an affidavit, which shall constitute conclusive proof of mailing in the absence of fraud.

Failure of any person to receive notice shall not invalidate the proceedings.

Notice of the filing of the Written Report and the public hearing shall be published once a week for two successive weeks in the Grapevine Independent, with the first publication at least fourteen (14) days prior to the date of the public hearing, and with at least five (5) days intervening between the first and second publications.

C. Eligibility to File a Protest
The Assessment Roll shall be presumptive evidence of ownership of an Identified Parcel for protest purposes.

ITEM 19.1. ATTACHMENT 1

If the owner of any Identified Parcel is not shown on the Assessment Roll, such owner may file a protest for such parcel by filing with the City Clerk a proxy from the Record Owner in a form satisfactory to the City Attorney or evidence of ownership satisfactory to the City Attorney. Any such proxy or evidence must be received by the City Clerk prior to the conclusion of the public hearing.

When an Identified Parcel is held by a partnership, as community property, in joint tenancy, or as a tenancy in common, any partner, spouse, joint tenant, or tenant in common, as the case may be, may file a protest for such parcel.

An executor, administrator, or guardian may file a protest for an Identified Parcel on behalf of the estate it represents. If such representative is shown on the Assessment Roll as paying taxes and assessments levied against the parcel, that fact shall establish the right of such representative to file the protest. If such representative is not shown on the Assessment Roll, the representative must file with the City Clerk written documentation satisfactory to the City Attorney establishing the legal representation. Any such documentation must be filed with the City Clerk prior to the conclusion of the public hearing.

When an Identified Parcel is held by a corporation or unincorporated association, a protest may be filed by any person authorized in writing by the board of directors or trustees or other managing body thereof to take such actions. The corporation or unincorporated association must file with the City Clerk written authorization satisfactory to the City Attorney. Any such written authorization must be filed with the City Clerk prior to the conclusion of the public hearing.

D. Submission of Written Protests
Written protests may be mailed (via U.S. mail) to the City Clerk at City Hall or delivered in person to the City Clerk at City Hall or at the public hearing.

No protests delivered via e-mail will be counted for purposes of determining whether a majority protest exists, but the City Council may, in its discretion, consider such protests in making determinations regarding the Proposed Stormwater Utility 1 Fee.

Each written protest must identify the property covered by the protest and be signed.

No protest received after the close of the public hearing shall be counted in determining the existence of a majority protest. The last pick up by the City Clerk of protests mailed or delivered to City Hall will occur up until the close of the Protest Hearing on March 4, 2024. To ensure that protests which are mailed or delivered to City Hall are received by the City Clerk prior to the close of the protest hearing, such protests must be received by the City Clerk at City Hall prior to 5:30 p.m. on the date scheduled for the protest hearing. The City Clerk shall endorse on each written protest the date it is filed with the City. The City Clerk shall identify any protests which are received after the close of the protest hearing.

Written protests may be withdrawn in writing at any time before the conclusion of the protest hearing by the person who submitted the written protest.

For purposes of determining whether a majority protest exists, only one protest for each Identified Parcel will be counted.

ITEM 19.1. ATTACHMENT 1

All written protests shall be considered public records.

E. Conduct of the Protest Hearing; Determination of a Majority Protest

1. At the time, date and place fixed for the protest hearing, the City Council shall:
(i) Hear a staff presentation pertaining to the proposed increase to the Stormwater Utility 1 Fee; and
(ii) Hear all persons interested in the matter of the proposed increase to the Stormwater Utility 1 Fee; and
(iii) Receive all written communications regarding the proposed increase to the Stormwater Utility 1 Fee.

2. The protest hearing may be continued from time to time, as the City Council determines is necessary to complete its consideration of the proposed increase to the Stormwater Utility 1 Fee.

3. If the City Council determines at the close of the protest hearing that written protests have been presented, and not withdrawn, by a majority of owners of the Identified Parcels (i.e., there is a majority protest), the proposed increase to the Stormwater Utility 1 Fee shall not be approved.

4. If the City Council determines at the close of the protest hearing that there is not a majority protest, the City Council may:
(i) Remedy and correct any clerical error in the Written Report or otherwise modify the Written Report; provided that any such modification or correction shall not result in an increase to the Stormwater Utility 1 Fee for any Identified Parcel which is greater than the amount shown in the notice of the protest hearing that was mailed to the Record Owner of the Identified Parcel; (ii) Confirm the Written Report, as originally filed or as amended in accordance with subparagraph (i), above;
(iii) Adopt an Ordinance amending Chapter 15.11 of the Municipal Code related to the Stormwater Utility 1 Fee, subject to voter approval; and
(iv) Adopt a resolution calling for a property owner vote regarding the proposed increase to the Stormwater Utility 1 Fee.

F. Conduct Property Owner Vote; Determination of a Majority Consent Pursuant to Government Code Section 53755.5(c), the proceedings described in this section shall not constitute an election or voting for purposes of Article II of the California Constitution or of the Elections Code.

An election on the proposed increase to the Stormwater Utility 1 Fee shall be sent by first class mail at least forty-five (45) days prior to the date set for the election to the Record Owner of each Identified Parcel. The forty-five (45) day requirement may be waived with the unanimous consent of the property owners.

ITEM 19.1. ATTACHMENT 1

Each mailed ballot shall contain all of the following:
• On the face of the envelope in which the notice of election and ballot are mailed, there shall appear in substantially the following form in no smaller than 16-point bold type:
“OFFICIAL BALLOT ENCLOSED.”
• The ballot shall include the agency’s address for return of the ballot, the date and location where the ballots will be tabulated, and a place where the person returning it may indicate his or her name, a reasonable identification of the parcel, and his or her support or opposition to the proposed fee. The ballots shall be tabulated in a location accessible to the public. The ballot shall be in a form that conceals its content once it is sealed by the person submitting it. The ballot shall remain sealed until the ballot tabulation commences.

No ballot received after the time of the ballot tabulation shall be counted in determining the existence of majority consent. The last pick up by the City Clerk of ballots mailed or delivered to City Hall will occur at 5:00 p.m. on one (1) business day preceding the date scheduled for the election. To ensure that ballots which are mailed or delivered to City Hall are received by the City Clerk prior to the commencement of the ballot tabulation, such ballots must be received by the City Clerk at City Hall prior to 5:00 p.m. on one (1) business day preceding the date scheduled for the ballot tabulation. The City Clerk shall endorse on each ballot the date it is filed with the City. The City Clerk shall identify any ballots which are received after the commencement of the ballot tabulation.

An impartial person designated by the City who does not have a vested interest in the outcome of the proposed fee shall tabulate the ballots submitted in support of or opposition to the proposed fee. An impartial person includes, but is not limited to, the City Clerk. If the City uses City personnel for the ballot tabulation, or if the City contracts with a vendor for the ballot tabulation and the vendor or its affiliates participated in the research, design, engineering, public education, or promotion of the fee, the ballots shall be unsealed and tabulated in public view to permit all interested persons to meaningfully monitor the accuracy of the tabulation process.

The ballot tabulation may be continued to a different time or different location accessible to the public, provided that the time and location are announced at the location at which the tabulation commenced and posted by the City in a location accessible to the public. The impartial person may use technological methods to tabulate the ballots, including, but not limited to, punch card or optically readable (bar-coded) ballots. During and after the tabulation, the ballots and, if applicable, the information used to determine the weight of each ballot, shall be treated as public records, subject to public disclosure and made available for inspection by any interested person.

The ballots shall be preserved for a minimum of two years, after which they may be destroyed.

Majority approval of the Record Owners shall exist if the number of valid ballots in favor of the fee exceeds the number of valid ballots in opposition to the fee.

At the time, date and place fixed for the ballot tabulation, the City Council shall direct the City Clerk to commence the ballot tabulation.

If there is no majority approval, the Stormwater Utility 1 Fee shall not be imposed.

If majority approval exists, the City Council may impose the increase to the Stormwater Utility 1 Fee pursuant to the Ordinance.

1 Stormwater Utility
Rate Assessment
March 4, 2024
ITEM 19.1. ATTACHMENT 2

2 PURPOSE-

FUNDING NEEDS
• Safety improvements: • Alleviate local flooding. • Storm Response. • Increasing Cost: • Aging facilities- growing costs because of deferred maintenance and repairs.
• Increased regulatory compliance requirements-
FEMA, State Water Board.
• Meeting Community Needs: • Expedited response to resident complaints and community needs.
• Need for robust outreach to community and
business owners.
• Need for capacity Improvements.
2 ITEM 19.1. ATTACHMENT 2

3 RESULTS OF
NOT

INCREASING

THE FEE
• $50 Million in identified improvements
(masterplan) will grow.
• $70 Million in replacement cost (based on
facilities built starting 1960s) will grow.
• Level of service will be impacted- increased
flood risk could affect emergency access and
movement of goods and services.
• Ability to react to extreme storm events/
atmospheric rivers will be impacted.
• More emergency response and reduced ability
for long range planning.
• Reduces resources to comply with state and
federal regulations.
• Increases legal liability.
3 ITEM 19.1. ATTACHMENT 2

4 Background
Stormwater Utility I (SWUI) • SWUI established in 1995 by Sacramento County. • SWU is an enterprise fund- revenues and expenditures are
segregated into a fund.

Can only be used for
stormwater program.
• No inflator/annual
adjustment.
• MAP of SWUI & SWUII
4 ITEM 19.1. ATTACHMENT 2

5 Proposed Rate & Options
Stormwater
Utility Rate FY23-24 Year 1FY24-25
Year 2
FY25-26
Year 3
FY26-27
Year 4
FY27-28
Year 5
FY28-29
Annual Fee $70.08 $82.39 $96.79 $113.69 $133.59 $156.79 Monthly
Fee $5.84 $6.87 $8.07 $9.47 $11.13 $13.06
Annual
Increase ($) $12.30 $14.40 $16.90 $19.90 $23.20
% increase 17.5% 17.5% 17.5% 17.5% 17.4%
DMU- Single Family Residential
ITEM 19.1. ATTACHMENT 2

6 Proposed
Motion &
Next Steps
Proposed MotionHold a noticed public hearing to consider protests to the proposed Stormwater Utility 1 increase and, if a majority protest is not received at the Protest Hearing, approve the resolution to submit the question of the proposed
Stormwater Utility 1 Fee increase to a vote of the owners of the property subject to the proposed fee increase for
approval.

Decision whether to implement the rate will be
voted on by the citizens.
 If majority protest is not received, authorize City Clerk’s office to mail ballots to property owners.
 Special Election- ballot tabulation May 6, 2024. Must receive more than 50% approval vote of those that cast
ballots to pass- simple majority.
 If over 50% approval is received, Apply new rate- July 2024.
6 ITEM 19.1. ATTACHMENT 2

MEMORANDUM
City Council Staff Report - Page 1 of 2

ITEM 20.1.

DATE: March 4, 2024
TO: Honorable Mayor and Council Members
FROM: Albert Stricker, Public Works Director
Steve Harriman, Public Works Division Manager
SUBJECT: A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT NO. 2024-33 WITH EITHER ATLAS DISPOSAL

INDUSTRIES OR ALLIED WASTE SERVICES OF NORTH AMERICA

FOR THE RESIDENTIAL SOLID WASTE SERVICES AND STREET
SWEEPING SERVICES CONTRACT BEGINNING JANUARY 1, 2025,
THROUGH DECEMBER 31, 2034

RECOMMENDATION
Select the preferred contractor for the Residential Solid Waste Services and Street Sweeping Services contract beginning January 1, 2025, and adopt the Resolution authorizing the City Manager to execute the contract with either Atlas Disposal Industries or Allied Waste Services of North America (Republic Services).

RESULT OF RECOMMENDED ACTION
Adoption of the Resolution would allow the City Manager to execute Contract No. 2024-33 with either Atlas Disposal Industries or Republic Services for the Residential Solid Waste Services and Street Sweeping Services contract beginning January 1, 2025.

BACKGROUND
The current contract with Republic Services for residential solid waste collection and street sweeping services expires on December 31, 2024. On January 17, 2023, the City Council directed staff to proceed with a competitive procurement process for a new contract beginning January 1, 2025. On June 28, 2023, the City released a Request for Proposals document and four proposals were received on September 15, 2023. On December 4, 2023, the proposal evaluation committee presented Atlas Disposal and Republic Services as the finalists to the City Council and recommended award of the new contract to Atlas Disposal. The City Council had a tie vote on December 4, 2023, with two council members voting for Atlas Disposal and two voting for Republic Services. The City Council directed both companies to submit best and final proposals, which were submitted to the City on January 5, 2024. Both Atlas Disposal and Republic Services will present their best and final offers to the City Council, which is intended to allow the Council to select the preferred contractor for the new contract beginning January 1, 2025.

FISCAL IMPACT AND FUNDING SOURCE

City Council Staff Report - Page 2 of 2

The draft franchise agreement includes an 8% franchise fee on collected revenue, which is projected to generate approximately $800,000 in annual payments to the City. The franchise fee revenue will increase during the contract term due to City growth and annual adjustments to service rates. The successful proposer will also pay the City $450,000 annually for road rehabilitation projects and $100,000 annually to partially fund a city recycling coordinator.

Finally, the successful proposer will pay $150,000 to the City within sixty (60) days of execution of the new agreement to cover the staff, consulting and legal costs incurred during the competitive procurement process.

ATTACHMENT(S)

1. Solid Waste Presentation

2. Resolution

3. Atlas Disposal Solid Waste Contract DRAFT

4. Allied Waste Services (Republic Services) Contract DRAFT

1 Residential Solid Waste,
Recycling and Street Sweeping
Procurement Update
MARCH 4, 2024
ITEM 20.1. ATTACHMENT 1

2 • The current contract with Republic Services for residential waste collection and street sweeping services expires on December 31, 2024.
• On January 17, 2023, the City Council directed staff to proceed with a competitive procurement process for a new contract beginning January 1, 2025.
• On June 28, 2023, the City released an RFP inviting proposals for a new contract.
• Four proposals were received on September 15, 2023.

Introduction
ITEM 20.1. ATTACHMENT 1

3 • On December 4, 2023, the proposal evaluation committee presented Atlas Disposal and Republic Services as the finalists to the City Council and recommended award of the new contract to Atlas Disposal.
• The City Council had a 2-2 vote on December 4, 2023.
• The City Council asked both companies to submit best and final offers for further consideration, which were received by the City on January 5, 2024.

Introduction (continued)
ITEM 20.1. ATTACHMENT 1

4 • Staff presentation summarizing best and final offers • 10-minute presentations from Atlas and Republic
• Receive public comment
• Staff recommendation is for the City Council to adopt a resolution authorizing the city manager to execute a final contract with either Atlas Disposal or Republic Services.

Agenda for Tonight
ITEM 20.1. ATTACHMENT 1

5 New Agreement Summary
• 10-year term with possible extensions (1/1/25 – 12/30/34) • Weekly garbage and mixed organics collection, including food waste • 32, 64 and 96-gallon trash cans available. “Bundled” customer rates are dependent on the trash can size and include all programs and services • Biweekly commingled recycling collection
• Curbside collection of oil, filters, sharps and household batteries and holiday trees
• Bulky item collection (3X per year at 10 yards each), with processing of collected materials to recover recyclable and reusable materials • Garbage, recycling and mixed organics collection at City facilities at no cost to City
ITEM 20.1. ATTACHMENT 1

6 New Agreement Summary (continued)
• Garbage, recycling and porta-potty services at 10 City events per year at no cost to City (4th of July, iFest, etc.)
• Billing, customer service and public education
• Street sweeping (14 sweeps per year on residential streets) • 40% minimum “diversion” rate with liquidated damages for noncompliance
• 2,000 cubic yards per year of illegal dumping collection at no cost to City
• New compressed natural gas collection vehicles by July 1, 2026 (within 18 months of start of new contract)
ITEM 20.1. ATTACHMENT 1

7 Comparison of 10-Year
Total Proposed Resident Payments To Waste Haulers
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
Republic
Presented to
Council 12/4/23
w/o sweeping Atlas Republic
Atlas
Republic
Atlas
$101M $102.3M
Original proposals
w/sweeping revenue
$108.2M $106M $104.4M$104.1M
ITEM 20.1. ATTACHMENT 1

8 Comparison of 10-Year
Total Proposed Resident Payments To Waste Haulers
Best and Final Offers
$104.4M $104.1M
Atlas Republic
ITEM 20.1. ATTACHMENT 1

9 Comparison of Bi-Monthly Rates with Street Sweeping
Best and Final Offers
Service Level Atlas Repubic % of
customers
32-gallon trash $ 66.14 $ 66.32 21.8%
64-gallon trash $ 78.64 $ 78.52 63.1%
96-gallon trash $ 104.50 $ 103.78 15.1%
Best and Final Offers w/Street Sweeping
January 1, 2025 Rate Comparison
ITEM 20.1. ATTACHMENT 1

10 Best and Final Offer Summary for Bi-Monthly Rates
Cart Size
%
Increase
Original
Proposal
%
Increase
BAFO
BAFO
Savings
32-gallon trash 12.8% 10.1% (1.66) $
64-gallon trash 12.6% 10.6% (1.42) $
96-gallon trash 12.2% 11.2% (0.96) $
Cart Size
%
Increase
Original
Proposal
%
Increase
BAFO
BAFO
Savings
32-gallon trash 11.9% 10.4% (0.88) $
64-gallon trash 11.9% 10.4% (1.04) $
96-gallon trash 11.9% 10.4% (1.38) $
Best and Final Offer w/Street Sweeping
January 1, 2025 Rate Comparison
Republic Services
Best and Final Offer w/Street Sweeping
January 1, 2025 Rate Comparison
Atlas Disposal
ITEM 20.1. ATTACHMENT 1

11 Proposed 10-Year Waste Diversion Goal Comparison
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Republic
Original
Proposal
43% fixed
40%
minimum
in current
contract
45%
52%
43%
47%
ITEM 20.1. ATTACHMENT 1

12 Atlas (1)
Trash: Kiefer LF
Organics: Yolo Landfill
Recycling: SRTS
Republic (2)
Trash: Forward LF
Organics: Forward LF
Recycling Industries
Projected 10-Year Total Mileage Comparison

1.81M miles 2.75M miles
Original Proposal
~ 1M less miles with Atlas
Best and Final
~ 750K less miles with Atlas

1.81M miles
No changes

2.5M miles
Republic (2)
Trash: Forward LF
Yard Waste: Van Vleck Ranch
Food Waste: North State Recyclables
Recycling Industries
ITEM 20.1. ATTACHMENT 1

13 Public Education Budget Comparison
Education Campaign Elements Atlas
Original
Atlas
BAFO
Republic
Original
Republic
BAFO
4 annual campaigns $40,000 $40,000 $32,280 $53,000
Annual customer service guide $25,000 $25,000 $23,000 $23,000 School outreach $8,500 $8,500 $5,000 $25,000
Contamination Auditing $7,000 $6,000 $3,000 $3,000
Compost workshops $5,000 $2,000 $4,950 $4,950
Edible Food Education and Collection Events $12,500 $12,500 $0.00 $0.00 Sustainability in Events n/a $3,000 $7,000 $7,000
Promotional Items for event giveaways $7,000 $3,000 $3,000 $3,000 Scholarships n/a $5,000 $3,000 $3,000
Other (flyers, digital ads, social media, etc.) $23,000 $23,000 $4,025 $23,540 Total Annual Public Education Budget $128,000 $128,000 $85,255 $145,490 Note: Atlas proposes a campaign in Contract Year 1 in the amount of $34,000 to educate residents on the transition of service providers. The Year 1 budget for Atlas will therefore be 162,000.

ITEM 20.1. ATTACHMENT 1

14 10-minute presentations from
Atlas and Republic
ITEM 20.1. ATTACHMENT 1

15 Proposal Highlights
Atlas Disposal Republic Services
Rancho Cordova headquarters and call center
with no remote customer service reps
Rancho Cordova corporation yard for vehicle
dispatch and maintenance
~ 750K less vehicle miles over 10-year contract
term
Significant financial and staff resources
Edible food recovery program to support local
non-profits
20% rate discount program for seniors and
low-income residents using 32-gallon trash can
Potential rate uncertainty with future Kiefer
Landfill tip-fee increases
No landfill tip-fee increases beyond annual CPI
adjustment
$128,000 annual public education budget.

Additional $34,000 in Year 1 for one-time
hauler transition campaign
$145,490 annual public education budget
Escalating diversion rate between 45% to 52%
(no change from original proposal)
Escalating diversion rate between 43% and
47% in Best and Final Offer
RNG fuel in current vehicles and potential
future electrification of fleet
RNG fuel in current vehicles and potential
future electrification of fleet
20-year history servicing commercial
customers in the City
20-year history servicing residential and
commercial customers in the City
ITEM 20.1. ATTACHMENT 1

16 Outstanding Legal Issues
• Potential exposure to legal action resulting from the proposed rate discount program for seniors and low-income residents
– City Attorney has drafted and recommends an indemnity for Proposition 218 and Service Rates if the City Council selects Republic Services
ITEM 20.1. ATTACHMENT 1

17 Conclusion
• Atlas Disposal and Republic Services are both excellent service providers and either company is well positioned to serve City residents in the new 10-year contract.
• Staff recommendation is for the City Council to adopt a resolution authorizing the city manager to execute a final contract with either Atlas Disposal or Republic Services.
• Thank you!
ITEM 20.1. ATTACHMENT 1

ITEM 20.1. ATTACHMENT 2
Resolution No. XX-2024 Page 1 of 2

CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE OF CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT NO. 2024-33 WITH ______________________________ FOR THE RESIDENTIAL SOLID

WASTE SERVICES AND STREET SWEEPING SERVICES CONTRACT BEGINNING JANUARY 1, 2025
WHEREAS, the current agreement with Allied Waste Services of North America (Republic Services) for residential solid waste collection and street sweeping services expires on December 31, 2024; and
WHEREAS, on January 17, 2023, the City Council directed staff to proceed with a competitive procurement process for a new contract beginning January 1, 2025; and WHEREAS, the City released a Request for Proposals document on June 28, 2023 and four waste hauling companies submitted proposals on September 15, 2023; and WHEREAS, the proposed new contract has a ten (10) year term through December 31, 2034; and
WHEREAS, the overall objective of the competitive procurement process is to achieve the best combination of services, company qualifications and price; and WHEREAS, the City evaluation committee conducted interviews with the top two ranked companies, including Atlas Disposal and Republic Services, on October 18, 2023; and WHEREAS, the Atlas Disposal and Republic Services proposals were presented to the City Council on December 5, 2023, and the Council vote was a tie with two councilmembers voting for Atlas Disposal and two voting for Republic Services; and WHEREAS, at the request of the City Council both Atlas Disposal and Republic Services submitted best and final offers on January 5, 2024; and WHEREAS, execution of the new contract will allow either Atlas Disposal or Republic Services to provide state-of-the-art municipal service to Rancho Cordova residents.

NOW, THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA does authorize the City Manager to execute Contract No. 2024-33 with ______________________________ in a form approved by the City Attorney for the contract term from January 1, 2025 through December 31, 2034.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 4th day of March, 2024 by the following vote:

AYES:

ITEM 20.1. ATTACHMENT 2
Resolution No. XX-2024 Page 2 of 2
NOES:

ABSENT:

ABSTAIN:

ATTEST:

David Sander, Mayor
Stacy Leitner, CMC
City Clerk

DRAFT

RESIDENTIAL SOLID WASTE SERVICES AND

STREET SWEEPING SERVICES CONTRACT
Executed Between The
City of Rancho Cordova
And
Atlas Disposal Industries, LLC
January 1, 2025
ITEM 20.1. ATTACHMENT 3

1 TABLE OF CONTENTS
2 ARTICLE 1. DEFINITIONS ............................................................................................10 3 ARTICLE 2. TERM OF CONTRACT ..............................................................................22 4 2.01 Term
5 2.02 Extension of Term
6 2.03 Other Provisions
7 2.04 Performance Review
8 ARTICLE 3. CONDITIONS GOVERNING SERVICES PROVIDED BY THE 9 CONTRACTOR ..............................................................................................................23 10 3.01 Grant of Exclusive Contract
11 3.02 Sale or Donation of Recyclable Materials by Service Recipients 12 3.03 Gardening and Landscaping Services
13 ARTICLE 4. FRANCHISE FEES AND PAYMENTS........................................................23 14 4.01 Reimbursement Fee
15 4.02 Franchise Fee
16 4.03 Annual Payment for City Services
17 4.04 Late Payment
18 ARTICLE 5. COLLECTION RATES.................................................................................25 19 5.01 Collection Service Rates
20 5.02 Maximum Service Rate Adjustment
21 5.03 CPI Adjustment Calculation
22 5.04 Extraordinary Adjustments
23 5.05 Procedures in Event of Invalidation of Rate Adjustment 24 ARTICLE 6. COLLECTION SERVICE BILLING…..........................................................28 25 6.01 Responsibility for Service Billing and Collection 26 6.02 Invoices
27 6.03 Timing; Frequency
28 6.04 Partial Month Service
29 6.05 Overpayments
30 6.06 Delinquent Service Accounts
31 6.07 Contractor’s Reservation of Legal Rights and Remedies 32 ARTICLE 7. DIVERSION REQUIREMENTS…...............................................................29 33 7.01 Minimum Requirements
34 7.02 Franchised Diversion Rate Calculation
35 7.04 Warrantees and Representations
36 7.05 Mutual Cooperation
37 7.05 Guarantee
38 ARTICLE 8. SERVICE UNITS.......................... …..........................................................31 39 8.01 Service Units
40 8.02 Service Unit Changes
ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

41 8.03 Annexation
42 8.04 Route Map Update
43 ARTICLE 9. GENERAL REQUIREMENTS.....................................................................32 44 9.01 Service Standards
45 9.02 Labor and Equipment
46 9.03 Holiday Service
47 9.04 Inspections
48 9.05 Spillage and Litter
49 9.06 Ownership of Materials
50 9.07 Commingling of Materials
51 9.08 Recyclable Materials and Organic Recyclable Material Contamination 52 9.09 Recyclable Materials and Organic Recyclable Material Contamination 53 Protocols
54 9.10 Disputes Over Excess Contamination Charges
55 9.11 Plan of Correction
56 9.12 Recyclable Material and Organic Recyclable Material Processing 57 Capacity
58 9.13 Regulations and Record Keeping
59 9.14 Transition
60 ARTICLE 10. RESIDENTIAL COLLECTION SERVICE .................................................37 61 10.01 Residential Collection Service
62 10.02 Conditions of Service
63 10.03 On-Premises Service
64 10.04 Frequency and Scheduling of Service
65 10.05 Hours and Days of Collection
66 10.06 Manner of Collection
67 10.07 Residential Garbage Collection Service
68 10.08 Residential Recycling Service
69 10.09 Organic Recyclable Material Collection Service 70 10.10 Organic Recyclable Material Processing Services 71 10.11 Leaf Collection Service
72 10.12 Large Item Collection Service
73 10.13 Residential Used Oil Collection Service
74 10.14 Sharps Collection Service
75 ARTICLE 11. City COLLECTION SERVICE ..................................................................47 76 11.01 City Collection Service
77 11.02 City Service Unit Recycling Program
78 11.03 City Garbage Collection Service
79 11.04 City Recycling Collection Service
ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

80 11.05 Material Recovery Facility
81 11.06 Organic Recyclable Materials Collection Service 82 11.07 City Event Services
83 11.08 Large Item Collection Service
84 ARTICLE 12. OTHER COLLECTION SERVICE …….....................................................51 85 12.01 Additional Programs
86 12.02 Debris Collection Service
87 12.03 Special Clen-Up Service
88 ARTICLE 13. COLLECTION ROUTES ..........................................................................52 89 13.01 Service Routes
90 13.02 Service Route Changes
91 13.03 Collection Route Audits
92 13.04 Route Reviews
93 ARTICLE 14. BILLING AUDITS AND PERFORMANCE REVIEWS...............................53 94 14.01 Contractor Billing Audits
95 14.02 Performance and Financial Reviews
96 14.03 Public Hearing
97 14.04 Cooperation with Other Program Reviews
98 ARTICLE 15. COLLECTION EQUIPMENT ....................................................................54 99 15.01 General Provisions
100 15.02 Collection Vehicles
101 15.03 Collection Vehicle Technology
102 15.04 Collection Vehicle Size Limitations / Overweight Vehicle Charge 103 15.05 Registration; Inspection
104 15.06 Safety Markings
105 15.07 Vehicle Signage and Painting
106 15.08 Bin and Roll-Off Container Signage, Painting, and Cleaning 107 15.09 Vehicle Certification
108 15.10 Equipment Maintenance
109 15.11 Maintenance Log
110 15.12 Equipment Inventory
111 15.13 Reserve Equipment
112 15.14 Large Items
113 15.15 Collection Vehicle Noise Level
114 ARTICLE 16. CONTRACTOR’S OFFICE ......................................................................57 115 16.01 Contractor’s Office
116 16.02 Call Center Performance Tracking
117 ARTICLE 17. STREET SWEEPING SERVICES ...........................................................58 118 17.01 Street Seeping Service
ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

119 17.02 Compensation for Street Sweeping Service
120 17.03 Manner of Service
121 17.04 Traffic Laws
122 17.05 Parked Vehicles
123 17.06 Call Backs
124 17.07 Water
125 17.08 Sweeper Speed
126 17.09 Width of Sweeper Path
127 17.10 Intersections
128 17.11 Frequency and Day of Service
129 17.12 Hours and Days of Service
130 17.13 Disposal of Sweep Waste
131 17.14 Spillage
132 17.15 Changes in Streets
133 17.16 Obstructions
134 17.17 Hazardous Waste
135 17.18 Coordination with Other City Programs
136 17.19 Street Sweeping Service Routes
137 17.20 Equipment Specifications
138 17.21 Protection/Restoration of Public and Private Property 139 17.22 Accidents
140 17.23 Additional Street Sweeping Services
141 17.24 Emergency Service Provisions – Route Variances 142 17.25 Reporting Requirements
143 17.26 Street Sweeping Quality of Work
144 17.27 Administration Charges
145 ARTICLE 18. OTHER SERVICES .................................................................................68 146 18.01 Public Education and Outreach Services
147 18.02 City Recycling Coordinator
148 18.03 Annual Collection Service Notice
149 18.04 Programs and Services
150 18.05 Recovered Organic Recyclable Material Product 151 18.06 News Media Relations
152 18.07 Submittal of Drafts to City
153 18.08 Looking Out for You Program
154 ARTICLE 19. EMERGENCY SERVICE PROVISIONS ..................................................69 155 19.01 Emergency Services
156 19.02 Disaster Recovery Support
157 ARTICLE 20. RECORD KEEPING AND REPORTING REQUIREMENTS.....................70 ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

158 20.01 Record Keeping
159 20.02 Quarterly Reporting
160 20.03 Annual Reporting
161 20.04 Reporting for Enforcement and CalRecycle
162 20.05 CalRecycle Reports
163 20.06 Additional Reporting
164 ARTICLE 21. NONDISCRIMINATION ...........................................................................75 165 21.01 Nondiscrimination
166 ARTICLE 22. SERVICE INQUIRIES AND COMPLAINTS .............................................75 167 22.01 Contractor’s Customer Service
168 ARTICLE 23. QUALITY OF PERFORMANCE OF Contractor .......................................76 169 23.01 Intent
170 23.02 Service Supervisor
171 23.03 Contract Administrator
172 23.04 Administrative Charges
173 23.05 Alternative Process – Notice of Non-Compliance 174 ARTICLE 24. PERFORMANCE BOND ..........................................................................78 175 24.01 Performance Bond
176 24.02 Letter of Credit
177 ARTICLE 25. INSURANCE ...........................................................................................79 178 25.01 Insurance Policies
179 25.02 Minimum Limits of Insurance
180 25.03 Deductible and Self-Insured Retention
181 25.04 Endorsements
182 25.05 Acceptability of Insurers
183 25.06 Verification of Coverage
184 25.07 Proof of Insurance
185 25.08 Subcontractors
186 25.09 Modification of Insurance Requirement
187 25.10 Rights of Subrogation
188 ARTICLE 26. INDEMNIFICATION .................................................................................81 189 26.01 Indemnification
190 26.02 Hazardous Materials Indemnification
191 26.03 Indemnification for Failure to Meet AB 939 Goals 192 26.04 Consideration
193 26.05 Obligation
194 26.06 Subcontractors
195 26.07 Exception
196 26.08 Damage by Contractor
ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

197 ARTICLE 27. DEFAULT OF CONTRACT ......................................................................84 198 27.01 Termination
199 27.02 Violations
200 27.03 Effective Date
201 27.04 Immediate Termination
202 27.05 Termination Cumulative
203 ARTICLE 28. MODIFICATIONS TO THE CONTRACT ..................................................86 204 28.01 Modifications
205 28.02 Change in Law
206 28.03 Initiative and Technology Changes
207 28.04 Service Proposal
208 28.05 Incremental Costs
209 28.06 Other Contractors
210 28.07 Modification and Evaluation
211 28.08 Termination for Cause
212 28.09 Termination with Cause
213 28.10 Rate Adjustment at Termination
214 ARTICLE 29. LEGAL REPRESENTATION ...................................................................89 215 29.01 Acknowledgement
216 ARTICLE 30. FINANCIAL INTEREST ...........................................................................89 217 30.01 Representation
218 ARTICLE 31. Contractor's PERSONNEL.......................................................................90 219 31.01 Personnel Requirements
220 ARTICLE 32. EXEMPT WASTE ....................................................................................91 221 ARTICLE 33. INDEPENDENT Contractor .....................................................................91 222 ARTICLE 34. LAWS TO GOVERN ................................................................................91 223 ARTICLE 35. CONSENT TO JURISDICTION ...............................................................91 224 ARTICLE 36. ASSIGNMENT .........................................................................................92 225 ARTICLE 37. COMPLIANCE WITH LAWS ................................ ...................................92 226 ARTICLE 38. PERMITS AND LICENSES ......................................................................92 227 ARTICLE 39. OWNERSHIP OF WRITTEN MATERIALS...............................................92 228 ARTICLE 40. WAIVER ...................................................................................................93 229 ARTICLE 41. PROHIBITION AGAINST GIFTS ..............................................................93 230 ARTICLE 42. POINT OF CONTACT ..............................................................................93 231 ARTICLE 43. NOTICES ..................................................................................................93 232 ARTICLE 44. TRANSITION TO NEXT CONTRACTOR .................................................94 ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

233 ARTICLE 45. CONTRACTOR’S RECORDS..................................................................95 234 ARTICLE 46. ENTIRE CONTRACT ...............................................................................95 235 ARTICLE 47. SEVERABILITY ........................................................................................95 236 ARTICLE 48. RIGHT TO REQUIRE PERFORMANCE ..................................................96 237 ARTICLE 49. ALL PRIOR CONTRACTS SUPERSEDED ..............................................96 238 ARTICLE 50. HEADINGS ...............................................................................................96 239 ARTICLE 51. EXHIBITS ................................................................................................ 96 240 ARTICLE 52. EFFECTIVE DATE .................................................................................. 96 241
242
243 EXHIBITS
1 Monthly Base Service Rates .....................................................................98 2 Residential and Commercial Street Sweeping Maps ................................. 99 3 City Service Units....................................................................................100 4 Cart Specifications ..................................................................................101 5 Performance Bond ..................................................................................102 6 Contractor’s Proposal..............................................................................103 7 Monthly Street Sweeping Reports ...........................................................106 8 Example Quarterly Report Table Format and Content.............................110 9 Administrative Charges ...........................................................................112 ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

CITY OF RANCHO CORDOVA
244 This Contract made and entered into this ________, by and between the City of Rancho 245 Cordova, a municipal corporation of the State of California, hereinafter referred to as "City" 246 and Atlas Disposal Industries, LLC, hereinafter referred to as "Contractor". 247 The Legislature of the State of California, by enactment of the California Integrated Waste 248 Management Act of 1989 (the “Act”) and subsequent additions and amendments (codified 249 at California Public Resources Code Section 40000 et seq. ), has declared that it is in the 250 public interest to authorize and require local agencies to make adequate provisions for 251 solid waste, recyclables, and organic recyclables handling within their jurisdiction. 252 The State of California has found and declared that the amount of garbage generated in 253 California, coupled with diminishing landfill space and potential adverse environmental 254 impacts from landfilling and the need to conserve natural resources, have created an 255 urgent need for State and local agencies to enact and implement an aggressive integrated 256 waste management program. The State has, through enactment of the Act, directed the 257 responsible State agency, and all local agencies, to promote disposal site diversion and 258 to maximize the use of feasible garbage reduction, re-use, recycling, and composting 259 options to reduce the amount of garbage that must be disposed of in disposal sites. 260 In September 2016 Senate Bill 1383 (SB 1383) was signed into law establishing methane 261 emissions reduction targets including organics and recycling compliance targets as stated 262 in Health & Safety Code § 39730.6, which are designed to progressively achieve 263 California’s goal of 75% recycling, composting or source reduction of solid waste by 2025. 264 Pursuant to its Municipal Code and California Public Resources Code Section 40059(a) 265 as may be amended from time to time, City has determined that the public health, safety, 266 and well-being require that an exclusive right be awarded to a qualified contractor to 267 provide for the collection of garbage, recyclable materials, and organic materials, except 268 for collection of materials excluded in City’s Municipal Code, and other services related to 269 meeting the Act’s 50 percent diversion goal and other requirements of the Act. 270 City further declares its intent to regulate and set the maximum rates Contractor may 271 charge Service Recipients for the collection, transportation, processing, recycling, 272 composting, and/or disposal of residential garbage, recyclable materials, and organic 273 materials.
274 The City Council has determined that Contractor, by demonstrated experience, reputation, 275 and capacity, is qualified to provide for the collection of residential garbage, recyclable ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

276 materials, and organic materials within the corporate limits of City, the transportation of 277 such material to appropriate places for processing, recycling, composting and/or disposal; 278 and City Council desires that Contractor be engaged to perform such services on the basis 279 set forth in this Agreement.
280 This franchise agreement confers significant benefit to the Contractor including the use of 281 the City right of way to perform services. The City’s franchise fees are similar to and in 282 some instances lower than comparable or geographically proximate jurisdictions. The City 283 has analyzed the amount of franchise fees changed to the Contractor and has determined 284 that these fees are reasonable in relationship to the value and benefits conferred to the 285 Contractor for the use of the City’s right of way to perform services pursuant to the 286 franchise agreement as well as the increased burden to the City to maintain its right of 287 way attributed to traffic from Contractor’s vehicles. 288 Contractor has represented that it has the ability and capacity to provide for the collection 289 of garbage, recyclable materials, and organic materials within the corporate limits of City; 290 the transportation of such material to appropriate places for processing, recycling, 291 composting and/or disposal; and the processing of materials. 292 Now, therefore, in consideration of the mutual covenants, Contracts and consideration 293 contained herein, City and Contractor hereby agree as hereinafter set forth:
294 ARTICLE 1. Definitions
295 For the purpose of this Residential Solid Waste Services and Street Sweeping Contract, 296 hereinafter referred to as "Contract", the definitions contained in this Article shall apply 297 unless otherwise specifically stated. If a word or phrase is not defined in this Article, the 298 definition of such word or phrase as contained in the appropriate chapter of the Rancho 299 Cordova Municipal Code shall control. When not inconsistent with the context, words 300 used in the present tense include the future, words in the plural include the singular, and 301 words in the singular include the plural. Use of the masculine gender shall include the 302 feminine gender.
303 1.01 Applicable Law. All Federal, State, County, and local laws, regulations, rules, 304 orders, judgments, decrees, rulings, permits, approvals, or other requirement of any 305 governmental entity or regulatory or quasi-regulatory authority having jurisdiction over an 306 aspect of the Collection services, including judicial interpretations thereof, that are in force 307 on the Effective Date including without limitation the Act and all regulations of CalRecycle, 308 and as may be enacted, issued or amended thereafter, until termination or expiration of 309 this Contract.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

310 1.02 Approved Sharps Container. A receptacle that is approved by the City, for 311 the Collection of Sharps.
312 1.03 Bin. A metal or plastic container, with a capacity of one (1) cubic yard up to 313 and including eight (8) cubic yards, designed or intended to be mechanically dumped into 314 a loader packer type truck, that is approved for Collection Services by City. Bins may also 315 include compactors that are owned by City Service Units by which the City Collection 316 Service occurs.
317 1.04 Biohazardous or Biomedical Waste. Any waste which may cause disease or 318 reasonably be suspected of harboring pathogenic organisms; included are wastes 319 resulting from the operation of medical clinics, hospitals, and other facilities processing 320 wastes which may consist of, but are not limited to, human and animal parts, contaminated 321 bandages, pathological specimens, hypodermic needles, Sharps, contaminated clothing 322 and surgical gloves.
323 1.05 Blue Container. A Container colored as follows: (a) a lid shall be blue, or (b) 324 the body shall be blue and the lid shall be blue. Hardware such as hinges and wheels 325 may be any color.
326 1.06 Brown Goods. Electronic equipment such as stereos, televisions, computers, 327 monitors, VCR’s and other similar items.
328 1.07 CalRecycle. The State of California Department of Resources Recycling and 329 Recovery.
330 1.08 Cart. A heavy plastic receptacle with an approximate capacity of at least thirty331 two (32) and not more than one hundred (100) gallons, having a hinged tight-fitting lid and 332 wheels, that is approved by the Contract Administrator for use by Service Recipients for 333 Collection Services under this Contract.
334 1.09 CERCLA. The Comprehensive Environmental Response, Compensation and 335 Liability Act of 1980 (42 U.S.C. Section 9600 et. Seq). 336 1.10 Change In Law. Change in Law means any of the following events or conditions 337 which has material and adverse effects on the performance by the parties of their 338 respective obligations under this Agreement (except for payment obligations), or on the 339 siting, design, permitting, acquisition, construction, equipping, financing, ownership, 340 possession, management operation or maintenance of the operating assets or providing 341 the franchise service or other matters to which Applicable Law applies:
342 A. the enactment, adoption, promulgation, issuance, modification, or 343 written change of or in Applicable Law, including but not limited to new or increased fees 344 and charges imposed by the State of California, U. S. Federal government, City of ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

345 Rancho Cordova, or Sacramento County, directly related to the collection, handling, 346 processing, recycling or disposal of Solid Waste, or the enactment, adoption, 347 promulgation, issuance, modification, or written change in administrative or judicial 348 interpretation on or after Effective Date of any Applicable Law. Change in Law explicitly 349 precludes any changes in laws or regulations promulgated by any government agency 350 or regulatory body outside of the United States’ jurisdiction; 351 B. the order or judgment of any U. S. Federal Government Body, 352 California State Government Body, City Government Body, or Sacramento County 353 Government Body, on or after the Effective Date, to the extent such order or judgment 354 is not the result of willful or negligent action, error or omission or lack of reasonable 355 diligence of the City or of the Contractor, whichever is asserting the occurrence of a 356 Change in Law; provided, however, that the contesting in good faith or the failure in good 357 faith to contest any such order or judgment shall not constitute or be construed as such 358 a willful or negligent action, error or omission or lack of reasonable diligence; or 359 C. the denial of an application for, delay in the review, issuance or 360 renewal of, suspension, termination, interruption or imposition of a new or more stringent 361 condition in connection with the issuance, renewal or failure of issuance or renewal on 362 or after the Effective Date of any Legal Entitlement to the extent that such denial, delay, 363 suspension, termination, interruption, imposition or failure materially and adversely 364 interferes with the performance of this Agreement, of and to the extent that such denial, 365 delay, suspension, termination, interruption, imposition or failure is not the result of willful 366 or negligent action, error or omission or a lack of reasonable diligence of the City or of 367 the Contractor, whichever is asserting the occurrence of a Change of Law; provided, 368 however, that the contesting in good faith or failure in good faith to contest any such 369 denial, delay, suspension, termination, interruption, imposition or failure shall not be 370 construed as such a willful or negligent action, error or omission or lack of reasonable 371 diligence.
372 1.11 City. The City of Rancho Cordova, California.
373 1.12 City Collection Service. City Garbage Collection Service, City Recycling 374 Collection Service, City Organic Recyclable Material Collection Service, City Container 375 Service, City Event Service, and Large Item Collection Service. 376 1.13 City Container Service. The Collection of Garbage and Recyclables from 377 public containers distributed and maintained by the City and the transport and delivery of 378 the collected materials to the appropriate facility. 379 1.14 City Event Service. The Collection of Garbage, Recyclables, and Organic 380 Recyclable Materials, and the provision of other services as set forth in this Contract, at 381 City-sponsored or supported events.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

382 1.15 City Service Unit. Those City properties as set forth in Exhibit 3, “City 383 Service Units”, which is attached to and included in this Contract. 384 1.16 City Recycling Collection Service. The Collection of Recyclable Materials, 385 by the Contractor, including dry cell household batteries when set out in the place and 386 manner agreed to between the City and the Contractor, from City Service Units in the 387 Service Area and the delivery of those Recyclable Materials to a Materials Recovery 388 Facility.
389 1.17 City Garbage. Garbage resulting from the normal activities of a City Service 390 Unit. City Garbage must be generated by and at the City Service Unit wherein the City 391 Garbage is Collected and does not include items defined herein as Exempt Waste. 392 1.18 City Garbage Collection Service. The Collection of City Garbage by the 393 Contractor, from City Service Units in the Service Area, and the delivery of that City 394 Garbage to a Disposal Facility.
395 1.19 City Waste. City Garbage, Recyclables, Organic Recyclable Material, and 396 Large Items resulting from the normal activities of a City Service Unit. City Waste must 397 be generated by and at the City Service Unit wherein the City Waste is Collected and 398 does not include items defined herein as Exempt Waste. 399 1.20 Collection. The process whereby Residential Waste, City Waste, 400 Recyclable Materials and other materials are removed and transported to a Disposal 401 Facility, Organic Recyclable Material Processing Facility, Materials Recovery Facility or 402 other facility as appropriate.
403 1.21 Collection Services. Residential Collection Service, City Collection Service, 404 Special Clean-up Service, and Debris Collection Service. 405 1.22 Commercial Streets. Commercial Streets include larger arterial and major 406 collectors in the Service District, as designated by the Contract Administrator. 407 1.23 Construction and Demolition Debris. Used or discarded materials resulting 408 from construction, remodeling, repair or demolition operations on any pavement, house, 409 commercial building or other structure and such other materials as may be removed during 410 the normal cleanup process of such construction, remodeling, repair, or demolition 411 operations.
412 1.24 Consumer Price Index. Water and sewer and trash collection services in U. 413 S. city average, all urban consumers, seasonally adjusted. Series Ed: CUSR0000SEHG. 414 1.25 Container. Any Cart or Bin.
415 1.26 Contamination Charge. Additional charge to Service Recipient for 416 Recycling Carts or Organic Recyclable Material Carts that are visibly contaminated..

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

417 1.27 Contract. The written document and all amendments thereto, between the 418 City and the Contractor, governing the provision of Residential Solid Waste Services and 419 Street Sweeping Contract as provided herein.
420 1.28 Contract Administrator. That person, or their designee, designated by the 421 City to administer and monitor the provisions of this Contract. 422 1.29 Contract Year. Each twelve (12) month period from January 1 to December 423 31.
424 1.30 Contractor. That person or entity that has obtained from the City a Contract 425 to provide Collection Services and Street Sweeping Services as set forth herein. 426 1.31 County. Sacramento County, California.
427 1.32 Curb Mile. The distance of one mile along one side of a street as measured 428 by the City along the center line of the street. Distances along Median Islands are 429 considered Curb Miles.
430 1.33 Debris Collection Service. The Collection and appropriate disposal or 431 processing of abandoned or discarded Large Items and other materials in the public right 432 of way by the Contractor within the Service Area. Such Collection by the Contractor shall 433 be limited to the equivalent of two thousand (2,000) cubic yards in any Contract Year. 434 1.34 Deceased Wildlife. Dead animals including squirrel or other rodent, bird, 435 raccoon, possum, coyote, deer or other non-domestic animals, as deemed appropriate by 436 the City, that are found on or near City rights-of-way. 437 1.35 Disposal Facility. The facility designated by Contractor and approved by the 438 City for the disposal, or processing as appropriate, of Residential Garbage, City Garbage 439 and other materials as appropriate and acceptable, which has obtained, and maintains 440 during the term of this Contract, valid permit(s) to accept, process or dispose of Residential 441 Solid Waste, City Solid Waste and such other materials as may be delivered by Contractor 442 under the terms of this Contract.
443 1.36 Dwelling Unit. An individual living unit in a dwelling unit as defined in 444 Government Code section 66411. 7(j)(2), single-family house, condominium, townhouse, 445 mobile home, duplex (two units), triplex (three units), fourplex (four units) or building of 446 four (4) or less total individual living units intended for, or capable of being utilized for, 447 residential living other than a Hotel or Motel.
448 1.37 Exempt Waste. Biohazardous or Biomedical Waste, Hazardous Materials, 449 Sludge, Stable Matter, Green Waste or lumber that is more than five (5) feet in length in 450 its longest dimension or two (2) feet in diameter, automobiles, automobile parts, boats, 451 boat parts, boat trailers, internal combustion engines, lead-acid batteries, and those 452 wastes under the control of the Nuclear Regulatory Commission. Exempt Waste does not ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

453 include Used Oil, Used Oil Filters, dry cell household batteries or Sharps when placed for 454 Collection as set forth in this Contract or as otherwise directed by the City. 455 1.38 Franchised Diversion Rate. The rate of diversion that Contactor achieves 456 as defined and calculated in Section 7.02 of this Agreement. 457 1.39 Food Waste. Food scraps and trimmings and other putrescible waste that 458 results from food production, preparation, storage, consumption, or handling. Food waste 459 includes, but is not limited to, meat, fish and dairy waste, fruit and vegetable waste, grain 460 waste, and compostable food soiled paper products.
461 1.40 Garbage. All putrescible and non-putrescible solid, semi-solid, and 462 associated liquid waste, as defined in California Public Resources Code section 40191, 463 attributed to normal activities of a Service Unit. Garbage must be generated by and at the 464 Service Unit wherein the Garbage is Collected. Garbage does not include those items 465 defined herein as Exempt Waste.
466 1.41 Gray Container. A Container colored as follows: (a) the lid shall be gray or 467 black, or (b) the body shall be gray or black and the lid shall be gray or black. Hardware 468 such as hinges and wheels may be any color.
469 1.42 Green Container. A Container colored as follows: (a) the lid shall be green, 470 or (b) the body shall be green, and the lid shall be green. Hardware such as hinges and 471 wheels may be any color.
472 1.43 Green Waste. Any vegetative matter resulting from normal yard and 473 landscaping maintenance that is not more than five (5) feet in its longest dimension or six 474 (6) inches in diameter or weighs no more than fifty (50) pounds. Green Waste includes 475 plant debris, such as Palm, Yucca and Cactus, grass clippings, leaves, pruning, weeds, 476 branches, brush, Christmas trees, and other forms of Organic Recyclable Material and 477 must be generated by and at the Residential or City Service Unit wherein the Green Waste 478 is Collected. Green Waste does not include items herein defined as Exempt Waste. 479 1.44 Green Waste Collection Service. The Collection of all Green Waste from 480 Residential or City Service Units in the Service Area and the delivery of that Green Waste 481 to a Green Waste Processing Facility.
482 1.45 Gross Revenues. All monetary amounts actually collected or received by 483 Contractor for the provision of Collection Services pursuant to this Contract. Gross 484 Revenue shall include all receipts from Service Recipients including late charges, 485 Contamination Charges, etc. , including franchise fees. The term Gross Revenues, for 486 purposes of calculating Franchise Fees, does not include any revenues generated from 487 Street Sweeping Fees, the sale of Recyclable Material, compost product or energy, grants, 488 cash awards, State of California Department of Conservation payments or rebates 489 resulting from the performance of this Agreement.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

490 1.46 Hauler Route. The designated weekly itinerary or sequence of stops 491 scheduled to be performed by one collection vehicle providing regularly scheduled 492 Garbage, Recyclable Material, or Organic Recyclable Material collection services (not on493 call or Bulky Item/Abandoned Waste) within the Contractor’s collection service area under 494 the Contract
495 1.47 Hazardous Materials. Those materials that may have a negative impact on 496 human health or the environment, including but not limited to all hazardous materials 497 defined in Health and Safety Code Section 25501, subdivision (n), namely any material 498 that, because of its quantity, concentration, or physical or chemical characteristics, poses 499 a significant present or potential hazard to human health and safety or to the environment 500 if released into the workplace or the environment. Under this Agreement, “Hazardous 501 Materials” include, but are not limited to, hazardous substances, hazardous waste, per502 and polyfluoroalkyl substances (“PFAS”), lead-containing paint, polychlorinated biphenyls 503 (“PCBs”), asbestos-containing materials (“ACMs”), asbestos containing construction 504 materials (“ACCMs”), and any material that Contractor reasonably believe(s) would, as a 505 result of or upon acceptance, be violation of local, state, or federal law, regulation, or 506 ordinance, including waste that cannot be disposed of in Class III landfills or material or 507 waste that in Contractor’s reasonable opinion would present a significant risk to human 508 health or the environment, cause a nuisance or otherwise create or expose Contractor or 509 City to potential liability. Hazardous Materials does not include any materials, wastes, or 510 Solid Waste defined as allowable materials for collection through this Agreement. 511 1.48 High Diversion Organic Recyclable Material Processing Facility. A facility 512 that is in compliance with the reporting requirements of 14 CCR Section 18815. 5(d) and 513 meets or exceeds an annual average mixed waste organic content recovery rate of 50 514 percent between January 1, 2022 and December 31, 2024, and 75 percent after January 515 1, 2025 as calculated pursuant to 14 CCR Section 18815. 5(e) for Organic Recyclable 516 Material received from the “Mixed Waste Organic Collection Stream” as defined in 14 CCR 517 Section 17402(a)(11.5).
518 1.49 Household Hazardous Waste. Any Hazardous Waste generated incidental 519 to owning or maintaining a Residential Service Unit, excluding any Hazardous Waste 520 generated in the course of operation of a business concern at a Residential Service Unit, 521 in accordance with Section 25218. 1 of the California Health and Safety Code. 522 1.50 Hotel or Motel. A structure or building unit(s) capable of being utilized for 523 residential living where such unit or a group of such units is regularly rented to transients 524 or held out or advertised to the public as a place regularly rented to transients for periods 525 of seven (7) days or less. To meet this definition, the Hotel or Motel must be licensed to 526 operate as such.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

527 1.51 Implementation Record. The information required to be maintained as 528 required by SB 1383 Section 18995.2.
529 1.52 Kitchen Food Waste Pail. A receptacle with a rated capacity not exceeding 530 two and one-half (2.5) gallons, made in a material approved by the City, having a hinged 531 lid, suitable for use in a Residential Service Unit for temporary storage of Organic 532 Recyclable Material that is approved for such purpose by the City. 533 1.53 Large Green Waste. Oversized Green Waste such as tree trunks and 534 branches with a diameter of not less than six (6) inches and not more than two (2) feet 535 and a length of not more than five (5) feet in its longest dimension, which are attributed to 536 the normal activities of a Residential Service Unit or City Service Unit. Large Green Waste 537 must be generated by and at the Residential Service Unit or City Service Unit wherein the 538 Large Green Waste is Collected.
539 1.54 Large Items. Those materials including, but not limited to, furniture, 540 carpets, mattresses, White Goods, Brown Goods, clothing, tires, Large Green Waste, or 541 some combination of such items which are attributed to the normal activities of a 542 Residential Service Unit or City Service Unit. Large Items must be generated by and at 543 the Residential Service Unit or City Service Unit wherein the Large Items are Collected. 544 Large Items do not include items herein defined as Exempt Waste. 545 1.55 Large Item Collection Service. The periodic on-call Collection of Large 546 Items, by the Contractor, from Residential Service Units or City Service Units in the Service 547 Area, and the delivery of those Large Items to a City-Approved Materials Recovery Facility 548 or such other facility as may be appropriate under the terms of this Contract. Large Item 549 Collection Service does not include the Collection of Large Items through the use of Roll550 Off Containers. 551 1.56 Materials Recovery Facility (“MRF”). Any facility, designated by the 552 Contractor and approved by the City, which is designed, operated, and legally permitted 553 for the purpose of receiving, sorting, processing, storing, or preparing Recyclable 554 Materials for sale or recycling, and which has obtained and maintains during the term of 555 this Contract, valid permit(s) to accept, process and store Recyclable Materials and such 556 other materials as may be delivered by Contractor under the terms of this Contract. 557 1.57 Median Island. A dividing area, normally at curb height, between opposing 558 directions of traffic not normally located along streets. 559 1.58 Non-Collection Notice. A form developed and used by the Contractor, as 560 approved by the City, to notify Service Recipients of the reason for non-collection of 561 materials set out by the Service Recipient for Collection by Contractor pursuant to this 562 Contract.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

563 1.59 Organic Recyclable Material or “Organics”. Organics includes: Items 564 defined as “Food Waste” & “Green Waste”; compostable bags; paper coffee filters; food 565 soiled paper; food soiled cardboard paper coffee cups and cup sleeves; wooden 566 chopsticks, coffee stick stirrers, popsicle sticks, ice cream spoons, skewers, and other 567 uncoated or untreated wooden utensils; brown paper bags; food soiled paper towels; food 568 soiled newspaper; uncoated paper and cardboard “to go” containers (no metal or plastic); 569 cloth tea bags (plastic free); cardboard or paper egg cartons / cardboard berry baskets; 570 compostable utensils and plates (excluding compostable plastic utensils or plates); wine 571 corks (cork); toothpicks (wood); paper cupcake or muffin wrappers; and paper 572 plates/paper straws with no wax lining. Non acceptable materials in the Green Container 573 include: any glass; any metal; any plastic; any hazardous waste or hazardous substances; 574 plastic coated “to go” containers; plastic chopsticks; non-food soiled paper; non-food 575 soiled cardboard; human, animal and pet waste; polystyrene (Styrofoam); treated wood 576 waste; digestate and sludges; manure; biosolids; organic textiles & carpet; biodegradable 577 plastic; and wax coated containers such as milk and juice cartons or -coated paper cups. 578 1.60 Organic Recyclable Material Collection Service. The Collection of all 579 Organic Recyclable Material from Residential and City Service Units in the Service Area 580 and the delivery of that Organic Recyclable Material to an Organic Recyclable Material 581 Processing Facility.
582 1.61 Organic Recyclable Material Processing Facility. Any facility, designated by 583 Contractor, and approved by the City, which is designed, operated and legally permitted 584 for the purpose of receiving and processing Organic Recyclable Material and Large Green 585 Material which has obtained, and maintains during the term of this Contract, valid permit(s) 586 to accept and process Organic Recyclable Material, Large Green Material and such other 587 materials as may be delivered by Contractor under the terms of this Contract. 588 1.62 Prohibited Container Contaminants.
589 1.62.1 Non-Organic Recyclable Material placed in the Green Container, 590 including but not limited to, textiles and carpets, manure, biosolids, digestate, sludges, 591 non-compostable paper, Construction and Demolition Debris, Residential Garbage, 592 Exempt Waste, and Hazardous Waste.
593 1.62.2 Material placed in the Gray Container that is specifically identified 594 under the Contract for collection in the Green Container or Blue Container. 595 1.62.3 Non-Recyclable Material placed in the Blue Container. Paper 596 products and printing and writing paper may be considered acceptable and not considered 597 Prohibited Container Contaminants if they are placed in the Blue Container. 598 1.63 Recyclable Materials or “Recyclables”. Those materials that have been 599 source separated from Garbage, Green Waste or Organic Recyclable Materials that are 600 to be delivered to and processed at a MRF for diversion from landfill disposal. These ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

601 materials will be as defined by the City from time to time. Recyclable Materials being 602 Collected at the time of Contract execution include: newsprint (including inserts); mixed 603 paper (including magazines, catalogs, envelopes, junk mail, corrugated cardboard, Kraft 604 brown bags and paper, paperboard, paper egg cartons, and telephone books); glass 605 containers; aluminum beverage containers; small scrap and cast aluminum (not exceeding 606 forty (40) pounds in weight nor two (2) feet in any dimension for any single item); steel 607 including ”tin” cans and small scrap (not exceeding forty (40) pounds in weight nor two (2) 608 feet in any dimension for any single item); bimetal containers; mixed plastics such as 609 plastic bags, plastic film, plastic containers (1-7), and bottles including containers made of 610 HDPE, LDPE, PET, or PVC; aseptic containers; polystyrene; and dry cell household 611 batteries when set out for Collection in the manner prescribed herein; and those materials 612 added by the Contractor or City from time to time. Recyclable Materials may have a 613 negative scrap value, no scrap value or a positive scrap value. 614 1.64 Residential Collection Service. Residential Garbage Collection Service, 615 Residential Recycling Collection Service, Organic Recyclable Material Collection Service, 616 Large Item Collection Service, Sharps Collection Service, and Residential Used Oil 617 Collection Service.
618 1.65 Residential Recycling Collection Service. The Collection of Recyclable 619 Materials by the Contractor from Residential Service Units, including dry cell household 620 batteries when set out by the Service Recipient in heavy duty plastic bags and placed on 621 the Blue Cart, in the Service Area and the delivery of those Recyclable Materials to a 622 Materials Recovery Facility.
623 1.66 Residential Service Unit. Any Dwelling Unit in the Residential Collection 624 Service Area utilizing a Gray Container for the accumulation and set out of Residential 625 Garbage.
626 1.67 Residential Garbage. Garbage resulting from the normal activities of a 627 Residential Service Unit. Residential Garbage must be generated by and at the 628 Residential Service Unit wherein the Residential Garbage is Collected and does not 629 include items defined herein as Exempt Waste.
630 1.68 Residential Garbage Collection Service. The Collection of Residential 631 Garbage, by the Contractor, from Residential Service Units in the Service Area and the 632 delivery of that Residential Garbage to a Disposal Facility. 633 1.69 Residential Street. Residential Streets include smaller local or 634 neighborhood streets within the Service District, as designated by the City Representative. 635 1.70 Residential Used Oil Collection Service. The Collection of Used Oil in Used 636 Oil Containers and Used Oil Filters in Used Oil Filter Containers, by the Contractor, from 637 all Residential Service Units in the Service Area utilizing Used Oil and Filter Containers 638 for the accumulation and set-out of Used Oil and Used Oil Filters and the appropriate ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

639 disposition of the Used Oil and Used Oil Filters in accordance with the requirements of 640 this Contract.
641 1.71 Residential Waste. Residential Garbage, Organic Recyclable Material, 642 Recyclables, Large Items, Used Oil, and Used Oil Filters resulting from the normal 643 activities of a Residential Service Unit. Residential Waste must be generated by and at 644 the Residential Service Unit wherein the Residential Waste is Collected and does not 645 include items defined herein as Exempt Waste.
646 1.72 Residual or Residuals. Residual or Residuals means waste material 647 remaining after the processing of Organic Recyclable Material or Recyclable Material at 648 any facility designed, operated, and legally permitted for the purpose of receiving and 649 processing Organic Recyclable Material or Recyclable Material that is sent to a Disposal 650 Facility for disposal.
651 1.73 Roll-Off Collection Service. The Collection of Roll-Off Containers. 652 1.74 Roll-Off Container. A metal container with a capacity of twenty (20) or more 653 cubic yards that is normally loaded onto a motor vehicle and transported to an appropriate 654 facility.
655 1.75 Route Review. A visual inspection of contents within Containers along a 656 Hauler Route for the purpose of identifying Prohibited Container Contaminants, as 657 provided for in Section 13.04.
658 1.76 SB 1383. Chapter 13.1 (commencing with Section 42652) of Part 3 of 659 Division 30 of the California Public Resources Code, as it may be amended and as 660 implemented by the regulations of CalRecycle, together with Sections 39730.5 through 661 39730.8 of the California Health and Safety Code, as they may be amended. 662 1.77 Service Area. The area within the corporate limits of the City of Rancho 663 Cordova.
664 1.78 Service Unit. City Service Units and Residential Service Units. 665 1.79 Service Recipient. An individual receiving Collection Services. 666 1.80 Sharps. Hypodermic needles, pen needles, intravenous needles, lancets, 667 and other devices that are used to penetrate the skin for the delivery of medications. 668 Sharps must be generated by the Service Recipient and at the Residential Service Unit 669 wherein the Sharps are Collected.
670 1.81 Sharps Collection Service. The on-call Collection of Sharps from 671 Residential Service Units when such Sharps are generated by the Service Recipient at 672 such Residential Service Unit and the appropriate disposal of the Sharps. 673 1.82 Sludge. The accumulated solids, residues, and precipitates generated as 674 a result of waste treatment or processing, including wastewater treatment, water supply ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

675 treatment, or operation of an air pollution control facility, and mixed liquids and solids 676 pumped from septic tanks, grease traps, privies, or similar disposal objects or any other 677 such waste having similar characteristics or effects 678 1.83 Solid Waste. Solid Waste means all putrescible and non-putrescible solid, 679 semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, 680 industrial wastes, Construction and Demolition Debris, discarded home and industrial 681 appliances, dewatered, treated or chemically fixed sewage sludge which is not hazardous 682 waste, manure, vegetable or animal solid and semi-solid wastes, and other discarded solid 683 and semi-solid wastes. Solid Waste does not include any Hazardous Material, including 684 any hazardous waste or low-level radioactive waste regulated under Chapter 7. 6 685 (commencing with Section 25800) of Division 20 of the Health and Safety Code, or medical 686 waste. Solid Waste includes Recyclable Materials and Organic Recyclable Materials that 687 are set out for separate Collection for the purposes of Recycling or Organics Recycling, 688 and that are not landfilled.
689 1.84 Special Clean-Up Service. The periodic Collection of Large Items and other 690 materials using Roll-Off Containers by the Contractor resulting from City sponsored 691 special clean-up program events. Such Collection by the Contractor shall be limited to the 692 equivalent of twelve hundred (1,200) cubic yards in any Contract Year. 693 1.85 Street Sweeping Service. The sweeping of Residential Streets and 694 Commercial Streets, and the transportation and disposal of Sweep Waste. 695 1.86 Stable Matter. Manure and other waste matter normally accumulated in 696 stables or in livestock or poultry enclosures.
697 1.87 Sweep Waste. The accumulated waste materials generated as a result of 698 performing Street Sweeping Services. Sweep Waste includes, but is not limited to, 699 deposits of loose dirt, rocks, glass, cans, small debris, leaves, sticks, papers, yard 700 trimmings residue or any like materials that can be removed by Street Sweeping 701 operations.
702 1.88 Sweeper Route. A daily path or itinerary followed by a sweeper that has 703 been clearly divided into Residential and Commercial sections. 704 1.89 Traffic Island. Islands, some of which have handicapped access cut-outs, 705 which are usually found at street intersections whose primary function is to protect and aid 706 pedestrians from vehicles.
707 1.90 Used Oil. Any oil that has been refined from crude oil or has been 708 synthetically produced, and is no longer useful to the Service Recipient because of 709 extended storage, spillage or contamination with non-hazardous impurities such as dirt or 710 water; or has been used and as a result of such use has been contaminated with physical ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

711 or chemical impurities. Used Oil must be generated by and at the Residential Service Unit 712 wherein the Used Oil is collected. Used Oil does not include transmission fluid. 713 1.91 Used Oil Container. A plain co-poly container provided by the Contractor 714 for the accumulation of Used Oil that is at least four (4) quarts in capacity, leak-proof, has 715 a screw-on lid and has a label designating it for use as a Used Oil Container. 716 1.92 Used Oil Filter. Any oil filter that is no longer useful to the Service Recipient 717 because of extended storage, spillage or contamination with non-hazardous impurities 718 such as dirt or water, or has been used and as a result of such use has been contaminated 719 with physical or chemical impurities. Used Oil Filters must be generated by and at the 720 Residential Service Unit wherein the Used Oil Filter is collected. 721 1.93 Used Oil Filter Container. A six (6) mil poly bag with double track seal with 722 dimensions of at least fourteen and one-half (14. 5) inches by eight (8) inches with a one 723 and one-quarter (1¼) inch diameter hole above the seal, provided by the Contractor for 724 the accumulation of Used Oil Filters that has a label designating it for use as a Used Oil 725 Filter Container.
726 1.94 White Goods. Inoperative and discarded refrigerators, ranges, water 727 heaters, freezers, and other similar household appliances. 728 1.95 Work Day. Any day, Monday through Friday that is not a holiday as set 729 forth in Section 9.03 of this Contract.
730 ARTICLE 2. Term of Contract
731 2.01 Term. The Term of this Agreement will be for ten (10) years beginning on 732 January 1, 2025 and terminating on December 30, 2034. Contractor shall commence 733 performance of its Collection Services and Street Sweeping Service obligations under this 734 Agreement on January 1, 2025 (“Effective Date”).
735 2.02 Extension of Term. Contractor may request up to two, five (5) year term 736 extensions to the Initial Term, and at City’s sole option, City may grant Contractor’s 737 request to extend the term. Under no circumstances will City be obligated to extend the 738 term. Contractor must request the first five (5) year extension by January 1, 2033 in 739 order to be eligible for the term extension, and January 1, 2038 in order to be eligible for 740 the second term extension.
741 2.03 Other Provisions. The City may, at the end of the Contract or extension 742 term, as appropriate, either renegotiate the terms and conditions of the Contract with the 743 current Contractor or request proposals from qualified contractors to provide Collection 744 Services.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

745 2.04 Performance Review. Prior to a five (5) year extension a performance 746 review and financial review shall be conducted as described in Section 14.02. The cost 747 of the review shall be paid as specified in that Section. 748 ARTICLE 3. Conditions Governing Services Provided by Contractor 749 3.01 Grant of Exclusive Contract. Except as otherwise provided in this Contract, 750 the Contractor is herein granted an exclusive Contract to provide Collection Services and 751 Street Sweeping Services within the Service Area. No other Solid Waste services, 752 including commercial collection services and Roll-Off Collection Services, shall be 753 exclusive to the Contractor.
754 3.02 Sale or Donation of Recyclable Materials by Service Recipients. Nothing in 755 this Contract shall preclude a Service Recipient from transporting, selling or donating their 756 Recyclable Materials to a private or public entity provided that such entity does not charge 757 the Service Recipient a fee or service charge of any type related to the sale or donation 758 of the Recyclable Material.
759 3.03 Gardening or Landscaping Services. Green Waste removed from a 760 premises by a gardening, or landscaping, or tree trimming company as an incidental part 761 of a total service by that company rather than a hauling service is not part of this exclusive 762 Contract.
763 ARTICLE 4. Franchise Fees and Payments
764 4.01 Reimbursement Fee. Contractor shall reimburse the City in the amount of 765 one hundred and fifty thousand dollars ($150,000), which Contractor and City agree 766 represents a reasonable reimbursement to City for staff, legal and consulting costs 767 incurred by the City in the negotiation of the Contract. The reimbursement fee is a one768 time payment to the City, paid within 60 days of execution of the Contract. 769 4.02 Franchise Fee. Contractor shall make payment to the City of a franchise fee as specified in this Section 4.02. Payment to the City shall be due on the fifteenth (15th 770 ) 771 day of the month following the month the Gross Revenues are collected. Each such 772 payment shall be accompanied by an accounting, which sets forth Contractor’s Gross 773 Revenue collected during the preceding month.
774 4.02.1 The franchise fee shall be a percentage of Contractor’s Gross 775 Revenues collected each month under the terms of this Contract. Revenue received by 776 the Contractor from the sale of recyclable materials and revenues from Street Sweeping 777 Fees shall not be considered as Gross Revenues for purposes of the calculation of 778 franchise fees. The franchise fee percentage shall be eight percent (8%). Should the City 779 change the franchise fee at any point during this Contract, the Contractor has the right to ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

780 adjust the service rates to account for that change. The City must approve any changes 781 to the service rates before the adjusted rates can be charged to the Service Recipients. 782 4.02.2 No acceptance by City of any payment shall be construed as an 783 accord that the amount is in fact the correct amount, nor shall such acceptance of payment 784 be construed as a release of any claim City may have against Contractor for any additional 785 sums payable under the provisions of this Contract. All amounts paid shall be subject to 786 independent audit and recalculation by City. If, after the audit, such recalculation indicates 787 an underpayment of more than five percent (5%) of the actual amount owed, Contractor 788 shall pay to City the amount of the underpayment and shall reimburse City for all 789 reasonable costs and expenses incurred in connection with the audit and recalculation, 790 within ten (10) days of receipt of written notice from City that such is the case. If, after 791 audit, such recalculation indicates an underpayment of five percent (5%) or less or an 792 overpayment, City shall notify the Contractor in writing of the amount of the overpayment 793 or underpayment, adjusted for all reasonable costs and expenses incurred in connection 794 with the audit and recalculation. Contractor may adjust the amount of the next franchise 795 payment due following receipt of such notice by the amount specified therein. 796 4.02.3 In the event the franchise fee or any other City fee is determined by 797 a court to be excessive, invalid or unenforceable, then: (i) Contractor shall not be obligated 798 to remit the future portion of the franchise fee or City fee deemed excessive, invalid, or 799 unenforceable to the City; (ii) to the extent the Customers are entitled to a reimbursement 800 of any excessive, invalid or unenforceable franchise fee or City fees, and City is required 801 to reimburse Contractor in the amount of the franchise fee or City fees previously remitted 802 to City that have been deemed excessive, invalid or unenforceable, thereafter, Contractor 803 shall directly reimburse all Customers entitled to reimbursement in the amount attributable 804 to each Customer account. In no event shall Contractor retain any portion of the fees 805 reimbursed by City; (iii) to the extent the Customers are entitled to a reimbursement of any 806 excessive, invalid, or unenforceable franchise fee or City fees, and City is required by a 807 court to directly reimburse Customers, Contractor shall assist City in identifying all 808 Customers entitled to a reimbursement, quantifying the reimbursement amount 809 attributable to each Customer account, and obtaining and providing to City any other 810 information needed to satisfy the obligations imposed by a court; and (iv) City and 811 Contractor will, within thirty (30) days following such court decision meet and confer to 812 negotiate in good faith and using reasonable efforts to attempt to agree on modifications 813 to the Agreement.
814 4.03 Annual Payment for City Services. Contractor shall fund additional services 815 in the amount of four hundred fifty thousand dollars ($450,000) per year. That amount shall 816 be paid to the City on or before April 1 of each Contract Year. These funds may be 817 designated for the following services, or such other services as City may determine:
818 • Litter Cleanup Program;
ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

819 • Street Maintenance;
820 • Household Hazardous Waste Removal and Recycling Program. 821
822 The amount of expenditure for each program listed above, or additional programs not 823 listed, is completely at the discretion of the City. 824 4.04 Late Payments. In the event Contractor fails to pay the City any amounts 825 owed under this Article on or before the applicable due date, then in addition to the 826 amounts already owed, Contractor shall pay a penalty as specified in Article 23, except 827 to the extent that such lateness is due to extenuating circumstances. Contractor must 828 submit any request for approval of a late payment in writing at least five (5) Business 829 Days prior to the date on which fees are due, and the request must be accompanied by 830 a written explanation of the extenuating circumstances and adequate supporting 831 documentation. The City shall not unreasonably withhold its approval and shall notify 832 Contractor within three (3) Business Days of receiving the request whether and to what 833 extent the request has been approved.
834 ARTICLE 5. Collection Service Rates
835 5.01 Collection Service Rates. Contractor is solely responsible for determining the 836 rates it will charge for providing the Collection Services, provided that Contractor shall not charge 837 any Service Recipient an amount that exceeds the applicable Maximum Service Rate set forth in 838 Exhibit 1, which may only be adjusted as provided in this Agreement. 839 5.02 Maximum Service Rate Adjustment. The Maximum Service Rates in 840 Exhibit 1 shall be adjusted on July 1, 2025, and annually thereafter in accordance with 841 Section 5.03. No other adjustments shall be made except as provided in Section 28.01. 842 5.03 CPI Adjustment Calculation. Beginning on July 1, 2025, and each July 1 843 thereafter, rates shall be adjusted using the CPI Adjustment Calculation. The annual 844 adjustment shall be based on the percentage change in the 12 month average of the CPI 845 between the prior preceding calendar year ending December 31st and the preceding 846 calendar year ending December 31st. Therefore, the first rate adjustment effective July 847 1, 2025 will be based on the percentage change between the annual average of the CPI 848 for the year ended December 31, 2023 and the annual average of the CPI for the calendar 849 year ended December 31, 2024. The index sets published by the United States 850 Department of Labor, Bureau of Labor Statistics. Consumer Price Index series, All Urban 851 Consumers: Water and Sewer and Trash Collection Services, U. S. City Average 852 (CUSR0000SEHG). Contractor shall submit supporting documentation to justify the CPI 853 adjustment by April 1, 2025, and annually on April 1 thereafter. Late submittals will not be 854 accepted, and Contractor will forfeit a rate adjustment for that Contract year. The City shall ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

855 evaluate the documentation submitted by the contractor and provide a written response 856 within 30 calendar days either approving or denying the annual rate adjustment. 857 5.03.1 Annual Rate Cap on Maximum Service Rates. In any Rate Year that 858 the calculation of the CPI-U exceeds five percent (5%), the total adjustment for that year 859 will equal five percent (5%) and the rollover amount will be added to the rate adjustment 860 percentage in the following year, or any subsequent year. If the CPI-U is negative (after 861 accounting for any applicable rollover percentages from prior years), there will be no CPI862 U adjustment for that year. 863 5.03.2 Rounding. Adjustments to the overall Service Rates shall be made 864 only in units of one cent ($0.01). Fractions of less than one cent ($0.01) shall not be 865 considered in making adjustments. All CPI indices shall be rounded at two (2) decimal 866 places for the adjustment calculations.
867 5.04 Extraordinary Adjustments. Contractor and City acknowledge that there 868 may be infrequent extraordinary events, including Change of Law, which, although they 869 do not prevent either party from performing, and thus do not implicate the force majeure 870 provisions hereof, nevertheless increase the cost of providing services above the Section 871 5.02 Maximum Service Rate Adjustment. The obligation of the parties in such event is to 872 negotiate in good faith in arriving at an appropriate adjustment in rates. Accordingly, at its 873 option, Contractor may apply to the City not more frequently than once every Contract 874 Year, for an extraordinary rate adjustment should an event or circumstance arise which 875 negatively impacts the economic operation of Contractor and which is in excess of the rate 876 adjustment resulting from the application of Section 5.03. An extraordinary adjustment in 877 rates will be deemed justified if it is necessary for the Contractor to make a substantial 878 change in its operations, or substantial capital expenditure or investment to perform its 879 obligations under this Agreement due to the occurrence of an event or circumstance which 880 is beyond the reasonable control of Contractor. Extraordinary rate adjustments shall only 881 be effective after approval by the City Council. For the purposes of this Section, 882 fluctuations in Recyclable Material revenue shall not be considered as a basis for an 883 Extraordinary Adjustment.
884 5.04.1 Contractor’s Burden. In the event of such an application for an 885 extraordinary rate increase, it is understood that the Contractor shall have the burden of 886 demonstrating to the reasonable satisfaction of the City the basis for the extraordinary 887 increase cost. Contractor shall bear the burden of justifying its request and shall be solely 888 responsible for the cost of preparing and submitting sufficient documentation in support of 889 its request. City in its sole reasonable discretion may request Contractor to provide any 890 additional information it deems necessary to fully evaluate the request, and Contractor ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

891 shall be solely responsible for the cost of providing such additional information. Contractor 892 shall allow City to review a report of its annual revenues and expenses for the services 893 provided in the City prepared by a Certified Public Accountant or a licensed public 894 accountant, which shall have been prepared in compliance with Rule 58 of the “Rules and 895 Regulations of the State Board of Accountancy,” as established by the California Code of 896 Regulations, Title 16, Chapter I (“Financial Statements”). Such Certified Public Accountant 897 or licensed public accountant shall be entirely independent of the Contractor and shall 898 have no financial interest whatsoever in the business of the Contractor. City shall have 899 the right to review this information in connection with the City’s review of Contractor’s 900 extraordinary rate adjustment request. With respect to any Financial Statements or any 901 other non-public information (“Confidential Information”), City agrees that: (a) it will hold in 902 confidence all Confidential Information; (b) it will restrict the disclosure of Confidential 903 Information within its own organization and to its agents or representatives who need to 904 know the Confidential Information for the purposes of the request; (c) it will not disclose 905 Confidential Information to any third party, excepting those subject to subsection (b), 906 without the prior written consent of the Disclosing Parties; (d) it will not copy and/or 907 reproduce any Confidential Information without the prior written approval of the Contractor; 908 and (e) it will not use Confidential Information except as required for consideration of the 909 request. City may consider increases or decreases in Contractor’s total revenues and total 910 cost of services when reviewing an extraordinary rate adjustment request. The City will 911 inform the Contractor upon receiving a California Public Records Act request or a 912 subpoena for the Confidential Information by written notice delivered to the Contractor 913 (“Notice”). The Contractor will have five (5) calendar days from the date of the Notice to 914 inform the City in writing of its intent to assert its confidentiality rights under this 915 Agreement. The Contractor will have fifteen (15) calendar days from the date of the Notice 916 to seek judicial assistance to prevent the disclosure of the Confidential Information. If the 917 Contractor fails to act within the five (5) or fifteen (15) calendar day windows described 918 above, the City may disclose the requested Confidential Information to the requestor or 919 subpoenaing party. In the event Contractor seeks a court order to stay or enjoining the 920 disclosure of the Records, Contractor agrees to indemnify and hold harmless the City, its 921 Council, elected and appointed board or commission members, officers, employees, 922 volunteers and agents (collectively, "Indemnitees") from and against any and all loss, 923 liability, penalty, forfeiture, claim, demand, action, proceeding or suit in law or equity of 924 any and every kind and description, whether judicial, quasi-judicial or administrative in 925 nature, arising or resulting from or in any way connected with the subject CPRA or FOIA 926 request for the Records. This Indemnity shall survive the expiration or termination of this 927 Agreement.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

928 5.04.2 Review Costs. At the time of its request, Contractor shall also 929 submit a payment to the City of Twenty-Five Thousand Dollars ($25,000) to defray the 930 City’s costs to review the request. In the event the City’s reasonable costs exceed that 931 amount, Contractor shall reimburse the City for any documented amount in excess. 932 5.04.3 Meet and Confer. The City and Contractor agree to meet and 933 confer regarding the request and to negotiate in good faith regarding the appropriateness 934 of the requested adjustment.
935 5.04.4 City Review; Approval. City shall review the Contractor’s request 936 and, in the City’s sole and reasonable judgment, make the final determination as to 937 whether an adjustment to the Maximum Service Rates will be made, and, if an adjustment 938 is permitted, the appropriate amount of the adjustment. Approval of the City Council shall 939 be required for any Extraordinary Adjustments. The City shall notify Contractor of its 940 decision within ninety (90) calendar days regarding whether it accepts Contractor’s 941 request. Except as provided herein, any such change approved by the City shall not be 942 implemented until January 1 of the next Rate Year unless a different time frame is 943 approved by the City Council.
944 5.05 Procedures in Event of Invalidation of Rate Adjustment. In the event that 945 City is unable by operation of Applicable Law to approve or implement a rate increase 946 under this Article 5, or some or all of the Maximum Service Rates are disallowed by 947 operation of Applicable Law, Contractor will have the right, within thirty (30) calendar days 948 after notice of any such inability to approve or invalidate an approved rate increase, to 949 request, in writing, that City negotiate in good faith regarding reductions in programs, 950 services, or fees to compensate for any negative impact from the unapproved or 951 invalidated rate increase. If City fails to commence negotiations in good faith or 952 negotiations are not completed within forty-five (45) calendar days following the date of 953 receipt of Contractor’s request, either party may terminate this Agreement no earlier than 954 one hundred and eighty (180) calendar days after written notice to the other. 955 ARTICLE 6. Collection Service Billing
956 6.01 Responsibility for Service Billing and Collection. The Contractor shall be 957 solely responsible for the billing and collection of payments for all services it provides 958 under this Contract.
959 6.02 Invoices. Contractor shall prepare and send out invoices, by either U. S. 960 mail or electronic mail, to each Service Recipient in advance of all services provided by 961 Contractor under this Agreement. If sent by mail, invoices for each billing period shall 962 be placed in a separate envelope accompanied by a self-addressed return envelope.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

963 All invoices shall include Contractor’s e-mail address and include directions for payment 964 by payment by check, credit card, or Automated Clearing House (ACH) debit, and shall 965 include or be accompanied by a complete billing statement showing all charges and all 966 services provided. City shall have the right to request that Contactor revise the format 967 of all invoices and billing statements upon reasonable notice to Contractor. 968 6.03 Timing; Frequency. Contractor shall not initiate billing to any Service Unit 969 sooner than the first day of the service period of Collections Services covered by the 970 invoice. Contractor shall invoice Service Recipients on a bi-monthly basis. No invoice 971 shall be due and payable sooner than the last day of the billing period. 972 6.04 Partial Month Service. If, during a month, a Service Unit is added to or 973 deleted from Contractor’s Service Area, Contractor shall pro-rate billing to the Service 974 Recipient on a weekly basis, meaning one-fourth of the applicable rate found in Exhibit 975 1 multiplied by the number of weeks of service provided by Contractor. 976 6.05 Overpayments. Contractor shall refund or issue a service credit for 977 overpayments by Service Recipients no later than thirty (30) calendar days after 978 Contractor discovers or is notified of the overpayment. Contractor shall refund every 979 overpayment that: (1) exceeds two hundred dollars ($200.00) or the amount of Service 980 Recipient’s typical invoice, whichever is less; or (2) is due to the Service Recipient 981 closing the account prior to the end of the billing period. Contractor may issue a service 982 credit of no more than two (2) years against future invoices for all other overpayments. 983 6.06 Delinquent Service Accounts. Contractor shall report all Service Recipients 984 whose accounts are delinquent by more than sixty 60 calendar days to the Contract 985 Administrator annually by July 1st, so the City may begin the property tax lien process. 986 6.07 Contractor’s Reservation of Legal Rights and Remedies. Notwithstanding 987 any other provision of this Article, Contractor reserves its right to, and may take such 988 action as is legally available to Contractor, to collect or cause collection of past due 989 invoice amounts; provided, however, that Contractor shall never discontinue Collection 990 Services to any Service Unit.
991 ARTICLE 7. Diversion Requirements
992 7.01 Minimum Requirements. City requires Contractor to achieve a minimum 993 annual Franchised Diversion Rates of 45% in 2025, 46% in 2026, 47% in 2027, 48% in 994 2028, 49% in 2029, 50% in 2030, 51% in 2031, 52% in 2032, and 53% in 2033 and 2034 995 (the “Minimum Annual Franchise Diversion Rate”) Contractor must provide 996 documentation to City within forty-five (45) days of the end of each calendar year stating 997 and supporting that calendar year's Franchised Diversion Rate as set forth in Section 998 7.02.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

999 7.01.2 If City fails to comply with CalRecycle diversion standards 1000 due to Contractor’s failure to implement diversion programs and/or public education 1001 programs provided for in this Agreement and/or Contractor fails to achieve the Minimum 1002 Annual Franchised Diversion Rate as described in Section 7.01, Contractor must submit 1003 a corrective action plan to assist City to comply with Section 41780 and other Applicable Laws, by May 15th 1004 following the year the diversion requirements were not met. 1005 Contractor’s corrective action plan is subject to approval by the Contract Administrator, 1006 and to be approved must constitute a good faith corrective action plan to allow City to 1007 comply with Public Resources Code section 41780 and other Applicable Laws. 1008 Implementation of the corrective action plan will be at Contractor’s sole cost and 1009 expense. If Contractor fails to submit a corrective action plan acceptable to the City, 1010 Contractor may be subject to Administrative Charges as specified in Section 23.04. 1011 Provided that Contractor has implemented all required Contractor diversion and public 1012 education programs required under this Agreement, and has submitted a corrective 1013 action plan acceptable to the City, Contractor’s failure to meet the Minimum Annual 1014 Franchised Division requirement under Section 7.01 shall not constitute an event of 1015 default under this Agreement.
1016 7.01.3 If Contractor fails to meet its Minimum Annual Franchised Diversion 1017 Rate or if City fails to comply with CalRecycle diversion standards, and Contractor has 1018 implemented all required Contractor diversion programs, the City may direct Contractor 1019 to modify its programs, or implement new diversion programs. Any such modification of 1020 Contractor’s existing diversion programs or addition of new diversion programs done at 1021 the City’s request would be in accordance with Section 28.01. 1022 7.01.4 Notwithstanding any other provision of this Agreement to the 1023 contrary, where CalRecycle has determined that there are no commercially viable 1024 markets for a specific type of Recyclable Materials, or with written notice to City, 1025 Contractor is unable to identify a market for one or more Recyclable Materials despite 1026 the exercise of commercially reasonable efforts to process and market the material, and 1027 determines, in the interest of safeguarding public health, to dispose of the Recyclable 1028 Material(s), such a determination shall not constitute a failure to implement service, a 1029 failure to implement a program, or an event of default hereunder. Viable markets include 1030 those that may charge a fee for accepting a Recyclable Material. 1031 7.02 Franchise Diversion Rate Calculation. For purposes of determining 1032 whether Contractor has met its Minimum Annual Franchised Diversion Rate 1033 requirements under this Agreement, City and Contractor agree the annual Franchised 1034 Diversion Rate will be calculated using the following formula: “the tons of materials 1035 Collected by Contractor from Collection Services in City that are delivered to a Materials 1036 Recovery Facility, Organic Recyclable Material Processing Facility, or any other 1037 processing facility, or that are otherwise handled in a manner that counts as diversion 1038 under applicable CalRecycle regulations (in each case, net of all residue from 1039 processing), divided by the total tons of materials Collected in the City by Contractor ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1040 from the provision of Collection Services in each Calendar Year.” The processing 1041 residue shall be based on the annual percentage rate reported for the processing facility, 1042 or as otherwise agreed to by the City and Contractor. Under no circumstances shall 1043 recovered material be used as alternative daily cover, land applied, or otherwise used 1044 in a manner that does not qualify that material as diversion under CalRecycle 1045 regulations.
1046 7.03 Warranties and Representations. Contractor warrants that it is aware of 1047 and familiar with City's residential waste stream, and that it has the ability to and must 1048 provide sufficient programs and services designed to ensure City will meet or exceed 1049 the diversion requirements as set forth in Section 7.01, as well as the diversion 1050 requirements of the Applicable Laws and that it will do so without imposing any costs or 1051 fees other than those set forth on Exhibit 1, except as provided in Section 28.01. 1052 7.04 Mutual Cooperation. City and Contractor will reasonably cooperate in good 1053 faith with all efforts by each other to meet City's diversion and other compliance 1054 requirements imposed by the Applicable Laws, and to meet Contractor’s obligations 1055 under this Article 7. In this regard, City's obligations include, without limitation, making 1056 such petitions and applications as may be reasonably requested by Contractor for time 1057 extensions in meeting diversion goals, or other exceptions from the terms of Applicable 1058 Laws, and to agree to authorize such changes to Contractor’s Solid Waste Collection 1059 Services, or Collection Service programs as may be reasonably requested by Contractor 1060 in order to achieve the minimum requirements of this Article 7. 1061 7.05 Guarantee. Except for programs currently required by Applicable Law but 1062 not set forth in this Agreement, or programs Contractor is expressly instructed by City 1063 not to implement, or services which a Service Recipient refuses to accept, Contractor 1064 guarantees that it will implement the diversion programs set forth in this Agreement such 1065 that: (i) Contractor and City will at all times be in compliance with the requirements of 1066 the Applicable Laws, and (ii) City will meet or exceed the diversion requirements 1067 (including, without limitation, amounts of Garbage to be diverted, time frames for 1068 diversion, and any other requirements) set forth in this Article 7 and the Applicable Laws, 1069 and all amendments thereto. In this regard Contractor agrees that it will, in addition to 1070 any other Agreement requirement, at its sole cost and expense:
1071 7.05.1 Assist City in responding to inquiries from CalRecycle or any other 1072 regulatory agency;
1073 7.05.2 Assist City in preparing for, and participating in, CalRecycle’s biannual 1074 review of City's SRRE pursuant to Public Resources Code section 41825; 1075 7.05.3 Assist City in applying for any extension, including under Public Resources 1076 Code section 41820. 5, if so directed by City;
ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1077 7.05.4 Assist City in any hearing conducted by CalRecycle, or any other regulatory 1078 agency, relating to City's compliance with the Applicable Laws; and 1079 7. 05.5 Provide City with Recycling, source reduction, and other technical 1080 assistance as may be needed to comply with the Applicable Laws. 1081 ARTICLE 8. Service Units
1082 8.01 Service Units. Service Units for Collection Services shall include all the 1083 following categories of premises which are in the Service Area as of January 1, 2025 1084 and all such premises which may be added to the Service Area by means of annexation, 1085 new construction, or as otherwise set forth in this Contract during the term of this 1086 Contract:
1087 8. 01.1 Residential Service Units
1088 8. 01.2 City Service Units (Exhibit 3)
1089 8. 01.3 Any question as to whether a premises falls within one of these 1090 categories shall be determined by the Contract Administrator and the determination of 1091 the Contract Administrator shall be final.
1092 8.02 Service Unit Changes. The City and Contractor acknowledge that during 1093 the term of this Contract it may be necessary or desirable to add or delete Service Units 1094 for which Contractor will provide Service.
1095 8.02.1 Additions and Deletions. Contractor shall provide services 1096 described in this Contract to new Service Units in Contractor’s Service Area within five 1097 (5) Work Days of receipt of notice from the City or new Service Unit to begin such 1098 Service.
1099 8.03 Annexation. If during the term of the Contract, additional territory is 1100 acquired by the City through annexation, Contractor agrees to provide Collection 1101 Services in such annexed area in accordance with the provisions and service rates set 1102 forth in this Contract. Such Collection Services shall begin within five (5) Work Days of 1103 receipt of written notice from the City. Contractor shall not begin Collection Service 1104 without written authorization from the City.
1105 8.04 Route Map Update. Contractor shall revise the Service Unit route maps to 1106 show the addition of Service Units added due to annexation and shall provide such 1107 revised maps to the Contract Administrator as requested. 1108 ARTICLE 9. General Requirements
1109 9.01 Service Standards. Contractor shall perform all Collection Services and 1110 Street Sweeping Services under this Contract in a thorough and professional manner. 1111 Collection Services described in this Contract shall be performed regardless of weather ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1112 conditions or difficulty of Collection. Street Sweeping Services shall be performed 1113 regardless of weather conditions except when Contract Administrator temporarily 1114 removes streets from the schedule due to inclement weather pursuant to Section 17.15. 1115 9.02 Labor and Equipment. Contractor shall provide and maintain all labor, 1116 equipment, tools, facilities, and personnel supervision required for the performance of 1117 Contractor’s obligations under this Contract. Contractor shall at all times have sufficient 1118 backup equipment and labor to fulfill Contractor’s obligations under this Contract. No 1119 compensation for Contractor’s services or for Contractor’s supply of labor, equipment, 1120 tools, facilities or supervision shall be provided or paid to Contractor by City or by any 1121 Service Recipient except as expressly provided by this Contract. 1122 9.03 Holiday Service. The City observes Thanksgiving Day, December 25, and 1123 January 1 as legal holidays. Contractor shall not be required to provide Collection 1124 Services or Street Sweeping Service, or to maintain office hours on the designated 1125 holidays. In any week in which one of these holidays falls on a week day, Residential 1126 and City Collection Services, as appropriate, and Street Sweeping Services for the 1127 holiday and each Work Day thereafter will be delayed one Work Day for the remainder 1128 of the week with normally scheduled Friday Collection Services being performed on 1129 Saturday.
1130 9.04 Inspections. The City shall have the right to inspect the Contractor’s 1131 facilities, Street Sweeping vehicles and Collection vehicles, and their contents, at any 1132 time while operating inside or outside the City.
1133 9.05 Spillage and Litter. The Contractor shall not litter premises in the process 1134 of providing Collection Services or Street Sweeping Services or while its vehicles are on 1135 the road. The Contractor shall transport all materials Collected under the terms of this 1136 Contract in such a manner as to prevent the spilling or blowing of such materials from 1137 the Contractor’s vehicle. The Contractor shall exercise all reasonable care and diligence 1138 in providing Collection Services to prevent spilling or dropping of Solid Waste and shall 1139 immediately, at the time of occurrence, clean up such spilled or dropped Solid Waste. 1140 Contractor shall cause all Sweep Waste to be transported in such a manner as to prevent 1141 the spilling or blowing of waste from the transporting vehicle. Contractor shall exercise 1142 all reasonable care and diligence in providing Street Sweeping Services to prevent 1143 spilling or dropping of Sweep Waste during collection activity and shall immediately, at 1144 the time of occurrence, clean up such spilled Sweep Waste. 1145 9.05.1 The Contractor shall not be responsible for cleaning up unsanitary 1146 conditions caused by the carelessness of the Service Recipient; however, the Contractor 1147 shall clean up any materials or residue that are spilled or scattered by the Contractor or 1148 its employees.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1149 9.05.2 Equipment oil, hydraulic fluids, spilled paint, or any other liquid or 1150 debris resulting from the Contractor’s operations or equipment repair shall be covered 1151 immediately with an absorptive material and removed from the street surface. When 1152 necessary, Contractor shall apply a suitable cleaning agent to the street surface to 1153 provide adequate cleaning.
1154 9.05.3 The above paragraphs notwithstanding, Contractor shall clean up 1155 any spillage or litter caused by Contractor within two (2) hours upon notice from the City. 1156 9.05.4 To facilitate such cleanup, Contractor’s vehicles shall always carry 1157 sufficient quantities of petroleum absorbent materials along with a broom and shovel. 1158 9.06 Ownership of Materials.
1159 9.06.1 Title to Residential Waste, City Waste and Recyclable Materials 1160 shall pass to Contractor at such time as said materials are placed in the Contractor’s 1161 Collection vehicle.
1162 9.06.2 Title to material Collected as part of Special Clean-up Service shall 1163 pass to Contractor at the time the material is placed in the Roll-Off Container or other 1164 Collection vehicle or container approved for use in the Special Clean-Up Service event. 1165 9.06.3 Title to material Collected as part of Debris Collection Service shall 1166 pass to Contractor at such time as said materials are placed in the Contractor’s 1167 Collection vehicle.
1168 9.06.4 Title to Sweep Waste shall pass to Contractor at such time as said 1169 materials are placed in Contractor’s street sweeping vehicle. 1170 9.07 Commingling of Materials.
1171 9.07.1 Recyclable Materials. Contractor may not at any time commingle 1172 Recyclable Materials Collected pursuant to this Agreement with any other material type 1173 Collected by Contractor without the express prior written authorization of the Contract 1174 Administrator.
1175 9.07.2 Organic Recyclable Material. Contractor may not at any time 1176 commingle Organic Recyclable Material Collected pursuant to this Agreement with any 1177 other material type Collected by Contractor, without the express prior written 1178 authorization of the Contract Administrator.
1179 9.07.3 Non-City Garbage. Contractor shall not at any time commingle any 1180 materials collected in the City with any materials collected outside of the City. 1181 9.08 Recyclable Materials and Organic Recyclable Material Contamination. 1182 Contractor must offer the Service Recipients the correct combination of Cart and Bin ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1183 sizes as necessary, that matches their unique service needs to reduce contamination of 1184 Recyclable Materials and Organic Recyclable Materials. Contractor is only required to 1185 collect and process Recyclable Materials if they have been separated by the Service 1186 Recipient from Garbage and Organic Recyclable Materials and will only be required to 1187 collect Organic Recyclable Material if it has been Source Separated by the Service 1188 Recipient from Garbage and Recyclable Materials.
1189 Contractor’s route collection personnel will report to Contractor’s supervisors if 1190 they observe potential contamination problems, and/or insufficient collection capacity. 1191 For purposes of determining if Recyclable Materials or Organic Recyclable Material are 1192 deemed to be contaminated, if, by visual or digital inspection, Recyclable Materials are 1193 commingled with ten percent (10%) by weight or volume of Garbage or Organic 1194 Recyclable Material, or if, by visual inspection, Organic Recyclable Material is 1195 commingled with three percent (3%) by volume of Garbage or Recyclable Materials, 1196 then Recyclable Materials and/or Organic Recyclable Material will be deemed to be 1197 contaminated and Contractor may take the steps in Section 9.09. 1198 9.09 Recyclable Materials and Organic Recyclable Material Contamination 1199 Protocols.
1200 9.09.1 Contractor shall document Prohibited Container Contaminants, as 1201 set forth in Section 1.62 with still pictures or video, and must notify the Service Recipient 1202 of the Prohibited Container Contaminants and proper procedures for sorting Recyclable 1203 Materials and Organic Recyclable Materials in person through the application of a Non1204 Collection Notice, or by electronic communication. If Contractor does not possess an 1205 email address or phone number for the Service Recipient, Contractor may provide a 1206 written communication through U. S. mail, which shall include a request for an email 1207 address or phone number for future notifications.
1208 9.09.2 Contractor may, at its discretion, Collect the Container as 1209 Recyclable Materials, Organic Materials, or as Garbage. Service Recipient may be 1210 charged the City-approved Contamination Charge set forth in Exhibit 1. The Service 1211 Recipient will receive, upon request of Service Recipient or the City, one courtesy waiver 1212 of the Contamination Charge.
1213 9.09.3 If necessary, Contractor may increase Service Recipient’s Garbage 1214 Container size or frequency of Collection if Service Recipient has three (3) or more 1215 Contamination Charges in any twelve (12) month period, or as otherwise determined by 1216 City Contract Administrator. Prior to requiring an additional (or larger) Container or 1217 change in collection frequency, Contractor’s representative must first attempt to contact 1218 the Service Recipient by phone, U.S. mail, e-mail, other electronic means to ensure that 1219 they have the appropriate level of service for proper collection of Recyclable Materials, 1220 Organic Recyclable Materials, and Garbage.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1221 9.10 Disputes Over Excess Contamination Charges.
1222 9.10.1 If Service Recipient disputes an action undertaken by Contractor as 1223 described above, which must be within 30 days of the disputed action, Contractor shall 1224 initially use good faith efforts to informally resolve the dispute. 1225 9.10.2 If not resolved within ten (10) Business Days, Contractor shall 1226 temporarily halt any Contamination Charge and/or increased service resulting from 1227 increasing the Container size or collection frequency until the dispute is resolved in 1228 accordance with this Section. Contractor may request a ruling by the Administrator to 1229 resolve the dispute. A request by Contractor to the Contract Administrator to rule on 1230 any such dispute must be filed within ten (10) Business Days of Contractor’s halting of 1231 its actions, and must include written documentation and digital/visual evidence of 1232 ongoing overall problems.
1233 9.10.3 The Contract Administrator may request a meeting (in person or 1234 phone) with both the Service Recipient and Contractor to resolve the dispute. If Contract 1235 Administrator requests a meeting and Service Recipient does not respond to Contract 1236 Administrator within thirty (30) Business Days of request by Contractor to Contract 1237 Administrator to rule on any such dispute, Contractor may charge Service Recipient the 1238 prior halted contamination charge and/or increased Service Rate from the date on which 1239 the increased services (e.g., increasing the Container number, size or collection 1240 frequency) commenced at rates as set forth in the Exhibit 1 and dispute will be final. 1241 9.10.4 Following a meeting between Contract Administrator, Service 1242 Recipient, and Contractor, the Contract Administrator will rule on the dispute within ten 1243 (10) Business Days, and the Contract Administrator’s decision on resolving the dispute 1244 between and Service Recipient will be final. If the Contract Administrator rules in favor 1245 of the Service Recipient, Contractor will credit the disputed contamination charges or 1246 increased Service Rate. If the Contract Administrator rules in favor of Contractor, 1247 Contractor may charge Service Recipient the prior halted contamination charge and/or 1248 increased Service Rate from the date on which the increased services (e.g., increasing 1249 the Container number, size or collection frequency) commenced at rates as set forth in 1250 Exhibit 1.
1251 9.11 Plan of Correction. If Contractor fails to follow the Recyclable Materials 1252 and Organic Recyclable Material Contamination procedures as set forth in this Article, 1253 Contractor shall prepare and submit to the Contract Administrator a plan of correction 1254 within fifteen (15) Business Days of demand from the City. Upon approval by the plan 1255 of correction by the Contract Administrator, Contractor shall implement the plan of 1256 correction.
1257 9.12 Recyclable Material and Organic Recyclable Material Capacity. Contractor 1258 shall guarantee sufficient processing capacity for all Recyclable Materials and Organic ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1259 Recyclable Materials for the term of the Agreement using at the Contractor’s designated 1260 Material Recovery Facility and Organic Recyclable Material Processing Facility. Should 1261 Contractor’s proposed Disposal Facility be used, Contractor shall guarantee sufficient 1262 disposal capacity for the term of the Agreement.
1263 9.13 Regulations and Record Keeping. Contractor must comply with emergency 1264 notification procedures required by Applicable Laws and regulatory requirements. All 1265 records required by regulations must be maintained at Contractor’s facility. These 1266 records must include waste manifests, waste inventories, waste characterization 1267 records, inspection records, incident reports, and training records. 1268 9.14 Transition Plan. Contractor must adhere to the Transition Plan included in 1269 the Contractor’s Proposal as Exhibit 6.
1270 ARTICLE 10. Residential Collection Service
1271 10.01 Residential Collection Service. These services shall be governed by the 1272 following terms and conditions:
1273 10.02 Conditions of Service. The Contractor shall provide Residential Collection 1274 Service to all Residential Service Units in the Service Area whose; Residential Garbage 1275 is properly containerized in Gray Containers, Recyclable Materials are properly 1276 containerized in Blue Containers, except as set forth in Section 10.08.1, and Organic 1277 Recyclable Material is properly containerized in Green Containers, except as set forth 1278 in Section 10.09.1, where the Gray, Blue, and Green Containers have been placed within 1279 three (3) feet of the curb, swale, paved surface of the public roadway, closest accessible 1280 roadway, or other such location agreed to by the Contractor and Service Recipient, that 1281 will provide safe and efficient accessibility to the Contractor’s Collection crew and 1282 vehicle.
1283 10.03 On-Premises Service. Notwithstanding any term or definition set forth in 1284 this Contract, Contractor shall provide on-premises Collection of Residential Garbage, 1285 Recyclable Materials, and Organic Recyclable Materials to a Residential Service Unit if 1286 all adult Service Recipients residing therein have disabilities that prevent them from 1287 setting their Gray, Blue or Green Container at the curb for Collection and if a request for 1288 on-premises service has been made to, and approved by, the Contract Administrator in 1289 the manner required by City. The Contract Administrator shall notify the Contractor in 1290 writing of any Residential Service Units requiring on-premises service along with the 1291 date such service is to begin. No additional monies shall be due to the Contractor for the 1292 provision of on-premises service.
1293 10.03.1 Collection Day. Contractor shall provide on-premises 1294 Collection Service on the same Work Day that curbside Collection Service would 1295 otherwise be provided to the Residential Service Unit.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1296 10.04 Frequency and Scheduling of Service.
1297 10.04.1 Residential Garbage and Organic Recyclable Material 1298 Collection Service shall be provided one (1) time per week on a scheduled route basis. 1299 Residential Recycling Collection Service, including Residential Used Oil Collection 1300 Service, and dry cell battery collection, shall be provided one (1) time every other week 1301 and shall be scheduled so that a Residential Service Unit receives Residential Garbage 1302 Collection Service, Residential Recycling Collection Service, and Organic Recyclable 1303 Material Collection Service, including Residential Used Oil Collection Service, on the 1304 same Work Day.
1305 10.05 Hours and Days of Collection. Residential Collection Service shall be 1306 provided, commencing no earlier than 6:00 a.m. and terminating no later than 6:00 p.m., 1307 Monday through Friday with no service on Saturday (except for holiday service as set 1308 forth in Section 9.03 of this Contract) or Sunday. The hours, days, or both of Collection 1309 may be extended due to extraordinary circumstances or conditions with the prior written 1310 consent of the Contract Administrator.
1311 10.06 Manner of Collection. The Contractor shall provide Residential Collection 1312 Service with as little disturbance as possible and shall leave any Gray, Blue or Green 1313 Containers in an upright position at the same point it was Collected without obstructing 1314 alleys, roadways, driveways, sidewalks or mail boxes. Contractor shall maintain a 1315 system capable of tracking the time required to respond to all customer complaints and 1316 service requests, including but not limited to cart replacement, cart exchanges, providing 1317 Carts to new Service Units and Large Item Collection Service 1318 10.06.1 Contractor’s employees providing Residential Collection 1319 Service shall follow the regular walk for pedestrians while on private property and shall 1320 not trespass nor cross property to the adjoining premises unless the occupant or owner 1321 of both properties has given permission. Care should be taken to prevent damage to 1322 property, including flowers, shrubs, and other plantings. 1323 10.06.3 Additional Blue or Green Container. Upon request, Contractor shall 1324 provide one (1) additional Blue or Green Container to any Residential Service Unit for 1325 the provision of Recycling or Organic Recyclable Material Collection Service. This 1326 service shall be provided by Contractor at no additional charge to the Service Recipient. 1327 Contractor shall be compensated for the delivery or exchange of additional Cart(s) in 1328 accordance with Section 10.06.6.
1329 10.06.4 Replacement of Gray, Blue and Green Containers. Contractor’s 1330 employees shall take care to prevent damage to carts by unnecessary rough treatment. 1331 However, any Container damaged by the Contractor shall be replaced by the Contractor, ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1332 at the Contractor’s expense, within five (5) Work Days at no cost or inconvenience to 1333 the Service Recipient.
1334 10.06.4.1 Upon notification to the Contractor by the City or a 1335 Service Recipient that the Service Recipient’s Gray, Blue or Green Containers(s) has 1336 been lost, stolen or damaged beyond repair through no fault of the Contractor, or needs 1337 replacement due to age and normal wear and tear, the Contractor shall deliver a 1338 replacement Containers(s) to such Service Recipient within five (5) Work Days. Upon 1339 notification to the Contractor by the Service Recipient that the Service Recipient’s 1340 Kitchen Food Waste Pail has been lost or damaged beyond repair, the Contractor shall 1341 deliver up to one replacement Kitchen Food Waste Pail at no additional charge to the 1342 Service Recipient within (5) Work Days during the term of the Contract. The Contractor 1343 shall maintain records documenting all Containers replacements occurring on a monthly 1344 basis.
1345 10.06.4.2 Each Service Recipient shall be entitled to the 1346 replacement of one (1) lost, destroyed, or stolen Gray Container, one (1) lost, destroyed, 1347 or stolen Blue Container, and one (1) lost, destroyed, or stolen Green Container during 1348 the term of this Contract at no cost to the Service Recipient. Except in the case of a 1349 Container that must be replaced because of damage caused by Contractor, due to 1350 damage caused by age, or in the case where Contractor elects to replace a Container 1351 rather than repair it on-site, Contractor shall be compensated for the cost of those 1352 replacements in excess of one (1) per type of Container per Service Recipient during 1353 the term of the Contract, in accordance with the “Container Replacement” Service Rate 1354 set forth in Exhibit 1, or as may be adjusted under the terms of this Contract. 1355 10.06.4.3 Contractor understands and agrees that this 1356 provision is intended to be applied on a per Container type, Service Recipient basis and 1357 accordingly each Service Recipient could receive up to three (3) replacement Container, 1358 one (1) of each type, during the life of the Contract. 1359 10.06.5 Repair of Gray, Blue and Green Containers. Contractor shall be 1360 responsible for repair of Container(s) in the areas to include but not be limited to, hinged 1361 lids, wheels and axles. Within five (5) Work Days of notification by the City or a Service 1362 Recipient of the need for such repairs, the Contractor shall repair the Container or, if 1363 necessary, remove the Container for repairs and deliver a replacement Container to the 1364 Service Recipient.
1365 10.06.6 Container Exchange. Upon notification to the Contractor by the 1366 City or a Service Recipient that a change in the size of a Gray, Blue or Green Container 1367 is required, or that the Service Recipient requires a second Blue or Green Container, 1368 the Contractor shall deliver such Container to such Service Recipient within five (5) Work ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1369 Days. Each Residential Service Unit shall be eligible to receive one (1) free Gray, Blue 1370 and Green Container exchange per Contract Year during the term of this Contract and 1371 one free delivery of a second Blue or Green Container during the term of this Contract. 1372 Accordingly, Contractor shall be compensated for the cost of those exchanges in excess 1373 of one (1) per Container type per Contract Year, in accordance with the “Container 1374 Exchange” service rate as set forth in Exhibit 1 or as may be adjusted under the terms 1375 of this Contract.
1376 10.06.7 Ownership of Gray, Blue and Green Container. Ownership of 1377 Gray, Blue and Green Container(s) shall rest with the Contractor, except that ownership 1378 of Gray, Blue and Green Container(s) in the possession of a Service Recipient at the 1379 end of this Contract may rest with the City, at City’s sole discretion. In the case of the 1380 termination of the Contract due to the default of the Contractor, the Gray, Blue, and 1381 Green Containers, shall, at City’s sole discretion and at no additional cost to the City, 1382 become the property of the City and Contractor shall submit to the Contract 1383 Administrator an inventory of Gray, Blue, and Green Containers, including their 1384 locations, together with all proof of ownership, and shall take all steps necessary to 1385 transfer ownership to City.
1386 10.07 Residential Garbage Collection Service. This service will be governed by 1387 the following terms and conditions:
1388 10.07.1 Non-Collection. Except as set forth in Section 10.12, 1389 Contractor shall not be required to Collect any Residential Garbage that is not placed in 1390 a Gray Container. In the event of non-collection, Contractor shall affix to the Gray 1391 Container a Non-Collection Notice explaining why Collection was not made. Contractor 1392 shall maintain a copy of such notices during the term of this Contract. 1393 10.07.2 Disposal Facility. Except as set forth below, all Residential 1394 Garbage Collected as a result of performing Residential Garbage Collection Service 1395 shall be transported to, and disposed of, at the Disposal Facility. In the event the 1396 Disposal Facility is closed on a Work Day, the Contractor shall transport and dispose of 1397 the Residential Garbage at such other legally permitted disposal facility as designated 1398 in writing by City. Failure to comply with this provision shall result in the levy of an 1399 administrative charge as specified in Article 23 of this Contract and may result in the 1400 Contractor being in default under this Contract.
1401 10.08 Residential Recycling Service. This service will be governed by the 1402 following terms and conditions:

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1403 10.08.1 Overages. Corrugated cardboard that will not fit inside the Blue 1404 Container may be placed beside the Blue Container for Collection. 1405 10.08.2 Recycling - Improper Procedure. Except as set forth in this Section 1406 10.08.2, the Contractor shall not be required to Collect Recyclable Materials if the 1407 Service Recipient does not segregate the Recyclable Materials from Residential 1408 Garbage. Furthermore, except as set forth in Section 10.08.1 above, Contractor shall 1409 not be required to Collect any Recyclable Material that is not placed in a Blue Container. 1410 If Recyclable Materials are contaminated through commingling with Residential 1411 Garbage, the Contractor shall, if practical, separate the Residential Garbage from the 1412 Recyclable Materials and dispose of the Residential Garbage in the Gray Container. The 1413 Recyclable Materials shall then be Collected, and Non-Collection Notice left on the Blue 1414 Container explaining why the Residential Garbage is not considered a Recyclable 1415 Material. However, in the event the Recyclable Materials and Residential Garbage are 1416 commingled to the extent that they cannot easily be separated by the Contractor or the 1417 nature of the Residential Garbage renders the entire Blue Container contaminated, the 1418 Contractor will leave the Blue Container un-emptied along with a Non-Collection Notice 1419 that contains instructions on the proper procedures for setting out Recyclable Materials. 1420 If contents in the Blue Container are contaminated, the Contractor will have the option 1421 to collect the contaminated Container and charge a Contamination Charge. Contractor 1422 will be required to take a picture of the contamination and notify the customer using a 1423 Non-Collection/Contamination notice.
1424 10.08.3 Material Recovery Facility. All Recyclable Materials Collected as 1425 a result of performing Recycling Services shall be delivered to the Material Recovery 1426 Facility. Failure to comply with this provision shall result in the levy of an administrative 1427 charge as specified in Article 23 of this Contract and may result in the Contractor being 1428 in default under this Contract.
1429 10.08.4 Recycling - Changes to Work. Should changes in law arise that 1430 necessitate any additions or deletions to the work described herein, including the type 1431 of items included as Recyclable Materials, the parties shall negotiate any necessary cost 1432 changes and shall enter into a Contract amendment covering such modifications to the 1433 work to be performed and the compensation to be paid before undertaking any changes 1434 or revisions to such work.
1435 10.09 Organic Recyclable Material Collection Service. This service will be 1436 governed by the following terms and conditions:

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1437 10.09.1 Christmas Tree Collection. The Contractor shall Collect Christmas 1438 Trees set out at the curb for Collection during the three-week period beginning 1439 December 26 and annually thereafter during the term of this Contract. Contractor shall 1440 deliver the Collected Christmas Trees to an appropriate facility for processing. Christmas 1441 Trees shall be limited to 8 feet tall , and must be generated by and at the Residential 1442 Service Unit wherein the Christmas Tree is Collected. This annual service shall be 1443 provided at no additional charge to the Service Recipient. 1444 10.09.1.1 Contaminated Christmas Trees. Christmas trees that are 1445 flocked, contain tinsel or other decorations may be transferred and/or delivered to the 1446 Disposal Facility at the discretion of the Contractor. 1447 10.09.2 Non-Collection. Except as set forth in Section 10.09.1 above, 1448 Contractor shall not be required to Collect any Organic Recyclable Material that is not 1449 placed in a Green Container. Furthermore, Contractor shall not be required to provide 1450 Leaf Collection Service as detailed in Section 10.11 if a bag contains any material other 1451 than leaves. In the event of non-collection, Contractor shall affix to the Green Containers 1452 or bags a Non-Collection Notice explaining why Collection was not made. Contractor 1453 shall maintain a copy of such notices during the term of this Contract. If contents in the 1454 Green Containers are contaminated, the Contractor will have the option to collect the 1455 contaminated Container and charge a Contamination Charge. Contractor will be 1456 required to take a picture of the contamination and notify the customer using a Non1457 Collection Notice. 1458 10.10 Organic Recyclable Material Processing Services. Contractor shall ensure 1459 that all Organic Recyclable Material Collected pursuant to this Contract is diverted from 1460 the landfill in accordance with Applicable Law.
1461 10.10.1 Contractor shall ensure that the Organic Recyclable Material 1462 Collected pursuant to this Contract is not disposed of in a landfill, except as a residue 1463 resulting from processing.
1464 10.10.2 Organic Recyclable Material Processing Facility. Contractor must 1465 ensure that all Organic Recyclable Material collected pursuant to this Contract is 1466 diverted from the landfill in accordance with Applicable Law. Contractor shall deliver all 1467 Collected Organic Recyclable Material to a fully permitted Organic Recyclable Material 1468 Processing Facility, a fully permitted Transfer Station, or other properly permitted facility. 1469 All expenses related to Organic Recyclable Material processing and marketing will be 1470 the sole responsibility of Contractor.
1471 10.11 Leaf Collection Service. Contractor shall provide Leaf Collection Service at 1472 the normal Organic Recyclable Material Collection pick-up date and time. Contractor ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1473 shall collect up to four (4) 30-gallon bags per Service Unit per Collection. This service 1474 shall be provided at no additional cost to the City or Service Recipient. 1475 10.12 Large Item Collection Service. This service will be governed by the following 1476 terms and conditions.
1477 10.12.1 Conditions of Service. The Contractor shall provide Large Item 1478 Collection Service to all Residential Service Units in the Service Area whose Large Items 1479 have been placed within three (3) feet of the curb, swale, paved surface of the public 1480 roadway, closest accessible roadway, or other such location agreed to by the Contractor 1481 and Service Recipient, that will provide safe and efficient accessibility to the Contractor’s 1482 Collection crew and vehicle. The Service Recipient shall be limited to ten (10) cubic 1483 yards per Collection. Accordingly, Contractor shall be compensated for the cost of 1484 Collecting Large Items in excess of this limitation in accordance with the “additional 1485 Large Item Collection” service rate as set forth in Exhibit 1 or as may be adjusted under 1486 the terms of this Contract. Each Residential Service Unit in the Service Area shall be 1487 entitled to receive Large Item Collection Service up to three (3) times per Contract Year. 1488 10.12.2 Frequency of Service. Large Item Collection Service shall be 1489 provided within seven (7) days of receipt of the request, excluding Saturdays, Sundays 1490 and Holidays, as set forth herein. The Service Recipient shall not intentionally 1491 commingle Large Items with other Residential Waste. Large Item Collection Service will 1492 occur on the same day as Garbage Collection Service, Recycling Collection Service and 1493 Organic Recyclable Material Collection Service, unless Service Recipient requests a 1494 specific date in advance. Large Items placed in the public right of way more than twenty1495 four (24) hours before their scheduled Collection day may be considered illegal dumping 1496 if placement of such items is in violation of the Rancho Cordova Municipal Code and 1497 City may request Contractor to remove such items. If permissible, such removal shall be 1498 considered a special pick up for the service recipient and be subject to the special pick 1499 up fees as set forth in Exhibit 1.
1500 10.12.3 Care of Large Items. During the Collection and transporting of 1501 Large Items, Contractor shall take reasonable care to see that reusable goods are not 1502 damaged. In the event that Contractor Collects Large Items that contain Freon, 1503 Contractor shall handle such Large Items in a manner such that the Large Items are not 1504 subject to regulation as Hazardous Waste under applicable state and federal laws or 1505 regulations.
1506 10.12.4 Maximum Reuse and Recycling. Contractor must process bulky 1507 waste and Large Items collected from Service Units pursuant to this Contract locally, 1508 using a City-approved, sorting facility. Contractor shall ensure that Organic Recyclable ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1509 Material and Recyclable Material Collected pursuant to this Contract is diverted from the 1510 landfill in accordance with Applicable Law.
1511 10.13 Residential Used Oil Collection Service. This service will be governed by 1512 the following terms and conditions:
1513 10.13.1 Conditions of Service. In conjunction with the provision of 1514 Residential Recycling Collection Service, the Contractor shall provide Residential Used 1515 Oil Collection Service to all Residential Service Units in the Service Area utilizing Used 1516 Oil Containers for the accumulation and set-out of their Used Oil, and Used Oil Filter 1517 Containers for the accumulation and set out of their Used Oil Filters where the Used Oil 1518 Containers and Used Oil Filter Containers have been placed within three (3) feet of the 1519 curb, swale, paved surface of the public roadway, closest accessible roadway, or other 1520 such location agreed to by the Contractor and Service Recipient, that will provide safe 1521 and efficient accessibility to the Contractor’s Collection crew and vehicle. 1522 10.13.2 Non-Collection. Contractor shall not be required to collect material 1523 placed in Used Oil or Used Oil Filter Containers unless the material is Used Oil or Used 1524 Oil Filters, as appropriate, and is free of contamination other than contamination 1525 normally expected to be present as a result of the use, storage or spillage of the Used 1526 Oil or Used Oil Filter. In the event of non-collection, Contractor shall affix to the Used Oil 1527 or Used Oil Filter Container a Non-Collection Notice explaining why Collection was not 1528 made and maintain a copy of such notice during the term of this Contract. Prior to the 1529 end of the Work Day, Contractor shall notify the Contract Administrator, either by Fax or 1530 e-mail, of any non-collection occurrences. If non-collection is because the Used Oil or 1531 Filter was placed in an improper container, Contractor shall also leave Used Oil or Used 1532 Oil Filter Containers in a number sufficient to contain the Used Oil or Used Oil Filters set 1533 out, but not exceeding a number sufficient to hold sixteen (16) quarts, or two (2) Used 1534 Oil Filters along with the Non-Collection Notice.
1535 10.13.3 Spillage. Contractor shall carry oil absorbent material on all 1536 vehicles providing Used Oil Collection Service and shall cleanup any Used Oil that spills 1537 during Collection, which has leaked from the Used Oil or Used Oil Filter Container, or 1538 which spills or leaks during the time the Used Oil or Used Oil Filter is in the Collection 1539 vehicle.
1540 10.13.4 Used Oil and Used Oil Filter Containers. To the extent allowed by 1541 Contractor, residents may provide their own used oil and used filter containers. 1542 However, in the event Contractor allows the use of resident-provided containers, 1543 Contractor shall assume any and all liabilities related to the use of such residentITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1544 provided containers. Within three (3) Work Days of receipt of a verbal, written, or 1545 electronic request of City or a Service Recipient, Contractor shall, at Contractor’s sole 1546 cost and expense, provide the Residential Service Unit where the Service Recipient 1547 resides with Used Oil Containers and Used Oil Filter Containers in the number requested 1548 by the City or the Service Recipient but not exceeding a number sufficient to hold sixteen 1549 (16) quarts of Used Oil and two (2) Used Oil Filters. 1550 10.13.4.1 At the time Contractor Collects Used Oil from a Service 1551 Recipient, Contractor shall, at Contractor’s sole cost and expense, leave at the premises 1552 one (1) Used Oil Container for each Used Oil Container Collected and one (1) Used Oil 1553 Filter Container for each Used Oil Filter Container Collected. Contractor shall keep the 1554 outside of all Used Oil and Used Oil Filter Containers clean and may re-use the 1555 containers until the condition of the container makes it inappropriate for re-use. 1556 10.13.5 Segregation of Used Oil. Contractor shall keep all Used Oil and 1557 Used Oil Filters Collected pursuant to this Contract segregated from other materials. 1558 10.13.6 Used Oil Processing. Contractor shall recycle all Used Oil 1559 Collected pursuant to this Contract to the extent feasible and shall properly dispose of 1560 all Used Oil and Used Oil Filters that are contaminated or otherwise cannot be recycled. 1561 10.13.6.1 Contractor shall recycle the Used Oil only with persons 1562 who are authorized by the State of California to recycle oil. In the event the Used Oil or 1563 Used Oil Filters Collected pursuant to this Contract is contaminated to the extent that 1564 the Used Oil or Used Oil Filters require disposal as a Hazardous Waste, Contractor shall 1565 dispose of such Used Oil or Used Oil Filters, at Contractor’s own cost and expense in 1566 accordance with applicable state and federal law.
1567 10.13.6.2 Contractor shall notify the Contract Administrator, either 1568 by fax or e-mail, of any contamination which renders the Used Oil unacceptable for 1569 recycling or which requires disposal of the Used Oil or Used Oil Filters as a Hazardous 1570 Waste.
1571 10.14 Sharps Collection Service. The service will be governed by the following 1572 terms and conditions:
1573 10.14.1 Collection. Within one (1) week after request by Service Recipient 1574 Contractor will collect any Sharps discarded in Approved Sharps Containers provided 1575 by the Service Recipient, at that Service Recipient’s Residential premise without 1576 surcharge to the Service Recipient or charge to the City. As part of the Sharps Collection 1577 Service, Contractor shall provide an option for Service Recipients to mail back their 1578 Sharps, if contained in a Contractor approved container for a fee. If Contractor delivers 1579 Approved Sharps Container(s) to a transfer station that Contractor owns or operates, ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1580 Contractor will arrange for a medical waste hauler to pick up the Approved Sharps 1581 Container(s), and stage or store the Container(s) until the certified medical waste hauler 1582 collects the Container(s).
1583 10.14.2 Container. Contractor will, at the sole cost to the Contractor, 1584 provide Service Recipients with an Approved Sharps Container for use in the Sharps 1585 Collection program.
1586 10.14.3 Service Recipient Appointment. Contractor will follow the following 1587 procedure:
1588 10.14.3.1 Contractor will receive the Service Recipient’s telephone 1589 request for Sharps Collection Service during phone hours at the local, toll-free telephone 1590 number that Contractor must maintain.
1591 10.14.3.2 If the Service Recipient provides his or her telephone 1592 number to Contractor on that call, Contractor will return the call to schedule and Collect 1593 an Approved Sharps Container on Service Recipient’s regularly scheduled Collection 1594 day between 6 a.m. and 3 p.m.
1595 10.14.3.3 Contractor will arrange with Service Recipient where 1596 Service Recipient will personally deliver the Approved Sharps Container to the 1597 Contractor’s employee when the employee knocks on or rings the bell at the Service 1598 Recipient‘s front door. Contractor may not arrange with Service Recipient to set out any 1599 Approved Sharps Container at the Service Recipient’s curbside set-out site. In addition 1600 to the personal delivery of the Approved Sharps Container by the Service Recipient to 1601 the Contractor’s employee, the City may arrange for a drop-off location at one of the 1602 City’s owned facilities. Contractor will record the time and place of regularly scheduled 1603 Collection on the Service Recipient’s subscription form. 1604 10.14.4 Non-Collection. Contractor is not required to Collect Sharps in the 1605 following events:
1606 10.14.4.1 Service Recipient discards materials other than Sharps, 1607 such as prescription drugs,
1608 10.14.4.2 Service Recipient does not discard Sharps in an 1609 Approved Sharps Container,
1610 10.14.4.3 Sharps have spilled out of the Approved Sharps 1611 Container, or the Container is broken, split or otherwise damaged, or it is not sealed 1612 properly, or
ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1613 10.14.4.4 Service Recipient does not set out the Approved Sharps 1614 Container at the place arranged between the Service Recipient and the Contractor: for 1615 example, Service Recipient sets out the container at the curb. 1616 In any of these events, Contractor will complete and leave a Non1617 Collection Notice securely attached to the discarded material container, describing the 1618 reason that the Contractor did not Collect the Approved Sharps Container. 1619 10.14.5 Handling Sharps.
1620 10.4.5.1 Contractor’s employee will record Collection thereof on his 1621 or her route sheet.
1622 10.14.5.2 Contractor will transport Approved Sharps Container to 1623 [Contractor to identify location].
1624 10.14.5.3 Contractor will arrange for disposal of Sharps in 1625 accordance with Applicable Law.
1626 10.14.6 Customer Education and Outreach. Contractor will provide all 1627 Customers with a description of the Sharps Collection program. 1628 10.15 Place holder for Edible Food Collection Program 1629 ARTICLE 11. City Collection Service
1630 11.01 City Collection Service. Except as set forth below, the Contractor shall 1631 provide City Collection Service to all City Service Units in the Service Area as described 1632 in Exhibit 3. This service will be governed by the following terms and conditions:
1633 11.01.1 Hours of Collection. City Collection Service shall be provided, 1634 commencing no earlier than 5:00 a.m., provided the City Service Unit is located a 1635 minimum of one hundred (100) feet from residential property, and terminating no later 1636 than 7:00 p.m., Monday through Friday. The hours of Collection may be extended due 1637 to extraordinary circumstances or conditions with the prior written consent of the 1638 Contract Administrator.
1639 11.01.2 Accessibility. Contractor shall Collect all Gray, Blue or Green 1640 Containers that are readily accessible to the Contractor’s crew and vehicles and not 1641 blocked. However, Contractor shall provide “push services” as necessary during the 1642 provision of City Collection Services. Push services shall include, but not be limited to 1643 dismounting from the Collection vehicle, moving the Gray, Blue, or Green Containers 1644 from their storage location for Collection and returning the Gray, Blue, or Green 1645 Containers to their storage location.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1646 11.01.3 Manner of Collection. The Contractor shall provide City Collection 1647 Service with as little disturbance as possible and shall leave Gray, Blue, or Green 1648 Containers at the same point it originally located without obstructing alleys, roadways, 1649 driveways, sidewalks or mail boxes.
1650 11.01.4 Purchase and Distribution of Container(s). 1651 11.01.4.1 Contractor is responsible for the purchase and delivery 1652 of Kitchen Food Waste Pails to all newly constructed Residential Service Units in the 1653 City, and for lost or stolen pails at the request of the Service Recipient. Kitchen Food 1654 Waste Pails to Service Units in the Service Area. Each Service Unit shall be eligible to 1655 request one (1) Kitchen Food Waste Pail per year at no additional charge. 1656 11.01.5 Replacement of Gray, Blue, and Green Container(s). Care shall 1657 be taken by Contractor’s employees to prevent damage to Containers by unnecessary 1658 rough treatment. However, any Gray, Blue, or Green Container(s) damaged by the 1659 Contractor shall be replaced by the Contractor, at Contractor’s expense, within five (5) 1660 Work Days at no cost or inconvenience to the Service Recipient. 1661 11.01.5.1 Upon notification to the Contractor by the City that a City 1662 Service Units’ Container has been lost, stolen or that it has been damaged beyond repair 1663 through no fault of the Contractor, the Contractor shall deliver a replacement Gray, Blue, 1664 or Green Container to such Service Unit within five (5) Work Days. 1665 11.01.6 Gray, Blue, and Green Container(s). Contractor shall be 1666 responsible for repair of Containers. Within five (5) Work Days of notification by the City 1667 of the need for such repairs, the Contractor shall repair the Container or if necessary, 1668 remove the Container for repairs and deliver a replacement Gray, Blue, or Green 1669 Container. Gray, Blue, and Green Container repair shall also include the removal of 1670 graffiti from the Container.
1671 11.01.7 Gray, Blue, and Green Container Exchange. Upon notification to 1672 the Contractor by the City that a change in the size, or number of the Gray, Blue, or 1673 Green Container, or a change in the number of Gray, Blue, or Green Containers is 1674 required, the Contractor shall deliver such Containers to such City Service Unit within 1675 five (5) Work Days.
1676 11.01.8 Ownership of Gray, Blue and Green Container. Ownership of 1677 Gray, Blue and Green Container(s) shall be governed by the provisions of Section 1678 10.06.7.
1679 11.01.9 Annual Cleaning. Once each Contract Year, at no charge to the 1680 City, Contractor shall clean all Gray, Blue, or Green Containers at the City Service Unit’s 1681 premises or shall replace the dirty Containers with clean Containers and remove the 1682 dirty Containers for cleaning.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1683 11.02 City Service Unit Recycling Program. Contractor shall maintain a City 1684 Service Unit Recycling Program that includes Collection of Organic Recyclable Materials 1685 and Recyclable Materials. Contractor will educate City staff on the importance of source 1686 separating Recyclable Material and Organic Recyclable Materials from Garbage. 1687 Contractor shall provide educational material and signage annually for the City Service 1688 Unit Recycling Program at no additional cost to the City. 1689 11.03 City Garbage Collection Service.
1690 11.03.1 Conditions of Service. The Contractor shall provide City Garbage 1691 Collection Service to all City Service Units in the Service Area whose City Garbage is 1692 properly containerized in Gray Containers, where the Gray Containers are accessible 1693 as set forth in Section 11.01.2.
1694 11.03.2 Size and Frequency of Service. The size of the containers and the 1695 frequency of this service shall be provided as deemed necessary and as determined 1696 between the Contractor and the Contract Administrator, but such service shall be 1697 received no less than one (1) time per week with no exception for holiday(s) as set forth 1698 herein, except that Collection service scheduled to fall on a holiday may be rescheduled 1699 as determined between the Contract Administrator and the Contractor as long as the 1700 minimum frequency requirement is met. Service may be provided by Garbage Bin or 1701 Cart at the option of the City.
1702 11.03.3 Disposal Facility. All City Garbage, Collected as a result of 1703 performing City Garbage Collection Service shall be transported to, and disposed of, at 1704 the Disposal Facility. In the event the Disposal Facility is closed on a Work Day, the 1705 Contractor shall transport and dispose of City Garbage at such other legally permitted 1706 disposal facility as designated in writing by City. Failure to comply with this provision 1707 shall result in the levy of an administrative charge as specified in Article 23 of this 1708 Contract and may result in the Contractor being in default under this Contract. 1709 11.04 City Recycling Collection Service. This service will be governed by the 1710 following terms and conditions:
1711 11.04.1 Conditions of Service. The Contractor shall provide City Recycling 1712 Collection Service to all City Service Units in the Service Area whose Recyclable 1713 Materials are properly containerized in Blue Containers, except as set forth in Section 1714 11.04.3 below, where the Blue Containers are accessible as set forth in Section 11.01 2. 1715 11.04.2 Size and Frequency of Service. The size of the containers and the 1716 frequency of this service shall be provided as deemed necessary and as determined 1717 between the Contractor and the Contract Administrator, but such service shall be 1718 received no less than one (1) time per week with no exception for holiday(s) as set forth ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1719 herein, except that Collection service scheduled to fall on a holiday may be rescheduled 1720 as determined between the Contract Administrator and the Contractor as long as the 1721 minimum frequency requirement is met. Service may be provided by Bin or Cart at the 1722 option of the City.
1723 11.04.3 Recycling - Improper Procedure. Recycling – Improper Procedure 1724 shall be governed by the provisions of Section 10.08.2. 1725 11.05 Material Recovery Facility. All Recyclable Materials Collected as a result of 1726 performing Recycling Collection Services shall be delivered to the Material Recovery 1727 Facility, as specified in the Contractor’s Proposal Exhibit 6, and determined by 1728 Contractor at its sole discretion. Failure to comply with this provision shall result in the 1729 levy of an administrative charge as specified in Article 23 of this Contract and may result 1730 in the Contractor being in default under this Contract. 1731 11.06 Organic Recyclable Materials Collection Service. This service will be 1732 governed by the following terms and conditions:
1733 11.06.1 Conditions of Service. The Contractor shall provide Organic 1734 Recyclable Material Collection Service to all City Service Units in the Service Area 1735 whose Organic Recyclable Material is properly containerized in Green Containers, 1736 where the Green Containers are accessible as set forth in Section 11.01.2. 1737 11.06.2 Size and Frequency of Service. The size of the containers and the 1738 frequency of this service shall be provided as deemed necessary and as determined 1739 between the Contractor and the Contract Administrator, but such service shall be 1740 received no less than one (1) time per week with no exception for holiday(s) as set forth 1741 herein, except that Collection service scheduled to fall on a holiday may be rescheduled 1742 as determined between the Contract Administrator and the Contractor as long as the 1743 minimum frequency requirement is met. Service may be provided by Bin or Cart at the 1744 option of the City.
1745 11.06.3 Organic Recyclable Material Processing Facility. Contractor must 1746 ensure that all Organic Recyclable Material collected pursuant to this Contract is 1747 diverted from the landfill in accordance with Applicable Law. Contractor shall deliver all 1748 Collected Organic Recyclable Material to a fully permitted Organic Recyclable Material 1749 Processing Facility, a fully permitted Transfer station, or other properly permitted facility 1750 as described in the Contractor’s Proposal Exhibit 6. All expenses related to Organic 1751 Recyclable Material processing and marketing will be the sole responsibility of 1752 Contractor.
1753 11.07 City Event Services. Contractor shall provide Garbage Collection and 1754 disposal services, Recyclable Material Collection and processing services, Organic ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1755 Recyclable Material Collection and processing services, and portable toilets at up to ten 1756 (10) City-sponsored or supported events as requested by City. Such services shall be 1757 provided in such a manner that all Garbage, Recyclable, Organic Recyclable Material, 1758 and portable toilet needs of the event are adequately and properly provided for by 1759 Contractor at no cost of any kind to the City or the City-supported sponsor of the event. 1760 11.08 Large Item Collection Service. Large Item Collection Service shall be 1761 governed by the provisions of Section 10.12.
1762 ARTICLE 12. Other Collection Service
1763 12.01 Additional Programs.
1764 12.01.1 Sharps Collection Service. Contractor shall provide Sharps 1765 Collection Service throughout the term of the Contract and CONTRACTOR will include 1766 information about the Sharps Collection Service in the Public Education and Outreach 1767 Programs undertaken pursuant to Article 18 throughout the term of the Contract. 1768 12.01.2 Dry Cell Battery Collection. Contractor shall collect dry cell 1769 household batteries as part of Residential Recycling Collection Service and 1770 CONTRACTOR will include information about dry cell battery collection services in Public 1771 Education and Outreach Programs undertaken pursuant to Article 18 throughout the term 1772 of the Contract.
1773 12.01.3 Public Outreach and Education Services. Contractor shall make 1774 expanded public outreach and educational services, as set forth in Section 18.01 of this 1775 Contract.
1776 12.02 Debris Collection Service.
1777 12.02.1 Conditions of Service. Contractor shall provide Debris Collection 1778 Service within the Service Area as requested by the City. In the event that the Contractor 1779 is notified by phone or in writing by the City of the location of abandoned debris, 1780 Contractor shall remove such item within forty-eight (48) hours of receipt of such 1781 notification.
1782 12.02.2 Contractor shall provide two thousand (2,000) cubic yards per 1783 Contract Year of Debris Collection Service at no additional charge to the City. The 1784 Contractor shall provide Debris Collection Service in excess of two thousand (2,000) 1785 cubic yards at the direction of the Contract Administrator, for a charge to the City not to 1786 exceed the rate set forth in Exhibit 1. The cubic yard charge to the City for Debris 1787 Collection Service in excess of the two thousand (2,000) cubic yard annual limit shall be 1788 adjusted annually in accordance with the percentage amounts identified in Section 5 03.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1789 12.03 Special Clean-Up Service.
1790 12.03.1 Contractor shall, in response to the written request of the Contract 1791 Administrator, deliver and collect Roll-Off Containers for use in special clean-up 1792 programs. Contractor, at the City Contract Administrators direction shall provide up to 1793 four (4) Special Clean-up Service events per year, with a total collection not to exceed 1794 One Thousand, Two Hundred (1,200) cubic yards in any Contract Year. Each clean-up 1795 event shall consist of a single Collection day beginning at 6:00 a.m. and ending at 6:00 1796 p.m. The Contract Administrator shall notify Contractor in writing not less than five (5) 1797 calendar days prior to the date of the service. The notice to Contractor shall specify the 1798 date of delivery and Collection of the Roll-Off Containers, the location(s) for delivery, and 1799 the number of and size of the Roll-Off Containers to be delivered. As part of this service, 1800 Contractor shall provide on-site supervision at all times the Roll-Off Containers are 1801 available for Special Clean-Up Service. At such time as the Roll-Off Container is full, but 1802 not later than the end of the Special Clean-Up Service day, Contractor shall transport and 1803 deliver the Collected materials to the Disposal Facility, the Materials Recovery Facility, or 1804 such other facility as is appropriate for the disposition of the materials and approved by 1805 the Contract Administrator.
1806 12.03.2 With the prior written consent of the Contract Administrator, 1807 Contractor may provide for the Collection of materials at a Special Clean-up Service 1808 event in a vehicle or container other than a Roll-Off Container. However, in the event the 1809 Contractor elects to utilize this alternative Collection process, Contractor is responsible 1810 for obtaining documentation of the weight of the materials Collected, diverted and 1811 disposed in a manner that is acceptable to the City. 1812 ARTICLE 13. Collection Routes
1813 13.01 Service Routes. Contractor must provide City with maps and digital 1814 mapping data precisely defining Collection routes. 1815 13.02 Service Route Changes. Contractor must submit to City, in writing, any 1816 proposed route change (including maps thereof) not less than sixty (60) calendar days 1817 prior to the proposed date of implementation. Contractor may not implement any route 1818 changes without the prior review and written consent of the Contract Administrator. If 1819 the change will change the Collection day for a Service Recipient, Contractor must notify 1820 those Service Recipients in writing of route changes not less than thirty (30) calendar 1821 days before the proposed date of implementation.
1822 13.03 Collection Route Audits. City reserves the right to conduct audits of 1823 Contractor’s Collection routes. Contractor must cooperate with City in connection 1824 therewith, including permitting City employees or agents, designated by the Contract 1825 Administrator, to ride in the Collection Vehicles to conduct the audits. Contractor has ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1826 no responsibility or liability for the salary, wages, benefits or worker compensation claims 1827 of any person designated by the Contract Administrator to conduct such audits. 1828 13.04 Route Reviews. Contractor will audit and report on a minimum of 5,000 1829 accounts per year, with those accounts distributed evenly among each Hauler Route, 1830 unless otherwise directed by the City.
1831 13.04.1 Contractor will conduct Route Reviews on collection days when 1832 Gray, Blue, and Green Containers are scheduled for a Hauler Route. A Route Review 1833 will consist of opening the Gray, Blue, and Green Container, searching the top layer of 1834 material for Prohibited Container Contaminants, filling out a Prohibited Contamination 1835 Contaminants Container tag, documenting the data for reporting (including 1836 photographing Prohibited Contamination Contaminants), and returning the Gray, Blue, 1837 and Green Container lids.
1838 ARTICLE 14. Billing Audits and Performance Reviews 1839 14.01 Contractor Billing Audits. Contractor Shall Review its Billings to all 1840 Customers. The purpose of the review is to determine that the amount which the 1841 Contractor is billing each Customer is correct regarding the level of service (i. e. , 1842 frequency of collection, size of container, location of container) at the rates approved by 1843 City Council resolution. The Contractor shall review Customer accounts not less than 1844 annually and provide a written certification to the City that all such billing is correct. The 1845 documentation of the review, as well as verification that any errors have been corrected 1846 should be provided to the City annually.
1847 14.02. Performance and Financial Review. The City may contract with a solid 1848 waste consultant for an independent financial and performance review of Collection 1849 Services up to two (2) times during the initial ten year term of the Contract and one (1) 1850 time during any 5 year term extension. The primary objectives of the review are to ensure 1851 that service fees and franchise fees have been correctly calculated and paid, that 1852 diversion percentages have been properly calculated and that the Contractor is 1853 delivering services in accordance with the performance, reporting and diversion 1854 requirements of the Contract. Contractor agrees that these reviews are in the best 1855 interest of the City and Contractor and shall cooperate with City’s consultant during the 1856 provision of these reviews by providing access to all requested records and data in a 1857 timely manner.
1858 14.02.1 The Contractor shall pay to the City a total of Sixty Five Thousand 1859 Dollars ($65,000) for each Performance and Financial Review that is conducted during 1860 the term of the Contract and any extensions. That amount shall increase annually in 1861 accordance with the CPI Adjustment Calculation in Section 5.03. Beginning July 1, 2025, ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1862 and annually thereafter. Contractor’s payment to the City is to be made within sixty (60) 1863 days’ written notice from the City of the commencement of any such review. 1864 14.03 Public Hearing. At the City's sole option, with at least thirty (30) calendar 1865 days written notification to the Contractor, it may conduct a public hearing at which the 1866 Contractor shall be present and shall participate, to review the Contractor's performance, 1867 quality of service, and evaluation of technological and regulatory changes. Required 1868 report information, including customer service log information as well as any findings 1869 from billing audits and /or performance reviews. Performance and service quality review 1870 hearings may be scheduled by the City at its discretion throughout the Term of the 1871 Agreement.
1872 14.04 Cooperation with Other Program Reviews. Contractor shall cooperate with 1873 City and/or its agent(s) as reasonably requested to collect program data, perform field 1874 work, conduct route audits to investigate customer participation levels and setout 1875 volumes and/or evaluate and monitor program results related to Garbage, Recyclable 1876 Materials and Organic Recyclable Material collected in City by Contractor, provided that 1877 such cooperation can be accomplished at no additional cost to Contractor and without 1878 interfering with Contractor’s operations.
1879 ARTICLE 15. Collection Equipment
1880 15.01 General Provisions. All equipment used by Contractor in the performance 1881 of services under this Agreement must be of a high quality and meet all Federal, State, 1882 and local regulations and air quality standards, including all applicable provisions of Air 1883 Quality Management District. Collection vehicles must be designed and operated so as 1884 to prevent collected materials from escaping from the vehicles. Hoppers must be closed 1885 on top and on all sides with screening material to prevent collected materials from 1886 leaking, blowing or falling from the vehicles. All trucks and containers must be watertight 1887 and must be operated so that liquids do not spill during Collection or in transit. 1888 15.02 Collection Vehicles. Contractor must use new Collection Vehicles as of the 1889 July 1, 2026 and may not use any Collection Vehicle that is more than ten (10) years old 1890 during the term of the Agreement. Contractor shall register all new Collection Vehicles 1891 under this Agreement to its address within the City, and shall report all purchases of 1892 Collection Vehicles under this Agreement as attributable to the City for sales tax 1893 purposes. Collection Vehicles must utilize low carbon (“alternative”) fuel, which must be 1894 renewable natural gas, LNG, CNG, or electric unless otherwise authorized by the City. 1895 If during the term of the Franchise Agreement, new technologies are available such as 1896 hybrid or electric powered collection vehicles, the City or the Contractor may 1897 request/negotiate implementation of such new collection vehicles, with a corresponding 1898 change to the Maximum Service Rates to reflect additional cost or savings. During the 1899 Term, to the extent required by law, Contractor shall provide its Collection Vehicles to be ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1900 in full compliance with all Applicable Laws, including State and Federal clean air 1901 requirements that are adopted or proposed to be adopted, including, but not limited to, 1902 the California Air Resources Board Heavy Duty Engine Standards as currently proposed 1903 to be contained in California Code of Regulations, title 13, sections 2020 et seq. , the 1904 Federal EPA’s Highway Diesel Fuel Sulfur regulations and all other applicable air 1905 pollution control laws.
1906 15.03 Collection Vehicle Technology. Contractor must use Collection Vehicles 1907 fitted with GPS tracking devices that can be used to record start and stop times, vehicle 1908 locations, and maximum speed. Contractor shall furnish to the City at no additional cost 1909 or expense any software and equipment necessary for City to track the location of 1910 Collection Vehicles in real time and to generate reports as needed. Collection Vehicles 1911 must also take photos, date and location stamped, to document violations, including 1912 contamination, overfilling, and lids not closed. GPS and camera data must be accessible 1913 by City.
1914 15 04 Collection Vehicle Size Limitations / Overweigh Vehicle Charge. Contractor 1915 may not use any Collection Vehicle in violation of weight limitations in Applicable Law. 1916 The Contractor may exceed the Collection Vehicle size limitation for a limited time due 1917 to extraordinary circumstances or conditions with the prior written consent of the 1918 Contract Administrator. The limited time may not exceed 120 days. Contractor must 1919 report all instances of overweight vehicles to City as part of its quarterly reports , and as 1920 part of its Annual Reports to the City described in Section 20.03. Contractor may be 1921 assessed administrative charges as specified in Section 23.04 associated with any 1922 overweight vehicles. Prior to collecting administrative charges for overweight vehicles, 1923 the City shall afford Contractor a reasonable opportunity to provide the Contract 1924 Administrator documentation of the extraordinary circumstance that caused the 1925 overweight vehicles. Extraordinary circumstances in this particular case include, but 1926 may be limited to, heavy rains or high winds that caused excess Green Waste to be 1927 generated, rain to accumulate in open Collection Containers, or normal Collection routes 1928 to be delayed or shortened to extreme weather conditions. The Contract Administrator 1929 shall have authority to consider Contractor’s documentation and uphold and collect the 1930 assessed charge, to reduce the charge, or waive and dismiss the charge. The Contract 1931 Administrator shall also have the authority to waive charges in advance of an anticipated, 1932 or in response to and actual, emergency event.
1933 15.05 Registration; Inspection. All vehicles used by Contractor in providing 1934 Collection Services under this Agreement, except those vehicles used solely on 1935 Contractor’s premises, are to be registered with the California Department of Motor 1936 Vehicles. In addition, each such vehicle must be inspected by the California Highway 1937 Patrol in accordance with Applicable Law. Within two (2) Work Days of a request from 1938 the Contract Administrator, Contractor must provide City a copy of its vehicle ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1939 maintenance log and any safety compliance report, including, but not limited to, any 1940 report issued under California Vehicle Code sections 34500 and following, as well as the 1941 biennial “BIT” inspections conducted by the California Highway Patrol. 1942 15.06 Safety Markings. All Collection equipment used by Contractor must have 1943 appropriate safety markings including, but not limited to, highway lighting, flashing and 1944 warning lights, clearance lights, and warning flags. All such safety markings must be in 1945 accordance with the requirements of the California Vehicle Code, as may be amended 1946 from time to time.
1947 15.07 Vehicle Signage and Painting. Collection Vehicles must be painted and 1948 numbered without repetition and must have Contractor's name, Contractor’s customer 1949 service telephone number, and the number of the vehicle painted in letters of contrasting 1950 color, at least four (4) inches high, on each side and the rear of each vehicle. Contractor 1951 must repaint all vehicles (including vehicles striping) during the term of this Agreement 1952 on a frequency as necessary to maintain a positive public image as reasonably 1953 determined by the Contract Administrator.
1954 15.08 Bin and Roll-off Signage, Painting, and Cleaning. All metal bins and Roll1955 Off Containers of any service type furnished by Contractor must be either painted or 1956 galvanized. All metal or plastic bins and Roll-Off Containers must display Contractor’s 1957 name, Contractor’s customer service telephone number, and the number of the Bin or 1958 Roll-off and must be kept in a clean and sanitary condition. Bins and Roll-Off Containers 1959 should be free of dents and graffiti and newly painted at the start of this Agreement and 1960 painted as needed to maintain an orderly appearance throughout the term of the 1961 Agreement. Bins and Roll-Off Containers may be subject to periodic, unscheduled 1962 inspections by City and determination as to sanitary condition will be made by City. Roll1963 off covers shall be provided upon request. 1964 15.09 Vehicle Certification. For each Collection Vehicle used in the performance 1965 of services under this Agreement, Contractor must obtain a certificate of compliance 1966 (smog check) issued pursuant to Part 5 of Division 26 of the California Health and Safety 1967 Code (Section 43000 and following) and regulations promulgated thereunder and/or a 1968 safety compliance report issued pursuant to Division 14.8 of the California Vehicle Code 1969 (Section 34500 and following) and the regulations promulgated thereunder, as 1970 applicable to the vehicle. Contractor must maintain copies of such certificates and 1971 reports and must make such certificates and reports available for inspection upon 1972 request by the Contract Administrator.
1973 Upon request, Contractor must submit to the Contract Administrator certification 1974 that each of the Contractor’s Collection Vehicles has passed the California Heavy Duty 1975 Vehicle Inspection. Thereafter, Contractor must cause each vehicle in Contractor’s 1976 Collection fleet to be tested annually in the California Heavy Duty Inspection Program ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

1977 and must, upon request, submit written verification to City within ten (10) Work Days of 1978 the completion of such test. Contractor may not use any vehicle that does not pass such 1979 inspection.
1980 15.10 Equipment Maintenance. Contractor must maintain Collection equipment 1981 in a clean condition and in good repair at all times. All parts and systems of the Collection 1982 equipment must operate properly and be maintained in a condition satisfactory to City. 1983 Contractor must wash all Collection Vehicles at least once a week, unless otherwise 1984 directed by the Contract Administrator.
1985 15.11 Maintenance Log. Contractor must maintain a maintenance log for all 1986 Collection Vehicles. The log must at all times be accessible to City by physical 1987 inspection upon request of Contract Administrator, and must show, at a minimum, each 1988 vehicle Contractor assigned identification number, date purchased or initial lease, dates 1989 of performance of routine maintenance, dates of performance of any additional 1990 maintenance, and description of additional maintenance performed. 1991 15.12 Equipment Inventory. On or before April 1, 2025, and annually thereafter as 1992 part of its Annual Report, Contractor shall provide to City an updated inventory of 1993 Collection Vehicles and major equipment used by Contractor for Collection or 1994 transportation and performance of services under this Agreement. The inventory must 1995 indicate each Collection Vehicle by Contractor assigned identification number, DMV 1996 license number, the age of the chassis and body, type of fuel used, the type and capacity 1997 of each vehicle, the number of vehicles by type, the date of acquisition, the decibel rating 1998 and the maintenance and rebuild status. Each inventory must also include the tare 1999 weight of each vehicle as determined by weighing at a certified scale used by Contractor. 2000 Each vehicle inventory must be accompanied by a certification signed by Contractor that 2001 all Collection Vehicles meet the requirements of this Agreement. 2002 15.13 Reserve Equipment. Contractor shall have available to it, at all times, 2003 reserve Collection equipment which can be put into service and operation within one (1) 2004 hour of any breakdown. Such reserve equipment must correspond in size and capacity 2005 to the equipment used by the Contractor to perform the contractual duties. 2006 15.14 Large Items. Vehicles used for Collection of Large Items shall not use 2007 compactor mechanisms or mechanical handling equipment that may release Freon or 2008 other gases from pressurized appliances.
2009 15.15 Collection Vehicle Noise Level. All Collection operations shall be conducted 2010 as quietly as possible and shall conform to applicable federal, state, county and City 2011 noise level regulations, including the requirement of Chapter 6.68 of the Rancho 2012 Cordova Municipal Code (noise ordinance). In the event of repeat occurrences of noise ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

2013 levels in excess of the limit specified in the City’s municipal code, Contractor shall pay 2014 Administrative Penalties in accordance with Article 23. 2015 ARTICLE 16. Contractor’s Office
2016 16.01 Contractor’s Office. The Contractor shall maintain a local office in 2017 Sacramento County where complaints can be received and which provides toll-free 2018 telephone access for Service Recipients living in the City of Rancho Cordova. Such 2019 office shall be equipped with sufficient telephones that all Collection Service and Street 2020 Sweeping Service related calls received during normal business hours are answered by 2021 an employee within five (5) rings, and shall have responsible persons in charge during 2022 Collection hours and shall be open during such normal business hours, 6:00 a.m. to 6:00 2023 p.m. on all Work Days and on those Saturdays when Collections Services are required 2024 as a result of the holiday Collection policy set forth in Section 9.03 of this Contract. The 2025 Contractor shall provide either a telephone answering service or mechanical device to 2026 receive Service Recipient inquiries during those times when the office is closed. Calls 2027 received after normal business hours shall be addressed the next Work Day morning. 2028 16.01.1 Emergency Contact. The Contractor shall provide the Contract 2029 Administrator with an emergency phone number where the Contractor can be reached 2030 outside of the required office hours.
2031 16.01.2 Multilingual/TDD Service. Contractor shall at all times maintain the 2032 capability of responding to telephone calls in English, Spanish and Russian. Contractor 2033 shall at all times maintain the capability or responding to telephone calls through 2034 Telecommunications Device for the Deaf (TDD) Services. 2035 16.01.3 Service Recipient Calls. During office hours, Contractor shall 2036 maintain a telephone answering system capable of accepting at least fifteen (15) 2037 incoming calls at one time. Contractor shall record all calls including any inquiries, 2038 service requests and complaints into a customer service log. 2039 16.01.4 All incoming calls will be answered within five (5) rings. Any call 2040 “on-hold” in excess of 1.5 minutes shall have the option to remain “on-hold” or to be 2041 switched to a message center where Service Recipient can leave a message. 2042 Contractor’s customer service representative shall return Service Recipient calls. For all 2043 messages left before 3:00 p.m., all “call backs” shall be attempted a minimum of one 2044 time prior to 5:00 p.m. on the day of the call. For messages left after 3:00 p.m., all “call 2045 backs” shall be attempted a minimum of one time prior to noon the next Work Day. 2046 Contractor shall make a minimum of three (3) attempts within twenty-four hours of the 2047 receipt of the call. If Contractor is unable to reach the Service Recipient on the next Work 2048 Day, the Contractor shall send a postcard to the Service Recipient on the second Work ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

2049 Day after the call was received, indicating that the Contractor has attempted to return 2050 the call.
2051 16.02 Call Center Performance Tracking.. Contractor will have a system in place 2052 to track monthly call center performance that will include, at a minimum, number of calls, 2053 abandoned rate, average speed of answer, average hold time, average handle time, and 2054 number of calls on hold for more than ten (10) minutes. 2055 Under no circumstances shall Contractor’s call center or other personnel direct any 2056 Service Recipient to contact the City. Doing so will subject the Contractor to 2057 Administrative Charges as provided for in Exhibit 9. 2058 ARTICLE 17. Street Sweeping Services
2059 17.01 Street Sweeping Service. Throughout the Term of the Contract, Contractor 2060 shall provide Street Sweeping Services as set forth in this Contract. If Contractor enters 2061 into a subcontract for Street Sweeping Services, pursuant to Section 36.02, Contractor 2062 shall require the subcontractor to comply with all standards and requirements set forth 2063 in this Contract for the provision of Street Sweeping Services. 2064 17.02 Compensation for Street Sweeping Services. Contractor shall collect the 2065 Street Sweeping Fee set forth in Exhibit 1 from Residential Service Units and that Street 2066 Sweeping Fee shall be full compensation for all Street Sweeping Services provided by 2067 the Contract.
2068 17.03 Manner of Service. Contractor shall provide a complete sweep of all Curb 2069 Miles on all Residential Streets and Commercial Streets located within the Service 2070 District. Within any Curb Mile, Contractor shall be responsible for sweeping all curbs 2071 including Median Islands, traffic calming islands and the corners from any cross street 2072 intersecting the subject street. Street Sweeping Services shall be performed in a manner 2073 such that all Sweep Waste is properly removed from all swept areas, including 2074 intersections, so that the street is in a clean condition. A clean condition is defined as 2075 the absence of Sweep Waste in the streets and gutters upon the completion of the 2076 sweeping operation in a manner that is consistent with industry standards and best 2077 management practices. To the extent needed to properly remove Sweep Waste, 2078 Contractor shall make multiple passes, or as necessary provide hand sweeping or 2079 vacuuming services.
2080 17.04 Traffic Laws. Contractor shall obey all laws governing the operation of the 2081 street sweepers on a public street, and shall perform its operations so that sweepers are 2082 traversing their routes in the normal direction of traffic. 2083 17.05 Parked Vehicles. In the event that Contractor’s operations are impeded by 2084 parked vehicles, Contractor shall bypass said parked vehicles. In such instances, the ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

2085 bypassed areas shall be considered as swept Curb Miles for purposes of calculating 2086 compensation.
2087 17.06 Call Backs. Whenever, in the sole opinion of the Contract Administrator, a 2088 section of street is inadequately swept such that all Sweep Waste has not been properly 2089 removed as required by Section 17.03, Contractor shall re-sweep the section in question 2090 within twenty-four (24) hours of receipt of verbal or written notification from the Contract 2091 Administrator.
2092 17.07 Water. Contractor shall obtain water services from the appropriate water 2093 utility companies for the water necessary in the street sweeping operation. The cost of 2094 the water shall be borne by Contractor. The proper volume and pressure shall be 2095 supplied by the sweeper at all times for adequate dust control during the sweeping 2096 operation. If reasonably available, City may direct Contractor to use reclaimed or 2097 recycled water due to increased availability of reclaimed water. 2098 17.08 Sweeper Speed. Contractor shall operate the sweepers at a speed of not 2099 more than six (6) to ten (10) miles per hour when sweeping or when the sweeper brooms 2100 are down. City will use industry standards, Environmental Protection Agency 2101 information, and the sweeper manufacturer's recommendation on the speed of 2102 sweepers when considering speeds greater than ten (10) miles per hour. 2103 17.09 Width of Sweeper Path. Contractor shall sweep a path, with all brooms 2104 down, with a width of not less than nine (9) feet unless parked vehicles, structures, or 2105 other objects prohibit the safe sweeping of this path width. The path shall begin at the 2106 face of the curb, and include the flow line of the gutter. Unless blocked by parked cars, 2107 or Containers, the face of the curb and gutter shall always be included within the 2108 sweeper path. On those streets with no curb, the width of the sweeper path shall be not 2109 less than nine (9) feet measured from the edge of the pavement toward the center of the 2110 street.
2111 17.10 Intersections. At all intersections, where debris has accumulated forming 2112 “invisible” islands, extra sweeper passes must be made to eliminate debris accumulation. 2113 17.11 Frequency and Day of Service. Contractor shall provide Street Sweeping 2114 Service for each Curb Mile in the Service District once every month to Residential 2115 Streets during the months of January through October, and twice every month during 2116 November and December. Contractor shall provide Street Sweeping Service for each 2117 Curb Mile in the Service District twice every month to Commercial Streets. However, in 2118 those instances where the scheduled Street Sweeping Service day falls on a holiday, 2119 Contractor shall adjust the route schedule as set forth in Section 9.03.

ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

2120 17.12 Hours and Days of Service. Contractor shall provide Street Sweeping 2121 Service on Residential Streets commencing no earlier than 6:00 a.m. and terminating 2122 no later than 4:00 p.m., Monday through Friday, with no service on Saturday or Sunday. 2123 Contractor shall provide Street Sweeping Service on Commercial Streets commencing 2124 no earlier than 10:00 p.m. and terminating no later than 6:00 a.m. The hours, days, or 2125 both of service may be extended or suspended due to extraordinary circumstances or 2126 conditions with the prior verbal consent of the Contract Administrator. 2127 17.13 Disposal of Sweep Waste. It shall be the responsibility of Contractor to 2128 transfer and dispose of Sweep Waste in a manner that complies with applicable local, 2129 state and federal laws, regulations and requirements. Contractor shall bear all costs 2130 associated with the hauling and disposal of Sweep Waste. 2131 17.14 Spillage. During hauling, all Sweep Waste shall be contained, covered or 2132 enclosed so that leaking, spilling and blowing of the Sweep Waste is prevented. 2133 Contractor shall be responsible for the immediate cleanup of any spillage caused by 2134 Contractor.
2135 17.15 Changes in Streets. Contract Administrator may require some streets to be 2136 temporarily removed from or added to the list of scheduled streets swept under this 2137 Agreement. Conditions which may cause the Contract Administrator to order a street or 2138 an area to be bypassed temporarily include the following:
2139 1. Construction or development on or along a street; 2140 2. Pavement maintenance activities;
2141 3. Inclement weather when running water is in the gutter or street such that 2142 sweeping is ineffective;
2143 4. Special sweeping on alternative schedule;
2144 5. Other legitimate reasons that make sweeping impractical as determined by 2145 the City Contract Administrator; and
2146 6. Special Events.
2147 In the event that the Contract Administrator notifies Contractor not to sweep on a 2148 temporary basis, the Contract Administrator shall notify Contractor of the temporary 2149 suspension of service at least one (1) Work Day prior to the scheduled sweep, except 2150 in the case when the reason for not performing service is due to inclement weather, the 2151 Contract Administrator may notify Contractor at any time. 2152 17.16 Obstructions. The equipment operator shall maintain a log showing the 2153 locations of roadways that cannot be adequately swept due to obstructions, including ITEM 20.1. ATTACHMENT 3

City of Rancho Cordova
Residential Solid Waste Services and Street Sweeping Contract

2154 low hanging tree limbs or deserted vehicles parked on City streets. Contractor shall 2155 report these locations to the Contract Administrator within forty-eight (48) hours. 2156 17.17 Hazardous Materials. Contractor shall not be required to remove any 2157 Hazardous Materials from the street surface. Contractor shall immediately contact 2158 Contract Administrator if Hazardous Materials are encountered during the provision of 2159 Street Sweeping Services.
2160 17.18 Coordination with Other City Programs. This Agreement requires the 2161 Contractor to establish and maintain good working relationships with various work units 2162 in the City. The Contractor shall be responsible for cooperating and coordination with 2163 the following City programs: Residential Garbage, Recycling, and Organic Recyclable 2164 Material collection programs; road construction, paving and maintenance projects; and 2165 special City events, including parades, bicycle races, street fairs, etc. 2166 17.19 Street Sweeping Service Routes.
2167 17.19.1 Provision of Service Route Maps. No later than December 1, 2024, 2168 City shall provide Contractor with existing Street Sweeping Service District maps 2169 precisely defining the Sweeper Routes currently in use (Exhibit 2). The route maps shall 2170 include the days of the month sweeping shall occur on Residential Streets and 2171 Commercial Streets in the Service District. Contractor shall provide Street Sweeping 2172 Services in accordance with those maps unless a route change is first approved by City 2173 pursuant to Section 17.19.2, below.
2174 17.19.2 Route Service Changes. Contractor shall submit to the Contract 2175 Administrator, in writing, any proposed route change (including maps thereof) not less 2176 than sixty (60) calendar days prior to the proposed date of implementation. The Contract 2177 Administrator may provide written comments to Contractor on such proposed change 2178 no later than ten (10) Work Days after receipt of the proposal from Contractor, and 2179 Contractor shall revise the routes to reflect such comments and return them to the 2180 Contract Administrator within ten (10) Work Days of receipt of such comments, for City 2181 corroboration. Contractor shall not implement any route changes without the prior 2182 approval of the Contract Administrator.
2183 17.19.3 Additional Work. Should the City elect to extend the street 2184 sweeping program to include newly constructed streets after the Effective Date of the 2185 Agreement, Contractor will provide Street Sweeping Services for those streets. City shall 2186 provide Contractor notice of the addition of such streets and Contractor provide City with 2187 amended Street Sweeping routes incorporating the new streets into the Street Sweeping 2188 schedule for City’s review and approval
2189 17.20 Equipment Specifications.

ITEM 20.1. ATTACHMENT 3