Rancho Cordova City Council
November 17, 2025

CITY OF RANCHO CORDOVA

CITY COUNCIL MEETING
Monday, November 17, 2025

5:30 PM – Regular Meeting
David B. Roberts Council Chambers

City Hall
2729 Prospect Park Drive, Rancho Cordova

How to Observe or Listen to the Meeting:
• Online via Zoom: https://cityofranchocordova.zoom.us/j/81630466928 • Webinar ID: 816 3046 6928
• By phone: +1 669 900 6833 or +1 253 215 8782
• Webinar ID: 816 3046 6928

Public Comment

Members of the public who wish to address the City Council may do so in person during the meeting by completing and submitting a Speaker Card to the City Clerk.

Members of the public who wish to provide public comment via email will need to submit comments to [email protected] no later than 2:00 p.m. on Monday, November 17, 2025. Written comments received no later than 2:00 p.m. will be distributed to the Council, filed in the record, and will not be read aloud. All comments submitted later than 2:00 p.m. will be distributed to the Council.

If you have questions related to the City Council Meeting, please contact the City Clerk’s Office at (916) 851-8720 before Monday, November 17, 2025, at 2:00 p.m.

AMENDED AGENDA

1. REGULAR MEETING - CALL TO ORDER/ROLL CALL

Rancho Cordova City Council - AMENDED AGENDA
Regular Meeting of Monday, November 17, 2025

Council Members Linda Budge, Garrett Gatewood, Joe Little, David Sander, and Mayor Siri Pulipati

2. METRO CABLE TV TELEVISION ANNOUNCEMENT

The Clerk will announce the meetings video recording and playback schedules.

3. PLEDGE OF ALLEGIANCE

The Mayor will call on someone in attendance to lead the Pledge.

4. INVOCATION

Chaplain John Kent with the Sacramento Law Enforcement Chaplaincy will give the invocation.

5. PRESENTATIONS

5.1. United College Action Network Presentation on the Summer 2025 Historically Black Colleges and Universities Tour.

5.2. Presentation of Proclamation Recognizing Soil Born Farms' 25th Anniversary.

5.3. Introduction of New Employees Deana Williams, Customer Service Representative by Stacy Leitner, City Clerk/Senior Executive Assistant to the City Manager and Harikishan Perugu, Principal Civil Engineer by Edgar Medina, Assistant Public Works Director.

5.4. Council Member Sander's Birthday on November 25, 2025.

6. PUBLIC COMMENT

Members of the public wishing to address the Council for any matter not on the agenda may do so at this time by completing and submitting a Speaker Card to the City Clerk.

For items on the agenda, speakers will be called by the Mayor at the point on the agenda when the item will be heard. Speakers are encouraged to keep comments to three minutes or less and to state name and community of residence.

Under the provisions of the California Government Code, the City Council is prohibited from discussing or taking immediate action on any item not on the agenda unless it can be demonstrated to be of an emergency nature or the need to take immediate action arose after the posting of the agenda.

7. COUNCIL REPORTS

8. CITY MANAGER'S REPORT

9. CONSENT CALENDAR ITEMS - ROLL CALL VOTE

9.1. Subject: Meeting Minutes from the Regular City Council Meeting of November 3, 2025.

Recommendation: Adopt the minutes.

9.2. Subject: A Resolution Authorizing the Public Works Director to Grant Non-Exclusive Franchises and Execute Agreements with Multiple Waste Hauling Companies for the Collection of Solid Waste, Recyclables, and Organic Materials from Businesses and Multi-

Rancho Cordova City Council - AMENDED AGENDA
Regular Meeting of Monday, November 17, 2025

Family Properties; and to Grant Non-Exclusive Franchises and Execute Agreements with Multiple Waste Hauling Companies for the Provision of Temporary Collection Service Only Recommendation: Adopt the Resolution.

9.3. Subject: A Resolution Authorizing the City Manager to Execute Contract No. 2025-236 with K&K JL Services, Inc. in an Amount not to Exceed $578,522 for Landscape Maintenance Services of Public Frontages in the Mather Commerce Area.

Recommendation: Adopt the Resolution.

9.4. Subject: A Resolution Authorizing the City Manager to Execute Contract Amendment No. 2024-42-1 with the Cordova Community Council Foundation to Modify the Mineshaft Digital Billboard Operating Agreement to Remove the "West" Sign from the Original Agreement and Change the Number of Signs from Two to One.

Recommendation: Adopt the Resolution.

9.5. Subject: A Resolution Approving Contract Amendment No. 165-2018-3 Between City of Rancho Cordova and Folsom Lake College for the Rancho Cordova College Promise Program.

Recommendation: Adopt the Resolution.

9.6. Subject: A Resolution Authorizing the City Manager to Execute Contract No. 2025-163 with DKS & Associates, Inc. in an Amount not to Exceed $1,000,000 for Professional Engineering Planning and Engineering Services for the Transportation Planning and Engineering Division.

Recommendation: Adopt the Resolution.

9.7. Subject: A Resolution Amending Resolution No. 5-2004 and Resolution No. 185-2004 to Update the Date on Which the City Council Shall Annually Select a Mayor and Vice Mayor.

Recommendation: Adopt the Resolution.

9.8. Subject: A Resolution Approving the Annexation of Land into Improvement Area No. 1 of the City of Rancho Cordova The Preserve Community Facilities District No. 2025-1.

Recommendation: Adopt the Resolution.

10. CONSENT PUBLIC HEARING ITEMS - ROLL CALL VOTE

10.1. Subject: A Resolution Vacating a Public Utility Easement at 3978 Security Park Drive Pursuant to the Provisions of Chapter 3, Part 3 of Public Streets, Highways, and Service Easements Vacation Law Commencing at Section 8320 of the California Streets and Highways Code.

Recommendation: Adopt the Resolution.

10.2. Subject: An Ordinance Adopting a Second Amendment to the Development Agreement Between the City of Rancho Cordova and Grantline 220 Investors, LLC Relative to the Suncreek Project.

Recommendation: Waive the first reading and introduce the Ordinance.

10.3. Subject: Second Reading of Ordinances Repealing and Replacing Various Chapters of Title 16 "Buildings and Construction," by Adopting by Reference State Building Codes and Making Local Amendments to Portions Thereof, and Adopting Other Related Codes.

Recommendation: Waive the second reading and adopt the Ordinances.

11. PUBLIC HEARING ITEMS

Rancho Cordova City Council - AMENDED AGENDA
Regular Meeting of Monday, November 17, 2025

11.1. Subject: A Resolution Determining the Need for Local Modifications to the California Building Standards Code and an Ordinance Repealing and Replacing Chapter 17.04, "Fire Code" to the Rancho Cordova Municipal Code by Adopting by Reference the 2025 California Fire Code and Making Local Amendments to Portions Thereof.

Recommendation: Adopt the Resolution and waive the first reading and introduce the Ordinance.

12. REGULAR CALENDAR ITEMS

12.1. Subject: Rancho Cordova Youth Center Update.

Recommendation: Receive the presentation.

12.2. Subject: A Resolution Approving the Modifications and Continuation of Existing Economic Development Incentives, and Introduction of a New Retail Incentive Program.

Recommendation: Adopt Resolution approving Economic Development Incentive Program updates and adoption of new Retail Incentive Program.

12.3. Subject: A Resolution Adopting the 2026 Rancho Cordova City Council Meeting Schedule.

Recommendation: Adopt the Resolution.

13. COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS

14. ADJOURN TO CLOSED SESSION

Mayor Pulipati will adjourn the meeting to closed session.

15. CLOSED SESSION - CALL TO ORDER/ROLL CALL
Council Members Linda Budge, Garrett Gatewood, Joe Little, David Sander, and Mayor Siri Pulipati

16. CLOSED SESSION
Council will meet in closed session to discuss the following item:

16.1. Subject: CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION (pursuant to California Government Code Section 54956.9(d)(1)) DPML Bear Hollow, LLC, a Delaware limited liability company and DPML Stonecreek, LLC, a Delaware limited liability company v.

City of Rancho Cordova, City Council of Rancho Cordova, and DOES 1 through 25, inclusive.

Sacramento Superior Court Case No. 23WM000122.

17. OPEN SESSION - REPORT FROM CLOSED SESSION
The City Attorney will report on action taken in closed session.

18. ADJOURNMENT

ADDITIONAL INFORMATION

Special Meetings listed below are subject to change/cancellation without further notice.

Unless the Council adopts a motion to extend the meeting, any item that is not initiated before 11:00 p.m. will be continued to the next day at 5:30 p.m. or scheduled on the next regular meeting agenda of the Council.

Public documents related to items on the open session portion of this agenda, which are distributed to the City Council less than 72 hours prior to the meeting, shall be available for public inspection at the

Rancho Cordova City Council - AMENDED AGENDA
Regular Meeting of Monday, November 17, 2025

time the documents are distributed to the Council. Documents are available for inspection at the City Clerk's office located in Rancho Cordova City Hall.

The agenda items are accessible on the City’s website at www.cityofranchocordova.org on Thursdays or Fridays prior to the Regular City Council Meeting.

UPCOMING MEETINGS
November 25, 2025 5:30 PM Special Meeting/Work Session
December 1, 2025 4:00 PM Special Meeting/5:30 PM Regular Meeting December 9, 2025 5:30 PM Special Meeting/Work Session
December 15, 2025 5:30 PM Regular Meeting

If you have any technical questions related to the agenda items, please contact City Hall at (916) 851- 8700.

The Rancho Cordova City Council meeting will be videotaped in its entirety and will be cablecast without interruption on Metro Cable 14, the Government Affairs Channel on the Comcast and Direct TV U-Verse Systems. Closed Captioning will be available on the playback cablecast. A DVD copy is available from the City Clerk’s Department, and a webcast of this meeting will be available for viewing via video streaming from the City’s website within 48 hours of adjournment of this meeting.

In compliance with the Americans with Disabilities Act, if you need a disability-related modification or accommodation, including auxiliary aids or services, to participate in this meeting, please contact the City Clerk’s Office at (916) 851-8720 at least 48 hours prior to the meeting.

CERTIFICATION OF POSTING OF AGENDA

I, Stacy Leitner, City Clerk for the City of Rancho Cordova, declare that the foregoing agenda for the November 17, 2025, Regular Meeting of the Rancho Cordova City Council was posted and available for review on November 14, 2025, at City Hall of the City of Rancho Cordova, 2729 Prospect Park Drive, Rancho Cordova, California, 95670. The agenda is also available on the city website at www.cityofranchocordova.org.

Signed November 14, 2025, at Rancho Cordova, California.

Stacy Leitner, CMC
City Clerk

ITEM 9.1. ATTACHMENT 1

CITY OF RANCHO CORDOVA

CITY COUNCIL MEETING
Monday, November 3, 2025

5:00 PM – Special Meeting/Closed Session
5:30 PM – Regular Meeting
David B. Roberts Council Chambers

City Hall
2729 Prospect Park Drive, Rancho Cordova

DRAFT MINUTES

1. SPECIAL MEETING - CALL TO ORDER/ROLL CALL

Mayor Pulipati called the Special meeting order in the David B. Roberts Council Chambers at 5:00 p.m.

Council Members Present: Linda Budge, Garrett Gatewood, and Mayor Siri Pulipati

Council Members Absent: Joe Little and David Sander

Staff Members Present: Palmer Hilton, Stacy Leitner, Persephonie Riley, and Micah Runner

2. PUBLIC COMMENT

Mayor Pulipati opened the public comment period. Seeing no speakers, Mayor Pulipati closed the public comment period.

3. ADJOURN TO CLOSED SESSION

Mayor Pulipati adjourned the meeting to closed session at 5:01 p.m.

4. CLOSED SESSION - CALL TO ORDER/ROLL CALL

Mayor Pulipati called closed session to order at 5:02 p.m.

Council Members Present: Linda Budge, Garrett Gatewood, Joe Little (arrived at 5:15 p.m.), and Mayor Siri Pulipati

Council Members Absent: David Sander

ITEM 9.1. ATTACHMENT 1 Rancho Cordova City Council - DRAFT MINUTES
Meeting of Monday, November 3, 2025

Staff Members Present: Adam Lindgren and Micah Runner

5. CLOSED SESSION

Council met in closed session to discuss the following item:

5.1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION: Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(2)(One case).

6. OPEN SESSION - REPORT FROM CLOSED SESSION

City Attorney Adam Lindgren reported that staff was given direction and no reportable action was taken in closed session.

7. ADJOURNMENT TO REGULAR MEETING

Mayor Pulipati adjourned closed session to the Regular meeting at 5:36 p.m.

8. REGULAR MEETING - CALL TO ORDER/ROLL CALL

Mayor Pulipati called the Regular meeting to order in the David B. Roberts Council Chambers at 5:37 p.m.

Council Members Present: Linda Budge, Garrett Gatewood, Joe Little, David Sander, and Mayor Siri Pulipati

Council Members Absent: None

Staff Members Present: Stacy Leitner, Adam Lindgren, Persephonie Riley, and Micah Runner

9. METRO CABLE TV TELEVISION ANNOUNCEMENT

The City Clerk read the meetings recordings and playback schedule.

10. PLEDGE OF ALLEGIANCE

City Attorney Adam Lindgren led the pledge.

11. INVOCATION

Dr. Dan DeShong with River City Christian Church gave the invocation.

12. PRESENTATIONS

12.1. Introduction of New Employees Landon Collins, Senior Building Inspector and Audreanna Coats, Administrative Assistant II by Jeremiah Zillig, Chief Building Official and Eileen Ly, Assistant Planner by Arlene Granadosin-Jones, Planning Manager.

13. PUBLIC COMMENT

Mayor Pulipati opened the public comment period. The following individuals addressed the Council or submitted public comment via email:

1. Helen Whelan-Bashaw

2. James Garcia

Mayor Pulipati closed the public comment period.

14. COUNCIL REPORTS

Council reported on events since the last meeting.

15. CITY MANAGER'S REPORT

ITEM 9.1. ATTACHMENT 1 Rancho Cordova City Council - DRAFT MINUTES
Meeting of Monday, November 3, 2025

City Manager Micah Runner gave his report.

16. CONSENT CALENDAR ITEMS - ROLL CALL VOTE

Mayor Pulipati opened the public comment period. Seeing no speakers, Mayor Pulipati closed the public comment period.

ACTION: Motion to approve items 16.1 through 16.7 by Sander second by Budge; Motion passed with a 5:0 vote.

16.1. Subject: Meeting Minutes from the Regular City Council Meeting of October 20, 2025.

Recommendation: Adopt the minutes.

16.2. Subject: A Resolution Authorizing the City Manager to Execute Agreements with 4Leaf, BPR, Great White, Shums Coda, and UpAvanti for On-call Consulting Services Relating to Plan Review, Permitting, and Field Inspections.

Recommendation: Adopt the Resolutions.

16.3. Subject: A Resolution Authorizing the City Manager to Execute Contract No. 2025-226 in an Amount not to Exceed $1,000,281 with Central Striping Service, Inc. for On-Call Traffic Stripes and Pavement Markings Maintenance Services.

Recommendation: Adopt the Resolution.

16.4. Subject: A Resolution Authorizing the City Manager to Execute Contract Amendment No. 2022-245-1 for Professional Services with MCE Corporation to Extend the Contract Term from November 30, 2025, to November 30, 2027, and Increasing the Contract Amount from $500,000, to an Amount not to Exceed $750,000, for Citywide Stormwater Pump Station Operations and Maintenance Services.

Recommendation: Adopt the Resolution.

16.5. Subject: A Resolution Authorizing the City Manager to Execute Contract No. 2025-230 with Wood Rodgers Inc in an Amount not to Exceed $221,660.00 to Provide the Final Design, Right of Way & Construction Administration Support Services for the White Rock Road Phase 3 Project.

Recommendation: Adopt the Resolution.

16.6. Subject: A Resolution Authorizing the Continued Use of Military Equipment for Law Enforcement.

Recommendation: Adopt the Resolution.

16.7. Subject: Treasurer's Report - September 30, 2025.

Recommendation: This report is informational only. It is recommended that the City Council receive and file the September 30, 2025, Treasurer’s Report.

17. CONSENT PUBLIC HEARING ITEMS - ROLL CALL VOTE

Mayor Pulipati opened the public comment period. Seeing no speakers, Mayor Pulipati closed the public comment period.

ACTION: Motion to approve item 17.1 and 17.2 by Budge second by Gatewood; Motion passed with a 5:0 vote.

17.1. Subject: A Resolution Approving the Community Development Block Grant 2026 Annual Action Plan.

Recommendation: Adopt the Resolution.

ITEM 9.1. ATTACHMENT 1 Rancho Cordova City Council - DRAFT MINUTES
Meeting of Monday, November 3, 2025

17.2. Subject: A Resolution Determining the Need for Local Modifications to the California Building Standard Code and Ordinances Repealing and Replacing Various Chapters of Title 16 "Buildings and Construction," by Adopting by Reference State Building Codes and Making Local Amendments to Portions Thereof and Adopting Other Related Codes.

Recommendation: Adopt the Resolution, waive the first reading and introduce the Ordinances.

18. PUBLIC HEARING ITEMS

None.

19. REGULAR CALENDAR ITEMS

19.1. Subject: Update on Illegal Fireworks and Safe and Sane Temporary Firework Stands.

Recommendation: Staff is seeking input on proposed adjustments to fine structures related to the use of illegal fireworks. Staff is also requesting that the City Council review the current Municipal Code provisions and licensing procedures related to safe and sane fireworks and provide feedback on potential updates to those regulations.

Mayor Pulipati opened the public comment period. The following individuals addressed the Council or submitted public comment via email:

1. Dennis Revell

Mayor Pulipati closed the public comment period.

ACTION: Input was received regarding Illegal Fireworks and Safe and Sane Temporary Firework Stands.

19.2. Subject: Community Enhancement & Investment Fund Update and Discussion.

Recommendation: Receive information and provide direction on FY 2026-2027 community grantmaking, a request to amend the Folsom Lake College Rancho Cordova College Promise Program's FY 2025-2026 allocation, and the transition of the Community Enhancement & Investment Fund's (CEIF) Citizen Oversight Board to a Citizen Oversight Committee.

Mayor Pulipati opened the public comment period. Seeing no speakers, Mayor Pulipati closed the public comment period.

ACTION: Input was received regarding the Community Enhancement & Investment Fund Update and Discussion.

20. COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS

1. Maintenance to Little Leage Fields

2. Discussion regarding Council Discretionary Funds

21. ADJOURNMENT

Mayor Pulipati adjourned the meeting in honor of the Federal Workers and Epoch Casino at 11275 Folsom Boulevard, Rancho Cordova, CA at 7:16 p.m.

__________________
Stacy Leitner, CMC
City Clerk

MEMORANDUM

City Council Staff Report - Page 1 of 2

ITEM 9.2.

DATE: November 17, 2025

TO: Honorable Mayor and Council Members

FROM: Albert Stricker, Public Works Director
Marc Hill, Management Analyst II

SUBJECT: A RESOLUTION AUTHORIZING THE PUBLIC WORKS DIRECTOR TO

GRANT NON-EXCLUSIVE FRANCHISES AND EXECUTE

AGREEMENTS WITH MULTIPLE WASTE HAULING COMPANIES

FOR THE COLLECTION OF SOLID WASTE, RECYCLABLES, AND

ORGANIC MATERIALS FROM BUSINESSES AND MULTI-FAMILY
PROPERTIES; AND TO GRANT NON-EXCLUSIVE FRANCHISES

AND EXECUTE AGREEMENTS WITH MULTIPLE WASTE HAULING

COMPANIES FOR THE PROVISION OF TEMPORARY COLLECTION

SERVICE ONLY

RECOMMENDATION

Adopt the Resolution.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution would authorize the Public Works Director to grant non-exclusive franchises and execute appropriate agreements with multiple waste hauling companies for the collection of solid waste, recyclables and organic materials from businesses and multi-family properties for the term beginning January 1, 2026.

BACKGROUND

Chapter 6.20.060 of the Rancho Cordova Municipal Code empowers the City Council to grant non-exclusive franchises to private waste hauling companies for the collection, transportation and disposal of solid waste, recyclables and organic materials generated at businesses and multi-family properties in Rancho Cordova. The current franchise agreements expire on December 31, 2025. The following is a summary of the proposed changes:
• Agreement Types: The commercial franchise agreement has been split into two separate agreements:
o An agreement for temporary service providers (e.g. dropping containers for a construction project) that restricts their activity to temporary and/or project-based work only (Non-Exclusive Temporary Franchise Agreement). o An agreement for commercial service provision (e.g. regular on-going dumpster service). This agreement allows haulers to provide commercial service and

City Council Staff Report - Page 2 of 2

temporary service (Non-Exclusive Commercial Collection Franchise Agreement).

This change was made because the current agreement does not distinguish between the two types of service providers. As such, haulers providing temporary and/or project-based work are subject to unnecessary contamination monitoring, route review and other requirements defined in state law. Having a separate agreement allows the applicable requirements to be clear.
• Term: The term of the proposed franchise agreements is January 1, 2026, through December 31, 2026, with an automatic annual renewal. This change provides the city with flexibility to incorporate changes more readily, if necessary, while at the same time alleviating the need to renew agreements every two to three years if no changes are necessary.
• Increased Customer Assistance: In an effort to encourage greater diversion and increase customer engagement, the Non-Exclusive Commercial Collection Franchise Agreement requires haulers to perform 80 site visits per year to discuss options for right- sizing service, increasing diversion and decreasing disposal. In addition, haulers must perform a comprehensive analysis for a minimum of 8 customers per year.

FISCAL IMPACT AND FUNDING SOURCE

The proposed franchise agreements maintain the eight percent franchise fee on revenue collected from businesses and multi-family properties for waste collection and disposal, which is consistent with the current franchise agreement. The eight percent franchise fee generates annual revenue in the range of $1,200,000 to $1,300,000.

ATTACHMENT(S)

1. Resolution

2. Non-Exclusive Commercial Collection Service Franchise Agreement

3. Non-Exclusive Temporary Service Franchise Agreement

ITEM 9.2. ATTACHMENT 1
Resolution No. XX-2025 Page 1 of 3

CITY OF RANCHO CORDOVA

RESOLUTION NO. XX-2025

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

OF CALIFORNIA, AUTHORIZING THE PUBLIC WORKS DIRECTOR TO GRANT NON-

EXCLUSIVE FRANCHISES AND EXECUTE APPROPRIATE AGREEMENTS WITH

MULTIPLE WASTE HAULING COMPANIES FOR THE COLLECTION OF SOLID WASTE,

RECYCLABLES AND ORGANIC MATERIALS FROM BUSINESSES AND MULTI-FAMILY

PROPERTIES

WHEREAS, beginning in December 2005 the City of Rancho Cordova has granted non- exclusive franchises and executed agreements with multiple waste hauling companies for the provision of waste collection and recycling services to businesses and multi-family properties and/or temporary collection service; and

WHEREAS, the term of the current franchise agreements expires on December 31, 2025; and

WHEREAS, the City Council of the City of Rancho Cordova acknowledges the need to provide state-of-the-art facilities, equipment and programs to local businesses and multi-family residential properties for the safe and legal collection, transportation, disposal and processing of garbage, recyclables, and organic materials; and

WHEREAS, the Legislature of the State of California, by enactment of California Integrated Waste Management Act (“AB 939”), Commercial Organics Recycling legislation (“AB 1826”) and Commercial Recycling legislation (“AB 341”), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for commercial waste diversion programs within their jurisdictions; and

WHEREAS, in September 2016 Senate Bill 1383 (SB 1383) was signed into law establishing methane emissions reduction targets representing the next step in California’s environmental protection strategy; and

WHEREAS, SB 1383 sets forth organics and recycling compliance targets as stated in Health and Safety Code Section 39730.6 which are designed to progressively achieve California’s goal of 75% recycling, composting or source reduction of solid waste by 2025; and

WHEREAS, California Green Building Standards Code—Part 11, Title 24, California Code of Regulations requires covered construction and demolition projects to divert a minimum of 65% of materials generated as part of the project; and

WHEREAS, city staff shared the proposed franchise agreements with interested parties and considered feedback provided by said parties for incorporation into the proposed franchise agreements; and

ITEM 9.2. ATTACHMENT 1
Resolution No. XX-2025 Page 2 of 3

WHEREAS, the following waste hauling companies currently hold a valid franchise with the city and have expressed interest in providing Non-Exclusive Commercial Collection Service franchise beginning January 1, 2026:

Atlas Disposal Industries
Greenwaste of Sacramento
Republic Services
WM, Inc.

WHEREAS, the following waste hauling companies currently hold a valid franchise with the City and have expressed interest in providing Non-Exclusive Temporary Service franchise beginning January 1, 2026:

Advance Disposal Patrick’s Construction Cleanup
Ferma Greenbox Quality Construction Cleanup
North Cal Hauling Company Waste Removal and Recycling

WHEREAS, the following waste hauling companies submitted a franchise hauler application with the City and satisfied the requirements to enter into a new Non-Exclusive Temporary Service franchise beginning January 1, 2026:

Precizion Partners, Inc.

Reliable Dumpster Service

WHEREAS, the franchise agreements confer significant benefits to franchisees including the use of city right of way to perform services; and

WHEREAS, the City Council is committed to a solid waste management program that ensures compliance with local, state and federal laws and regulations.

NOW, THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA does delegate to the Public Works Director, pursuant to Rancho Cordova Municipal Code section 6.20.060, the authority to grant non-exclusive franchises and execute appropriate agreements (A Non-Exclusive Commercial Collection Franchise Agreement and A Non-Exclusive Temporary Service Franchise Agreement) with waste hauling companies for the provision of business and multi-family waste collection and recycling services and/or temporary collection service, in a form approved by the City Attorney.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 17th day of November 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ITEM 9.2. ATTACHMENT 1
Resolution No. XX-2025 Page 3 of 3

ATTEST:

Siri Pulipati, Mayor

Stacy Leitner, CMC
City Clerk

CONTRACT NO. 2025-[CONTRACT_NUMBER]

NON-EXCLUSIVE COMMERCIAL COLLECTION

SERVICE FRANCHISE AGREEMENT BETWEEN THE

CITY OF RANCHO CORDOVA AND
[CONTRACTOR]

ITEM 9.2.

ATTACHMENT 2

CONTRACT NO. 2025-[CONTRACT_NUMBER]

RECITALS ................................................................................................................... 4 Article 1. Definitions. .................................................................................................. 6 Article 2. Grant of Non-Exclusive Franchise. .............................................................14 Article 3. Acceptance of Franchise. ...........................................................................14 Article 4. Term of Franchise. .....................................................................................14 Article 5. Conditions for Effectiveness. ......................................................................14 Article 6. Limitations on Scope of Franchise. ............................................................15 Article 7. Franchise Fees. .........................................................................................15 Article 8. Franchise Fee Payment. ............................................................................16 Article 9. Approval of Facilities ..................................................................................17 Article 10. Transportation, Processing, Diversion: Temporary Service. .....................18 Article 11. Transportation, Processing, Diversion: Commercial Collection Service. ...20 Article 12. Ownership of Commercial and Temporary Solid Waste. ..........................21 Article 13. Container Placement. ...............................................................................21 Article 14. Commercial Collection Service................................................................. 21 Article 15. Multi-Family Residential Property Bulky Waste Collection Service. ..........24 Article 16. Service Agreements .................................................................................24 Article 17. Outreach and Education...........................................................................26 Article 18. Reporting Requirements. .........................................................................28 Article 19. Inspection Authority. .................................................................................32 Article 20. Insurance Requirements. .........................................................................33 Article 21. Indemnity. ................................................................................................35 Article 22. Equipment. ...............................................................................................37 Article 23. Abandoned Containers. ...........................................................................38 Article 24. FRANCHISEE Provided Containers. ........................................................38 Article 25. Vehicle Signage. ......................................................................................39 Article 26. Personnel. ................................................................................................39 Article 27. Customer Service.....................................................................................39 Article 28. Compliance with Law. ..............................................................................40 Article 29. Permits and Licenses. ..............................................................................40 Article 30. Administrative Charges. ...........................................................................40 Article 31. Changes in Law. ......................................................................................41 Article 32. Default, Termination. ................................................................................41 ITEM 9.2.

ATTACHMENT 2

CONTRACT NO. 2025-[CONTRACT_NUMBER]

Article 33. Conditions Upon Termination. ..................................................................43 Article 34. Notices. ....................................................................................................43 Article 35. Relationship of Parties. ............................................................................44 Article 36. Compliance with Law. ..............................................................................44 Article 37. Governing Law. ........................................................................................44 Article 38. Jurisdiction. ..............................................................................................45 Article 39. Assignment. .............................................................................................45 Article 40. Binding on Successors. ............................................................................45 Article 41. Waiver. .....................................................................................................46 Article 42. FRANCHISEE'S Investigation. ................................................................. 46 Article 43. Entire Agreement. ....................................................................................46 Article 44. Interpretation. ...........................................................................................46 Article 45. Amendment. .............................................................................................46 Article 46. Severability. .............................................................................................46 Franchised Waste Hauler Incident Communication Protocol ..............................................53

Exhibits
Exhibit 1: City -Approved Facilities
Exhibit 2: Administrative Charges
Exhibit 3: Incident Protocol

ITEM 9.2.

ATTACHMENT 2

CONTRACT NO. 2025-[CONTRACT_NUMBER]

NON-EXCLUSIVE COMMERCIAL COLLECTION SERVICE

FRANCHISE AGREEMENT BETWEEN

THE CITY OF RANCHO CORDOVA
AND [CONTRACTOR]
This Non-Exclusive Commercial Collection Service Franchise Agreement (“Agreement”) is made and entered into this [DATE] by and between the City of Rancho Cordova, a municipal corporation of the State of California, hereinafter referred to as “CITY”, and [ CONTRACTOR], hereinafter referred to as "FRANCHISEE".

RECITALS
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) (California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for solid waste, recyclable materials and organic recyclable materials handling within their jurisdictions; and WHEREAS, the Legislature of the State of California, by enactment of Commercial Recycling legislation (“AB 341”) has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for commercial recycling within their jurisdictions; and WHEREAS, the Legislature of the State of California, by enactment of Commercial Organics Recycling legislation (“AB 1826”), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for commercial organics recycling within their jurisdictions; and WHEREAS, in September 2016 Senate Bill 1383 (SB 1383) was signed into law, establishing methane emissions reduction targets representing the next step in California’s environmental protection strategy; and
WHEREAS, SB 1383 sets forth organics and recycling compliance targets as stated in Health & Safety Code § 39730.6 which are designed to progressively achieve California’s goal of 75% recycling, composting or source reduction of solid waste by 2025; and WHEREAS the California Green Building Standards Code – Part 11, Title 24, California Code of Regulations – known as CALGreen, requires diversion of construction and demolition materials from landfill disposal; and
WHEREAS, CITY has determined that the public health, safety and welfare require that non- exclusive Franchises be awarded to qualified franchisees for the collection, transport, processing and disposal of solid waste, recyclable materials, organic recyclable materials and construction and demolition materials in the CITY; and
WHEREAS, the Legislature has found and declared in Section 49510 of the Public Resources Code that it is in the public interest to foster and encourage solid waste enterprises so that, at all times, ITEM 9.2.

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there will continue to be competent enterprises willing and financially able to furnish needed solid waste handling service; and
WHEREAS, one of the purposes of this Agreement is to regulate such non- exclusive Franchises in order to ensure the orderly collection, transportation, processing and disposal of construction and demolition debris , solid waste, recyclables, and organics in the CITY, and to minimize the potential for adverse effects it may have on the local environment; and WHEREAS, CITY requires all solid waste collectors providing commercial solid waste services in the CITY to obtain a non- exclusive Franchise for the collection of commercial solid waste (Commercial Franchise) in order to regulate this business, ensure its orderly op eration, and minimize the potential for adverse effects it may have on the local environment; and WHEREAS, CITY has determined that the FRANCHISEE does meet the requirements for the granting of such a Franchise and that the grant of a Commercial Franchise to FRANCHISEE is in the public interest; and
WHEREAS, CITY intends to receive value for the Franchise issued, through the payment by FRANCHISEE to CITY of a franchise fee, which represents a toll or rental for the use of CITY streets and rights of way; and
WHEREAS, the franchise agreements confer significant benefits to franchisees including the use of CITY right of way to perform services; and
WHEREAS, the CITY’s franchise fees are similar to and in some instances lower than comparable or geographically proximate jurisdictions; and
WHEREAS, the CITY has analyzed the amount of franchise fees charged to franchised waste haulers and has determined that these fees are reasonable in relationship to the value and benefits conferred to each franchisee for the use of the CITY’s right of way to perform services pursuant to the franchise agreement as well as the increased burden to CITY to maintain its right of way attributed to traffic from franchisees’ vehicles; and
WHEREAS, FRANCHISEE agrees to and acknowledges that it shall arrange for the proper disposal of all garbage and the proper processing for maximum materials recovery of all designated recyclable materials, all designated organic recyclable materials, and all construction and demolition debris collected in the CITY. CITY is not instructing FRANCHISEE how to collect, transport, process or dispose of commercial garbage, recyclables, organics or construction and demolition debris as long as its operation is consistent with the Rancho Cordova Municipal Code and all applicable State and Federal laws; and WHEREAS, CITY and FRANCHISEE desire to enter into a non- exclusive Commercial Collection Service Franchise Agreement in order that FRANCHISEE may perform commercial solid waste, temporary solid waste, and construction and demolition debris collection, transportation, processing and disposal services in the CITY.

NOW, THEREFORE, based on the mutual promises contained herein, the parties agree as follows:

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Article 1. Definitions.

For the purpose of this Commercial Collection Service Franchise Agreement, the definitions contained in this Article shall apply unless otherwise specifically stated. If a word or phrase is not defined in this Article , the definition of such word or phrase as contained in the Chapters 6.20 and 6.21 of the Rancho Cordova Municipal Code (“RCMC”) shall control. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural. Use of the masculine gender shall include the feminine gender.

1.01 “Agreement”. Agreement means the written Non-Exclusive Commercial Collection Service Franchise Agreement between the CITY and the FRANCHISEE covering the work to be performed, as well as all contract documents attached to the agreement and made a part thereof.

1.02 “ Alternative Compliance”. Alternative Compliance means a City -approved method by which a Customer that does not subscribe to a collection service for O rganic Materials or Recyclable Materials manages Organic Materials or Recyclable Materials respectively . Alternative Compliance can consist of self-hauling, back-hauling, or shared services. City-approval of an application from the Customer is required in order for the Alternative Compliance to be in effect. The CITY may also revoke the Alternative Compliance should the Customer no longer qualify and/or present inadequate supporting documentation related to self-hauling, back-hauling or shared services.

1.03 “Applicable Law”. All federal, state, county and local laws, regulations, rules orders, judgments, decrees, rulings, permits, approvals, or other requirement of any governmental entity or regulatory or quasi -regulatory authority having jurisdiction over an aspect of the Collection Services, including judicial interpretations thereof, that are in force on the Effective Date, and as may be enacted or amended thereafter, until termination or expiration of this Agreement.

1.04 “ Bin.” A metal or plastic container, with a capacity of one (1) cubic yard up to and including eight (8) cubic yards, designed or intended to be mechanically dumped into a front or rear -load packer vehicle. Bins may also include compactors that are owned by a Customer or the FRANCHISEE.

1.05 “ Brokerage Services”. Brokerage Services means the arrangement of Collection Services between a Business or Multi-Family Residential Property and a Franchised Service Provider wherein there is a third -party Franchised Service Provider that facilitates the sale, Container provision, billing, or some combination of these services.

1.06 “ Brown Goods”. Electronic equipment such as stereos, televisions, computers, monitors, VCR’s and other similar items.

1.07 “Bulky Waste Collection Service”. Bulky Waste Collection Service is the periodic on- call Collection of Large Items, by the FRANCHISEE, and the delivery of items to a City -Approved Processing Facility or such other facility as may be appropriate under the terms of this Agreement. Bulky Waste Collection Service includes the collection of items such as, but not limited to, furniture, carpets, mattresses, ITEM 9.2.

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electronic equipment and appliances. Bulky Waste Collection Service may include the Collection of Large Items using Roll-Off Containers.

1.08 “Business”. Business means a commercial entity, proprietorship, firm, partnership, person in representative or fiduciary capacity, association, venture, trust, or corporation that is organized for financial gain or profit, including but not limited to, offices, retail stores, markets, manufacturing facilities, warehouse and distribution facilities, restaurants, motels and hotels, theaters, medical offices, gas stations and automotive facilities; and not-for-profit organizations, associations and entities, including but not limited to, churches, hospitals, and social service organizations.

1.09 “Business Day.” Business Day means any Monday through Friday, excluding any holidays.

1.10 “ Cart.” A heavy plastic receptacle with an approximate capacity of at least thirty -two (32) and not more than one hundred (100) gallons, having a hinged tight-fitting lid and wheels.

1.11 “CITY”. CITY means the City of Rancho Cordova, California and all the territory lying within its boundaries as presently existing or as such boundaries may be modified during the term of this Agreement.

1.12 “City-Approved C&D Sorting Facility”. City-Approved C&D Sorting Facility means a City- approved facility that receives C&D Debris and/or processes C&D Debris into its component material types for reuse, recycling, and disposal of residuals. A list of approved facilities is included in Exhibit 1.

1.13 “City-Approved Disposal or Transfer Facility”. City-Approved Disposal or Transfer Facility means a City -approved Landfill that accepts Solid Waste for disposal or a Transfer Station that accepts Solid Waste for processing and/or transfer to a permitted facility for disposal. A list of approved facilities is included in Exhibit 1.

1.14 “City-Approved Material Processing Facility”. City-Approved Material Processing Facility means a City -approved facility that: 1) receives mixed Recyclable Material and processes Recyclable Material into its component material types for reuse, recycling, and disposal of residuals, or 2) receives Organic Recyclable Material and/or processes Organic Recyclable Material into its component material types for the recycling of organic waste, and disposal of residuals. A list of approved facilities is included in Exhibit 1.

1.15 City Manager. “City Manager” means the City Manager of the City of Rancho Cordovas, or his or her designated representative, or any employee of the CITY who succeeds to the duties and responsibilities of the City Manager.

1.16 “Collection” or “Collect”. Collection means the act of picking up and removing Garbage, Recyclable Materials, or Organic Recyclable Materials at the place of generation.

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1.17 ”Collection Services”. Collection Services means FRANCHISEE’s obligations under this Commercial Collection Service Franchise Agreement to collect Solid Waste within the CITY. Collection Services are inclusive of Commercial Collection Services, On-Call Service and Temporary Services.

1.18 “Commercial Collection Services”. Commercial Collection Services means the weekly Collection of Designated Organic Recyclable Materials , Designated Recyclable Materials and/or Commercial Garbage in the CITY by Franchised Service Provider and associated transportation, processing and/or disposal of listed material types.

1.19 “Commercial Garbage” or “Garbage”. Commercial Garbage means waste that is generated by a Business or Multi -Family Residential Property and Collected at such Business or Multi -Family Residential Property but does not include Designated Recyclable or Designated Organic Recyclable Materials.

1.20 “Contract Administrator”. Contract Administrator means the Contract Administrator, or his or her designee, designated by the CITY to administer and monitor the provisions of the Agreement.

1.21 “Construction and Demolition Debris” or “C&D Debris”. C&D Debris means used or discarded materials resulting from construction, renovation, remodeling, repair, or demolition operations on any pavement, house, commercial building, or other structure, and such other materials as may be removed during the normal cleanup process of such construction, renovation, remodeling, repair, or demolition operations. This includes mixed construction and demolition debris and source separated recyclable construction and demolition materials that are not hazardous as defined in California Health and Safety Code Section 25100 et seq. Such materials include, but are not limited to, concrete, asphalt, wood, metal, brick, dirt, sand, rock, gravel, plaster, glass, gypsum wallboard, cardboard and other associated packaging, roofing material, ceramic tile, carpeting, masonry, plastic pipe, trees, and other vegetative matter resulting from land clearing and landscaping.

1.22 “Container”. Container means a Bin, Cart, Debris Box or Roll -Off Container for use by Customers for Collection Services under this Agreement.

1.23 “Covered Generator”. Covered Generator means all Businesses and Multi -Family Residential Properties that are subject to the requirements of Chapter 6.21 of the Rancho Cordova Municipal Code.

1.24 “Covered Project”. Covered project is defined in Rancho Cordova Municipal Code Section

16.92.020.J, and means a project that meets one or more of the following criteria: (1) is new construction; (2) is a demolition project; or (3) is a tenant improvement with a permit valuation greater than or equal to $250,000. “Covered project” shall not include: (1) activities performed in response to an emergency, such as a natural disaster; or (2) activities that contain significant amounts of materials that cannot be disposed of in Class II sanitary landfills described in Title 27, Section 20250 of the California Code of Regulations, and as may be amended from time to time.

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1.25 “Customer”. Customer means a Business or Multi- Family Residential Property owner or generator, or their contractor or other designated responsible person, or Residential Service Unit wishing to use FRANCHISEE service for Temporary Debris not acceptable through the Exclusive Residential Franchise Agreement who enters into a contract or other sales agreement with FRANCHISEE for Collection Services.

1.26 “Designated Green Materials” or “Green Materials”. Green Materials means materials that are required to be separated by Covered Generators from Commercial Garbage and Designated Recyclable Materials prior to disposal and returned for use or reuse in the form of raw materials for new, used or reconstituted products. Green Materials include, but are not limited to: yard trimmings, grass, weeds, leaves, pruning, branches, dead plants, brush, tree trimmings, dead trees, small wood pieces and other types of organic yard waste. Green Materials does not include food scraps and paper contaminated with food scraps.

1.27 “Designated Organic Recyclable Materials” or “Organic Recyclable Materials” or “Organics”. Organics means materials that are required to be separated by Covered Generators from Commercial Garbage and Designated Recyclable Materials prior to disposal and returned for use or reuse in the form of raw materials for new, used or reconstituted products. Organic Recyclable Materials include the following materials: food waste, Green Materials, landscaping and pruning waste, nonhazardous wood waste, and food-soiled paper waste that is mixed in with food waste.

1.28 “Designated Recyclable Materials” or “Recyclable Materials” or “Recyclables”. Recyclables means materials that are required to be separated by Customers from Commercial Garbage and Designated Organic Recyclable Materials prior to disposal and returned for use or reuse in the form of raw materials for new, used or reconstituted products. Recyclable Materials currently include: newsprint (including inserts); mixed paper (including magazines, catalogs, envelopes, junk mail, corrugated cardboard, Kraft brown bags and paper, paperboard, paper egg cartons, and telephone books); glass containers; aluminum beverage containers; small scrap and cast aluminum (not exceeding ten (10) pounds in weight for any single item); steel including ”tin” cans and small scrap (not exceeding ten (10) pounds in weight for any single item); bimetal containers; plastic containers (#1 and #2); aseptic containers;; and those materials accepted by FRANCHISEE or CITY for Recycling, as updated from time to time.

1.29 “Franchise”, “Franchise Agreement” or “Agreement”. Agreement means this written document and all exhibits and amendments thereto between CITY and FRANCHISEE.

1.30 “ Franchised Service Provider .” Franchised Service Provider means a waste collection provider operating under a Franchise Agreement in the City of Rancho Cordova.

1.31 “Gross Revenue”. Gross Revenue means all monetary amounts actually received by FRANCHISEE for the performance of Collection Services. Gross Revenues includes all receipts from Customers inclusive of container rentals, late charges, fuel surcharges, and contamination fees. Gross ITEM 9.2.

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Revenue does not include revenues generated from the sale of Recyclable Materials, compost, energy, grants, cash awards, California Department of Conservation payments, or rebates.

1.32 “Hauler Route”. Hauler Route means the designated weekly itinerary or sequence of stops scheduled to be performed by one collection vehicle providing regularly scheduled Solid Waste, Recyclable Material, or Organics collection services (not Temporary ) within the Company’s collection service area under the Agreement.

1.33 “Hazardous Materials”. Hazardous Materials means those materials that may have a negative impact on human health or the environment, including but not limited to all hazardous materials defined in Health and Safety Code Section 25501, subdivision (n), namely any material that, because of its quantity, concentration, or physical or chemical characteristics, poses a significant present or potential hazard to human health and safety or to the environment if released into the workplace or the environment.

Under this Agreement, “Hazardous Materials” include, but are not limited to, hazardous substances, hazardous waste, per - and polyfluoroalkyl substances (“PFAS”), lead- containing paint, polychlorinated biphenyls (“PCBs”), asbestos -containing materials (“ACMs”), asbestos containing construction materials (“ACCMs”), and any material that FRANCHISEE reasonably believe(s) would, as a result of or upon acceptance, be violation of local, state, or federal law, regulation, or ordinance, including waste that cannot be disposed of in Class III landfills or material or waste that in FRANCHISEE’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose FRANCHISEE or CITY to potential liability. Hazardous Materials does not include any materials, wastes, or Solid Waste defined as allowable materials for collection through this Agreement.

1.34 “Landfill”. Landfill means a City-approved facility that: has obtained and maintains for the term of the Agreement valid permit(s) to dispose of Solid Waste and such other materials as may be delivered by FRANCHISEE under the terms of this Agreement. Landfills are included as a City -Approved Disposal Facility.

1.35 “Large Items”. Large Items means those materials Collected as part of Bulky Waste Collection Services that includes, but is not limited to: furniture, carpets, mattresses, White Goods , Brown Goods, clothing, tires, or some combination of such items.

1.36 “Multi-Family Residential Property” or “MFD Property”. MFD Property means five (5) or more residential dwelling units located on a single parcel of land and any mobile home park located within the CITY.

1.37 “National Contracts”. National Contracts means contracts between waste management companies and multi-sited waste generating companies that currently operate in more than one state in the United States.

1.38 “ Non-Exclusive Commercial Collection Service Franchise Agreement”. Non-Exclusive Commercial Collection Service Franchise Agreement means an agreement between the CITY and a ITEM 9.2.

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Franchised Service Providers to provide regular Commercial Collection Services , On-Call Services and Temporary Service to Customers.

1.39 “ Non-Exclusive Temporary Service Agreement ”. Non-Exclusive Temporary Service Agreement means an agreement between the CITY and a Franchised Service Provider to provide Temporary Service.

1.40 “ On-Call Service ”. On -Call Service means Collection using Containers provided to a Customer where the Containers are placed indefinitely and the Customer requests service as needed as opposed to regular weekly, or more frequent, service. On- Call Service is performed by a person or company that holds a valid Non- Exclusive Commercial Collection Service Franchise Agreement with the CITY for the delivery of those materials to a City-Approved Material Processing Facility or City -Approved Disposal or Transfer Facility.

1.41 “Organics Recycling”. Organics Recycling means the process of Collecting, sorting and treating Organic Recyclable Materials and/or Green Materials that would have otherwise become Commercial Solid Waste and returning them to a safe, nuisance- free compost product by treating the materials to a controlled biological decomposition to ensure compliance with SB 1383.

1.42 “Prohibited Container Contaminants”. Prohibited Container Contaminants means any of the following:

1.42.1 Non-Organic Recyclable Materials placed in the Organics Container, including but not limited to, textiles and carpets, manure, biosolids, digestate, sludges, non-compostable paper, Construction & Demolition Debris, and Hazardous Waste;

1.42.2 Material placed in the Garbage Container that is specifically identified under the Agreement for collection in the Organics Container or the Recyclables Container;

1.42.3 Non-Recyclable Material placed in the Recyclables Container. Paper products and printing and writing paper may be considered acceptable and not considered Prohibited Container Contaminants if they are placed in the Recyclables Container.

1.43 “Recycling” or “Recycled”. Recycled means the process of Collecting, sorting, cleansing, treating and reconstituting Recyclable Materials that would otherwise become Commercial Garbage and returning them for use or reuse in the form of raw materials for new, used or reconstituted products which meet the quality standard necessary to be used in the marketplace. Recycling does not include transformation as defined in Public Resources Code Section 40201.

1.44 “Residential Service Unit”. Residential Service Unit means any single- family dwelling unit in the CITY.

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1.45 “Risk Manager”. Risk Manager is a CITY staff member or designee who provides management and advice regarding all insurance operations for the CITY.

1.46 “ Roll-Off Container”. Roll-Off Container means a metal container with a capacity of ten (10) or more cubic yards that is normally loaded onto a motor vehicle and transported to an appropriate facility.

Roll-Off Containers may also include compactors that are owned by a Customer or the FRANCHISEE.

1.47 “ Route Review ”. A Route Review means a visual inspection, whether by a person or technology, of contents within Containers along a Hauler Route for the purpose of identifying Prohibited Container Contaminants

1.48 “Service Acknowledgement”. Service Acknowledgement means a written form provided by the FRANCHISEE and completed by the Customer as part of the sales transaction for Temporary Service denoting whether the material being collected is from a Covered Project and acknowledgement of responsibility to recycle the material to the maximum extent feasible.

1.49 “Service Agreement”. Service Agreement means a written agreement between FRANCHISEE and a Customer concerning the provision of Commercial Collection Services.

1.50 “ Service Unit.” Service Unit means a single subscriber to FRANCHISEE’s Solid Waste Collection. This includes all retail, professional, wholesale, and industrial facilities, as well as other commercial enterprises offering goods or services to the public and MFDs, that utilize a Garbage Bin, Cart, Compactor, or Roll-Off Container for the accumulation and set-out of Commercial Solid Waste.

1.51 “Solid Waste”. Solid Waste means all putrescible and non-putrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, Construction and Demolition Debris, discarded home and industrial appliances, dewatered, treated or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semi -solid wastes, and other discarded solid and semi -solid wastes. Solid Waste does not include any Hazardous Material, including any hazardous waste or low -level radioactive waste regulated under Chapter 7.6 (commencing with Section 25800) of Division 20 of the Health and Safety Code, or medical waste. Solid Waste includes Recyclable Materials and Organic Recyclable Materials that are set out for separate Collection for the purposes of Recycling or Organics Recycling, and that are not landfilled.

1.52 “Source Separate” or “Source Separated”. Source Separated means the process of removing Recyclable Materials or Organic Recyclable Materials from Garbage for the purpose of Recycling or Organics Recycling, done by the Customer.

1.53 “Technical Assistance”. Technical Assistance providing direct, in- person assistance to Customers including, but not limited to, the following: site visits, waste audits, container right -sizing, signage suggestions/provision, etc. with the goal to increase diversion of and decrease disposal of Recyclable Materials and Organic Recyclable Materials.

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1.54 “Temporary Debris”. Temporary Debris means used or discarded materials resulting from construction, remodeling, repair, demolition, or cleanup operations on any type of structure or property.

May include commingled Green Materials, Recyclable Materials and non- recyclable C&D Debris.

Temporary debris is not routine, weekly Solid Waste generated by the standard operation of a business or residence.

1.55 “Temporary Service”. Temporary Service includes subcategories of Temporary Roll -Off Service and Temporary Cart and Bin Service, and means Collection using Containers provided to a Customer on an as -needed basis for the temporary Collection of Solid Waste in conjunction with construction, demolition, clean up, or other time- limited project. Temporary Service is not ongoing, weekly collection of routine Solid Waste or On-Call Service. Temporary Service is provided by a person or company that holds a valid Non-Exclusive Commercial Collection Services or Temporary Service Agreement with the CITY for the delivery of those materials to a processing or disposal facility.

1.55.1 “Temporary Roll-Off Service”. Temporary Roll-Off Service means Collection of Roll-Off Containers for the purpose of Collecting Temporary Debris.

1.55.2 “Temporary Cart and Bin Service.” Temporary Cart and Bin Service means Collection of Carts and Bins from Businesses and Multi-Family Residential Properties for the purpose of Collecting Temporary Debris.

1.56 “Transfer Station”. Transfer Station means a City-approved facility that: has obtained and maintains for the term of the Agreement valid permit(s) to accept, process or consolidate Solid Waste and such other materials as may be delivered by FRANCHISEE under the terms of this Agreement for delivery to another facility for further processing or disposal . Transfer Stations are included as a City -Approved Disposal or Transfer Facility

1.57 “ White Goods”. Inoperative and discarded refrigerators, ranges, water heaters, freezers, and other similar household appliances.

1.58 “ Waiver”. Waiver means a City-Approved De Minimis Waiver or Physical Space Waiver.

1.58.1 “De Minimis Waiver.” De Minimis Waiver means a City -approved Waiver in circumstances where the Covered Generator’s total Solid waste generations is either

1.58.1.1 T wo cubic yards or more per week and Organics subject to collection in a Recyclables Container or Organics Container comprises less than 20 gallons per week of the Covered Generator’s Solid Waste; or

1.58.1.2 Less than two cubic yards per week and Organics subject to collection in a Recyclables Container or Organics Container comprises less than 10 gallons per week of the Covered Generator’s Solid Waste; or
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1.58.2 “Physical Space Waiver.” Physical Space Waiver means a City -approved Waiver in circumstances where the Service Unit lacks adequate space for Recyclables or Organics Containers.

Article 2. Grant of Non-Exclusive Franchise.

CITY hereby grants to FRANCHISEE a Franchise for Commercial Collection Service authorizing FRANCHISEE to engage in the business of Collecting, transporting, processing, and disposing of Commercial Solid Waste and Temporary Debris kept, accumulated or generated in CITY and to use the public streets and rights of way for such purpose.

Article 3. Acceptance of Franchise.

FRANCHISEE hereby accepts the Franchise on the terms and conditions set forth in this Agreement, Chapters 6.20 (Solid Waste Management), 6.21 (Business and Multifamily Recycling and Organics Recycling), and 16.92 (Construction and Demolition (C&D) Debris) of the Rancho Cordova Municipal Code, and all related ordinances and resolutions. Execution of this Agreement shall not constitute the notification required by Public Resources Code Section 49520.

Article 4. Term of Franchise.

4.01 Subject to Article 32 of this Agreement, the term of the Franchise granted to FRANCHISEE shall be from January 1, 2026 through December 31, 2026. The effective date of this Agreement shall be January 1, 2026.

4.02 This Agreement shall renew automatically on each anniversary of the effective date for a one (1) year term unless cancelled in writing by either party no later than ninety (90) days written notice prior to the next renewal date.

4.03 In the event the Agreement proceeds via an automatic renewal, either CITY or FRANCHISEE may give notice of a desire to negotiate material changes to this Agreement no later than one hundred eighty (180) days prior to the end of the term of this Agreement, and the parties agree to negotiate in good faith regarding such proposed changes.

4.04 In the event the Agreement proceeds via an automatic renewal, FRANCHISEE shall provide CITY with updated information identifying all administrative changes since the submission of the initial application or the last application update no later than ninety (90) days prior to the end of the term of this Agreement, including but not limited to change in ownership, contact, address, insurance and other information that does not materially alter the structure of the Agreement.

Article 5. Conditions for Effectiveness.

The effectiveness of this Agreement is subject to FRANCHISEE's satisfaction of each and all of the conditions set forth below, each of which may be waived in whole or in part by CITY. Any such waiver must be in writing.

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5.01 Absence of Litigation. There is no litigation pending on the effective date in any court challenging the award or execution of this Agreement or seeking to restrain or enjoin its performance.

5.02 Furnishing of Insurance. FRANCHISEE has furnished evidence of the Insurance required by Article 20 of this Agreement.

5.03 Furnishing of Sample Service Agreement . FRANCHISEE has provided CITY with the Service Agreement template for use with Customers located within Rancho Cordova. Service Agreement must be consistent with Sections 16.01 and 16.02 of this Agreement.

5.04 If FRANCHISEE has facility(ies) within the CITY, FRANCHISEE shall obtain, provide, and maintain a City of Rancho Cordova business license throughout the term of the Agreement. .

Article 6. Limitations on Scope of Franchise.

6.01 Under the terms of this Franchise, FRANCHISEE has the authority to Collect only Commercial Solid Waste from Businesses and Multi-Family Residential Properties ,provide Temporary Cart and Bin Service to only Businesses and Multi-Family Residential Properties, and provide Temporary Roll- Off Collection Service to all generators.

6.02 FRANCHISEE may not engage in Collection of materials covered under the residential Collection Service and Street Sweeping Service Contract between the City of Rancho Cordova and Atlas Disposal, or any successor contract entered into by the CITY for such service.

6.03 FRANCHISEE may not collect Hazardous Waste, regardless of its source.

Article 7. Franchise Fees.

7.01 During the term of the Franchise, FRANCHISEE shall pay to CITY franchise fees for the privilege of using CITY streets and public rights-of-way to engage in the business of providing Commercial Collection Services and Temporary Services in CITY.

7.02 Franchise fees shall be a percentage of all Gross Revenues, less franchise fees received from Customers, including those Customers that are state or federal agencies or entities located within CITY, for the provision Commercial Collection Services and Temporary Services. The franchise fee shall be calculated based on Gross Revenues prior to FRANCHISEE imposing the franchise fee on its Customers.

7.03 The franchise fee percentage shall be eight percent (8%) or such other amount applicable to Commercial Franchises that may be adopted at any time during the term of this Agreement by a resolution of the City Council, or by the City Manager if the City Council has delegated such authority to the City Manager by resolution.

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7.04 In the event the franchise fee or any other CITY fee is determined by a court to be excessive, invalid or unenforceable, then: (i) FRANCHISEE shall not be obligated to remit the future portion of the franchise fee or CITY fee deemed excessive, invalid, or unenforceable to the CITY; (ii) to the extent the Customers are entitled to a reimbursement of any excessive, invalid or unenforceable franchise fee or CITY fees, and CITY is required to reimburse FRANCHISEE in the amount of the franchise fee or CITY fees previously remitted to CITY that have been deemed excessive, invalid or unenforceable, thereafter, FRANCHISEE shall directly reimburse all Customers entitled to reimbursement in the amount attributable to each Customer account. In no event shall FRANCHISEE retain any portion of the fees reimbursed by CITY; (iii) to the extent the Customers are entitled to a reimbursement of any excessive, invalid or unenforceable franchise fee or CITY fees, and CITY is required by a court to directly reimburse Customers, FRANCHISEE shall assist CITY in identifying all Customers entitled to a reimbursement, quantifying the reimbursement amount attributable to each Customer account, and obtaining and providing to CITY any other information needed to satisfy the obligations imposed by a court; and (iv) CITY and FRANCHISEE will, within thirty (30) days following such court decision meet and confer to negotiate in good faith and using reasonable efforts to attempt to agree on modifications to the Agreement.

Article 8. Franchise Fee Payment.

8.01 Franchise fees shall be payable on a monthly basis. Payment to the CITY shall be due on the twentieth (20th) day of the month following the month the Gross Revenues are collected ( e.g., due February 20 for the month of January). Each payment shall be calculated in accordance with the provisions of this Agreement and the Rancho Cordova Municipal Code.

8.02 The franchise fee shall be paid to the Contract Administrator at the address set forth in Section 8.04 of this Agreement.

8.03 No statement filed under this Section shall be conclusive as to the matters set forth in such statement, nor shall the filing of such statement preclude CITY from collecting by appropriate action the sum that is actually due and payable.

8.04 FRANCHISEE shall pay all required franchise fees to:

City of Rancho Cordova
Attn: Solid Waste Franchise Contract Administrator
3303 Luyung Dr.

Rancho Cordova, CA 95742
Franchisee shall remit a copy of the gross revenue form to the Contract Administrator by email at [email protected] or in an alternative digital manner, as may so be instructed by the Contract Administrator in writing during the term of the Agreement.

8.05 If FRANCHISEE remits franchise fees by personal delivery to CITY, such franchise fees shall be deemed timely paid only if delivered on or before 5:00 p.m. on the due date. If FRANCHISEE ITEM 9.2.

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remits franchise fees by mail or other delivery service, such franchise fees shall be deemed timely only if:
(1) the envelope containing the franchise fee payment bears a postmark or receipt showing that the payment was mailed or sent on or before the due date; or (2) FRANCHISEE submits proof satisfactory to CITY’S Contract Administrator that the franchise fee payment was in fact deposited in the mail or sent on or before said due date. An electronic remittance of the gross revenue form shall be delivered by email on or before 5:00 p.m. on the due date.

8.06 In the event FRANCHISEE believes that it has paid franchise fees in excess of the fees due to CITY, FRANCHISEE may submit a request for refund to the Contract Administrator on a form provided by the Contract Administrator. If proof of overpayment is satisfactory to the Contract Administrator, the Contract Administrator shall refund to FRANCHISEE any overpayment. FRANCHISEE shall not apply any overpayment as a credit against any franchise fees or other amounts payable to CITY unless specifically authorized by the Contract Administrator in writing.

Article 9. Approval of Facilities

9.01 All facilities are approved through the Agreement application and associated Agreement approval, as well as subsequent application updates provided during the Agreement renewal process.

9.01.1 City-Approved C&D Sorting Facilities are a discrete list of facilities certified by the County of Sacramento that have been deemed to achieve sufficient diversion to meet the requirements for Covered Projects.

9.01.2 City-Approved Material Processing Facilities are a list of facilities pre- approved by the CITY prior to delivery of materials to the facility. The CITY requires that all facilities utilized by FRANCHISEE hold active permits and licenses for the designated processing and disposal activity.

9.01.3 City-Approved Disposal Facilities are a list of facilities pre -approved by the CITY prior to delivery of materials to the facility. The CITY requires that all facilities utilized by FRANCHISEE hold active permits and licenses for the designated disposal activity.

9.02 In the event FRANCHISEE desires to utilize a facility that is not listed in Exhibit 1, the following process shall be employed

9.02.1 Except as outlined in Section 9.02.4 below, provide written notice to the Contract Administrator requesting to add a facility.

9.02.2 Written notice shall include the facility name, address, material(s) accepted, SWIS number and the reason why the facility is being requested. Facilities must hold appropriate permits to process/dispose of the materials.

ITEM 9.2.

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9.02.3 Contract Administrator will respond within five (5) business days of receipt of the request with a confirmation of the facility’s acceptability or disqualification if the facilities do not hold the proper permits. Facilities holding all applicable permits and meeting regulations will not unreasonably be withheld for approval by the CITY.

9.02.4 In case of emergency, where advance notice requesting to add a facility is impractical, FRANCHISEE must provide notice to Contract Administrator as soon as possible. An emergency is defined as circumstances that preclude an approved facility from accepting mater ials from FRANCHISEE; unfavorable terms or pricing are not applicable. Emergency facility use is by definition temporary in nature. Continued use of an emergency facility shall follow the process outlined in 9.02 within five (5) business days.

Article 10. Transportation, Processing, Diversion: Temporary Service.

10.01 FRANCHISE shall obtain a Service Acknowledgement from all Temporary Service Customers so that all parties are aware of required material processing and diversion based on the specific project, as well as all paperwork and supporting documentation that may be required of the material generated by the project.

10.02 FRANCHISEE shall deliver all Construction and Demolition Debris loads that are considered a Covered Project to a City -Approved C&D Sorting Facility where the material shall be processed for maximum recovery, with a minimum diversion rate of 65% based on the facility's diversion rate. All weight tickets issued by City Approved C&D Sorting Facility(ies) for mixed Construction and Demolition Debris loads shall be stamped "Sacramento County Certified C&D Sorting Facility" to indicate that the materials were sorted in a manner to achieve maximum recovery of Recyclable Materials , with a minimum diversion rate of 65%. FRANCHISEE must receive written approval from CITY prior to delivering Construction and Demolition Debris from Covered projects to a facility other than t hose listed as a City - Approved C&D Facility in Exhibit 1.

10.03 FRANCHISEE shall deliver all Construction and Demolition Debris loads that are not considered a Covered Project to a City -Approved C&D Sorting Facility where the material shall be processed for maximum recovery. A "Sacramento County Certified C&D Sorting Facility" stamp is not required for non- Covered projects , but the FRANCHISEE must travel over the scale(s) and follow the appropriate delivery procedures per the facility to ensure that the material is processed for maximum recovery.

10.04 FRANCHISEE shall Collect, transport, and deliver all Source-Separated Construction and Demolition Debris, such as clean metal or wood, to an appropriate City-Approved C&D Sorting Facility , City-Approved Processing Facility or permitted end-user recycler of Source-Separated material.

10.05 FRANCHISEE shall Collect, transport, and deliver all Organic Recyclable Materials and Recyclable Materials set out for Collection in Containers identified as containing, respectively, Organic ITEM 9.2.

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Recyclable Materials or Recyclable Materials to a City -Approved Processing Facility listed in Exhibit 1 for its respective recycling stream.

10.06 For any Temporary Debris loads FRANCHISEE Collects, transports, and delivers directly to a City -Approved Disposal or Transfer Facility for disposal to Landfill FRANCHISEE document with supporting evidence deemed appropriate by FRANCHISEE that less than 30% of the load is deemed recoverable via a visual assessment.

10.06.1 FRANCHISEE shall submit copies of documentation as set forth in Section 18.03.4.

10.06.2 Should FRANCHISEE deliver loads to a disposal facility that are determined to have met or exceeded the 30% recovery threshold by CITY, FRANCHISEE may be subject to Administrative Charges as defined in Exhibit 2.

10.07 FRANCHISEE shall be required to divert from disposal a minimum of sixty -five percent (65%) of all Temporary Debris Collected by FRANCHISEE per quarter in aggregate, as reported in three (3) consecutive monthly reports.

10.07.1 Should FRANCHISEE fail to achieve 65% diversion in aggregate during three-month reporting period, CITY will revoke applicability of Section 10.06 and FRANCHISEE will be required to transport all Collected Temporary Debris to a City -Approved C&D Facility for the subsequent 3-month reporting period. Additionally, Administrative Charges per Exhibit 2 would apply.

10.08 Diversion Requirements Calculation. For purposes of determining if FRANCHISEE achieves FRANCHISEE’S diversion requirements for Temporary Debris, the Parties agree the diversion rate will be calculated using the following formula: “the tons of Temporary Debris Collected by FRANCHISEE from the provision of Temporary Roll-Off Services, multiplied by the reported recovery rate of the City-Approved Processing Facilit(ies) utilized by the FRANCHISEE for each individual load delivered to the City-Approved Processing Facilit(ies).” Diversion rate shall be calculated in aggregate over the course of the quarter , per following example table below. Failure to achieve diversion may result in an Administrative Charge as defined in Exhibit 2.

Date Monthly
Report Weight Ticket Weight (tons) Facility Diversion
Rate
Diverted
Tonnage
1/3/2026 January 123 6.8 Florin Perkins 72.68% 4.942
2/14/2026 February 124 8.5 L&D 80.23% 6.820
2/21/2026 February 125 7.8 Sierra 83.12% 6.483
3/3/2026 March 126 4.8 Kiefer 0.00% 0.000
Q1 Aggregate 27.9 65.39% 18.245
4/13/2026 April 127 11.1 Florin Perkins 72.68% 8.067
4/14/2026 April 128 9.8 Florin Perkins 72.68% 7.123
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5/13/2026 May 129 8.7 L&D 80.23% 6.980
6/3/2026 June 130 7.6 Sierra 83.12% 6.317
6/20/2026 June 131 6.5 Florin Perkins 72.68% 4.724
Q2 Aggregate 43.7 76.00% 33.211
7/5/2026 July 132 8.9 L&D 80.23% 7.140
9/4/2026 September 133 9.8 Sierra 83.12% 8.146
9/5/2026 September 134 9.8 Sierra 83.12% 8.146
Q3 Aggregate 28.5 82.22% 23.432
10/5/2026 October 135 7.1 Kiefer 0.00% 0.000
10/31/2026 October 136 7.6 Florin Perkins 72.68% 5.524
11/4/2026 November 137 8.5 L&D 80.23% 6.820
Q4 Aggregate 23.2 53.20% 12.343
* In the above example, FRANCHISEE fails to achieve required diversion in the Q4 aggregate reporting, and would be required to process all Temporary Debris in a City-Approved C&D Facility for the subsequent 3 months (Q1 of following calendar year).

10.09 FRANCHISEE shall make a good faith effort to obtain and subsequently report on the diversion rate as communicated to FRANCHISEE by City-Approved Processing Facilit(ies) for every facility used during each reporting month. Diversion for Source Separate materials will be assumed to be one hundred percent (100%).

10.10 FRANCHISEE shall not receive diversion credit for Designated Organic Recyclable Materials that are delivered to a City-Approved Processing Facility or other facility for disposal if that facility uses such material for alternative daily cover and, as of that date, FRANCHISEE shall not report Designated Organic Recyclable Materials as diversion on its quarterly reports if such material is delivered to a City - Approved Processing Facility or other facility for disposal if that facility uses such material for a lternative daily cover.

Article 11. Transportation, Processing, Diversion: Commercial Collection Service.

11.01 Secure Processing and Disposal Capacity . FRANCHISEE shall secure processing facility(ies) and disposal facility(ies) approved by CITY and provide Collection, processing, and disposal capacity to accommodate the quantity and type of Commercial Collection Service provided to all of its Customers. Approved facilities are listed in Exhibit 1. Facilities not identified in Exhibit 1 shall be requested for inclusion per Section 9.02.

11.02 Transportation of Recyclable and Organic Recyclable Material.

11.02.1 FRANCHISEE shall Collect, transport, and deliver all Organic Recyclable Materials set out for Collection in Containers identified as containing Organic Recyclable Materials to a City-Approved Organics Processing Facility listed in Exhibit 1 for Organics Recycling.

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11.02.2 FRANCHISEE shall Collect, transport, and deliver all Recyclable Materials set out for Collection in Containers identified as containing Recyclable Materials to a City -Approved Materials Recovery Facility listed in Exhibit 1 for processing and Recycling.

11.03 Transportation of Garbage. FRANCHISEE shall dispose of or process Commercial Garbage by taking such Commercial Garbage to a City-Approved Disposal or Transfer Facility, or a City Approved Processing Facility which is lawfully authorized to accept such Commercial Garbage.

FRANCHISEE shall not dispose of such Commercial Garbage by depositing it on any land, whether public or private. FRANCHISEE shall not dispose of such Commercial Garbage in any river, stream or other waterway, or in any sanitary sewer or storm drainage system.

Article 12. Ownership of Commercial and Temporary Solid Waste.

CITY does not gain any ownership or right to possess Solid Waste Collected by FRANCHISEE pursuant to this Agreement. Subject to the provisions of this Agreement, FRANCHISEE shall have the right to retain any benefit resulting from its right to retain, recycle, process, dispose of, or use the Solid Waste that it Collects pursuant to the terms of this Agreement.

Article 13. Container Placement.

13.01 FRANCHISEE shall plan as a matter of standard operating procedures to place Containers on the Customer’s private property for all Commercial Collection Service and Temporary Service. Care should be taken to prevent damage to property, including flowers, shrubs, and other plantings. Any damage caused by Contractor to Customer property shall be repaired or replaced promptly.

13.02 In rare cases, FRANCHISEE may need to place Containers in the CITY ’s right-of-way, in which case FRANCHISEE must place Containers in strict adherence with CITY’s right-of-way requirements, including obtaining an encroachment permit for any Temporary Service in which a C ontainer is placed in the CITY’s right -of-way. FRANCHISEE will exercise reasonable care in inspecting for and immediately repairing and making good any damage to any portion of the right -of-way which occurs as a result of the maintenance of the encroachment, including any and all damage to the roadway which would not have occurred had Container placement not caused such encroachment.

Article 14. Commercial Collection Service
FRANCHISEE must perform all Commercial Collection Services, including On- Call Service, under this Agreement in a thorough and professional manner, including:

14.01 Commercial Recycling and Commercial Organics Recycling Collection Services.

FRANCHISEE must provide each service location Commercial Recycling and Commercial Organics Recycling Collection Services to its Customers, unless the Customer has an active W aiver or Alternative Compliance approved by the CITY , as described in the Rancho Cordova Municipal Code. Covered Generators are required to obtain the following thresholds of service:

ITEM 9.2.

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14.01.1 Recycling Requirements. All Customers, regardless of the volume of Solid Waste generated, are required to arrange for Commercial Recycling Collection Services unless operating under a CITY approved Waiver or Alternative Compliance; and

14.01.2 Organics Recycling Requirements. All Customers, regardless of the volume of Solid Waste generated, are required to arrange for Commercial Organic Recycling Services unless operating under a CITY approved Waiver or Alternative Compliance.

14.02 Should FRANCHISEE fail to provide comprehensive service in the form of Garbage, Recycling and Organics, Administrative Charges would apply per Exhibit 2.

14.03 On-Call Service. All Customers receiving On- Call Service must subscribe to Commercial Recycling and Commercial Organics Collection Services unless the Customer has an active Waiver or Alternative Compliance approved by the CITY, as described in the Rancho Cordova Municipal Code. In addition, FRANCHISEE must familiarize itself with the materials generated and disposed of by the On-Call Customer, especially in cases where open- top Roll -Off Containers are employed. Where appropriate, FRANCHISEE may document that less than 30% of the ongoing On-Call Service utilizing an open-top Roll- Off container is recoverable for the On- Call Customer, in which case associated Administrative Charges would not apply. If FRANCHISEE intends to deliver directly to a City-Approved Disposal or Transfer Facility for disposal to Landfill, FRANCHISEE must evaluate any open-top Roll-Off Containers employed as part of On-Call Service as specified in Section 10.06.

14.04 In the event that the FRANCHISEE must stop providing Commercial Garbage Collection Service to a Customer due to non-compliance with the CITY’s municipal code, FRANCHISEE shall discuss the proper code enforcement process. As part of the process , the FRANCHISEE may be required to take the following steps, as described in the Rancho Cordova Municipal Code 6.21.100:

14.04.1 Issue a written “Service Termination Notice” to the noncompliant Customer that the FRANCHISEE shall terminate Commercial Garbage Collection Services within 14 days of providing that Service Termination Notice to the Service Unit. That “Service Termination Notice” shall clearly state that it is mandatory for the Customer to subscribe to Commercial Garbage Collection Service, Commercial Recycling Collection Service, and Commercial Organic Recycling Collection Service as required by the Rancho Cordova Municipal Code;

14.04.2 Notify the CITY by email no more than fourteen (14) days and no less than seven (7) days before it intends to suspend service for all Commercial Garbage Collection Service Containers from the Service Unit;

14.04.3 Lock or remove all Containers from the Service Unit; and ITEM 9.2.

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14.04.4 Notify the Contract Administrator or his or her designee in person or by telephone or email within two (2) Business Days after locking or removing all Containers from the Service Unit.

14.05 FRANCHISEE, upon request, shall provide the Contract Administrator with a copy of a Service Agreement, or other document (e.g., receipt from a recycling or composting facility) demonstrating that the Customer’s Recyclable Materials and Organic Recyclable Materials are being taken to a City - Approved Processing Facility. The Service Agreement, or other documents shall be available for inspection by the Contract Administrator at FRANCHISEE’S place of business during normal business hours within 5 business days of request.

14.06 Route Reviews. FRANCHISEE shall conduct a Route Review for Prohibited Container Contaminants in Containers in a manner that results in twenty percent (20%) of each Hauler Route being reviewed annually in order to support the CITY in assessing overall compliance with SB 1383, including minimization of Prohibited Container Contaminants across Garbage, Recycling and Organics Containers .

14.06.1 Each inspection shall involve lifting the Container lid and observing the contents, but shall not require FRANCHISEE to disturb the contents or open any bags. Route Reviews may be performed using camera technology during the collection process, in lieu of manually viewing contents by a person. FRANCHISEE may select the Containers to be inspected at random, or (if mutually agreed with CITY ) by any other method not prohibited under the SB 1383 Regulations (Section 18984.5(b)). Route Review s should indiscrimin ately assess Containers along the Hauler Route and should not be reflective of only operational -related contamination issues (e.g., only identifying plastic bag contamination in the Recycling Containers). For each Route Review of a Customer along a Hauler Route, FRANCHISEE shall inspect all Containers placed for Collection by an individual Customer (including Recyclable Materials Containers, Organic Waste Containers, and Garbage Containers). Those Customers receiving On-Call Service for one or more materials must also be included in any Route Review s. For the avoidance of doubt, FRANCHISEE shall not be required to inspect every Container on a Hauler Route annually. FRANCHISEE shall include the results of each Route Review in its next regularly scheduled report to CITY, as required by Article 18.

14.06.2 Notice of Contamination. Upon finding Prohibited Container Contaminants in a Container during a Route Review, FRANCHISEE shall notify the Customer of the violation in writing. The written notice shall include information regarding the Customer’s requirement to properly separate materials into the appropriate Containers. The notice may be left on the Customer’s Container, gate, or door at the time the violation is discovered, and/or be mailed, e- mailed, electronically messaged or delivered personally to the Customer. FRANCHISEE may dispose of the contents of any Container found to contain Prohibited Container Contaminants. The notice shall be provided in English and Spanish.

ITEM 9.2.

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Article 15. Multi-Family Residential Property Bulky Waste Collection Service.

15.01 FRANCHISEE shall offer Multi-Family Residential Property Bulky Waste Collection Service to Multi-Family Residential Property Customers that have a Service Agreement with FRANCHISEE, and whose Large Items have been placed within five (5) feet of the curb, swale, paved surface of the public or private roadway, closest accessible roadway, or other such location agreed to by FRANCHISEE and the Customer. The agreed upon location for placing Large Items must provide safe and efficient accessibility to FRANCHISEE’s collection crew and vehicle.

15.02 Multi-Family Residential Property management must call in advance to schedule Multi- Family Residential Property Bulky Waste Collection Service. Collection will occur on the day agreed to between the Multi -Family Residential Property management and FRANCHISEE and/or within five (5) business days of request of service from Multi Family Residential Property management. The cost for receiving this service shall be negotiated between the FRANCHISEE and Multi-Family Residential Property Customer.

15.03 Maximum Reuse and Recycling. Contractor must Dispose of Bulky Waste Collected from Service Units pursuant to this Agreement in accordance with the following hierarchy:

15.03.1 Reuse as is (where energy efficiency is not compromised).

15.03.2 Recycle.

15.03.3 Disposal.

15.04 Disposal of Bulky Waste.

15.04.1 FRANCHISEE may not landfill such Large Items unless the Large Items cannot be reused or recycled.

15.04.2 Should FRANCHISEE deliver loads to a disposal facility that are determined to have met or exceeded the 30% recovery threshold by CITY, FRANCHISEE may be subject to Administrative Charges as defined in Article 24 and Exhibit 2.

15.04.3 FRANCHISEE shall ensure all Brown Goods and White Goods are handled properly and in conformance with Applicable Law.

Article 16. Service Agreements

16.01 FRANCHISEE shall execute a written Service Agreement with all Customers receiving Commercial Collection Services and/or On-Call Service. Service Agreements shall incorporate, but are not limited to, the following terms and conditions:

16.01.1 Be clearly labeled as a Service Agreement;
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16.01.2 Describe the Commercial Collection Services to be provided by FRANCHISEE, the frequency of such services and the cost for providing such services to the Customer;

16.01.3 Clearly state the initial term and renewal terms;

16.01.4 Clearly state any term that is mutually agreed to by the Customer and FRANCHISEE, but recognizing that this Franchise Agreement must remain in full force and effect throughout the term of the Service Agreement;

16.01.5 May contain a provision for automatic renewal for successive periods of no longer than one (1) year, unless either party gives written notice of termination by certified or registered mail or by email at least sixty (60) days prior to the termination date of the current Service Agreement;

16.01.6 A term allowing for amendments, defined as changes in the type, size, amount, service frequency or other service changes, changes in service location, or other modifications to service terms, as mutually agreed upon by the Customer and FRANCHISEE and as documented via a written and transmitted amendment to original Service Agreement.;

16.01.6.1 If the amendment to the Service Agreement alters the time frame and or term associated with the original Service Agreement, then such amendment shall clearly state updated time frame and status relative to initial term and/or renewal term (i.e., date the change takes place, and time remaining in current term. Alternatively, FRANCHISEE and Customer may mutually agree to terminate the current Service Agreement and enter into a new Service Agreement reflecting the updated timeframe and/or term);

16.01.6.2 Upon next invoice to Customer, immediate reflect updated rates and/or pricing (prorated, as appropriate) resulting from change in service, including but not limited to removal of service as a result of an approved Waiver or Alternative Compliance.

16.01.7 Require FRANCHISEE to provide written notice to Customers of price increases not less than thirty (30) days prior to the effective date of such price increase;

16.01.8 FRANCHISEE shall respond to Customer inquiries regarding the Service Agreement within seven (7) days, including a request by the Customer for a copy of the current franchise agreement;

16.01.9 Include language stating that Collection Containers will be removed from the property of a Customer by FRANCHISEE within thirty (30) days of final termination of services to the Customer;
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16.01.10 Include language stating that Customers will be notified in writing within thirty (30) days of termination of this Franchise Agreement;

16.01.11 Include language specifying scope of potential liquidated damages, which shall be limited to not requiring Customers to pay over three (3) months liquidated damages during the renewal term and over six (6) months liquidated damages during the initial term of the Service Agreement;

16.01.12 Not require Customers to give notice of any offer by a competitor or require Customers to give FRANCHISEE the right to respond to such offer; and

16.01.13 Include language stating that the Service Agreement shall automatically terminate at such time as CITY terminates FRANCHISEE’s Franchise Agreement unless CITY concurrently provides FRANCHISEE with a new or amended franchise agreement.

16.01.14 Include language specifying that FRANCHISEE shall not provide Commercial Garbage Collection Services to a Customer unless:

16.01.14.1 The Customer is also receiving both Commercial Recycling Collection and Commercial Organics Recycling Collection Service from the FRANCHISEE; or

16.01.14.2 The Customer has an approved Waiver or Alternative Compliance for the property served by the Service Agreement.

16.02 The requirements for Service Agreements contained in this Article shall be incorporated into all new Service Agreements executed on or after the execution of this Franchise Agreement. Existing Service Agreements between FRANCHISEE and a Customer executed before the execution of this Franchise Agreement shall remain in force for the remainder of the existing contract and shall be governed by the terms and conditions specified in the existing Service Agreement, provided that such existing Service Agreements shall comply, to the extent allowable by law, with the Recycling and Organic Recycling programs established by this Franchise Agreement, Rancho Cordova Municipal Code, and California Law.

16.03 National contracts or agreements are exempt from the requirements of contract length and renewal terms.

Article 17. Outreach and Education

17.01 Outreach Education Materials. FRANCHISEE must implement public education and outreach in conformance with Applicable Law and in coordination with CITY. FRANCHSEE shall develop signage, stickers, “how- to” guides, and other educational materials and resources to support waste diversion by the Customer. FRANCHISEE shall provide the following to all its Customers under the Agreement annually.

ITEM 9.2.

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17.01.1 Information on the Customer’s requirements to properly separate materials in appropriate Containers.

17.01.2 Information on methods for: the prevention of Organic Materials generation, Recycling Organic Materials on-site, sending Organic Materials to community Composting, and any other local requirements regarding Organic Materials.

17.01.3 Information regarding the methane reduction benefits of reducing the landfill Disposal of Organic Materials, and the methods of Organic Materials recovery contemplated by the Agreement.

17.01.4 Information regarding how to recover Organic Materials.

17.01.5 Information related to the public health and safety and environmental impacts associated with the landfill Disposal of Organic Materials.

17.01.6 The above information will be provided, at a minimum, through print and/or electronic media, and may also be provided through workshops, meetings, and/or on- site visits.

17.02 Technical Assistance. FRANCHISEE shall provide comprehensive technical assistance to MFD and Commercial Customers with the primary purpose of helping Customers increase Recyclable Materials and Organic Waste Collection services and reducing Garbage Collection service. CITY may, at its discretion, direct FRANCHISEE to provide Technical Assistance to specific Customers or to Customers with a particular type of service issue. The technical assistance services shall conform with the following performance expectations per year:

Task Minimum Number of actions taken
Site Visits 80
Comprehensive Waste Analysis 8

17.02.1 Site Visits. Site visits shall include on- site assessments of the MFD and Commercial Premises to improve Recyclable Materials and Organic Waste Collection program participation and provide recommendations to Customers on how to improve overall resource efficiency. During the site visits, FRANCHISEE will be required to provide and/or restock posters, stickers, “how to” guides, personal Recyclable Materials baskets/bags for MFD tenants, and any other appropriate materials, and to provide new signage for the R ecyclable Materials and Organic Waste Containers if necessary.

17.02.1.1 At least fifty percent (50%) of the eighty (80) annual Site Visits shall be prompted by Customers with contamination identified in the Quarterly Route Reviews .

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17.02.1.2 Thorough contact information and summary of scope of visit shall be recorded and provided to CITY as noted in Section 18.05.2.

17.02.2 Comprehensive Waste Analysis. Based on the FRANCHISEE’s Generator Report, FRANCHISEE shall identify eight (8) Customers that generate over 20 cubic yards of Garbage weekly to provide in-depth support and guidance, as follows:

17.02.2.1 Visual Waste Audit: FRANCHISEE will perform a visual review of all Containers at service location and identify approximate contamination of each waste stream.

17.02.2.2 Service Level Recommendations: Based on the Visual Waste Audit, FRANCHISEE will suggest alternative service levels that would increase diversion and help reduce contamination.

17.02.2.3 Implementation: FRANCHISEE will work with on- site staff to support access to internal sorting containers, affix signage to internal and external containers, educate employees, tenants, residents and/or janitorial staff, and make additional suggestions for the ongoing improvement of waste sorting. This work shall be performed over a series of site visits and other touch points with the Customer.

17.02.2.4 Memo Report: FRANCHISEE will develop a simple memo report identifying starting service levels, interventions and education implemented, and service level at the end of the technical assistance. Report will also note any significant successes or challenges encountered during the term of the technical assistance. Report will be provided to the Customer as well as the CITY, as noted in Section 18.05.3.

17.03 News Media Requests . FRANCHISEE will notify the Contract Administrator by email or phone of all requests for news media interviews related to the services covered under this Agreement within one (1) Workday of Contractor’s receipt of the request.

17.04 Acceptable Materials Labeling. FRANCHISEE must affix to each Recyclable Materials and Organic Waste Collection Container a sticker that is compliant with SB 1383 labeling requirements and approved by the CITY. Each sticker shall clearly list Acceptable materials to be placed in the corresponding Container.

Article 18. Reporting Requirements.

18.01 Franchise Fee Reports . Franchise Fee Reports shall be filed monthly with the Contract Administrator. Each payment shall be accompanied by documentation verified by the person making the payment, or a duly authorized representative of that person, showing the calculation of the franchise fee payable in such detail and disposition as the Contract Administrator may require and such other information as the Contract Administrator may require to determine the amount due.

ITEM 9.2.

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18.01.1 If no revenue subject to the franchise fee is collected during a given month, an acknowledgment in a format approved by the Contract Administrator must be submitted.

18.02 Generator Report. A report that lists Service Units serviced with Commercial Collection Services and the number of containers, container sizes, and frequency of Collection for Garbage, Recyclable Materials, and Organic Recyclable Materials for each Commercial and MFD Service Unit. This report is to be submitted by FRANCHISEE in the event FRANCHISEE provides Commercial Collection Service to at least one (1) Service Unit. The report shall be in such form and detail as required by the Contract Administrator. The report shall set forth the following information for each Customer:

18.02.1 Business Name

18.02.2 Type of Customer (Business or Multi-Family Residential Property)

18.02.3 Billing Contact, address, and phone number;

18.02.4 Service Contact, address, and phone number;

18.02.5 Container size and Collection frequency of:

18.02.5.1 Garbage Service;

18.02.5.2 Recycling Materials Collection Service;

18.02.5.3 Organics Recycling Collection Service;

18.02.5.4 Waiver / Alternative Compliance applicability

18.02.6 A list of Customers that have been issued a Service Termination Notice during the preceding reporting period.

18.03 Tonnage and Diversion Report. A report that contains the quantities of Garbage, Recyclable Materials, Organic Recyclable Materials, and Construction and Demolition Material Collected, transported, processed, diverted, and/or disposed from Commercial Collection and Temporary Services.

Such report shall be in such form and detail as required by the Contract Administrator. Specifically, the report shall contain, but not be limited to, the following information:

18.03.1 Garbage, Recyclable Materials , Organic Recyclable Materials , and Construction and Demolition tonnage Collected and removed, during the previous reporting period, within the CITY by FRANCHISEE;

18.03.2 T he City-approved facilities as noted in Article 9 and Exhibit 1 where such Garbage, Recyclable Materials , Organic Recyclable Materials and Construction and Demolition materials were delivered for each load of material delivered to said facilities; and ITEM 9.2.

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18.03.3 FRANCHISEE shall make a good faith effort to obtain and report the diversion rate achieved by each of the facilities identified in Section 18.03.2. In circumstances where FRANCHISEE is unable to obtain a diversion rate for a facility, that information will be noted on the report. FRANCHISEE may utilize quarterly diversion rates from a facility.

18.03.4 Acknowledgement and Statement of Disposal Report. A report that lists the following forms received during the reporting period per Temporary Service Customer:

18.03.4.1 Covered Project Service Acknowledgement s. A listing of all Customers who notated on their Acknowledgement form that the material is coming from a Covered Project.

18.03.4.2 Statement of Disposal . A listing of all open -top Roll -Off Customers and associated tonnage for whom the material was assessed as less than 30% divertible and therefore documented a statement of disposal, including any supporting evidence deemed appropriate by FRANCHISEE. In accordance with Section 14.03, ongoing documentation is not required for On- Call Service with blanket confirmation of suitability for disposal. Documentation shall be retained for a minimum of six (6) months and made available upon request by the Contract Administrator.

18.04 Route Review Report . All reports to be submitted in a form and format approved by the Contract Administrator, including electronic data submission. Report of Route Reviews completed during the month (if applicable) including:

18.04.1 Narrative describing Route Review process, including process for determining the level of Container contamination;

18.04.2 The date the review was conducted;

18.04.3 The name and title of each person conducting the review;

18.04.4 A list of the account names and addresses covered by the review;

18.04.5 A description of each Hauler Route reviewed, including FRANCHISEE’s route number and a description of the Hauler

18.04.6 Route area;

18.04.7 The results of such review (i.e. the addresses where any Prohibited Container Contaminants were found), and any photographs taken; and

18.04.8 Copies of any educational materials issued pursuant to such reviews.

ITEM 9.2.

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18.04.9 Instances where Containers were disposed of as Garbage due to observation of Prohibited Container Contaminants.

18.05 Outreach and Technical Assistance Report . The following reports shall be submitted for any of the related tasks performed that month. If no related technical assistance was provided in a given month, the absence of technical assistance must be reported. Each report should tally the total efforts made toward the annual requirement. All reports to be submitted in a form and format approved by the Contract Administrator, including electronic data submission.

18.05.1 Public outreach and education activities undertaken during the previous month including, copies of all such information (flyers, brochures, newsletters, invoice messaging, website and social media posts, emails, and other electronic messages); the date the information was disseminated or the direct contact made; to whom the information was disseminated or the direct contact made (for mass distributions such as mailings or bill inserts, FRANCHISEE may provide the type and number of accounts receiving the information, rather than listing each recipient individually;

18.05.2 Site Visit Report:

18.05.2.1 List of Customers visited, including address, contact name and contact information

18.05.2.2 Reasoning for site visit (Route Review contamination, Customer request, operational need, etc.)

18.05.2.3 Services offered at site visit

18.05.3 Comprehensive Waste Analysis Report : Memo report per Section

17.02.2.4 identifying:

18.05.3.1 Account and contact information

18.05.3.2 Initial service levels at beginning of engagement

18.05.3.3 I nterventions and education implemented

18.05.3.4 S ervice level at the end of the technical assistance

18.05.3.5 S ignificant successes or challenges encountered

18.06 Vehicle Weight Reporting. The report must be an export of all scale tickets for all vehicles operating in the CIY. The report shall include the gross weights of all vehicles recorded by the scales at the facilities where FRANCHISEE delivered Collected Solid Waste. Tare weights and GVWR for all vehicles ITEM 9.2.

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must also be included in this report. Report to be submitted in a form and format approved by the Contract Administrator, including electronic data submission.

18.07 The first monthly reports shall be due no later than 5:00 p.m. on February 20, 2026, and shall cover the period of January 1, 2026 to January 31, 2026. Thereafter, monthly reports shall be due no later than 5:00 p.m. on each subsequent 20th of the month the term of this Agreement. Each report shall cover the immediately preceding month.

18.08 Monthly reports shall be filed with the Contract Administrator in the manner and form approved by CITY. FRANCHISEE shall maintain records, on forms approved by the Contract Administrator, containing such information as may be required by the Contract Administrator pertaining to the number and types of accounts served by FRANCHISEE under the terms of this Agreement. This information shall be provided to Contract Administrator upon request.

18.09 Delinquent Reports. Failure to submit Reports by the due date may result in assessment of Administrative Charges as specified in Exhibit 2.

18.10 Confidential or Proprietary Information. To the extent permitted by applicable law, including the California Public Records Act, any reports, plans, and information required by this Agreement stamped confidential or proprietary, shall be deemed confidential and shall not be subject to public disclosure. In the event that CITY becomes legally compelled by deposition, interrogatory, request for documents, subpoena, civil investigative demand, California Public Records Act request, or U.S. Patriot Act or simi lar act or process to disclose any Confidential Information, to the extent allowed by law, the CITY shall give FRANCHISEE prompt prior written notice of such requirements so that FRANCHISEE may seek a protective order or other appropriate remedy at FRANCHISEE’S sole risk and expense.

18.11 California Public Records Act. The parties understand that the CITY is a public entity that must comply with the California Public Records Act.

18.12 Response Times for City Requests. Upon receiving a data request or information request from CITY that is not covered by other timeline requirements articulated in this document, and provided that the request from CITY shall not take more than eight (8) hours of FRANCHISEE staff time to complete, FRANCHISEE shall compile the requested information and send back a complete response within five (5) Business Days of receipt of the request.

Article 19. Inspection Authority.

19.01 FRANCHISEE shall at all times maintain accurate and complete accounts of all revenues and income arising out of its operations under this Franchise Agreement and the information needed to complete the forms and reports required by Article 18 of this Agreement. FRANCHISEE’S books, accounts and records reasonably necessary for the enforcement of this Franchise Agreement shall be made available for inspection, examination and audit during normal business hours by authorized officers, employees and ITEM 9.2.

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agents of CITY. CITY shall give FRANCHISEE written notice at least three (3) business days prior to any inspection, audit or examination of these records.

19.02 Where the Contract Administrator determines that an audit is necessary to verify the accuracy, or completeness of reported franchise fees, tonnages or diversion data, FRANCHISEE shall be responsible for reimbursing CITY the costs of performing such audit costs, including any CITY staff t ime, consultant services, and City Attorney services, to perform such audit.

19.03 FRANCHISEE shall be responsible for reimbursing CITY’s audit costs, including any CITY staff time or consultant services and City Attorney services, to perform detailed follow-up audits where CITY staff determines that documentation of franchise fees, tonnage, diversion or other data, as reported by FRANCHISEE, is inadequate, incomplete or inaccurate. Where necessary, CITY staff will retain the services of an independent consultant to verify performance and conduct any necessary diversion audits.

Article 20. Insurance Requirements.

FRANCHISEE shall obtain and shall maintain throughout the term of this Agreement, at FRANCHISEE's sole cost and expense, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of work pursuant to this Agreement by FRANCHISEE, its agents, representatives, employees or FRANCHISEEs.

20.01 Minimum Scope and Limits of Insurance. FRANCHISEE shall maintain at least the following minimum insurance coverage:

20.01.1 Comprehensive General Liability: Coverage limits as required in Table

20.1 below. Combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limit.

20.01.2 Automobile Liability: Coverage limits as required in Table 20.1 below.

Combined single limit per accident for bodily injury and property damage. Coverage shall include hired autos and non-owned autos.

20.01.3 Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the California Labor Code and Employers Liability limits per accident as required in Table 20.1 below.

20.01.4 Pollution Liability Insurance: Per occurrence, coverage limits shown below in Table 20.1 without any exclusion for bodily injury or property damage arising out of the actual, alleged or threatened discharge, dispersal, release or escape of any Hazardous Material, Solid Waste, or other pollutant.

ITEM 9.2.

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Table 20.1
Minimum Insurance Limits
Contract Reference Effective January 1, 2026
Comprehensive
General Liability 20.01.1 $5,000,000
Automobile Liability 20.01.2 $5,000,000
Workers Compensation and
Employers Liability 20.01.3 $1,000,000
Pollution Liability 20.01.4 $5,000,000

20.02 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by CITY. FRANCHISEE shall be responsible for payment of all deductibles or self-insured retentions.

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

20.04 General Liability and Automobile Liability Coverage. CITY, its officers, employees, agents contractors and volunteers are to be covered as an additional insured as respects: liability arising out of activities performed by, or on behalf of FRANCHISEE; products and completed operations of FRANCHISEE; premises owned, leased or used by FRANCHISEE; and automobiles owned, leased, hired or borrowed by FRANCHISEE. The coverage shall contain no special limitations on the scope of protection afforded to CITY, its officers, employees, agents, contractors and volunteers.

20.04.1 FRANCHISEE'S insurance coverage shall be primary insurance as respects: CITY, its officers, employees, agents, contractors and volunteers. Any insurance or self - insurance maintained by CITY, its officers, employees, agents, contractors or volunteers shall be in excess of FRANCHISEE'S insurance and shall not contribute with it.

20.04.2 Any failure to comply with reporting provisions of the policies shall not affect coverage provided to CITY, its officers, employees, agents, contractors or volunteers.

20.04.3 Coverage shall state that FRANCHISEE'S insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

20.05 All Coverage. Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled, or reduced below the minimum limits described above except after thirty (30) days' prior written notice has been given to CITY. FRANCHISEE shall maintain all insurance coverages and limits in place at all times and provide CITY with evidence of each policy's renewal ten (10) days in advance of its anniversary date.

ITEM 9.2.

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FRANCHISEE is required by this Agreement to immediately notify CITY if they receive a communication from their insurance carrier or agent that any required insurance is to be canceled, non- renewed, reduced in scope or limits or otherwise materially changed. FRANCHISEE shall provide evidence that such cancelled or nonrenewed or otherwise materially changed insurance has been replaced or its cancellation notice withdrawn without any interruption in coverage, scope or limits. Failure to maintain required insurance In force shall be considered a material breach of the Agreement.

20.06 Placement of Insurance. Insurance shall be placed with insurers acceptable to CITY’s Risk Manager. FRANCHISEE must place insurance with a current A.M. Best rating of no less than A: VII. CITY’s Risk Manager may waive or alter this requirement in writing, or accept self-insurance in lieu of any required policy of insurance if, in the opinion of the Risk Manager, the interests of CITY and the general public are adequately protected.

20.07 Proof of Insurance. FRANCHISEE shall furnish CITY with certificates of insurance and with original endorsements affecting coverage required by this Agreement. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. Proof of insurance shall be sent to [email protected] and [email protected] unless otherwise notified in writing by the Contract Administrator.

20.08 Acknowledgment. FRANCHISEE acknowledges that the Temporary Service Franchise granted to FRANCHISEE will not become effective, and FRANCHISEE will have no authority to perform Temporary Services in the CITY, unless FRANCHISEE provides satisfactory proof of insurance prior to beginning operations as a FRANCHISEE.

20.09 Modification of Insurance Requirements. CITY shall retain the right at any time to review the coverage, form and amount of the insurance required hereby. If, in the opinion of the CITY’S Risk Manager, the insurance provisions in this Agreement do not provide adequate protection for CITY and f or members of the public, CITY may require FRANCHISEE to obtain insurance sufficient in coverage, form and amount to provide adequate protection. CITY’s requirements shall be reasonable but shall be imposed to assure protection from and against the kind and extent of risks that exist at the time a change in insurance is required. CITY’S Risk Manger may modify these insurance requirements only upon approval of the City Council.

Article 21. Indemnity.

21.01 FRANCHISEE agrees to defend, with counsel agreed upon by both parties, indemnify, and hold harmless CITY and its agents, officers, contractors, servants, public officials, volunteers, and employees from and against any and all claims asserted, costs, the cost of remediation and cost recoveries pursuant to the Comprehensive Environmental Response, Compensation and Liability Act , losses and damages, liabilities, expenditures or causes of action of any kind (including negligent, reckless, willful or intentional acts or omissions of the FRANCHISEE, its employees, agents, subcontractors, supplier, or any person or organization directly or indirectly employed by any of them to perform or furnish any services or ITEM 9.2.

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anyone for whose acts any of them may be liable), or injuries to any person or property, including injury to CITY employees, agents or officers which arise from, or are connected with, or are caused or claim to be caused by acts or omissions of FRANCHISEE, or their agents, officers or employees, in the performance of the non- exclusive Franchise or this Agreement, or in performing the work or services therein, and all costs and expenses of investigating and defending against same; provided, however, that FRANCHISEE'S duty to indemnify and hold harmless shall not include any claims or liability arising from the established active negligence, sole negligence, or sole willful misconduct of CITY, its agents, officers, servants and employees.

21.02 Hazardous Material Indemnification. FRANCHISEE agrees to defend, with counsel selected by CITY , indemnify, and hold harmless CITY and its agents, officers, contractors, servants, officers, volunteers, and employees from and against all claims, damages (including but not limited to special, consequential, natural resources and punitive damages), injuries, costs (including, without limit, any and all response, remediation, removal, closure, and post -closure costs), losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties, and expenses (including without limit attorneys’ and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity providing the enforcement action is successful in establishing indemnification), (collectively, “Damages”) of any kind whatsoever paid, incurred or suffered by, or asserted against, indemnities arising from or attributable to the acts or omissions of FRANCHISEE, its officers, directors, employees, companies, or agents, whether or not negligent or otherwise culpable, in connection with or related to the performance of this contract, including without limit damages arising from or attributable to any operations, repair, clean- up or detoxification, response or removal action, or preparation and implementation of any removal, remedial, response, closure, post -closure or other plan (regardless of whether undertaken due to governmental action) concerning any Hazardous Material, and/or Household Hazardous Waste (collectively, “Waste”) at any places where FRANCHISEE transfers, transports, processes, stores or disposes of Solid Waste or other waste collected under this contract, irrespective of whether the concentrations of any Waste are material, whether the concentrations exceed state or federal maximum contaminant or action levels, or whether any government agency has issued a clean-up or other order. The indemnity afforded indemnitees shall only be limited to exclude coverage for intentional wrongful acts and active negligence of indemnitees.

FRANCHISEE at its own expense, agrees to defend, with counsel of the CITY’s choosing, any claims for Damages asserted against CITY that would, in whole or in part, be covered by the indemnity obligations irrespective of whether such claims have merit. FRANCHISEE’s obligation under this indemnification provision will survive any termination of this Agreement.

21.03 The foregoing indemnity is intended to operate as an agreement pursuant to §107(e) of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. §9607(e), and California Health and Safety Code §25364, to defend, protect, hold harmless, and indemnify CITY from liability. Nothing in this provision shall prevent FRANCHISEE from seeking indemnification or contribution from persons or entities other than indemnitees, for any liabilities incurred by the FRANCHISEE, or the indemnitees.

ITEM 9.2.

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21.04 Indemnification for Failure to Meet AB 939 Goals. FRANCHISEE agrees to protect and defend CITY, with counsel selected by FRANCHISEE and CITY, to pay all attorneys’ fees, and to indemnify and hold CITY harmless from and against all fines or penalties imposed by CalRecycle if the diversion goals specified in the California Public Resources Code Section 41780 as of the date hereof and hereafter throughout are not met by CITY with respect to the Materials Collected by FRANCHISEE and if the lack in meeting such goals are attributable to the failure of the FRANCHISEE to implement and operate the diversion plans and/or programs or related activities required by this Agreement. Such indemnification of CITY by FRANCHISEE shall be proportionate to FRANCHISEE’S degree of fault for the penalty or fine imposed, as required under Public Resources Code § 40059.1.

Article 22. Equipment.

22.01 Any and all Containers provided to Customers by FRANCHISEE for storage, collection or transportation of Solid Waste meet the requirements of the Rancho Cordova Municipal Code and applicable California laws.

22.02 Any and all vehicles used by FRANCHISEE to perform Commercial Collection Service or Temporary Services shall meet the requirements of the Rancho Cordova Municipal Code and applicable California laws.

22.03 FRANCHISEE shall not operate Collection vehicles, nor perform Collection services on properties adjacent to residential uses during the hours of 8:00 PM through 6:00 AM, unless written authorization is given to FRANCHISEE from CITY. CITY reserves the right to revoke such written authorization at any time. Should a dispute arise as to the time service was provided, FRANCHISEE must provide documentation of service to the satisfaction of the CITY.

22.04 All collection equipment and vehicles used by FRANCHISEE shall have appropriate safety markings including, but not limited to, highway lighting, flashing and warning lights, clearance lights, and warning flags. All such safety markings shall be subject to the approval of the CITY and shall be in accordance with the requirements of the California Vehicle Code, as may be amended from time to time.

22.05 Each FRANCHISEE shall maintain collection equipment and vehicles in a clean condition and in good repair at all times, to the satisfaction of CITY.

22.06 FRANCHISEE shall ensure that all Collection vehicle loads are covered while in transit and shall not litter premises in the process of providing Commercial Collection Service, Temporary Services or while its vehicles are on the road. FRANCHISEE shall transport all materials Collected under the terms of this Agreement in such a manner as to prevent the spilling or blowing of such materials from the FRANCHISEE'S vehicles. FRANCHISEE shall exercise all reasonable care and diligence in providing Commercial Collection Service or Temporary Services so as to prevent spilling or dropping of Solid Waste and shall immediately, at the time of occurrence, clean up such spilled or dropped materials.

ITEM 9.2.

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22.07 FRANCHISEE may not use any Collection v ehicle in violation of weight limitations in Applicable Law, including any weight limitation placed on any public roadway or alley as adopted and posted by CITY. The FRANCHISEE may exceed the Collection Vehicle size limitation for a limited time due to extraordinary circumstances or conditions with the prior written consent of the Contract Administrator.

Article 23. Abandoned Containers.

23.01 If FRANCHISEE abandons any C ontainer used to provide Commercial Collection or Temporary Services, CITY, or its designated agent may remove the C ontainer and/or dispose of the contents of the container.

23.02 If CITY or its designated agent removes a Container abandoned by FRANCHISEE and/or disposes of the contents of any Container abandoned by FRANCHISEE, CITY may charge FRANCHISEE for CITY’s costs incurred in such removal/disposal and for CITY’S costs of storage of the C ontainer.

FRANCHISEE shall reimburse CITY for such costs within ten (10) days of the date of CITY’s invoice for such costs.

23.03 For the purposes of this Section, “abandoned” includes:

23.03.1 FRANCHISEE’S failure to remove the C ontainer within the time period specified by the City Council upon termination of this Agreement;

23.03.2 FRANCHISEE’s failure to remove the C ontainer within a reasonable period after the expiration of this Agreement except in the case where FRANCHISEE has been granted an extension of the term of this Agreement or FRANCHISEE has been granted a subsequent Commercial Collection Service Franchise authorizing FRANCHISEE to Collect and transport the type or types of Solid Waste for which the Container was used pursuant to this Agreement.

23.03.3 FRANCHISEE’S failure to dispose of the contents of the C ontainer within five (5) days after the Contract Administrator issues written notice to FRANCHISEE to dispose of the contents.

Article 24. FRANCHISEE Provided Containers.

24.01 General. FRANCHISEE shall equip and provide automatic lift containers, Carts, Bins or Roll-Off Containers for Commercial Collection Service and Temporary Service designed and constructed to be watertight and prevent the leakage of liquids. Containers shall be sufficient to accommodate the quantity and type of Commercial Collection Service and Temporary Service to its Customers. Upon request from CITY or Customer, FRANCHISEE shall provide locks and/or other suitable features to prevent theft of such materials.

24.02 Container Painting and Cleaning. All Containers of any service type furnished by FRANCHISEE must be in compliance with all applicable color specifications as set forth by CalRecycle.

ITEM 9.2.

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Containers should be free of dents and graffiti and painted as needed to maintain an orderly appearance throughout the Term of the Agreement. Containers may be subject to periodic, unscheduled inspections by CITY, and determination as to acceptable condition will be made by CITY. FRANCHISEE must comply with CalRecycle container requirements for labels, and/or signage, as they may apply during the term of the Agreement.

24.03 Signage. FRANCHISEE shall place SB 1383- compliant signage approved by the CITY on all Containers. Approval will not be unreasonably withheld, and current signage may be used until the end of its useful life. Containers must be clearly labeled and at a minimum will include FRANCHISEE’s name, customer service number, and graphics or a list indicating acceptable and unacceptable materials to be placed in each Container type.

Article 25. Vehicle Signage.

FRANCHISEE shall have permanently displayed in a prominent place on the exterior of each truck used in the Collection, removal or transportation of Solid Waste under this Agreement a sign which contains such information as is required pursuant to the provisions of the California Code of Regulations, Title 14, Section 17344.

Article 26. Personnel.

26.01 Driver Qualifications. FRANCHISEE agrees that all drivers shall be trained and qualified in the operation of collection vehicles and must have in effect a valid license, of the appropriate class, issued by the California Department of Motor Vehicles.

26.02 Safety Training. FRANCHISEE shall provide suitable operational and safety training for all of its employees who use or operate vehicles or equipment for collection of Solid Waste or who are otherwise directly involved in such collection.

Article 27. Customer Service.

FRANCHISEE shall at all times maintain a central office where a representative of FRANCHISEE can be reached by telephone 8:00 a.m. through 5:00 p.m., Mondays through Fridays, legal holidays excepted. FRANCHISEE will provide an email address or other online service by which a Customer may contact FRANCHISEE during or outside of normal business hours.

All service inquiries and complaints will be directed to FRANCHISEE. Customer Service training shall include Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection crews to perform the work quietly. FRANCHISEE shall use its best efforts to ensure that all employees present a neat appearance and conduct themselves in a courteous manner. All service complaints will be handled by Contractor in a prompt and efficient manner.

In the event of an accident, damage to public/private property, or other noteworthy event involving the FRANCHISEE, the CITY must be notified in accordance with the Incident Protocol in Exhibit 3. This includes any significant incident that results in City or Customer property damage. Reportable examples ITEM 9.2.

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include vehicle accidents, fires, fluid spills, city or customer property damage, etc. Issues with FRANCHISEE equipment that do not affect others need not be reported (i.e., if a vehicle breaks down during a route without spillage of any kind).

Article 28. Compliance with Law.

FRANCHISEE shall perform all Collection, transportation and disposal operations in accordance with applicable federal, state, and local law, including the Rancho Cordova Municipal Code, and in accordance with all regulations promulgated under such laws, and in accordance with the terms and conditions of this Agreement.

Article 29. Permits and Licenses.

FRANCHISEE shall obtain and maintain, at FRANCHISEE'S sole cost and expense, all permits and licenses applicable to FRANCHISEE'S operations under this Agreement required of FRANCHISEE by any governmental agency.

Article 30. Administrative Charges.

30.01 Quality performance by the FRANCHISEE is of primary importance. In acknowledgement of this, FRANCHISEE agrees to pay C ITY Administrative Charges and Penalties as detailed in Exhibit 2 should FRANCHISEE fail to meet its responsibilities under this Agreement.

30.02 Procedure for Review of Administrative Charges. The Contract Administrator may assess Administrative Charges as specified in Exhibit 2 pursuant to this Agreement monthly. At the end of each monthly during the Term of this Agreement, the Contract Administrator will issue a written notice to Contractor (“Notice of Assessment”) of the Administrative Charges assessed and the basis for each assessment.

30.02.1 The assessment will become final unless, within ten (10) calendar days of the date of the notice of assessment, FRANCHISEE provides a written request for a meeting with the City Manager to present evidence that the assessment should not be made.

30.02.2 The Contract Administrator will schedule a meeting between FRANCHISEE and the City Manager as soon as reasonably possible after timely receipt of Contractor’s request.

30.02.3 The City Manager will review FRANCHISEE ’s evidence and render a decision sustaining or reversing the Administrative Charges as soon as reasonably possible after the meeting. Written notice of the decision will be provided to FRANCHISEE.

30.02.4 In the event FRANCHISEE does not submit a written request for a meeting within ten (10) calendar days of the date of the notice of a ssessment, the Contract Administrator’s determination will be final.

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30.02.5 C ITY’s assessment or collection of Administrative Charges will not prevent CITY from exercising any other right or remedy, including the right to terminate this Agreement, for FRANCHISEE’s failure to perform the work and services in the manner set forth in this Agreement.

Article 31. Changes in Law.

CITY and FRANCHISEE understand and agree that the California Legislature has the authority to make comprehensive changes in Solid Waste Management legislation and that these and other changes in law in the future which mandate certain actions or programs f or counties or municipalities may require CITY to make changes or modifications in some of the terms, conditions or obligations under this Agreement. FRANCHISEE agrees that the terms and provisions of the Rancho Cordova Municipal Code, as it now exists or as it may be amended in the future, shall apply to all of the provisions of this Agreement and the Customers of FRANCHISEE located within the CITY.

Article 32. Default, Termination.

32.01 Default. Except for the occurrence of Force Majeure, in the event of any material failure or refusal of FRANCHISEE to comply with any obligation or duty imposed on FRANCHISEE under this Agreement or the Rancho Cordova Municipal Code, the Contract Administrator and FRANCHISEE shall meet and confer in good faith in an effort to agree on a resolution and cure of the breach. If the parties are unable to agree on the informal resolution or cure of the breach within ten (10) business days, the City Council shall have the right to terminate this Agreement if:

32.01.1 Following the ten (10) day meeting period described above, the Contract Administrator shall have given written notice to FRANCHISEE specifying that a particular default or defaults exists which will, unless corrected, constitute a material breach of this Agreement on the part of FRANCHISEE, and

32.01.2 FRANCHISEE fails to correct such default or fails to take reasonable steps to commence to correct such default within thirty (30) days from the date of the notice given by the Contract Administrator under Section 31.01.1 above and FRANCHISEE thereafter fails to diligently continue to take reasonable steps to correct such default.

32.02 The following events shall also constitute a material breach and default under this Agreement:

32.02.1 Misrepresentation. Any misrepresentation or disclosure made to CITY by FRANCHISEE in connection with or as an inducement to entering this Agreement or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time the representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement.

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32.02.2 Fraud or Deceit. If FRANCHISEE practices, or attempts to practice, any fraud or deceit upon CITY.

32.02.3 Failure to Maintain Coverage. If FRANCHISEE fails to provide or maintain in full force and effect any of the insurance coverage as required by this Agreement.

32.02.4 Violations of Regulation. If FRANCHISEE violates any licensing, permits, orders or filing of any regulatory body having jurisdiction over FRANCHISEE which violation or non- compliance materially affects FRANCHISEE'S ability to perform under this Agreement, provided that FRANCHISEE may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Franchise shall be deemed to have occurred during the pendency of the contestation or appeal, to the extent FRANCHISEE is able to adequately perform during that period.

32.02.5 Acts or Omissions. Any other act or omission by FRANCHISEE which materially violates the terms, conditions, or requirements of this Agreement, Rancho Cordova Municipal Code, AB 939, as it may be amended from time to time, or any order, directive, rule, or regulation issued thereunder and which is not corrected or remedied within the time set in the written notice of the violation or, if FRANCHISEE cannot reasonably correct or remedy the breach within the time set forth in such notices, if FRANCHISEE should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter.

32.02.6 Termination of Service. In the case of a breach related to the above Sections 31.02.1 through 31.02.5, and the breach continues for more than thirty (30) calendar days after written notice from the Contract Administrator for the correction thereof, provided that where such breach cannot be cured within such thirty (30) day period, FRANCHISEE shall not be in default of this Agreement if FRANCHISEE shall have commenced such action required to cure the particular breach within ten (10) calendar days after such notice, and it continues such performance diligently until completed.

32.03 Termination. Upon the occurrence of a material breach, the City Council shall have the right to terminate this Agreement. In the event FRANCHISEE fails to cure the material breach specified in a written notice from the Contract Administrator , then failure to cure may result in a declaration of termination of this Agreement by CITY.

32.04 Force Majeure. The performance of this Agreement may be discontinued or temporarily suspended in the event of Force Majeure. FRANCHISEE shall not be deemed to be in default and shall not be liable for failure to perform under this Agreement if FRANCHISEE’S performance is prevented or delayed by Force Majeure. For purposes of this Section, Force Majeure means acts of God including landslides, lightning, forest fires, storms, floods, freezing and earthquakes, civil disturbances, strikes, lockouts, or other industrial disturbances, acts of the public enemy, wars, blockades, public riots, breakage, ITEM 9.2.

ATTACHMENT 2

CONTRACT NO. 2025-[CONTRACT_NUMBER]

explosions, or government restraint. Notwithstanding anything to the contrary herein, CITY and FRANCHISEE agree that the settlement of strikes, lockouts or other industrial disturbances, and litigation, including appeals, shall be entirely within the discretion of FRANCHISEE and FRANCHISEE may make settlement thereof at such time and on any such terms and conditions as it may deem to be advisable, and no delay in making such settlement shall deprive FRANCHISEE of the benefit of this Section.

32.05 The Contract Administrator shall serve written notice, either personally or by registered or certified mail, postage prepaid of the termination of a Franchise under this Agreement to the last place of business of FRANCHISEE and FRANCHISEE shall cease operation under its Franchise within ten (10) calendar days.

Article 33. Conditions Upon Termination.

33.01 In the event this Agreement is terminated:

33.01.1 FRANCHISEE shall have no right or authority to provide Commercial Collection Services or Temporary Services in CITY.

33.01.2 FRANCHISEE shall, however, remain liable to CITY for any and all franchise fees that would otherwise be payable by FRANCHISEE, for any and all late payment charges and interest assessed pursuant to Section 8 of this Agreement and for any and all delinquent report charges assessed pursuant to Section 18 of this Agreement.

33.01.3 FRANCHISEE shall have a continuing obligation to submit to CITY all reports and forms required by Article 18 of this Agreement that relate to Temporary Services performed by FRANCHISEE up to and including the date of termination.

33.02 In the event this Agreement is terminated, then within the time period specified by the City Council and if directed by the Contract Administrator , FRANCHISEE shall remove all of FRANCHISEE’S containers from all of FRANCHISEE’S Collection Service locations within the CITY and shall properly dispose or process all Solid Waste in such containers.

Article 34. Notices.

Except as otherwise provided in this Agreement, all notices required by this Agreement shall be given by personal service, overnight delivery service, or by deposit in the United States mail, postage pre- paid and return receipt requested, addressed to the parties as follows:

To CITY: Solid Waste Franchise Contract Administrator
Attn: Marc Hill
City of Rancho Cordova
3303 Luyung Dr
ITEM 9.2.

ATTACHMENT 2

CONTRACT NO. 2025-[CONTRACT_NUMBER]

Rancho Cordova, CA 95742
Email: [email protected]
Phone: (916) 851-8710

To FRANCHISEE: [COMPANY]
Attn: [NAME]
[ADDRESS]
Email: [EMAIL]
Phone: [PHONE]

Notice shall be deemed effective on the date personally served or, if mailed, three days after the date deposited in the mail unless otherwise specified in this Agreement.

Article 35. Relationship of Parties.

The parties intend that FRANCHISEE shall perform the services required by this Agreement as an independent FRANCHISEE and not as an officer or employee of CITY nor as a partner of or joint venturer with CITY. No employee or agent of FRANCHISEE shall be deemed to be an employee or agent of CITY and shall not obtain any rights to retirement benefits, worker's compensation benefits, or any other benefits which accrue to the employees of CITY by virtue of their employment with said agency. Except as expressly provided herein, FRANCHISEE shall have the exclusive control over the manner and means of conducting the Temporary Services performed under this Agreement and all persons performing such services. FRANCHISEE shall be solely responsible for the acts and omissions of its officers, employees, subcontractors and agents.

FRANCHISEE agrees that this Agreement is not made in the interest of, or on behalf of, any undisclosed person, partnership, FRANCHISEE, association, organization, or corporation. FRANCHISEE has not directly or indirectly colluded, conspired, connived or agreed with any person, partnership, FRANCHISEE, association, organization, or corporation to secure any advantage against CITY.

Article 36. Compliance with Law.

In providing the services required under this Agreement, FRANCHISEE shall at all times, at its sole cost, comply with all applicable laws of the United States, the State of California, CITY and other states, or counties which may have jurisdiction over any service provided in this Agreement and with all applicable regulations promulgated by any federal, state, regional or local administrative and regulatory agency, now in force and as they may be enacted, issued or amended during the term of this Agreement.

Article 37. Governing Law.

This Agreement, and all rights, obligations, duties, and liabilities pursuant to it, shall be governed by, and construed and enforced in accordance with, the laws of the State of California.

ITEM 9.2.

ATTACHMENT 2

CONTRACT NO. 2025-[CONTRACT_NUMBER]

Article 38. Jurisdiction.

The parties agree that any litigation concerning or arising out of this Agreement shall be filed and maintained exclusively in the Municipal or Superior Courts of Sacramento County, State of California, or in the United States District Court for the Eastern District of California to the fullest extent permissible by law.

With respect to venue, the parties agree that this Agreement is made in and will be performed in the CITY.

Each party consents to service of process in any manner authorized by California law.

Article 39. Assignment.

39.01 FRANCHISEE acknowledges that this Franchise Agreement involves rendering a vital service to the Commercial Collection and Temporary Service Customers within CITY, and that CITY has franchised FRANCHISEE to perform the services specified herein based on: (1) FRANCHISEE'S experience, skill and reputation for conducting its Commercial Collection Service and Temporary Services in a safe, effective and responsible fashion, at all times in keeping with applicable waste management laws, regulations and good Solid Waste management practices; and (2) FRANCHISEE's financial resources to maintain the required equipment and to support its indemnity obligations to CITY under this Agreement.

CITY has relied on each of these factors, among others, in choosing FRANCHISEE to perform the services to be rendered by FRANCHISEE under this Agreement.

39.02 Any Franchise granted is a privilege to be held in trust by the original FRANCHISEE. This Franchise Agreement shall not be transferred, sold, leased, assigned, or relinquished, or delegated to another person, either in whole or in part, whether by forced sale, merger, consolidation, bankruptcy laws or otherwise, without the prior approval of the City Council. This restriction includes the transfer of ownership of FRANCHISEE, or a majority of the ownership or control of FRANCHISEE, or the conveyance of a majority of FRANCHISEE's stock to a new controlling interest. This Agreement shall become void upon the abandonment of same by FRANCHISEE. The City Council shall not unreasonably withhold approval of a Franchise assignment, provided that such assignment does not unreasonably impact competition and the assignee is qualified to perform its obligations as required by this Franchise Agreement and any implementing CITY ordinance.

39.03 FRANCHISEE shall promptly notify the Contract Administrator in writing in advance of any proposed assignment, sale, or transfer. In the event the City Council approves of any assignment, sale, or transfer, said approval shall not relieve FRANCHISEE of any of its obligations or duties under this Agreement unless this Agreement is modified in writing to that effect.

Article 40. Binding on Successors.

The provisions of this Agreement shall inure to the benefit of and be binding on the successors and permitted assigns of the parties.

ITEM 9.2.

ATTACHMENT 2

CONTRACT NO. 2025-[CONTRACT_NUMBER]

Article 41. Waiver.

41.01 The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach or violation of the same or any other provision.

41.02 The subsequent acceptance by either party of any monies, which become due hereunder, shall not be deemed to be a waiver of any preexisting or concurrent breach or violation by the other party of any provision of this Agreement.

Article 42. FRANCHISEE'S Investigation.

FRANCHISEE has made an independent investigation, satisfactory to it, of the conditions and circumstances surrounding the Agreement and the work to be performed by it.

Article 43. Entire Agreement.

This Agreement, including any Exhibits, represents the full and entire Agreement between the parties with respect to the matters covered herein.

Article 44. Interpretation.

This Agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting.

Article 45. Amendment.

This Agreement may not be modified or amended in any respect except by a written agreement duly approved and signed by the parties.

Article 46. Severability.

If any nonmaterial provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement, which shall be enforced as if such invalid or unenforceable provision had not been contained herein.

ITEM 9.2.

ATTACHMENT 2

CONTRACT NO. 2025-[CONTRACT_NUMBER]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above

CITY OF RANCHO CORDOVA FRANCHISEE

_______________________________ __________________________ Albert Stricker, Public Works Director [NAME], [TITLE]

Date: ____________________ Date: ____________

Attest:

____________________________
Stacy Leitner, City Clerk

Date: ____________________

Approved as to Form:

____________________________
Adam Lindgren, City Attorney

Date: ____________________
ITEM 9.2.

ATTACHMENT 2

EXHIBIT 1
CONTRACT NO. 2025-[CONTRACT_NUMBER]

Exhibit 1
City of Rancho Cordova, CA
City-Approved Facilities

City-Approved C&D Sorting Facilities
Facility Address SWIS Material Type Sacramento County
Diversion Rate
L and D Landfill and
Material Recovery
Facility
8635 Fruitridge
Road, Sacramento 34-AA-0020 Mixed C&D
Source Separated 80.23%
GreenWaste Florin
Perkins Resource
Recovery Facility
4201 Florin Perkins
Road, Sacramento 34-AA-0221 Mixed C&D
Source Separated 72.68%
Sierra Waste
Recycling & Transfer
Station, Inc.
8260 Berry Avenue,
Sacramento 34-AA-0214 Mixed C&D
Source Separated 83.12%

City-Approved Processing Facilities
Facility Address SWIS Material Type Diversion Rate
Sacramento Recycling
and Transfer
8491 Fruitridge Road
Sacramento, CA 34-AA-0195 Recyclables
Napa Recycling at
Yolo Landfill
44090 County Road
28H, Woodland, CA 57-AA-0001 Organics
Western Placer Waste
Management Authority
3195 Athens Avenue,
Lincoln 31-AA-0001 Mixed Solid Waste
TBD

Disposal and Transfer Facilities
Facility Address SWIS Material Type
Kiefer Landfill 12701 Kiefer Blvd, Sloughhouse 34-AA-0001 Garbage North Area Recovery Station 4450 Roseville Rd, North Highlands 34-AA-0002 Garbage Sacramento Recycling and
Transfer Station 8491 Fruitridge Road, Sacramento 34-AA-0195 Garbage TBD
ITEM 9.2.

ATTACHMENT 2

EXHIBIT 2
CONTRACT NO. 2025-[CONTRACT_NUMBER]

Exhibit 2
City of Rancho Cordova, CA
Administrative Charges
It shall be the duty of FRANCHISEE to perform services under this Agreement in such a manner as to ensure that services are of the highest caliber. In the event FRANCHISEE fails to perform the services set forth in this Agreement, CITY may assess administrative charges against FRANCHISEE in the following amounts:

Failure Amount Cure Period Section
a. Failure to provide renewal information in
90-day window. $50.00 per day n/a 4.04
b.

Failure to submit franchise fee payment in
accordance with Article 8 of this
Agreement.
$100 per
Business Day
2 Business
Days 8
c.

Failure to deliver Construction and
Demolition Debris to a City-Approved
C&D Sorting Facility to obtain a
Sacramento County stamp for Covered
Project.
$1,000.00/occurrence n/a 10.02
d.

Disposal of Source Separated Recyclable
Materials, and/or Organic Recyclable
Materials in a disposal facility or landfill
without first obtaining the written
permission of CITY.
$1,000.00/occurrence n/a 10.05

11.02 e.

Failure to deliver a recoverable load (30%
or greater diversion) to a City-Approved
Processing Facility or City-Approved C&D
Facility, except as otherwise expressly
provided in this Agreement.
$1,000.00/occurrence n/a 10.06
f.

Failure to deliver Collected Solid Waste to
an appropriate City-Approved facility as
listed in Exhibit 1 or a facility approved via
the process described in Article 9.
$1,000.00/occurrence n/a 10.06
g.

Failure to achieve required 65% diversion
rate for Temporary Debris over a 3-month
reporting period (measured in
consecutive monthly reporting to reflect a
Calendar Year quarter).
$50.00 per one ton shortfall
needed to meet
65% diversion requirement
per quarter
n/a 10.07
ITEM 9.2.

ATTACHMENT 2

EXHIBIT 2
CONTRACT NO. 2025-[CONTRACT_NUMBER]

h.

Failure to provide all Covered Generators
with complete service of Garbage,
Recycling and Organics.
$500/occurrence.
5 Business
Days from
initial Container
delivery

14.01 i.

Failure to conduct Route Reviews,
including not reviewing each material
stream for customers in sample.
$100.00 per material per
review n/a 14.06
j.

Failure to adhere to requirements of
Service Agreement (as brought to the
City's attention via a Customer
complaint).
$100/incident/month

(every month any Service
Agreement term is not
included/accurate per
Customer per month)
n/a 16.01 &

16.02 k.

Overcharging Customer for services as
agreed on Service Agreement as brought
to the City's attention via a Customer
complaint. Failure to reduce rate / pricing
on invoice to Customer after reduction in
service, including reduction as a result of
an approved Waiver or Alternative
Compliance, as brought to the City's
attention via a Customer complaint.
2x overcharge to
Customer/month

(if Customer was charged
$100 per month extra and
FRANCHISEE does not
correct within 5 Business
Days, charge to
FRANCHISEE is $200 in
month 1, another $200 in
month 2, etc.)
15 Business
Days from alert
from Customer
or City

16.01.6.2 l.

Failure to conduct required annual site
visits and comprehensive waste
analyses.
$100 per site visit not
conducted annually

$500 per comprehensive
waste analyses not
conducted annually
n/a 17.02
m.

Failure to submit complete and correct
information or reports on time and in
accordance with Article 18 of this
Agreement.

Each report due shall be treated
separately for purposes of this delinquent
report charge, and such delinquent report
charges shall be cumulative.
$50.00 per day delinquent
per report n/a 18
n.

Failure to respond to any CITY request
for data or information within five (5)
Business Days of receipt of the request.
$200.00 per day 2 Business
Days 18.12
ITEM 9.2.

ATTACHMENT 2

EXH
IBIT 2
CONTRACT NO. 2025-[CONTRACT_NUMBER]

o. Verified collection outside of restricted
collection hours $100 per day n/a 22.03
p. Failure to maintain equipment in a clean,
safe, and sanitary manner. $200.00/occurrence 2 Business Days

22.05 24.02
q. Failure to clean up spillage or litter
caused by FRANCHISEE. $200.00/occurrence 1 Business Day 22.06 r. Failure to properly cover materials in
Collection vehicles. $200.00/occurrence n/a 22.06
s. Operation of overweight Collection
Vehicles.
$500 per day per load after
CITY has considered
FRANCHISEE’s reason for
overweight vehicles.
n/a 22.07
t.

Failure to remove Containers from
Customer property within 10 business
days following termination of Customer
service agreement.
$50 per day. 2 Business
Days 23
u. Failure to meet Customer Service
standards $200/occurrence n/a 27
v.

Failure to comply with the requirements of
this Agreement or Rancho Cordova
Municipal Code not specified in items a.
through t. following written notice from
CITY to FRANCHISEE of deficiency.
$250.00 per incident n/a
ITEM 9.2.

ATTACHMENT 2

EXH
IBIT 3
CONTRACT NO. 2025-[CONTRACT_NUMBER]

Exhibit 3
City of Rancho Cordova, CA
I
ncident Protocol
ITEM 9.2.

ATTACHMENT 2

Franchised Waste Hauler Incident Communication Protocol T h e f o l l o w i n g p r o t o c o l i d e n t i fi e s t h e i t e m s r e q u i r e d t o b e r e p o r t e d t o t h e C i t y o f R a n c h o Cordova in the event of an accident, damage to public/private property, or other noteworthy event involving the hauler. This includes any incident, regardless of how minor that affects an entity other than the hauler. Reportable examples include vehicle accidents, fires, fluid s p i l l s , c i t y o r c u s t o m e r p r o p e r t y d a m a g e , e t c . I s s u e s w i t h h a u l e r e q u i p m e n t t h a t d o n o t affect others need not be reported (i.e., if a vehicle breaks down during a route without spillage of any kind).

Not
ification Tree
A
fter notifying emergency services as appropriate, the city must be contacted via phone when an incident is identified through one of the staff below. If a staff member does not answer, the next person on the list must be phoned until actual contact is made. • Ma
rc Hill – 916-851-8821, [email protected]
• Maria Lopez – 916-851-8893, [email protected] • Victor Ramos – 916-851-8948, [email protected] • Main Public Works Line – 916-851-8810
I
mmediate Communication
• D
escription: provide a detailed description of what transpired (e.g. a truck caught fire, and the load was ejected) and if there were any injuries. • E
mergency Services Notified: communicate if Emergency Services have been contacted and if they are currently on scene.
• R
esponse: provide a detailed description of the response that is being mobilized to address the incident.
•
• Timing: provide the approximate time the incident occurred and anticipated length of time necessary to resolve the situation.
• S
pecific Location of Incident : provide as precise a location as possible, including the nearest cross streets. For example, “the accident occurred in the parking lot of Rancho Cordova City Hall. The closest cross streets are Prospect Place and Gold Center Drive. ”
ITEM 9.2.

ATTACHMENT 2

EXH
IBIT 3
CONTRACT NO. 2025-[CONTRACT_NUMBER]

• City Asset Impact: provide information related to the following:
o A
ny Drain Inlets (DI’s) affected by liquids as a result of the incident. o Impact on road surface (if any).
o Impact on signs, streetlights, signals, sidewalks, etc. • O
ther Asset Impact : p r o v i d e d e t a i l s o f d a m a g e s t o c u s t o m e r a s s e t s a n d / o r t h i r d- party assets including if external parties were involved/notified of the issue. • M
edia: communicate if the media is present.
• Ph
otos: to the extent possible, provide photographs of the incident, including specific damage to city assets, where applicable.

Fo
llow-Up Communication
A
t t h e c o n c l u s i o n o f t h e i n c i d e n t r e s p o n s e , p r o v i d e t h e f o l l o w i n g d e t a i l s t o t h e c i t y s t a ff person that was originally contacted. Follow-up communication may be accomplished via email if desired. If email is chosen, please copy Marc Hill if he is not the staff person with whom primary contact was made.
• T
imeframe: summarize the incident timeframe from the initial notification to the conclusion of the response effort.
• R
esponse: provide details about what transpired during the response effort and any follow-up that needs to be accomplished. If follow-up attention is required, provide the timeframe for it.
• C
ausation: provide as much information as possible regarding what caused the incident and any measures that will be taken to mitigate future incidents (if possible).

ITEM 9.2.

ATTACHMENT 2

CO
NTRACT NO. 2025-[CONTRACT_NUMBER]

NON-EXCLUSIVE TEMPORARY

SERVICE FRANCHISE AGREEMENT BETWEEN THE
CIT

Y OF RANCHO CORDOVA AND
[CONTRACTOR]
ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

RECITALS ................................................................................................................... 4 Article 1. Definitions. .................................................................................................. 6 Article 2. Grant of Non-Exclusive Franchise. .............................................................13 Article 3. Acceptance of Franchise. ...........................................................................13 Article 4. Term of Franchise. .....................................................................................13 Article 5. Conditions for Effectiveness. ......................................................................14 Article 6. Limitations on Scope of Franchise. ............................................................14 Article 7. Franchise Fees. .........................................................................................14 Article 8. Franchise Fee Payment. ............................................................................15 Article 9. Approval of Facilities ..................................................................................16 Article 10. Transportation, Processing, Diversion. .....................................................17 Article 11. Ownership of Temporary Service Solid Waste. .......................................20 Article 12. Container Placement. ...............................................................................20 Article 13. Reporting Requirements. ........................................................................20 Article 14. Inspection Authority. .................................................................................23 Article 15. Insurance Requirements. .........................................................................23 Article 16. Indemnity. ................................................................................................26 Article 17. Equipment. ...............................................................................................27 Article 18. Abandoned Containers. ...........................................................................28 Article 19. FRANCHISEE Provided Containers. ........................................................28 Article 20. Vehicle Signage. ......................................................................................29 Article 21. Personnel. ................................................................................................29 Article 22. Customer Service.....................................................................................29 Article 23. Compliance with Law. ..............................................................................30 Article 24. Permits and Licenses. ..............................................................................30 Article 25. Administrative Charges. ..........................................................................30 Article 26. Changes in Law. ......................................................................................31 Article 27. Default, Termination. ................................................................................31 Article 28. Conditions Upon Termination. ..................................................................33 Article 29. Notices. ....................................................................................................34 Article 30. Relationship of Parties. ............................................................................34 Article 31. Compliance with Law. ..............................................................................35 Article 32. Governing Law. ........................................................................................35 ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

Article 33. Jurisdiction. ..............................................................................................35 Article 34. Assignment. .............................................................................................35 Article 35. Binding on Successors. ............................................................................36 Article 36. Waiver. .....................................................................................................36 Article 37. FRANCHISEE'S Investigation. ................................................................. 36 Article 38. Entire Agreement. ....................................................................................36 Article 39. Interpretation. ...........................................................................................36 Article 40. Amendment. .............................................................................................36 Article 41. Severability. .............................................................................................36

Exhibits
Exhibit 1: City -Approved Facilities
Exhibit 2: Administrative Charges
Exhibit 3: Incident Protocol

ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

NON-EXCLUSIVE

TEMPORARY SERVICE FRANCHISE AGREEMENT BETWEEN

THE CITY OF RANCHO CORDOVA
AND [CONTRACTOR]
This Non-Ex clusive Temporary Service Franchise Agreement (“Agreement”) is made and entered into this [DATE] by and between the City of Rancho Cordova, a municipal corporation of the State of California, hereinafter referred to as “CITY”, and [CONTRACTOR], hereinafter referred to as "FRANCHISEE".

RECITALS
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) (California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for solid waste, recyclable materials and organic recyclable materials handling within their jurisdictions; and WHEREAS, the Legislature of the State of California, by enactment of Commercial Recycling legislation (“AB 341”) has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for commercial recycling within their jurisdictions; and WHEREAS, the Legislature of the State of California, by enactment of Commercial Organics Recycling legislation (“AB 1826”), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for commercial organics recycling within their jurisdictions; and WHEREAS, in September 2016 Senate Bill 1383 (SB 1383) was signed into law, establishing methane emissions reduction targets representing the next step in California’s environmental protection strategy; and
WHEREAS, SB 1383 sets forth organics and recycling compliance targets as stated in Health & Safety Code § 39730.6 which are designed to progressively achieve California’s goal of 75% recycling, composting or source reduction of solid waste by 2025; and WHEREAS the California Green Building Standards Code – Part 11, Title 24, California Code of Regulations – known as CALGreen, requires diversion of construction and demolition materials from landfill disposal; and
WHEREAS, CITY has determined that the public health, safety and welfare require that non- exclusive Franchises be awarded to qualified franchisees for the collection, transport, processing and disposal of temporary solid waste, recyclable materials, organic recyclable materials and construction and demolition materials in the CITY; and
WHEREAS, the Legislature has found and declared in Section 49510 of the Public Resources Code that it is in the public interest to foster and encourage solid waste enterprises so that, at all times, ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

there will continue to be competent enterprises willing and financially able to furnish needed solid waste handling service; and
WHEREAS, one of the purposes of this Agreement is to regulate such non- exclusive Franchises in order to ensure the orderly collection, transportation, processing and disposal of construction and demolition debris , temporary solid waste, recyclables, and organics in the CITY, and to minimize the potential for adverse effects it may have on the local environment; and WHEREAS, CITY requires all solid waste collectors providing temporary ser vices in the CITY to obtain a non-exclusive Franchise for the collection of construction and demolition debris, temporary solid waste, recyclables, and organics (Temporary Service Franchise) in order to regulate this business, ensure its orderly operation, and minimize the potential for adverse effects it may have on the local environment; and
WHEREAS, CITY has determined that the FRANCHISEE does meet the requirements for the granting of such a Franchise and that the grant of a Temporary Service Franchise to FRANCHISEE is in the public interest; and
WHEREAS, CITY intends to receive value for the Franchise issued, through the payment by FRANCHISEE to CITY of a franchise fee, which represents a toll or rental for the use of CITY streets and rights of way; and
WHEREAS, the franchise agreements confer significant benefits to franchisees including the use of CITY right of way to perform services; and
WHEREAS, the CITY’s franchise fees are similar to and in some instances lower than comparable or geographically proximate jurisdictions; and
WHEREAS, the CITY has analyzed the amount of franchise fees charged to franchised waste haulers and has determined that these fees are reasonable in relationship to the value and benefits conferred to each franchisee for the use of the CITY’s right of way to perform services pursuant to the franchise agreement as well as the increased burden to CITY to maintain its right of way attributed to traffic from franchisees’ vehicles; and
WHEREAS, FRANCHISEE agrees to and acknowledges that it shall arrange for the proper disposal of all garbage and the proper processing for maximum materials recovery of all designated recyclable materials, all designated organic recyclable materials, and all construction and demolition debris collected in the CITY. CITY is not instructing FRANCHISEE how to collect, transport, process or dispose of temporary solid waste, recyclables, organics or construction and demolition debris as long as its operation is consistent with the Rancho Cordova Municipal Code and all applicable State and Federal laws; and
WHEREAS, CITY and FRANCHISEE desire to enter into a non- exclusive Temporary Service Franchise Agreement in order that FRANCHISEE may perform temporary solid waste, and construction and demolition debris collection. transportation, processing and disposal services in the CITY.

ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

NOW, THEREFORE, based on the mutual promises contained herein, the parties agree as follows:

Article 1. Definitions.

For the purpose of this Temporary Service Franchise Agreement, the definitions contained in this Article shall apply unless otherwise specifically stated. If a word or phrase is not defined in this Article , the definition of such word or phrase as contained in the Chapters 6.20 and 6.21 of the Rancho Cordova Municipal Code (“RCMC”) shall control. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural.

Use of the masculine gender shall include the feminine gender.

1.01 “Agreement”. Agreement means the written Non-Exclusive Temporary Service Franchise Agreement between the CITY and the FRANCHISEE covering the work to be performed, as well as all contract documents attached to the agreement and made a part thereof.

1.02 “Applicable Law”. All federal, state, county and local laws, regulations, rules orders, judgments, decrees, rulings, permits, approvals, or other requirement of any governmental entity or regulatory or quasi -regulatory authority having jurisdiction over an aspect of the Collection Services, including judicial interpretations thereof, that are in force on the Effective Date, and as may be enacted or amended thereafter, until termination or expiration of this Agreement.

1.03 “ Bin.” A metal or plastic container, with a capacity of one (1) cubic yard up to and including eight (8) cubic yards, designed or intended to be mechanically dumped into a front or rear -load packer vehicle. Bins may also include compactors that are owned by a Customer or the FRANCHISEE .

1.04 “ Brokerage Services”. Brokerage Services means the arrangement of Collection Cervices between a Business or Multi-Family Residential Property and a Franchised Service Provider wherein there is a third-party Franchised Service Provider than facilitates the sale, Container provision, billing, or some combination of these services.

1.05 “ Brown Goods”. Electronic equipment such as stereos, televisions, computers, monitors, VCR’s and other similar items.

1.06 “ Bulky Waste Collection Service”. Bulky Waste Collection Service is the periodic on- call Collection of Large Items, by the FRANCHISEE, and the delivery of items to a City -Approved Processing Facility or such other facility as may be appropriate under the terms of this Agreement. Bulky Waste Collection Service includes the collection of items such as, but not limited to, furniture, carpets, mattresses, electronic equipment and appliances. Bulky Waste Collection Service may include the Collection of Large Items using Roll-Off Containers.

1.07 “Business”. Business means a commercial entity, proprietorship, firm, partnership, person in representative or fiduciary capacity, association, venture, trust, or corporation that is organized for ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

financial gain or profit, including but not limited to, offices, retail stores, markets, manufacturing facilities, warehouse and distribution facilities, restaurants, motels and hotels, theaters, medical offices, gas stations and automotive facilities; and not-for-profit organizations, associations and entities, including but not limited to, churches, hospitals, and social service organizations.

1.08 “Business Day.” Business Day means any Monday through Friday, excluding any holidays.

1.09 “ Cart.” A heavy plastic receptacle with an approximate capacity of at least thirty-two (32) and not more than one hundred (100) gallons, having a hinged tight-fitting lid and wheels.

1.10 “CITY”. CITY means the City of Rancho Cordova, California and all the territory lying within its boundaries as presently existing or as such boundaries may be modified during the term of this Agreement.

1.11 “City-Approved C&D Sorting Facility”. City-Approved C&D Sorting Facility means a facility approved by the CITY that receives C&D Debris and/or processes C&D Debris into its component material types for reuse, recycling, and disposal of residuals. A list of approved facilities is included in Exhibit 1.

1.12 “City-Approved Disposal or Transfer Facility”. City-Approved Disposal or Transfer Facility means a Landfill that accepts Solid Waste for disposal or a Transfer Station that accepts Solid Waste for processing and/or transfer to a permitted facility for disposal that is approved by the CITY. A list of approved facilities is included in Exhibit 1.

1.13 “City-Approved Material Processing Facility”. City-Approved Material Processing Facility means a facility approved by the CITY that: 1) receives mixed Recyclable Material and processes Recyclable Material into its component material types for reuse, recycling, and disposal of residuals, or 2) receives Organic Recyclable Material and/or processes Organic Recyclable Material into its component material types for the recycling of organic waste, and disposal of residuals. A list of approved facilities is included in Exhibit 1.

1.14 City Manager. “City Manager” means the City Manager of the City of Rancho Cordovas, or his or her designated representative, or any employee of the CITY who succeeds to the duties and responsibilities of the City Manager.

1.15 “Collection” or “Collect”. Collection means the act of picking up and removing Garbage, Recyclable Materials, or Organic Recyclable Materials at the place of generation.

1.16 ”Collection Services”. Collection Services means FRANCHISEE’s obligations under this Temporary Service Franchise Agreement to collect Solid Waste within the CITY. Collection Services include Temporary Services, but are exclusive of Commercial Collection Services and On -Call Service.

1.17 “Commercial Collection Services”. Commercial Collection Services means the weekly or On-Call Service Collection of Designated Organic Recyclable Materials, Designated Recyclable Materials ITEM 9.2.

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and/or Commercial Garbage in the CITY by a person or company that holds a valid Non- Exclusive Commercial Collection Service Franchise Agreement with the CITY and associated transportation, processing and/or disposal of listed material types.

1.18 “Commercial Garbage” or “Garbage”. Commercial Garbage means waste that is generated by a Business or Multi -Family Residential Property and Collected at such Business or Multi -Family Residential Property but does not include Designated Recyclable or Designated Organic Recyclable Materials.

1.19 “Contract Administrator”. Contract Administrator means the Contract Administrator, or his or her designee, designated by the CITY to administer and monitor the provisions of the Agreement.

1.20 “Construction and Demolition Debris” or “C&D Debris”. C&D Debris means used or discarded materials resulting from construction, renovation, remodeling, repair, or demolition operations on any pavement, house, commercial building, or other structure, and such other materials as may be removed during the normal cleanup process of such construction, renovation, remodeling, repair, or demolition operations. This includes mixed construction and demolition debris, and source separated recyclable construction and demolition materials that are not hazardous as defined in California Health and Safety Code Section 25100 et seq. Such materials include, but are not limited to, concrete, asphalt, wood, metal, brick, dirt, sand, rock, gravel, plaster, glass, gypsum wallboard, cardboard and other associated packaging, roofing material, ceramic tile, carpeting, masonry, plastic pipe, trees, and other vegetative matter resulting from land clearing and landscaping.

1.21 “Container”. Container means a Bin, Cart, Debris Box or Roll -Off Container for use by Customers for Temporary Service under this Agreement.

1.22 “Covered Generator”. Covered Generator means all Businesses and Multi -Family Residential Properties that are subject to the requirements of Chapter 6.21 of the Rancho Cordova Municipal Code.

1.23 “Covered Project”. Covered project is defined in Rancho Cordova Municipal Code Section

16.92.020.J and means a project that meets one or more of the following criteria: (1) is new construction; (2) is a demolition project; or (3) is a tenant improvement with a permit valuation greater than or equal to $250,000. “Covered project” shall not include: (1) activities performed in response to an emergency, such as a natural disaster; or (2) activities that contain significant amounts of materials that cannot be d isposed of in Class II sanitary landfills described in Title 27, Section 20250 of the California Code of Regulations, and as may be amended from time to time.

1.24 “Customer”. Customer means a Business or Multi- Family Residential Property owner or generator, or their contractor or other designated responsible person or Residential Service Unit wishing to use FRANCHISEE service for Temporary Debris not acceptable through the Exclusive Residential ITEM 9.2.

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CONTRACT NO. 2025-[CONTRACT_NUMBER]

Franchise Agreement , who enters into a contract or other sales agreement with FRANCHISEE for Temporary Services.

1.25 “Designated Green Materials” or “Green Materials”. Green Materials means materials that are required to be separated by Covered Generators from Commercial Garbage and Designated Recyclable Materials prior to disposal and returned for use or reuse in the form of raw materials for new, used or reconstituted products. Green Materials include, but are not limited to yard trimmings, grass, weeds, leaves, pruning, branches, dead plants, brush, tree trimmings, dead trees, small wood pieces and other types of organic yard waste. Green Materials do not include food scraps and paper contaminated with food scraps.

1.26 “Designated Organic Recyclable Materials” or “Organic Recyclable Materials” or “Organics”. Organics means materials that are required to be separated by Covered Generators from Commercial Garbage and Designated Recyclable Materials prior to disposal and returned for use or reuse in the form of raw materials for new, used or reconstituted products. Organic Recyclable Materials include the following materials: food waste, Green Materials, landscaping and pruning waste, nonhazardous wood waste, and food-soiled paper waste that is mixed in with food waste.

1.27 “Designated Recyclable Materials” or “Recyclable Materials” or “Recyclables”. Recyclables means materials that are required to be separated by Customers from Commercial Garbage and Designated Organic Recyclable Materials prior to disposal and returned for use or reuse in the form of raw materials for new, used or reconstituted products. Recyclable Materials currently include: newsprint (including inserts); mixed paper (including magazines, catalogs, envelopes, junk mail, corrugated cardboard, Kraft brown bags and paper, paperboard, paper egg cartons, and telephone books); glass containers; aluminum beverage containers; small scrap and cast aluminum (not exceeding ten (10) pounds in weight for any single item); steel including ”tin” cans and small scrap (not exceeding ten (10) pounds in weight for any single item); bimetal containers; plastic containers (#1 and #2); aseptic containers;; and those materials accepted by FRANCHISEE or CITY for Recycling, as updated from time to time.

1.28 “Drop Box Debris”. Drop Box Debris means used or discarded materials resulting from construction, remodeling, repair, demolition, or cleanup operations on any type of structure. May include commingled Green Materials, Recyclable Materials and non-recyclable C&D Debris.

1.29 “Franchise”, “Franchise Agreement” or “Agreement”. Agreement means this written document and all exhibits and amendments thereto between CITY and FRANCHISEE.

1.30 “ Franchised Service Provider .” Franchised Service Provider means a waste collection provider operating under a Franchise Agreement in the City of Rancho Cordova.

1.31 “Gross Revenue”. Gross Revenue means all monetary amounts actually received by FRANCHISEE for the performance of Collection Services. Gross Revenues includes all receipts from Customers inclusive of container rentals, late charges, fuel surcharges, and contamination fees. Gross ITEM 9.2.

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Revenue does not include revenues generated from the sale of Recyclable Materials, compost, energy, grants, cash awards, California Department of Conservation payments, or rebates.

1.32 “Hazardous Materials”. Hazardous Materials means those materials that may have a negative impact on human health or the environment, including but not limited to all hazardous materials defined in Health and Safety Code Section 25501, subdivision (n), namely any material that, because of its quantity, concentration, or physical or chemical characteristics, poses a significant present or potential hazard to human health and safety or to the environment if released into the workplace or the environment.

Under this Agreement, “Hazardous Materials” include, but are not limited to, hazardous substances, hazardous waste, per - and polyfluoroalkyl substances (“PFAS”), lead- containing paint, polychlorinated biphenyls (“PCBs”), asbestos -containing materials (“ACMs”), asbestos containing construction materials (“ACCMs”), and any material that FRANCHISEE reasonably believe(s) would, as a result of or upon acceptance, be violation of local, state, or federal law, regulation, or ordinance, including waste that cannot be disposed of in Class III landfills or material or waste that in FRANCHISEE’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose FRANCHISEE or CITY to potential liability. Hazardous Materials does not include any materials, wastes, or Solid Waste defined as allowable materials for collection through this Agreement.

1.33 “Landfill”. Landfill means a facility approved by the CITY that: has obtained and maintains for the term of the Agreement valid permit(s) to dispose of Solid Waste and such other materials as may be delivered by FRANCHISEE under the terms of this Agreement. Landfills are included as a City - Approved Disposal or Transfer Facility.

1.34 “Large Items”. Large Items means those materials Collected as part of Bulky Waste Collection Services that includes, but is not limited to: furniture, carpets, mattresses, W hite Goods, Brown Goods, clothing, tires, or some combination of such items.

1.35 “Multi-Family Residential Property” or “MFD Property”. MFD Property means five (5) or more residential dwelling units located on a single parcel of land and any mobile home park located within the CITY.

1.36 “National Contracts”. National Contracts means contracts between waste management companies and multi-sited waste generating companies that currently operate in more than one state in the United States.

1.37 “ Non-Exclusive Commercial Collection Service Franchise Agreement”. Non-Exclusive Commercial Collection Service Franchise Agreement means an agreement between the CITY and a Franchised Service Providers to provide regular Commercial Collection Services , On-Call Services and Temporary Service to Customers.

ITEM 9.2.

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1.38 “ Non-Exclusive Temporary Service Agreement ”. Non-Exclusive Temporary Service Agreement means an agreement between the CITY and a Franchised Service Provider to provide Temporary Service.

1.39 “On-Call Service”. On-Call Service means Collection using Containers provided to a Customer where the Containers are placed indefinitely and the Customer requests service as needed as opposed to regular weekly, or more frequent, service. On- Call Service is performed by a person or company that holds a valid Non- Exclusive Commercial Collection Service Franchise Agreement with the CITY for the delivery of those materials to a City-Approved Material Processing Facility or City -Approved Disposal or Transfer Facility.

1.40 “Organics Recycling”. Organics Recycling means the process of Collecting, sorting and treating Organic Recyclable Materials and/or Green Materials that would have otherwise become Commercial Solid Waste and returning them to a safe, nuisance- free compost product by treating the materials to a controlled biological decomposition to ensure compliance with SB 1383.

1.41 “Prohibited Container Contaminants”. Prohibited Container Contaminants means any of the following:

1.41.1 Non-Organic Recyclable Materials placed in the Organics Container, including but not limited to, textiles and carpets, manure, biosolids, digestate, sludges, non-compostable paper, Construction & Demolition Debris, and Hazardous Waste;

1.41.2 Material placed in the Garbage Container that is specifically identified under the Agreement for collection in the Organics Container or the Recyclables Container;

1.41.3 Non-Recyclable Material placed in the Recyclables Container. Paper products and printing and writing paper may be considered acceptable and not considered Prohibited Container Contaminants if they are placed in the Recyclables Container.

1.42 “Recycling” or “Recycled”. Recycled means the process of Collecting, sorting, cleansing, treating and reconstituting Recyclable Materials that would otherwise become Commercial Garbage and returning them for use or reuse in the form of raw materials for new, used or reconstituted products which meet the quality standard necessary to be used in the marketplace. Recycling does not include transformation as defined in Public Resources Code Section 40201.

1.43 “Residential Service Unit”. Residential Service Unit means any single- family dwelling unit in the CITY.

1.44 “Risk Manager ”. Risk Manager is a CITY staff member or designee who provides management and advice regarding all insurance operations for the CITY.

ITEM 9.2.

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1.45 “Roll-Off Container”. Roll-Off Container means a metal container with a capacity of ten (10) or more cubic yards that is normally loaded onto a motor vehicle and transported to an appropriate facility.

Roll-Off Containers may also include compactors that are owned by a Customer or the FRANCHISEE.

1.46 “Service Acknowledgement”. Service Acknowledgement means a written form provided by the FRANCHISEE and completed by the Customer as part of the sales transaction for Temporary Services denoting whether the material being collected is from a Covered Project and acknowledgement of responsibility to recycle the material to the maximum extent feasible.

1.47 “Solid Waste”. Solid Waste means all putrescible and non-putrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, Construction and Demolition Debris, discarded home and industrial appliances, dewatered, treated or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semi -solid wastes, and other discarded solid and semi -solid wastes. Solid Waste does not include any Hazardous Material, including any hazardous waste or low -level radioactive waste regulated under Chapter 7.6 (commencing with Section 25800) of Division 20 of the Health and Safety Code, or medical waste. Solid Waste includes Recyclable Materials and Organic Recyclable Materials that are set out for separate Collection for the purposes of Recycling or Organics Recycling, and that are not landfilled.

1.48 “Source Separate” or “Source Separated”. Source Separated means the process of removing Recyclable Materials or Organic Recyclable Materials from Garbage for the purpose of Recycling or Organics Recycling, done by the Customer.

1.49 “Temporary Debris”. Temporary Debris means used or discarded materials resulting from construction, remodeling, repair, demolition, or cleanup operations on any type of structure or property.

May include commingled Green Materials, Recyclable Materials and non- recyclable C&D Debris.

Temporary Debris is not routine, weekly Solid Waste or materials requiring On-Call Service generated by the standard operation of a business or residence.

1.50 “Temporary Service”. Temporary Service includes subcategories of Temporary Roll -Off Service and Temporary Cart and Bin Service and means Collection using Containers provided to a Customer on an as -needed basis for the temporary Collection of Solid Waste in conjunction with construction, demolition, clean up, or other time- limited project. Temporary Service is not ongoing, weekly collection of routine Solid Waste or On-Call Service. Temporary Service is provided by a person or company that holds a valid Non-Exclusive Commercial Collection Services or Temporary Service Agreement with the CITY for the delivery of those materials to a processing or disposal facility.

1.50.1 “Temporary Roll-Off Service”. Temporary Roll-Off Service means Collection of Roll-Off Containers for the purpose of Collecting Temporary Debris.

ITEM 9.2.

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1.50.2 “Temporary Cart and Bin Service”. Temporary Cart and Bin Service means Collection of Carts and Bins from Businesses and Multi-Family Residential Properties for the purpose of Collecting Temporary Debris.

1.51 “Transfer Station”. Transfer Station means a facility approved by the CITY that has obtained and maintains for during the term of the Agreement valid permit(s) to accept, process or consolidate Solid Waste and such other materials as may be delivered by FRANCHISEE under the terms of this Agreement for delivery to another facility for further processing or disposal . Transfer Stations are included as a City-Approved Disposal or Transfer Facility

1.52 “White Goods”. Inoperative and discarded refrigerators, ranges, water heaters, freezers, and other similar household appliances.

Article 2. Grant of Non-Exclusive Franchise.

CITY hereby grants to FRANCHISEE a Franchise for Temporary Service authorizing FRANCHISEE to engage in the business of Collecting, transporting, processing, and disposing of Temporary Debris kept, accumulated or generated in CITY and to use the public streets and rights of way for such purpose.

Article 3. Acceptance of Franchise.

FRANCHISEE hereby accepts the Franchise on the terms and conditions set forth in this Agreement, Chapters 6.20 (Solid Waste Management), 6.21 (Business and Multifamily Recycling and Organics Recycling), and 16.92 (Construction and Demolition (C&D) Debris) of the Rancho Cordova Municipal Code, and all related ordinances and resolutions. Execution of this Agreement shall not constitute the notification required by Public Resources Code Section 49520.

Article 4. Term of Franchise.

4.01 Subject to Article 26 of this Agreement, the term of the Franchise granted to FRANCHISEE shall be from January 1, 2026 through December 31, 2026. The effective date of this Agreement shall be January 1, 2026.

4.02 This Agreement shall renew automatically on each anniversary of the effective date for a one (1) year term unless cancelled in writing by either party no later than ninety (90) days written notice prior to the next renewal date.

4.03 In the event the Agreement proceeds via an automatic renewal, either CITY or FRANCHISEE may give notice of a desire to negotiate material changes to this Agreement no later than one hundred eighty (180) days prior to the end of the term of this Agreement, and the parties agree to negotiate in good faith regarding such proposed changes.

ITEM 9.2.

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4.04 In the event the Agreement proceeds via an automatic renewal, FRANCHISEE shall provide CITY with updated information identifying all administrative changes since the submission of the initial application or the last application update no later than ninety (90) days prior to the end of the term of this Agreement, including but not limited to change in ownership, contact, address, insurance and other information that does not materially alter the structure of the Agreement.

Article 5. Conditions for Effectiveness.

The effectiveness of this Agreement is subject to FRANCHISEE's satisfaction of each and all of the conditions set forth below, each of which may be waived in whole or in part by CITY. Any such waiver must be in writing.

5.01 Absence of Litigation. There is no litigation pending on the effective date in any court challenging the award or execution of this Agreement or seeking to restrain or enjoin its performance.

5.02 Furnishing of Insurance. FRANCHISEE has furnished evidence of the Insurance required by Article 15 of this Agreement.

5.03 Active Business License. If FRANCHISEE has facility(ies) within the CITY, FRANCHISEE shall obtain, provide, and maintain a City of Rancho Cordova business license throughout the term of the Agreement..

Article 6. Limitations on Scope of Franchise.

6.01 Under the terms of this Franchise, FRANCHISEE has the authority to only to provide Temporary Service to all generators.

6.02 FRANCHISEE may not engage in Collection of Commercial Solid Waste from Businesses and Multi Family Residential properties covered under the Non -Exclusive Commercial Collection Agreement contracts.

6.03 FRANCHISEE may not engage in Collection of materials covered under the residential Collection Service and Street Sweeping Service Agreement between the CITY and Atlas Disposal, or any successor contract entered into by the CITY for such service.

6.04 FRANCHISEE may not collect Hazardous Waste, regardless of its source.

Article 7. Franchise Fees.

7.01 During the term of the Franchise, FRANCHISEE shall pay to CITY franchise fees for the privilege of using CITY streets and public rights -of-way to engage in the business of providing Temporary Services in CITY.

ITEM 9.2.

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7.02 Franchise fees shall be a percentage of all Gross Revenues, less franchise fees received from Customers, including those Customers that are state or federal agencies or entities located within CITY, for the provision Temporary Services. The franchise fee shall be calculated based on Gross Revenues prior to FRANCHISEE imposing the franchise fee on its Customers.

7.03 The franchise fee percentage shall be eight percent (8%) or such other amount applicable to Commercial Franchises that may be adopted at any time during the term of this Agreement by a resolution of the City Council, or by the City Manager if the City Council has delegated such authority to the City Manager by resolution.

7.04 In the event the franchise fee or any other CITY fee is determined by a court to be excessive, invalid or unenforceable, then: (i) FRANCHISEE shall not be obligated to remit the future portion of the franchise fee or CITY fee deemed excessive, invalid, or unenforceable to the CITY; (ii) to the extent the Customers are entitled to a reimbursement of any excessive, invalid or unenforceable franchise fee or CITY fees, and CITY is required to reimburse FRANCHISEE in the amount of the franchise fee or CITY fees previously remitted to CITY that have been deemed excessive, invalid or unenforceable, thereafter, FRANCHISEE shall directly reimburse all Customers entitled to reimbursement in the amount attributable to each Customer account. In no event shall FRANCHISEE retain any portion of the fees reimbursed by CITY; (iii) to the extent the Customers are entitled to a reimbursement of any excessive, invalid or unenforceable franchise fee or CITY fees, and CITY is required by a court to directly reimburse Customers, FRANCHISEE shall assist CITY in identifying all Customers entitled to a reimbursement, quantifying the reimbursement amount attributable to each Customer account, and obtaining and providing to CITY any other information needed to satisfy the obligations imposed by a court; and (iv) CITY and FRANCHISEE will, within thirty (30) days following such court decision meet and confer to negotiate in good faith and using reasonable efforts to attempt to agree on modifications to the Agreement.

Article 8. Franchise Fee Payment.

8.01 Franchise fees shall be payable on a monthly basis. Payment to the CITY shall be due on the twentieth (20th) day of the month following the month the Gross Revenues are collected ( e.g., due February 20 for the month of January). Each payment shall be calculated in accordance with the provisions of this Agreement and the Rancho Cordova Municipal Code.

8.02 The franchise fee shall be paid to the Contract Administrator at the address set forth in Section 8.04 of this Agreement.

8.03 No statement filed under this Section shall be conclusive as to the matters set forth in such statement, nor shall the filing of such statement preclude CITY from collecting by appropriate action the sum that is actually due and payable.

8.04 FRANCHISEE shall pay all required franchise fees to:

City of Rancho Cordova
ITEM 9.2.

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CONTRACT NO. 2025-[CONTRACT_NUMBER]

Attn: Solid Waste Franchise Contract Administrator
3303 Luyung Dr.

Rancho Cordova, CA 95742
Franchisee shall remit a copy of the gross revenue form to the Contract Administrator by email at [email protected] or in an alternative digital manner, as may so be instructed by the Contract Administrator in writing during the term of the Agreement.

8.05 If FRANCHISEE remits franchise fees by personal delivery to CITY, such franchise fees shall be deemed timely paid only if delivered on or before 5:00 p.m. on the due date. If FRANCHISEE remits franchise fees by mail or other delivery service, such franchise fees shall be deemed timely only if:
(1) the envelope containing the franchise fee payment bears a postmark or receipt showing that the payment was mailed or sent on or before the due date; or (2) FRANCHISEE submits proof satisfactory to CITY’s Contract Administrator that the franchise fee payment was in fact deposited in the mail or sent on or before said due date. An electronic remittance of the gross revenue form shall be delivered by email on or before 5:00 p.m. on the due date.

8.06 In the event FRANCHISEE believes that it has paid franchise fees in excess of the fees due to CITY, FRANCHISEE may submit a request for refund to the Contract Administrator on a form provided by the Contract Administrator. If proof of overpayment is satisfactory to the Contract Administrator, the Contract Administrator shall refund to FRANCHISEE any overpayment. FRANCHISEE shall not apply any overpayment as a credit against any franchise fees or other amounts payable to CITY unless specifically authorized by the Contract Administrator in writing.

Article 9. Approval of Facilities

9.01 All facilities are approved through the Agreement application and associated Agreement approval, as well as subsequent application updates provided during the Agreement renewal process.

9.01.1 City-Approved C&D Sorting Facilities are a discrete list of facilities certified by the County of Sacramento that have been deemed to achieve sufficient diversion to meet the requirements for Covered Projects.

9.01.2 City-Approved Material Processing Facilities are a list of facilities pre- approved by the CITY prior to delivery of materials to the facility. The CITY requires that all facilities utilized by FRANCHISEE hold active permits and licenses for the designated processing and disposal activity.

9.01.3 City-Approved Disposal Facilities are a list of facilities pre- approved by the CITY prior to delivery of materials to the facility. The CITY requires that all facilities utilized by FRANCHISEE hold active permits and licenses for the designated disposal activity.

ITEM 9.2.

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9.02 In the event FRANCHISEE desires to utilize a facility that is not listed in Exhibit 1, the following process shall be employed

9.02.1 Except as outlined in Section 9. 02.4 below, provide written notice to the Contract Administrator requesting to add a facility.

9.02.2 Written notice shall include the facility name, address, material(s) accepted, SWIS number and the reason why the facility is being requested. Facilities must hold appropriate permits to process/dispose of the materials.

9.02.3 Contract Administrator will respond within five (5) business days of receipt of the request with a confirmation of the facility’s acceptability or disqualification if the facilities do not hold the proper permits. Facilities holding all applicable permits and meeting regulations will not unreasonably be withheld for approval by the CITY.

9.02.4 In case of emergency, where advance notice requesting to add a facility is impractical, FRANCHISEE must provide notice to Contract Administrator as soon as possible. An emergency is defined as circumstances that preclude an approved facility from accepting mater ials from FRANCHISEE; unfavorable terms or pricing are not applicable. Emergency facility use is by definition temporary in nature. Continued use of an emergency facility shall follow the process outlined in 9.02 within five (5) business days.

Article 10. Transportation, Processing, Diversion.

10.01 FRANCHISE shall obtain a Service Acknowledgement from all Temporary Service Customers so that all parties are aware of required material processing and diversion based on the specific project, as well as all paperwork and supporting documentation that may be required of the material generated by the project.

10.02 FRANCHISEE shall deliver all Construction and Demolition Debris loads that are considered a C overed Project to a City -Approved C&D Sorting Facility where the material shall be processed for maximum recovery, with a minimum diversion rate of 65% based on the facility's diversion rate. All weight tickets issued by City -Approved C&D Sorting Facility(ies) for mixed Construction and Demolition Debris loads shall be stamped "Sacramento County Certified C&D Sorting Facility" to indicate that the materials were sorted in a manner to achieve maximum recovery of Recyclable Materials , with a minimum diversion rate of 65%. FRANCHISEE must receive written approval from CITY prior to delivering Construction and Demolition Debris from Covered projects to a facility other than t hose listed as a City - Approved C&D Facility in Exhibit 1.

10.03 FRANCHISEE shall deliver all Construction and Demolition Debris loads that are not considered a Covered Project to a City -Approved C&D Sorting Facility where the material shall be processed for maximum recovery. A "Sacramento County Certified C&D Sorting Facility" stamp is not ITEM 9.2.

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required for non- Covered projects , but the FRANCHISEE must travel over the scale(s) and follow the appropriate delivery procedures per the facility to ensure that the material is processed for maximum recovery.

10.04 FRANCHISEE shall Collect, transport, and deliver all Source-Separated Construction and Demolition Debris, such as clean metal or wood, to an appropriate City-Approved C&D Sorting Facility , City-Approved Processing Facility or permitted end-user recycler of Source-Separated material.

10.05 FRANCHISEE shall Collect, transport, and deliver all Organic Recyclable Materials and Recyclable Materials set out for Collection in Containers identified as containing, respectively, Organic Recyclable Materials or Recyclable Materials to a City -Approved Processing Facility listed in Exhibit 1 for its respective recycling stream.

10.06 For any Temporary Debris loads FRANCHISEE Collects, transports, and delivers directly to a City -Approved Disposal or Transfer Facility for disposal to Landfill FRANCHISEE document with supporting evidence deemed appropriate by FRANCHISEE that less than 30% of the load is deemed recoverable via a visual assessment.. FRANCHISEE shall not dispose of such material by depositing it on any land, whether public or private. FRANCHISEE shall not dispose of such material in any river, stream or other waterway, or in any sanitary sewer or storm drainage system.

10.06.1 FRANCHISEE shall submit copies of documentation as set forth in Section 13.02.2.

10.06.2 Should FRANCHISEE deliver loads to a disposal facility that are determined to have met or exceeded the 30% recovery threshold by CITY, FRANCHISEE may be subject to Administrative Charges as defined in Exhibit 2.

10.07 FRANCHISEE shall be required to divert from disposal a minimum of sixty -five percent (65%) of all Temporary Debris Collected by FRANCHISEE per quarter in aggregate.

10.07.1 Should FRANCHISEE fail to achieve 65% diversion in aggregate during the quarterly reporting period, CITY will revoke applicability of Section 10.06 and FRANCHISEE will be required to transport all Collected Temporary Debris to a City -Approved C&D Facility for the subsequent quarterly reporting period. Additionally, Administrative Charges per Article 24 may apply.

10.08 Diversion Requirements Calculation. For purposes of determining if FRANCHISEE achieves FRANCHISEE’S diversion requirements for Temporary Debris, the Parties agree the diversion rate will be calculated using the following formula: “the tons of Temporary Debris Collected by FRANCHISEE from the provision of Temporary Roll-Off Services, multiplied by the reported recovery rate of the City-Approved Processing Facilit(ies) utilized by the FRANCHISEE for each individual load delivered to the City -Approved Processing Facilit(ies).” Diversion rate shall be calculated in aggregate over the ITEM 9.2.

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quarter, as demonstrated in the example table below . Failure to achieve diversion may result in an Administrative Charge as defined in Exhibit 2.

Date Monthly
Report Weight Ticket Weight (tons) Facility Diversion
Rate
Diverted
Tonnage
1/3/2026 January 123 6.8 Florin Perkins 72.68% 4.942
2/14/2026 February 124 8.5 L&D 80.23% 6.820
2/21/2026 February 125 7.8 Sierra 83.12% 6.483
3/3/2026 March 126 4.8 Kiefer Landfill 0.00% 0.000
Q1 Aggregate 27.9 65.39% 18.245
4/13/2026 April 127 11.1 Florin Perkins 72.68% 8.067
4/14/2026 April 128 9.8 Florin Perkins 72.68% 7.123
5/13/2026 May 129 8.7 L&D 80.23% 6.980
6/3/2026 June 130 7.6 Sierra 83.12% 6.317
6/20/2026 June 131 6.5 Florin Perkins 72.68% 4.724
Q2 Aggregate 43.7 76.00% 33.211
7/5/2026 July 132 8.9 L&D 80.23% 7.140
9/4/2026 September 133 9.8 Sierra 83.12% 8.146
9/5/2026 September 134 9.8 Sierra 83.12% 8.146
Q3 Aggregate 28.5 82.22% 23.432
10/5/2026 October 135 7.1 Kiefer Landfill 0.00% 0.000
10/31/2026 October 136 7.6 Florin Perkins 72.68% 5.524
11/4/2026 November 137 8.5 L&D 80.23% 6.820
Q4 Aggregate 23.2 53.20% 12.343
* In the above example, FRANCHISEE fails to achieve required diversion in the Q4 aggregate reporting, and would be required to process all Temporary Debris in a City-Approved C&D Facility for the subsequent 3 months (Q1 of following calendar year).

10.09 FRANCHISEE shall make a good faith effort to obtain and subsequently report on the diversion rate as communicated to FRANCHISEE by City-Approved Processing Facilit(ies) for every facility used during each reporting month. Diversion for Source Separate materials will be assumed to be one hundred percent (100%).

10.10 FRANCHISEE shall not receive diversion credit for Designated Organic Recyclable Materials that are delivered to a City-Approved Processing Facility or other facility for disposal if that facility uses such material for alternative daily cover and, as of that date, FRANCHISEE shall not report Designated Organic Recyclable Materials as diversion on its quarterly reports if such material is delivered to a City - Approved Processing Facility or other facility for disposal if that facility uses such material for a lternative daily cover.

ITEM 9.2.

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10.11 Brokerage Services . A FRANCHISEE in possession of a Non-E xclusive T emporary Service Franchise Agreement may provide Brokerage Services to arrange regular Commercial Collection services for Customers provided that the following conditions are met:

10.11.1 FRANCHISEE must arrange for Collection services to be performed by a hauler in possession of a Non-Exclusive Commercial Service Franchise Agreement with the CITY. All activities associated with performing Commercial Collection Services must be performed by the Non- Exclusive Commercial Service Franchise Agreement holder.

10.11.2 FRANCHISEE may not provide any regular Commercial Collection Services to brokered Customer s with the exception of the delivery and removal of appropriate Containers necessary for service.

10.11.3 FRANCHISEE must provide a list of Customers for which Broker age Services are provided as detailed in Section 13.04.

Article 11. Ownership of Temporary Service Solid Waste.

CITY does not gain any ownership or right to possess Solid Waste Collected by FRANCHISEE pursuant to this Agreement. Subject to the provisions of this Agreement, FRANCHISEE shall have the right to retain any benefit resulting from its right to retain, recycle, process, dispose of, or use the Solid Waste that it Collects pursuant to the terms of this Agreement.

Article 12. Container Placement.

12.01 FRANCHISEE shall plan as a matter of standard operating procedures to place Containers on the Customer’s private property for all Temporary Service. Care should be taken to prevent damage to property, including flowers, shrubs, and other plantings. Any damage caused by Contractor to Customer property shall be repaired or replaced promptly.

12.02 In rare cases, FRANCHISEE may need to place Containers in the CITY ’s right-of-way, in which case FRANCHISEE must place Containers in strict adherence with CITY’s right-of-way requirements, including obtaining an encroachment permit for any Temporary Service in which a Container is placed in the CITY’s right -of-way. FRANCHISEE will exercise reasonable care in inspecting for and immediately repairing and making good any damage to any portion of the right -of-way which occurs as a result of the maintenance of the encroachment, including any and all damage to the roadway which would not have occurred had Container placement not caused such encroachment.

Article 13. Reporting Requirements.

13.01 Monthly Reports. Franchise Fee Reports shall be filed monthly with the Contract Administrator. Each payment shall be accompanied by documentation verified by the person making the payment, or a duly authorized representative of that person, showing the calculation of the franchise fee ITEM 9.2.

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payable in such detail and disposition as the Contract Administrator may require and such other information as the Contract Administrator may require to determine the amount due.

13.01.1 If no revenue subject to the franchise fee is collected during a given month, an acknowledgment in a format approved by the Contract Administrator must be submitted.

13.02 Quarterly Reports. All reports to be submitted in a form and format approved by the Contract Administrator , including electronic data submission. FRANCHISEE shall file with the Contract Administrator the following quarterly reports:

13.02.1 Quarterly Tonnage and Diversion Report. A report that contains the quantities of Garbage, Recyclable Materials , Organic Recyclable Materials, and Construction and Demolition Material Collected, transported, processed, diverted, and/or disposed from Temporary Services. Such report shall be in such form and detail as required by the Contract Administrator .

Specifically, the report shall contain, but not be limited to, the following information:

13.02.1.1 Garbage, Recyclable Materials , Organic Recyclable Materials , and Construction and Demolition tonnage Collected and removed, during the previous quarter, within the CITY by FRANCHISEE;

13.02.1.2 T he City-Approved Processing F acility(ies), City-Approved C&D Sorting Facility, or other facility as noted in Article 9 and Exhibit 1 where such Garbage, Recyclable Materials, Organic Recyclable Materials and Construction and Demolition materials were delivered for each load of material delivered to said facilities; and

13.02.2 FRANCHISEE shall make a good faith effort to obtain and report the diversion rate achieved by each of the facilities identified in Section 13.02.1.1. In circumstances where FRANCHISEE is unable to obtain a diversion rate for a facility, that information will be noted on the report. FRANCHISEE may utilize quarterly diversion rates from a facility. Acknowledgement and Statement of Disposal Report. A report that lists the following forms received during the quarter per Customer:

13.02.2.1 Covered Project Service Acknowledgement s. A listing of all Customers who notated on their Acknowledgement form that the material is coming from a Covered Project.

13.02.2.2 Statement of Disposal . A listing of all open -top Roll -Off Customers and associated tonnage for whom the material was assessed as less than 30% divertible and therefore documented a statement of disposal, including any supporting evidence deemed appropriate by FRANCHISEE. Documentation shall be retained for a minimum of six (6) months and made available upon request by the Contract Administrator.

ITEM 9.2.

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13.03 Vehicle Weight Reporting. The report must be an export of all scale tickets for all vehicles operating in the CITY. The report shall include the gross weights of all vehicles recorded by the scales at the facilities where FRANCHISEE delivered Collected Solid Waste. Tare weights and GVWR for all vehicles must also be included in this report. Report to be submitted in a form and format approved by the Contract Administrator, including electronic data submission.

13.04 Brokerage Service Reporting. The report must be a comprehensive list of all Customer for whom Brokerage Services are provided. The report shall list, the Customer name, address, and the name of the Non-Exclusive Commercial Collection Service Franchise Hauler providing regular Commercial Collection services. Report to be submitted in a form and format approved by the Contract Administrator , including electronic data submission.

13.05 The first quarterly reports shall be due no later than 5:00 p.m. on April 20, 2026, and shall cover the period of January 1, 2026 to March 31, 2026. Thereafter, quarterly reports shall be due no later than 5:00 p.m. on each subsequent July 20 , October 20, January 20, and April 20 during the term of this Agreement. Each report shall cover the immediately preceding calendar year quarter.

13.05.1 Quarterly reports shall be filed with the Contract Administrator in the manner and form approved by CITY. FRANCHISEE shall maintain quarterly records, on forms approved by the Contract Administrator, containing such information as may be required by the Contract Administrator pertaining to the number and types of accounts served by FRANCHISEE under the terms of this Agreement. This information shall be provided to Contract Administrator upon request.

13.06 Delinquent Reports. Failure to submit Reports by the due date may result in assessment of Administrative Charges as specified in Exhibit 2.

13.07 Confidential or Proprietary Information. To the extent permitted by applicable law, including the California Public Records Act, any reports, plans, and information required by this Agreement stamped confidential or proprietary, shall be deemed confidential and shall not be subject to public disclosure. In the event that CITY becomes legally compelled by deposition, interrogatory, request for documents, subpoena, civil investigative demand, California Public Records Act request, or U.S. Patriot Act or similar act or process to disclose any Confidential Information, to the extent allowed by law, the CITY shall give FRANCHISEE prompt prior written notice of such requirements so that FRANCHISEE may seek a protective order or other appropriate remedy at FRANCHISEE’S sole risk and expense.

13.08 California Public Records Act. The parties understand that the CITY is a public entity that must comply with the California Public Records Act.

13.09 Response Times for CITY Requests. Upon receiving a data request or information request from CITY that is not covered by other timeline requirements articulated in this document, and provided that the request from CITY shall not take more than eight (8) hours of FRANCHISEE staff time to complete, ITEM 9.2.

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FRANCHISEE shall compile the requested information and send back a complete response within five (5) Business Days of receipt of the request.

Article 14. Inspection Authority.

14.01 FRANCHISEE shall at all times maintain accurate and complete accounts of all revenues and income arising out of its operations under this Franchise Agreement and the information needed to complete the forms and reports required by Article 13 of this Agreement. FRANCHISEE’S books, accounts and records reasonably necessary for the enforcement of this Franchise Agreement shall be made available for inspection, examination and audit during normal business hours by authorized officers, employees and agents of CITY. CITY shall give FRANCHISEE written notice at least three (3) business days prior to any inspection, audit or examination of these records.

14.02 Where the Contract Administrator determines that an audit is necessary to verify the accuracy, or completeness of reported franchise fees, tonnages or diversion data, FRANCHISEE shall be responsible for reimbursing CITY the costs of performing such audit costs, including any CITY staff t ime, consultant services, and City Attorney services, to perform such audit.

14.03 FRANCHISEE shall be responsible for reimbursing CITY’s audit costs, including any CITY staff time or consultant services and City Attorney services, to perform detailed follow-up audits where CITY staff determines that documentation of franchise fees, tonnage, diversion or other data, as reported by FRANCHISEE, is inadequate, incomplete or inaccurate. Where necessary, CITY staff will retain the services of an independent consultant to verify performance and conduct any necessary diversion audits.

Article 15. Insurance Requirements.

FRANCHISEE shall obtain and shall maintain throughout the term of this Agreement, at FRANCHISEE's sole cost and expense, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of work pursuant to this Agreement by FRANCHISEE, its agents, representatives, employees or FRANCHISEEs.

15.01 Minimum Scope and Limits of Insurance. FRANCHISEE shall maintain at least the following minimum insurance coverage:

15.01.1 Comprehensive General Liability: Coverage limits as required in Table

15.1 below. Combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limit.

15.01.2 Automobile Liability: Coverage limits as required in Table 15 .1 below.

Combined single limit per accident for bodily injury and property damage. Coverage shall include hired autos and non-owned autos.

ITEM 9.2.

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15.01.3 Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the California Labor Code and Employers Liability limits per accident as required in Table 15.1 below.

15.01.4 Pollution Liability Insurance: Per occurrence, coverage limits shown below in Table 15 .1 without any exclusion for bodily injury or property damage arising out of the actual, alleged or threatened discharge, dispersal, release or escape of any Hazardous Material, Solid Waste, or other pollutant.

Table 15.1
Minimum Insurance Limits
Contract Reference Effective January 1, 2026
Comprehensive
General Liability 15.01.1 $3,000,000
Automobile Liability 15.01.2 $5,000,000
Workers Compensation and
Employers Liability 15.01.3 $1,000,000
Pollution Liability 15.01.4 $3,000,000

15.02 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by CITY. FRANCHISEE shall be responsible for payment of all deductibles or self-insured retentions.

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

15.04 General Liability and Automobile Liability Coverage. CITY, its officers, employees, agents contractors and volunteers are to be covered as an additional insured as respects: liability arising out of activities performed by, or on behalf of FRANCHISEE; products and completed operations of FRANCHISEE; premises owned, leased or used by FRANCHISEE; and automobiles owned, leased, hired or borrowed by FRANCHISEE. The coverage shall contain no special limitations on the scope of protection afforded to CITY, its officers, employees, agents, contractors and volunteers.

15.04.1 FRANCHISEE'S insurance coverage shall be primary insurance as respects: CITY, its officers, employees, agents, contractors and volunteers. Any insurance or self - insurance maintained by CITY, its officers, employees, agents, contractors or volunteers shall be in excess of FRANCHISEE'S insurance and shall not contribute with it.

15.04.2 Any failure to comply with reporting provisions of the policies shall not affect coverage provided to CITY, its officers, employees, agents, contractors or volunteers.

ITEM 9.2.

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15.04.3 Coverage shall state that FRANCHISEE'S insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

15.05 All Coverage. Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled, or reduced below the minimum limits described above except after thirty (30) days' prior written notice has been given to CITY. FRANCHISEE shall maintain all insurance coverages and limits in place at all times and provide CITY with evidence of each policy's renewal ten (10) days in advance of its anniversary date.

FRANCHISEE is required by this Agreement to immediately notify CITY if they receive a communication from their insurance carrier or agent that any required insurance is to be canceled, non- renewed, reduced in scope or limits or otherwise materially changed. FRANCHISEE shall provide evidence that such cancelled or nonrenewed or otherwise materially changed insurance has been replaced or its cancellation notice withdrawn without any interruption in coverage, scope or limits. Failure to maintain required insurance In force shall be considered a material breach of the Agreement.

15.06 Placement of Insurance. Insurance shall be placed with insurers acceptable to CITY’s Risk Manager. FRANCHISEE must place insurance with a current A.M. Best rating of no less than A: VII. CITY’s Risk Manager may waive or alter this requirement in writing, or accept self-insurance in lieu of any required policy of insurance if, in the opinion of the Risk Manager, the interests of CITY and the general public are adequately protected.

15.07 Proof of Insurance. FRANCHISEE shall furnish CITY with certificates of insurance and with original endorsements affecting coverage required by this Agreement. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. Proof of insurance shall be sent to [email protected] and [email protected] unless otherwise notified in writing by the Contract Administrator.

15.08 Acknowledgment. FRANCHISEE acknowledges that the Temporary Service Franchise granted to FRANCHISEE will not become effective, and FRANCHISEE will have no authority to perform Temporary Services in the CITY, unless FRANCHISEE provides satisfactory proof of insurance prior to beginning operations as a FRANCHISEE.

15.09 Modification of Insurance Requirements. CITY shall retain the right at any time to review the coverage, form and amount of the insurance required hereby. If, in the opinion of the CITY’s Risk Manager, the insurance provisions in this Agreement do not provide adequate protection for CITY and for members of the public, CITY may require FRANCHISEE to obtain insurance sufficient in coverage, form and amount to provide adequate protection. CITY’s requirements shall be reasonable but shall be imposed to assure protection from and against the kind and extent of risks that exist at the time a change in insurance is required. CITY’s Risk Manger may modify these insurance requirements only upon approval of the City Council.

ITEM 9.2.

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Article 16. Indemnity.

16.01 FRANCHISEE agrees to defend, with counsel agreed upon by both parties, indemnify, and hold harmless CITY and its agents, officers, contractors, servants, public officials, volunteers, and employees from and against any and all claims asserted, costs, the cost of remediation and cost recoveries pursuant to the Comprehensive Environmental Response, Compensation and Liability Act , losses and damages, liabilities, expenditures or causes of action of any kind (including negligent, reckless, willful or intentional acts or omissions of the FRANCHISEE, its employees, agents, subcontractors, supplier, or any person or organization directly or indirectly employed by any of them to perform or furnish any services or anyone for whose acts any of them may be liable), or injuries to any person or property, including injury to CITY employees, agents or officers which arise from, or are connected with, or are caused or claim to be caused by acts or omissions of FRANCHISEE, or their agents, officers or employees, in the per formance of the non- exclusive Franchise or this Agreement, or in performing the work or services therein, and all costs and expenses of investigating and defending against same; provided, however, that FRANCHISEE'S duty to indemnify and hold harmless shall not include any claims or liability arising from the established active negligence, sole negligence, or sole willful misconduct of CITY, its agents, officers, servants and employees.

16.02 Hazardous Material Indemnification. FRANCHISEE agrees to defend, with counsel selected by CITY , indemnify, and hold harmless CITY and its agents, officers, contractors, servants, officers, volunteers, and employees from and against all claims, damages (including but not limited to special, consequential, natural resources and punitive damages), injuries, costs (including, without limit, any and all response, remediation, removal, closure, and post -closure costs), losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties, and expenses (including without limit attorneys’ and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity providing the enforcement action is successful in establishing indemnification), (collectively, “Damages”) of any kind whatsoever paid, incurred or suffered by, or asserted against, indemnities arising from or attributable to the acts or omissions of FRANCHISEE, its officers, directors, employees, companies, or agents, wheth er or not negligent or otherwise culpable, in connection with or related to the performance of this contract, including without limit damages arising from or attributable to any operations, repair, clean- up or detoxification, response or removal action, or preparation and implementation of any removal, remedial, response, closure, post -closure or other plan (regardless of whether undertaken due to governmental action) concerning any Hazardous Material, and/or Household Hazardous Waste (collectively, “Waste” ) at any places where FRANCHISEE transfers, transports, processes, stores or disposes of Solid Waste or other waste collected under this contract, irrespective of whether the concentrations of any Waste are material, whether the concentrations exceed state or federal maximum contaminant or action levels, or whether any government agency has issued a clean-up or other order. The indemnity afforded indemnitees shall only be limited to exclude coverage for intentional wrongful acts and active negligence of indemnitees.

FRANCHISEE at its own expense, agrees to defend, with counsel of the CITY’s choosing, any claims for Damages asserted against CITY that would, in whole or in part, be covered by the indemnity obligations ITEM 9.2.

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irrespective of whether such claims have merit. FRANCHISEE’s obligation under this indemnification provision will survive any termination of this Agreement.

16.03 The foregoing indemnity is intended to operate as an agreement pursuant to §107(e) of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. §9607(e), and California Health and Safety Code §25364, to defend, protect, hold harmless, and indemnify CITY from liability. Nothing in this provision shall prevent FRANCHISEE from seeking indemnification or contribution from persons or entities other than indemnitees, for any liabilities incurred by the FRANCHISEE, or the indemnitees.

16.04 Indemnification for Failure to Meet AB 939 Goals. FRANCHISEE agrees to protect and defend CITY, with counsel selected by FRANCHISEE and CITY, to pay all attorneys’ fees, and to indemnify and hold CITY harmless from and against all fines or penalties imposed by CalRecycle if the diversion goals specified in the California Public Resources Code Section 41780 as of the date hereof and hereafter throughout are not met by CITY with respect to the Materials Collected by FRANCHISEE and if the lack in meeting such goals are attributable to the failure of the FRANCHISEE to implement and operate diversion plans and/or programs or related activities required by this Agreement. Such indemnification of CITY by FRANCHISEE shall be proportionate to FRANCHISEE’S degree of fault for the penalty or fine imposed, as required under Public Resources Code § 40059.1.

Article 17. Equipment.

17.01 Any and all Containers provided to Customers by FRANCHISEE for storage, collection or transportation of Solid Waste meet the requirements of the Rancho Cordova Municipal Code and applicable California laws.

17.02 Any and all vehicles used by FRANCHISEE to perform Temporary Services shall meet the requirements of the Rancho Cordova Municipal Code and applicable California laws.

17.03 FRANCHISEE shall not operate Collection vehicles, nor perform Collection services on properties adjacent to residential uses during the hours of 8:00 PM through 6:00 AM, unless written authorization is given to FRANCHISEE from CITY. CITY reserves the right to revoke such written authorization at any time. Should a dispute arise as to the time service was provided, FRANCHISEE must provide documentation of service to the satisfaction of the CITY.

17.04 All collection equipment and vehicles used by FRANCHISEE shall have appropriate safety markings including, but not limited to, highway lighting, flashing and warning lights, clearance lights, and warning flags. All such safety markings shall be subject to the approval of the CITY and shall be in accordance with the requirements of the California Vehicle Code, as may be amended from time to time.

17.05 Each FRANCHISEE shall maintain collection equipment and vehicles in a clean condition and in good repair at all times, to the satisfaction of CITY.

ITEM 9.2.

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17.06 FRANCHISEE shall ensure that all Collection vehicle loads are covered while in transit and shall not litter premises in the process of providing Temporary Services or while its vehicles are on the road.

FRANCHISEE shall transport all materials Collected under the terms of this Agreement in such a manner as to prevent the spilling or blowing of such materials from the FRANCHISEE'S vehicles. FRANCHISEE shall exercise all reasonable care and diligence in providing Temporary Services so as to prevent spilling or dropping of Solid Waste and shall immediately, at the time of occurrence, clean up such spilled or dropped materials.

17.07 FRANCHISEE may not use any Collection v ehicle in violation of weight limitations in Applicable Law, including any weight limitation placed on any public roadway or alley as adopted and posted by CITY. The FRANCHISEE may exceed the Collection Vehicle size limitation for a limited time due to extraordinary circumstances or conditions with the prior written consent of the Contract Administrator.

Article 18. Abandoned Containers.

18.01 If FRANCHISEE abandons any C ontainer used to provide Temporary Services, CITY, or its designated agent may remove the Container and/or dispose of the contents of the container.

18.02 If CITY or its designated agent removes a Container abandoned by FRANCHISEE and/or disposes of the contents of any Container abandoned by FRANCHISEE, CITY may charge FRANCHISEE for CITY’s costs incurred in such removal/disposal and for CITY’s costs of storage of the C ontainer.

FRANCHISEE shall reimburse CITY for such costs within ten (10) days of the date of CITY’s invoice for such costs.

18.03 For the purposes of this Section, “abandoned” includes:

18.03.1 FRANCHISEE’S failure to remove the C ontainer within the time period specified by the City Council upon termination of this Agreement;

18.03.2 FRANCHISEE’s failure to remove the C ontainer within a reasonable period after the expiration of this Agreement except in the case where FRANCHISEE has been granted an extension of the term of this Agreement or FRANCHISEE has been granted a subsequent Temporary Service Franchise authorizing FRANCHISEE to Collect and transport the type or types of Solid Waste for which the Container was used pursuant to this Agreement.

18.03.3 FRANCHISEE’S failure to dispose of the contents of the C ontainer within five (5) days after the Contract Administrator issues written notice to FRANCHISEE to dispose of the contents.

Article 19. FRANCHISEE Provided Containers.

19.01 General. FRANCHISEE shall equip and provide automatic lift containers, Carts, Bins or Roll-Off Containers for Temporary Service designed and constructed to be watertight and prevent the ITEM 9.2.

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leakage of liquids. Containers shall be sufficient to accommodate the quantity and type of Temporary Service to its Customers. Upon request from CITY or Customer, FRANCHISEE shall provide locks and/or other suitable features to prevent theft of such materials.

19.02 Container Painting and Cleaning. All Containers of any service type furnished by FRANCHISEE must be in compliance with all applicable color specifications as set forth by CalRecycle, where applicable. Containers should be free of dents and graffiti and painted as needed to maintain an orderly appearance throughout the Term of the Agreement . Containers may be subject to periodic, unscheduled inspections by CITY, and determination as to acceptable condition will be made by CITY.

19.03 Signage. FRANCHISEE shall place SB 1383- compliant signage approved by the CITY on all Containers. Approval will not be unreasonably withheld, and current signage may be used until the end of its useful life. Containers must be clearly labeled and at a minimum will include FRANCHISEE’s name, customer service number, and graphics or a list indicating acceptable and unacceptable materials to be placed in each Container type.

19.03.1 If containers are used for Source Separated materials (such as clean dirt, wood or carpet), signage shall prominently display the type of designated material for Source Separation.

Article 20. Vehicle Signage.

FRANCHISEE shall have permanently displayed in a prominent place on the exterior of each truck used in the Collection, removal or transportation of Solid Waste under this Agreement a sign which contains such information as is required by provisions of the California Code of Regulations, Title 14, Section 17344.

Article 21. Personnel.

21.01 Driver Qualifications. FRANCHISEE agrees that all drivers shall be trained and qualified in the operation of collection vehicles and must have in effect a valid license, of the appropriate class, issued by the California Department of Motor Vehicles.

21.02 Safety Training. FRANCHISEE shall provide suitable operational and safety training for all of its employees who use or operate vehicles or equipment for collection of Solid Waste or who are otherwise directly involved in such collection.

Article 22. Customer Service.

FRANCHISEE shall at all times maintain a central office where a representative of FRANCHISEE can be reached by telephone 8:00 a.m. through 5:00 p.m., Mondays through Fridays, legal holidays excepted. FRANCHISEE will provide an email address or other online service by which a Customer may contact FRANCHISEE during or outside of normal business hours.

All service inquiries and complaints will be directed to FRANCHISEE. Customer Service training shall include Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct ITEM 9.2.

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Collection staff to perform the work quietly. FRANCHISEE shall use its best efforts to ensure that all employees present a neat appearance and conduct themselves in a courteous manner. All service complaints will be handled by FRANCHISEE in a prompt and efficient manner.

In the event of an accident, damage to public/private property, or other noteworthy event involving the FRANCHISEE, the CITY must be notified in accordance with the Incident Protocol in Exhibit 3. This includes any significant incident that results in City or Customer property damage. Reportable examples include vehicle accidents, fires, fluid spills, city or customer property damage, etc. Issues with FRANCHISEE equipment that do not affect others need not be reported (i.e., if a vehicle breaks down during a route without spillage of any kind).

Article 23. Compliance with Law.

FRANCHISEE shall perform all Collection, transportation and disposal operations in accordance with applicable federal, state, and local law, including the Rancho Cordova Municipal Code, and in accordance with all regulations promulgated under such laws, and in accordance with the terms and conditions of this Agreement.

Article 24. Permits and Licenses.

FRANCHISEE shall obtain and maintain, at FRANCHISEE'S sole cost and expense, all permits and licenses applicable to FRANCHISEE'S operations under this Agreement required of FRANCHISEE by any governmental agency.

Article 25. Administrative Charges.

25.01 Quality performance by the FRANCHISEE is of primary importance. In acknowledgement of this, FRANCHISEE agrees to pay C ITY Administrative Charges and Penalties as detailed in Exhibit 2 should FRANCHISEE fail to meet its responsibilities under this Agreement.

25.02 Procedure for Review of Administrative Charges. The Contract Administrator may assess Administrative Charges as specified in Exhibit 2 pursuant to this Agreement monthly. At the end of each monthly during the Term of this Agreement, the Contract Administrator will issue a written notice to Contractor (“Notice of Assessment”) of the Administrative Charges assessed and the basis for each assessment.

25.02.1 The assessment will become final unless, within ten (10) calendar days of the date of the notice of assessment, FRANCHISEE provides a written request for a meeting with the City Manager to present evidence that the assessment should not be made.

25.02.2 The Contract Administrator will schedule a meeting between FRANCHISEE and the City Manager as soon as reasonably possible after timely receipt of Contractor’s request.

ITEM 9.2.

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25.02.3 The City Manager will review FRANCHISEE ’s evidence and render a decision sustaining or reversing the Administrative Charges as soon as reasonably possible after the meeting. Written notice of the decision will be provided to FRANCHISEE.

25.02.4 In the event FRANCHISEE does not submit a written request for a meeting within ten (10) calendar days of the date of the notice of a ssessment, the Contract Administrator’s determination will be final.

25.02.5 C ITY’s assessment or collection of Administrative Charges will not prevent CITY from exercising any other right or remedy, including the right to terminate this Agreement, for FRANCHISEE’s failure to perform the work and services in the manner set forth in this Agreement.

Article 26. Changes in Law.

CITY and FRANCHISEE understand and agree that the California Legislature has the authority to make comprehensive changes in Solid Waste management legislation and that these and other changes in law in the future which mandate certain actions or programs for counties or municipalities may require CITY to make changes or modifications in some of the terms, conditions or obligations under this Agreement. FRANCHISEE agrees that the terms and provisions of the Rancho Cordova Municipal Code, as it now exists or as it may be amended in the future, shall apply to all of the provisions of this Agreement and the Customers of FRANCHISEE located within the CITY.

Article 27. Default, Termination.

27.01 Default. Except for the occurrence of Force Majeure, in the event of any material failure or refusal of FRANCHISEE to comply with any obligation or duty imposed on FRANCHISEE under this Agreement or the Rancho Cordova Municipal Code, the Contract Administrator and FRANCHISEE shall meet and confer in good faith in an effort to agree on a resolution and cure of the breach. If the parties are unable to agree on the informal resolution or cure of the breach within ten (10) business days, the City Council shall have the right to terminate this Agreement if:

27.01.1 Following the ten (10) day meeting period described above, the Contract Administrator shall have given written notice to FRANCHISEE specifying that a particular default or defaults exists which will, unless corrected, constitute a material breach of this Agreement on the part of FRANCHISEE, and

27.01.2 FRANCHISEE fails to correct such default or fails to take reasonable steps to correct such default within thirty (30) days from the date of the notice given by the Contract Administrator under Section 27.01.1 above and FRANCHISEE thereafter fails to diligently continue to take reasonable steps to correct such default.

ITEM 9.2.

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27.02 The following events shall also constitute a material breach and default under this Agreement:

27.02.1 Misrepresentation. Any misrepresentation or disclosure made to CITY by FRANCHISEE in connection with or as an inducement to entering this Agreement or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time the representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement.

27.02.2 Fraud or Deceit. If FRANCHISEE practices, or attempts to practice, any fraud or deceit upon CITY.

27.02.3 Failure to Maintain Coverage. If FRANCHISEE fails to provide or maintain in full force and effect any of the insurance coverage as required by this Agreement.

27.02.4 Violations of Regulation. If FRANCHISEE violates any licensing, permits, orders or filing of any regulatory body having jurisdiction over FRANCHISEE which violation or non- compliance materially affects FRANCHISEE'S ability to perform under this Agreement, provided that FRANCHISEE may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Franchise shall be deemed to have occurred during the pendency of the contestation or appeal, to the extent FRANCHISEE is able to adequately perform during that period.

27.02.5 Acts or Omissions. Any other act or omission by FRANCHISEE which materially violates the terms, conditions, or requirements of this Agreement, Rancho Cordova Municipal Code, AB 939, as it may be amended from time to time, or any order, directive, rule, or regulation issued thereunder and which is not corrected or remedied within the time set in the written notice of the violation or, if FRANCHISEE cannot reasonably correct or remedy the breach within the time set forth in such notices, if FRANCHISEE should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter.

27.02.6 Termination of Service. In the case of a breach related to the above Sections 27.02.1 through 27.02.5, and the breach continues for more than thirty (30) calendar days after written notice from the Contract Administrator for the correction thereof, provided that where such breach cannot be cured within such thirty (30) day period, FRANCHISEE shall not be in default of this Agreement if FRANCHISEE shall have commenced such action required to cure the particular breach within ten (10) calendar days after such notice, and it continues such performance diligently until completed.

27.03 Termination. Upon the occurrence of a material breach, the City Council shall have the right to terminate this Agreement. In the event FRANCHISEE fails to cure the material breach specified in ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

a written notice from the Contract Administrator , then failure to cure may result in a declaration of termination of this Agreement by CITY.

27.04 Force Majeure. The performance of this Agreement may be discontinued or temporarily suspended in the event of Force Majeure. FRANCHISEE shall not be deemed to be in default and shall not be liable for failure to perform under this Agreement if FRANCHISEE’S performance is prevented or delayed by Force Majeure. For purposes of this Section, Force Majeure means acts of God including landslides, lightning, forest fires, storms, floods, freezing and earthquakes, civil disturbances, strikes, lockouts, or other industrial disturbances, acts of the public enemy, wars, blockades, public riots, breakage, explosions, or government restraint. Notwithstanding anything to the contrary herein, CITY and FRANCHISEE agree that the settlement of strikes, lockouts or other industrial disturbances, and litigation, including appeals, shall be entirely within the discretion of FRANCHISEE and FRANCHISEE may make settlement thereof at such time and on any such terms and conditions as it may deem to be advisable, and no delay in making such settlement shall deprive FRANCHISEE of the benefit of this Section.

27.05 The Contract Administrator shall serve written notice, either personally or by registered or certified mail, postage prepaid of the termination of a Franchise under this Agreement to the last place of business of FRANCHISEE and FRANCHISEE shall cease operation under its Franchise within ten (10) calendar days.

Article 28. Conditions Upon Termination.

28.01 In the event this Agreement is terminated:

28.01.1 FRANCHISEE shall have no right or authority to provide Temporary Services in CITY.

28.01.2 FRANCHISEE shall, however, remain liable to CITY for any and all franchise fees that would otherwise be payable by FRANCHISEE, for any and all late payment charges and interest assessed pursuant to Section 8 of this Agreement and for any and all delinquent report charges assessed pursuant to Section 13 of this Agreement.

28.01.3 FRANCHISEE shall have a continuing obligation to submit to CITY all reports and forms required by Article 13 of this Agreement that relate to Temporary Services performed by FRANCHISEE up to and including the date of termination.

28.02 In the event this Agreement is terminated, then within the time period specified by the City Council and if directed by the Contract Administrator , FRANCHISEE shall remove all of FRANCHISEE’S containers from all of FRANCHISEE’S Collection Service locations within the CITY and shall properly dispose or process all Solid Waste in such containers.

ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

Article 29. Notices.

Except as otherwise provided in this Agreement, all notices required by this Agreement shall be given by personal service, overnight delivery service, or by deposit in the United States mail, postage pre- paid and return receipt requested, addressed to the parties as follows:

To CITY: Solid Waste Franchise Contract Administrator
Attn: Marc Hill
City of Rancho Cordova
3303 Luyung Dr
Rancho Cordova, CA 95742
Email: [email protected]
Phone: (916) 851-8710

To FRANCHISEE: [COMPANY]
Attn: [NAME]
[ADDRESS]
Email: [EMAIL]
Phone: [PHONE]

Notice shall be deemed effective on the date personally served or, if mailed, three days after the date deposited in the mail unless otherwise specified in this Agreement.

Article 30. Relationship of Parties.

The parties intend that FRANCHISEE shall perform the services required by this Agreement as an independent FRANCHISEE and not as an officer or employee of CITY nor as a partner of or joint venturer with CITY. No employee or agent of FRANCHISEE shall be deemed to be an employee or agent of CITY and shall not obtain any rights to retirement benefits, worker's compensation benefits, or any other benefits which accrue to the employees of CITY by virtue of their employment with said agency. Except as expressly provided herein, FRANCHISEE shall have the exclusive control over the manner and means of conducting the Temporary Services performed under this Agreement and all persons performing such services. FRANCHISEE shall be solely responsible for the acts and omissions of its officers, employees, subcontractors and agents.

FRANCHISEE agrees that this Agreement is not made in the interest of, or on behalf of, any undisclosed person, partnership, FRANCHISEE, association, organization, or corporation. FRANCHISEE has not directly or indirectly colluded, conspired, connived or agreed with any person, partnership, FRANCHISEE, association, organization, or corporation to secure any advantage against CITY.

ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

Article 31. Compliance with Law.

In providing the services required under this Agreement, FRANCHISEE shall at all times, at its sole cost, comply with all applicable laws of the United States, the State of California, CITY and other states, or counties which may have jurisdiction over any service provided in this Agreement and with all applicable regulations promulgated by any federal, state, regional or local administrative and regulatory agency, now in force and as they may be enacted, issued or amended during the term of this Agreement.

Article 32. Governing Law.

This Agreement, and all rights, obligations, duties, and liabilities pursuant to it, shall be governed by, and construed and enforced in accordance with, the laws of the State of California.

Article 33. Jurisdiction.

The parties agree that any litigation concerning or arising out of this Agreement shall be filed and maintained exclusively in the Municipal or Superior Courts of Sacramento County, State of California, or in the United States District Court for the Eastern District of California to the fullest extent permissible by law.

With respect to venue, the parties agree that this Agreement is made in and will be performed in the CITY.

Each party consents to service of process in any manner authorized by California law.

Article 34. Assignment.

34.01 FRANCHISEE acknowledges that this Franchise Agreement involves rendering a vital service to the Temporary Service Customers within CITY, and that CITY has franchised FRANCHISEE to perform the services specified herein based on: (1) FRANCHISEE'S experience, skill and reputation for conducting its Temporary Services in a safe, effective and responsible fashion, at all times in keeping with applicable waste management laws, regulations and good Solid Waste management practices; and (2) FRANCHISEE's financial r esources to maintain the required equipment and to support its indemnity obligations to CITY under this Agreement. CITY has relied on each of these factors, among others, in choosing FRANCHISEE to perform the services to be rendered by FRANCHISEE under this Agreement.

34.02 Any Franchise granted is a privilege to be held in trust by the original FRANCHISEE. This Franchise Agreement shall not be transferred, sold, leased, assigned, or relinquished, or delegated to another person, either in whole or in part, whether by forced sale, merger, consolidation, bankruptcy laws or otherwise, without the prior approval of the City Council. This restriction includes the transfer of ownership of FRANCHISEE, or a majority of the ownership or control of FRANCHISEE, or the conveyance of a majority of FRANCHISEE's stock to a new controlling interest. This Agreement shall become void upon the abandonment of same by FRANCHISEE. The City Council shall not unreasonably withhold approval of a Franchise assignment, provided that such assignment does not unreasonably impact competition and the assignee is qualified to perform its obligations as required by this Franchise Agreement and any implementing CITY ordinance.

ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

34.03 FRANCHISEE shall promptly notify the Contract Administrator in writing in advance of any proposed assignment, sale, or transfer. In the event the City Council approves of any assignment, sale, or transfer, said approval shall not relieve FRANCHISEE of any of its obligations or duties under this Agreement unless this Agreement is modified in writing to that effect.

Article 35. Binding on Successors.

The provisions of this Agreement shall inure to the benefit of and be binding on the successors and permitted assigns of the parties.

Article 36. Waiver.

36.01 The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach or violation of the same or any other provision.

36.02 The subsequent acceptance by either party of any monies, which become due hereunder, shall not be deemed to be a waiver of any preexisting or concurrent breach or violation by the other party of any provision of this Agreement.

Article 37. FRANCHISEE'S Investigation.

FRANCHISEE has made an independent investigation, satisfactory to it, of the conditions and circumstances surrounding the Agreement and the work to be performed by it.

Article 38. Entire Agreement.

This Agreement, including any Exhibits, represents the full and entire Agreement between the parties with respect to the matters covered herein.

Article 39. Interpretation.

This Agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting.

Article 40. Amendment.

This Agreement may not be modified or amended in any respect except by a written agreement duly approved and signed by the parties.

Article 41. Severability.

If any nonmaterial provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement, which shall be enforced as if such invalid or unenforceable provision had not been contained herein.

ITEM 9.2.

ATTACHMENT 3

CONTRACT NO. 2025-[CONTRACT_NUMBER]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above

CITY OF RANCHO CORDOVA FRANCHISEE

_______________________________ __________________________ Albert Stricker, Public Works Director [NAME], [TITLE]

Date: ____________________ Date: ____________

Attest:

____________________________
Stacy Leitner, City Clerk

Date: ____________________

Approved as to Form:

____________________________
Adam Lindgren, City Attorney

Date: ____________________
ITEM 9.2.

ATTACHMENT 3

EXHIBIT 1
CONTRACT NO. 2025-[CONTRACT_NUMBER]

Exhibit 1
Exhibit 1
City of Rancho Cordova, CA
City-Approved Facilities
City-Approved C&D Sorting Facilities
Facility Address SWIS Material Type Sacramento County
Diversion Rate
L and D Landfill and
Material Recovery
Facility
8635 Fruitridge
Road, Sacramento 34-AA-0020 Mixed C&D
Source Separated 80.23%
GreenWaste Florin
Perkins Resource
Recovery Facility
4201 Florin Perkins
Road, Sacramento 34-AA-0221 Mixed C&D
Source Separated 72.68%
Sierra Waste
Recycling & Transfer
Station, Inc.
8260 Berry Avenue,
Sacramento 34-AA-0214 Mixed C&D
Source Separated 83.12%

City-Approved Processing Facilities
Facility Address SWIS Material Type Diversion Rate
Sacramento Recycling
and Transfer
8491 Fruitridge Road
Sacramento, CA 34-AA-0195 Recyclables
Napa Recycling at
Yolo Landfill
44090 County Road
28H, Woodland, CA 57-AA-0001 Organics
Western Placer Waste
Management Authority
3195 Athens Avenue,
Lincoln 31-AA-0001 Mixed Solid Waste
TBD

Disposal and Transfer Facilities
Facility Address SWIS Material Type
Kiefer Landfill 12701 Kiefer Blvd, Sloughhouse 34-AA-0001 Garbage North Area Recovery Station 4450 Roseville Rd, North Highlands 34-AA-0002 Garbage Sacramento Recycling and
Transfer Station 8491 Fruitridge Road, Sacramento 34-AA-0195 Garbage TBD
ITEM 9.2.

ATTACHMENT 3

EXHIBIT 2
CONTRACT NO. 2025-[CONTRACT_NUMBER]

Exhibit 2
City of Rancho Cordova, CA
Administrative Charges
It shall be the duty of FRANCHISEE to perform services under this Agreement in such a manner as to ensure that services are of the highest caliber. In the event FRANCHISEE fails to perform the services set forth in this Agreement, CITY may assess administrative charges against FRANCHISEE in the following amounts:

Failure Amount Cure Period Section
a. Failure to provide renewal information in 90-
day window. $50.00 per day n/a 4.04
b. Failure to submit franchise fee payment in
accordance with Article 8 of this Agreement.
$100 per
Business Day 2 Business Days 8
c.

Failure to deliver Construction and
Demolition Debris to a City-Approved C&D
Sorting Facility and to obtain a Sacramento
County stamp for Covered Project.
$1,000.00/occurrence n/a 10.02

10.03 d.

Disposal of Source Separated Recyclable
Materials, and/or Organic Recyclable
Materials in a disposal facility or landfill
without first obtaining the written permission
of CITY.
$1,000.00/occurrence n/a 10.04

10.05 e.

Failure to deliver a recoverable load (30% or
greater diversion) to a City-Approved
Processing Facility or City-Approved C&D
Facility, except as otherwise expressly
provided in this Agreement.
$1,000.00/occurrence n/a 10.06
f.

Failure to deliver Collected Solid Waste to
an appropriate City-Approved facility as
listed in Exhibit 1 or a facility approved via
the process described in Article 9.
$1,000.00/occurrence n/a 10.06
g.

Failure to achieve required 65% diversion
rate for Temporary Debris over a quarterly
reporting period.
$50.00 per one ton
shortfall needed to
meet 65% diversion
requirement per
quarter
n/a 10.07
ITEM 9.2.

ATTACHMENT 3

EXHIBIT 2
CONTRACT NO. 2025-[CONTRACT_NUMBER]

h.

Failure to submit complete and correct
information or reports on time and in
accordance with Article 13 of this
Agreement.

Each report due shall be treated separately
for purposes of this delinquent report
charge, and such delinquent report charges
shall be cumulative.
$50.00 per day
delinquent per report n/a 13
i.

Failure to respond to any CITY request for
data or information within five (5) Business
Days of receipt of the request.
$200.00 per day 2 Business Days 13.08
j. Verified collection outside of restricted
collection hours. $100 per day n/a 17.03
k. Failure to maintain equipment in a clean,
safe, and sanitary manner. $200.00/occurrence 2 Business Days 17.05

19.02 l. Failure to clean up spillage or litter caused
by FRANCHISEE. $200.00/occurrence 1 Business Day 17.06 m. Failure to properly cover materials in
Collection vehicles. $200.00/occurrence n/a 17.06
n. Operation of overweight Collection Vehicles.
$500 per day per load
after CITY has
considered
FRANCHISEE’s
reason for overweight
vehicles.
n/a 17.07
o.

Failure to remove Containers from Customer
property within 10 business days following
termination of Customer service agreement.
$50 per day. 2 Business Days 18
p. Failure to meet Customer Service standards. $200/occurrence n/a 22 q.

Failure to comply with the requirements of
this Agreement or Rancho Cordova
Municipal Code not specified in items a.
through q. following written notice from CITY
to FRANCHISEE of deficiency.
$250.00 per incident n/a
ITEM 9.2.

ATTACHMENT 3

Exhibit 3
City of Rancho Cordova, CA
Incident Protocol
ITEM 9.2.

ATTACHMENT 3

Franchised Waste Hauler Incident Communication Protocol T h e f o l l o w i n g p r o t o c o l i d e n t i fi e s t h e i t e m s r e q u i r e d t o b e r e p o r t e d t o t h e C i t y o f R a n c h o Cordova in the event of an accident, damage to public/private property, or other noteworthy event involving the hauler. This includes any incident, regardless of how minor that affects an entity other than the hauler. Reportable examples include vehicle accidents, fires, fluid s p i l l s , c i t y o r c u s t o m e r p r o p e r t y d a m a g e , e t c . I s s u e s w i t h h a u l e r e q u i p m e n t t h a t d o n o t affect others need not be reported (i.e., if a vehicle breaks down during a route without spillage of any kind).

Notification Tree

After notifying emergency services as appropriate, the city must be contacted via phone when an incident is identified through one of the staff below. If a staff member does not answer, the next person on the list must be phoned until actual contact is made.

• Marc Hill – 916-851-8821, [email protected] • Maria Lopez – 916-851-8893, [email protected] • Victor Ramos – 916-851-8948, [email protected] • Main Public Works Line – 916-851-8810

Immediate Communication

• Description: provide a detailed description of what transpired (e.g. a truck caught fire, and the load was ejected) and if there were any injuries.

• Emergency Services Notified: communicate if Emergency Services have been contacted and if they are currently on scene.

• Response: provide a detailed description of the response that is being mobilized to address the incident.
•
• Timing: provide the approximate time the incident occurred and anticipated length of time necessary to resolve the situation.

• Specific Location of Incident : provide as precise a location as possible, including the nearest cross streets. For example, “the accident occurred in the parking lot of Rancho Cordova City Hall. The closest cross streets are Prospect Place and Gold Center Drive. ”

ITEM 9.2.

ATTACHMENT 3

• City Asset Impact: provide information related to the following:

o Any Drain Inlets (DI’s) affected by liquids as a result of the incident. o Impact on road surface (if any).
o Impact on signs, streetlights, signals, sidewalks, etc.

• Other Asset Impact : p r o v i d e d e t a i l s o f d a m a g e s t o c u s t o m e r a s s e t s a n d / o r t h i r d- party assets including if external parties were involved/notified of the issue.

• Media: communicate if the media is present.

• Photos: to the extent possible, provide photographs of the incident, including specific damage to city assets, where applicable.

Follow-Up Communication

A t t h e c o n c l u s i o n o f t h e i n c i d e n t r e s p o n s e , p r o v i d e t h e f o l l o w i n g d e t a i l s t o t h e c i t y s t a ff person that was originally contacted. Follow-up communication may be accomplished via email if desired. If email is chosen, please copy Marc Hill if he is not the staff person with whom primary contact was made.

• Timeframe: summarize the incident timeframe from the initial notification to the conclusion of the response effort.

• Response: provide details about what transpired during the response effort and any follow-up that needs to be accomplished. If follow-up attention is required, provide the timeframe for it.

• Causation: provide as much information as possible regarding what caused the incident and any measures that will be taken to mitigate future incidents (if possible).

ITEM 9.2.

ATTACHMENT 3

MEMORANDUM

City Council Staff Report - Page 1 of 2

ITEM 9.3.

DATE: November 17, 2025

TO: Honorable Mayor and Council Members

FROM: Albert Stricker, Public Works Director

SUBJECT: A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT NO. 2025-236 WITH K&K JL SERVICES, INC. IN AN
AMOUNT NOT TO EXCEED $578,522 FOR LANDSCAPE

MAINTENANCE SERVICES OF PUBLIC FRONTAGES IN THE

MATHER COMMERCE AREA

RECOMMENDATION

Adopt the Resolution.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution would authorize the City Manager to execute Contract No. 2025-236 with K&K JLServices, Inc. in an amount not to exceed $578,522 for landscape maintenance of public frontages in the Mather Commerce Area.

BACKGROUND

Historically, the county has managed tree, vegetation, and landscape maintenance throughout the City of Rancho Cordova's jurisdiction of the Mather Commerce Area. As part of an ongoing transition of responsibilities, the City Council approved a one-year agreement with the county on December 2, 2024, allowing the county to continue providing these services through December 31, 2025. This transition period provided time for the city to prepare for independent maintenance operations within its boundaries.

On October 8, 2025, staff issued a Request for Proposals (RFP) for landscape maintenance services beginning January 1, 2026. The City received five proposals in response. K&K JL Services, Inc. submitted the lowest qualified price and demonstrated experience providing similar services for public agencies. The firm’s certified staff and maintenance plan reflect an understanding of the city’s service expectations. Staff recommends awarding Contract No. 2025-236 to K&K JL Services, Inc. in an amount not to exceed $578,522.

FISCAL IMPACT AND FUNDING SOURCE

The contract would be funded by Measure A and would have no impact on the city’s general fund.

ATTACHMENT(S)

1. Resolution

City Council Staff Report - Page 2 of 2

2. Contract No. 2025-236

ITEM 9.3. ATTACHMENT 1
Resolution No. XX-2025 Page 1 of 2

CITY OF RANCHO CORDOVA

RESOLUTION NO. XX-2025

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE OF CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT NO. 2025-236 WITH K&K JL SERVICES, INC. IN AN AMOUNT NOT TO EXCEED $578,522 FOR

LANDSCAPE MAINTENANCE SERVICES OF PUBLIC FRONTAGES IN THE MATHER

COMMERCE AREA

WHEREAS, the city solicited proposals for landscape maintenance services under the requirements of state law on October 8, 2025; and

WHEREAS, the city received five proposals on October 24, 2025; and

WHEREAS, K&K JL Services, Inc. submitted the top-ranked proposal based on a combination of the lowest qualified price, experience providing services to public agencies, and an understanding of the city’s desired level of service; and

WHEREAS, the work scope includes turf mowing and edging, shrub pruning, irrigation system maintenance, fertilization, litter removal, and weed control; and

WHEREAS, adoption of this Resolution will allow the City Manager to execute a contract with K&K JL Services, Inc. in an amount not to exceed $578,522; and

WHEREAS, the services will exceed the maximum amount the City Manager is authorized to approve; and

WHEREAS, the contract would funded by Measure A and would have no impact on the city’s general fund.

NOW, THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA does authorize the City Manager to execute Contract No. 2025-236 with K&K JL Services, Inc. in an amount not to exceed $578,522 in a form approved by the City Attorney for landscape maintenance services in the Mather Commerce Area.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 17th day of November 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ITEM 9.3. ATTACHMENT 1
Resolution No. XX-2025 Page 2 of 2

ATTEST:

Siri Pulipati, Mayor

Stacy Leitner, CMC
City Clerk

CONT RACT NO. 2025-236
General Services Agreement between
City of Rancho Cordova and K&K JL Services, Inc. Page 1 of 7 Revised 06/2025

GENERAL SERVICES AGREEMENT BETWEEN
THE CITY OF RANCHO CORDOVA AND K&K JL SERVICES, INC.

THIS AGREEMENT (hereinafter referred to as “Agreement”) is made by and between the City of Rancho Cordova, a California municipal corporation, (herein “City”) and K&K JL Services, Inc., (herein “Contractor”), as of January 1, 2026.

SECTION 1. SERVICES . Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in the Scope of Services attached as Exhibit A (“Services”) at the time and place and in the manner as specified therein. In the event of a conflict or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.

SECTION 2. TERM. The term of this Agreement shall begin on the date first noted above and shall end on June 30, 2029, unless the term of this Agreeme nt is otherwise terminated as provided for in Section 10.

The time provided to Contractor to complete the services required by this Agreement shall not affect the City’s right to terminate the Agreement, as provided for in Section 10.

SECTION 3. CONTRACT ADMINISTRATOR. This Agreement shall be administered by Operation & Maintenance Division Manager ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee.

SECTION 4. COMPENSATION OF CONTRACTOR. The Contractor shall be paid Five hundred seventy- eight thousand five hundred twenty-two dollars ($578,522) for performance of the Services pursuant to this Agreement. The Contractor shall submit invoices to the Contract Administrator on a monthly basis detailing the Services performed. In the event of a conflict between this Agreement and Exhibit A regarding the amount of compensation, the Agreement shall prevail. Upon receipt and approval of the Contractor’s invoices, the City shall remit payment to the Contractor for Services provided within thirty (30) days. Payment to Contractor shall be considered as full compensation for performing the Services.

City’s failure to discover or object to any unsatisfactory work or billing prior to payment will not constitute a waiver of City’s right to request Contractor to correct such work or billings or seek any other legal remedy.

SECTION 5. PERFORMANCE STANDARDS. Contractor shall comply with all applicable laws now in force or which may hereafter be in force with regard to the provision of Services and this Agreement.

Contractor represents that it has the skills, expertise, licenses and permits necessary to perform the Services.

Contractor shall perform all such Services in the manner and according to the standards observed by a competent practitioner of the same profession in which Contractor is engaged and in accordance with applicable industry standards. Permits and/or licenses shall be obtained and maintained by Contractor without additional compensation throughout the term of this Agreement.

SECTION 6. STATUS OF CONTRACTOR.

6.1 Independent Contractor. At all times during the term of this Agreement, Contractor shall be an independent contractor as defined in Labor Code Section 3353, and shall not be an ITEM 9.3.

ATTACHMENT 2