Rancho Cucamonga City Council
August 17, 2022

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rated glass does not provide the protection needed to stop firearm rounds from penetrating the interior of the facility. Due to the increase in threat incidents and vulnerability the current glass presents, the Police Chief is requesting that this improvement be declared an emergency so that the glass can be replaced as soon as possible. Public Works staff agree with the Chief’s recommendation and see this as a much-needed project.

ANALYSIS:

Public Works Facilities staff contacted the City’s current glass vendor, Tinker Glass, for quotes on different options for ballistic glass. Research was performed and it was determined that the existing window and door frames would be able to accept the weight and thickness of ballistic glass without significant modification to the facility. Therefore, staff is recommending the installation of Ballistic Glass for the plaza level of the RCPD facility.

FISCAL IMPACT:

The total price for this project is $165,025 including a 15% contingency which will be funded from the Law Enforcement Reserve fund, 1017701-5602.

COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:

This item addresses City Council core values of promoting and enhancing a safe and healthy community for all by ensuring City facilities are properly maintained.

ATTACHMENTS:

None.

DATE:August 17, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY: William Wittkopf, Public Works Services Director Richard Favela, Streets, Storm Drains and Fleet Superintendent Kenneth Fung, Assistant Engineer
SUBJECT: Consideration to Award a Contract to Gentry General Engineering for the "Heritage Community Park Pedestrian Trail Renovation Project. (CITY) RECOMMENDATION:

Staff recommends that the City Council:

1. Approve the plans and specifications

2. Award the contract for the “Heritage Community Park Pedestrian Trail Renovation Project” to Gentry General Engineering of Rancho Cucamonga.

3. Accept Change Order Number One and authorize the Execution of a Contract for the reduced scope of work in the amount of $142,591.56 for the project.

5. Authorize the expenditure of a contingency in the amount of $7,408.44.

6. Appropriate $150,000 from PD 85 fund balance to account 1848303-5607.

BACKGROUND:

The original advertised scope of work for the Heritage Community Park Pedestrian Trail Renovation project included the removal and replacement of existing asphalt pavement and aggregate base sections of the pedestrian trail, removal and replacement of damaged concrete mow curbs, removal and disposal of existing exercise equipment plus outdated signs, and the installation of City supplied exercise equipment in a new concentrated area of the park.

ANALYSIS:

One (1) bid for this project was opened at 2:00 pm on Tuesday, June 14, 2022. Unfortunately, the bid amount of $237,913.60 exceeded the project budget of $150,000. Attachment 1 has the bids summary details. Over several weeks, staff met with representatives of Gentry General Engineering to discuss several proposals for a reduced scope of work.

Attachment 2 is change order number one which is the proposal for a reduced scope of work in the amount of $142,591.56, which is within the project’s available funding. The reduced scope of work involves the removal and replacement of asphalt pavement, concrete mow curb, and the removal of exercise equipment along the south and east sections of the pedestrian trail only. When additional funding becomes available, the remaining sections of the pedestrian trail will be renovated. Staff has placed an order for new exercise equipment unfortunately due to supply chain issues, the equipment is not available at this time to be installed with this project.

Once the new exercise equipment has been delivered to City staff it will be installed.

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The project is scheduled to be completed within thirty-five (35) working days. Staff is requesting a contingency of $7,408.44 in the event of something unexpected being discovered during construction. A copy of the project contract can be found at the City Clerk’s Office.

FISCAL IMPACT:

Originally, the $150,000 funding was included in the Fiscal Year 2021/2022 adopted budget for this project in account number 1848303-5607 (PD 85). Due to the change order and elapsed time frame, this project could not be awarded before the end of Fiscal Year 2021/2022. To award and complete this project, an appropriation is requested from PD 85 fund balance in the amount of $150,000.

COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:

By removing and replacing the damaged sections of asphalt trail, concrete mow strips, and other work, this will promote and enhance the appearance, safety, and high quality of life for users of the pedestrian trail.

ATTACHMENTS:

Attachment 1 - Bid Summary
Attachment 2 - Proposal for Reduced Scope of Work

JUNE 14, 2022 BID OPENING SUMMARY

HERITAGE COMMUNITY PARK PEDESTRIAN TRAIL RENOVATION PROJECT

BASE BID
Gentry General
Engineering, Inc.
item Description Qty Unit Unit Price Cost
1 Mobilization Demobilizaton 1 LS $8,700.00 $8,700.00
2 Clear and Grub 1 LS $8,100.00 $8,100.00
3 Traffic Control 1 LS $14,100.00 $14,100.00
4 Construction Best Management
Practices (BMP) 1 LS $2,220.00 $2,220.00
5 Remove and Dispose Ex. Asphalt
Concrete Pavement (F) 27780 SF $1.02 $28,335.60
6 Remove and Dispose Ex. 4" wide
Mow Curb 350 LF $11.00 $3,850.00
7 Remove and Dispose Ex. Exercise
Equipment, EQ Footings, Signs, Sign
Posts and Footings 1 LS $14,780.00 $14,780.00
8 Construct 3" Thick Asphaltic
Concrete pavement over Compacted
Aggregrate Base (F) 23040 SF $4.35 $100,224.00
9 Construct Redwood Header Board
and Stakes 2430 LF $9.00 $21,870.00
10 Construct 4" Wide Replacement
Concrete Mow Curb 350 LS $38.00 $13,300.00
11 Construct 4" wide concrete Mow
Curb 300 LF $46.00 $13,800.00
12 Construct 6" Wide Concrete Mow
Curb 120 LF $65.00 $7,800.00
13 Install Construction Notification
Signs 2 EA $417.00 $834.00
BASE BID TOTAL = $237,913.60
The designation (F) following the bid item in the schedule of cost and lump sum amouts indicates said FINAL quantity and/or cost.

ADDITIVE BID
Gentry General
Engineering, Inc.
item Description Qty Unit Unit Price Cost
1 Construct 3" Thick Asphaltic
Concrete Pavement
405 SF $11.45 $4,637.25
2 Construct 6" Wide Concrete Mow
Curb 27 LF $79.00 $2,133.00
3 Construct Redwood Headerboard
and Stakes 30 LF $16.00 $480.00
4 Install City Supplied Exercise
Equipment 3 EA $6,300.00 $18,900.00
ADDITIVE BID TOTAL = $26,150.25
BASE BID + ADDITIVE BID = $264,063.85
ATTACHMENT 1 - BID SUMMARY

 
 

DATE:August 17, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY: Jason C. Welday, Director of Engineering Service/City Engineer Baldwin Ngai, Associate Engineer
SUBJECT: Consideration of a Contract with Crosstown Electric & Data, Inc. in the Amount of $608,683, Plus a 10% Contingency for the 2022 HSIP Traffic Signal Modification at Various Locations Project and an Appropriation from the Gas Tax Fund (Fund 174) in the Amount of $453,000 and from the Transportation Fund (124) in the Amount of $264,400. (CITY) RECOMMENDATION:

Staff recommends that the City Council

1. Approve the plans and specifications for the 2022 HSIP Traffic Signal Modification at Various Locations Project (Project);

2. Accept the bids received for the Project;

3. Award and authorize the execution of a contract for the Base Bid and Additive Bid Schedules 1 and 2 in the amount of $608,683 to the lowest responsive bidder, Crosstown Electric & Data, Inc.;

4. Authorize the expenditure of a 10% contingency in the amount of $60,869;

5. Authorize a Purchase Order in the amount of $46,200 to Onward Engineering for on-call construction inspection services; and

6. Authorize appropriations of funds in the amount of $453,000 from the Gas Tax Fund (Fund 174) to Account No 11743035650/2079174-0 and in the amount of $264,400 from the Transportation Fund (124) to Account No. 11273035650/2079124-0 BACKGROUND:

The City has made significant progress towards improving traffic safety at signalized intersections over the recent years through the installation of Flashing Yellow Arrow (FYA) left turn signal heads. The four-section FYA signal head is an improved alternative to the traditional five-section “Doghouse” signal head for protected-permissive left turn (PPLT) operation at a traffic signal.

Whereas the traditional setup displays a red indication shared between the through and left turn movement, the FYA setup allows indications for the left turn movement to be displayed independent of indications for the through movement from the same approach. The separation of these indications allows for independent control of these movements and thus improves the efficiency of traffic flow. Additionally, the flashing yellow indication replaces the circular green indication during the permissive phase of the left turn movement to enhance visibility and increase awareness of drivers approaching for a left turn. Studies by the Federal Highway Administration have shown a range of 15%-50% crash rate reduction at intersections by upgrading permissive or protected-permissive left turn operation to FYA operation.

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In December 2020, the City applied for the Highway Safety Improvement Program (HSIP) Cycle

10. The application was reviewed and selected by Caltrans Division of Local Assistance in March 2021 for funding of 50% of the estimated total Project cost to upgrade seven existing traffic signals up to a maximum of $162,600. This grant funding is reimbursable to the City after completion of the Project and all requirements are fulfilled. The objective of the HSIP is to implement safety countermeasures at locations to reduce potential future crashes.

ANALYSIS:

This Project would upgrade the left turn operation at the following seven traffic signals with four- section FYA left turn signal heads. The work includes traffic signal wiring and new controller cabinets where identified by staff to facilitate the upgrades. Further, the bid package included two Additive Bid Schedules for the installation of Battery Backup Systems (BBS) at five locations (Additive Bid Schedule 1) and the installation of the City’s standard Video Detection Systems (VDS) at three of the locations (Additive Bid Schedule 2). •Terra Vista Parkway West and Church Street (FYA Upgrade) •Base Line Road and Beryl Street (FYA Upgrade & BBS)
•Banyan Street and East Avenue (FYA Upgrade & BBS)
•Base Line Road and Mountain View Drive (FYA Upgrade & BBS) •Milliken Avenue and Millennium Court (FYA Upgrade, BBS, & VDS) •Milliken Avenue and Vintage Drive (FYA Upgrade & VDS)
•Milliken Avenue and Church Street (FYA Upgrade, BBS, & VDS) The Notice Inviting Bids for the Project was released to the general contracting community and was published in the Daily Bulletin on July 12, and July 19, 2022. The City Clerk’s Office facilitated the formal solicitation for bidding the Project.

On July 26, 2022, the City Clerk's Office received five (5) construction bids. A full bid summary is included as Attachment 2. The Engineer’s estimate for the Project, including the Base Bid and Additive Bid Schedules was $606,222 consisting of a Base Bid estimate of $431,900 and an estimate for the Additive Bid Schedules of $174,322. The apparent low bid, as determined by the method prescribed in the Project’s Special Provisions, was received by Crosstown Electrical and Data, Inc. (Crosstown) totaling $608,683 with a Base Bid of $404,743 and Additive Bid Schedules totaling $203,940.

Engineering staff has reviewed all bids received and found all to be complete and in accordance with the bid requirements with any irregularities to be inconsequential. Staff has completed the required background investigation and finds the lowest responsive bidder, Crosstown, meets the requirements of the bid documents.

Inclusion of the Additive Bid Schedules in the recommended contract award would facilitate the upgrade of outdated Battery Backup Systems and installation of the City’s standard Video Detection Systems at the locations identified above while the Contractor is performing the FYA upgrades providing for savings in future mobilization costs and staff time to bid these installations separately.

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FISCAL IMPACT:

Anticipated construction costs for the Project are estimated to be as follows:

Expenditure Category Amount
Construction Contract (Base Bid + Additive Bids) $608,683 Construction Contract Contingency (10%) $60,869
Construction Inspection Services $46,200
Notice of Advertising $1,607
Estimated Total Construction Costs $717,359
Partial funding for the construction of the contemplated traffic signal upgrades were originally budgeted in Fiscal Year 2021/22. However, the Project was not able to be awarded in Fiscal Year 2021/22 due to delays in the design phase and the balance of the previously budgeted funds were returned to Fund Balance at the end of the fiscal year. Therefore, appropriations shown below totaling $717,400 will be required to proceed with the award of a contract for the construction of the Project.

Account No’s. Funding Source Description Amount
11743035650/2079174-0 Gas Tax Fund (174) Upgrade Left Turn Phases at Multiple Locations
(Terra Vista @ Church, Base
Line @ Beryl, & Milliken and
Church)
$453,000
11243035650/2079124-0 Transportation Fund
(124)
Upgrade Left Turn Phases at
Multiple Locations
(Banyan @ East, Base Line
@ Mountain View, Milliken @
Millennium, & Milliken @
Vintage)
$264,400
Total Project Appropriation $717,400
Sufficient funding is available in the Transportation Fund (Fund 124) fund balance and Gas Tax (Fund 174) fund balance to cover an award of the Base Bid and Additive Bid for this Project.

Further, upon completion of the Project, the City will be eligible to seek reimbursement of up to $162,600 in HSIP grant funding for the safety improvements. Reimbursed funds will be returned to the appropriate funds.

COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:

This item addresses the City Council’s vision for the City by ensuring the construction of high quality public improvements that promote a world class community ATTACHMENTS:

Description
Attachment 1 - Vicinity Map
Attachment 2 - Bid Summary

ATTACHMENT 1

PROJECT# 800‐2021‐02
2022 HSIP TRAFFIC SIGNAL MODIFICATION AT VARIOUS

LOCATIONS
VICINITY MAP
NOT TO SCALE

Project Site

UNIT UNIT BID UNI T BID UNI T BID UNI T BID UNI T BID

NO QT Y UNIT DESCRIPTION COST AMOUNT COST AMOUNT COST AMOUNT COST AMOUNT COST AMOUNT COST AMOUNT 1 1 LS Mobilization $28,000.00 28,000.00$ 15,000.00 $ 15,000.00 $ 8,000.00 $ 8,000.00 $ 10,000.00 $ 10,000.00 $ 7,500.00 $ 7,500.00 $ 38,000.00 $ 38,000.00 $ 21 L S
Clearing & Grubbing and Removals Including Haul & Disposal of Material within Landscape Median, Curb Removal, Tree removals, and Irrigation Lines and Equipment.
$1,400.00 1,400.00$ 3,500.00 $ 3,500.00 $ 2,500.00 $ 2,500.00 $ 2,500.00 $ 2,500.00 $ 4,000.00 $ 4,000.00 $ 12,000.00 $ 12,000.00 $ 31 L S Traffic control $35,000.00 35,000.00$ 5,000.00 $ 5,000.00 $ 10,000.00 $ 10,000.00 $ 5,600.00 $ 5,600.00 $ 6,000.00 $ 6,000.00 $ 15,000.00 $ 15,000.00 $ 41 L S FYA signal modification $13,500.00 13,500.00$ 23,085.00 $ 23,085.00 $ 60,206.00 $ 60,206.00 $ 11,311.00 $ 11,311.00 $ 58,965.00 $ 58,965.00 $ 16,000.00 $ 16,000.00 $ 51 L S Re-wire intersection for FYA operations per spec $22,000.00 22,000.00$ 7,500.00 $ 7,500.00 $ 11,400.00 $ 11,400.00 $ 65,855.00 $ 65,855.00 $ 5,000.00 $ 5,000.00 $ 47,000.00 $ 47,000.00 $ 6 1 LS FYA si gnal modification $60,000.00 60,000.00 $ 49,715.00 $ 49,715.00 $ 60,000.00 $ 60,000.00 $ 7,320.00 $ 7,320.00 $ 65,654.00 $ 65,654.00 $ 11,000.00 $ 11,000.00 $ 71 L S Re-wire intersection for FYA operations per spec $22,000.00 22,000.00$ 7,500.00 $ 7,500.00 $ 11,000.00 $ 11,000.00 $ 70,880.00 $ 70,880.00 $ 5,000.00 $ 5,000.00 $ 52,000.00 $ 52,000.00 $ 81 L S FYA signal modification $34,500.00 34,500.00$ 60,773.00 $ 60,773.00 $ 65,526.00 $ 65,526.00 $ 11,298.00 $ 11,298.00 $ 70,451.00 $ 70,451.00 $ 16,000.00 $ 16,000.00 $ 91 L S Re-wire intersection for FYA operations per spec $22,000.00 22,000.00$ 7,500.00 $ 7,500.00 $ 12,000.00 $ 12,000.00 $ 70,880.00 $ 70,880.00 $ 5,000.00 $ 5,000.00 $ 52,000.00 $ 52,000.00 $ 10 1 LS FYA signal modification $11,000.00 11,000.00$ 37,445.00 $ 37,445.00 $ 52,720.00 $ 52,720.00 $ 3,712.00 $ 3,712.00 $ 61,063.00 $ 61,063.00 $ 6,000.00 $ 6,000.00 $ 11 1 LS Re-wire intersection for FYA operations per spec $25,000.00 25,000.00$ 21,500.00 $ 21,500.00 $ 31,000.00 $ 31,000.00 $ 26,386.00 $ 26,386.00 $ 27,000.00 $ 27,000.00 $ 26,000.00 $ 26,000.00 $ 12 1 LS Remove existing foundation and construct new foundation for traffic signal cabinet $15,000.00 15,000.00$ 6,665.00 $ 6,665.00 $ 13,500.00 $ 13,500.00 $ 33,617.00 $ 33,617.00 $ 5,000.00 $ 5,000.00 $ 46,000.00 $ 46,000.00 $ 13 1 LS FYA signal modification $29,500.00 29,500.00$ 44,575.00 $ 44,575.00 $ 60,871.00 $ 60,871.00 $ 2,850.00 $ 2,850.00 $ 58,769.00 $ 58,769.00 $ 54,000.00 $ 54,000.00 $ 14 1 LS Re-wire intersection for FYA operations per spec $25,000.00 25,000.00$ 25,000.00 $ 25,000.00 $ 31,000.00 $ 31,000.00 $ 69,998.00 $ 69,998.00 $ 28,000.00 $ 28,000.00 $ 26,000.00 $ 26,000.00 $ 15 1 LS FYA signal modification $29,500.00 29,500.00$ 53,425.00 $ 53,425.00 $ 63,110.00 $ 63,110.00 $ 1,000.00 $ 1,000.00 $ 44,654.00 $ 44,654.00 $ 50,000.00 $ 50,000.00 $ 16 1 LS Re-wire intersection for FYA operations per spec $22,000.00 22,000.00$ 7,500.00 $ 7,500.00 $ 9,500.00 $ 9,500.00 $ 70,880.00 $ 70,880.00 $ 4,000.00 $ 4,000.00 $ 3,600.00 $ 3,600.00 $ 17 1 LS FYA signal modification $14,500.00 14,500.00$ 24,685.00 $ 24,685.00 $ 35,700.00 $ 35,700.00 $ 1,000.00 $ 1,000.00 $ 27,515.00 $ 27,515.00 $ 16,000.00 $ 16,000.00 $ 18 1 LS Re-wire intersection for FYA operations per spec $22,000.00 22,000.00$ 4,375.00 $ 4,375.00 $ 11,500.00 $ 11,500.00 $ 40,626.00 $ 40,626.00 $ 4,000.00 $ 4,000.00 $ 4,000.00 $ 4,000.00 $ 431,900.00$ 404,743.00 $ 549,533.00 $ 505,713.00 $ 487,571.00 $ 490,600.00 $ 11 L S Furnish and install complete battery back-up system in a separate cabinet (CBS-127) at Base Line and Beryl $11,000.00 11,000.00$ 12,995.00 $ 12,995.00 $ 14,500.00 $ 14,500.00 $ 12,026.00 $ 12,026.00 $ 13,966.00 $ 13,966.00 $ 15,000.00 $ 15,000.00 $ 21 L S Furnish and install complete battery back-up system in a separate cabinet (CBS-127) at Banyan and East $11,000.00 11,000.00$ 12,995.00 $ 12,995.00 $ 14,500.00 $ 14,500.00 $ 12,026.00 $ 12,026.00 $ 13,966.00 $ 13,966.00 $ 15,000.00 $ 15,000.00 $ 31 L S Furnish and install complete battery back-up system in a separate cabinet (CBS-127) at Base Line and Mountain View $11,000.00 11,000.00$ 12,995.00 $ 12,995.00 $ 14,500.00 $ 14,500.00 $ 12,026.00 $ 12,026.00 $ 13,966.00 $ 13,966.00 $ 15,000.00 $ 15,000.00 $ 41 L S Furnish and install complete battery back-up system in a separate cabinet (CBS-127) at Milliken and Millennium $11,000.00 11,000.00$ 12,995.00 $ 12,995.00 $ 14,500.00 $ 14,500.00 $ 12,026.00 $ 12,026.00 $ 13,966.00 $ 13,966.00 $ 15,000.00 $ 15,000.00 $ 51 L S Furnish and install complete battery back-up system in a separate cabinet (CBS-127) at Milliken and Church $11,000.00 11,000.00$ 12,995.00 $ 12,995.00 $ 14,500.00 $ 14,500.00 $ 12,026.00 $ 12,026.00 $ 13,966.00 $ 13,966.00 $ 15,000.00 $ 15,000.00 $ 55,000.00$ 64,975.00 $ 72,500.00 $ 60,130.00 $ 69,830.00 $ 75,000.00 $ 11 L S Mobilization $400.00 400.00$ 3,500.00$ 3,500.00 $ 3,000.00 $ 3,000.00 $ 2,500.00 $ 2,500.00 $ 2,000.00 $ 2,000.00 $ 12,000.00 $ 12,000.00 $ 21 L S Removal of conductors and equipment and abandonment of conduits $167.00 167.00$ 4,500.00$ 4,500.00 $ 6,500.00 $ 6,500.00 $ 5,800.00 $ 5,800.00 $ 15,000.00 $ 15,000.00 $ 12,000.00 $ 12,000.00 $ 31 L S Furnish and install VDS complete in place at Milliken and Millennium $36,510.00 36,510.00$ 43,155.00 $ 43,155.00 $ 45,000.00 $ 45,000.00 $ 44,419.00 $ 44,419.00 $ 44,280.00 $ 44,280.00 $ 49,000.00 $ 49,000.00 $ 41 L S Furnish and install VDS complete in place at Milliken and Vintage $36,500.00 36,500.00$ 43,155.00 $ 43,155.00 $ 45,000.00 $ 45,000.00 $ 44,419.00 $ 44,419.00 $ 44,280.00 $ 44,280.00 $ 49,000.00 $ 49,000.00 $ 51 L S Furnish and install VDS complete in place at Milliken and Church $41,745.00 41,745.00$ 43,155.00 $ 43,155.00 $ 45,000.00 $ 45,000.00 $ 44,419.00 $ 44,419.00 $ 44,280.00 $ 44,280.00 $ 49,000.00 $ 49,000.00 $ 61 L S Traffic control $4,000.00 4,000.00$ 1,500.00 $ 1,500.00 $ 3,500.00 $ 3,500.00 $ 4,000.00 $ 4,000.00 $ 3,000.00 $ 3,000.00 $ 6,000.00 $ 6,000.00 $ 119,322.00$ 138,965.00 $ 148,000.00 $ 145,557.00 $ 152,840.00 $ 177,000.00 $ TOTAL BID SCHEDULE 606,222.00$ 608,683.00 $ 770,033.00 $ 711,400.00 $ 710,241.00 $ 742,600.00 $ Bid package 710,391.00$ Bid package 744,600.00$
Corrected 710,241.00$ Corrected 742,600.00$
3 Elecnor Belco, Inc2022 HSIP TS MODIFICATION AT VARIOUS LOCATIONS ENGINEER'S ESTIMATE Crosstown Electric & Data, Inc. Calpromax Engineering, Inc.California Professional Engineering, Inc.
4 NOTE: CORRECTIONS TO BID AMOUNTS SHOWN IN BOLD.

BID SCHEDULE
BID SUMMARY FOR BID OPENING JULY 26, 2022 APPARENT LOW BIDDER Milliken Ave and Vintage Dr
Milliken Ave and Church St
Additive Bid Schedule 1
Additivie Bid Schedule 2
Terra Vista Pkwy West and Church St
Base Line Rd and Beryl St
Banyan St and East Ave
Base Line Rd and Mountain View Dr
Milliken Ave and Millennium Ct
52 DBX, Inc.
 
 

DATE:August 17, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY: Robert Neiuber, Human Resources Director
SUBJECT: Consideration to Authorize Signature of the California Intergovernmental Risk Authority Agreement for Apportionment of Retirement Obligations. (CITY)
RECOMMENDATION:

Staff recommends that the City Council authorize the Mayor of the City of Rancho Cucamonga to sign the California Intergovernmental Risk Authority (CIRA) Agreement for Apportionment of Retirement Obligations on behalf of the City.

BACKGROUND:

In September 2018, former Governor Jerry Brown signed into law AB 1912. This Bill, codified in Government Code 6508.2, established rules for Joint Powers Authorities (JPA) to meet pension obligations for employees and retirees should the JPA terminate its retirement plan with CalPERS or dissolve. The law requires that member agencies of a JPA, prior to filing a notice of termination of CalPERS participation, must mutually agree (within 60 days) with the public retirement system on how to apportion the retirement liability of the JPA so that the apportionment equals 100% of this liability.

The Public Agency Risk Sharing Authority of California (PARSAC), a statewide risk-sharing Joint Powers Authority provides general liability coverage. The Redwood Empire Municipal Insurance Fund (REMIF), a public entity pool provides worker’s compensation and liability coverage. Pools are empowered to exist through sections of the California Government Code known as joint powers authority (JPA) with a focus on managing and maintaining a financially stable risk sharing pool for members.

On July 1, 2021, PARSAC and REMIF merged to form the California Intergovernmental Risk Authority (CIRA). PARSAC became the successor agency and absorbed REMIF’s CalPERS pension liabilities into its contract. The contracting agency is now CIRA.

The City of Rancho Cucamonga is a member agency of CIRA.

This past May, CIRA’s Board of Directors approved an Agreement for Apportionment of Retirement Obligations. All member agencies must mutually agree on the method of apportioning the CalPERS retirement obligations.

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ANALYSIS:

The City agrees with the method of apportioning the CalPERS retirement obligations as recommended and approved by CIRA’s Board of Directors.

Staff recommends that the City Council authorize the Mayor of the City of Rancho Cucamonga to sign CIRA’s Agreement for Apportionment of Retirement Obligations on behalf of the City.

FISCAL IMPACT:

N/A
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:

This item addresses the City Council’s core values, working together cooperatively and respectfully with each other, staff, and all stakeholders, and intentionally embracing and anticipating the future.

ATTACHMENTS:

Attachment 1 – CIRA’s Agreement for Apportionment of Retirement Obligations

Adopted May 20, 2022 1
CIRA
AGRE

EMENT FOR APPORTIONMENT OF

RETIREMENT OBLIGATIONS
Ca
lifornia Intergovernmental Risk Authority

CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY

AGREEMENT FOR APPORTIONMENT OF RETIREMENT OBLIGATIONS
ATTACHMENT 1

Adopted May 20 2022 2
TH
IS AGREEMENT is made in the State of California by and among those municipalities organized and existing under the laws of the State of California, hereinafter referred to as "Member Entity[ies]," which are parties’ signatory to the Joint Powers Authority Agreement hereafter “JPA Agreement. All such Member Entities are listed in Appendix "A", which is attached hereto and made a part hereof.

RECITALS
Whereas the California Intergovernmental Risk Authority (CIRA), formerly the Public A
gency Risk Sharing Authority of California (PARSAC), is an entity formed under California Government Code Section 6500 which permits two or more public agencies by agreement to jointly exercise any power common to the contracting parties.

Whereas the Redwood Empire Municipal Insurance Fund (REMIF) is an entity formed under California Government Code Section 6500 which permits two or more public agencies by agreement to jointly exercise any power common to the contracting parties.

Whereas, the jurisdiction of PARSAC was expanded with the addition of member agencies of REMIF, and its name changed to the California Intergovernmental Risk Authority, effective July 1, 2021.

Whereas, to avoid the involuntary termination of the REMIF CalPERS pension contract as a result of the transfer of all employees to CIRA, the CalPERS pension contract of REMIF was merged into the CIRA CalPERS contract, effective July 1, 2021.

Whereas California Government Code § 6508.2 requires that the member agencies of a joint powers agency (“AGENCY”) that contracts with CalPERS, mutually agree to a 100% apportionment of the AGENCY’s retirement liability prior to the adoption of an notice of termination of the AGENCY’s participation in CalPERS.

Adopted May 20,2022 3
Now, therefore, in consideration of the above facts and the mutual benefits, promises and agreements set forth below, the Member Entities hereby agree as follow:

AGREEMENT

ARTICLE I

DEFINITIONS
The following terms shall have the following definitions:

A. “A greement” shall mean this California Intergovernmental Risk Authority Agreement for Apportionment of Retirement Obligations.

B. “B oard ” or “Board of Directors” shall mean the governing body of CIRA.

C. “CIRA” shall mean the California Intergovernmental Risk Authority created by that certain Joint Powers Agreement dated May 25, 2017, then known as PARSAC, most recently amended effective July 1, 2021 (JPA Agreement).

D. “D eposit Premium ” shall mean the estimated amount determined for each Member Entity necessary to fund each layer of coverage for each Policy Year of each Program of CIRA and REMIF.

E. “Mem ber Entity” shall mean any California public entity which is a party signatory to the JPA Agreement including any other agency for which the governing body of the Member Entity sits as the governing board of such other agency.

F. “P rogram Year ” shall mean a period of time, usually 12 months, for which each Program is to determine Deposit Premiums, Retrospective Premiums, and Retrospective Premium Adjustments.

G. “Program” shall mean arrangements to cover specific types of claims which may include, but not be limited to, property, workers' compensation, and comprehensive liability claims.

Adopted May 20, 2022 4
H. “Public Entity” shall mean a county, city, whether general law or chartered, city and county, town, district, political subdivision, joint powers authority, or any board, commission, or agency thereof providing a municipal service, excluding school districts.

I. “CalPERS” s hall mean California Public Employees’ Retirement System.

J. “Retirement Liability” shall mean the liability that CIRA possesses to all former or current employees of CIRA for retirement benefits owed to them pursuant to a contract between CIRA and CalPERS and arising by reason of those employees participation in CalPERS calculated on a terminated basis pursuant to sections 20570 -20593 of the Government Code.

K. “Retrospective Premium ” shall mean, the amount determined retrospectively as each Member Entity's share of losses, reserves, expenses and interest income as may be determined periodically for any Program.

L. “Retrospective Premium Adjustment” shall mean the amount necessary to periodically adjust the Deposit Premium, or prior Retrospective Premiums if any, to the newly calculated Retrospective Premium amount.

ARTICLE II
P

ARTIES TO THE AGREEMENT
Each Member Entity is a party to this Agreement . Each Member Entity also agrees that the expulsion or withdrawal of any Member Entity from the JPA Agreement shall not affect this Agreement nor the remaining parties as to the other Member Entities then remaining.

Adopted May 20, 2022 5
ART

ICLE III

PURPOSE
This Agreement is entered into by the Member Entities in order to:

A. Provide for an apportionment among current and former CIRA and REMIF Member Entities of 100% of CIRA’s Retirement Liability consistent with the requirements of Government Code sections 6508.1 and 6508.2 as enacted and amended effective January 1, 2019. The Member Entities of CIRA, as of the date of this Agreement, are set forth in Appendix A. The following are set forth in Appendix B:
• Former Member Entities of CIRA on or after July 1, 2021; • Members of CIRA prior to July 1, 2021; and
• Members of REMIF prior to July 1, 2021 .

B. The debts, liabilities or obligations incurred by either PARSAC or REMIF prior to July 1, 2021 shall not constitute the debts, liabilities or obligations of the other.

Notwithstanding the preceding, CIRA is the successor to the CalPERS pension obligations of REMIF pursuant to California Government Code section 20508. As such, the liability to CalPERS with respect to service credited under REMIF’s CalPERS contract, and the continuing liability to CalPERS of CIRA with respect to service credit accrued both prior to and after July 1, 2021 under CIRA’s CalPERS contract, shall be the contractual liability of CIRA. Periodically, but not more than every three years, CIRA will retain an actuary to determine the share of the estimated termination liability of CIRA which is allocable to CIRA and REMIF for service accrued prior to July 1, 2021. The allocation of liability, and

Adopted May 20, 2022 6
t
he payment of related contributions, with respect to service credit accrued prior to July 1, 2021 and thereafter is set forth below.

ARTICLE IV

METHOD OF APPORTIONMENT OF RETIREMENT LIABILITY
A. In the event of a decision by the governing Board of CIRA to adopt a notice of intent to terminate its contract with CalPERS, the Member Entities agree that 100% of CIRA’s Retirement Liability shall be funded by all current and former CIRA, and REMIF Member Entities based on a pro rata share of the former and current Member Entities’ historical Deposit Premium in the Workers’ Compensation and Liability self-funded Programs. The apportionment of the Retirement Liability shall be calculated as set forth above, and the unfunded Retirement Liability then existing shall be paid as follows: The unfunded Retirement Liability then existing shall be paid prior to any distribution of assets as provided in ARTICLE XIV and XV of the JPA Agreement and prior to the payment of any equity that may be determined as the result of the Retrospective Premium Adjustment process as set forth in ARTICLE XIV. (For example, should a Member Entity have remaining equity in either the Workers’ Compensation or Liability program, at the time of CIRA’s dissolution or CIRA’s termination of CIRA’s contract with a public retirement system, the Member Entity’s equity shall first be applied to reduce that Member Entity’s share of the apportionment of the Unfunded Retirement Liability.)
B. Any unfunded Retirement Liability allocated to CIRA for serviced accrued prior to July 1, 2021, shall first be reduced by applying the proceeds from the sale of real property identified as 1525 Response Road, Sacramento, CA, 95815 (the “CIRA Property”) as provided in

Adopted May 20, 2022 7
R
esolution No. 2019-03, attached hereto as Exhibit C, prior to the determination of the amounts owed by the members of CIRA prior to July 1, 2021 under the apportionment provided herein.

In the event that REMIF disposes of the real property identified as 414 West Napa Street, Sonoma, CA 95476 (REMIF Property), any unfunded Retirement Liability allocated to REMIF for service accrued prior to July 1, 2021 shall first be reduced by applying the proceeds from the sale of the REMIF Property as provided in Resolution 2019-03, attached hereto as Exhibit C , prior to the determination of the amounts owed by the members of REMIF prior to July 1, 2021 under the apportionment provided herein.

C. The apportionment of the Retirement Liability of CIRA among the former and current members of CIRA and REMIF, as identified in Appendix A and B, and the obligation to pay their share of the CIRA Retirement Liability as provided herein, shall be a separate and independent obligation from the obligation of the Member Entities arising upon termination, expulsion or withdrawal of a Member Entity or upon termination of the JPA Agreement including but not limited to ARTICLES XII, XIII, XIV, and XV of that Agreement.

ARTICLE V

TERM OF AGREEMENT
This Agreement shall become effective as of the date hereof and shall continue in full force and effect for the purpose of paying 100% of the Retirement Liability of CIRA pursuant to the apportionment among former and current members of CIRA and REMIF, as identified in Appendix A and B,, as provided for herein.

Adopted May 20, 2022 8
ART

ICLE VI

SEVERABILITY
Should any portion, term, condition or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions and provisions shall not be affected thereby.

ART

ICLE VII

AGREEMENT COMPLETE
The foregoing constitutes the full and complete agreement of the parties. There are no oral understandings or agreements not set forth in writing herein, except as noted with respect to the Bylaws and Memoranda of Coverage. If any provision of this Agreement conflicts with a provision of the Bylaws, Memoranda of Coverage or other document, such conflicting provisions shall be interpreted to avoid any such conflict, but this Agreement shall govern.

ARTICLE VIII

AMENDMENTS
This Agreement may be amended by a two -thirds vote of the Board present and voting at any duly convened regular or special meeting; provided that, any such amendment has been submitted to the directors and the Member Entities at least thirty [30] days in advance of such meeting. Member Entities may, by resolution or ordinance, grant their director and alternate on the Board explicit authorization to approve and execute amendments to this Agreement on behalf of the Member Entity without the necessity of a resolution or ordinance of the legislative body of the

Adopted May 20, 2022 9
M
ember Entity confirming or ratifying such amendment. Any such amendment shall become effective immediately, unless otherwise stated therein.

ART

ICLE IX

EXECUTION OF COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but altogether shall constitute one and the same Agreement.

California Intergovernmental Risk Authority [“CIRA’]
D
ate: By: ________________________________
CIRA General Manager
Attest: ______________________________
CIRA Deputy Secretary
M
ember Entity: _______________________
D
ate: By: ________________________________
Name/Title
A
ttest: ______________________________
City/Town Clerk

Adopted May 20, 2022 10
AP

PENDIX A
C

ALIFORNIA INTERGOVERNMENT RISK AUTHORITY
(
CIRA)
M

EMBER ENTITIES
C
ity of Amador City
City of Arcata
City of Avalon
City of Belvedere
City of Blue Lake
City of California City
City of Calimesa
City of Calistoga
City of Citrus Heights
City of Clearlake
City of Cloverdale
City of Coalinga
City of Cotati
City of Eureka
City of Ferndale
City of Fort Bragg
City of Fortuna
City of Grass Valley
City of Healdsburg
City of Highland
City of Lakeport
City of Menifee
City of Nevada City
City of Placentia
City of Placerville
City of Plymouth
City of Point Arena
City of Rancho Cucamonga
Rancho Cucamonga Fire Protection District
City of Rancho Santa Margarita
City of Rohnert Park
City of San Juan Bautista
City of Sebastopol
City of Sierra Madre
City of Sonoma
City of St. Helena
City of South Lake Tahoe
City of Tehama

Adopted May 20, 2022 11
C
ity of Trinidad
Town of Truckee
City of Twentynine Palms
City of Ukiah
City of Watsonville
City of Wheatland
City of Wildomar
City of Wilits
City of Windsor
Town of Yountville
City of Yucaipa
Town of Yucca Valley

Adopted May 20, 2022 12
AP
PENDIX “B”
P

UBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA
[PARSAC]

MEMBER ENTITIES
C
ity of Amador City
City of Avalon
City of Belvedere
City of Blue Lake
City of California City
City of Calimesa
City of Calistoga
City of Citrus Heights
City of Clearlake
City of Coalinga
City of Ferndale
City of Grass Valley
City of Highland
City of Menifee
City of Nevada City
City of Placentia
City of Placerville
City of Plymouth
City of Point Arena
City of Rancho Cucamonga
Rancho Cucamonga Fire Protection District
City of Rancho Santa Margarita
City of San Juan Bautista
City of South Lake Tahoe
City of Tehama
City of Trinidad
Town of Truckee
City of Twentynine Palms
City of Watsonville
City of Wheatland
City of Wildomar
Town of Yountville
City of Yucaipa
Town of Yucca Valley

Adopted May 20, 2022 13
RE

DWOOD EMPIRE MUNICIPAL INSURANCE FUND
(REMIF)
City
of Arcata
City of Cloverdale
City of Cotati
City of Eureka
City of Fort Bragg
City of Fortuna
City of Healdsburg
City of Lakeport
City of Rohnert Park
City of Sebastopol
City of Sonoma
City of St. Helena
City of Ukiah
City of Willits
City of Windsor
APP
ENDIX “B”
PUB

LIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA
[PARSAC]

FORMER MEMBER ENTITIES
City
of Alturas
City of Canyon Lake
City of Carlsbad
City of Elk Grove
City of Hesperia
City of Pacific Grove
City of Rialto
City of Ridgecrest
City of Rio Dell
City of West Hollywood
RE

DWOOD EMPIRE MUNICIPAL INSURANCE FUND
(RE
MIF)
City
of Crescent City

APPENDIX C

DATE:August 17, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY: Robert Neiuber, Human Resources Director
Lucy Alvarez-Nunez, Management Analyst I
SUBJECT: Consideration of Amendment No. 1 to the Professional Services Agreement with NEOGOV for Applicant Tracking Software in the Amount of $66,800. (CITY).

RECOMMENDATION:

Staff recommends that the City Council approve Amendment No. 1 to the Professional Services Agreement with NEOGOV, contract# 17-199, for applicant tracking software in the amount of $66,800, extending the contract to August 8, 2023.

BACKGROUND:

In July 2017, the City Council approved a 5-year Professional Services Agreement (PSA) with NEOGOV, a leading public sector applicant tracking software. NEOGOV services provide the City with a comprehensive applicant tracking, onboarding, performance management, and learning management system that has a significant impact on the day-to-day efficiency of many Human Resources functions. The current professional services agreement ends in August 2022.

ANALYSIS:

NEOGOV continues to meet the needs of the Human Resources Department allowing the efficient management of its various HR functions. Staff would like to extend the contract for an additional year of service from August 9, 2022, through August 8, 2023. The cost of the additional year is $66,800.

Staff recommends that the City Council approve the attached Amendment No. 1 to the Professional Services Agreement with NEOGOV extending the contract one-year effective August 8, 2022, in the amount of $66,800 for FY 2022/23. Amendment No. 1 is on file in the City Clerk’s Office.

FISCAL IMPACT:

This proposed cost was accounted for in the FY 2022/23 budget.

COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:

This item addresses the City Council’s core values of continuous improvement and intentionally embracing and anticipating the future.

ATTACHMENTS:

None.

DATE:August 17, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY: Jason C. Welday, Director of Engineering Services/City Engineer Linda Ceballos, Environmental Programs Manager
SUBJECT: Consideration to Approve Second Amendment to the Integrated Solid Waste Management Agreement between the City of Rancho Cucamonga and Burrtec Waste Industries, Inc., to Incorporate Senate Bill 1383 Requirements. (CITY)
RECOMMENDATION:

Staff recommends that the City Council approve the proposed second amendment to the integrated solid waste management agreement between the City of Rancho Cucamonga and Burrtec Waste Industries, Inc. (Burrtec) to incorporate Senate Bill 1383 requirements.

BACKGROUND:

Senate Bill 1383 (SB1383) was signed into law in September 2016 to help reduce short-lived climate pollutants and address climate change. California Department of Resources Recycling and Recovery (CalRecycle) has found that 50% of the waste California disposes in landfills is organic waste. According to CalRecycle, 20% of California’s methane emissions come from landfills and organics such as food scraps, yard trimmings, paper, and cardboard. The state legislature and CalRecycle see SB1383 as an opportunity for implementing widespread change and reduction in short-lived climate pollutants. To meet the statewide goal of reducing 75% of organic waste disposal by 2025, the state developed regulations that require local jurisdictions to adopt and enforce organic waste recycling beginning January 1, 2022.

The City Council recently adopted Ordinance 989, adding Chapter 8.15 (Mandatory Organics Waste Disposal Reduction) to Title 8 Health and Safety of the Rancho Cucamonga Municipal Code, incorporating the requirements of SB1383. In addition to the ordinance, some of the SB 1383 requirements have already been implemented, including mandatory food waste recycling for businesses and procurement of recycled organic products, like mulch and compost, in City landscape areas.

Some of the new programs the City is now required to implement for SB1383 compliance include residential collection of food waste for both single-family and multi-family residents, a new procurement policy to include specific tracking and record keeping requirements for procurement of recycled organic waste products, and edible food recovery program for Tier I and Tier II edible food generators. Additionally, the City is required to implement expanded record keeping, enforcement, route reviews, waste audits, and outreach and education. Many of these services require additional efforts by Burrtec, the City’s franchise waste hauler.

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As a result of the new requirements, Burrtec submitted a written request to the City for adjustment of rates and an amendment to the franchise agreement to incorporate SB1383 requirements.

Some of the key items in the proposed amendment include:
•Residential food waste collection services for single-family and multi-family residents. •Additional container sizes for low-volume food waste generators. •A request for an off-cycle rate adjustment in 2022 for SB 1383 related costs. •A change to the rate methodology.
•A new SB 1383 compliance fee incorporated into the rates. •A new Disposal and Processing Cost Study and Analysis process to be conducted.

ANALYSIS:

Burrtec’s request for an amendment to the agreement was prompted by the prescriptive requirements of SB 1383 and the City’s obligation to be in compliance with the regulation. The City conducted a residential food waste pilot in May 2021 to gather data on the organic waste generated and test the processes for its collection and processing, however, expansion of the program for all residents as required by SB 1383 requires a revision to the franchise agreement and rates for the increased cost of processing. Commercial food waste collection has been in place since 2011, however, the current commercial rates only cover cost of collection and disposal, and do not include SB 1383 related requirements, such as edible food recovery program, procurement requirements, expanded record keeping, route reviews, or expanded education and outreach. Because SB 1383 requirements are new, there is still uncertainty regarding the costs associated with implementing the requirements, as well as the stability of the processing costs. The City and Burrtec have had extensive discussions related to cost impacts of SB 1383 and the challenges of the current rate methodology. The result of those discussions have been incorporated into the proposed amendment. Key elements of the amendment are described below:

Residential Food Waste Collection
SB 1383 requires the City to provide food and landscape waste collection service to all residential customers. The proposed amendment includes implementation of residential food waste collection for residents as follows:
•Single family residents with three carts (one for trash, one for recycling, and one for landscape waste) will collect food waste separately, place it in a plastic bag, and then place the bagged food waste in the green cart for collection with landscape waste. •Single-family and Multi-family residents with two carts (one for trash and one for recycling) will be provided with a green cart for collection of bagged food waste along with any plant or landscape waste.
•Multi-family complexes with bin service for trash and recycling will be provided with a cart(s) for the collection of food waste.
•After collection, the bagged food waste will be separated from the landscape waste at the material processing facility. Food waste will be processed into compost and landscape waste will be processed into mulch.

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This methodology for collection and processing of food waste was selected after a review of options that would meet the requirements of SB 1383. This alternative reduces the number of carts needed in residential areas for separate collection while also seeking to minimize the cost for processing. Given the large volume of landscape waste generated in the City, mixing food waste directly with the traditional green waste would dramatically increase the processing costs as the entire combined volume would need to be processed as food waste at a much higher per ton cost.

Edible Food Recovery
Edible food waste is generated in every community. However, food recovery organizations typically work on a regional basis to find organizations to accept the edible food waste for distribution and use. As a result, the amendment, if approved, would make Burrtec responsible for contracting with an experienced edible food recovery organization to meet the requirements of SB 1383. This approach is more cost effective than the City seeking to provide this service on its own since Burrtec is the franchise hauler for most cities in close proximity to Rancho Cucamonga. Funding for the contract would be included in the SB 1383 Compliance Fee as described in this report.

Procurement of Recovered Organic Waste Products
The City currently obtains recovered organic waste products in the form of mulch and compost from Burrtec. SB 1383 includes some additional requirements related to the procurement of recovered organic waste products, which include record keeping, providing authority to a direct service provider, such as the waste hauler, to procure recovered organic products on behalf of the City, and procurement of a specific amount of recovered organic waste products. Funding for procurement requirements and recovered organic waste products would be included in the proposed SB 1383 Compliance Fee.

Expanded Record Keeping
SB 1383 has specific requirements for record keeping that are expanded beyond what is currently required for waste diversion programs. Burrtec currently provides many record keeping functions for the waste diversion program and thus the City has elected to include the expanded record keeping requirements in the amendment as an expansion of the services already provided. Burrtec will be utlilizing software designed for this purpose. Funding for the expanded record keeping requirements would be included in the proposed SB 1383 Compliance Fee.

Route Reviews
There are a considerable number of route reviews required by SB 1383 to reduce contamination of organics and recyclables, as well as to ensure that organics are not ending up in the trash. Burrtec is currently responsible for route reviews in the current franchise agreement, therefore the expanded route reviews are included in the amendment. Funding for the additional route reviews is included in the proposed SB 1383 Compliance Fee.

Expanded Outreach and Education
SB 1383 requires additional outreach and education for residents, businesses, and edible food generators beyond what is in the current franchise agreement. The additional SB 1383 required outreach is included in the amendment and will be funded by the proposed SB 1383 Compliance Fee.

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Rates
Costs for the additional services required to be provided by Burrtec under SB 1383 have not been included in the current rate schedule. Further, the existing rate structure, methodology, and rate period in the Burrtec agreement do not provide the ability to address the added costs to comply with the new SB 1383 requirements. Therefore, it is necessary to adjust the rate methodology and structure to fund the additional SB 1383 requirements, including the implementation of residential food waste collection for all residents. The following changes to the existing rate structure, methodology and rate period are recommended in the proposed amendment:

Off Cycle Rate Adjustment in 2022
The proposed amendment includes an off-cycle rate adjustment in 2022 to adjust rates to include residential and multi-family food waste collection, adjust landfill and disposal costs, add the new SB1383 fee and new services related to SB1383 requirements, and adjust the HHW fee. It should be noted that the off-cycle rate adjustment does not include adjustments to Burrtec’s direct service costs such as labor and equipment to providing and managing hauling services.

SB 1383 Compliance Fee
The SB 1383 fee would cover the costs of the SB 1383 requirements that are not service related, such as, edible food recovery program, procurement of recovered organic products, outreach, record keeping, and enforcement. Due to the unknown nature of starting a new citywide program with limited historical information, the SB 1383 fee has been estimated and will be adjusted in future rate reviews as more information is available.

The SB 1383 fee does not include costs for hauling, disposal, and processing of organic products, which because of their nature are included in the solid waste service component and disposal and processing cost components of the rate.

HHW Fee
The proposal includes an increase to the Household Hazardous Waste Disposal Fee, from

0.75% to 1.75%. The 1% increase would offset the costs associated with the growing cost of household hazardous waste disposal. This program has been successfully utilized by hundreds of residents each week for many years and works to eliminate illegal dumping and improper disposal of hazardous waste products from homes in the City, resulting in safer and healthier living for City residents.

Rate Period
The amendment maintains the 24-month rate review cycle but would permit Burrtec to request an additional increase for each upcoming off-cycle year based on projected cost increases. Each 24-month rate review would include a look-back review to determine if the immediate prior mid-cycle increase aligned with actual cost increases for that year.

Any variation found in the look-back review would be accounted for in the next rate review.

Rate Methodology
The proposed methodology for calculating rates includes the pass through of landfill, disposal costs, franchise fee and HHW fee. The rate review methodology would also include the previously mentioned look-back provision on the disposal and processing costs as well as the SB 1383 fee, at the start of each rate review period Rate stabilization and carry forward of previously capped disposal and processing costs would be eliminated as unnecessary with the removal of the cap on these elements of the rate. The 2023 rate packet would include 2023 actual increases and 2024 estimates for Proposition 218 public hearing process.

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New Disposal and Processing Fee Study/Analysis
As a result of the proposed changes to the rate methodology, the Extraordinary Rate Request process, which applied a cap on the disposal and processing fees but allowed exceedance of the cap under certain conditions, is proposed to be replaced with a requirement to conduct a disposal and processing cost study no less than every five years. The cost of the study will be conducted by a consultant of the City’s choosing and Burrtec would reimburse the City for the cost.

A rate hearing as required by state law is included on this evening’s agenda to consider an off cycle rate adjustment as described in this proposed amendment.

The proposed second amendment was reviewed by City staff and the City Attorney for compliance with SB 1383 requirements. Additionally, a third-party consultant reviewed the proposed rate methodology to ensure accuracy. Lastly, the Public Works Subcommittee reviewed the amendment and SB 1383 rate adjustments on June 21, 2022.

FISCAL IMPACT:

There are no direct budget impacts as a result of this item. However, the increase in the Household Hazardous Waste fee will partially offset costs associated with managing the facility.

COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:

The agreement would meet the City Council’s goal of intentionally embracing and anticipating the future, by actively providing the opportunity to recycle food waste, and meeting the state’s requirements.

ATTACHMENTS:

Attachment 1 - Second Amendment to Integrated Solid Waste Management Agreement

1 SECOND AMENDMENT TO AGREEMENT

BETWEEN THE

CITY OF RANCHO CUCAMONGA
AND
BURRTEC WASTE INDUSTRIES, INC.

FOR

INTEGRATED SOLID WASTE MANAGEMENT SERVICES
This Second Amendment to the Agreement for Integrated Solid Waste Management Services (the “Second Amendment”) is entered into this [____] day of [_________], 2022, by and between the City of Rancho Cucamonga (the “City”) and Burrtec Waste Industries, Inc. (“Contractor”) (collectively “Parties,” or individually “Party”).

RECITALS
WHEREAS, the City and Contractor previously entered into that certain Agreement for Integrated Solid Waste Management Services dated 15 th day of June, 2016 the “Agreement”, including amendments thereto; and,
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 handling within their jurisdictions; and, WHEREAS, the State of California has found and declared that the amount of Solid Waste generated in California, coupled with diminishing Disposal capacity and interest in minimizing potential environmental impacts from landfilling and the need to conserve natural resources, have created an urgent need for State and local agencies to enact and implement an aggressive integrated waste management program. The State has, through enactment of AB 939 and subsequent related legislation including, but not limited to: the Jobs and Recycling Act of 2011 (AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), SB 1016 (Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383), directed the responsible State agency, and all local agencies, to promote a reduction in Landfill Disposal and to maximize the use of feasible waste reduction, reuse, recycling, and composting options in order to reduce the amount of material that must be disposed; and,
WHEREAS, SB 1383 establishes regulatory requirements for jurisdictions, generators, haulers, Solid Waste facilities, and other entities to support achievement of State-wide Organic Waste Disposal reduction targets; and
WHEREAS, SB 1383 Regulations require the City of Rancho Cucamonga to implement collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements; and, the City of Rancho Cucamonga has chosen to delegate some ATTACHMENT 1

2 of its responsibilities to the Contractor, acting as the City’s designee, and Contractor desires to take on these responsibilities; and
WHEREAS, the City and Contractor desire to amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the promises above stated and the terms, conditions, covenants, and agreements contained herein, the Parties do hereby agree as follows:

AMENDMENT

1. Article 1 “Definitions” of the Agreement is hereby amended by the addition of the following definitions.
“Back-Haul” means generating and transporting Organic Waste to a destination owned and operated by the Generator using the Generator’s own employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A).
“Black Container” has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used only for the purpose of storage and collection of Black Container Waste. Notwithstanding the foregoing, functional containers purchased prior to January 1, 2022, that are used for the storage and collection of Black Container Waste and that do not comply with the color requirements of 14 CCR Section 18982(a)(28) shall be deemed to be Black Containers and are not required to be replaced until the end of the useful life of those containers or January 1, 2036, whichever is earlier.
“Black Container Waste” means Solid Waste that is collected in a Black Container that is part of the City’s three-container Organic Waste collection service that prohibits the placement of Organic Waste in the Black Container as specified in 14 CCR Sections 18984.1(a) and (b); or, as otherwise defined in 14 CCR Section 17402(a)(6.5). Notwithstanding the preceding sentence, Black Container Waste includes carpets and textiles.
“Blue Container” has the same meaning as in 14 CCR Section 18982(a)(5) and shall be used only for the purpose of storage and Collection of Source Separated Recyclable Materials Notwithstanding the foregoing, functional containers purchased prior to January 1, 2022 that are used for the storage and collection of Source Separated Recyclable Materials and that do not comply with the color requirements of 14 CCR Section 18982(a)(5) shall be deemed to be Blue Containers and are not required to be replaced until the end of the useful life of those containers or January 1, 2036, whichever is earlier. “Brown Container” has the same meaning as in 14 CCR Section 18982(a)(5.5) and shall be used only for the purpose of storage and collection of Source Separated Food Waste. Notwithstanding the foregoing, functional containers purchased prior to January 1, 2022 that are used for the storage and collection of Source Separated Food Waste and that do not comply with the color requirements of 14 CCR Section 18982(a)(5.5) shall be deemed to be Brown Containers and are not required to be replaced until the end of the useful life of those containers or January 1, 2036, whichever is earlier.

3 “California Code of Regulations” or “CCR” means the State of California Code of Regulations. CCR references in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR refers to Title 14 of the CCR).
“CalRecycle” means California's Department of Resources Recycling and Recovery, which is the Department designated with responsibility for developing, implementing, and enforcing SB 1383 Regulations on the City and others. “Commercial Edible Food Generators” includes a Tier One or Tier Two Commercial Edible Food Generator, as defined herein. For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators pursuant to 14 CCR Section 18982(a)(7). “Compostable Plastics” or “Compostable Plastic” means plastic materials that meet the ASTM D6400 standard for compostability, or as otherwise described in 14 CCR Section 18984.1(a)(1)(A) or 18984.2(a)(1)(C). “Compost” means the product resulting from the controlled biological decomposition of organic Solid Wastes that are Source Separated from the municipal solid waste stream, as specified in 14 CCR Section 17896.2(a)(4). “Diversion (or any variation thereof including “Divert”)” means activities which reduce or eliminate Discarded Materials from Disposal, including, but not limited to, source reduction, Reuse, salvage, Recycling, and composting. “Edible Food” means food intended for human consumption; or, as otherwise defined in 14 CCR Section 18982(a)(18). For the purposes of this agreement or as otherwise defined in 14 CCR Section 18982(a)(18), “Edible Food” is not Solid Waste if it is recovered and not discarded. Nothing in this chapter or in 14 CCR, Division 7, Chapter 12 requires or authorizes the Recovery of Edible Food that does not meet the food safety requirements of the State Retail Food Code. “Excluded Waste” means hazardous substance, hazardous waste, infectious waste, designated waste, volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that facility operator(s), which receive materials from the City and its Generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be disposed of in Class III landfills or accepted at the facility by permit conditions, waste that in the City’s Enforcement Official’s or its Designee’s, reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose the City, or its Designee, to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe collection, processing, recycling, treatment, and disposal of batteries and paint in compliance with Sections 41500 and 41802 of the State Public Resources Code.

4 “Food Recovery” means actions to collect and distribute food for human consumption which otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
“Food Recovery Organization” unless otherwise defined in 14 CCR Section 18982(a)(25), means an entity that engages in the collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities, including, but not limited to:

1. A food bank as defined in Section 113783 of the Health and Safety Code;

2. A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code; and,

3. A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code.

A Food Recovery Organization is not a Commercial Edible Food Generator for the purposes of this agreement and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).
“Food Recovery Service” means a person or entity that collects and transports Edible Food from a Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery; or, as otherwise defined in 14 CCR Section 18982(a)(26). A Food Recovery Service is not a Commercial Edible Food Generator for the purposes of this agreement and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).
“Food Scraps” means all food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes fats, oils, grease, and liquids, including, but not limited to broth and beverages, when such materials are Source Separated from other Food Scraps
“Food-Soiled Paper” means compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons. “Food Waste” means all food and food scraps such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells Food Waste excludes fats, oils, liquids, and grease when such materials are Source Separated from other Food Waste. Food Waste is a subset of Source Separated Green Container Organic Waste. Edible Food separated for Food Recovery shall not be considered Food Waste. “Gray Container” has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used for the purpose of storage and Collection of Gray Container Waste. Notwithstanding the foregoing, functional containers purchased

5 prior to January 1, 2022 that are used for the storage and collection of Gray Container Waste and that do not comply with the color requirements of 14 CCR Section 18982(a)(28) shall be deemed to be Gray Containers and are not required to be replaced until the end of the useful life of those containers or January 1, 2036, whichever is earlier.
“Gray Container Waste” means Solid Waste that is collected in a Gray Container as specified in 14 CCR Sections 18984.1(a) and (b), or as otherwise defined in 14 CCR Section 17402(a)(6.5). Notwithstanding the preceding sentence, Gray Container Waste includes carpets and textiles. “Green Container” has the same meaning as in 14 CCR Section 18982(a)(29) and shall be used only for the purpose of storage and collection of Source Separated Green Container Organic Waste. Notwithstanding the foregoing, functional containers purchased prior to January 1, 2022, that are used for the storage and collection of Source Separated Green Container Organic Waste and that do not comply with the color requirements of 14 CCR Section 18982(a)(29) shall be deemed to be Green Containers and are not required to be replaced until the end of the useful life of those containers or January 1, 2036, whichever is earlier.
“Hauler Route(s)” means the designated itinerary or sequence of stops for each segment of the City’s collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5).
“Landscape Waste” means tree and shrubbery trimmings, vegetation from land clearing, grass cuttings, leaves, garden organic materials, sawdust, straw, wood chips and other discarded plant or vegetation material. “Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event; or, as otherwise defined in 14 CCR Section 18982(a)(38).
“Large Venue” unless otherwise defined in 14 CCR Section 18982(a)(39), means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of this agreement and implementation of 14 CCR, Division 7, Chapter 12, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of this chapter and implementation of 14 CCR, Division 7, Chapter 12, a site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue.

6 “Local Education Agency” means a school district, charter school, or county office of education that is not subject to the control of the City’s regulations related to Solid Waste; or, as otherwise defined in 14 CCR Section 18982(a)(40). “Multi-Family Residential Dwelling(s)” or “Multi-Family” means of, from, or pertaining to residential premises with five (5) or more dwelling units. Multi-Family premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses.
“Non-Compostable Paper” includes, but is not limited to, paper that is coated in a plastic material that will not breakdown in the composting process, or as otherwise defined in 14 CCR Section 18982(a)(41).
“Non-Local Entity” means the following entities that are not subject to the City’s enforcement authority; or, as otherwise defined in 14 CCR Section 18982(a)(42):

1. Special district(s) located within the jurisdictional boundaries of the City;

2. Federal facilities, including military installations, located within the jurisdictional boundaries of the City;

3. Prison(s) located within the jurisdictional boundaries of the City;

4. Facilities operated by the State Park system located within the jurisdictional boundaries of the City;

5. Public universities (including community colleges) located within the jurisdictional boundaries of the City;

6. County fairgrounds located within the jurisdictional boundaries of the City; and

7. State agencies located within the jurisdictional boundaries of the City.
“Non-Organic Recyclables” means non-putrescible and non-hazardous recyclable wastes including, but not limited to, bottles, cans, metals, plastics and glass; or, as otherwise defined in 14 CCR Section 18982(a)(43). “Notice of Violation” or “NOV” means a notice that a violation has occurred that includes a compliance date to avoid an action to seek penalties; or, as otherwise defined in 14 CCR Section 18982(a)(45) or further explained in 14 CCR Section 18995.4.
“Organic Waste” means Solid Wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, yard trimmings, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges, or as

7 otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a).
“Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise defined in 14 CCR Section 18982(a)(51). “Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined in 14 CCR Section 18982(a)(54).
“Processing” means the controlled separation, recovery, volume reduction, conversion, or Recycling of Solid Waste including, but not limited to, organized, manual, automated, or mechanical sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or includes the use of conveyor belts, sorting lines, or volume reduction equipment, or as otherwise defined in 14 CCR Section 17402(a)(20).
“Prohibited Container Contaminants” unless otherwise defined in 14 CCR Section 18982(a)(55), means the following:

1. Discarded materials placed in the Blue Container that are not identified by the City as acceptable Source Separated Recyclable Materials for the Blue Container;

2. Discarded materials placed in the Brown Container that are not identified as acceptable Food Waste for the City’s Brown Container;

3. Discarded materials placed in the Green Container that are not identified by the City as acceptable Source Separated Green Container Organic Waste for the Green Container, including carpet, hazardous wood waste and Non- Compostable Paper;

4. Discarded materials placed in the Black Container that are identified by the City as acceptable Source Separated Recyclable Materials to be placed in the Blue Container or Source Separated Organic Waste to be placed in the City’s Green and/or Brown Container; and,

5. Excluded Waste placed in any container.
“Recovery” means any activity or process described in 14 CCR Section 18983.1(b); or, as otherwise defined in 14 CCR Section 18982(a)(49). “Recycle” or “Recycling” means the process of Collecting, sorting, cleansing, treating, and reconfiguring materials for the purpose of returning them to the economic mainstream in the form of raw material for new, Reused, or reconstituted products that meet the quality standards necessary to be used in the

8 marketplace. Recycling includes processes deemed to constitute a reduction of Landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or transformation as defined in Public Resources Code Section 40201.
“Recycled-Content Paper” means Paper Products and Printing and Writing Papers that consist of at least 30 percent, by fiber weight, postconsumer fiber; or, as otherwise defined in 14 CCR Section 18982(a)(61).
“Restaurant” means an establishment primarily engaged in the retail sale of food and drinks for on-premises or immediate consumption; or, as otherwise defined in 14 CCR Section 18982(a)(64).
“Reuse” or any variation thereof, means the use, in the same, or similar, form as it was produced, of a material which might otherwise be discarded, or as otherwise defined in 14 CCR Section 17402.5(b)(2).
“SB 1383” means Senate Bill 1383 of 2016 approved by the Governor of the State on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the State Health and Safety Code, and added Chapter

13.1 (commencing with Section 42652) to Part 3 of Division 30 of the State Public Resources Code, establishing methane emissions reduction targets in a Statewide effort to reduce emissions of short-lived climate pollutants. “SB 1383 Regulations” or “SB 1383 Regulatory” means the Short-Lived Climate Pollutants: Organic Waste Reduction regulations developed by CalRecycle and adopted in 2020 that created 14 CCR, Division 7, Chapter 12 and amended portions of 14 CCR and 27 CCR.
“Self-Hauler” or “Self-Haul” means a person, who, in compliance with all applicable requirements of the City Code, hauls Solid Waste, Organic Waste or recyclable material he or she has generated directly to the appropriate facility, as required by SB 1383 Regulations. Self-hauler also includes a person who Back- Hauls waste, or as otherwise defined in 14 CCR Section 18982(a)(66). “Service Level” refers to the number and size of a Customer’s Container(s) and the frequency of Collection service, as well as ancillary services such as lock/unlock service, Container push/pull service, etc.
“Single-Family” means of, from, or pertaining to any residential premises with fewer than five (5) units.
“Solid Waste” unless otherwise defined in State Public Resources Code Section 40191, means all putrescible and non-putrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, 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 semisolid wastes, with the exception that Solid Waste does not include any of the following wastes:

9 1. Hazardous waste, as defined in the State Public Resources Code Section 40141;

2. Radioactive waste regulated pursuant to the Radiation Control Law (Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of the State Health and Safety Code); and,

3. Medical waste regulated pursuant to the Medical Waste Management Act (Part 14 (commencing with Section 117600) of Division 104 of the State Health and Safety Code). Untreated medical waste shall not be disposed of in a Solid Waste landfill, as defined in State Public Resources Code Section 40195.1. Medical waste that has been treated and deemed to be Solid Waste shall be regulated pursuant to Division 30 of the State Public Resources Code.
“Source Separated” means materials, including commingled recyclable materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or processing those materials for recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products, which meet the quality standards necessary to be used in the marketplace; or, as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of this agreement, Source Separated shall include separation of materials, at the point of generation, by the Generator, property owner, property owner’s employee, property manager, or property manager’s employee into different containers for the purpose of collection such that Source Separated materials are separated from Black Container Waste, Gray Container Waste or other Solid Waste for the purposes of collection and processing of those materials.
“Source Separated Blue Container Organic Waste” means Source Separated Organic Waste that can be placed in a Blue Container that is limited to the collection of that Organic Waste and Non-Organic Recyclables. Source Separated Blue Container Organic Waste includes Paper Products, Printing and Writing Papers, unless otherwise specified by the City, but excludes Source Separated Green Container Organic Waste and Food Waste. “Source Separated Green Container Organic Waste” means Source Separated Organic Waste that can be placed in a Green Container that is limited to the collection of that Organic Waste; or as otherwise specified in 14 CCR 18984.1 (a) and (b), excluding Source Separated Blue Container Organic Waste, carpets, Non-Compostable Paper, and textiles. For purposes of Single-Family Generators, Source Separated Green Container Organic Waste includes Food Waste. For purposes of Commercial Businesses, including Multi-Family Residential Dwellings, Source Separated Green Container Organic Waste excludes Food Waste.
“Source Separated Recyclable Materials” means Source Separated Non- Organic Recyclables and Source Separated Blue Container Organic Waste.

10 “Standard Compliance Approach” means the method for complying with the SB 1383 Regulations through implementation of a collection system pursuant to 14 CCR, Division 7, Chapter 12, Article 3, and all associated program and policy requirements.
“State” means the State of California.
“Supermarket” means a full-line, self-service retail store with gross annual sales of two million dollars ($2,000,000), or more, and which sells a line of dry grocery, canned goods, or nonfood items and some perishable items; or, as otherwise defined in 14 CCR Section 18982(a)(71).“Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982(a)(73):

1. Supermarket;

2. Grocery Store with a total facility size equal to or greater than 10,000 square feet;

3. Food Service Provider;

4. Food Distributor; or,

5. Wholesale Food Vendor.

If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this Agreement.
“Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982(a)(74):

1. Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet;

2. Hotel with an on-site food facility and 200 or more rooms;

3. Health facility with an on-site food facility and 100 or more beds;

4. Large Venue;

5. Large Event;

6. A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet; or,

7. A local education agency facility with an on-site food facility.

If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) shall apply to this Agreement.

11 “Uncontainerized Service” means the seasonal collection of Landscape Waste that is bundled for collection on the street in front of a Generator’s house for collection and transport by a permitted hauler to a facility that recovers Source Separated Organic Waste; or, as otherwise defined in 14 CCR Section 189852(a)(75).
“Wholesale Food Vendor” means a business or establishment engaged in the merchant wholesale distribution of food, where food (including fruits and vegetables) is received, shipped, stored, prepared for distribution to a retailer, warehouse, distributor, or other destination; or, as otherwise defined in 14 CCR Section 189852(a)(76).

Definitions otherwise contained in the Agreement and/or any previous amendment(s), which are addressed above, shall be deemed repealed and replaced with the definitions found here. Definitions otherwise contained in the Agreement and/or any previous amendment(s), but which are not addressed above, shall remain the same.

2. Section 2.9 “Limitations to Scope” of the Agreement is hereby amended and restated in its entirety to read as follows:

Notwithstanding any provision to the contrary contained herein, the exclusive franchise, right and privilege to provide Solid Waste Services granted to Contractor by this Agreement specifically excludes the following services, which services may be provided by Persons other than Contractor and which may be the subject of other permits, licenses, franchises or agreements issued or entered by City.

The Collection, transfer, transport, Recycling, processing, and/or Disposal of:
a) he collection and removal of Recyclables for donation or sale by the owner or occupant of a residential or commercial premises that are separated either for reuse, for processing at recycling facilities, or for manufacture of new products. No cost or fees of any sort, including those for hauling, processing, sorting, or use of containers may be charged by the recycler, non-profit, or agency collecting the recyclables;
b) Solid Waste, including Organic Materials and Bulky Items, and Recyclable Materials which are removed from any Premises by the Waste Generator, and which is transported personally by such Generator (or by his or her full-time employees utilizing waste generator’s equipment) to a Disposal or Processing Facility in a manner consistent with Applicable Law; c) Green Waste removed from a Premises by a gardening,
landscaping, or tree trimming contractor, utilizing its own equipment, as an incidental part of a total service offered by that contractor rather than as a hauling service; to a Facility in a manner consistent with Applicable Law; d) Animal waste and remains from slaughterhouse or butcher shops for use as tallow;

12 e) By-products of sewage treatment, including sludge, sludge ash, grit and screenings;
f) Hazardous Substances, Hazardous Waste, Household Hazardous Waste and radioactive waste regardless of its source;
g) Construction and Demolition Debris which is removed by a duly- licensed construction or demolition company as part of a total service offered by that licensed company rather than as a hauling service, where the licensed company utilizes its own employees and equipment and has City approved C&D self-permit;
h) Construction and Demolition Debris which is Collected by other hauling companies permitted and approved by City to operate within the City, consistent with the Municipal Code. This exclusion shall be suspended during any period that Contractor is authorized by Section 4.15 of this Agreement to provide exclusive Construction and Demolition Debris Collection services within the City; i) The casual or emergency collection of Solid Waste generated at City Facilities, or Collected from the public right-of-way by City through City officers or employees in the normal course of their City employment; j) The collection of Solid Waste from public works projects, during any period that Contractor does not have the exclusive right to provide Construction and Demolition Debris Collection Services pursuant to Section on 4.15; k) Solid Waste generated by or at governmental agencies other than City, which may have facilities within the City, but over which City has no jurisdiction in connection with the regulation of Solid Waste; l) Containers delivered for Recycling under the California Beverage Container Recycling Litter Reduction Act, Section 14500, et seq., California Public Resources Code;
m) Organic waste byproducts generated by agricultural or industrial sources, from the processing of food or beverages, diverted from the landfill for use as animal feed, provided the organic waste byproducts are source separated from other solid waste by the generator and does not include any animal or fish processing byproducts, in accordance with Public Resources Code Section 40059.4.

3. Section 3.2 “Household Hazardous Waste (HHW) Fee” of the Agreement is hereby amended and restated in its entirety to read as follows:

In order to support City’s efforts in HHW management, Contractor shall quarterly pay to City a Household Hazardous Waste Fee (“HHW Fee”) equal to one and seventy-five hundredths of one percent (1.75%) of the Gross Receipts received by the Contractor. The quarterly HHW Fee payment to City is due on January 31, April 30, July 31, and October 31 of each calendar year.

13 4. A new paragraph 4.1.1 “Collection System” is hereby added to Section 4.1 “Direct Services” of the Agreement to read as follows:

A. General. Contractor shall provide an approved Collection program for the separate Collection of Source Separated Recyclable Materials, Source Separated Green Container Organic Waste, Source Separated Brown Container Food Waste, and Black Container Waste as specified in this Agreement, using Containers that comply with the requirements of this Agreement and SB 1383 Regulations. Contractor shall not knowingly Collect Blue, Brown, Green, or Black Containers that include Prohibited Container Contaminants. For the purposes of this agreement, Black Container shall have the same meaning as Gray Container and Black Container Waste shall have the same meaning as Gray Container Waste.

B. Source Separated Recyclable Materials Collection (Blue Container). Contractor shall provide Blue Containers to Customers for Collection of Source Separated Recyclable Materials and shall provide Source Separated Recyclable Materials Collection service, Contractor shall Transport the Source Separated Recyclable Materials to Facility that recovers the materials designated for Collection in the Blue Containers, in accordance with SB 1383 Regulations.

C. Source Separated Food Waste Collection (Brown Container).

Contractor shall provide Brown Containers to Customers for Collection of Source Separated Food Waste and shall provide Source Separated Food Waste Collection service, Contractor shall Transport the Source Separated Food Waste to Facility that recovers the materials designated for Collection in the Brown Containers, in accordance with SB 1383 Regulations.

D. Source Separated Green Container Organic Waste Collection (Green Container). Contractor shall provide Green Containers to Customers for Collection of Source Separated Organic Waste and shall provide Source Separated Organic Waste Collection service, Contractor shall Transport the Source Separated Organic Waste to Facility that recovers the materials designated for Collection in the Green Containers, in accordance with SB 1383 Regulations.

E. Compostable Plastics. Contractor may Collect compliant Compostable Plastics, as defined, in the Green Containers for Processing. If the Contractor elects to Collect Compostable Plastics in the Green Container, then Contractor shall provide annual written notification to the City that the Facility has and will continue to have the capabilities to Process and recover the Compostable Plastics. If the Facility cannot process and recover Compostable Plastics, then Contractor will not Collect Compostable Plastics in the Green Container.

F. Black Container Waste Collection. Contractor shall provide Black Containers to Customers for Collection of Black Container Waste and shall provide Black Container Waste Collection service. Contractor shall Transport the Black Container Waste to a Facility in accordance with the SB 1383 Regulations.

Contractor may allow carpets and textiles to be placed in the Black Containers.

Prohibited Container Contaminants shall not be Collected in the Black Containers.

14 G. Container Labeling Requirements. In an amount not less than the quantity specified in the calculations used to determine the Compliance Fee as set forth in Exhibit 5(D), Compliance Fee Components, Contractor shall place a label on the body or lid of each Container that has been provided to a Customer that includes language or graphic images, or both, that indicate the primary materials accepted and the primary materials prohibited in that Container. Labels shall clearly indicate primary items that are Prohibited Container Contaminants for each Container.

G. Contractor is not required to replace functional containers, including containers purchased prior to January 1, 2022, that do not comply with the requirements of SB 1383 prior to the end of the useful life of those containers, or prior to January 1, 2036, whichever comes first.

5.A new paragraph 4.1.2 “Use of Plastic Bags for Source Separated Green Container Organic Waste Collection” is hereby added to Section 4.1 “Direct Services” of the Agreement to read as follows:

Contractor may require Customers and Generators to place Food Waste in plastic bags or other paper wrappings and put the bagged or wrapped Food Waste in the Green Container. Contractor shall provide written notification to the City that allowing the use of bags does not inhibit the ability of the City to comply with SB 1383 Regulations, and that the Facility can Process and remove plastic bags when it recovers Source Separated Green Container Organic Waste. Contractor shall provide annual written notification to the City that the Facility has and will continue to have the capabilities to Process and remove plastic bags when it recovers Source Separated Green Container Organic Waste.

6.Paragraph 4.3.1.2 “Regulatory Compliance” of Section 4.3 “Recycling and Organic Materials” of the Agreement is hereby amended and restated in its entirety to read as follows:

Contractor shall provide all Customers required to participate in a Recyclable Materials Diversion program with a program(s) compliant with State and CalRecycle mandatory Commercial and Multi-Family Recycling requirements under AB 341 and SB 1383.

7.Paragraph 4.3.2.1 “Regulatory Compliance” of Section 4.3 “Recycling and Organic Materials” of the Agreement is hereby amended and restated in its entirety to read as follows:

Contractor shall provide all Customers required to participate in an Organic Materials Diversion program with a program(s) compliant with State and CalRecycle mandatory Organics Recycling requirements under AB 1826 and SB 1383 and subject to all other terms and conditions of this Agreement. In the event Contractor believes its compliance with the requirements of AB 1826 and SB 1383 requires, or can be accomplished through, alternative methods or procedures, not specified in or otherwise permitted by this Agreement, City shall meet and confer with Contractor regarding whether Contractor can or should be allowed to use such alternative methods or procedures.

8.Paragraph 4.3.2.2 “Green Waste and Manure Collection for Cart Refuse Customers” of Section 4.3 “Recycling and Organic Materials” of the Agreement is hereby repealed and replaced

15 in its entirety with a new paragraph 4.3.2.2 “Organic Waste Collection for Cart Refuse Customers” to read follows:

Contractor shall have an Organic Waste Recycling program whereby it, at a minimum, Collects the types of Organic Waste authorized for collection in the Green Container and/or Brown Container. Horse stable matter, and livestock manure are also acceptable materials to be placed in Single Family Dwelling Green Containers.

Contractor shall provide all Residential Single Family Dwelling Customers receiving Cart Refuse Collection, with a ninety-five (95) gallon Cart for Collection of Organic Waste and manure (“Source Separated Green Container Organic Waste”). Contractor shall Collect all Source Separated Green Container Organic Waste and manure placed in Green Carts and put out for Collection by Customers not less than once per week on the same day as Refuse Collection. Green Cart Customers shall be instructed to place the Cart(s) in the same location as Refuse Carts. Following Collection, Contractor shall relocate Carts when necessary, and return them to their original position.

Contractor shall only be obligated to Collect additional seasonal, Uncontainerized Green Waste set out for Collection by Customers up to two (2) times per year, if it is tied, bundled and placed beside Green Waste Cart(s), and a maximum of four (4) feet long and eighteen (18) inches in diameter. Contractor may request Customer to call in unusually large Green Waste loads or bundled Green Waste in advance but will collect all material properly set out for collection.

The Collection of Green Waste bundles under this Section is not considered a Bulky Item pickup.

Customers may request additional Carts for Organic Waste Collection for an additional charge per Cart per month in accordance with the Rate Schedule.

9.Paragraph 4.6.4.1 “Carts” of Section 4.6 “Operations” of the Agreement is hereby amended and restated in its entirety to read as follows:

A. Cart Selection, Distribution and Exchanges
Contractor shall provide Residential Customers with Containers as specified in Sections 4.2.1, 4.3.1.3, and 4.3.2.2
Residential Customers may each request one free Container exchange per calendar year. Commercial Customers may request one free Black, Blue, or Green Cart exchange per calendar year. One exchange includes all Cart size changes included in the same Customer request and may include changes made to any number of the Customer's Carts. If a second request is made in any calendar year, or a customer requests a Brown container exchange, Contractor may charge for each request, regardless of the number of Carts exchanged, in accordance with the Rate Schedule. This procedure shall be described in Contractor's public education materials.

16 B. Cart Design Requirements
Carts and Cart lids must meet color, size, uniformity, and quality requirements of outlined it the City’s ordinance. City will not permit Carts and Cart lids with inconsistent colors or in poor condition to be used within the City at any time during the term of this Agreement, and may require Contractor to replace such Carts.

All Carts provided by Contractor utilized in the performance of this Agreement shall be manufactured by injection or rotational molding and meet the Cart design and performance requirements as specified below. All Carts selected shall be subject to City's approval prior to Contractor placing order for Carts.

C. Capacity
The references in Sections 4.2.1, 4.3.1.3, and 4.3.2.2 to Cart sizes of ninety-six (96), sixty-four (64) gallons, thirty-five (35) gallons, and fifteen (15) gallons may be approximate. The Cart size, excluding lid capacity, may fall within the following range:
•10- 20 gallons
•30 - 40 gallons
•60 - 70 gallons
•90- 101 gallons
The selected sizes must be consistent throughout City for a uniform appearance.

D. Cart Color and Appearance
The Refuse Carts shall be black, the Recycling Carts blue the Organic Waste Carts green, and source separated food waste carts Brown in color and consistent with SB 1383 regulations.

The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Color must be approved in advance by City.

Cart colors shall be consistent throughout City.

10.Paragraph 4.6.4.3 “Bins” of Section 4.6 “Operations” of the Agreement is hereby amended and restated in its entirety to read as follows:

A. Cleaning. Contractor shall provide Customers with Bins required during the Term at no extra charge. Contractor shall maintain Bins in a clean, sound condition free from putrescible residue. All Bins in use shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted. Wheels, forklift slots, and other apparatuses, which were designed for movement, loading, or unloading of the Bin shall be maintained in good repair.

17 Upon Customer or City request, or if required to maintain the Containers in a clean condition, Contractor shall clean all Bins for a fee in accordance with the Rate Schedule. When a Bin is removed for cleaning, Contractor shall replace the Bin, either temporarily or as a change-out, with another Container. Contractor shall remove graffiti from any Container within two (2) Working Days of request by City or Customer. Contractor is required to proactively look for graffiti when Collecting Bins, with all graffiti removed from Containers in no later than one (1) Working Day after any Collection without notification.

B. Bin Identification and Color. Each Bin placed within the City by Contractor shall have the name of Contractor and phone number high on the exterior of the Bin so as to be visible when the Bin is placed for use. Contractor shall label Bins with languages as required and graphic instruction on what materials should and should not be placed in each Bin. Contractor shall repaint Bins upon City's request if City deems it necessary to maintain a neat appearance.

All Bins shall be painted a uniform color in accordance with SB 1383 requirements.

11.Paragraph 4.14.2 “Warning Notice” of Section 4.14 “Diversion Requirements” of the Agreement is hereby amended and restated in its entirety to read as follows:

A. Actions upon Identification of Prohibited Container Contaminants..

Upon finding Prohibited Container Contaminants in a Container, Contractor shall follow the protocols set forth in this Section.

1. Record Keeping. The driver or other Contractor
representative shall record each event of identification of Prohibited Container Contaminants in a log or in the on-board computer system including date, time, Customer’s address, type of Container (Blue, Brown, Green, or Black Container); and maintain photographic evidence, when possible.

2. Courtesy Pick-Up Notices. Upon identification of Prohibited Container Contaminants in a Customer’s Container, Contractor shall provide the Customer a courtesy pick-up notice. The courtesy pick-up notification shall:
(i) Inform the Customer of the observed presence of
Prohibited Container Contaminants;
(ii) Include the date and time the Prohibited Container Contaminants were observed;
(iii) Include information on the Customer’s requirement to properly separate materials into the appropriate Containers, and the accepted and prohibited materials for Collection in the Blue Container, Brown Container, Green Container, and/or Black Container;
(iv) Inform the Customer of the courtesy pick-up of the contaminated materials on this occasion with information that consecutive instances of Prohibited Container Contaminants, Contractor may assess recycling contamination fees; and,
(v) Contractor may include photographic evidence.

18 Contractor shall leave the courtesy pick-up notice attached to or adhered to the Generators’ contaminated Containers; at the Premises’ door or gate; or, may deliver the notice by mail, e-mail, text message, or other electronic message.

3. Notice of Assessment of Contamination Fees. If the
Contractor observes Prohibited Container Contaminants in a Generator’s Container on more than one occasion within a six-month time period, and issued a courtesy pick-up notice on the first occasion, the Contractor may impose a contamination fee. The contamination fee will be automatically assessed if hazardous or biohazardous materials are placed in any collection container.

Contractor shall notify the City in its monthly report of Customers for which contamination fees were assessed. Contractor shall leave a contamination fee notice attached to or adhered to the Generators’ contaminated Containers; at the Premises’ door or gate; or, deliver the notice by mail, e-mail, text message, or other electronic message. The contamination fee notice shall describe the specific material(s) of issue, explain how to correct future set outs, and indicate that the Customer will be charged a contamination fee on its next bill. The format of the warning and contamination fee notice shall be approved by the City.

B. Disposal of Contaminated Materials. If the Contractor observes Prohibited Container Contaminants in a Generator’s Container(s), Contractor may Dispose of the Container’s contents, provided Contractor complies with the noticing requirements in subsection A above.

12.Paragraph 4.14.4 “Provision for Recovered Organic Waste Product” is hereby added to Section 4.14 “Diversion Requirements” of the Agreement to read as follows:

Contractor agrees to act as a direct service provider on behalf of the City.

Contractor shall coordinate and cooperate with the City in meeting its recovered Organic Waste product procurement target, as required by SB 1383 Regulations, 14 CCR Section 18993.1.

Contractor shall continue to provide Recovered Organic Waste Products, at no cost to the City or residents, for community compost and mulch giveaway events, or use in community or school gardens. Quantity of free Recovered Organic Waste Products provided by Contractor shall not exceed 2,400 cubic yards per year.

Upon City direction, Contractor shall procure an annual quantity of Recovered Organic Waste Products in an amount not less than the quantity specified in the calculations used to determine the Compliance Fee as set forth in Exhibit 5(D), Compliance Fee Components; in a quantity specified by the City for purchase with grant funds; or in a quantity specified by the City on behalf of the City’s contract landscapers, for use in City landscape areas. Recovered Organic Waste Products shall comply with 14 CCR 18993.1(f).

Contractor shall “giveaway” procured material on behalf of the City.

Contractor is authorized to use procured materials to comply with this section and fulfill City requirements either requested or in the Agreement including but not limited to compost and mulch giveaways, for the community garden, for City parks,

19 and used on City landscapes. Contractor shall keep the following records and make them available to the City upon request:

A. Dates provided
B. Source of product including name, physical location and contact information for each entity, operation or facility from whom the Recovered Organic Waste Products were procured;
C. Type of product;
D. Quantity provided; and,
E. Invoice or other record or documentation demonstrating purchase, procurement, or transfer of material to giveaway location

13.Paragraph 5.2.2.1 “SB 1383 Complaints” is hereby added to Section 5.2 “Customer Service” of the Agreement to read as follows:

A. Contractor shall coordinate with the City and/or investigate any applicable complaints, if required by and in accordance with SB 1383 Regulations.

B. Contractor agrees to maintain a log of all applicable oral and written SB 1383 complaints received by Contractor from anonymous individuals, Customers or other Persons.

14.Paragraph 5.3.5 “SB 1383 Education and Outreach” is hereby added to Section 5.3 “Education and Public Awareness” of the Agreement to read as follows:

A. Contractor shall, create all applicable education materials and conduct all education programs and activities as provided by and in accordance with the SB 1383 Regulations and this section in an amount not less than the quantity specified in the calculations used to determine the Compliance Fee as set forth in Exhibit 5(D), Compliance Fee Components. Contractor shall cooperate and coordinate with the City on public education activities.

B. Contractor shall maintain a list of Food Recovery Organizations and Food Recovery Services operating within the City, maintain the list on the Contractor’s City-specific website, share the list with the City if the City wants to post the list on additional City websites, and update the list annually. The list shall include, at a minimum, the following information about each Food Recovery Organization and each Food Recovery Service:

1. Name and physical address;

2. Contact information;

3. Collection service area; and

4. An indication of types of Edible Food the Food Recovery Service or Food Recovery Organization can accept for Food Recovery.

20 C. At least annually, the Contractor shall provide Commercial Edible Food Generators with the following information:

1. Information about the City’s Edible Food Recovery program;

2. Information about the Commercial Edible Food Generator requirements under 14 CCR, Division 7, Chapter 12, Article 10;

3. Information about Food Recovery Organizations and Food Recovery Services operating within the City, and where a list of those Food Recovery Organizations and Food Recovery Services can be found; and

4. Information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste.

D. The Contractor may provide the information required above by including it with regularly scheduled notices, education materials, billing inserts, or other information disseminated to Commercial Businesses.

E. Contractor shall comply with all applicable public education and outreach record keeping and reporting requirements as provided by SB 1383 and the SB 1383 Regulations.

15.Section 5.5 “Container Contamination Minimization” is hereby added to the Agreement read as follows:

Contractor shall meet its SB 1383 Regulations contamination monitoring requirements in an amount not less than the quantity specified in the calculations used to determine the Compliance Fee as set forth in Exhibit 5(D), Compliance Fee Components. Commencing upon execution of this amendment, Contractor is required to use either Route Reviews or Waste Evaluations as outlined herein for each service sector (Residential, Multi-Family, Commercial, & Roll Off generators):

A. Route Reviews

1. If Contractor elects to perform Route Reviews, Contractor shall, conduct Hauler Route reviews for Prohibited Container Contaminants in Collection Containers in a manner that is deemed safe by the Contractor; is approved by the city; is conducted in a manner that results in all Hauler Routes being reviewed annually, and is consistent and in accordance with SB 1383 Regulations. Containers may be randomly selected along the Hauler Route. This Section should not be construed to require that every container on a Hauler Route must be sampled annually. Contractor may prioritize the inspection of Customers that are more likely to be out of compliance.

2. Upon finding Prohibited Container Contaminants in the Container, Contractor shall follow the contamination monitoring noticing procedures in Section 4.14.2 Warning Notices.

B. Waste Evaluations. Alternatively, if Contractor elects to perform Waste Evaluations, Contractor shall, conduct waste evaluations that comply with

21 and meet the requirements of 14 CCR Section 18984.5(c). The City maintains the right to observe, or hire a third party to observe, the waste evaluations.

1. Sampling Method, Study Protocols. The Contractor shall conduct waste evaluations for Prohibited Container Contaminants by sampling the contents of Containers on Hauler Routes in the following manner:
a. If using a Standard Compliance Approach,
Contractor shall conduct waste evaluations at least twice per year and in two distinct seasons of the year in a manner that complies with the requirements of 14 CCR section 18984.5(c).
b. The Contractor’s waste evaluations shall include
samples of Source Separated Recyclable Materials, Source Separated Green Container Organic Waste, Source Separated Food Waste, and Black Container Waste.
c. The waste evaluations shall include samples from
each Container type served by the Contractor and shall include samples taken from different areas in the City that are representative of the City’s waste stream. d. The waste evaluations shall include at least the
minimum number of samples specified in SB 1383 Regulations. e. The Contractor shall Transport all of the material
Collected for sampling to a sorting area at a permitted solid waste Facility where the presence of Prohibited Container Contaminants for each Container type shall be measured to determine the ratio of Prohibited Container Contaminants present in each material stream by weight. To determine the ratio of Prohibited Container Contaminants, the Contractor shall use protocols established in accordance with SB 1383 regulations.

2. Contamination Response. If the sampled weight of
Prohibited Container Contaminants exceeds twenty-five percent (25%) of the measured sample for any material stream, the Contractor shall complete one of the following:
a. Within fifteen (15) working days of the waste
evaluation, notify all Generators on the sampled Hauler Route of their requirement to properly separate materials into the appropriate Containers. The Contractor may provide this information by placing a written notice on the Generators’ Containers or the gate or door of the Premises; and/or by mail, email, or electronic message to the Generators. The format of the warning notice shall be approved by the City; or
b. Perform a targeted route review of containers on the routes sampled for waste evaluations to determine the sources of contamination and notify those generators of their obligation to properly separate materials.

Contractor may prioritize the inspection of Customers that are more likely to be out of compliance. Upon finding Prohibited Container Contaminants in the Container,

22 Contractor shall follow the contamination monitoring noticing procedures in Section 4.14.2 Warning Notices.

3. Material Exceptions. Organic Waste that is textiles, carpet, hazardous wood waste, human waste, pet waste, or material subject to a quarantine on movement issued by a County agricultural commissioner is not required to be measured as Organic Waste when calculating the amount of Organic Waste present in the Black Container Waste.

C. Recordkeeping Requirements. Contractor shall maintain all applicable records required under SB 1383 Regulations, and report to the City on contamination monitoring activities, route reviews and/or waste evaluations, and actions taken.

D. Alternative Compliance. Nothing in this section shall prohibit Contractor from meeting its compliance requirements by any alternative methods or procedures, provided it complies with SB 1383, the SB 1383 Regulations, and/or any other applicable law, as may be amended from time to time.

16.Section 5.6 “Generator Waiver Program Coordination” is hereby added to the Agreement to read as follows:

5.6.1 General
In accordance with SB 1383 Regulations and section 8.15.050 in Title 8 Health and Safety of the Rancho Cucamonga Municipal Code, the City may grant waivers to Generators that impact the scope of Contractor’s provision of service for those Customers. Waivers issued shall be subject to compliance with SB 1383 Regulatory requirements, pursuant to 14 CCR Section 18984.11.

5.6.2 Requests Submitted to Contractor
Generators may submit requests for waivers to the Contractor. Contractor shall review the Generator’s waiver application and inspect the Generator’s Premises to verify the accuracy of the application. Contractor shall provide documentation of the inspection, including the Contractor’s recommendation to approve or deny the waiver request to the City for the City’s review and approval.

The City ultimately retains the right to approve or deny any application, regardless of the Contractor’s recommendation. Contractor shall report information regarding waivers reviewed to the City.

5.6.3 Contractor Change in Customers’ Service Levels
When the City grants a waiver to a Generator, the City shall notify the Contractor within ten (10) business days of the waiver approval with information on the Customer and any changes to the Service Level or Collection service requirements for the Customer. Contractor shall have five (5) business days to modify the Customer’s Service Level and billing statement, as needed.

23 5.6.4 Reverification of Waivers
Contractor shall conduct such reverifications of waivers through inspection of each Generator’s Premises and review of applicable records at least once every five (5) years from the date of issue for de minimis and physical space constraint waivers. Contractor shall maintain a record of each waiver verification and provide a report to the City documenting the waiver reverifications performed and recommendations to the City on those waivers that Contractor concludes are no longer warranted. The City shall make a final determination of the waiver eligibility of Generators.

5.6.5 Contractor Recordkeeping of Generators Granted Waivers Upon Contractor request, the City shall provide Contractor an updated listing of waivers approved by the City, including the Generators’ names, mailing address, service address, and type of waiver. Contractor shall maintain waiver- related records and report on waiver verifications, as required herein.

17.Section 5.7 “Compliance Inspections” is hereby added to the Agreement to read as follows:

Upon execution of this amendment, Contractor shall assist the City with and/or conduct applicable inspections and enforcement, to the extent delegable, as required by SB 1383 Regulations.

Contractor shall maintain all applicable records from inspection and enforcement in accordance with SB 1383 Regulations.

18.Section 5.8 “Edible Food Recovery Program” is hereby added to the Agreement to read as follows:

Upon the effective date of this Section 5.8, Contractor shall implement an Edible Food Recovery Program fulfilling the requirements outlined below in an amount not less than specified in the calculations used to determine the Compliance Fee as set forth in Exhibit 5(D), Compliance Fee Components. 14 CCR Section 18991.1(a)(1) – Educate commercial edible food generators
14 CCR Section 18991.1(a)(3) – Monitor commercial edible food generator compliance
14 CCR Section 18991.2 – Recordkeeping Requirements for Jurisdiction Edible Food Recovery
Program
Contractor may use a subcontractor to complete some or all of the requirements in this section. Upon mutual agreement with the contractor, City may add additional requirements to the extent delegable, set forth in Title 14, Division 7, Chapter 12, Article 10 Jurisdiction Edible Food Recovery Programs, Food

24 Generators, and Food Recovery. Additional requirements shall be included in the Compliance Fee as set forth in Exhibit 5(D).

19.Section 6.2 “Schedule of Future Adjustments” of the Agreement is hereby amended and restated in its entirety to read as follows:

In 2022 the Contractor may submit an off-cycle rate adjustment request for SB1383 services and fees, increases or decreases to disposal and processing cost, and an adjustment to the household hazardous waste disposal fee. The 2022 off-cycle rate adjustment request shall not include a CPI increase or service fee adjustment.

Notwithstanding rate adjustments approved in 2022, beginning with the Rate Period starting July 1, 2023, and ending on June 30, 2025, and for all subsequent Rate Periods, Contractor may request an annual adjustment biennially to the maximum rates set forth in the Rate Resolution approved by City Council in 2022. The Contractor shall submit its request in writing, to be received by City in Person or via certified mail or by other means approved by City, by the preceding April 1st, and shall be based on the method of adjustment described in Section 6.3 and Exhibit 5. The rate adjustment request shall include rate worksheets; invoices to verify cost of equipment, materials or services obtained by the Contractor for SB1383 compliance; methodology and calculations for SB 1383 fee; disposal and processing fee confirmation from disposal and processing facility(s); and CPI data.

Should the rate packet or associated supporting materials include Contractor’s proprietary information, Contractor shall be required to find reasonable means to provide City and third-party consultant access to the necessary information to verify the accuracy of the proposed rates. Failure to submit a written request by April 1st shall result in Contractor waiving the right to request such an increase for the subsequent Rate Period. Missed rate adjustments may not be added to rate adjustment applications in ensuing years. Adjustment to the maximum rates is subject to the approval of the City Council at a public hearing, although the Council's discretion shall be limited to determining, based on substantial evidence, whether the requested maximum rate adjustment meets the requirements as set forth herein.

Contractor shall reimburse City for costs associated with a third-party consultant, of City’s choosing, up to $10,000 per rate review, with an annual CPI adjustment, to review rate request and associated rate packet and worksheets.

20.Paragraph 6.3.1 “General” of Section 6.3 “Method of Adjustment” of the Agreement is hereby amended and restated in its entirety to read as follows:

Pursuant to Section 6.2, the Contractor may request an adjustment to the maximum rates according to the method described below and the detailed formulas shown in Exhibit 5, subject to review and approval of City. All future adjustments are to be effective July 1 of the same year.

City may, but is not required to, implement the biennial rate adjustment if Contractor does not request it. If a biennial adjustment that would have resulted in a rate decrease is not implemented for any reason, the next rate adjustment will be measured based on the change in indices from the last implemented rate

25 adjustment; the intent is to ensure subsequent rate increases shall be offset with any decrease not previously implemented.

21. Section 6.3.2 “Minimum and Maximum Rate Adjustments” is hereby amended and restated in its entirety to read as follows:

Beginning with the Rate Period starting July 1, 2023, and ending on June 30, 2025, and for all subsequent Rate Periods, in no event may the adjustment to the Service Component pursuant to this Article 6 and Exhibit 5, be an increase of more than the calculated twelve (12) month average change in the CPI for the previous calendar year or 5% whichever is less compared to the previous Rate Period.

22.Section 6.4 “Extraordinary Adjustments” of the Agreement is hereby repealed and replaced in its entirety with a new Section 6.4 “Disposal and Processing Cost Study/Analysis” to read as follows:

Beginning in 2023 and thereafter no less often than every five years, there shall be a requirement to conduct a disposal and processing cost study. The study shall include both a comparison and analysis of landfill tipping fees, processing fees for recyclables, and processing fees for organics at facilities within a reasonable driving distance from the City, as well as those facilities located outside of a reasonable driving distance.

The study/analysis shall be conducted by a third-party consultant of the City’s choosing. Contractor shall reimburse the City for the cost of the study/analysis, up to $10,000 per study/analysis with an annual CPI adjustment.

City shall review the study/analysis results and, in City’s sole judgement and absolute, unfettered discretion, make the final determination as to whether an adjustment to the rates will be made, and if an adjustment is permitted, the appropriate amount of the adjustment.

23.A new paragraph, 8.3.3.1 “SB 1383 Recordkeeping and Reporting” is hereby added to Section 8.3 “Reports” of the Agreement to read as follows:

Contractor shall maintain all applicable records necessary to ensure compliance with the SB 1383 Regulations and shall assist City in meeting all applicable reporting requirements of the SB 1383 Regulations. Contractor shall allow City to audit and inspect such records and reports upon reasonable request.

24.A new subparagraph “d” is hereby added to paragraph 11.3.B.1. “Collection Reliability” of Section 11.3 “Liquidated Damages” of the Agreement to read as follows:
d) For each failure to offer, or upon Customer’s request provide, mandatory organics and recycling service to a new Customer account within thirty (30) days after the account has been established: $100
The parties agree that the above liquidated damages amount represents a reasonable estimate of the amount of such damages for such specific breaches, considering all of the circumstances existing on the date of this Second Amendment, including the relationship of the sums to the

26 range of harm to City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each party specifically confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions in the Agreement and this Second Amendment at the time the Second Amendment was agreed to:

Contractor’s Initials: ______
City’s Initials: ______

25.Exhibit 5 “Rate Adjustment Methodology” to the Agreement is hereby amended and restated in its entirety read as set forth in the Attachment to this Second Amendment.

26. Other Terms and Conditions Unchanged. Except as expressly amended by the Second Amendment, all other terms and conditions of the Agreement shall remain unchanged. In the event of any conflict between the terms and conditions of this Second Amendment and the terms and conditions of the Agreement and/or any previous amendment thereto, the terms and conditions of this Second Amendment shall prevail and control.

27. Counterparts. This Second Amendment may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.
[Signatures appear on the following page]

27 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed by and through their respective authorized officers, as of the date first above written.

CITY OF RANCHO CUCAMONGA BURRTEC WASTE INDUSTRIES, INC.

By: By:

L. Dennis Michael, Mayor
Its:

Attest:

By:

Janice C. Reynolds, City Clerk
Approved as to Form:

By:

Nick Ghirelli, City Attorney

28 ATTACHMENT
EXHIBIT 5
Rate Adjustment Methodology
General
Subject to the terms herein, the Contractor shall be entitled to an annual adjustment of all Rates. Each Rate, excluding special charges, includes a "Service Component", "Disposal Component", "Processing Component", "Fee Component" and “Compliance Component” which are annually adjusted.

Notwithstanding the 2022 Rate Adjustments adopted by the City, Contractor shall submit its application for a Rate adjustment to the City Manager on or before April 1st preceding the start of each Rate Period that begins July 1 where Rates will be adjusted, or no adjustment shall be made for that Rate Period.

Contractor's Rate application shall document all calculations and include all supporting schedules, documentation of Disposal or Processing tipping fee changes (including supporting calculations where applicable), documentation of tonnage calculations and/or assumptions, and any other documentation or evidence determined by the City Manager to be necessary to ensure that the calculation of Rate adjustments has been performed in strict conformance with the requirements of this Exhibit 5.

The City Council shall make a good faith effort to approve Rates by June 1, and such Rates shall be effective on each subsequent July 1. If Rates are not effective by July 1 due to a delay caused solely by City, City shall allow Contractor to retroactively bill Customers for the amount of the Rate increase for any period of delay that is solely caused by City. If Rates are not effective by July 1 as a result of Contractor's error or delay in submitting the Rate application in a complete and accurate form, then prior Rates remain in effect and no adjustment shall be made for that Rate Period.

In no event may the adjustment of the Service Component pursuant to this Exhibit, and Article 6 of the Agreement, be an increase in an amount greater than 5% of the Service Component, compared to the previous Service Component. In the event that calculations in accordance with this Exhibit result in an increase above five percent (5%) of the Service Component, any amount above five percent (5%) shall be carried forward and applied to the Service Component in subsequent Rate Adjustments until such time as the carried over amount has been applied in full.

Definitions
Certain terms which are specific to this Exhibit 5 are defined below:

1. Annual Percentage Change means the average value of an index for the twelve (12) month period ending December of most recently completed calendar year, minus the average index value for the twelve (12) month period ending December of the calendar year one year prior (year before last), divided by the average index value for the twelve (12) month period ending December of the calendar year one year prior. The Annual Percentage Change shall be rounded to the nearest thousandth (l,000th).

For example, if the Contractor is preparing its Rate application for Rates to be effective for July 1, 2022, the Annual Percentage Change in CPI shall be calculated as follows: [(Average CPI for January 2021 through December 2021) - (Average CPI for January 2020 through December 2020)] I (Average CPI for January 2020 through December 2020)].

29 2. Bureau of Labor Statistics (BLS) shall mean the U.S. Department of Labor, Bureau of Labor Statistics or its successor agency.

3. City Fees shall mean the Franchise Fee and HHW Fee specified in Sections 3.1 and 3.2 of the Agreement.

4. Consumer Price Index (CPI) shall mean the All Urban Consumers Index (CPI-U) compiled and published by the BLS, using the following parameters:

Area – Riverside-San Bernardino-Ontario, CA
Item - All Items
Base Period - December 2017 = 100
Not seasonally adjusted
Series Identification Number – CUURS49C SA0

5. Disposal/Processing Fee shall mean the fee charged per ton or unit of material delivered to an approved facility. The "Current Approved" Disposal/Processing Fee for any Approved Facility shall be the Disposal/Processing Fee in place on January 1 immediately preceding the submission of the Rate Application.

6. Rate means the maximum amount, expressed as a dollar unit, approved by City that the Contractor may bill for providing services under this Agreement.

7. Rate Adjustment Factor shall mean the amount, expressed as a percentage, by which the Service Component of each Rate is adjusted.

8. Service Component shall mean portion of Rate set by Contractor for costs related to service of Solid Waste as described in this Agreement, including, but not limited to fuel, personnel costs, and vehicle maintenance. The Service Component shall not include costs related to providing Street Sweeping services, Disposal and Processing Fees, Tipping Fees, Compliance Component, or City Fees.

9. Tipping Fee shall mean the Rate or tipping fee charged for each ton or unit of material delivered to an approved facility. The "Current Approved" Tipping Fee for any Approved Facility shall be the Tipping Fee in place on January 1 immediately preceding the submission of the Rate Application.

10. Compliance Component shall mean portion of the Rate charged to customers for program elements related to legislative requirements such as AB 939, AB 341, AB 1826, and SB 1383 as described in this agreement including but not limited to edible food recovery programs, procurement activities, equipment, contamination minimization requirements, education and outreach activities, container contamination minimization efforts, record keeping, and future compliance cost elements resulting from new legislation as mutually agreed upon by the Parties. The Compliance Component shall not include costs related to providing Street Sweeping services, Disposal and Processing Fees, or Tipping Fees.

11. Disposal Component shall mean portion of the Rate set by Contractor for costs related to disposal of Solid Waste materials as described in this agreement including but not limited to Tipping Fees,

30 Solid Waste Tons, and Customer counts. The Disposal Component shall not include costs related to providing Street Sweeping services, collection services, Compliance Component, or City Fees.

12. Processing Component shall mean portion of the Rate set by Contractor for costs related to processing of Solid Waste materials such as commingled recyclables, organic waste, and other materials as described in this agreement including but not limited to Tipping Fees, Solid Waste Tons, and Customer counts. The Processing Component shall not include costs related to providing Street Sweeping services, collection services, Compliance Component, or City Fees.

13. Fee Component shall mean portion of the Rate set by City for costs related to franchise fees as described in this agreement including but not limited to HHW Fees, Franchise Fees and other fees authorized by the City. The contractor shall collect, at the City's request, pass-through fees as funding for the City's programs
Methodology
The Rate adjustment methodology involves modifying: (A) the Service Component for the current Rate Period by CPI; (B) the Disposal, and/or Processing Component(s) by the actual changes to those components; (C) the Franchise Fee and HHW Fee Components based on the agreed upon percentage of Gross Receipts; and (D) the Compliance Component to determine the Rates for the coming Rate Period.

If the CPI is discontinued or revised during the Term by the BLS, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the CPI had not been discontinued or revised.

A. Service Component
Contractor shall calculate the adjustment to Single Family Dwelling, Multi-Family Dwelling, Commercial, and Roll-off Box Service Components using the following methodology:

Step 1: Calculate the "Service Component Factor" or "SCF".

Calculate the twelve (12) month average Change in the CPI for the previous calendar year. The factor shall be rounded to the nearest hundredth (l00th) percent.

Step 2: Calculate the adjusted Service Component, rounded to the nearest cent, for each Rate as follows:

Adjusted Service Component = Then-current Service Component * (1 + SCF) For example, assuming:

1. Then-current Service Component = $14.75

2. SCF = 4.74%

3. Adjusted Service Component = $14.75 * (I + 0.0474) = $15.45 Step 3: Verify the Adjusted Service Component does not exceed the maximum percentage increase as follows:

Service Component Factor < 5.00%
Step 4: Apply eligible carried over Adjusted Service Component from previous year when applicable.

31 B. Disposal and/or Processing Component(s)
Contractor shall calculate the adjustment to Single Family Dwelling Disposal and Processing Components using the following methodology:

Single Family Dwelling Disposal and Processing Component Calculation Step 1: Calculate the adjusted Single Family Dwelling Disposal Component, rounded to the nearest cent, for each Rate to reflect any change in the Tipping Fee charge at the approved Disposal Site, and the calculated average Tons of Refuse Collected per household per year, based on the actual tonnage of Single-Family Dwelling Refuse Collected in the prior calendar year and the average number of Single Family Dwelling units served, rounded to the nearest ten thousandth (10,000th).

The adjustment shall be calculated as follows:

Adjusted Disposal Component = Disposal Site Tipping Fee x Average Refuse Tons per Household Per Year I 12 months
For example, assuming:

1. Current Approved Disposal Site Tipping Fee = $50.88 per Ton

2. Average Refuse Tons per Household Per Year = 1.3395 Tons

3. Adjusted Disposal Component= $50.88 x 1.3395 I 12 = $5.68 Step 2: Calculate the adjusted Single Family Dwelling Recyclable Materials Processing Component, rounded to the nearest cent, for each Rate to reflect any change in the Tipping Fee charge at the approved MRF and the calculated average Tons of Recyclable Materials Collected per household per year, based on the actual tonnage of Single-Family Dwelling Recyclable Materials Collected in the prior calendar year and the average number of Single Family Dwelling units served, rounded to the nearest ten thousandth (10,000th). The adjustment shall be calculated as follows:

Adjusted Recyclable Materials Processing Component = Approved MRF Tipping Fee x Average Recyclable Materials Tons per Household Per Year I 12 months For example, assuming:

1. Current Approved MRF Tipping Fee= $71.92 per Ton

2. Average Recyclable Materials Tons per Household Per Year= 0.3456 Tons

3. Adjusted Recyclable Materials Processing Component= ($71.92) x 0.3456 I 12 = $2.07 Step 3: Calculate the adjusted Single Family Dwelling Organic Waste Processing Component, rounded to the nearest cent, for each Rate to reflect any change in the Tipping Fee charge at the approved Organic Materials Processing Facility and the calculated average Tons of Organic Waste Collected per household per year, based on the actual tonnage of Single-Family Dwelling Organic Waste Collected in the prior calendar year and the average number of Single Family Dwelling units served, rounded to the nearest ten thousandth (10,000th). The adjustment shall be calculated as follows:

Adjusted Organic Waste Processing Component = Approved Organic Waste Processing Facility Tipping Fee x Average Organic Waste Tons per Household Per Year I 12 months

32 For example, assuming:

1. Current Approved Organic Waste Processing Facility Tipping Fee= $80.00 per Ton

2. Average Organic Waste Tons per Household per Year= 0.7832 Tons

3. Adjusted Organic Waste Processing Component= $80.00 x 0.7832 I 12 = $5.22 Commercial and Multi-Family Dwelling Refuse and Recyclable Materials Disposal and Processing Component Calculation
Contractor shall calculate the adjustment to Commercial and Multi-Family Dwelling Refuse and Recyclable Materials Rate Disposal and Processing Components, using the following methodology:

Step 1: Calculate the adjusted Commercial and Multi-Family Dwelling Disposal Component, rounded to the nearest cent, for each Commercial and Multi-Family Dwelling Rate to reflect any change in the Tipping Fee charge at the approved Disposal Site, or a change in the estimated weight per cubic yard of Refuse Collected (which is initially established at one hundred five (105) pounds), and the appropriate weekly service level in cubic yards. The adjustment shall be calculated as follows:

Adjusted Disposal Component= 105 lbs* Weekly Service Level in Cubic Yards* 52 Weeks per Year I 2,000 pounds per Ton* Approved Disposal Site Tipping Fee I 12 months For example, assuming:

1. Current Approved Disposal Site Tipping Fee= $50.88 per Ton

2. Service Level (size of container * frequency of service) = 3 cubic yards, 1 x per week

3. Adjusted Disposal Component= 105 * 3 * l * 52 I 2,000 * $50.88 I 12 = $34.73 Step 2: Calculate the adjusted Commercial and Multi-Family Dwelling Recyclable Materials Processing Component, rounded to the nearest cent, for each Commercial and Multi-Family Dwelling Rate to reflect any change in the Tipping Fee charge at the approved MRF, and the appropriate weekly service level in cubic yards. The adjustment shall be calculated as follows:

Adjusted Recyclable Materials Processing Component = MRF processing costs* Weekly Service Level in Cubic Yards* 4.33 Average Weeks per Month
For example, assuming:

1. Current MRF Processing Costs = $3.55 per Cubic Yard

2. Service Level (size of container* frequency of service) = 3 cubic yards, Ix per week

3. Adjusted Disposal Component= $3.55 * 3 * I * 52/12 = $46.15 Commercial Green Waste and Food Waste Only Processing Component Calculation Contractor shall calculate the adjustment to Commercial Green Waste and Food Waste Rates Disposal and Processing Components, using the following methodology:

Step 1: Calculate the adjusted Commercial and Multi-Family Dwelling Green Waste Processing and Food Waste Processing Component, rounded to the nearest cent, for each Commercial Green Waste and Food Waste Rate to reflect any change in the Tipping Fee charge at the Approved Organic Materials Processing Facility, the estimated weight per cubic yard of Organic Material Collected (which shall be one hundred sixty (160) pounds for Green Waste, and four hundred (400) pounds for Food

33 Waste), and the appropriate weekly service level in cubic yards. The adjustment shall be calculated as follows:

Adjusted Green Waste Processing Component= 160 lbs* Weekly Service Level in Cubic Yards * 52 Weeks per Year I 2,000 pounds per Ton* Approved Green Waste Tipping Fee I 12 months For example, assuming:

1. Current Approved Green Waste Tipping Fee= $51.78 per Ton

2. Service Level (size of container* frequency of service) = 3 cubic yards, Ix per week

3. Adjusted Green Waste Processing Component= 160 * 3 * I * 52 I 2,000 * $51.78 I 12 = $53.85
AND
Adjusted Food Waste Processing Component= 400 lbs* Weekly Service Level in Cubic Yards * 52 Weeks per Year I 2,000 pounds per Ton* Approved Food Waste Tipping Fee I 12 months For example, assuming:

1. Current Approved Food Waste Tipping Fee= $92.82 per Ton

2. Service Level (size of container* frequency of service) = 2 cubic yards, Ix per week

3. Adjusted Food Waste Processing Component= 400 * 2 * 1 * 52 I 2,000 * $92.82 I 12 = $160.89
Multi Family Refuse with Recycling and Residential Bins Only shall calculate the adjustment to Organics Processing Components, using the following methodology:

Adjusted Organic Waste Processing Component used in the Single Family Dwelling Disposal and Processing Calculations
Compactor Refuse and Recyclable Materials Disposal and Processing Component Calculation Contractor shall calculate the adjustment to Compactor Refuse and Recyclable Materials Rate Disposal and Processing Components, using the following methodology:

Step 1: Calculate the adjusted Compactor Disposal Component, rounded to the nearest cent, for each Compactor Rate to reflect any change in the Tipping Fee charge at the approved Disposal Site, or a change in the estimated weight per cubic yard of Compacted Refuse Collected (which is initially established at three hundred fifteen (315) pounds), and the appropriate weekly service level in cubic yards. The adjustment shall be calculated as follows:

Adjusted Disposal Component= 315 lbs* Weekly Service Level in Cubic Yards* 52 Weeks per Year I 2,000 pounds per Ton* Approved Disposal Site Tipping Fee I 12 months For example, assuming:

1. Current Approved Disposal Site Tipping Fee= $50.88 per Ton

2. Service Level (size of container* frequency of service) = 3 cubic yards, Ix per week

3. Adjusted Disposal Component= 315 * 3 * 1 * 52 I 2,000 * $50.88 I 12 = $104.18

34 Step 2: Calculate the adjusted Recyclable Materials Processing Component, rounded to the nearest cent, for each Compactor Rate to reflect any change in the Tipping Fee charge at the approved MRF, and the appropriate weekly service level in cubic yards. The adjustment shall be calculated as follows:

Adjusted Recyclable Materials Processing Component= MRF Processing costs* Weekly Service Level in Cubic Yards* 4.33 Average Weeks per Month
For example, assuming:

1. Current MRF Processing Costs = $3.55 per Cubic Yard

2. Service Level (size of container * frequency of service) = 3 cubic yards, Ix per week

3. Adjusted Disposal Component= 3 * 1 * 52 / 12 * $3.55 = $46.15 Roll-Off Box Disposal and Processing Component Calculation Contractor shall calculate the adjustment to Roll-off Box Rates using the following methodology:

Step 1: Calculate the adjusted Roll-off Box Disposal Component, rounded to the nearest cent, for each Roll-off Box Rate to reflect any change in the Tipping Fee charge at the approved Disposal Site, and the estimated weight per pull (which shall be six (6) Tons for standard Roll-off Boxes, and ten (10) Tons for compactors and demolition boxes). The adjustment shall be calculated as follows:

Adjusted Disposal Component =Approved Disposal Site Tipping Fee * 6 Tons For example, assuming:

1. Current Approved Disposal Site Tipping Fee= $50.88 per Ton

2. Adjusted Disposal Component = $50.88 * 6 = $305.28
Step 2: Calculate the adjusted Roll-off Box Processing Component, rounded to the nearest cent, for each Roll-off Box Rate to reflect any change in the Tipping Fee charge at the Approved Processing Facility, and the estimated weight per pull (which shall be six (6) Tons for standard Roll-off Boxes, and ten (10) Tons for compactors). The adjustment shall be calculated as follows:

Adjusted Disposal Component= Approved Processing Facility Tipping Fee * 6 Tons For example, assuming:

1. Current Approved Processing Facility Tipping Fee= $11.93 per Ton

2. Adjusted Processing Component = $11.93 * 6 = $71.58
C. Compliance Components
Contractor shall calculate the adjustment to Single Family Dwelling, Multi-Family Dwelling, Commercial, and Roll-off Box Compliance Components using the following methodology:

Step 1: Determine annual program costs by calculating the sum of estimated program variable costs for the upcoming year, including the previous year’s actual surplus or shortfall.

35 For example, assuming:

1. Equipment Fee = $232,660 (375 food waste pails purchased for resident giveaways. SB 1383 barrel, bin, and roll off decal requirements)

2. Education & Outreach Fee = $164,447 (information packet sent to each resident and business, community meetings, videos, and presentations informing customers of their obligations under SB 1383)

3. Procurement Fee = $0.00 (Compost procurement and delivery to achieve 30% of City requirement)

4. Compliance Monitoring Fee = $283,810 (Cost to audit 3% of residential and 10% of Commercial customers)

5. Record Keeping Fee = $87,210 (Cost to manage, create, and record data and reports)

6. Edible Food Program Fee = $0.00 (Cost to manage 3 rd party contractor)

7. Other Fees / Funding = $0.00 (Miscellaneous Fees and/or Credits)

8. Previous Year Funding Surplus or Shortfall = $0.00 (Enter excess costs or balance remaining of monies from previous year’s estimate)
Total Compliance Component costs = $232,660+$164,447+$0+$283,810+$87,210+$0+$0+$0 = $768,127
Step 2: Determine adjusted Compliance Component Rate Impact for the upcoming year using one of two methods; fixed rate or average rate.

Method 1 – Average Rate.

Divide total Compliance Component costs by total number of customers by twelve (12) months.

For Example, assuming: Average Rate = $768,127 Compliance Component costs ÷ 42,331 total customers ÷ 12 months = $1.51 per customer, per month
OR
Method 2 – Fixed Rate.

Set a fixed rate per month for Single Family Dwellings (SFD) and determine a per yard rate for commercial customers using the remaining balance of the Compliance Component costs.

For Example, assuming:

1. City determines monthly fixed rate for Single Family Dwellings. $0.77

2. Calculate cost of Single Family Dwellings by multiplying fixed monthly SFD rate by number of SFDs
Single Family Dwelling fixed rate $0.77 * 37,734 Single Family Dwellings * 12 Months = $348,662 SFD Cost

36 Step 3: Subtract Single Family Dwelling cost from Compliance Component costs to determine commercial customer Compliance Component costs.

Compliance Component costs $768,127 - $348,662 SFD cost = $419,465 commercial customer Compliance Component cost.

Step 4: Divide commercial customer Compliance Component costs by total refuse yards per month Commercial customer Compliance Component cost $419,465 ÷ 12 months ÷ 91,988 Trash Yards per month = $0.38 Per Yard Per Month
Step 5: Determine commercial Compliance Component per service level per month For example, Calculate for 3 cubic yards, 1x per week:

Compliance Fee $0.38 * 3 yards * 1 one service * 4.33 weeks per month = $4.94 per month D. City Fee Components
Contractor shall calculate the adjustment to Single Family Dwelling, Multi-Family Dwelling, Commercial, and Roll-off Box City Fee Components using the following methodology:

Step 1: Calculate the City Fee Components, rounded to the nearest cent, for each Rate. This Step requires first calculating the gross total Rate. The adjusted City Fees for each Rate shall be calculated as follows:

Step 1A. Gross Total Rate = (adjusted Service Component + adjusted Disposal Component + adjusted Processing Component + Compliance Component) I (1 - (Franchise Fee Percentage of Gross Receipts (15%) + HHW Fee Percentage of Gross Receipts (1.75%)) For example, assuming:

1. Adjusted Service Component= $15.45

2. Adjusted Disposal Component= $5.68

3. Adjusted Recyclable Materials Processing Component= $2.07

4. Adjusted Organic Waste Processing Component= $5.22

5. Adjusted Compliance Component = $0.77

6. Franchise Fee Percentage of Gross Receipts= 15%

7. HHW Fee Percentage of Gross Receipts= 1.75%

8. Gross Total Rate= ($15.45 + $5.68 + $2.07 + $5.22 + $0.77) I (1- (0.15 + 0.0175)) = $35.06
Step IB: Franchise Fee Component= Gross Total Rate* 15% For example, assuming:

1. Franchise Fee Percentage of Gross Receipts= 15%

2. Gross Total Rate= $35.06

3. Franchise Fee Component= 0.15 * $35.06 = $5.26

37 Step IC: HHW Fee Component= Gross Total Rate* 1.75%
For example, assuming:

1. HHW Fee Percentage of Gross Receipts= 1.75%

2. Gross Total Rate= $35.06

3. HHW Fee Component= 0.0175 * $35.06 = $0.61
E. Total Adjusted Rates
Contractor shall calculate the total adjusted Single Family Dwelling, Multi-Family Dwelling, Commercial, and Roll-off Box City Rates using the following methodology:

Step 1: Calculate the adjusted value for each Rate charged under this Agreement. Adjusted Rates shall be calculated as follows:

Adjusted Rate = Adjusted Service Component + Adjusted Disposal Component + Adjusted Processing Component + Adjusted Fee Components + Adjusted Compliance Component For example, assuming:

1. Adjusted Service Component= $15.45

2. Adjusted Disposal Component= $5.68

3. Adjusted Recyclable Materials Processing Component= $2.07

4. Adjusted Organic Waste Processing Component= $5.22

5. Adjusted Compliance Component (Method 2) = $0.77

6. Franchise Fee Component = $5.26

7. HHW Fee Component= $0.61

8. Adjusted Rate= $15.45 + $5.68 + $2.07 + $5.22 + $0.77 + $5.26 + $0.61 = $35.06 F. Even Year Rate Adjustment
The maximum rates set forth in the Rate Resolution approved by City Council in 2022 shall also include an even year rate adjustment, adjusted by an amount equal to the twelve (12) month mean average change in the Consumer Price Index for the previous twelve (12) month period. The first such adjustment shall become effective July 1st, 2024 and shall apply ("CPI") to all rate components.

Step 1: Use the Rate Adjustment Methodology to calculate new rates for the upcoming rate period For Example, assuming proposed rates for the Rate Period July 1, 2023 – Jun 30, 2025 are as follows:

1. Adjusted Service Component= $16.22

2. Adjusted Disposal Component= $6.01

3. Adjusted Recyclable Materials Processing Component= $2.19

4. Adjusted Organic Waste Processing Component= $5.52

5. Adjusted Compliance Component (Method 2) = $0.77

6. Franchise Fee Component = $5.53

7. HHW Fee Component= $0.65

38 8. Adjusted Rate= $16.22 + $6.01 + $2.19 + $5.52 + $0.77 + $5.53 + $0.65 = $36.89 Step 2: Calculate the twelve (12) month average Change in the CPI for the previous calendar year. The factor shall be rounded to the nearest hundredth (l00th) percent.

For Example, assuming 2022 All items in Riverside-San Bernardino-Ontario, CA, all urban consumers, not seasonally adjusted annual average = 6.00% Step 3: Increase each applicable Fee by the adjusted annual average CPI and use the Rate Adjustment Methodology to calculate new rates for the projected even year Rate.

For example
Single Family Dwelling Disposal and Processing Component Calculation

1. Current Approved Disposal Site Tipping Fee = $53.84 per Ton

2. Average Refuse Tons per Household Per Year = 1.3395 Tons

3. Adjusted Disposal Component= $53.84 x 1.3395 I 12 = $6.01 Projected even year rate calculation

1. Current Approved Disposal Site Tipping Fee = $53.84 per Ton

2. Average Refuse Tons per Household Per Year = 1.3395 Tons

3. Adjusted Disposal Component= ($53.84 x 1.06) x 1.3395 I 12 = $6.37 Step 4: Calculate City Fee Components in accordance with the methods described in this exhibit Step 5: Determine Total Adjusted Rate for the even year

1. Adjusted Service Component= $17.03 (Apply or carry over ($0.16) eligible amounts as applicable)

2. Adjusted Disposal Component= $6.37

3. Adjusted Recyclable Materials Processing Component= $2.32

4. Adjusted Organic Waste Processing Component= $5.85

5. Adjusted Compliance Component (Method 2) = $0.77

6. Franchise Fee Component = $5.88

7. HHW Fee Component= $0.68

8. Adjusted Rate= $17.03 + $6.37 + $2.32 + $5.85 + $0.77 + $5.83 + $0.68 = $38.85 Step 6: Use approved City methods to propose revised solid waste rates For example, rate application for rates effective July 1, 2023 – June 30, 2025 Service Type Current Rate Proposed Rate Proposed Rate
July 1, 2023 July 1, 2024
Residential Standard
Service
$35.06 $36.89 $38.85

39 Step 7: Rate reconciliation
No later than June 30 of each even year, Contractor shall submit to the City actual Adjusted Rates using the approved methodology set forth in this Exhibit. Submitted Adjusted Rates shall be reconciled against the approved even year rate. Variances shall be incorporated into the proposed rates for the following rate period.

For example,
Rate Reconciliation Approved Actual Reconciliation
July 1,
2024
July 1, 2024 July 1, 2024
Disposal Component $6.37 $6.39 $0.02
Recyclable Materials Processing
Component
$2.32 $2.31 ($0.01)
July 1, 2025 Rate Adjustment Calculated Reconciliation Proposed July 1,
2025
July 1, 2024 July 1, 2025
Disposal Component $6.76 $0.02 $6.78
Recyclable Materials Processing
Component
$2.46 ($0.01) $2.45

1 SECOND AMENDMENT TO AGREEMENT

BETWEEN THE

CITY OF RANCHO CUCAMONGA
AND
BURRTEC WASTE INDUSTRIES, INC.

FOR

INTEGRATED SOLID WASTE MANAGEMENT SERVICES
This Second Amendment to the Agreement for Integrated Solid Waste Management Services (the “Second Amendment”) is entered into this [____] day of [_________], 2022, by and between the City of Rancho Cucamonga (the “City”) and Burrtec Waste Industries, Inc. (“Contractor”) (collectively “Parties,” or individually “Party”).

RECITALS
WHEREAS, the City and Contractor previously entered into that certain Agreement for Integrated Solid Waste Management Services dated 15 th day of June, 2016 the “Agreement”, including amendments thereto; and,
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 handling within their jurisdictions; and, WHEREAS, the State of California has found and declared that the amount of Solid Waste generated in California, coupled with diminishing Disposal capacity and interest in minimizing potential environmental impacts from landfilling and the need to conserve natural resources, have created an urgent need for State and local agencies to enact and implement an aggressive integrated waste management program. The State has, through enactment of AB 939 and subsequent related legislation including, but not limited to: the Jobs and Recycling Act of 2011 (AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), SB 1016 (Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383), directed the responsible State agency, and all local agencies, to promote a reduction in Landfill Disposal and to maximize the use of feasible waste reduction, reuse, recycling, and composting options in order to reduce the amount of material that must be disposed; and,
WHEREAS, SB 1383 establishes regulatory requirements for jurisdictions, generators, haulers, Solid Waste facilities, and other entities to support achievement of State-wide Organic Waste Disposal reduction targets; and
WHEREAS, SB 1383 Regulations require the City of Rancho Cucamonga to implement collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements; and, the City of Rancho Cucamonga has chosen to delegate some ATTACHMENT 1
08/17/2022 – CITY COUNCIL MEETING – FINAL AMENDED AMENDMENT – ADDITIONAL MATERIAL TO ITEM D14

2 of its responsibilities to the Contractor, acting as the City’s designee, and Contractor desires to take on these responsibilities; and
WHEREAS, the City and Contractor desire to amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the promises above stated and the terms, conditions, covenants, and agreements contained herein, the Parties do hereby agree as follows:

AMENDMENT

1. Article 1 “Definitions” of the Agreement is hereby amended by the addition of the following definitions.
“Back-Haul” means generating and transporting Organic Waste to a destination owned and operated by the Generator using the Generator’s own employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A).
“Black Container” has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used only for the purpose of storage and collection of Black Container Waste. Notwithstanding the foregoing, functional containers purchased prior to January 1, 2022, that are used for the storage and collection of Black Container Waste and that do not comply with the color requirements of 14 CCR Section 18982(a)(28) shall be deemed to be Black Containers and are not required to be replaced until the end of the useful life of those containers or January 1, 2036, whichever is earlier.
“Black Container Waste” means Solid Waste that is collected in a Black Container that is part of the City’s three-container Organic Waste collection service that prohibits the placement of Organic Waste in the Black Container as specified in 14 CCR Sections 18984.1(a) and (b); or, as otherwise defined in 14 CCR Section 17402(a)(6.5). Notwithstanding the preceding sentence, Black Container Waste includes carpets and textiles.
“Blue Container” has the same meaning as in 14 CCR Section 18982(a)(5) and shall be used only for the purpose of storage and Collection of Source Separated Recyclable Materials Notwithstanding the foregoing, functional containers purchased prior to January 1, 2022 that are used for the storage and collection of Source Separated Recyclable Materials and that do not comply with the color requirements of 14 CCR Section 18982(a)(5) shall be deemed to be Blue Containers and are not required to be replaced until the end of the useful life of those containers or January 1, 2036, whichever is earlier. “Brown Container” has the same meaning as in 14 CCR Section 18982(a)(5.5) and shall be used only for the purpose of storage and collection of Source Separated Food Waste. Notwithstanding the foregoing, functional containers purchased prior to January 1, 2022 that are used for the storage and collection of Source Separated Food Waste and that do not comply with the color requirements of 14 CCR Section 18982(a)(5.5) shall be deemed to be Brown Containers and are not required to be replaced until the end of the useful life of those containers or January 1, 2036, whichever is earlier.

3 “California Code of Regulations” or “CCR” means the State of California Code of Regulations. CCR references in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR refers to Title 14 of the CCR).
“CalRecycle” means California's Department of Resources Recycling and Recovery, which is the Department designated with responsibility for developing, implementing, and enforcing SB 1383 Regulations on the City and others. “Commercial Edible Food Generators” includes a Tier One or Tier Two Commercial Edible Food Generator, as defined herein. For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators pursuant to 14 CCR Section 18982(a)(7). “Compostable Plastics” or “Compostable Plastic” means plastic materials that meet the ASTM D6400 standard for compostability, or as otherwise described in 14 CCR Section 18984.1(a)(1)(A) or 18984.2(a)(1)(C). “Compost” means the product resulting from the controlled biological decomposition of organic Solid Wastes that are Source Separated from the municipal solid waste stream, as specified in 14 CCR Section 17896.2(a)(4). “Diversion (or any variation thereof including “Divert”)” means activities which reduce or eliminate Discarded Materials from Disposal, including, but not limited to, source reduction, Reuse, salvage, Recycling, and composting. “Edible Food” means food intended for human consumption; or, as otherwise defined in 14 CCR Section 18982(a)(18). For the purposes of this agreement or as otherwise defined in 14 CCR Section 18982(a)(18), “Edible Food” is not Solid Waste if it is recovered and not discarded. Nothing in this chapter or in 14 CCR, Division 7, Chapter 12 requires or authorizes the Recovery of Edible Food that does not meet the food safety requirements of the State Retail Food Code. “Excluded Waste” means hazardous substance, hazardous waste, infectious waste, designated waste, volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that facility operator(s), which receive materials from the City and its Generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be disposed of in Class III landfills or accepted at the facility by permit conditions, waste that in the City’s Enforcement Official’s or its Designee’s, reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose the City, or its Designee, to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe collection, processing, recycling, treatment, and disposal of batteries and paint in compliance with Sections 41500 and 41802 of the State Public Resources Code.

4 “Food Recovery” means actions to collect and distribute food for human consumption which otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
“Food Recovery Organization” unless otherwise defined in 14 CCR Section 18982(a)(25), means an entity that engages in the collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities, including, but not limited to:

1. A food bank as defined in Section 113783 of the Health and Safety Code;

2. A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code; and,

3. A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code.

A Food Recovery Organization is not a Commercial Edible Food Generator for the purposes of this agreement and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).
“Food Recovery Service” means a person or entity that collects and transports Edible Food from a Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery; or, as otherwise defined in 14 CCR Section 18982(a)(26). A Food Recovery Service is not a Commercial Edible Food Generator for the purposes of this agreement and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).
“Food Scraps” means all food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes fats, oils, grease, and liquids, including, but not limited to broth and beverages, when such materials are Source Separated from other Food Scraps
“Food-Soiled Paper” means compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons. “Food Waste” means all food and food scraps such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells Food Waste excludes fats, oils, liquids, and grease when such materials are Source Separated from other Food Waste. Food Waste is a subset of Source Separated Green Container Organic Waste. Edible Food separated for Food Recovery shall not be considered Food Waste. “Gray Container” has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used for the purpose of storage and Collection of Gray Container Waste. Notwithstanding the foregoing, functional containers purchased

5 prior to January 1, 2022 that are used for the storage and collection of Gray Container Waste and that do not comply with the color requirements of 14 CCR Section 18982(a)(28) shall be deemed to be Gray Containers and are not required to be replaced until the end of the useful life of those containers or January 1, 2036, whichever is earlier.
“Gray Container Waste” means Solid Waste that is collected in a Gray Container as specified in 14 CCR Sections 18984.1(a) and (b), or as otherwise defined in 14 CCR Section 17402(a)(6.5). Notwithstanding the preceding sentence, Gray Container Waste includes carpets and textiles. “Green Container” has the same meaning as in 14 CCR Section 18982(a)(29) and shall be used only for the purpose of storage and collection of Source Separated Green Container Organic Waste. Notwithstanding the foregoing, functional containers purchased prior to January 1, 2022, that are used for the storage and collection of Source Separated Green Container Organic Waste and that do not comply with the color requirements of 14 CCR Section 18982(a)(29) shall be deemed to be Green Containers and are not required to be replaced until the end of the useful life of those containers or January 1, 2036, whichever is earlier.
“Hauler Route(s)” means the designated itinerary or sequence of stops for each segment of the City’s collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5).
“Landscape Waste” means tree and shrubbery trimmings, vegetation from land clearing, grass cuttings, leaves, garden organic materials, sawdust, straw, wood chips and other discarded plant or vegetation material. “Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event; or, as otherwise defined in 14 CCR Section 18982(a)(38).
“Large Venue” unless otherwise defined in 14 CCR Section 18982(a)(39), means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of this agreement and implementation of 14 CCR, Division 7, Chapter 12, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of this chapter and implementation of 14 CCR, Division 7, Chapter 12, a site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue.

6 “Local Education Agency” means a school district, charter school, or county office of education that is not subject to the control of the City’s regulations related to Solid Waste; or, as otherwise defined in 14 CCR Section 18982(a)(40). “Multi-Family Residential Dwelling(s)” or “Multi-Family” means of, from, or pertaining to residential premises with five (5) or more dwelling units. Multi-Family premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses.
“Non-Compostable Paper” includes, but is not limited to, paper that is coated in a plastic material that will not breakdown in the composting process, or as otherwise defined in 14 CCR Section 18982(a)(41).
“Non-Local Entity” means the following entities that are not subject to the City’s enforcement authority; or, as otherwise defined in 14 CCR Section 18982(a)(42):

1. Special district(s) located within the jurisdictional boundaries of the City;

2. Federal facilities, including military installations, located within the jurisdictional boundaries of the City;

3. Prison(s) located within the jurisdictional boundaries of the City;

4. Facilities operated by the State Park system located within the jurisdictional boundaries of the City;

5. Public universities (including community colleges) located within the jurisdictional boundaries of the City;

6. County fairgrounds located within the jurisdictional boundaries of the City; and

7. State agencies located within the jurisdictional boundaries of the City.
“Non-Organic Recyclables” means non-putrescible and non-hazardous recyclable wastes including, but not limited to, bottles, cans, metals, plastics and glass; or, as otherwise defined in 14 CCR Section 18982(a)(43). “Notice of Violation” or “NOV” means a notice that a violation has occurred that includes a compliance date to avoid an action to seek penalties; or, as otherwise defined in 14 CCR Section 18982(a)(45) or further explained in 14 CCR Section 18995.4.
“Organic Waste” means Solid Wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, yard trimmings, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges, or as

7 otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a).
“Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise defined in 14 CCR Section 18982(a)(51). “Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined in 14 CCR Section 18982(a)(54).
“Processing” means the controlled separation, recovery, volume reduction, conversion, or Recycling of Solid Waste including, but not limited to, organized, manual, automated, or mechanical sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or includes the use of conveyor belts, sorting lines, or volume reduction equipment, or as otherwise defined in 14 CCR Section 17402(a)(20).
“Prohibited Container Contaminants” unless otherwise defined in 14 CCR Section 18982(a)(55), means the following:

1. Discarded materials placed in the Blue Container that are not identified by the City as acceptable Source Separated Recyclable Materials for the Blue Container;

2. Discarded materials placed in the Brown Container that are not identified as acceptable Food Waste for the City’s Brown Container;

3. Discarded materials placed in the Green Container that are not identified by the City as acceptable Source Separated Green Container Organic Waste for the Green Container, including carpet, hazardous wood waste and Non- Compostable Paper;

4. Discarded materials placed in the Black Container that are identified by the City as acceptable Source Separated Recyclable Materials to be placed in the Blue Container or Source Separated Organic Waste to be placed in the City’s Green and/or Brown Container; and,

5. Excluded Waste placed in any container.
“Recovery” means any activity or process described in 14 CCR Section 18983.1(b); or, as otherwise defined in 14 CCR Section 18982(a)(49). “Recycle” or “Recycling” means the process of Collecting, sorting, cleansing, treating, and reconfiguring materials for the purpose of returning them to the economic mainstream in the form of raw material for new, Reused, or reconstituted products that meet the quality standards necessary to be used in the

8 marketplace. Recycling includes processes deemed to constitute a reduction of Landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or transformation as defined in Public Resources Code Section 40201.
“Recycled-Content Paper” means Paper Products and Printing and Writing Papers that consist of at least 30 percent, by fiber weight, postconsumer fiber; or, as otherwise defined in 14 CCR Section 18982(a)(61).
“Restaurant” means an establishment primarily engaged in the retail sale of food and drinks for on-premises or immediate consumption; or, as otherwise defined in 14 CCR Section 18982(a)(64).
“Reuse” or any variation thereof, means the use, in the same, or similar, form as it was produced, of a material which might otherwise be discarded, or as otherwise defined in 14 CCR Section 17402.5(b)(2).
“SB 1383” means Senate Bill 1383 of 2016 approved by the Governor of the State on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the State Health and Safety Code, and added Chapter

13.1 (commencing with Section 42652) to Part 3 of Division 30 of the State Public Resources Code, establishing methane emissions reduction targets in a Statewide effort to reduce emissions of short-lived climate pollutants. “SB 1383 Regulations” or “SB 1383 Regulatory” means the Short-Lived Climate Pollutants: Organic Waste Reduction regulations developed by CalRecycle and adopted in 2020 that created 14 CCR, Division 7, Chapter 12 and amended portions of 14 CCR and 27 CCR.
“Self-Hauler” or “Self-Haul” means a person, who, in compliance with all applicable requirements of the City Code, hauls Solid Waste, Organic Waste or recyclable material he or she has generated directly to the appropriate facility, as required by SB 1383 Regulations. Self-hauler also includes a person who Back- Hauls waste, or as otherwise defined in 14 CCR Section 18982(a)(66). “Service Level” refers to the number and size of a Customer’s Container(s) and the frequency of Collection service, as well as ancillary services such as lock/unlock service, Container push/pull service, etc.
“Single-Family” means of, from, or pertaining to any residential premises with fewer than five (5) units.
“Solid Waste” unless otherwise defined in State Public Resources Code Section 40191, means all putrescible and non-putrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, 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 semisolid wastes, with the exception that Solid Waste does not include any of the following wastes:

9 1. Hazardous waste, as defined in the State Public Resources Code Section 40141;

2. Radioactive waste regulated pursuant to the Radiation Control Law (Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of the State Health and Safety Code); and,

3. Medical waste regulated pursuant to the Medical Waste Management Act (Part 14 (commencing with Section 117600) of Division 104 of the State Health and Safety Code). Untreated medical waste shall not be disposed of in a Solid Waste landfill, as defined in State Public Resources Code Section 40195.1. Medical waste that has been treated and deemed to be Solid Waste shall be regulated pursuant to Division 30 of the State Public Resources Code.
“Source Separated” means materials, including commingled recyclable materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or processing those materials for recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products, which meet the quality standards necessary to be used in the marketplace; or, as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of this agreement, Source Separated shall include separation of materials, at the point of generation, by the Generator, property owner, property owner’s employee, property manager, or property manager’s employee into different containers for the purpose of collection such that Source Separated materials are separated from Black Container Waste, Gray Container Waste or other Solid Waste for the purposes of collection and processing of those materials.
“Source Separated Blue Container Organic Waste” means Source Separated Organic Waste that can be placed in a Blue Container that is limited to the collection of that Organic Waste and Non-Organic Recyclables. Source Separated Blue Container Organic Waste includes Paper Products, Printing and Writing Papers, unless otherwise specified by the City, but excludes Source Separated Green Container Organic Waste and Food Waste. “Source Separated Green Container Organic Waste” means Source Separated Organic Waste that can be placed in a Green Container that is limited to the collection of that Organic Waste; or as otherwise specified in 14 CCR 18984.1 (a) and (b), excluding Source Separated Blue Container Organic Waste, carpets, Non-Compostable Paper, and textiles. For purposes of Single-Family Generators, Source Separated Green Container Organic Waste includes Food Waste. For purposes of Commercial Businesses, including Multi-Family Residential Dwellings, Source Separated Green Container Organic Waste excludes Food Waste.
“Source Separated Recyclable Materials” means Source Separated Non- Organic Recyclables and Source Separated Blue Container Organic Waste.

10 “Standard Compliance Approach” means the method for complying with the SB 1383 Regulations through implementation of a collection system pursuant to 14 CCR, Division 7, Chapter 12, Article 3, and all associated program and policy requirements.
“State” means the State of California.
“Supermarket” means a full-line, self-service retail store with gross annual sales of two million dollars ($2,000,000), or more, and which sells a line of dry grocery, canned goods, or nonfood items and some perishable items; or, as otherwise defined in 14 CCR Section 18982(a)(71).“Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982(a)(73):

1. Supermarket;

2. Grocery Store with a total facility size equal to or greater than 10,000 square feet;

3. Food Service Provider;

4. Food Distributor; or,

5. Wholesale Food Vendor.

If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this Agreement.
“Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982(a)(74):

1. Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet;

2. Hotel with an on-site food facility and 200 or more rooms;

3. Health facility with an on-site food facility and 100 or more beds;

4. Large Venue;

5. Large Event;

6. A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet; or,

7. A local education agency facility with an on-site food facility.

If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) shall apply to this Agreement.

11 “Uncontainerized Service” means the seasonal collection of Landscape Waste that is bundled for collection on the street in front of a Generator’s house for collection and transport by a permitted hauler to a facility that recovers Source Separated Organic Waste; or, as otherwise defined in 14 CCR Section 189852(a)(75).
“Wholesale Food Vendor” means a business or establishment engaged in the merchant wholesale distribution of food, where food (including fruits and vegetables) is received, shipped, stored, prepared for distribution to a retailer, warehouse, distributor, or other destination; or, as otherwise defined in 14 CCR Section 189852(a)(76).

Definitions otherwise contained in the Agreement and/or any previous amendment(s), which are addressed above, shall be deemed repealed and replaced with the definitions found here. Definitions otherwise contained in the Agreement and/or any previous amendment(s), but which are not addressed above, shall remain the same.

2. Section 2.4 “Term of Agreement” of the Agreement is hereby amended and restated in its entirety to read as follows:

The initial term of this agreement commenced on July 1, 2016, and is scheduled to expire on June 30, 2038 (the "Initial Term"), subject to extension or earlier termination as provided herein.

3. Section 2.9 “Limitations to Scope” of the Agreement is hereby amended and restated in its entirety to read as follows:

Notwithstanding any provision to the contrary contained herein, the exclusive franchise, right and privilege to provide Solid Waste Services granted to Contractor by this Agreement specifically excludes the following services, which services may be provided by Persons other than Contractor and which may be the subject of other permits, licenses, franchises or agreements issued or entered by City.

The Collection, transfer, transport, Recycling, processing, and/or Disposal of:
a) The collection and removal of Recyclables for donation or sale by the owner or occupant of a residential or commercial premises that are separated either for reuse, for processing at recycling facilities, or for manufacture of new products. No cost or fees of any sort, including those for hauling, processing, sorting, or use of containers may be charged by the recycler, non-profit, or agency collecting the recyclables;
b) Solid Waste, including Organic Materials and Bulky Items, and Recyclable Materials which are removed from any Premises by the Waste Generator, and which is transported personally by such Generator (or by his or her full-time employees utilizing waste generator’s equipment) to a Disposal or Processing Facility in a manner consistent with Applicable Law;

12 c) Green Waste removed from a Premises by a gardening, landscaping, or tree trimming contractor, utilizing its own equipment, as an incidental part of a total service offered by that contractor rather than as a hauling service; to a Facility in a manner consistent with Applicable Law; d) Animal waste and remains from slaughterhouse or butcher shops for use as tallow;
e) By-products of sewage treatment, including sludge, sludge ash, grit and screenings;
f) Hazardous Substances, Hazardous Waste, Household Hazardous Waste and radioactive waste regardless of its source;
g) Construction and Demolition Debris which is removed by a duly- licensed construction or demolition company as part of a total service offered by that licensed company rather than as a hauling service, where the licensed company utilizes its own employees and equipment and has City approved C&D self-permit;
h) Construction and Demolition Debris which is Collected by other hauling companies permitted and approved by City to operate within the City, consistent with the Municipal Code. This exclusion shall be suspended during any period that Contractor is authorized by Section 4.15 of this Agreement to provide exclusive Construction and Demolition Debris Collection services within the City; i) The casual or emergency collection of Solid Waste generated at City Facilities, or Collected from the public right-of-way by City through City officers or employees in the normal course of their City employment; j) The collection of Solid Waste from public works projects, during any period that Contractor does not have the exclusive right to provide Construction and Demolition Debris Collection Services pursuant to Section on 4.15; k) Solid Waste generated by or at governmental agencies other than City, which may have facilities within the City, but over which City has no jurisdiction in connection with the regulation of Solid Waste; l) Containers delivered for Recycling under the California Beverage Container Recycling Litter Reduction Act, Section 14500, et seq., California Public Resources Code;
m) Organic waste byproducts generated by agricultural or industrial sources, from the processing of food or beverages, diverted from the landfill for use as animal feed, provided the organic waste byproducts are source separated from other solid waste by the generator and does not include any animal or fish processing byproducts, in accordance with Public Resources Code Section 40059.4.

13 4. Section 3.2 “Household Hazardous Waste (HHW) Fee” of the Agreement is hereby amended and restated in its entirety to read as follows:

In order to support City’s efforts in HHW management, Contractor shall quarterly pay to City a Household Hazardous Waste Fee (“HHW Fee”) equal to one and seventy-five hundredths of one percent (1.75%) of the Gross Receipts received by the Contractor. The quarterly HHW Fee payment to City is due on January 31, April 30, July 31, and October 31 of each calendar year.

5. A new paragraph 4.1.1 “Collection System” is hereby added to Section 4.1 “Direct Services” of the Agreement to read as follows:

A. General. Contractor shall provide an approved Collection program for the separate Collection of Source Separated Recyclable Materials, Source Separated Green Container Organic Waste, Source Separated Brown Container Food Waste, and Black Container Waste as specified in this Agreement, using Containers that comply with the requirements of this Agreement and SB 1383 Regulations. Contractor shall not knowingly Collect Blue, Brown, Green, or Black Containers that include Prohibited Container Contaminants. For the purposes of this agreement, Black Container shall have the same meaning as Gray Container and Black Container Waste shall have the same meaning as Gray Container Waste.

B. Source Separated Recyclable Materials Collection (Blue Container). Contractor shall provide Blue Containers to Customers for Collection of Source Separated Recyclable Materials and shall provide Source Separated Recyclable Materials Collection service, Contractor shall Transport the Source Separated Recyclable Materials to Facility that recovers the materials designated for Collection in the Blue Containers, in accordance with SB 1383 Regulations.

C. Source Separated Food Waste Collection (Brown Container).

Contractor shall provide Brown Containers to Customers for Collection of Source Separated Food Waste and shall provide Source Separated Food Waste Collection service, Contractor shall Transport the Source Separated Food Waste to Facility that recovers the materials designated for Collection in the Brown Containers, in accordance with SB 1383 Regulations.

D. Source Separated Green Container Organic Waste Collection (Green Container). Contractor shall provide Green Containers to Customers for Collection of Source Separated Organic Waste and shall provide Source Separated Organic Waste Collection service, Contractor shall Transport the Source Separated Organic Waste to Facility that recovers the materials designated for Collection in the Green Containers, in accordance with SB 1383 Regulations.

E. Compostable Plastics. Contractor may Collect compliant Compostable Plastics, as defined, in the Green Containers for Processing. If the Contractor elects to Collect Compostable Plastics in the Green Container, then Contractor shall provide annual written notification to the City that the Facility has and will continue to have the capabilities to Process and recover the Compostable Plastics. If the Facility cannot process and recover Compostable Plastics, then Contractor will not Collect Compostable Plastics in the Green Container.

14 F. Black Container Waste Collection. Contractor shall provide Black Containers to Customers for Collection of Black Container Waste and shall provide Black Container Waste Collection service. Contractor shall Transport the Black Container Waste to a Facility in accordance with the SB 1383 Regulations.

Contractor may allow carpets and textiles to be placed in the Black Containers.

Prohibited Container Contaminants shall not be Collected in the Black Containers.

G. Container Labeling Requirements. In an amount not less than the quantity specified in the calculations used to determine the Compliance Fee as set forth in Exhibit 5(D), Compliance Fee Components, Contractor shall place a label on the body or lid of each Container that has been provided to a Customer that includes language or graphic images, or both, that indicate the primary materials accepted and the primary materials prohibited in that Container. Labels shall clearly indicate primary items that are Prohibited Container Contaminants for each Container.

G. Contractor is not required to replace functional containers, including containers purchased prior to January 1, 2022, that do not comply with the requirements of SB 1383 prior to the end of the useful life of those containers, or prior to January 1, 2036, whichever comes first.

6. A new paragraph 4.1.2 “Use of Plastic Bags for Source Separated Green Container Organic Waste Collection” is hereby added to Section 4.1 “Direct Services” of the Agreement to read as follows:

Contractor may require Customers and Generators to place Food Waste in plastic bags or other paper wrappings and put the bagged or wrapped Food Waste in the Green Container. Contractor shall provide written notification to the City that allowing the use of bags does not inhibit the ability of the City to comply with SB 1383 Regulations, and that the Facility can Process and remove plastic bags when it recovers Source Separated Green Container Organic Waste. Contractor shall provide annual written notification to the City that the Facility has and will continue to have the capabilities to Process and remove plastic bags when it recovers Source Separated Green Container Organic Waste.

7. Paragraph 4.3.1.2 “Regulatory Compliance” of Section 4.3 “Recycling and Organic Materials” of the Agreement is hereby amended and restated in its entirety to read as follows:

Contractor shall provide all Customers required to participate in a Recyclable Materials Diversion program with a program(s) compliant with State and CalRecycle mandatory Commercial and Multi-Family Recycling requirements under AB 341 and SB 1383.

8. Paragraph 4.3.2.1 “Regulatory Compliance” of Section 4.3 “Recycling and Organic Materials” of the Agreement is hereby amended and restated in its entirety to read as follows:

Contractor shall provide all Customers required to participate in an Organic Materials Diversion program with a program(s) compliant with State and CalRecycle mandatory Organics Recycling requirements under AB 1826 and SB

15 1383 and subject to all other terms and conditions of this Agreement. In the event Contractor believes its compliance with the requirements of AB 1826 and SB 1383 requires, or can be accomplished through, alternative methods or procedures, not specified in or otherwise permitted by this Agreement, City shall meet and confer with Contractor regarding whether Contractor can or should be allowed to use such alternative methods or procedures.

9. Paragraph 4.3.2.2 “Green Waste and Manure Collection for Cart Refuse Customers” of Section 4.3 “Recycling and Organic Materials” of the Agreement is hereby repealed and replaced in its entirety with a new paragraph 4.3.2.2 “Organic Waste Collection for Cart Refuse Customers” to read follows:

Contractor shall have an Organic Waste Recycling program whereby it, at a minimum, Collects the types of Organic Waste authorized for collection in the Green Container and/or Brown Container. Horse stable matter, and livestock manure are also acceptable materials to be placed in Single Family Dwelling Green Containers.

Contractor shall provide all Residential Single Family Dwelling Customers receiving Cart Refuse Collection, with a ninety-five (95) gallon Cart for Collection of Organic Waste and manure (“Source Separated Green Container Organic Waste”). Contractor shall Collect all Source Separated Green Container Organic Waste and manure placed in Green Carts and put out for Collection by Customers not less than once per week on the same day as Refuse Collection. Green Cart Customers shall be instructed to place the Cart(s) in the same location as Refuse Carts. Following Collection, Contractor shall relocate Carts when necessary, and return them to their original position.

Contractor shall only be obligated to Collect additional seasonal, Uncontainerized Green Waste set out for Collection by Customers up to two (2) times per year, if it is tied, bundled and placed beside Green Waste Cart(s), and a maximum of four (4) feet long and eighteen (18) inches in diameter. Contractor may request Customer to call in unusually large Green Waste loads or bundled Green Waste in advance but will collect all material properly set out for collection.

The Collection of Green Waste bundles under this Section is not considered a Bulky Item pickup.

Customers may request additional Carts for Organic Waste Collection for an additional charge per Cart per month in accordance with the Rate Schedule.

10. Paragraph 4.6.4.1 “Carts” of Section 4.6 “Operations” of the Agreement is hereby amended and restated in its entirety to read as follows:

A. Cart Selection, Distribution and Exchanges
Contractor shall provide Residential Customers with Containers as specified in Sections 4.2.1, 4.3.1.3, and 4.3.2.2
Residential Customers may each request one free Container exchange per calendar year. Commercial Customers may request one free Black, Blue, or Green Cart exchange per calendar year. One exchange includes all Cart size changes

16 included in the same Customer request and may include changes made to any number of the Customer's Carts. If a second request is made in any calendar year, or a customer requests a Brown container exchange, Contractor may charge for each request, regardless of the number of Carts exchanged, in accordance with the Rate Schedule. This procedure shall be described in Contractor's public education materials.

B. Cart Design Requirements
Carts and Cart lids must meet color, size, uniformity, and quality requirements of outlined it the City’s ordinance. City will not permit Carts and Cart lids with inconsistent colors or in poor condition to be used within the City at any time during the term of this Agreement, and may require Contractor to replace such Carts.

All Carts provided by Contractor utilized in the performance of this Agreement shall be manufactured by injection or rotational molding and meet the Cart design and performance requirements as specified below. All Carts selected shall be subject to City's approval prior to Contractor placing order for Carts.

C. Capacity
The references in Sections 4.2.1, 4.3.1.3, and 4.3.2.2 to Cart sizes of ninety-six (96), sixty-four (64) gallons, thirty-five (35) gallons, and fifteen (15) gallons may be approximate. The Cart size, excluding lid capacity, may fall within the following range:
•10- 20 gallons
•30 - 40 gallons
•60 - 70 gallons
•90- 101 gallons
The selected sizes must be consistent throughout City for a uniform appearance.

D. Cart Color and Appearance
The Refuse Carts shall be black, the Recycling Carts blue the Organic Waste Carts green, and source separated food waste carts Brown in color and consistent with SB 1383 regulations.

The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Color must be approved in advance by City.

Cart colors shall be consistent throughout City.

17 11. Paragraph 4.6.4.3 “Bins” of Section 4.6 “Operations” of the Agreement is hereby amended and restated in its entirety to read as follows:

A. Cleaning. Contractor shall provide Customers with Bins required during the Term at no extra charge. Contractor shall maintain Bins in a clean, sound condition free from putrescible residue. All Bins in use shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted. Wheels, forklift slots, and other apparatuses, which were designed for movement, loading, or unloading of the Bin shall be maintained in good repair.

Upon Customer or City request, or if required to maintain the Containers in a clean condition, Contractor shall clean all Bins for a fee in accordance with the Rate Schedule. When a Bin is removed for cleaning, Contractor shall replace the Bin, either temporarily or as a change-out, with another Container. Contractor shall remove graffiti from any Container within two (2) Working Days of request by City or Customer. Contractor is required to proactively look for graffiti when Collecting Bins, with all graffiti removed from Containers in no later than one (1) Working Day after any Collection without notification.

B. Bin Identification and Color. Each Bin placed within the City by Contractor shall have the name of Contractor and phone number high on the exterior of the Bin so as to be visible when the Bin is placed for use. Contractor shall label Bins with languages as required and graphic instruction on what materials should and should not be placed in each Bin. Contractor shall repaint Bins upon City's request if City deems it necessary to maintain a neat appearance.

All Bins shall be painted a uniform color in accordance with SB 1383 requirements.

12. Paragraph 4.14.2 “Warning Notice” of Section 4.14 “Diversion Requirements” of the Agreement is hereby amended and restated in its entirety to read as follows:

A. Actions upon Identification of Prohibited Container Contaminants.

Upon finding Prohibited Container Contaminants in a Container, Contractor shall follow the protocols set forth in this Section.

1. Record Keeping. The driver or other Contractor
representative shall record each event of identification of Prohibited Container Contaminants in a log or in the on-board computer system including date, time, Customer’s address, type of Container (Blue, Brown, Green, or Black Container); and maintain photographic evidence, when possible.

2. Courtesy Pick-Up Notices. Upon identification of Prohibited Container Contaminants in a Customer’s Container, Contractor shall provide the Customer a courtesy pick-up notice. The courtesy pick-up notification shall:
(i) Inform the Customer of the observed presence of
Prohibited Container Contaminants;
(ii) Include the date and time the Prohibited Container Contaminants were observed;

18 (iii) Include information on the Customer’s requirement to properly separate materials into the appropriate Containers, and the accepted and prohibited materials for Collection in the Blue Container, Brown Container, Green Container, and/or Black Container;
(iv) Inform the Customer of the courtesy pick-up of the contaminated materials on this occasion with information that consecutive instances of Prohibited Container Contaminants, Contractor may assess recycling contamination fees; and,
(v) Contractor may include photographic evidence.

Contractor shall leave the courtesy pick-up notice attached to or adhered to the Generators’ contaminated Containers; at the Premises’ door or gate; or, may deliver the notice by mail, e-mail, text message, or other electronic message.

3. Notice of Assessment of Contamination Fees. If the
Contractor observes Prohibited Container Contaminants in a Generator’s Container on more than one occasion within a six-month time period, and issued a courtesy pick-up notice on the first occasion, the Contractor may impose a contamination fee. The contamination fee will be automatically assessed if hazardous or biohazardous materials are placed in any collection container.

Contractor shall notify the City in its monthly report of Customers for which contamination fees were assessed. Contractor shall leave a contamination fee notice attached to or adhered to the Generators’ contaminated Containers; at the Premises’ door or gate; or, deliver the notice by mail, e-mail, text message, or other electronic message. The contamination fee notice shall describe the specific material(s) of issue, explain how to correct future set outs, and indicate that the Customer will be charged a contamination fee on its next bill. The format of the warning and contamination fee notice shall be approved by the City.

B. Disposal of Contaminated Materials. If the Contractor observes Prohibited Container Contaminants in a Generator’s Container(s), Contractor may Dispose of the Container’s contents, provided Contractor complies with the noticing requirements in subsection A above.

13. Paragraph 4.14.4 “Provision for Recovered Organic Waste Product” is hereby added to Section 4.14 “Diversion Requirements” of the Agreement to read as follows:

Contractor agrees to act as a direct service provider on behalf of the City.

Contractor shall coordinate and cooperate with the City in meeting its recovered Organic Waste product procurement target, as required by SB 1383 Regulations, 14 CCR Section 18993.1.

Contractor shall continue to provide Recovered Organic Waste Products, at no cost to the City or residents, for community compost and mulch giveaway events, or use in community or school gardens. Quantity of free Recovered Organic Waste Products provided by Contractor shall not exceed 2,400 cubic yards per year.

19 Upon City direction, Contractor shall procure an annual quantity of Recovered Organic Waste Products in an amount not less than the quantity specified in the calculations used to determine the Compliance Fee as set forth in Exhibit 5(D), Compliance Fee Components; in a quantity specified by the City for purchase with grant funds; or in a quantity specified by the City on behalf of the City’s contract landscapers, for use in City landscape areas. Recovered Organic Waste Products shall comply with 14 CCR 18993.1(f).

Contractor shall “giveaway” procured material on behalf of the City.

Contractor is authorized to use procured materials to comply with this section and fulfill City requirements either requested or in the Agreement including but not limited to compost and mulch giveaways, for the community garden, for City parks, and used on City landscapes. Contractor shall keep the following records and make them available to the City upon request:

A. Dates provided
B. Source of product including name, physical location and contact information for each entity, operation or facility from whom the Recovered Organic Waste Products were procured;
C. Type of product;
D. Quantity provided; and,
E. Invoice or other record or documentation demonstrating purchase, procurement, or transfer of material to giveaway location

14. Paragraph 5.2.2.1 “SB 1383 Complaints” is hereby added to Section 5.2 “Customer Service” of the Agreement to read as follows:

A. Contractor shall coordinate with the City and/or investigate any applicable complaints, if required by and in accordance with SB 1383 Regulations.

B. Contractor agrees to maintain a log of all applicable oral and written SB 1383 complaints received by Contractor from anonymous individuals, Customers or other Persons.

15. Paragraph 5.3.5 “SB 1383 Education and Outreach” is hereby added to Section 5.3 “Education and Public Awareness” of the Agreement to read as follows:

A. Contractor shall, create all applicable education materials and conduct all education programs and activities as provided by and in accordance with the SB 1383 Regulations and this section in an amount not less than the quantity specified in the calculations used to determine the Compliance Fee as set forth in Exhibit 5(D), Compliance Fee Components. Contractor shall cooperate and coordinate with the City on public education activities.

B. Contractor shall maintain a list of Food Recovery Organizations and Food Recovery Services operating within the City, maintain the list on the Contractor’s City-specific website, share the list with the City if the City wants to

20 post the list on additional City websites, and update the list annually. The list shall include, at a minimum, the following information about each Food Recovery Organization and each Food Recovery Service:

1. Name and physical address;

2. Contact information;

3. Collection service area; and

4. An indication of types of Edible Food the Food Recovery Service or Food Recovery Organization can accept for Food Recovery.

C. At least annually, the Contractor shall provide Commercial Edible Food Generators with the following information:

1. Information about the City’s Edible Food Recovery program;

2. Information about the Commercial Edible Food Generator requirements under 14 CCR, Division 7, Chapter 12, Article 10;

3. Information about Food Recovery Organizations and Food Recovery Services operating within the City, and where a list of those Food Recovery Organizations and Food Recovery Services can be found; and

4. Information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste.

D. The Contractor may provide the information required above by including it with regularly scheduled notices, education materials, billing inserts, or other information disseminated to Commercial Businesses.

E. Contractor shall comply with all applicable public education and outreach record keeping and reporting requirements as provided by SB 1383 and the SB 1383 Regulations.

16. Section 5.5 “Container Contamination Minimization” is hereby added to the Agreement read as follows:

Contractor shall meet its SB 1383 Regulations contamination monitoring requirements in an amount not less than the quantity specified in the calculations used to determine the Compliance Fee as set forth in Exhibit 5(D), Compliance Fee Components. Commencing upon execution of this amendment, Contractor is required to use either Route Reviews or Waste Evaluations as outlined herein for each service sector (Residential, Multi-Family, Commercial, & Roll Off generators):

A. Route Reviews

1. If Contractor elects to perform Route Reviews, Contractor shall, conduct Hauler Route reviews for Prohibited Container Contaminants in Collection Containers in a manner that is deemed safe by the Contractor; is

21 approved by the city; is conducted in a manner that results in all Hauler Routes being reviewed annually, and is consistent and in accordance with SB 1383 Regulations. Containers may be randomly selected along the Hauler Route. This Section should not be construed to require that every container on a Hauler Route must be sampled annually. Contractor may prioritize the inspection of Customers that are more likely to be out of compliance.

2. Upon finding Prohibited Container Contaminants in the Container, Contractor shall follow the contamination monitoring noticing procedures in Section 4.14.2 Warning Notices.

B. Waste Evaluations. Alternatively, if Contractor elects to perform Waste Evaluations, Contractor shall, conduct waste evaluations that comply with and meet the requirements of 14 CCR Section 18984.5(c). The City maintains the right to observe, or hire a third party to observe, the waste evaluations.

1. Sampling Method, Study Protocols. The Contractor shall conduct waste evaluations for Prohibited Container Contaminants by sampling the contents of Containers on Hauler Routes in the following manner:
a. If using a Standard Compliance Approach,
Contractor shall conduct waste evaluations at least twice per year and in two distinct seasons of the year in a manner that complies with the requirements of 14 CCR section 18984.5(c).
b. The Contractor’s waste evaluations shall include
samples of Source Separated Recyclable Materials, Source Separated Green Container Organic Waste, Source Separated Food Waste, and Black Container Waste.
c. The waste evaluations shall include samples from
each Container type served by the Contractor and shall include samples taken from different areas in the City that are representative of the City’s waste stream. d. The waste evaluations shall include at least the
minimum number of samples specified in SB 1383 Regulations. e. The Contractor shall Transport all of the material
Collected for sampling to a sorting area at a permitted solid waste Facility where the presence of Prohibited Container Contaminants for each Container type shall be measured to determine the ratio of Prohibited Container Contaminants present in each material stream by weight. To determine the ratio of Prohibited Container Contaminants, the Contractor shall use protocols established in accordance with SB 1383 regulations.

2. Contamination Response. If the sampled weight of
Prohibited Container Contaminants exceeds twenty-five percent (25%) of the

22 measured sample for any material stream, the Contractor shall complete one of the following:
a. Within fifteen (15) working days of the waste
evaluation, notify all Generators on the sampled Hauler Route of their requirement to properly separate materials into the appropriate Containers. The Contractor may provide this information by placing a written notice on the Generators’ Containers or the gate or door of the Premises; and/or by mail, email, or electronic message to the Generators. The format of the warning notice shall be approved by the City; or
b. Perform a targeted route review of containers on the routes sampled for waste evaluations to determine the sources of contamination and notify those generators of their obligation to properly separate materials.

Contractor may prioritize the inspection of Customers that are more likely to be out of compliance. Upon finding Prohibited Container Contaminants in the Container, Contractor shall follow the contamination monitoring noticing procedures in Section 4.14.2 Warning Notices.

3. Material Exceptions. Organic Waste that is textiles, carpet, hazardous wood waste, human waste, pet waste, or material subject to a quarantine on movement issued by a County agricultural commissioner is not required to be measured as Organic Waste when calculating the amount of Organic Waste present in the Black Container Waste.

C. Recordkeeping Requirements. Contractor shall maintain all applicable records required under SB 1383 Regulations, and report to the City on contamination monitoring activities, route reviews and/or waste evaluations, and actions taken.

D. Alternative Compliance. Nothing in this section shall prohibit Contractor from meeting its compliance requirements by any alternative methods or procedures, provided it complies with SB 1383, the SB 1383 Regulations, and/or any other applicable law, as may be amended from time to time.

17. Section 5.6 “Generator Waiver Program Coordination” is hereby added to the Agreement to read as follows:

5.6.1 General
In accordance with SB 1383 Regulations and section 8.15.050 in Title 8 Health and Safety of the Rancho Cucamonga Municipal Code, the City may grant waivers to Generators that impact the scope of Contractor’s provision of service for those Customers. Waivers issued shall be subject to compliance with SB 1383 Regulatory requirements, pursuant to 14 CCR Section 18984.11.

5.6.2 Requests Submitted to Contractor
Generators may submit requests for waivers to the Contractor. Contractor shall review the Generator’s waiver application and inspect the Generator’s Premises to verify the accuracy of the application. Contractor shall provide

23 documentation of the inspection, including the Contractor’s recommendation to approve or deny the waiver request to the City for the City’s review and approval.

The City ultimately retains the right to approve or deny any application, regardless of the Contractor’s recommendation. Contractor shall report information regarding waivers reviewed to the City.

5.6.3 Contractor Change in Customers’ Service Levels
When the City grants a waiver to a Generator, the City shall notify the Contractor within ten (10) business days of the waiver approval with information on the Customer and any changes to the Service Level or Collection service requirements for the Customer. Contractor shall have five (5) business days to modify the Customer’s Service Level and billing statement, as needed.

5.6.4 Reverification of Waivers
Contractor shall conduct such reverifications of waivers through inspection of each Generator’s Premises and review of applicable records at least once every five (5) years from the date of issue for de minimis and physical space constraint waivers. Contractor shall maintain a record of each waiver verification and provide a report to the City documenting the waiver reverifications performed and recommendations to the City on those waivers that Contractor concludes are no longer warranted. The City shall make a final determination of the waiver eligibility of Generators.

5.6.5 Contractor Recordkeeping of Generators Granted Waivers Upon Contractor request, the City shall provide Contractor an updated listing of waivers approved by the City, including the Generators’ names, mailing address, service address, and type of waiver. Contractor shall maintain waiver- related records and report on waiver verifications, as required herein.

18. Section 5.7 “Compliance Inspections” is hereby added to the Agreement to read as follows:

Upon execution of this amendment, Contractor shall assist the City with and/or conduct applicable inspections and enforcement, to the extent delegable, as required by SB 1383 Regulations.

Contractor shall maintain all applicable records from inspection and enforcement in accordance with SB 1383 Regulations.

19. Section 5.8 “Edible Food Recovery Program” is hereby added to the Agreement to read as follows:

Upon the effective date of this Section 5.8, Contractor shall implement an Edible Food Recovery Program fulfilling the requirements outlined below in an

24 amount not less than specified in the calculations used to determine the Compliance Fee as set forth in Exhibit 5(D), Compliance Fee Components. 14 CCR Section 18991.1(a)(1) – Educate commercial edible food generators
14 CCR Section 18991.1(a)(3) – Monitor commercial edible food generator compliance
14 CCR Section 18991.2 – Recordkeeping Requirements for Jurisdiction Edible Food Recovery
Program
Contractor may use a subcontractor to complete some or all of the requirements in this section. Upon mutual agreement with the contractor, City may add additional requirements to the extent delegable, set forth in Title 14, Division 7, Chapter 12, Article 10 Jurisdiction Edible Food Recovery Programs, Food Generators, and Food Recovery. Additional requirements shall be included in the Compliance Fee as set forth in Exhibit 5(D).

20. Section 6.2 “Schedule of Future Adjustments” of the Agreement is hereby amended and restated in its entirety to read as follows:

Beginning with the Rate Period starting July 1, 2023, and ending on June 30, 2025, and for all subsequent Rate Periods, Contractor may request an annual adjustment biennially to the maximum rates set forth in the Rate Resolution approved by City Council in 2021. The Contractor shall submit its request in writing, to be received by City in Person or via certified mail or by other means approved by City, by the preceding April 1st, and shall be based on the method of adjustment described in Section 6.3 and Exhibit 5. The rate adjustment request shall include rate worksheets; invoices to verify cost of equipment, materials or services obtained by the Contractor for SB1383 compliance; methodology and calculations for SB 1383 fee; disposal and processing fee confirmation from disposal and processing facility(s); and CPI data. Should the rate packet or associated supporting materials include Contractor’s proprietary information, Contractor shall be required to find reasonable means to provide City and third-party consultant access to the necessary information to verify the accuracy of the proposed rates.

Failure to submit a written request by April 1st shall result in Contractor waiving the right to request such an increase for the subsequent Rate Period. Missed rate adjustments may not be added to rate adjustment applications in ensuing years.

Adjustment to the maximum rates is subject to the approval of the City Council at a public hearing, although the Council's discretion shall be limited to determining, based on substantial evidence, whether the requested maximum rate adjustment meets the requirements as set forth herein; provided that in the event an adjustment is not approved as a result of a valid majority protest in compliance with Article XIIID of the California Constitution, City and Contractor agree to meet and confer to determine if minimum State mandated programs and services can be maintained without increased rates through adjustments and changes to the existing service levels and programs.

25 Contractor shall reimburse City for costs associated with a third-party consultant, of City’s choosing, up to $10,000 per rate review, with an annual CPI adjustment, to review rate request and associated rate packet and worksheets.

21. Paragraph 6.3.1 “General” of Section 6.3 “Method of Adjustment” of the Agreement is hereby amended and restated in its entirety to read as follows:

Pursuant to Section 6.2, the Contractor may request an adjustment to the maximum rates according to the method described below and the detailed formulas shown in Exhibit 5, subject to review and approval of City. All future adjustments are to be effective July 1 of the same year.

City may, but is not required to, implement the biennial rate adjustment if Contractor does not request it. If a biennial adjustment that would have resulted in a rate decrease is not implemented for any reason, the next rate adjustment will be measured based on the change in indices from the last implemented rate adjustment; the intent is to ensure subsequent rate increases shall be offset with any decrease not previously implemented.

22. Section 6.3.2 “Minimum and Maximum Rate Adjustments” is hereby amended and restated in its entirety to read as follows:

From September 1, 2022 to June 30, 2023, Contractor shall absorb all costs and fees associated with SB 1383 implementation and increased HHW fees that Contractor incurs between September 1, 2022, and June 30, 2023, including but not limited to food waste collection for all single-family and multi-family residents, expanded outreach, expanded record keeping and reporting requirements, and other SB 1383 requirements as outlined in this amendment.

Beginning with the Rate Period starting July 1, 2023, Contractor may collect an SB 1383 Implementation Fee to offset its costs and fees associated with SB 1383 implementation. From July 1, 2023 to June 30, 2028, Contractor may recover the costs it will have incurred from September 1, 2022 to June 30, 2023 for Single-family residential mixed organics processing through the single family residential SB 1383 Implementation Fee by dividing such costs evenly in equal parts over that five-year period.

Beginning with the Rate Period starting July 1, 2023, and ending on June 30, 2025, and for all subsequent Rate Periods, in no event may the adjustment to the Service Component pursuant to this Article 6 and Exhibit 5, be an increase of more than the calculated twelve (12) month average change in the CPI for the previous calendar year or 5% whichever is less compared to the previous Rate Period.

23. Section 6.4 “Extraordinary Adjustments” of the Agreement is hereby repealed and replaced in its entirety with a new Section 6.4 “Disposal and Processing Cost Study/Analysis” to read as follows:

Beginning in 2023 and thereafter no less often than every five years, there shall be a requirement to conduct a disposal and processing cost study. The study shall include both a comparison and analysis of landfill tipping fees, processing

26 fees for recyclables, and processing fees for organics at facilities within a reasonable driving distance from the City, as well as those facilities located outside of a reasonable driving distance.

The study/analysis shall be conducted by a third-party consultant of the City’s choosing. Contractor shall reimburse the City for the cost of the study/analysis, up to $10,000 per study/analysis with an annual CPI adjustment.

City shall review the study/analysis results and, in City’s sole judgement and absolute, unfettered discretion, make the final determination as to whether an adjustment to the rates will be made, and if an adjustment is permitted, the appropriate amount of the adjustment.

24. A new paragraph, 8.3.3.1 “SB 1383 Recordkeeping and Reporting” is hereby added to Section 8.3 “Reports” of the Agreement to read as follows:

Contractor shall maintain all applicable records necessary to ensure compliance with the SB 1383 Regulations and shall assist City in meeting all applicable reporting requirements of the SB 1383 Regulations. Contractor shall allow City to audit and inspect such records and reports upon reasonable request.

25. A new subparagraph “d” is hereby added to paragraph 11.3.B.1. “Collection Reliability” of Section 11.3 “Liquidated Damages” of the Agreement to read as follows:
d) For each failure to offer, or upon Customer’s request provide, mandatory organics and recycling service to a new Customer account within thirty (30) days after the account has been established: $100
The parties agree that the above liquidated damages amount represents a reasonable estimate of the amount of such damages for such specific breaches, considering all of the circumstances existing on the date of this Second Amendment, including the relationship of the sums to the range of harm to City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each party specifically confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions in the Agreement and this Second Amendment at the time the Second Amendment was agreed to:

Contractor’s Initials: ______
City’s Initials: ______

26. Exhibit 5 “Rate Adjustment Methodology” to the Agreement is hereby amended and restated in its entirety read as set forth in the Attachment to this Second Amendment.

27. Other Terms and Conditions Unchanged. Except as expressly amended by the Second Amendment, all other terms and conditions of the Agreement shall remain unchanged. In the event of any conflict between the terms and conditions of this Second Amendment and the terms and conditions of the Agreement and/or any previous amendment thereto, the terms and conditions of this Second Amendment shall prevail and control.

27 28. Counterparts. This Second Amendment may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.
[Signatures appear on the following page]
IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed by and through their respective authorized officers, as of the date first above written.

CITY OF RANCHO CUCAMONGA BURRTEC WASTE INDUSTRIES, INC.

By: By:

L. Dennis Michael, Mayor
Its:

Attest:

By:

Janice C. Reynolds, City Clerk
Approved as to Form:

By:

Nick Ghirelli, City Attorney

28 ATTACHMENT
EXHIBIT 5
Rate Adjustment Methodology
General
Subject to the terms herein, the Contractor shall be entitled to an annual adjustment of all Rates. Each Rate, excluding special charges, includes a "Service Component", "Disposal Component", "Processing Component", "Fee Component" and “Compliance Component” which are annually adjusted.

Notwithstanding the 2022 Rate Adjustments adopted by the City, Contractor shall submit its application for a Rate adjustment to the City Manager on or before April 1st preceding the start of each Rate Period that begins July 1 where Rates will be adjusted, or no adjustment shall be made for that Rate Period.

Contractor's Rate application shall document all calculations and include all supporting schedules, documentation of Disposal or Processing tipping fee changes (including supporting calculations where applicable), documentation of tonnage calculations and/or assumptions, and any other documentation or evidence determined by the City Manager to be necessary to ensure that the calculation of Rate adjustments has been performed in strict conformance with the requirements of this Exhibit 5.

The City Council shall make a good faith effort to approve Rates by June 1, and such Rates shall be effective on each subsequent July 1. If Rates are not effective by July 1 due to a delay caused solely by City, City shall allow Contractor to retroactively bill Customers for the amount of the Rate increase for any period of delay that is solely caused by City. If Rates are not effective by July 1 as a result of Contractor's error or delay in submitting the Rate application in a complete and accurate form, then prior Rates remain in effect and no adjustment shall be made for that Rate Period.

In no event may the adjustment of the Service Component pursuant to this Exhibit, and Article 6 of the Agreement, be an increase in an amount greater than 5% of the Service Component, compared to the previous Service Component. In the event that calculations in accordance with this Exhibit result in an increase above five percent (5%) of the Service Component, any amount above five percent (5%) shall be carried forward and applied to the Service Component in subsequent Rate Adjustments until such time as the carried over amount has been applied in full.

Definitions
Certain terms which are specific to this Exhibit 5 are defined below:

1. Annual Percentage Change means the average value of an index for the twelve (12) month period ending December of most recently completed calendar year, minus the average index value for the twelve (12) month period ending December of the calendar year one year prior (year before last), divided by the average index value for the twelve (12) month period ending December of the calendar year one year prior. The Annual Percentage Change shall be rounded to the nearest thousandth (l,000th).

For example, if the Contractor is preparing its Rate application for Rates to be effective for July 1, 2022, the Annual Percentage Change in CPI shall be calculated as follows: [(Average CPI for January 2021 through December 2021) - (Average CPI for January 2020 through December 2020)] I (Average CPI for January 2020 through December 2020)].

29 2. Bureau of Labor Statistics (BLS) shall mean the U.S. Department of Labor, Bureau of Labor Statistics or its successor agency.

3. City Fees shall mean the Franchise Fee and HHW Fee specified in Sections 3.1 and 3.2 of the Agreement.

4. Consumer Price Index (CPI) shall mean the All Urban Consumers Index (CPI-U) compiled and published by the BLS, using the following parameters:

Area – Riverside-San Bernardino-Ontario, CA
Item - All Items
Base Period - December 2017 = 100
Not seasonally adjusted
Series Identification Number – CUURS49C SA0

5. Disposal/Processing Fee shall mean the fee charged per ton or unit of material delivered to an approved facility. The "Current Approved" Disposal/Processing Fee for any Approved Facility shall be the Disposal/Processing Fee in place on January 1 immediately preceding the submission of the Rate Application.

6. Rate means the maximum amount, expressed as a dollar unit, approved by City that the Contractor may bill for providing services under this Agreement.

7. Rate Adjustment Factor shall mean the amount, expressed as a percentage, by which the Service Component of each Rate is adjusted.

8. Service Component shall mean portion of Rate set by Contractor for costs related to service of Solid Waste as described in this Agreement, including, but not limited to fuel, personnel costs, and vehicle maintenance. The Service Component shall not include costs related to providing Street Sweeping services, Disposal and Processing Fees, Tipping Fees, Compliance Component, or City Fees.

9. Tipping Fee shall mean the Rate or tipping fee charged for each ton or unit of material delivered to an approved facility. The "Current Approved" Tipping Fee for any Approved Facility shall be the Tipping Fee in place on January 1 immediately preceding the submission of the Rate Application.

10. Compliance Component shall mean portion of the Rate charged to customers for program elements related to legislative requirements such as AB 939, AB 341, AB 1826, and SB 1383 as described in this agreement including but not limited to edible food recovery programs, procurement activities, equipment, contamination minimization requirements, education and outreach activities, container contamination minimization efforts, record keeping, and future compliance cost elements resulting from new legislation as mutually agreed upon by the Parties. The Compliance Component shall not include costs related to providing Street Sweeping services, Disposal and Processing Fees, or Tipping Fees.

11. Disposal Component shall mean portion of the Rate set by Contractor for costs related to disposal of Solid Waste materials as described in this agreement including but not limited to Tipping Fees,

30 Solid Waste Tons, and Customer counts. The Disposal Component shall not include costs related to providing Street Sweeping services, collection services, Compliance Component, or City Fees.

12. Processing Component shall mean portion of the Rate set by Contractor for costs related to processing of Solid Waste materials such as commingled recyclables, organic waste, and other materials as described in this agreement including but not limited to Tipping Fees, Solid Waste Tons, and Customer counts. The Processing Component shall not include costs related to providing Street Sweeping services, collection services, Compliance Component, or City Fees.

13. Fee Component shall mean portion of the Rate set by City for costs related to franchise fees as described in this agreement including but not limited to HHW Fees, Franchise Fees and other fees authorized by the City. The contractor shall collect, at the City's request, pass-through fees as funding for the City's programs
Methodology
The Rate adjustment methodology involves modifying: (A) the Service Component for the current Rate Period by CPI; (B) the Disposal, and/or Processing Component(s) by the actual changes to those components; (C) the Franchise Fee and HHW Fee Components based on the agreed upon percentage of Gross Receipts; and (D) the Compliance Component to determine the Rates for the coming Rate Period.

If the CPI is discontinued or revised during the Term by the BLS, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the CPI had not been discontinued or revised.

A. Service Component
Contractor shall calculate the adjustment to Single Family Dwelling, Multi-Family Dwelling, Commercial, and Roll-off Box Service Components using the following methodology:

Step 1: Calculate the "Service Component Factor" or "SCF".

Calculate the twelve (12) month average Change in the CPI for the previous calendar year. The factor shall be rounded to the nearest hundredth (l00th) percent.

Step 2: Calculate the adjusted Service Component, rounded to the nearest cent, for each Rate as follows:

Adjusted Service Component = Then-current Service Component * (1 + SCF) For example, assuming:

1. Then-current Service Component = $14.75

2. SCF = 4.74%

3. Adjusted Service Component = $14.75 * (I + 0.0474) = $15.45 Step 3: Verify the Adjusted Service Component does not exceed the maximum percentage increase as follows:

Service Component Factor < 5.00%
Step 4: Apply eligible carried over Adjusted Service Component from previous year when applicable.

31 B. Disposal and/or Processing Component(s)
Contractor shall calculate the adjustment to Single Family Dwelling Disposal and Processing Components using the following methodology:

Single Family Dwelling Disposal and Processing Component Calculation Step 1: Calculate the adjusted Single Family Dwelling Disposal Component, rounded to the nearest cent, for each Rate to reflect any change in the Tipping Fee charge at the approved Disposal Site, and the calculated average Tons of Refuse Collected per household per year, based on the actual tonnage of Single-Family Dwelling Refuse Collected in the prior calendar year and the average number of Single Family Dwelling units served, rounded to the nearest ten thousandth (10,000th).

The adjustment shall be calculated as follows:

Adjusted Disposal Component = Disposal Site Tipping Fee x Average Refuse Tons per Household Per Year I 12 months
For example, assuming:

1. Current Approved Disposal Site Tipping Fee = $50.88 per Ton

2. Average Refuse Tons per Household Per Year = 1.3395 Tons

3. Adjusted Disposal Component= $50.88 x 1.3395 I 12 = $5.68 Step 2: Calculate the adjusted Single Family Dwelling Recyclable Materials Processing Component, rounded to the nearest cent, for each Rate to reflect any change in the Tipping Fee charge at the approved MRF and the calculated average Tons of Recyclable Materials Collected per household per year, based on the actual tonnage of Single-Family Dwelling Recyclable Materials Collected in the prior calendar year and the average number of Single Family Dwelling units served, rounded to the nearest ten thousandth (10,000th). The adjustment shall be calculated as follows:

Adjusted Recyclable Materials Processing Component = Approved MRF Tipping Fee x Average Recyclable Materials Tons per Household Per Year I 12 months For example, assuming:

1. Current Approved MRF Tipping Fee= $71.92 per Ton

2. Average Recyclable Materials Tons per Household Per Year= 0.3456 Tons

3. Adjusted Recyclable Materials Processing Component= ($71.92) x 0.3456 I 12 = $2.07 Step 3: Calculate the adjusted Single Family Dwelling Organic Waste Processing Component, rounded to the nearest cent, for each Rate to reflect any change in the Tipping Fee charge at the approved Organic Materials Processing Facility and the calculated average Tons of Organic Waste Collected per household per year, based on the actual tonnage of Single-Family Dwelling Organic Waste Collected in the prior calendar year and the average number of Single Family Dwelling units served, rounded to the nearest ten thousandth (10,000th). The adjustment shall be calculated as follows:

Adjusted Organic Waste Processing Component = Approved Organic Waste Processing Facility Tipping Fee x Average Organic Waste Tons per Household Per Year I 12 months

32 For example, assuming:

1. Current Approved Organic Waste Processing Facility Tipping Fee= $80.00 per Ton

2. Average Organic Waste Tons per Household per Year= 0.7832 Tons

3. Adjusted Organic Waste Processing Component= $80.00 x 0.7832 I 12 = $5.22 Commercial and Multi-Family Dwelling Refuse and Recyclable Materials Disposal and Processing Component Calculation
Contractor shall calculate the adjustment to Commercial and Multi-Family Dwelling Refuse and Recyclable Materials Rate Disposal and Processing Components, using the following methodology:

Step 1: Calculate the adjusted Commercial and Multi-Family Dwelling Disposal Component, rounded to the nearest cent, for each Commercial and Multi-Family Dwelling Rate to reflect any change in the Tipping Fee charge at the approved Disposal Site, or a change in the estimated weight per cubic yard of Refuse Collected (which is initially established at one hundred five (105) pounds), and the appropriate weekly service level in cubic yards. The adjustment shall be calculated as follows:

Adjusted Disposal Component= 105 lbs* Weekly Service Level in Cubic Yards* 52 Weeks per Year I 2,000 pounds per Ton* Approved Disposal Site Tipping Fee I 12 months For example, assuming:

1. Current Approved Disposal Site Tipping Fee= $50.88 per Ton

2. Service Level (size of container * frequency of service) = 3 cubic yards, 1 x per week

3. Adjusted Disposal Component= 105 * 3 * l * 52 I 2,000 * $50.88 I 12 = $34.73 Step 2: Calculate the adjusted Commercial and Multi-Family Dwelling Recyclable Materials Processing Component, rounded to the nearest cent, for each Commercial and Multi-Family Dwelling Rate to reflect any change in the Tipping Fee charge at the approved MRF, and the appropriate weekly service level in cubic yards. The adjustment shall be calculated as follows:

Adjusted Recyclable Materials Processing Component = MRF processing costs* Weekly Service Level in Cubic Yards* 4.33 Average Weeks per Month
For example, assuming:

1. Current MRF Processing Costs = $3.55 per Cubic Yard

2. Service Level (size of container* frequency of service) = 3 cubic yards, Ix per week

3. Adjusted Disposal Component= $3.55 * 3 * I * 52/12 = $46.15 Commercial Green Waste and Food Waste Only Processing Component Calculation Contractor shall calculate the adjustment to Commercial Green Waste and Food Waste Rates Disposal and Processing Components, using the following methodology:

Step 1: Calculate the adjusted Commercial and Multi-Family Dwelling Green Waste Processing and Food Waste Processing Component, rounded to the nearest cent, for each Commercial Green Waste and Food Waste Rate to reflect any change in the Tipping Fee charge at the Approved Organic Materials Processing Facility, the estimated weight per cubic yard of Organic Material Collected (which shall be one hundred sixty (160) pounds for Green Waste, and four hundred (400) pounds for Food

33 Waste), and the appropriate weekly service level in cubic yards. The adjustment shall be calculated as follows:

Adjusted Green Waste Processing Component= 160 lbs* Weekly Service Level in Cubic Yards * 52 Weeks per Year I 2,000 pounds per Ton* Approved Green Waste Tipping Fee I 12 months For example, assuming:

1. Current Approved Green Waste Tipping Fee= $51.78 per Ton

2. Service Level (size of container* frequency of service) = 3 cubic yards, Ix per week

3. Adjusted Green Waste Processing Component= 160 * 3 * I * 52 I 2,000 * $51.78 I 12 = $53.85
AND
Adjusted Food Waste Processing Component= 400 lbs* Weekly Service Level in Cubic Yards * 52 Weeks per Year I 2,000 pounds per Ton* Approved Food Waste Tipping Fee I 12 months For example, assuming:

1. Current Approved Food Waste Tipping Fee= $92.82 per Ton

2. Service Level (size of container* frequency of service) = 2 cubic yards, Ix per week

3. Adjusted Food Waste Processing Component= 400 * 2 * 1 * 52 I 2,000 * $92.82 I 12 = $160.89
Multi Family Refuse with Recycling and Residential Bins Only shall calculate the adjustment to Organics Processing Components, using the following methodology:

Adjusted Organic Waste Processing Component used in the Single Family Dwelling Disposal and Processing Calculations
Compactor Refuse and Recyclable Materials Disposal and Processing Component Calculation Contractor shall calculate the adjustment to Compactor Refuse and Recyclable Materials Rate Disposal and Processing Components, using the following methodology:

Step 1: Calculate the adjusted Compactor Disposal Component, rounded to the nearest cent, for each Compactor Rate to reflect any change in the Tipping Fee charge at the approved Disposal Site, or a change in the estimated weight per cubic yard of Compacted Refuse Collected (which is initially established at three hundred fifteen (315) pounds), and the appropriate weekly service level in cubic yards. The adjustment shall be calculated as follows:

Adjusted Disposal Component= 315 lbs* Weekly Service Level in Cubic Yards* 52 Weeks per Year I 2,000 pounds per Ton* Approved Disposal Site Tipping Fee I 12 months For example, assuming:

1. Current Approved Disposal Site Tipping Fee= $50.88 per Ton

2. Service Level (size of container* frequency of service) = 3 cubic yards, Ix per week

3. Adjusted Disposal Component= 315 * 3 * 1 * 52 I 2,000 * $50.88 I 12 = $104.18

34 Step 2: Calculate the adjusted Recyclable Materials Processing Component, rounded to the nearest cent, for each Compactor Rate to reflect any change in the Tipping Fee charge at the approved MRF, and the appropriate weekly service level in cubic yards. The adjustment shall be calculated as follows:

Adjusted Recyclable Materials Processing Component= MRF Processing costs* Weekly Service Level in Cubic Yards* 4.33 Average Weeks per Month
For example, assuming:

1. Current MRF Processing Costs = $3.55 per Cubic Yard

2. Service Level (size of container * frequency of service) = 3 cubic yards, Ix per week

3. Adjusted Disposal Component= 3 * 1 * 52 / 12 * $3.55 = $46.15 Roll-Off Box Disposal and Processing Component Calculation Contractor shall calculate the adjustment to Roll-off Box Rates using the following methodology:

Step 1: Calculate the adjusted Roll-off Box Disposal Component, rounded to the nearest cent, for each Roll-off Box Rate to reflect any change in the Tipping Fee charge at the approved Disposal Site, and the estimated weight per pull (which shall be six (6) Tons for standard Roll-off Boxes, and ten (10) Tons for compactors and demolition boxes). The adjustment shall be calculated as follows:

Adjusted Disposal Component =Approved Disposal Site Tipping Fee * 6 Tons For example, assuming:

1. Current Approved Disposal Site Tipping Fee= $50.88 per Ton

2. Adjusted Disposal Component = $50.88 * 6 = $305.28
Step 2: Calculate the adjusted Roll-off Box Processing Component, rounded to the nearest cent, for each Roll-off Box Rate to reflect any change in the Tipping Fee charge at the Approved Processing Facility, and the estimated weight per pull (which shall be six (6) Tons for standard Roll-off Boxes, and ten (10) Tons for compactors). The adjustment shall be calculated as follows:

Adjusted Disposal Component= Approved Processing Facility Tipping Fee * 6 Tons For example, assuming:

1. Current Approved Processing Facility Tipping Fee= $11.93 per Ton

2. Adjusted Processing Component = $11.93 * 6 = $71.58
C. Compliance Components
Contractor shall calculate the adjustment to Single Family Dwelling, Multi-Family Dwelling, Commercial, and Roll-off Box Compliance Components using the following methodology:

Step 1: Determine annual program costs by calculating the sum of estimated program variable costs for the upcoming year, including the previous year’s actual surplus or shortfall.

35 For example, assuming:

1. Equipment Fee = $232,660 (375 food waste pails purchased for resident giveaways. SB 1383 barrel, bin, and roll off decal requirements)

2. Education & Outreach Fee = $164,447 (information packet sent to each resident and business, community meetings, videos, and presentations informing customers of their obligations under SB 1383)

3. Procurement Fee = $0.00 (Compost procurement and delivery to achieve 30% of City requirement)

4. Compliance Monitoring Fee = $283,810 (Cost to audit 3% of residential and 10% of Commercial customers)

5. Record Keeping Fee = $87,210 (Cost to manage, create, and record data and reports)

6. Edible Food Program Fee = $0.00 (Cost to manage 3 rd party contractor)

7. Other Fees / Funding = $0.00 (Miscellaneous Fees and/or Credits)

8. Previous Year Funding Surplus or Shortfall = $0.00 (Enter excess costs or balance remaining of monies from previous year’s estimate)
Total Compliance Component costs = $232,660+$164,447+$0+$283,810+$87,210+$0+$0+$0 = $768,127
Step 2: Determine adjusted Compliance Component Rate Impact for the upcoming year using one of two methods; fixed rate or average rate.

Method 1 – Average Rate.

Divide total Compliance Component costs by total number of customers by twelve (12) months.

For Example, assuming: Average Rate = $768,127 Compliance Component costs ÷ 42,331 total customers ÷ 12 months = $1.51 per customer, per month
OR
Method 2 – Fixed Rate.

Set a fixed rate per month for Single Family Dwellings (SFD) and determine a per yard rate for commercial customers using the remaining balance of the Compliance Component costs.

For Example, assuming:

1. City determines monthly fixed rate for Single Family Dwellings. $0.77

2. Calculate cost of Single Family Dwellings by multiplying fixed monthly SFD rate by number of SFDs
Single Family Dwelling fixed rate $0.77 * 37,734 Single Family Dwellings * 12 Months = $348,662 SFD Cost

36 Step 3: Subtract Single Family Dwelling cost from Compliance Component costs to determine commercial customer Compliance Component costs.

Compliance Component costs $768,127 - $348,662 SFD cost = $419,465 commercial customer Compliance Component cost.

Step 4: Divide commercial customer Compliance Component costs by total refuse yards per month Commercial customer Compliance Component cost $419,465 ÷ 12 months ÷ 91,988 Trash Yards per month = $0.38 Per Yard Per Month
Step 5: Determine commercial Compliance Component per service level per month For example, Calculate for 3 cubic yards, 1x per week:

Compliance Fee $0.38 * 3 yards * 1 one service * 4.33 weeks per month = $4.94 per month D. City Fee Components
Contractor shall calculate the adjustment to Single Family Dwelling, Multi-Family Dwelling, Commercial, and Roll-off Box City Fee Components using the following methodology:

Step 1: Calculate the City Fee Components, rounded to the nearest cent, for each Rate. This Step requires first calculating the gross total Rate. The adjusted City Fees for each Rate shall be calculated as follows:

Step 1A. Gross Total Rate = (adjusted Service Component + adjusted Disposal Component + adjusted Processing Component + Compliance Component) I (1 - (Franchise Fee Percentage of Gross Receipts (15%) + HHW Fee Percentage of Gross Receipts (1.75%)) For example, assuming:

1. Adjusted Service Component= $15.45

2. Adjusted Disposal Component= $5.68

3. Adjusted Recyclable Materials Processing Component= $2.07

4. Adjusted Organic Waste Processing Component= $5.22

5. Adjusted Compliance Component = $0.77

6. Franchise Fee Percentage of Gross Receipts= 15%

7. HHW Fee Percentage of Gross Receipts= 1.75%

8. Gross Total Rate= ($15.45 + $5.68 + $2.07 + $5.22 + $0.77) I (1- (0.15 + 0.0175)) = $35.06
Step IB: Franchise Fee Component= Gross Total Rate* 15% For example, assuming:

1. Franchise Fee Percentage of Gross Receipts= 15%

2. Gross Total Rate= $35.06

3. Franchise Fee Component= 0.15 * $35.06 = $5.26

37 Step IC: HHW Fee Component= Gross Total Rate* 1.75%
For example, assuming:

1. HHW Fee Percentage of Gross Receipts= 1.75%

2. Gross Total Rate= $35.06

3. HHW Fee Component= 0.0175 * $35.06 = $0.61
E. Total Adjusted Rates
Contractor shall calculate the total adjusted Single Family Dwelling, Multi-Family Dwelling, Commercial, and Roll-off Box City Rates using the following methodology:

Step 1: Calculate the adjusted value for each Rate charged under this Agreement. Adjusted Rates shall be calculated as follows:

Adjusted Rate = Adjusted Service Component + Adjusted Disposal Component + Adjusted Processing Component + Adjusted Fee Components + Adjusted Compliance Component For example, assuming:

1. Adjusted Service Component= $15.45

2. Adjusted Disposal Component= $5.68

3. Adjusted Recyclable Materials Processing Component= $2.07

4. Adjusted Organic Waste Processing Component= $5.22

5. Adjusted Compliance Component (Method 2) = $0.77

6. Franchise Fee Component = $5.26

7. HHW Fee Component= $0.61

8. Adjusted Rate= $15.45 + $5.68 + $2.07 + $5.22 + $0.77 + $5.26 + $0.61 = $35.06 F. Even Year Rate Adjustment
The maximum rates set forth in the Rate Resolution approved by City Council in 2022 shall also include an even year rate adjustment, adjusted by an amount equal to the twelve (12) month mean average change in the Consumer Price Index for the previous twelve (12) month period. The first such adjustment shall become effective July 1st, 2024 and shall apply ("CPI") to all rate components.

Step 1: Use the Rate Adjustment Methodology to calculate new rates for the upcoming rate period For Example, assuming proposed rates for the Rate Period July 1, 2023 – Jun 30, 2025 are as follows:

1. Adjusted Service Component= $16.22

2. Adjusted Disposal Component= $6.01

3. Adjusted Recyclable Materials Processing Component= $2.19

4. Adjusted Organic Waste Processing Component= $5.52

5. Adjusted Compliance Component (Method 2) = $0.77

6. Franchise Fee Component = $5.53

7. HHW Fee Component= $0.65

38 8. Adjusted Rate= $16.22 + $6.01 + $2.19 + $5.52 + $0.77 + $5.53 + $0.65 = $36.89 Step 2: Calculate the twelve (12) month average Change in the CPI for the previous calendar year. The factor shall be rounded to the nearest hundredth (l00th) percent.

For Example, assuming 2022 All items in Riverside-San Bernardino-Ontario, CA, all urban consumers, not seasonally adjusted annual average = 6.00% Step 3: Increase each applicable Fee by the adjusted annual average CPI and use the Rate Adjustment Methodology to calculate new rates for the projected even year Rate.

For example
Single Family Dwelling Disposal and Processing Component Calculation

1. Current Approved Disposal Site Tipping Fee = $53.84 per Ton

2. Average Refuse Tons per Household Per Year = 1.3395 Tons

3. Adjusted Disposal Component= $53.84 x 1.3395 I 12 = $6.01 Projected even year rate calculation

1. Current Approved Disposal Site Tipping Fee = $53.84 per Ton

2. Average Refuse Tons per Household Per Year = 1.3395 Tons

3. Adjusted Disposal Component= ($53.84 x 1.06) x 1.3395 I 12 = $6.37 Step 4: Calculate City Fee Components in accordance with the methods described in this exhibit Step 5: Determine Total Adjusted Rate for the even year

1. Adjusted Service Component= $17.03 (Apply or carry over ($0.16) eligible amounts as applicable)

2. Adjusted Disposal Component= $6.37

3. Adjusted Recyclable Materials Processing Component= $2.32

4. Adjusted Organic Waste Processing Component= $5.85

5. Adjusted Compliance Component (Method 2) = $0.77

6. Franchise Fee Component = $5.88

7. HHW Fee Component= $0.68

8. Adjusted Rate= $17.03 + $6.37 + $2.32 + $5.85 + $0.77 + $5.83 + $0.68 = $38.85 Step 6: Use approved City methods to propose revised solid waste rates For example, rate application for rates effective July 1, 2023 – June 30, 2025 Service Type Current Rate Proposed Rate Proposed Rate
July 1, 2023 July 1, 2024
Residential Standard
Service
$35.06 $36.89 $38.85

39 Step 7: Rate reconciliation
No later than June 30 of each even year, Contractor shall submit to the City actual Adjusted Rates using the approved methodology set forth in this Exhibit. Submitted Adjusted Rates shall be reconciled against the approved even year rate. Variances shall be incorporated into the proposed rates for the following rate period.

For example,
Rate Reconciliation Approved Actual Reconciliation
July 1,
2024
July 1, 2024 July 1, 2024
Disposal Component $6.37 $6.39 $0.02
Recyclable Materials Processing
Component
$2.32 $2.31 ($0.01)
July 1, 2025 Rate Adjustment Calculated Reconciliation Proposed July 1,
2025
July 1, 2024 July 1, 2025
Disposal Component $6.76 $0.02 $6.78
Recyclable Materials Processing
Component
$2.46 ($0.01) $2.45

DATE:August 17, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY: Elisa Cox, Assistant City Manager
Michael Parmer, Assistant to the City Manager
Hope Velarde, Management Analyst I
SUBJECT: Consideration of a Professional Services Agreement with Renne Public Policy Group for State Legislative Advocacy Services in the Annual Amount of $114,000 and Direct Staff to Adjust an Appropriation at Mid- Year. (CITY)
RECOMMENDATION:

Staff recommends that the City Council approve the agreement with Renne Public Policy Group (RPPG) to provide professional legislative representation, state advocacy, and lobbying services, in the annual amount of $114,000 and direct staff to adjust at mid-year, as appropriate.

BACKGROUND:

The City of Rancho Cucamonga has an aggressive Legislative Affairs Program that promotes the legislative interests of the City and Fire District at the County, State, and Federal government levels. The City actively monitors State and Federal legislation and communicates its position to appropriate State and Federal representatives. The City also aggressively seeks Federal, State, and County funding through earmarks, grants, and other discretionary funding for City projects, programs, and services. Examples of past successful State and Federal funding awards include:
the Dog Park at Central Park, Etiwanda Grade Separation, and the Second Story Library and Beyond Project.

In June 2022, the City went out to bid for state lobbying and advocacy. The selected state lobbying firm will advocate for the City and District and will be tasked with a number of objectives, including:
•Monitor and track bills that may impact the City and District’s interests in accordance with the legislative priorities established by the City Council. •Learn City and District’s finances, programs, and operations to objectively articulate potential impacts from pending legislation.
•Work closely with City and District staff to assess the impact of certain bills/administrative decisions and to develop a response either in support, opposition, or seek amendments to bills or administrative rules.
•Represent the City and District and meet with legislators, their staff, and governmental agency officials to advance the City and District’s legislative agenda and interests •Work closely with the city’s State representatives, and City staff to draft and develop legislation on matters of importance to the City and District. •Advocate for funding in the state budget, through legislation, and the drafting of grant

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applications.

ANALYSIS:

Through the City’s formal Request for Proposal process, the City received five (5) responses.

After analysis of the RFP responses, three (3) firms were invited for an interview, with RPPG ranking highest due to RPPG’s tailored advocacy strategy and conflict mitigation methods.

RPPG is a full-service lobbying and political consulting practice that supports public agencies and companies whose interests align with public agencies. RPPG draws from the wisdom of respected public officials, the knowledge of municipal policy experts, and the tenacity of experienced legislative advocates to provide a uniquely tailored, wraparound service approach, including grant writing, for their clients. RPPG is a division of Renne Public Law Group (RPLG), a well-established law firm, which combined, have a team of 40 legal and legislative professionals comprised of attorneys, lobbyists, senior advisors as well as administrative, legislative, and operational support staff. The proposed team that will be representing the City includes Managing Director, Dane Hutchings, Directors of Government Affairs, Sharon Gonsalves and Alyssa Silhi, and Senior Advisor, Dan Carrigg.

The term of the agreement will be for three years with two optional one-year extensions. The agreement also includes an amendment that addresses conflicts. Should RPPG have one or more clients whose legislative interests and priorities conflict with the City’s, RPPG will evaluate the nature of the conflict, and will mitigate any conflict by initiating the conflict process outlined in the amendment.

FISCAL IMPACT:

Lobbying and grant writing services will be provided for a monthly fee of $9,500, and up to, but not-to-exceed $5,000 annually for travel and per diem expenses. Budget for the project was included in the FY 22/23 adopted budget in General Overhead (001) Contract Services (5300), in the amount of $36,000, however an additional appropriation will be needed at mid-year as the cost of lobbying services have increased.

COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:

This item addresses City Core Values, “Providing and nurturing a high quality of life for all”, “Promoting and enhancing a safe and healthy community for all”, “Intentionally embracing and anticipating the future,” and “Relentless pursuit of improvement” because the City’s legislative efforts aim to achieve these values by advocating for the City’s interests at the State level.

ATTACHMENTS:

Attachment 1 - PSA
Attachment 2 - PSA Amendment
Attachment 3 - Exhibit A Scope of Services

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AGREEMENT FOR

PROFESSIONAL SERVICES
THIS AGREEMENT is made and entered into this 17th day of August, 2022, by and between the City of Rancho Cucamonga, a municipal corporation (“City”) and Renne Public Policy Group, a State Lobbyist Firm (“Consultant”).

RECITALS
A. City has heretofore issued its request for proposals to perform the following professional services:  State Advocacy and Lobbying    (“the Project”).

B. Consultant has submitted a proposal to perform the professional services described in Recital “A”, above, necessary to complete the Project.

C. City desires to engage Consultant to complete the Project in the manner set forth and more fully described herein.

D. Consultant represents that it is fully qualified and licensed under the laws of the State of California to perform the services contemplated by this Agreement in a good and professional manner.

AGREEMENT
NOW, THEREFORE, in consideration of performance by the parties of the mutual promises, covenants, and conditions herein contained, the parties hereto agree as follows:

1. Consultant’s Services.

1.1Scope and Level of Services. Subject to the terms and conditions set forth in this Agreement, City hereby engages Consultant to perform all technical and professional services described in Recitals “A” and “B” above, including, but not limited to  State Advocacy and Lobbying    , all as more fully set forth in the Consultant’s proposal, dated  August 17, 2022     and entitled “Scope of Work”, attached hereto as Exhibit “A”, and incorporated by reference herein. The nature, scope, and level of the services required to be performed by Consultant are set forth in the Scope of Work and are referred to herein as “the Services.” In the event of any inconsistencies between the Scope of Work and this Agreement, the terms and provisions of this Agreement shall control.

1.2Revisions to Scope of Work. Upon request of the City, the Consultant will promptly meet with City staff to discuss any revisions to the Project desired by the City. Consultant agrees that the Scope of Work may be amended based upon said meetings, and, by amendment to this Agreement, the parties may agree on a

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revision or revisions to Consultant’s compensation based thereon. A revision pursuant to this Section that does not increase the total cost payable to Consultant by more than ten percent (10%) of the total compensation specified in Section 3, may be approved in writing by City’s City Manager without amendment.

1.3Time for Performance. Consultant shall perform all services under this Agreement in a timely, regular basis consistent with industry standards for professional skill and care, and in accordance with any schedule of performance set forth in the Scope of Work, or as set forth in a “Schedule of Performance”, if such Schedule is attached hereto as Exhibit “A    ”.

1.4Standard of Care. As a material inducement to City to enter into this Agreement, Consultant hereby represents that it has the experience necessary to undertake the services to be provided. In light of such status and experience, Consultant hereby covenants that it shall follow the customary professional standards in performing the Services.

1.5Familiarity with Services. By executing this Agreement, Consultant represents that, to the extent required by the standard of practice, Consultant (a) has investigated and considered the scope of services to be performed, (b) has carefully considered how the services should be performed, and (c) understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. Consultant represents that Consultant, to the extent required by the standard of practice, has investigated any areas of work, as applicable, and is reasonably acquainted with the conditions therein. Should Consultant discover any latent or unknown conditions, which will materially affect the performance of services, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant’s risk until written instructions are received from the City Representative.

2. Term of Agreement. The term of this Agreement shall be three (3) year and shall become effective as of the date of the mutual execution by way of both parties signature (the “Effective Date”). No work shall be conducted; service or goods will not be provided until this Agreement has been executed and above requirements have been fulfilled.

Parties to this Agreement shall have the option to renew in one (1) year increments to a total of two (2) years, unless sooner terminated as provided in Section 14 herein. Options to renew are contingent upon the City Manager’s approval, subject to pricing review, and in accordance with all Terms and Conditions stated herein unless otherwise provided in writing by the City.

3. Compensation.

3.1Compensation. City shall compensate Consultant as set forth in Exhibit A, provided, however, that full, total and complete amount payable to Consultant shall not exceed $ 9,500 monthly retainer plus not to exceed $5,000 annually in

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travel expenses     ( nine thousand five hundred dollars monthly retainer, plus not to exceed five thousand dollars annually in travel expenses    ), including all out of pocket expenses, unless additional compensation is approved by the City Council.

City shall not withhold any federal, state or other taxes, or other deductions. However, City shall withhold not more than ten percent (10%) of any invoice amount pending receipt of any deliverables reflected in such invoice. Under no circumstance shall Consultant be entitled to compensation for services not yet satisfactorily performed.

The parties further agree that compensation may be adjusted in accordance with Section 1.2 to reflect subsequent changes to the Scope of Services. City shall compensate Consultant for any authorized extra services as set forth in Exhibit A.

4. Method of Payment.

4.1Invoices. Consultant shall submit to City monthly invoices for the Services performed pursuant to this Agreement. The invoices shall describe in detail the Services rendered during the period and shall separately describe any authorized extra services. Any invoice claiming compensation for extra services shall include appropriate documentation of prior authorization of such services. All invoices shall be remitted to the City of Rancho Cucamonga, California.

4.2City shall review such invoices and notify Consultant in writing within ten (10) business days of any disputed amounts.

4.3City shall pay all undisputed portions of the invoice within thirty (30) calendar days after receipt of the invoice up to the not-to-exceed amounts set forth in Section 3.

4.4All records, invoices, time cards, cost control sheets and other records maintained by Consultant relating to services hereunder shall be available for review and audit by the City.

5. Representatives.

5.1City Representative. For the purposes of this Agreement, the contract administrator and City’s representative shall be  Michael Parmer, Assistant to the City Manager    , or such other person as designated in writing by the City (“City Representative”). It shall be Consultant’s responsibility to assure that the City Representative is kept informed of the progress of the performance of the services, and Consultant shall refer any decisions that must be made by City to the City Representative.

Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the City Representative.

5.2Consultant Representative. For the purposes of this Agreement, Dane Hutchings, Managing Director     is hereby designated as the principal and representative of Consultant authorized to act in its behalf with respect to the services specified herein and make all decisions in connection therewith (“Consultant’s Representative”). It is expressly understood that the experience, knowledge, capability

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and reputation of the Consultant’s Representative were a substantial inducement for City to enter into this Agreement. Therefore, the Consultant’s Representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. Consultant may not change the Responsible Principal without the prior written approval of City.

6. Consultant’s Personnel.

6.1All Services shall be performed by Consultant or under Consultant’s direct supervision, and all personnel shall possess the qualifications, permits, and licenses required by State and local law to perform such Services, including, without limitation, a City business license as required by the City’s Municipal Code.

6.2Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Services and compliance with the standard of care set forth in Section 1.4.

6.3Consultant shall be responsible for payment of all employees’ and subcontractors’ wages and benefits, and shall comply with all requirements pertaining to employer’s liability, workers’ compensation, unemployment insurance, and Social Security. By its execution of this Agreement, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

6.4Consultant shall indemnify, defend and hold harmless City and its elected officials, officers and employees, servants, designated volunteers, and agents serving as independent contractors in the role of city or agency officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from Consultant’s violations of personnel practices and/or any violation of the California Labor Code. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6.

7. Ownership of Work Product.

7.1Ownership. All documents, ideas, concepts, electronic files, drawings, photographs and any and all other writings, including drafts thereof, prepared, created or provided by Consultant in the course of performing the Services, including any and all intellectual and proprietary rights arising from the creation of the same (collectively, “Work Product”), are considered to be “works made for hire” for the benefit of the City. Upon payment being made, and provided Consultant is not in breach of this Agreement, all Work Product shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Basic survey notes, sketches, charts, computations and similar data prepared or obtained by Consultant under

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this Agreement shall, upon request, be made available to City. None of the Work Product shall be the subject of any common law or statutory copyright or copyright application by Consultant. In the event of the return of any of the Work Product to Consultant or its representative, Consultant shall be responsible for its safe return to City. Under no circumstances shall Consultant fail to deliver any draft or final designs, plans, drawings, reports or specifications to City upon written demand by City for their delivery, notwithstanding any disputes between Consultant and City concerning payment, performance of the contract, or otherwise. This covenant shall survive the termination of this Agreement. City’s reuse of the Work Product for any purpose other than the Project, shall be at City’s sole risk.

7.2. Assignment of Intellectual Property Interests: Upon execution of this Agreement and to the extent not otherwise conveyed to City by Section 7.1, above, the Consultant shall be deemed to grant and assign to City, and shall require all of its subcontractors to assign to City, all ownership rights, and all common law and statutory copyrights, trademarks, and other intellectual and proprietary property rights relating to the Work Product and the Project itself, and Consultant shall disclaim and retain no rights whatsoever as to any of the Work Product, to the maximum extent permitted by law.

City shall be entitled to utilize the Work Product for any and all purposes, including but not limited to constructing, using, maintaining, altering, adding to, restoring, rebuilding and publicizing the Project or any aspect of the Project.

7.3Title to Intellectual Property. Consultant warrants and represents that it has secured all necessary licenses, consents or approvals to use any instrumentality, thing or component as to which any intellectual property right exists, including computer software, used in the rendering of the Services and the production of the Work Product and/or materials produced under this Agreement, and that City has full legal title to and the right to reproduce any of the Work Product. Consultant shall defend, indemnify and hold City, and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of city officials, harmless from any loss, claim or liability in any way related to a claim that City’s use is violating federal, state or local laws, or any contractual provisions, relating to trade names, licenses, franchises, patents or other means of protecting intellectual property rights and/or interests in products or inventions.

Consultant shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked documents, materials, software, equipment, devices or processes used or incorporated in the Services and materials produced under this Agreement. In the event City’s use of any of the Work Product is held to constitute an infringement and any use thereof is enjoined, Consultant, at its expense, shall: (a) secure for City the right to continue using the Work Product by suspension of any injunction or by procuring a license or licenses for City; or (b) modify the Work Product so that it becomes non- infringing. This covenant shall survive the termination of this Agreement.

8. Status as Independent Contractor. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act as an agent of

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City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City. Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and to defend, indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement.

Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees.

9. Confidentiality. Consultant may have access to financial, accounting, statistical, and personnel data of individuals and City employees. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are confidential and shall not be disclosed by Consultant without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. All City data shall be returned to City upon the termination of this Agreement. Consultant’s covenant under this section shall survive the termination of this Agreement. This provision shall not apply to information in whatever form that is in the public domain, nor shall it restrict the Consultant from giving notices required by law or complying with an order to provide information or data when such an order is issued by a court, administrative agency or other legitimate authority, or if disclosure is otherwise permitted by law and reasonably necessary for the Consultant to defend itself from any legal action or claim.

10. Conflict of Interest.

10.1Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services.

Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant “financially interested” (as provided in California Government Code §§1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained. Consultant or its employees may be required to disclose financial interests that may foreseeably be materially affected by the work performed under this Agreement pursuant to California Government Code § 87100 et seq and regulations promulgated by the Fair Political Practices Commission.

10.2Consultant further represents that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Consultant has not paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee,

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commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift.

10.3Consultant has no knowledge that any officer or employee of City has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited “conflict of interest” under applicable laws as described in subsection 10.1.

11. Indemnification.

11.1Professional Services. In connection with its professional services, the Consultant shall defend, hold harmless and indemnify City, and its elected officials, officers, employees, servants, volunteers, and agents serving as independent contractors in the role of city or agency officials, (collectively, “Indemnitees”), with respect to any and all damages, liabilities, losses, reasonable defense costs or expenses (collectively, “Claims”), including but not limited to liability for death or injury to any person and injury to any property, to the extent the same out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant or any of its officers, employees, subcontractors, consultants, or agents in the performance of its professional services under this Agreement. Consultant shall reimburse all reasonable defense costs and expenses, including actual attorney’s fees and experts’ costs incurred in connection with such defense.

11.2Other Indemnities. In connection with all Claims not covered by Section 11.1, the Consultant shall defend, hold harmless and indemnify the Indemnitees with respect to any and all Claims including but not limited to Claims relating to death or injury to any person and injury to any property, which arise out of, pertain to, or relate to the non-professional acts, omissions, activities or operations of Consultant or any of its officers, employees, subcontractors, consultants, or agents in the performance of this Agreement. Consultant shall defend Indemnitees in any action or actions filed in connection with any such Claims with counsel of City’s choice, and shall pay all costs and expenses, including actual attorney’s fees and experts’ costs incurred in connection with such defense.

11.3Nonwaiver of Rights. Indemnitees do not, and shall not, waive any rights that they may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.

11.4Waiver of Right of Subrogation. Except as otherwise expressly provided in this Agreement, Consultant, on behalf of itself and all parties claiming under

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or through it, hereby waives all rights of subrogation against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed by or on behalf of the Consultant.

11.5Survival. The provisions of this Section 11 shall survive the termination of the Agreement and are in addition to any other rights or remedies which Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee’s right to recover under this indemnity provision, and an entry of judgment against Consultant shall be conclusive in favor of the Indemnitee’s right to recover under this indemnity provision.

12. Insurance.

12.1Liability Insurance. Consultant shall procure and maintain in full force and effect for the duration of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services hereunder by Consultant, and/or its agents, representatives, employees and subcontractors.

12.2Minimum Scope of Insurance. Unless otherwise approved by City, coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed.
1/87) covering Automobile Liability, code 1 (any auto). (3) Worker’s Compensation insurance as required by the State of California, and Employer’s Liability Insurance.
(4) Professional Liability insurance in a form approved by the City, having an extended reporting period of not less than three (3) years; or Professional Liability insurance shall be maintained for a period of three (3) years after completion of the Services which shall, during the entire three (3) year period, provide protection against claims of professional negligence arising out of Consultant’s performance of the Services and otherwise complying with all applicable
provisions of this Section 13. Either policy shall be endorsed to include contractual liability to the extent insurable.

12.3Minimum Limits of Insurance. Consultant shall maintain limits no less than:

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(1) Commercial General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage.

Commercial General Liability Insurance with a general
aggregate limit shall apply separately to this Agreement or the general limit shall be twice the required occurrence limit.
(2) Automobile Liability: $2,000,000 per accident for bodily injury and property damage.
(3) Employer’s Liability: $1,000,000 per accident and in the aggregate for bodily injury or disease and Workers’
Compensation Insurance in the amount required by law.
(4) Professional Liability: $1,000,000 per claim/aggregate.

12.4Deductibles and Self-Insured Retentions. Any deductibles or self- insured retentions must be declared to and approved by the City.

12.5Other Insurance Provisions.
(1) The commercial general liability and automobile liability policies are to contain the following provisions on a
separate additionally insured endorsement naming the City, its officers, officials, employees, designated volunteers and agents serving as independent contractors in the role of city or agency officials, are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of Consultant; products and completed
operations of Consultant; premises owned, occupied or
used by Consultant; and/or automobiles owned, leased,
hired or borrowed by Consultant. The coverage shall
contain no limitations on the scope of protection afforded to City, its officers, officials, employees, designated volunteers or agents serving as independent contractors in the role of City or agency officials which are not also limitations applicable to the named insured.
(2) For any claims related to this Agreement, Consultant’s insurance coverage shall be primary insurance as respects City, its officers, officials, employees, designated
volunteers and agents serving as independent contractors in the role of city or agency officials. Any insurance or self- insurance maintained by City, their officers, officials, employees, designated volunteers or agents serving as
independent contractors in the role of city or agency

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officials shall be excess of Consultant’s insurance and shall not contribute with it.
(3) Consultant’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. (4) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled except after 30 days prior written notice by first class mail has been given to City (ten (10) days prior written notice for non-payment of premium). Consultant shall provide thirty (30) days written notice to City prior to implementation of a reduction of limits or material change of insurance
coverage as specified herein.
(5) Each insurance policy, required by this clause shall expressly waive the insurer’s right of subrogation against City and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of city or agency
officials.
(6) Be issued by an insurance company approved in writing by City, which is admitted and licensed to do business in the State of California and which is rated A:VII or better
according to the most recent A.M. Best Co. Rating
Guide.
(7) Specify that any failure to comply with reporting or other provisions of the required policy, including breaches of warranty, shall not affect the coverage required to be
provided.
(8) Specify that any and all costs of adjusting and/or defending any claim against any insured, including court costs and attorneys' fees, shall be paid in addition to and shall not deplete any policy limits.
(9) Other required insurance, endorsements, or exclusions as required by the City in any request for proposals applicable to this Agreement.

12.6 Evidence of coverage.Prior to commencing performance under this Agreement, the Consultant shall furnish the City with certificates and original endorsements, or copies of each required policy, effecting and evidencing the insurance coverage required by this Agreement. The endorsements shall be signed by a person