Ridgecrest City Council
July 6, 2022

Agendas are available on the City Website
https://www.ridgecrest-ca.gov/council-agendas
Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
AGENDA
July 6, 2022
Closed Session 5:00 p.m.

Regular Session 6:00 p.m.

City Hall, Council Chambers
100 100 West California Avenue
Ridgecrest CA 93555
Ricca Charlon, City Clerk
(760) 499-5002
In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in the meeting, please contact Ricca Charlon at (760) 499-5002. Requests must be made as early as possible and at least one full business day before the start of the meeting.

Documents and material relating to open session agenda items that are provided to the full City Council prior to a regular meeting will be available for public inspection and copying at City Hall.

City Council agendas and corresponding writings of open session items are available for public inspection at the following locations:

1. City of Ridgecrest City Hall, 100 W. California Ave., Ridgecrest, CA 93555

2. City of Ridgecrest official website at https://ridgecrest-ca.gov/212/City-Council

CITY COUNCIL
Eric A. Bruen, Mayor
L. Scott Hayman, Mayor Pro Tem
Solomon P. Rajaratnam, Vice Mayor
Kyle Blades, Council Member
Peggy Breeden, Council Member
Ron Strand, City Manager
Keith Lemieux, City Attorney
Martin Koczanowicz, City Attorney
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100 W. CALIFORNIA AVE. | RIDGECREST, CA 93555
Phone 760.499.5000 | Fax 760.499.1520
www.ridgecrest-ca.gov

NOTICE AND CALL OF A CLOSED SESSION MEETING OF THE

RIDGECREST CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY /

HOUSING AUTHORITY / FINANCING AUTHORITY

TO THE MEMBERS OF THE RIDGECREST CITY COUNCIL / SUCCESSOR

REDEVELOPMENT AGENCY / HOUSING AUTHORITY / FINANCING AUTHORITY, PUBLIC AND CITY CLERK:

PUBLIC NOTICE that a CLOSED SESSION MEETING of the Ridgecrest City Council/Successor Redevelopment Agency/Housing Authority/Financing Authority is hereby called on:

Wednesday, July 6, 2022 @ 5:00 p.m.

City Council Chambers
100 W. California Avenue
Ridgecrest, California
Said CLOSED SESSION MEETING shall be for the purpose of:

Conference with Legal Counsel – Existing Litigation (§ 54956.9) Name of Case: Mojave Pistachios, LLC v Indian Wells Valley Water District, et al. (Case No. 30-2021-01187275-CU-OR-CJC)
Conference with Legal Counsel – Anticipated Litigation
Pursuant to Government Code § 54956.9 Subparts (a), (d)(2) and (e)(3) – One Case Dated: June 30, 2022
Eric A. Bruen, Mayor / Chair
ATTEST:

Ricca Charlon, City Clerk
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RIDGECREST CITY COUNCIL

SUCCESSOR REDEVELOPMENT AGENCY

FINANCING AUTHORITY

HOUSING AUTHORITY

AGENDA
Wednesday, July 6, 2022 Closed Session – 5:00 p.m.

Regular Session – 6:00 p.m.

CALL TO ORDER

ROLL CALL

APPROVAL OF AGENDA

PUBLIC COMMENT ON CLOSED SESSION

CLOSED SESSION
Conference with Legal Counsel – Existing Litigation (§ 54956.9) Name of Case: Mojave Pistachios, LLC v Indian Wells Valley Water District, et al. (Case No. 30-2021-01187275-CU-OR-CJC)
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Pursuant to Government Code § 54956.9 Subparts (a), (d)(2) and (e)(3) – One Case

REGULAR SESSION
 Pledge Of Allegiance
 Invocation

ATTORNEY REPORT OUT OF CLOSED SESSION
PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA - Persons wishing to address the Council on matters that are within the Council’s jurisdiction and DO NOT ALREADY APPEAR ON THE AGENDA, may do so at this time.

COUNCIL ANNOUNCEMENTS
CONSENT CALENDAR – All Matters Listed Under The Consent Calendar Are To Be Considered Routine And Enacted By One Motion Unless Pulled By A Council Member Or A Member Of The Public.

1. A Resolution Regarding The Annual Assessments For The Consolidated Landscaping And Lighting District No. 2012-1 (The “District”); And Adoption Of The Resolution (1) Approving The Annual Engineer’s Report And (2) Ordering The Levy And Collection Of Assessments For Fiscal Year 2022/2023 REED

2. A Resolution Regarding The Annual Assessments For The Drainage Benefit Assessment District No. 2016-1 (The “District”); And Adoption Of Resolutions (1) Approving The Annual Engineer’s Report And (2) Ordering The Levy And Collection Of Assessments For Fiscal Year 2021/2022 REED

AGENDA - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – July 6, 2022

3. Announcing Proclamations Prepared For The Month Of July And Scheduled Date Of Presentation CHARLON

4. Resolution Of The Ridgecrest City Council Authorizing The City Manager To Enter Into A Memorandum Of Agreement With Sierra Sands Unified School District For Law Enforcement Services (School Resource Officer Program) MCLAUGHLIN

DISCUSSION / ACTION ITEMS

5. A Resolution Of The City Council Of The City Of Ridgecrest Delegating Authority Under Gov.

Code 21173 To The City Manager To Make Certain Determination(s) On Behalf Of The Agency STRAND

6. Appointment To Fill One (1) Seat On The Measure V Committee RAJARATNAM

7. Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA) HAYMAN

8. Discussion Of Future Development And Revenue Options STRAND

9. Introduction Of The Amended And Restated Solid Waste Franchise Agreement Between The City Of Ridgecrest And Waste Management Of California, Inc., A Waste Management Company

MCKENZIE

ORDINANCES

10. An Ordinance Of The Ridgecrest City Council Authorizing An Amendment To The Contract Between The City Council Of The City Of Ridgecrest And The Board Of Administration Of The California Public Employees' Retirement System (CalPERS) BREWTON COMMITTEE REPORTS**Committee Meeting dates are subject to change and will be announced on the City website
Infrastructure Committee
Members: Solomon Rajaratnam and Kyle Blades
Meeting: 4th Thursday each month at 5:00 p.m.

Location: City Hall Council Chambers
 Report from 6/23/22 – MEETING CANCELED

OTHER COMMITTEES, BOARDS, OR COMMISSIONS

CITY MANAGER REPORT

FUTURE AGENDA ITEMS

MAYOR AND COUNCIL COMMENTS

ADJOURNMENT
City of Ridgecrest Public Meeting Protocol
In Response to Coronavirus (COVID-19)
City of Ridgecrest Council meetings are OPEN to public attendance. Although Chambers are OPEN, public participation is still encouraged via live streaming, call-in or via written correspondence.

TO PARTICIPATE please call, email, or send mail to the contact info provided below:

The public may use one of the following alternatives for participating in person:
 Watch meetings on-line:

All of our meetings are streamed live at https://ridgecrest-ca.gov/369/Watch or on YouTube at https://www.youtube.com/cityofridgecrest/live and are also available for playback after the meeting.
 Call in for public comments:

To participate with verbal comments, please call (760) 499-5010. This phone line will allow only one caller at a time, so if the line is busy, please continue to dial. We will be allowing a 20-30 second delay between callers to give time for media delays and callers to dial in. If you wish to comment on multiple items you will need to call in as each item is presented.  Submit written comments:

We encourage submittal of written comments supporting, opposing, or otherwise commenting on an agenda item, for distribution to the City Council prior to the meeting.

Send emails to [email protected]; written correspondence may be sent to Ricca Charlon, City Clerk, 100 W. California Ave., Ridgecrest, CA 93555. Please specify to which agenda item your comment relates. All communication, whether it is a formal letter or an online informal email, is read by the City Council.

Please click on the link below to access the City Council Agenda, Minutes and Video web page. https://ridgecrest-ca.gov/212/City-Council
If you have any questions please contact us.

Ricca Charlon, City Clerk
Phone: (760) 499-5002
*Revised February 24, 2021
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
Submitted by: Travis Reed Action Date: July 6
th
, 2022
SUBJECT: A Resolution Regarding The Annual Assessments For The Consolidated Landscaping And Lighting District No. 2012-1 (The “District”); And Adoption Of The Resolution (1) Approving The Annual Engineer’s Report And (2) Ordering The Levy And Collection Of Assessments For Fiscal Year 2022/2023
PRESENTED BY: Travis Reed, Director of Public Works
SUMMARY:

At the June 1
st
, 2022 City Council Meeting, the City Council adopted a resolutions initiating the annual proceedings and directing staff to prepare the annual Engineer’s Levy Report.

At the June 15th, 2022 City Council Meeting the City Council adopted a resolution and held a public hearing to discuss and revise, if necessary, the annual Engineer’s Report. Said Resolution declared the intention of the Council to levy the annual assessments and conduct a public hearing for all interested parties.

The formation of the Consolidated Landscaping and Lighting District No. 2012-1 was established in 2012 and subsequently have had future annexations to the District pursuant to the provisions of the Landscaping and Lighting Act of 1972 and the California Constitution Article XIIID, (Proposition 218). Per the 1972 Act and the Prop 218, annual engineering reports of cost are prepared and a public hearing is required.

The City of Ridgecrest is perpetuating the District to continue a dedicated revenue source to fund the expenses related to the special benefit to properties in the District to pay for the ongoing maintenance, operation and servicing of the local streetscape, landscaping and street lighting improvements established in connection with development of the properties within the boundaries of the District.

Tonight, staff recommends that the City Council: (1) Council approve the Resolution approving the Annual Engineers Report. (2) Order the levy and collection of assessments on the County tax rolls for fiscal year 2022/2023 as described in the report.

The deadline for submission to the County Tax rolls is July 8 th
, 2022
FISCAL IMPACT: The total annual maintenance cost to the District is $92,418.29, of which $89,852.58 is collectable. Annual maintenance costs are funded through the assessments placed on the property tax bills.

ACTION REQUESTED:
(1) Adopt a Resolution approving the Annual Engineer’s Levy Report. (2) Adopt a resolution ordering the levy of assessments for fiscal year 2022/2023.

CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION:

Action as requested
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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIDGECREST,

CALIFORNIA ORDERING THE LEVY AND COLLECTION OF

ASSESSMENTS WITHIN THE CONSOLIDATED LANDSCAPING AND
LIGHTING DISTRICT NO. 2012-1, FOR FISCAL YEAR 2022/2023 WHEREAS, The City Council of the City of Ridgecrest, California (hereafter referred to as “City Council”) has, by previous Resolutions initiated proceedings and declared its intention to levy special benefit assessments against parcels of land within the Consolidated Landscaping and Lighting District No. 2012-1, (hereafter referred to as the “District”) for the fiscal year commencing July 1, 2022, and ending June 30, 2023; pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereinafter referred to as the "Act") to pay the costs and expenses of operating, maintaining and servicing of the improvements located within the District; and, WHEREAS, City Staff as directed by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council the Engineer’s Annual Levy Report (hereafter referred to as the “Report”) in connection with the proposed levy and collection of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution approve such Report; and,
WHEREAS, The City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2022, and ending June 30, 2023, to pay the costs and expenses of operating, maintaining and servicing the improvements and appurtenant facilities located within the District; and, WHEREAS, The City Council has previously conducted a property owner protest ballot proceeding at the time the District was formed to establish the maximum assessment authorized for the District and the proposed assessments to be levied for Fiscal Year 2022/2023 as described in the Report are less than or equal to that authorized maximum assessment, and therefore comply with the approval provisions of the California State Constitution Article XIIID.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS:

Section 1 The above recitals are true and correct.

Section 2 Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving or amending the Report prepared in connection with the levy and collection of assessments, and has considered the oral and written statements, protests and communications made or filed by interested persons. The City Council has determined that the property owners in accordance with the requirements of the California State Constitution, Article XIIID have approved the assessments so presented.

Section 3 Based upon its review (and amendments, as applicable) of the Engineer’s Annual Levy Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk, the City Council hereby finds and determines that:
a) The land within the boundaries of the District will receive special benefit by the operation, maintenance and servicing of the improvements to be provided by the District and funded by the annual assessments.

Resolution 22-__ Page 2 of 3
b) District includes the lands receiving such special benefit. c) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net special benefit amount among the eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2022, and ending June 30, 2023.

Section 4 The Report and assessment as presented to the City Council and on file in the office of the City Clerk are hereby confirmed as filed.

Section 5 The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance and operation of and the furnishing of services and materials for landscape maintenance areas, street lighting and related appurtenant facilities and services.

Section 6 The maintenance, operation and servicing of the improvements shall be performed pursuant to the Act and the County Auditor of Kern County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer.

Section 7 The City Treasurer shall deposit the money representing assessments collected by the County for the District to the credit of a fund for the Landscaping and Lighting District No. 2012-1, and such money shall be expended for the maintenance, operation and servicing of the improvements as described in the Engineer’s Report.

Section 8 The adoption of this Resolution constitutes the District levy for the Fiscal Year commencing July 1, 2022, and ending June 30, 2023.

Section 9 The City Clerk or its designee is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 6th day of July, 2022. _______________________________ ,
Eric Bruen, Mayor
City of Ridgecrest
Attest:
_______________________________ ,
Ricca Charlon, City Clerk
City of Ridgecrest
Resolution 22-__ Page 3 of 3

STATE OF CALIFORNIA)
COUNTY OF KERN)ss.

CITY OF RIDGECREST)
I, Ricca Charlon, City Clerk of the City of Ridgecrest, County of Kern, State of California do hereby certify that the foregoing Resolution 22-xx was regularly adopted by the City Council of said City of Ridgecrest at a regular meeting of said council held on the 6 th day of July, 2022
by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:
________________________________
Ricca Charlon, City Clerk
City of Ridgecrest
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Page | i
City of Ridgecrest
Consolidated Engineer’s Report
City of Ridgecrest
Consolidated Landscaping and
Lighting District No. 2012-1
PRELIMINARY ENGINEER’S REPORT
FISCAL YEAR 2022/2023
Intent Meeting: June 1, 2022
Public Hearing: June 15, 2022
Adoption: July 6, 2022
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2022/2023 City of Ridgecrest
Consolidated Engineer’s Report

ENGINEER'S REPORT AFFIDAVIT
City of Ridgecrest
Consolidated Landscaping and Lighting District No. 2012-1 This Report describes the District and the relevant zones therein including the improvements, budgets, parcels and assessments to be levied for Fiscal Year 2022/2023 as they existed at the time of the passage of the Resolution of Intention.

Reference is hereby made to the Kern County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council.

Dated this ____________ day of ______________, 2022.

By: ________________________________
Travis Reed, Public Works Director
R.C.E. # 93828
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2022/2023 City of Ridgecrest
Consolidated Engineer’s Report

TABLE OF CONTENTS
INTRODUCTION ..................................................................................................... 2 PART I — PLANS AND SPECIFICATIONS .......................................................... 3 Description of the District ............................................................................ 3 Improvements Authorized under the 1972 Act ........................................... 4 District Improvements .................................................................................. 6 Landscape Improvements ............................................................................ 6 Lighting Improvements .............................................................................. 13 PART II — METHOD OF APPORTIONMENT .......................................................16 Benefit Analysis ................................................................................................... 16 Special Benefit ..................................................................................................... 18 General Benefit ..................................................................................................... 18 Landscape General Benefit………………………………………………………….. 19
Lighting General Benefit……………………………………………………………... 20
Assessment Methodology .................................................................................. 22 Zones of Benefit ................................................................................................... 22 Equivalent Benefit Units ...................................................................................... 23 Summary of Equivalent Benefit Unit Assignments……………………………… 32 Allocation of Improvement Costs Zone 1, 1B, 1C, 4, & 5.................................. 33 Allocation of Improvement Costs Zone 2, 3, 4 & 5 ............................................ 33 Calculation of Assessments ................................................................................ 34 Assessment Range Formula ................................................................................ 36 PART III — DISTRICT BUDGETS ......................................................................... 38 PART IV — DISTRICT DIAGRAMS ....................................................................... 40 PART V — ASSESSMENT ROLL ......................................................................... 46 Page | 2
2022/2023 City of Ridgecrest
Consolidated Engineer’s Report
Introduction
Pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the “1972 Act”), and in compliance with the substantive and procedural requirements of Article XIIID of the California State Constitution (hereafter referred to as the “California Constitution”), the City Council of the City of Ridgecrest, County of Kern, State of California (hereafter referred to as “City”), annually levies and collects special assessments in order to provide annual maintenance for parks, landscaping and lighting improvements within the Consolidated Landscaping and Lighting District No. 2012-1 (hereafter referred to as the “District”). The District was formed through the consolidation of several individual landscaping and lighting maintenance Districts that previously existed within the City. The original District and subsequent annexations of various territories and developments to the Consolidated District are identified as separate Zones and Annexations (hereafter referred to jointly as “Zones”). The District and the Zones therein have been established and are levied annual assessments, pursuant to the “1972 Act”).

This Engineer’s Report (hereafter referred to as “Report”) has been prepared in connection with the levy and collection of annual assessments related thereto as required pursuant to Chapter 1, Article 4 of the 1972 Act.

The City Council will levy and collect annual assessments on the County tax roll for fiscal year 2022/2023, to provide funding for the ongoing costs and expenses required to service and maintain the street lighting and landscape improvements associated with the development of properties within each Zones and Annexations. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1972 Act and the provisions of the California Constitution.

This Report describes the District, the improvements, and the assessments to be imposed upon properties in connection with the special benefits the properties receive from the maintenance and servicing of the District improvements. The assessments outlined in this Report represent an estimate of the annual direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the improvements to be provided by the District. Said assessments are based on specific development plans and specifications for each Zone and Annexation. Said costs have been developed off of previous expenditures of the district The development plans and specifications for each Zone and Annexation and the associated improvements are on file in the Office of Public Works of the City of Ridgecrest and by reference these plans and specifications are made part of this Report.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessment Number (Assessor’s Parcel Number— “APN”) by the Kern County Assessor’s Office. The County Auditor/Controller uses Assessment Numbers and specific District Fund Numbers, to identify on the tax roll, properties assessed for special district assessments. Each parcel within the District will be assessed proportionately for only those improvements for which the parcel receives special benefit.

Each fiscal year, an annual engineer’s report for the District shall be prepared and presented to the City Council to address any changes to the District including any Page | 3
2022/2023 City of Ridgecrest
Consolidated Engineer’s Report
annexations, changes to the improvements, budgets and assessments for that fiscal year. The City Council shall annually hold a noticed public hearing regarding these matters prior to approving and ordering the levy of assessments for the upcoming fiscal year.

Part I — Plans and Specifications
Description of the District
The 1972 Act allows various areas to be annexed into an existing district zone of benefit when the territory in the annexation receives substantially the same proportional special benefits from the improvements provided as other properties in the Zone or established as a separate Zone if the proportional special benefits from the improvements provided are different. The costs associated with the installation, maintenance, and servicing of the improvements may be assessed to those properties, which are benefited by the installation, maintenance, and servicing of such improvements.

Original District 2012-1
Zone 1: The territory within this Zone consists of the lots and parcels of land within Tract No. 6740. This was the original district formed in Fiscal Year 2012/2013, and is currently known as Zone 1. Tract 6740 is a residential subdivision consisting of sixty-seven (67) single-family residential homes, associated public rights-of-ways and easements as identified on the approved tract maps for Tract No. 6740. This residential tract is generally located on the west side of College Heights Boulevard, just north of Kendall Avenue and includes the residential streets designated as Del Rosa Drive, the south half ( ½ ) of Rain Shadow Court, Salt River Drive, Majestic Sky Court and Wild Thorne Drive.

Zone 1B: The territory within this Zone consists of the lots and parcels of land within Tract No. 6775 and is a residential subdivision that will consist of seventy-six (76) single family residential parcels at build-out. This residential tract is located on the west side of College Heights Boulevard adjacent to and north of the Tract 6740 and south of Tract 6700 and Springer Avenue. Tract 6775 was formed in Fiscal Year 2016/2017. Currently only phase 1 of construction has been completed. Phase 1 consists of 16 residential lots.

The remaining 60 lots are yet to be developed.

Zone 1C: The territory within this Zone consist of one parcel of land within Tract 6700 and is a residential subdivision that will consist of fifty-three (53) single-family residential parcels at build-out, along with a park and storm drain basin. Tract 6700 is located on the west side of College Heights Boulevard, south of Springer Avenue and north of the adjacent subdivision Tract 6775. Tract 6700 was formed in Fiscal Year 2016/2017. Annexation No. 2016-2
Zone 2 and 3: The territories in these Zones were formed in Fiscal Year 2017/2018 (also known as Annexation No. 2016-2) the zones comprise of Residential and Non-Residential mixed used development and totals approximately eighty-three acres (83.08 acres) of which includes:

36.75 acres that is zoned and identified by the City as “Planned Multi-Family Residential” properties including parcels 343-351-01 through 343-351-03 and 343- 351-06 through Page | 4
2022/2023 City of Ridgecrest
Consolidated Engineer’s Report
343-351-08;
 5.86 acres that is identified as a “Vacant Non-Residential” property. This acreage being the portion of parcel 509-020-46 (14.32 acres) which is northeast College Heights Boulevard and northwest of Bataan Avenue. Parcel 509-020-46 is segregated into three lots by College Heights Boulevard and Bataan Avenue;  12.12 acres that is identified as “Developed Non-Residential” properties including parcels 509-020-21 and 509-020-22 located on the southwest corner of S. China Lake Boulevard and Bowman Road;
 28.35 acres that is identified as “Developed Non-Residential” properties including parcels 343-351-34 and 343-351-35 (the 2016 Walmart project) located on the southeast corner of S. China Lake Boulevard and Bowman road.

Annexation No. 2019-1
Zone 4: The territory within this Zone was formed in Fiscal Year 2019/2020 (also known as Annexation No. 2019-1) and is currently comprised of forty-five (45) parcels totaling approximately twenty acres (19.67 acres). More commonly known as Tract 6908. It was previously identified on the Kern County Assessor’s Parcel Number (APN) Maps as Book 456, Page 010, Parcels 02, 03 and 08. These parcels are expected to build out this year into forty-five (45) assessable benefiting Single-Family Residential lots (45 residential units), plus various easements and streets within Tract 6908 which are not subject to assessment, including N. Harriet Street, Ocean Drive, Paradise Drive and Beach Court.

Annexation 2018-2
Zone 5: The territory within this Zone was formed in Fiscal Year 2017/2018 (also known as Annexation No. 2018-2) and consisted of one parcel of land within Tract 7188. The territory within District 2018-2 (Tract 7188) was previously comprised of fourteen acres (14.40 acres), identified on the Kern County Assessor’s Parcel Number (APN) Maps as Book 453, Page 040, Parcel 12. This tract map is expected to build out this year, and will be forty (40) assessed benefiting Single-Family Residential properties (40 residential units), plus various easements and streets within Tract 7188 which are not subject to an assessment, including Marbella Drive, Terra Bella Place, Via Flore Way, San Michele and Arroyo Street.

Improvements Authorized under the 1972 Act
As generally defined by the 1972 Act and may be applicable to the District, the improvements and associated assessments may include one or more of the following:
 The installation or planting of landscaping;
 The installation or construction of statuary, fountains, and other ornamental structures and facilities;
 The installation or construction of public lighting facilities including, but not limited to street lights and traffic signals;
 The installation or construction of any facilities which are appurtenant to any of the Page | 5
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Consolidated Engineer’s Report
foregoing or which are necessary or convenient for the maintenance or servicing thereof;
The installation of park or recreational improvements, including, but not limited to, all of the following:
 Land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage.
 Lights, playground equipment, play courts, and public restrooms.

The acquisition of land for park, recreational, or open-space purposes or any existing improvement otherwise authorized pursuant to this section.

The maintenance or servicing, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement including but not limited to:
 Repair, removal, or replacement of all or any part of any improvements;   Grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, paving, water, irrigation, drainage, or electrical facilities;
 Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury;
 The removal of trimmings, rubbish, debris, and other solid waste;  The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti;
 Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements;  Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.

Incidental expenses associated with the improvements including, but not limited to:
 The costs of the report preparation, including plans, specifications, estimates, diagram, and assessment which can either be completed by city staff or a consultant;
 The costs of printing and advertising, publishing, posting and mailing of notices;  Compensation payable to the County for collection of assessments;  Compensation of any engineer or attorney employed to render services;  Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
 Costs associated with any elections held for the approval of a new or increased assessment.

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Consolidated Engineer’s Report
District Improvements
The purpose of the District is to ensure the ongoing maintenance, operation and servicing of local landscaping and lighting improvements and amenities established or installed in connection with development of the properties within the District. The specific improvements to be maintained are identified in various plans and documents associated with the District, which are on file with the City and by reference these plans, and documents are made part of this Report. These improvements generally include street lighting within and adjacent to the tract and the various landscaped areas on the perimeter of this development including the public parkways and easements on the west side of College Heights Boulevard and the north side of Kendall Avenue.

Landscape Improvements
The landscape improvements for the District may include, but are not limited to turf, ground cover, shrubs and plants, natural vegetation, trees, irrigation and drainage systems, masonry walls or other fencing, hardscapes, monuments, and associated appurtenant facilities located in the public right of way and/or on dedicated park area. The maintenance and servicing of the improvements generally include, but are not limited to all materials, equipment, utilities, labor and incidental expenses including administrative expenses required for the annual operation of the District as well as the performance of periodic repairs, replacement and expanded maintenance activities as needed to provide for the growth, health, and beauty of landscaping and/or the proper operation and functioning of the irrigation and drainage systems as well as the related hardscape amenities including fencing and sidewalks within the public-rights-of-way, which have been dedicated to the City for maintenance.

Original District 2012-1
Zone 1
Tract No. 6740 landscape areas may include, but are not limited to, the parkway and entryway areas located on the west side of College Heights Boulevard between Kendall Avenue and the northern boundary of Tract 6740 and the north side of Kendall Avenue between College Heights Boulevard to Del Rosa Drive. The following is a general description of the landscape improvements planned for this District and for which properties may be assessed.

College Heights Boulevard: Approximately 5,450 square feet of landscaped area located on the west side of College Heights Boulevard from the northern boundary of Tract 6740 (Northeast Corner of Lot 1) south to Salt River Drive including the entryway landscaping at the corner of Salt River Drive, which is adjacent to Lot 33. Said improvements are strictly based on the original landscaping plan, and subsequent budgets have been tailored to meet the current criteria which is being maintained. The planned improvements that were utilized for the establishment of this Zone Include, but are not limited to the following:
 1,485 square feet of landscaped area in the street right-of-way;  1,826 square feet of landscaped easement associated with Lot 1;  613 square feet of landscaped easement associated with Lot 2;  1,526 square feet of landscaped easement associated with Lot 33; Page | 7
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 15 Trees;
 207 Shrubs;
 25 vines attached to the masonry wall;
 313 linear feet of masonry wall;
 2,058 square feet of sidewalk area; and
 The drip irrigation system for these landscaped areas.

Approximately 3,982 square feet of landscaped area located on the west side of College Heights Boulevard from Salt River Drive south to Kendall Avenue including the entryway landscaping at the corners of Salt River Drive (adjacent to Lot 34) and Kendall Avenue (adjacent to Lot 61). Said improvements are strictly based on the original landscaping plan, and subsequent budgets have been tailored to meet the current criteria which is being maintained. The planned improvements that were utilized for the establishment of this Zone Include, but are not limited to the following:
 2,850 square feet of landscaped area in the street right-of-way;  76 square feet of landscaped easement associated with Lot 34;  38 square feet of landscaped easement associated with Lot 59;  1,018 square feet of landscaped easement associated with Lot 60;  15 Trees;
 128 Shrubs;
 34 vines attached to the masonry wall;
 449 linear feet of masonry wall;
 1 metal gate;
 2,916 square feet of sidewalk area; and
 The drip irrigation system for these landscaped areas.

Kendall Avenue: Approximately 1,480 square feet of landscaped area located on the north side of Kendall Avenue between College Heights Boulevard (adjacent to Lot 62) to Wild Thorne Drive including the entryway landscaping at the corner of Wild Thorne Drive (adjacent to Lot 67). Said improvements are strictly based on the original landscaping plan, and subsequent budgets have been tailored to meet the current criteria which is being maintained. The planned improvements that were utilized for the establishment of this Zone Include, but are not limited to the following:
 1,310 square feet of landscaped area in the street right-of-way;  170 square feet of landscaped easement associated with Lot 67 at the corner of Wild Thorne Drive;
 2 Trees;
 122 Shrubs;
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 47 vines attached to the masonry wall;
 561 linear feet of masonry wall;
 3,486 square feet of sidewalk area; and
 The drip irrigation system for these landscaped areas.

Approximately 1,243 square feet of landscaped area located on the north side of Kendall Avenue between Wild Thorne Drive and Del Rosa Street including the entryway landscaping and easements at the corners of Wild Thorne Drive (adjacent to Lot 50) and Del Rosa Street (adjacent to Lot 49). Said improvements are strictly based on the original landscaping plan, and subsequent budgets have been tailored to meet the current criteria which is being maintained. The planned improvements that were utilized for the establishment of this Zone Include, but are not limited to the following:
 1,243 square feet of landscaped area in the street right-of-way;  5 Trees;
 69 Shrubs;
 15 vines attached to the masonry wall;
 186 linear feet of masonry wall;
 1,530 square feet of sidewalk area; and
 The drip irrigation system for these landscaped areas.

Zone 1B (Tract 6775) & 1C (Tract 6700)
Approximately 29,185 square feet of park area located within Tract 6700, including but not limited to various park facilities and equipment, landscaping and irrigation system.; Approximately 49,600 square feet of minimally landscaped drainage basin/sump area located within Tract 6700 adjacent to the park area. (This drainage basin/sump area is primarily funded through the Drainage Benefit Assessment District No. 2016-1, but the landscape improvements associated with this facility may in part be funded by the assessments for this District);
Approximately 15,035 square feet of landscaped area (14’ foot wide landscape easement) located on the west side of College Heights Boulevard from the northern boundary of Tract 6740 (Northeast Corner of Lot 1) north to Springer Avenue; Approximately 5,015 square feet of landscaped area located on the south side of Springer Avenue between College Heights Boulevard and the western boundary of Tract 6700; The landscaping to be installed along College Heights Boulevard and Springer Avenue will be drought tolerant landscaping;
Any other landscaping facilities on the streets surrounding or adjacent to 6700 and 6775 identified in the final development plans.

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Annexation No. 2016-2
In order to establish an appropriate special benefit nexus between the improvements and services provided and the benefits to specific properties, two new Zones were established within the District as part of the annexation of parcels within Annexation No. 2016-2 (Zone 02 and Zone 03). Although most of the improvements associated with Annexation No. 2016-2, benefit and are proportionately shared by each of the parcels within Annexation No. 2016-2 depending on their proximity to the improvements, the new traffic signal being installed on E. Bowman Road between S. China Lake Boulevard and Silver Ridge Street as well as the street lights on S. Silver Ridge Street, are being installed and will be operated and maintained specifically for the 2016 Walmart project within Annexation No. 2016-2. Therefore, in order to address the difference in proportional special benefits, the two parcels that comprise the new Walmart are identified as Zone 02 and the remaining parcels within Annexation No. 2016-2 are identified as Zone 03.

Zone 2
Comprises that portion of the parcels within Annexation No. 2016-2 identified as:

The 2016 Walmart development, which includes Assessor’s Parcel Numbers 343-351-34 and 343-351-35. The parcels within this zone receive special benefit and are proportionately assessed in whole or in part for improvements that include, but are not limited to the following:

Approximately 16,620 square feet of median island improvements (a single median island) located on S. China Lake Boulevard between College Heights Boulevard and Bowman Road. These median island improvements include approximately 2,855 square feet of landscaping (irrigated trees and shrubs) and 13,765 square feet of hardscape surfaces. These improvements are proportionately shared by each of the parcels that has street frontage on S. China Lake Boulevard that are part of Annexation No. 2016-2 (Zone 02 and parcels 509-020-21, 509-020-22 and 509-020- 46 within Zone 03);  Approximately 4,595 square feet of perimeter/shared parkway landscaping located between the street and drainage channel on the north side of W. Bowman Road, located west of S. China Lake Boulevard to a point approximately 920 feet west of S.

China Lake Boulevard. These improvements are proportionately shared by each of the parcels that has street frontage on W. Bowman Road that are part of Annexation No. 2016-2 (parcels 509-020-21 and 509-020-22 within Zone 03);  Approximately 24,430 square feet of perimeter/shared parkway landscaping located between the street and drainage channel on the north side of E. Bowman Road, between S. China Lake Boulevard and Sunland Street. These improvements are proportionately shared by each of the parcels that has street frontage on E. Bowman Road that are part of Annexation No. 2016-2 (Zone 02 and parcels 343-351-01, 343- 351-02, 343-351-03, 343-351-06, 343-351-07, and 343-351-08 within Zone 03);  Approximately 8,285 square feet of median island landscaping (two median islands with irrigated trees and gravel) located on E. Bowman Road, between S. China Lake Boulevard and Silver Ridge Street. These improvements are proportionately shared by each of the parcels that has street frontage on E. Bowman Road that are part of Annexation No. 2016-2 (Zone 02 and parcels 343-351-01, 343-351-02, 343-351-03, 343-351-06, 343-351-07, and 343-351-08 within Zone 03); Page | 10
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Zone 3
Comprises that portion of the parcels within Annexation No. 2016-2 identified as:

The non-residential parcels and/or undeveloped properties within Annexation No. 2016- 2 that have frontage along S. China Lake Boulevard. These Zone 03 parcels are identified as Assessor’s Parcel Numbers 509-020-21, 509-020-22, and a portion of 509-020-46 (that portion of parcel 509-020-46 which is located northeast of College Heights Boulevard and northwest of E. Bataan Avenue).

The undeveloped properties (future multi-family residential parcels) within Annexation No. 2016-2, that are south of E. Bowman Road (excluding the 2015 Walmart development Zone 02). These parcels are identified as Assessor’s Parcel Numbers 343-351-01, 343- 351-02, 343-351-03, 343-351-06, 343-351-07, and 343-351-08.

The parcels within Zone 03 receive special benefit and are proportionately assessed in whole or in part for improvements that include, but are not limited to the following:
 Approximately 16,620 square feet of median island improvements (a single median island) located on S. China Lake Boulevard between College Heights Boulevard and Bowman Road. These median island improvements include approximately 2,855 square feet of landscaping (irrigated trees and shrubs) and 13,765 square feet of hardscape surfaces. These improvements are proportionately shared by each of the parcels that has street frontage on S. China Lake Boulevard that are part of Annexation No. 2016-2 (Zone 02 and parcels 509-020-21, 509-020-22 and 509-020- 46 within Zone 03);  Approximately 4,595 square feet of perimeter/shared parkway landscaping located between the street and drainage channel on the north side of W. Bowman Road, located west of S. China Lake Boulevard to a point approximately 920 feet west of S.

China Lake Boulevard. These improvements are proportionately shared by each of the parcels that has street frontage on W. Bowman Road that are part of Annexation No. 2016-2 (parcels 509-020-21 and 509-020-22 within Zone 03);  Approximately 24,430 square feet of perimeter/shared parkway landscaping located between the street and drainage channel on the north side of E. Bowman Road, between S. China Lake Boulevard and Sunland Street. These improvements are proportionately shared by each of the parcels that has street frontage on E. Bowman Road that are part of Annexation No. 2016-2 (Zone 02 and parcels 343-351-01, 343- 351-02, 343-351-03, 343-351-06, 343-351-07, and 343-351-08 within Zone 03);  Approximately 8,285 square feet of median island landscaping (two median islands with irrigated trees and gravel) located on E. Bowman Road, between S. China Lake Boulevard and Silver Ridge Street. These improvements are proportionately shared by each of the parcels that has street frontage on E. Bowman Road that are part of Annexation No. 2016-2 (Zone 02 and parcels 343-351-01, 343-351-02, 343-351-03, 343-351-06, 343-351-07, and 343-351-08 within Zone 03).

In 2019 City Council passed resolution 19-21 which enacted a maximum assessment of $100.00 for parcels 343-351-01, 343-351-02, 343-351-06, and 343-351-07, and a maximum assessment of
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$0.00 for parcels 343-351-08 and 343-351-03. This resolution is considered a cap on the assessment for the above mentioned parcels and calculations in this report assume the continuation of these imposed maximums. Due to the nature of the Act, the remaining parcels cannot be further levied to make up the uncollected difference and thus this fund must either be subsidized by the City General Fund or the reserve account which has been established for the district.

Annexation 2019-1
Zone 4
Comprises that portion of the parcels within Annexation 2019-1 (Tract 6908) and is currently forty-five (45) parcels totaling approximately twenty acres (19.67 acres). Previously, Annexation 2109-1 (Tract 6908) was comprised of three (3) parcels total. identified on the Kern County Assessor’s Parcel Number (APN) Maps as Book 456, Page 010, Parcels 02, 03 and 08. These parcels, now build out, are forty-five (45) assessed benefiting SingleFamily Residential lots (45 residential units), plus various easements and streets within Tract 6908 which are not subject to assessment, including N. Harriet Street, Ocean Drive, Paradise Drive and Beach Court. Parcels 456-010-02/03/08 shall no longer be assessed.

The landscaping improvements associated within Zone 04 are considered local improvements installed specifically in connection with the development of properties within Tract 6908 but may also include existing improvements that would otherwise be required or necessary for the development of properties to their full and best use.

The landscaping improvements for Zone 04 to be funded in whole or in part by the assessments, per original plan incorporate approximately 8,600 square feet of parkway landscaping area and 6,890 square feet of minimally landscaped drainage basin/sump area which collectively may include, but is not limited to: shrubs and plants; trees; ground cover (both hardscape and vegetation); an irrigation system; adjacent masonry walls or other fencing and sidewalks; entryway monuments or other ornamental structures and signs; and associated appurtenant facilities.

Currently after Tract revisions the basin/sump was redacted as a requirement and a Single family residence will be constructed. The Parkway landscaping along W. Drummond Ave. will be comprised of a mixture of decomposed granite and landscape rock consistent with a desert landscape and not requiring the use of water, improvements are more specifically identified below:
 The parkway landscaping behind the sidewalk on the south side of Drummond Avenue from the eastern boundary of Tract 6908 (being the western lot line of parcel 456-010- 04) to N. Harriet Street, including the corner parkway return area behind the sidewalk on the southeast corner of Drummond Avenue and N. Harriet Street adjacent to the northwest lot line of Tract 6908 Lot 1. (Approximately 590 square feet); Page | 12
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 The parkway landscaping behind the sidewalk on the south side of Drummond Avenue between N. Harriet Street and N. Inyo Street. This landscaping area includes the corner parkway return areas behind the sidewalk on the southwest corner of Drummond Avenue and N. Harriet Street adjacent to the northeast lot line of Tract 6908 Lot 46 and the southeast corner of Drummond Avenue and N. Inyo Street adjacent to the northwest lot line of Tract 6908 Lot 36. (Approximately 4,535 square feet);  The parkway landscaping behind the sidewalk on the east side of N. Inyo Street adjacent to Tract 6908, from the corner parkway return area at N. Inyo Street to where N. Inyo Street turns into Windy Lynn Avenue. This area is adjacent to the west and northwest lot lines of Lots 36, 35, and 34 within Tract 6908. (Approximately 650 square feet of landscaped area).

The maintenance and servicing of the landscaping improvements described above may include, but is not limited to the weed and graffiti abatement; as well as the installation, replacement and rehabilitation of the landscaping, repair or replacement of hardscape improvements and other related amenities. The planned improvements to be maintained as part of Zone No. 04 of the Consolidated District, exclude the fencing adjacent to the landscape areas and any street signage, ornamental lighting, or monument signs within or adjacent to the landscape areas.

The City’s Public Works Department is currently responsible for overseeing the ongoing maintenance, servicing, and operation of the landscaping improvements within the Consolidated District and shall authorize and schedule such maintenance and servicing as need, based on available funding for the above mentioned landscaped portions only.

Annexation 2018-2
Zone 5
Comprises that portion of the parcels within Annexation 2018-2 (Tract 7188), previously, a single parcel totaling approximately fourteen acres (14.40 acres), identified on the Kern County Assessor’s Parcel Number (APN) Maps as Book 453, Page 040, Parcel 12. This parcel, now built out will be forty (40) assessed benefiting Single-Family Residential properties (40 residential units), plus various easements and streets within Tract 7188 which are not subject to an assessment, including Marbella Drive, Terra Bella Place, Via Flore Way, San Michele and Arroyo Street.

The landscaping improvements associated within Zone 05 are considered local improvements installed specifically in connection with the development of properties within Tract 7188 but may also include existing improvements that would otherwise be required or necessary for the development of properties to their full and best use. The landscaping improvements for Zone 05 to be funded in whole or in part by the assessments incorporate approximately 7,460 square feet of non-irrigated, natural (hardscape) parkway area between the curb and masonry wall along the perimeter of the development incorporating the following:

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The parkway area behind the sidewalk on the north side of Drummond Avenue from Arroyo Street (the eastern boundary of Tract 7188) to Mahan Street (the western boundary of Tract 7188), including the corner parkway return areas behind the sidewalk at the corners of Drummond Avenue and Mahan Street, and Drummond Avenue and Arroyo Street. (Approximately 3,005 square feet of parkway area);
The parkway area behind the sidewalk on the east side of Mahan Street from Drummond Avenue (the southern boundary of Tract 7188), north to the northern boundary of Tract 7188, which is also the southern boundary of Tract 6133. (Approximately 4,455 square feet of parkway area);
The maintenance and servicing of the landscaping improvements described above may include, but is not limited to the regularly scheduled pest/vector control, weed and graffiti abatement; as well as the installation, replacement and rehabilitation of the parkway surface area.

The City’s Public Works Department is currently responsible for overseeing the ongoing maintenance, servicing, and operation of the landscaping improvements within the Consolidated District and shall authorize and schedule such maintenance and servicing as need, based on available funding for the above mentioned areas only.

Lighting Improvements
The various lighting improvements that are funded by assessments may include, but are not limited to: electrical energy, lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities associated with the street lights. Maintenance, operation, and servicing of these lighting improvements may include, but is not limited to the furnishing of electric current or other illuminating agent; as needed maintenance, repair, and replacement of worn out electrical components and light fixtures, including bulbs, ballasts, photoelectric cells, meters, electrical cables; repair or replacement of damaged poles, ground wires, and conduits caused by accidents, vandalism, time, and weather; and monitoring of the Underground Service Alert (USA) network to prevent damage by excavation.

Original District 2012-1
Zone 1, 1B & 1C
Public street lighting improvements to be funded by the District assessments may include, but are not limited to, electrical energy, lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities including, but not limited to:

Sixteen (16) street lights located within Tract No. 6740 including:
 4 lights on the south side of Rain Shadow Court
 3 lights on the north side of Salt River Drive
 2 lights on either side of Wild Thorne Drive
 3 lights on either side of Majestic Sky Court
 4 lights on the east side of Del Rosa Street
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Ten (10) street lights on the perimeter of Tract No. 6740 including:
 4 lights on the north side Kendall Street
 6 lights on the west side of College Heights Boulevard Any other public lighting facilities on the streets surrounding or adjacent to Tract No. 6740 including future traffic signals that may be deemed necessary or desired for the safe ingress or egress to the properties within the District.

Zone 1B (Tract 6775) & 1C (Tract 6700)
It is estimated that there will be approximately thirty-two (32) street lights located within Tracts 6700 and 6775 and eighteen (18) street lights on the perimeter of the two tracts along College Heights Boulevard and Springer Avenue.

Any other public lighting facilities on the streets surrounding or adjacent to Tracts 6740, 6700 and 6775 including future traffic signals that may be deemed necessary or desired for the safe ingress or egress to the properties within the District.

Annexation 2016-2
Zone 2
 Eighteen (18) LS-1 street lights (perimeter/shared street lights) located on E. Bowman Road, W . Bowman R o a d , a n d S . China L a k e B o u l e v a r d . These l i g h t s a r e proportionately shared by each of the parcels within Annexation No. 2016-2 (Zone 02 and Zone 03). These eighteen street lights include six (6) street lights on S. China Lake Boulevard, two (2) street lights on E. Bowman Road, and ten (10) street lights on W. Bowman Road;
 Five (5) LS-1 street lights (development specific street lights) located on the west side of Silver Ridge Street, south of E. Bowman Road. These street lights are specifically for the 2015 Walmart development and only these two parcels (343-351-34 and 343- 351- 35) within Annexation No. 2016-2 (Zone 02) receive special benefit and are proportionately assessed;
 Two traffic signals; one located on Bowman Road, between S. China Lake Boulevard and Sunland Street. This traffic signal and related traffic safety lights is specifically for accessing the 2015 Walmart development, and only these two parcels (343-351- 34 and 343-351-35) within Annexation No. 2016-2 (Zone 02) receive special benefit and are proportionately assessed. The other located on Bowman Road, at the intersections of S> China Lake Boulevard. This traffic signal was installed with the 2015 Walmart Development and provides a proportional benefit to both Zone 2 and Zone 3.

Zone 3
 Eighteen (18) LS-1 street lights (perimeter/shared street lights) located on E. Bowman Road, W . Bowman R o a d , a n d S . China L a k e B o u l e v a r d . These l i g h t s a r e proportionately shared by each of the parcels within Annexation No. 2016-2 (Zone 02 and Zone 03). These eighteen street lights include six (6) street lights on S. China Lake Boulevard, two (2) street lights on E. Bowman Road, and ten (10) street lights on W. Bowman Road.

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Annexation 2019-1
Zone 4
The lighting improvements associated within Zone 04 are identified as local street lighting improvements installed specifically in connection with the development of properties within Tract 6908 (Annexation 2019-1) which includes, but is not limited to:
 Five (5) internal residential streetlights on the streets within Tract 6908 located on Ocean Drive, Paradise Drive and Beach Court; and,
 Six (6) perimeter streetlights that are adjacent to the development, including two lights on the south side
Annexation 2018-2
Zone 5
The lighting improvements associated within Zone 05 are identified as local street lighting improvements installed specifically in connection with the development of properties within Tract 7188 (Annexation 2018-2) which includes, but is not limited to:
 Eight (8) internal residential streetlights located on Marbella Drive, Terra Bella Place, Via Flore Way, San Michele and the west side of Arroyo Street; and,  Four (4) perimeter streetlights that are adjacent to the development, including two lights on the north side of Drummond Avenue, one light at the northeast corner of Drummond Avenue and Mahan Street, and one streetlights on the east side of Mahan Street.

Excluded Improvements
Improvements that are not a part of the District include privately owned street lights and landscaping improvements located on private property and/or areas designated as Homeowner Association or Business Association properties or easements. Such improvements and facilities including street trees shall be provided and maintained by the individual property owners, property management group or association established in connection with the development of properties within the Consolidated District.

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Part II — Method of Apportionment
Based on the provisions of the 1972 Act and the California Constitution, this section of the Report summarizes an analysis of the benefits associated with the improvements and services to be provided by the District (both general and special); the resulting District structure (zones of benefit); the formulas used to calculate each parcel’s proportional special benefit and assessment obligation based on the entirety of the cost to provide the improvements (method of assessment); and the establishment of an inflationary formula for such assessments to address anticipated cost increases due to inflation (assessment range formula).

Benefit Analysis
The 1972 Act permits the establishment of assessment District by agencies for the purpose of providing certain public improvements, which include but are not limited to the construction, maintenance, operation, and servicing of landscape improvements, public street lighting and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
In conjunction with the provisions of the 1972 Act, the California Constitution Article XIIID addresses several key criteria for the levy of assessments, notably:

Article XIIID Section 2d defines District as:
“District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service”; Article XIIID Section 2i defines Special Benefit as:
“Special benefit” means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.

General enhancement of property value does not constitute “special benefit.” Article XIIID Section 4a defines proportional special benefit assessments as:
“An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”
Each of the District’ improvements and the associated costs to maintain and service those improvements have been reviewed, identified and allocated to properties within the District based on special benefit pursuant to the provisions of the California Constitution and 1972 Act. The local improvements provided by the District and for which properties will be assessed have been identified as necessary, desired and required for the orderly Page | 17
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development of the properties within each Zone to their full potential, consistent with the development plans and applicable portions of the City’s General Plan. As such, these particular improvements are clearly the direct result of developing each of the individual lots and parcels within the District and although the improvements are within the public rightsof-way or dedicated easements, the financial obligation to support and maintain such improvements would be necessary and required of the individual property owners either directly or through an association if the District were not established. Clearly these local improvements and the long-term maintenance and servicing of those improvements directly affect each property and provide shared special benefits including, but not limited to:
 enhanced property safety (protection and access) from local street lights within and adjacent to the development;
 enhanced property and neighborhood appearance (esthetics) resulting from wellmaintained landscaped areas, graffiti and debris control on the perimeter and entryways to the development; and,
 the long term economic and environmental advantages to properties including the enhanced presentation and marketability of properties that have such improvements, expanded green space and trees which reduce traffic noise and dust, and the long-term cost-efficiency of services being provided by the City (economy of scale) as well as the regulatory restrictions on future cost increases.

Based on the parameters of special benefit as outlined by the Constitution, general benefit may be described as an overall and similar benefit to the public in general resulting from the improvements, activity or service to be provided for which an assessment is levied.

Although the District improvements are located on public streets that are visible to the general public, it is clear that the ongoing maintenance of these improvements are only necessary for the appearance, safety and advantage of the properties within the District and are not required nor necessarily desired by any properties outside the District’ boundary. As the improvements and the services to be provided are specific to the development and properties within the District’ boundaries and these improvements and services do not extend beyond the District’ boundaries (The District encompasses all properties receiving special benefits), any access or proximity to these improvements by other nearby properties or developments would be considered incidental and the potential general benefits to the public at large are considered intangible. Therefore, it has been determined that these District’ improvements provide no measurable or quantifiable general benefit to properties outside the District or to the public at large.

The method of apportionment (method of assessment) established herein is based on the premise that each assessed property receives special benefits from the improvements, services and activities to be funded by such assessments, and the assessment obligation for each parcel reflects that parcel’s proportional special benefits as compared to other properties that receive special benefits as outlined in the preceding definitions established in the California Constitution. The assessment revenues to be collected for the District provide a means by which property owners can collectively and effectively fund the cost of shared local improvements that directly impact their property. The District assessments will support the operation and maintenance of the District improvements and shall be used for only that purpose, consistent with the intent of the Act and the Constitution.

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Special Benefit
The ongoing maintenance of landscaped areas within the District provide aesthetic benefits to the properties within each respective Zone and a more pleasant environment to walk, drive, live, and work. The primary function of these landscape improvements and related amenities is to serve as an aesthetically pleasing enhancement and green space for the benefit of the immediately surrounding properties and developments for which the improvements were constructed and installed and/or were facilitated by the development or potential development of properties within the Zones. These improvements are an integral part of the physical environment associated with the parcels in each Zone and while some of these improvements may in part be visible to properties outside the Zone, collectively if these Zone improvements are not properly maintained, it is the parcels within the Zone that would be aesthetically burdened. Additionally, the street landscaping in these Zones serve as a pleasant aesthetic amenity that enhances the approach to the parcels and in many cases, serve as both a physical buffer as well as a sound reduction buffer between the roadways and the properties in the District. Likewise, the landscaped areas in various Zones may include landscaped parks, green spaces, slopes, or trails that provide visually pleasing open space areas that serve as an extension of the physical attributes of the parcels assessed, such as their front or rear yards and may also provide a greater opportunity for recreation. As a result, the maintenance of these landscaped improvements provides particular and distinct benefits to the properties and developments within each Zone.

Likewise, street lighting in the District is primarily useful for illuminating the streets that provide access to the properties in the District as well as the sidewalks and parking lanes associated with those properties. While it is recognized that both street lights and traffic signals serve in part to enhance traffic safety, installation and construction of these improvements are for the most part, required by the development of properties within the District and these improvements provide three main special benefits to those properties: (I) property security benefit, (ii) pedestrian safety benefit, and (iii) parkway/roadway access benefit.

Furthermore, because traffic circulation in the City is largely the result of local traffic to and from these properties by the property owners and guests, it is reasonable to assume that these properties derive a particular and distinct benefit from the street lights and traffic signals that support the safe access to the properties and essentially all pedestrians and parking vehicles in the lit areas will, after dark, be directly associated with the assessed properties. As a result, the maintenance of these lighting improvements is a particular and distinct benefit to the properties and developments within each Zone.

Collectively these landscaping and lighting improvements and related assessments enhance the security, overall use, presentation and marketability of the properties, and ensure the long-term cost-efficiency of services that is obtained through the City provided maintenance (economy of scale), and the regulatory restrictions on future cost increases.

General Benefit
Landscaping General Benefit
In reviewing the location and extent of the specific landscaped areas and improvements to be funded by the District assessments and the proximity and relationship to properties to be assessed, it is evident these improvements were primarily installed in connection with the development of properties or are improvements that would otherwise be shared by and Page | 19
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required for development of those properties. Although the District improvements are located on public streets that are typically visible and/or accessible to the general public, it is evident that the ongoing maintenance of these improvements are only necessary for the appearance and advantage of the properties within the District that are directly associated with those improvements and these improvements (particularly the level of maintenance and servicing) are not required nor necessarily desired by any properties outside the District and various Zone boundaries. It is also evident that the maintenance of improvements and the level of maintenance provided has a direct and particular impact (special benefit) only on those properties in proximity to those improvements and such maintenance beyond that which is required to ensure the safety and protection of the general public and property in general, has limited (if any) indirect or incidental benefit to the public at large or properties outside each respective Zone which is difficult to quantify.

In the absence of a special funding Zone, the City’s maintenance of these improvements would for the most part, be limited to tree management, weed abatement, rodent control, and erosion control services for the various landscape areas. This basic or baseline level of service would typically provide for periodic servicing of these areas on an as-needed basis.

This baseline level of service would provide for public safety and essential property protection to avoid negative impacts on adjacent roadways and vehicles traveling on those roadways and potential property damage but results in a far less visually pleasing environment than is created with the enhanced levels of services associated with the regular landscape maintenance that can be provided through the District assessments.

On average, the cost to provide this baseline level of service for most landscape areas is estimated to be less than $700 per acre (approximately $0.0161 per square foot). This baseline service cost per square foot represents less than four percent (4%) of the overall cost per square foot to operate, maintain and service most landscape areas.

In addition to the general benefit identified above, it is recognized that there are indirect or incidental general benefits to properties within the District as well as the general public that are associated with regular landscape maintenance services, including:
 Minimization of dust and debris; and
 Decreased potential water runoff from both properties and the landscaped areas.

Although these types of benefits might best be characterized as indirect consequences of the special benefit of the landscape maintenance provided to parcels served by the District, for the purposes of calculating proportional benefits, we assume these types of benefits to be general benefits, albeit general benefits that are extremely difficult to quantify. We estimate that the costs associated with these indirect benefits do not exceed one percent (1%) of the annual m a i n t e n a n c e expenditures for t h e landscaping improvements.

Together with the baseline general benefit costs and the indirect/incidental general benefit costs identified above, it is reasonable to conclude that the overall general benefit costs associated with the District’ landscape improvements are less than five percent (5%) of the regular annual maintenance expenditures. These general benefit costs shall be excluded from the special benefit assessment funding and not assessed to the parcels within the District. The calculated general benefit for landscaping improvements is identified in the budgets for Page | 20
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each Zone (Part III of this Report).

Lighting General Benefit
In reviewing the location and extent of the specific lighting improvements (Perimeter/Shared Street Lights, Residential Street Lights, Development Specific Street Lights, and Traffic Signals) to be funded by District assessments and the proximity and relationship to properties to be assessed, like the landscaping improvements it is evident these improvements were primarily installed in connection with the development of the properties within the District or are lighting improvements that would otherwise be shared by and required for the development of those properties. It is also evident that the maintenance and servicing of these improvements has a direct and particular impact (special benefit) on those properties in proximity to those street lighting improvements and these street lighting improvements in most cases are lighting improvements that exceed what would otherwise be required for traffic circulation or to ensure the safety and protection of the general public and property in general.

Because these District lighting improvements are directly associated with the development or anticipated development of the properties within each respective District Zone and clearly provide a special benefit to those properties that is not shared by all properties in the City, it is certainly reasonable to conclude that the maintenance and operation of these improvements is largely if not entirely a special benefit to those properties to be assessed.

Based on the special benefits previously identified for street lights, it is apparent that within residential developments (Zone 01), the internal street lights (“Residential Street Lights”) were installed solely for the use and benefit of those specific residential properties and there is no quantifiable general benefit to other properties or to the public at large. However, based on a review of several residential developments within the City (including the developments in Zone 01), it is estimated that about thirty to forty percent (30% to 40%) of the total street lights associated with these residential developments are located on the perimeter of those developments and/or the collector streets shared by those developments. While most of these perimeter lights were clearly installed in connection with the development of those residential properties, it is reasonable to conclude that these particular lights (perimeter street lights) not only provide a special benefit to the properties in the adjacent developments but may also enhance general nighttime traffic safety and circulation for other properties and the general public. Based on various traffic circulation studies and related data, it is estimated that less than fifteen percent (15%) of these perimeter and collector street lights and associated costs, would be required in less concentrated development areas. Therefore, it has been determined that the general benefit related to the overall operation and maintenance of the street lights for residential developments is no more than six percent (6%) of the street light operating costs for residential developments (15% of the 40% of the total street lights). However, to ensure that no parcel is assessed for more than its proportional special benefit for residential street lighting, the City will contribute for general benefit a n a mo u n t e q u a l t o t e n p e r ce nt ( 10%) o f t h e b u d g e t e d r e g u l a r a n n u a l maintenance expenditures (maintenance and energy costs). These general benefit costs shall be excluded from the special benefit assessment funding and not assessed to the parcels within the District.

In regards to street lighting within Zones that have streets that are generally considered primary streets (Zone 02 and Zone 03), similar to the street lights located on the perimeter and collector streets in and around the residential developments of Zone 01, it is certainly Page | 21
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reasonable to recognize that the street lights on these primary streets within Zone 02 and Zone 03 provide a measure of general benefit to the public and to properties in general resulting from nighttime traffic safety and circulation on these primary streets. The American National Standard Practice for Roadway Lighting and various related traffic and street lighting studies suggest that over ninety percent (90%) of the street lights installed on primary streets in urban areas are directly the result of property development (both residential and non-residential development). In turn these developments increase traffic circulation and ultimately dictate the type of lighting, spacing and number of lights required and without such development, both the need and quantity of those lights would be dramatically reduced. Similar to the perimeter street lights associated with residential developments, it has therefore been determined that the general benefit related to the overall operation and maintenance of the street lights on primary streets is ten percent (10%) of the regular annual maintenance expenditures (maintenance and energy costs).

These general benefit costs shall be excluded from the special benefit assessment funding and not assessed to the parcels within the District. However, street lighting on secondary streets (side streets) in non-residential Zones such as those associated with Zone 02, are usually installed solely for the use and benefit of the adjacent properties and like internal residential street lights within residential neighborhoods, these lights provide no quantifiable general benefit to other properties or to the public at large.

In regard to traffic signals, the location and need for each traffic signal and related safety lights is typically dictated by a combination of property development, street classifications, traffic volumes, and traffic circulation. Because these factors and considerations collectively vary with the installation of each traffic signal, the proportional special and general benefit costs associated with each traffic signal will vary and cannot be categorized in the same manner as street lighting. However, similar to street lighting, traffic signals are typically installed in areas where development has occurred, and these traffic signals typically provide a special benefit to the nearby properties that utilize those intersections to access those properties. While the installation of street lighting which is primarily dictated by the development or potential development of specific properties (largely special benefit), the installation of traffic signals is often driven by more regional needs based on traffic circulation and volume and therefore, these traffic signals have a greater general benefit to the public at large. The proportional special and general benefit costs associated with each District maintained traffic signal shall be determined by the assessment engineer on a case by case basis.

As part of this Report for Annexation 2016-2, a new traffic signal will be installed on E.

Bowman Road at the entryway to the 2015 Walmart development (Assessor Parcel Numbers 343-351-34 and 343-351-35) that comprise Zone 02. This traffic signal is being installed solely and specifically for access to and from this development and serves no other overall traffic circulation purposes. Therefore, this traffic signal has been assigned entirely as a special benefit to these two parcels with no general benefit.

As part of this Report for Annexation 2016-2, a traffic signal was installed on E. Bowman Road at the intersection of S. China Lake Boulevard that comprises and aids traffic flow for Zone 02 and Zone 03. This traffic signal is being installed specifically for access to and from the developments in the area and serves minimal overall traffic circulation purposes which Page | 22
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would not be necessary if it were not for the development in the area. Therefore, this traffic signal has been assigned partially as a special benefit to both zones with five (5%) percent general benefit.

Assessment Methodology
The City proposes to annually levy and collect special benefit assessments in order to maintain and service the improvements associated with Tract No(s). 6740, 6775, 6700, 6908, 7188 and Zone 2 and 3. The estimated annual cost to maintain the improvements are identified in the budget section of this Report, including all estimated annual expenditures; funding for long term repair, replacement and rehabilitation costs; incidental expenses necessary to operate and support the District including administration and authorized reserve; and any revenues from other sources or previous deficit funding that would adjust the amount to be assessed.

In order to calculate and identify the proportional special benefit received by each parcel and ultimately each parcel’s proportionate share of the improvement costs it is necessary to consider not only the improvements and services to be provided, but the relationship each parcel has to those improvements as compared to other parcels in the District. Article XIIID Section 4a reads in part:
“…The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement or for the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”
The benefit formula used to determine the assessment obligation should therefore be based upon both the improvements that benefit the parcels within the District as well as the land use of each property as compared to other parcels that benefit from those specific improvements. To identify and determine the special benefit to be received by each parcel and its proportional share of the improvement costs it is necessary to consider both the planned improvements and the properties that benefit from those improvements.

Landscaping and lighting improvements like most public improvements, provide varying degrees of benefit (whether they be general or special) based largely on the extent of such improvements, the location of the improvements in relationship to properties, the different types of properties associated with the improvements and the reason or need for such improvements as it relates to individual properties. To establish the proportional special benefit of each parcel, these factors need to be addressed and formulated in the method of apportionment by the use of benefit zones that reflect the extent and location of the improvements in relationship to the properties, as well as the specific use and size of each property which reflects each parcel’s need for such improvements and its reasonable cost of the proportional special benefit as compared to other properties that benefit from those same improvements.

Zones of Benefit
In an effort to ensure an appropriate allocation of the estimated annual cost to provide various improvements based on proportional special benefits, District often times include Page | 23
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benefit zones (“Zones”) as authorized pursuant to Chapter 1 Article 4, Section 22574 of the 1972 Act:
“The diagram and assessment may classify various areas within an assessment District into different zones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements. A zone shall consist of all territory which will receive substantially the same degree of benefit from the improvements.”
While the California Constitution requires that “The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement…”; it is reasonable to conclude that certain landscaping and lighting improvements may benefit most if not all properties within a District while other improvements may only provide special benefits to specific parcels, developments or portions of the District (particularly in larger District), while still other improvements may be identified and proportionately allocated as both special benefits and a general benefit. Based on a review of the location and extent of the improvements for this District and the direct proximity and relationship to the properties therein, it has been determined that each parcel within Tract 6740 will receive proportionally similar special benefits from the local street lighting and landscape improvements located on the perimeter of the development and the establishment of benefit zones is not necessary. However, because this is the City’s first development established as a 1972 Act District and it is likely that future developments in the City may facilitate a similar need, Tract 6740 has been established and referred to as Zone 1. Tract 6775 has been established and referred to as Zone 1B. Tract 6700 has been established and referred to as Zone 1C. Annexation 2016-2 has been established and referred to as Zone 2 & 3 for this District. Annexation 2019-1 has been established and referred to as Zone 4 and Annexation 2018-2 has been established and referred to as 5 for this District. While this Zone designation has no direct bearing on the calculation of proportional special benefit at this time, it does establish an initial zone structure and naming convention that may be utilized for future developments or properties that may be annexed to this District under the provisions of the 1972 Act.

Details regarding the location and extent of the improvements within the District and the Zones therein are on file in the office of the Public Works Department and by reference these documents are made part of this Report. A diagram showing the exterior boundaries of the District is attached and incorporated herein under Part IV (District Diagram) of this Report.

Equivalent Benefit Units
In addition to the use of Zones, the method of apportionment established for this District to reflect the proportional special benefit of each parcel utilizes a weighted methodology of apportionment commonly referred to as an Equivalent Benefit Unit (EBU) methodology. This method of apportionment establishes the single-family home site as the basic unit of assessment. A single-family residential unit or lot is assigned one (1.0) Equivalent Benefit Unit (EBU) and other property types (land uses) are proportionately weighted (weighted EBU) based on a benefit formula that equates each property’s specific characteristics and special benefits to that of the single-family residential unit. This proportional weighting may be based on several considerations that may include, but are not limited to: the type Page | 24
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of development (land use), development-status (developed versus undeveloped), size of the property (acreage or units), vehicular trip generation, street frontage, densities or other property related factors including any development restrictions or limitations; as well as the property’s location and proximity to the improvements (which would be addressed by its Zone designation).

For most local landscaping and lighting improvements and assessments, the most appropriate proportional special benefit calculation for each parcel is reasonably determined by three basic property characteristics:
 Proximity — As previously noted, each parcel in the District shall be identified and grouped into Zones based on each parcel’s proximity and relationship to the District improvements;
 Land use — Commercial/Industrial Use; Residential Use, Institutional Use, Vacant Land (Undeveloped Property), Public Property etc.; and,  Property Size — Acreage for non-residential properties (both developed and undeveloped); Units for residential properties. Property size (acreage or units) provides a definable and comparative representation of each parcel’s proportional special benefit not only to similar types of properties but to other properties as well.

Zones 1, 1B, 1C, 4 & 5
Zone 1, 1B and 1C are currently comprised entirely of residential parcels and developments. As previously noted, at build-out, Annexation 2019-1 (Zone 4) will be comprised of forty-five single-family residential parcels and Annexation 2018-2 (Zone 5) will be comprised of forty single-family residential parcels. The following is a list of land use classifications that may be applicable to parcels within the Zone and their assigned Equivalent Benefit Units. The single-family residential home site is used as the base value of benefit and assessment. Not all land use classifications listed are currently applicable to parcels in the Zone, but may be applicable to future parcels that are annexed to the Zone:

Land Use Classifications
Single-Family Residential Property — is defined as a fully subdivided residential home site with or without a structure. For purposes of establishing the proportional special benefits and equivalent benefit units for other land uses in this District, the single-family residential land use is designated as the basic unit of assessment.

Multi-Family Residential & Mixed-Use Property — is defined as a fully subdivided residential parcel that has more than one residential unit developed on the parcel. (This land use includes apartments, duplexes, triplexes, etc., but does not include condominiums, townhomes). This land use designation may also include properties identified by the County Assessor’s Office as mixed-use property for which there is more than one residential unit (known number of residential units) associated with the property and for which the parcel’s primary use is residential but may also include some commercial component or unit associated with that property.

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Although multi-family residential properties receive similar special benefits to that of singlefamily residential property and an appropriate and comparative calculation of proportional special benefits is reasonably reflected by the parcel’s total number of residential units, it would not be reasonable to conclude that on a per unit basis, the benefits are equal.

Studies have consistently shown that multi-family units impact public infrastructure at reduced levels compared to a single-family residence, which is reflective of their reduced structure size, vehicular trip generation and need for various public improvements.

Furthermore, as the density (number of units per parcel) increase, the average distance from the improvements tend to increase and the number of vehicular trips generated tend to decline because the population density per unit tend to decrease (largely because of reduced unit sizes). Based on these considerations, it is reasonable to conclude that the proportional special benefits per unit is less than that of a single-family residential property and appropriate weighting of the proportional special benefit per unit for multi-family residential properties as compared to a single-family residential is best represented by the following sliding scale:

Zones 1, 1B & 1C: 0.625 EBU per unit for the first 5 units; plus 0.500 EBU per unit for units 6 through 25; plus 0.375 EBU per unit for units 26 through 50; plus 0.250 EBU per unit for units 51 through 100; plus 0.125 EBU per unit for units 101 or above.

Zones 4 & 5: 0.750 EBU per unit.

Approved Residential Development – This land use is defined as a parcel and/or development (group of parcels) that are not fully subdivided, but based on an Approved Development Map, Final Tract Map or other Approved Development Plan, the specific number of single-family residential lots has been approved for development, and the improvements and services associated with the development and/or parcel have been accepted or will be accepted by the City for maintenance in the fiscal year. This land use type is assigned an EBU for both landscaping and lighting improvements that reflects the total EBU’s associated with that parcel at build-out.

Undeveloped Residential Property - is defined as a parcel that has been identified as undeveloped property (vacant land), zoned for residential use (fully subdivided or not), that has the potential to be developed (few or no development restrictions). Typically, a tentative or final map has not been submitted and/or approved for the property, but the improvements that benefit the parcel (existing improvements) have been accepted or will be accepted by the City for maintenance in the fiscal year. When considering the special benefits from landscaping and lighting improvements it becomes evident that the proportional special benefits associated with vacant property is clearly less than that of developed properties. Although vacant properties may certainly derive special benefits from local landscaping and lighting improvements, these special benefits are limited to the land (lot) itself. Conversely, approximately half of the direct and immediate special benefits for developed properties are related to the daily use or potential use of that property. Therefore, the Equivalent Benefit Units applied to these properties shall be based on 0.500 EBU per acre with a minimum Equivalent Benefit Unit of 0.125 EBU for parcels less than one-quarter of an acre and a maximum Equivalent Benefit Unit of 5.000 EBU for parcels greater than ten acres.

Planned Residential Development - This land use is defined as a parcel or group of parcels currently identified as undeveloped (vacant land), but the specific number of single- Page | 26
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family residential lots or multi-family residential units has been approved for development has part of an Approved Development Map, Final Tract Map or other Approved Development Plan. However, unlike Approved Residential Development property, the City does not anticipate acceptance of the improvements associated with this parcel or development for the upcoming fiscal year and the proportional assessments for such properties may likely be limited to incidental expenses.

For balloting purposes to establish the property’s maximum assessment and proportional special benefit, these parcels shall be assigned an EBU that reflects the total EBU’s associated with that parcel at build-out (1.0 EBU per single-family residential lot and 0.75 per multi-family residential unit). However, for calculation of the annual assessments each fiscal year, the City and Assessment Engineer shall apply an EBU that reflects the property’s estimated proportional special benefit from exiting improvements and/or portion of the new improvements to be installed and accepted during the upcoming fiscal year. The Assessment Engineer may assign to such parcels in any given fiscal year as little as 0.00 EBU up to the maximum EBU for which the property was ballot or any EBU in between that reasonably reflects the parcel’s proportional special benefit from the improvements and services provided as compared to other properties in the Zone. In addition, such parcels may be temporarily designated as a Sub-Zone within the Zone and budgeted separately until all the improvements for the development are installed and/or the property has been subdivided.

In addition to the land use classifications identified above, the following two land use classifications may also be applicable to parcels within the District and/or Zones within the Consolidated District:

Exempt Properties - Within most District, there are lots or parcels of land that do not receive a special benefit from the improvements provided (exempt from assessment), which may include, but is not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, public rights-of-way, or utility rights-of-way; common areas, bifurcated lots; sliver parcels or any other parcel that has little or no assessed value and cannot be developed independently; parcels that are part of the improvements being maintained by the District or that the City has determined that the parcel cannot be developed. These types of parcels are considered to receive no special benefit from the improvements and are therefore exempted from assessment and are assigned 0.00 EBU.

Case Properties - In District where multiple land use classifications are applied, there may be a specific property or properties where the typical land use classifications and method of apportionment do not accurately reflect the property’s proportional special benefits received from the improvements. This land use classification may be applicable when the use of that property is restricted or limited compared to other properties, cases where only a portion of the property can be developed or only a portion of the parcel will benefit from the improvements provided, and/or the timing of the City accepting the specific improvements associated with that property may be different than other properties with that development or Zone. For example, a parcel may be identified as an undeveloped property, but only a portion of the parcel can be developed or only a portion of the property is considered to benefit from the improvements. In such cases, the City and Assessment Engineer may determine that an appropriate calculation of proportional benefit is better reflected by applying a reduced weighting factor.

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Zone 2 & 3
Zone 2 and Zone 3 are currently comprised of non-residential parcels (Developed or Approved) and undeveloped parcels (undeveloped non-residential or multi-family residential properties). The following is a list of land use classifications that may be applicable to parcels within these Zones followed by the calculation of the Equivalent Benefit Units associated with those land use classifications. The base value of benefit and assessment for each parcel is based on the total Improvement Square Footage and total Benefit Front Footage of the parcels associated with those improvements. Not all land use classifications listed are currently applicable to parcels in the Zone but may be applicable to future parcels that are annexed to the Zones.

Land Use Classifications
Developed Non-Residential – This land use is defined as a parcel and/or development (group of parcels) that has been developed primarily with a non-residential use, including, but are not limited to (both publicly owned and privately owned) commercial, office or professional service, industrial, parking lot, institutional facilities, churches or other nonprofit organizations; and the parcel or development receives a particular and distinct benefit from District improvements. The EBU assigned to such parcels for both landscaping and lighting improvements is based on the parcel’s proportional benefit frontage and calculated improvement square footage of the landscape improvements associated with the property as compared to other properties that benefit from those improvements as outlined in the EBU calculations that follow.

Approved Non-Residential – This land use is defined as a parcel and/or development (group of parcels) that has an Approved Development Map, Final Tract Map or other Approved Development Plan primarily for a non-residential use, including, but are not limited to (both publicly owned and privately owned) commercial, office or professional service, industrial, parking lot, institutional facilities, churches or other non-profit organizations; and the parcel or development receives a particular and distinct benefit from District improvements. The EBU assigned to such parcels for both landscaping and lighting improvements is based on the parcel’s proportional benefit frontage and calculated improvement square footage of the landscape improvements associated with the property as compared to other properties that benefit from those improvements as outlined in the EBU calculations that follow.

Developed Multi-Family Residential – This land use is defined as a parcel and/or development (group of parcels) that has been developed as a fully subdivided residential development with multiple residential units associated with the parcel or development including, apartments, duplexes, or other parcels with multiple residential units, but not including institutional facilities or mixed-use properties which are typically identified as non-residential; and the parcel or development receives a particular and distinct benefit from District improvements. The EBU assigned to such parcels for both landscaping and lighting improvements is based on the parcel’s proportional benefit frontage and calculated improvement square footage of the landscape improvements associated with the property as compared to other properties that benefit from those improvements as outlined in the EBU calculations that follow.

Approved Multi-Family Residential – This land use is defined as a parcel and/or development (group of parcels) that has an Approved Development Map, Final Tract Map Page | 28
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or other Approved Development Plan for development as a multiple residential unit parcel or development including, apartments, duplexes, or other parcels with multiple residential units, but not including institutional facilities or mixed-use properties which are typically identified as non-residential; and the parcel or development receives a particular and distinct benefit from District improvements. The EBU assigned to such parcels for both landscaping and lighting improvements is based on the parcel’s proportional benefit frontage and calculated improvement square footage of the landscape improvements associated with the property as compared to other properties that benefit from those improvements as outlined in the EBU calculations that follow.

Developed Condominium/Townhome Property – This land use is defined as a parcel that have been developed as a fully subdivided residential condominium or townhome parcel for which the County Assessor has established an individual Assessor’s Parcel Number for each residential condominium unit and related common areas (if any); and the condominium development and condominium parcels therein receive a particular and distinct benefit from District improvements. (Such developments do not include any District improvements within the development, only improvements outside the development). The EBU assigned to each residential condominium parcel within for both landscaping and lighting improvements is based on the overall development’s proportional benefit frontage and calculated improvement square footage of the landscape improvements associated with the condominium development as compared to other properties that benefit from those improvements. The development’s calculated improvement square footage is proportionately allocated to each residential condominium parcel as described in the EBU calculations that follow.

Approved Condominium Property – This land use is defined as a parcel or group of parcels that has an Approved Development Map, Final Tract Map or other Approved Development Plan for development as a condominiums or townhomes for which the County Assessor has or will establish individual Assessor’s Parcel Numbers for each residential condominium unit and common areas (if any); and the condominium development and condominium parcels therein receive a particular and distinct benefit from District improvements. (Such developments do not include any District improvements within the development, only improvements outside the development). The EBU assigned to each parcel (fully subdivided residential condominium parcels or planned residential units on yet to be subdivided parcels) for both landscaping and lighting improvements is based on the overall development’s proportional improvement square footage of the landscape improvements associated with the condominium development as compared to other properties that benefit from those improvements. The development’s calculated benefit frontage and improvement square footage of the landscape improvements is proportionately allocated to each residential condominium parcel as described in the EBU calculations that follow.

Undeveloped Non-Residential – This land use is defined as a parcel or group of parcels that are undeveloped (vacant land), for which a specific Development Map, Tract Map or other Development Plan has not been approved, but based on Zoning and/or other documents, the City anticipates the parcel or group of parcels to be developed for a nonresidential or multi-family residential use; and the property receives a particular and distinct benefit from District improvements. The EBU assigned to such property for both landscaping and lighting improvements is based on the parcel’s proportional benefit frontage Page | 29
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and calculated improvement square footage of the landscape improvements associated with the property as compared to other properties that benefit from those improvements as outlined in the EBU calculations that follow.

Planned Non-Residential – This land use is defined as a parcel or group of parcels currently identified as undeveloped (vacant land), but the property has an Approved Development Map, Final Tract Map or other Approved Development Plan for development as a non-residential property. However, unlike an Approved NonResidential property, the City does not anticipate acceptance of all the improvements associated with this parcel or development for the upcoming fiscal year and the proportional assessments for such properties may be limited to a portion of the estimated annual maintenance costs and/or incidental expenses.

Planned Multi-Family Residential – This land use is defined as a parcel or group of parcels currently identified as undeveloped (vacant land), but the property has an Approved Development Map, Final Tract Map or other Approved Development Plan for development as a multiple residential unit parcel or development. However, unlike an Approved MultiFamily Residential or an Approved Condominium Property, the City does not anticipate acceptance of all the improvements associated with this parcel or development for the upcoming fiscal year and the proportional assessments for such properties may be limited to a portion of the estimated annual maintenance costs and/or incidental expenses. For balloting purposes to establish the property’s maximum assessment and proportional special benefit, for both Planned Non-Residential and Planned Multi-Family Residential properties, the parcels shall be assigned an EBU that reflects the property’s EBU at buildout (similar to that of a “Developed” or “Approved” property) and the City’s acceptance of all the improvements to be maintained by the District. However, for calculation of the annual assessments each fiscal year, the City and Assessment Engineer may classify such parcels as a “Special Case” and apply an EBU that reflects the property’s estimated proportional special benefit from exiting improvements and/or portion of the new improvements to be installed and accepted during the upcoming fiscal year. The Assessment Engineer may assign to such parcels in any given fiscal year, as little as 0.00 EBU up to the maximum EBU for which the property was ballot or any EBU in between, that reasonably reflects the parcel’s proportional special benefit from the improvements and services provided as compared to other properties in the Zone. In addition, such parcels may be temporarily designated as a Sub-Zone within the Zone and budgeted separately until all the improvements for the development are installed and/or the property has been subdivided.

Developed Hotel/Motel Property — Although Hotel/Motel Properties are certainly viewed as a commercial enterprise and would have similar special benefits as commercial/industrial properties for landscape improvements, these properties clearly have a more significant nighttime use and traffic generation than other commercial/industrial properties that result from their transient residential activities.

Clearly, the presence of local street lighting or the lack thereof can have a direct and significant impact on hotel and motel properties because of their heightened nighttime business activities. To reflect this increased proportional special benefit resulting from higher nighttime use and need for local street lighting as compared to other commercial/industrial properties. As with commercial/industrial properties, minimum and maximum acreage limits shall be applied in calculating each parcel’s individual Page | 30
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assessment.

Developed Institutional Property — is defined as developed private properties used for the purposes of public related services or activities, including but not limited to Colleges, Private Schools, Places of Worship, Day Care Centers, Fraternal Organizations, Hospitals, Convalescent or Retirement Homes, or other similar public service or assembly type properties.

Developed Public Property — is defined as developed public or government owned property used for public related services or activities, including but not limited to city facilities including parks, community centers, fire and police stations, and city offices; county or state offices and facilities; federal, state or county court facilities; US postal service facilities; public schools; public utility facilities or offices; or other similar developed public properties.

Parking Lot/Limited Use Property — This land use classification is applied to developed privately owned properties that the City considers not to be fully developed commercial/industrial, institutional or residential properties. This land use classification is typically applied to parcels that are identified as parking lots with limited or no buildings; but may also identify parcels that have limited or restricted non-residential use where the typical commercial/industrial or institutional classification is not applicable or appropriate. The Equivalent Benefit Units applied to these properties shall be based on the same minimum and maximum acreage limits that are applied to other acreage-based properties.

Vacant Property —is defined as property that has been identified as undeveloped but has reasonable development potential (Few or no development restrictions). When considering the special benefits from landscaping and lighting improvements it becomes evident that the proportional special benefits associated with vacant property is clearly less than that of developed properties. Although vacant properties certainly derive special benefits from local landscaping and lighting improvements, these special benefits are limited to the land (lot) itself. Conversely, approximately half of the direct and immediate special benefits for developed properties are related to the daily use or potential use of that property.

Therefore, the Equivalent Benefit Units applied to these properties shall be based on the same minimum and maximum acreage limits that are applied to other acreage-based properties.

Exempt Property (Parcel) — identifies parcels that for various reasons, it has been determined that the parcel does not and will not receive special benefits from the improvements. This land use classification may include but is not limited to:
 Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County);
 Dedicated public easements including open space areas, utility rights-of-way, greenbelts, parkways, or other publicly-owned or utility-owned land that serves the community or general public and are not considered or classified as developed public properties;
 Parcels of land that are privately owned, but cannot be developed independently from an adjacent property or is part of a shared interest with other properties, such as common areas, sliver parcels, bifurcated lots or properties with very restrictive development potential or use.

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Because these properties either provide a public service that is comparable to landscaping or street lighting improvements, or they are dependent on another property or development, these types of parcels have no direct need for such improvements and are considered to receive no special benefits Therefore these parcels shall be exempt from assessment and are assigned 0.000 EBU. However, these properties shall be reviewed annually by the assessment engineer to confirm the parcel’s use and/or development status has not changed.

Special Case Property — In many District where multiple land use classifications are involved, there may be one or more properties that the standard land use classifications do not accurately identify the use and special benefits received from the improvements or there may be something about that particular parcel that should be noted for review in subsequent fiscal years.

The Equivalent Benefit Units assigned to Special Case Properties will vary depending on the circumstances and reasons for treating each particular property as a Special Case. The Equivalent Benefit Unit(s) assigned to each such parcel may be based on adjusted acreage, units or a combination of those factors. The City and/or the assessment engineer tasked with the administration of the District shall annually review each parcel designated as a Special Case. Property and based on that review shall make appropriate adjustments to that property’s land use and Equivalent Benefit Unit assignment as warranted.

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Summary of Equivalent Benefit Unit Assignments
Zones 1, 1B, 1C, 4 & 5
The following is a summary of property types and the Equivalent Benefit Unit assignments described in the preceding discussion of Equivalent Benefit Units.

Zones 2 & 3
The above land use types are assigned an EBU that reflects each parcel’s and/or development’s proportional improvement benefit based on the square footage of the landscape areas on the street, streets, and/or street segments associated with the property and for which the property receives special benefit. Each parcel’s proportional square footage for a specific improvement or shared improvement is calculated by:

1. Establish each parcel’s “Street Frontage” associated with the improvements that benefit the parcel. For most properties this Street Frontage is the parcel’s linear street frontage on the street where the improvement(s) that benefit the property are located (Corner properties may have street frontage on more than one side, which may be calculated separately if the improvements on each street are shared with different properties).

For properties/developments comprised of multiple parcels (some parcels within a development or future development area may not have actual street frontage), the total street frontage for the overall property/development is proportionately allocated to each parcel within that development or future development area utilizing the proportional acreage of each parcel within the development. (Proportional residential units may be used for a Condominium Property/Development if the number of Units is known for each parcel).

Land Use Benefit Unit Calculations
Single-Family Residential Property 1.00 per unit
Multi-Family Residential & Mixed-Use Property
(Zones 1, 1B & 1C)

0.625 per unit per unit (1-5 units)

0.500 per unit per unit (6-25 units)

0.375 per unit per unit (26-50 units)

0.250 per unit per unit (51-100 units)

0.125 per unit per unit (units greater than 100)
Multi-Family Residential & Mixed-Use Property
(Zones 4 & 5) 0.750 per unit
Condominium/Town-home Property 0.750 per unit
Developed Commercial/Industrial Property 4.000 per acre (minimum 1.000 EBU, maximum 40.000 EBU) Developed Hotel/Motel Property 6.000 per acre (minimum 1.500 EBU, maximum 60.000 EBU) Developed Institutional Property 2.000 per acre (minimum 0.500 EBU, maximum 20.000 EBU) Developed Public Property 2.000 per acre (minimum 0.500 EBU, maximum 20.000 EBU) Parking Lot/Limited Use Property 1.000 per acre (minimum 0.250 EBU, maximum 10.000 EBU) Vacant Property 0.500 per acre (minimum 0.125 EBU, maximum 5.000 EBU) Exempt Property 0.000 per parcel
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Parcel Acreage / Development Acreage = Proportional Acreage (for each parcel)
Proportional Acreage x Development Street Frontage = Parcel’s Assigned Street Frontage

2. Calculate each parcel’s proportional “Benefit Frontage”.

For parcels identified as “Developed” or “Approved” land use classifications, the parcel’s calculated Street Frontage is applied as the parcel’s “Benefit Frontage”.

Assigned Street Frontage = Benefit Frontage
For parcels/properties identified as “Undeveloped” (Vacant Land) and “Planned” parcels/properties (those that are still Vacant Land), it is recognized that the proportional special benefits associated with such property is typically less than that of developed properties because the property is undeveloped. In addition to the special benefits associated with each property because of proximity to the improvements, developed properties (both “Developed” or “Approved”) also receive the added and immediate benefits associated with the daily utilization of the improvements afforded to the employees, residents, visitors, and patrons of those properties. Therefore, “Undeveloped” properties and “Planned” development properties (those not being treated as a Special Case) are assigned a “Benefit Frontage” that is ½ (50%) of the parcel’s calculated Street Frontage.

Assigned Street Frontage x 50% = Benefit Frontage

3. Establish the average square feet of improvement area for each linear foot of Benefit Frontage. The overall “Improvement Square Feet” (applicable improvement area square footage) of the improvement area that benefits the parcels in the Zone is divided by the sum total of the Benefit Frontage of all the parcels that benefit from the improvements (“Total Benefit Frontage) to establish a ratio of “Improvement Square Feet per Benefit Front Foot”.

Improvement Square Feet / Total Benefit Frontage = Improvement Square Feet per Front Foot

4. This ratio of Improvement Square Feet to Benefit Frontage (“Improvement Square Feet per Benefit Front Foot”) is then multiplied by each parcel’s calculated “Benefit Frontage” to establish the parcels proportional EBU or Proportional Improvement Square Footage.

Improvement Square Feet per Benefit Front Foot x Parcel’s Benefit Frontage = Parcel’s EBU
Allocation of Improvement Costs Zone 1
Pursuant to the provisions of the California Constitution, the proportionate special benefit derived by each parcel within the District and its corresponding assessment obligation shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement.

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The benefit formula applied to parcels within this District is based on the preceding EBU discussion and table. Each parcel's EBU correlates the parcel’s special benefit received as compared to the other parcels benefiting from the District improvements.

The following formula is used to calculate each parcel’s proportional benefit:

Property Type EBU x (Acreage/Units/Parcel/Lot) = Parcel EBU An assessment amount per EBU (“Rate”) for the District improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBUs for parcels benefiting from such improvements.

Total Balance to Levy / Total EBUs = Levy per EBU (“Rate”) This amount is then applied back to each parcel’s individual EBU to determine each parcel’s proportionate benefit and assessment obligation.

Rate x Parcel EBU = Parcel Levy Amount
Allocation of Improvement Costs Zone 2, 3, 4 & 5
Calculation of Assessments
An assessment amount per Equivalent Benefit Unit (Assessment per EBU) is calculated by:

Taking the “Total Annual Expenses” (Total budgeted costs) and subtracting the “Total General Benefit Expenses” (Landscaping General Benefit Expenses and/or Lighting General Benefit Expenses), to establish the “Total Special Benefit Expenses”; Total Annual Expenses– General Benefit Expenses = Special Benefit Expenses To the resulting “Special Benefit Expenses”, various “Funding Adjustments” may be applied that may include, but are not limited to:
 “Unfunded Reserve Fund Collection”, represents an adjustment (reduction) in the amount to be collected for “Operational Reserve Funding” that was budgeted as part of the Total Annual Expenses.
 “Unfunded CIP/Rehabilitation Funding Collection”, represents an adjustment (reduction) in the amount to be collected for “CIP & Rehabilitation Reserve Fund Collection” that was budgeted as part of the Total Annual Expenses.  “Reserve Fund Transfer/Deduction”, represents an amount of available existing funds from the “Operational Reserve Fund Balances” being applied to pay a portion of the Special Benefit Expenses for the fiscal year.
 “Additional City Contribution and/or Service Reductions”, represents a further adjustment that addresses the funding gap between the amount budgeted to provide the improvements and services (“Special Benefit Expenses”); and the amount that will be collected through the assessments. This funding gap may be addressed by an additional City contribution, reductions in service and service expenses, or a combination of the two.
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amount to be collected as “Special Benefit Expenses” for the fiscal year, which is usually the result of an advance payment by a developer or property owner for maintenance or energy costs that may have been required by the City or a utility provider prior to the installation and acceptance of the improvements.

These adjustments to the Special Benefit Expenses result in the net special benefit amount to be assessed “Balance to Levy”;
Special Benefit Expenses - Funding Adjustments = Balance to Levy The amount identified as the “Balance to Levy” is divided by the total number of EBUs of parcels that receive special benefit to establish the Assessment Rate (“Assessment Per EBU”). This Assessment Rate is then applied back to each parcel’s individual EBU to calculate the parcel’s proportionate special benefit and assessment amount for the improvements.

Balance to Levy / Total EBU = Assessment Per EBU (Assessment Rate) Assessment Per EBU x Parcel EBU = Parcel Assessment Amount Note: The maximum assessments outlined in this Report are intended to fully support the expenses identified as “Special Benefit Expenses”. Consequently, there are no “Funding Adjustments” reflected in the budgets establishing the maximum assessment rates and the “Balance to Levy” is equal to the total “Special Benefit Expenses”.

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Assessment Range Formula
Any new or increased assessment requires certain noticing and meeting requirements by law. The Brown Act defines the terms "new or increased assessment" to exclude certain conditions. These certain conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." Recognizing that the cost of maintaining the improvements will likely increase over time due to inflation, the assessments (initial maximum assessment rate established for Zone 1 in fiscal year 2012/2013, for Zone 1B & 1C in fiscal year 2016/2017, for Zones 2 & 3 in fiscal year 2018/2019, for Zone 4 in fiscal year 2019/2020 and Zone 5 in fiscal year 2017/2018) established a fixed 3.5% annual inflationary adjustment (Assessment Range Formula). This 3.5% annual adjustment provides for reasonable increases and inflationary adjustment to the initial maximum assessment rate approved by the property owners as part of the protest ballot proceeding conducted in connection with the formation of this District.

The adoption of the maximum assessment rate and the Assessment Range Formula described herein does not mean that the annual assessments will necessarily increase each year, nor does it absolutely restrict the assessments to the adjustment amount.

Although the maximum assessment amount that may be levied shall be adjusted (inflated) by 3.5% each year, the actual amount to be assessed will be based on the District’ estimated costs (budget) for that year.

If the calculated assessment is less than the adjusted maximum assessment, then the calculated assessment may be approved by the City Council for collection. If the calculated assessment (based on the budget) is greater than the adjusted maximum assessment for that fiscal year, then the assessment is considered an increased assessment and would require a property owner approval through a protest ballot proceeding before imposing such an increase. Otherwise, it would be necessary to reduce the budget or provide a contribution from the City to reduce the amount to be levied to an amount that can be supported by an assessment rate less than or equal to the maximum assessment rate authorized for that fiscal year.

The Assessment Range Formula (3.5% annual adjustment) has been applied to the authorized maximum assessment rate identified in the District’ Budget for fiscal year 2020/2021 and shall be applied in all subsequent fiscal years unless the City Council formally suspends its application.

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The following table summarizes historical maximum and applied assessment rates for each zone:

FISCAL YEAR MAXIMUM
ASSESSMENT (per EBU)

APPLIED
ASSESSMENT (per EBU)
ZONE 1
2012/2013 (Base Year) $265.000 $0.00
2013/2014 $274.280 $157.28
2014/2015 $283.880 $157.28
2015/2016 $293.810 $293.80
2016/2017 $304.090 $304.08
2017/2018 $314.740 $314.73
2018/2019 $325.750 $324.74
2019/2020 $337.150 $335.51
2020/2021 $348.954 $348.95
2021/2022 $361.168 $361.16
2022/2023 $373.809 $373.80
Zone 1B
2016/2017 (Base Year) $304.090 $181.35
2017/2018 $314.740 $175.29
2018/2019 $325.750 $148.48
2019/2020 $337.150 $154.93
2020/2021 $348.954 $178.32
2021/2022 $361.168 $177.20
2022/2023 $373.809
Zone 1C
2016/2017 (Base Year) $304.090 $181.35
2017/2018 $314.740 $89.06
2018/2019 $325.750 $93.13
2019/2020 $337.150 $95.92
2020/2021 $348.954 $94.35
2021/2022 $361.168 $94.35
2022/2023 $373.809 $94.35
Zone 2
2017/2018 (Base Year) $1.170 $1.16
2018/2019 $1.211 $1.19
2019/2020 $1.253 $1.23
2020/2021 $1.297 $1.29
2021/2022 $1.343 $1.34
2022/2023 $1.387 $1.38
Zone 3
2017/2018 (Base Year) $0.910 $0.90
2018/2019 $0.942 $0.90
2019/2020 $0.975 $0.93
2020/2021 $1.009 $1.00
2021/2022 $1.044 $1.04
2022/2023 $1.080 $1.08
Zone 4
2019/2020 (Base Year) $152.000 $151.00
2020/2021 $157.320 $157.32
2021/2022 $162.826 $156.90
2022/2023 $168.524 $165.29
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Zone 5
2019/2020 (Base Year) $149.000 $154.21
2020/2021 $154.215 $154.21
2021/2022 $159.613 $158.99
2022/2023 $165.199 $163.46
Part III — District Budgets
The following budget outlines the estimated costs to maintain the improvements and the applicable assessment rates for Fiscal Year 2022/2023.

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Proposed Proposed Proposed Proposed Proposed Proposed Proposed Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022/2023 2022/2023 2022/2023 2022/2023 2022/2023 2022/2023 2022/2023 Zone 1 Zone 1B Zone 1C Zone 2 Zone 3 Zone 4 Zone 5
TRACT 6740 TRACT 6775 TRACT 6700 Walmart Around Walmart TRACT 6908 TRACT 7188 12,155 SF 5,450 SF 0 SF 31,563 SF 22,981 SF 6365 SF 8,133 SF

ANNUAL OPERATION & MAINTENANCE (DIRECT COSTS)
Annual Maintenance Direct Costs ( LANDSCAPE Total) $15,431.72 $4,320.80 $0.00 15,923.91 $8,957.17 $800.00 $800.00 $46,233.60 Sidewalk Maintenance (Remove and replace rehab/rep.) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Masonry Wall Maintenance (Decorative Cap repair $250 total) $165.00 $85.00 $0.00 $0.00 $0.00 $0.00 $0.00 $250.00 Graffiti/Nuisance Abatement $200.00 $100.00 $0.00 $0.00 $0.00 $175.00 $140.00 $615.00 Weed Abetment (Spray for DG only) $0.00 $0.00 $0.00 $0.00 $0.00 $1,500.00 $1,500.00 $3,000.00 Total Annual Maintenance $15,796.72 $4,505.80 $0.00 $15,923.91 $8,957.17 $2,475.00 $2,440.00 $50,098.60 Landscape Water (with Ground Water Fees) $1,875.00 $625.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,500.00 Landscape Electricity 135.00 45.00 0.00 0.00 0.00 0.00 0.00 180.00 Total Annual Landscape Utilities (Water & Electricity) $2,010.00 $670.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,680.00 Street Light Count 23.5 2.5 0 16 11 11 12 76 Street Lighting Operations, Maintenance and Power $6,598.80 $702.00 $0.00 $3,135.36 $2,155.56 $2,155.56 $2,351.52 $17,098.80 Traffic Signal Operation, Maintenance (Monthly) 0.00 0.00 0.00 3,096.00 1,032.00 0.00 0.00 $4,128.00 Traffic Signal Repair 0.00 0.00 0.00 1,425.00 475.00 0.00 0.00 $1,900.00 Traffic Signal Power 0.00 0.00 0.00 540.00 180.00 0.00 0.00 $720.00 Total Annual Lighting (Maintenance & Energy) $6,598.80 $702.00 $0.00 $8,197.86 $3,843.06 $2,155.56 $2,351.52 $23,848.80 Annual Maintenance Direct Costs (Total) $24,405.52 $5,877.80 $0.00 $24,121.77 $12,800.23 $4,630.56 $4,791.52 $76,627.40

ANNUAL REHABILITATION/REPLACEMENT COLLECTION
Parkway Rehabilitation/Replacements (In ROW) $100.00 $25.00 $0.00 $0.00 $0.00 $200.00 $150.00 $475.00 Slope Rehabilitation/Replacements (Easement) 50.00 20.00 0.00 0.00 0.00 0.00 0.00 70.00 Landscaping Rehabilitation/Renovation Funding 125.00 25.00 0.00 750.00 550.00 0.00 0.00 1,450.00 Tree Rehabilitation/Replacements 200.00 75.00 0.00 600.00 450.00 0.00 0.00 1,325.00 Irrigation Rehabilitation/Renovation Funding 50.00 25.00 0.00 300.00 300.00 0.00 0.00 675.00 Sidewalk Rehabilitation/Replacements 50.00 25.00 0.00 0.00 0.00 75.00 75.00 225.00 Masonry Wall Rehabilitation/Replacements 300.00 100.00 0.00 0.00 0.00 0.00 0.00 400.00 Traffic Signal Rehabilitation/Renovation Funding 0.00 0.00 0.00 250.00 50.00 0.00 0.00 300.00 Annual Rehabilitation/Replacement Funding $875.00 $295.00 $0.00 $1,900.00 $1,350.00 $275.00 $225.00 $4,920.00 Total Annual Maintenance Funding $25,280.52 $6,172.80 $0.00 $26,021.77 $14,150.23 $4,905.56 $5,016.52 $81,547.40

INCIDENTAL & OTHER ANNUAL FUNDING EXPENSES
CIP Fund collection/(Contribution) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 City Administration 3,468.44 989.33 0.00 3,496.36 1,966.70 543.43 535.74 11,000.00 Consulting Fees - - - - - - - -
Sub Total $3,468.44 $989.33 $0.00 $3,496.36 $1,966.70 $543.43 $535.74 $11,000.00 County Administration Fees $0.00 $0.00 $0.00 $0.00 $0.00 0.00 0.00 0.00 County Administration Fees $16.08 $4.08 $0.24 $0.48 $1.68 $10.80 $9.60 $42.96 Total Annual Incidental Funding Expenses $3,484.52 $993.41 $0.24 $3,496.84 $1,968.38 $554.23 $545.34 $11,042.96 Total Annual Expenses $28,765.04 $7,166.21 $0.24 $29,518.61 $16,118.61 $5,459.79 $5,561.86 $92,590.36

CONTRIBUTIONS/FUNDING ADJUSTMENTS
General Benefit Contribution ($20.10) ($6.70) $0.00 $0.00 $0.00 ($21.56) ($23.52) ($71.87) General Fund Contribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 City Contribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Contributions ($20.10) ($6.70) $0.00 $0.00 $0.00 ($21.56) ($23.52) ($71.87) Balance to Levy (O&M, Rehab & Incidentals) $28,744.94 $7,159.51 $0.24 $29,518.61 $16,118.61 $5,438.23 $5,538.35 $92,518.49 Balance Available to Collect (O&M, Rehab & Incidentals) $25,044.60 $17,195.21 $2,500.28 $32,114.67 $7,557.08 $7,438.05 $6,538.40 Reserve Fund Collection/(Contribution) ($3,700.34) $1,500.00 $2,500.00 $2,700.00 ($8,561.52) $2,000.00 $1,000.00 ($2,561.87) Total Balance to Levy $25,044.60 $8,659.51 $2,500.28 $32,114.67 $7,557.08 $7,438.05 $6,538.40 $89,852.58 Balance Available to Collect
TOTAL $25,044.60 $8,659.51 $2,500.24 $32,218.61 $7,557.08 $7,438.23 $6,538.35 DISTRICT STATISTICS 1.00 Total Parcels 67.00 17.00 1.00 2.00 9.00 45.00 40.00 181.00 Parcels Levied 67.00 17.00 1.00 2.00 7.00 45.00 40.00 179.00 Total Benefit Units 67.00 46.00 26.50 23,271.50 6,997.30 45.00 40.00 30,493.30 Levy per EBU (Required) $373.80 $188.25 $94.35 $1.27 $2.30 $120.85 $138.46 Levy per EBU (Applied) $373.80 $188.25 $94.35 $1.38 $1.08 $165.29 $163.46 Maximum Assessment Rate per EBU $373.809 $373.809 $373.809 $1.390 $1.081 $168.525 $165.199 Change in Assessment Rate from Prior Year 3.50% 6.24% 0.00% 3.32% 3.85% 5.35% 2.81% Prior Year Levy per EBU (Applied) $361.16 $177.20 $94.35 $1.34 $1.04 $156.90 $158.99 Prior Year Maximum Assessment Rate per EBU $361.168 $361.168 $361.168 $1.343 $1.044 $162.826 $159.613 Change in Maximum Rate from Prior Year 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%

RESERVE FUND
Estimated Beginning Reserve Balance - June 30, 2021 $30,928.71 $6,387.00 $3,469.00 $23,372.00 $3,005.00 $1,253.00 $700.62 $69,115.33 Reserve Fund Collection/(Contribution) (3,700.34) 1,500.00 2,500.00 2,700.00 (8,561.52) 2,000.00 1,000.00 (2,561.87) Transfer to CIP Fund 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Estimated Ending Reserve Balance - June 30, 2022 $27,228.37 $7,887.00 $5,969.00 $26,072.00 ($5,556.52) $3,253.00 $1,700.62 $66,553.46 CIP FUND (not utilized all in reserves)
Estimated Beginning CIP Balance - June 30, 2020 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Transfer from Reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CIP Fund Collection/(Contribution) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Estimated Ending CIP Balance - June 30, 2021 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total
District
Budget

BUDGET ITEMS
20222023
City of Ridgecrest
Consolidated Engineer’s Report
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Part IV — District Diagrams
The following District Diagram identifies the area of land within the District to be designated as “Consolidated Landscaping and Lighting District No. 2012-1 (Tract Nos. 6740, 6775, 6700, 6908, 7188 and Zone 2 and 3)”’ based on the development and improvement plans for the District, Kern County Assessor’s Maps, and Kern County Assessor’s property information as they existed at the time of preparation of this Report. The District includes Kern County Assessor’s Parcels 510-010-17, 510-010-24; Map Book 510: Page 211, Parcel 1 through 16; Map Book 510: Page 212, Parcel 1 through 22; Page 213, Parcel 1 through 17;

Parcels 01, 02, 03, 06, 07, 08, 34 and 35; Map Book 509: Page 020; Parcel 21, 22 and 46; Map Book 456: Page 351; Parcel 1 through 7, Page 352; Parcel 1 through 10, Page 361; Parcel 1 through 11, Page 362; Parcel 1 through 17; Map Book 453: Page 281; Parcel 1 through 8; Page 282; Parcel 1 through 5; Page 291; Parcel 1 through 3; Page 292; Parcel 1 through 5; Page 293; Parcel 1 through 5; Page 301; Parcel 1 through 9 and Page 302; Parcel 1 through 5.

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Image taken from establishing Engineer’s report; courtesy of Willdan Financial Page | 42
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510-010-24
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Image taken from establishing Engineer’s report; courtesy of Willdan Financial with City Staff notations.

Traffic Signal
$100 max. $100 max. $100 max. $100 max.
$0.00 $0.00
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Wrong Location
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Not a part of District
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Part V — Assessment Roll
Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Kern County Assessor's map for the year in which this Report is prepared.

Non-assessable lots or parcels may include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights-of-ways including public greenbelts and parkways; utility rights-of-ways; common areas; landlocked parcels, small parcels vacated by the County, bifurcated lots, and any other property that cannot be developed. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment. Properties outside the District’ boundary receive no direct or special benefits from the improvements provided by the District and are not assessed.

Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Kern County Assessor's map for the year in which this Report is prepared. The land use classification for each parcel is based on the Kern County Assessor’s Roll. A listing of parcels assessed within the District, along with the proposed assessment amounts, shall be submitted to the City Clerk, under a separate cover, and by reference is made part of this Report.

Approval of this Report (as submitted or as modified) confirms the method of apportionment and the maximum assessment rate to be levied against each eligible parcel and thereby constitutes the approved levy and collection of assessments for the fiscal year. The parcels and the amount of assessment to be levied shall be submitted to the County Auditor/Controller and included on the property tax roll for the fiscal year.

If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate approved in this Report. Therefore, if a single parcel has changed to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.

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City of Ridgecrest
Landscape and Lighting District No. 2012-1
Fiscal Year 2022/2023 Preliminary Assessment Roll
(Sorted by Zone)

FUND APN SITUS ADDRESS ZONE BENEFIT

UNITS CHARGE MAXIMUMASSESSMENT
20458 510-211-01-00-9 101 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-211-02-00-2 105 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-211-03-00-5 109 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-211-04-00-8 113 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-211-05-00-1 117 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-211-06-00-4 121 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-211-07-00-7 125 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-211-08-00-0 129 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-211-09-00-3 128 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-211-10-00-5 124 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-211-11-00-8 120 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-211-12-00-1 116 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-211-13-00-4 112 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-211-14-00-7 108 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-211-15-00-0 104 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-211-16-00-3 100 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-212-01-00-6 101 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-212-02-00-9 105 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-212-03-00-2 109 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-212-04-00-5 113 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-212-05-00-8 117 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-212-06-00-1 121 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-212-07-00-4 125 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-212-08-00-7 129 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-212-09-00-0 124 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-10-00-2 120 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-11-00-5 116 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-12-00-8 112 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-13-00-1 108 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-14-00-4 104 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-15-00-7 100 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-16-00-0 101 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-17-00-3 105 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-18-00-6 109 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-19-00-9 113 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-20-00-1 117 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-21-00-4 121 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-212-22-00-7 125 Majestic Sky Ct. Original Zone 1.00 $373.80 $373.80 20458 510-213-01-00-0 201 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-213-02-00-6 205 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-213-03-00-9 209 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-213-04-00-2 213 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-213-05-00-5 217 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-213-06-00-8 221 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-213-07-00-1 225 Rainshadow Ct. Original Zone 1.00 $373.80 $373.80 20458 510-213-08-00-4 2000 Del Rosa St. Original Zone 1.00 $373.80 $373.80 Page | 48
2022/2023 City of Ridgecrest
Consolidated Engineer’s Report

FUND APN SITUS ADDRESS ZONE BENEFIT

UNITS CHARGE MAXIMUMASSESSMENT
20458 510-213-09-00-7 2004 Del Rosa St. Original Zone 1.00 $373.80 $373.80 20458 510-213-10-00-9 2008 Del Rosa St. Original Zone 1.00 $373.80 $373.80 20458 510-213-11-00-2 2012 Del Rosa St. Original Zone 1.00 $373.80 $373.80 20458 510-213-12-00-5 2016 Del Rosa St. Original Zone 1.00 $373.80 $373.80 20458 510-213-13-00-8 216 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-213-14-00-1 212 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-213-15-00-4 208 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-213-16-00-7 204 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-213-17-00-0 200 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-214-01-00-0 201 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-214-02-00-3 205 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-214-03-00-6 209 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-214-04-00-9 213 Salt River Dr. Original Zone 1.00 $373.80 $373.80 20458 510-214-05-00-2 2024 Del Rosa St. Original Zone 1.00 $373.80 $373.80 20458 510-214-06-00-5 2028 Del Rosa St. Original Zone 1.00 $373.80 $373.80 20458 510-214-07-00-8 2032 Del Rosa St. Original Zone 1.00 $373.80 $373.80 20458 510-214-08-00-1 2036 Del Rosa St. Original Zone 1.00 $373.80 $373.80 20458 510-214-09-00-4 2037 Wild Thorn Dr. Original Zone 1.00 $373.80 $373.80 20458 510-214-10-00-6 2031 Wild Thorn Dr. Original Zone 1.00 $373.80 $373.80 20458 510-214-11-00-9 2025 Wild Thorn Dr. Original Zone 1.00 $373.80 $373.80 20458 510-214-12-00-2 2019 Wild Thorn Dr. Original Zone 1.00 $373.80 $373.80 20465 510-010-24-00-1 No Situs Available 01B 30.00 $5,647.50 $11,214.00 20465 510-220-01-00-5 100 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-02-00-8 104 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-03-00-1 108 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-04-00-4 112 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-05-00-7 116 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-06-00-0 120 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-07-00-3 124 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-08-00-6 128 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-09-00-9 132 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-10-00-1 136 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-11-00-4 140 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-12-00-7 144 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-13-00-0 148 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-14-00-3 152 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-15-00-6 156 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20465 510-220-16-00-9 160 Rainshadow Ct. 01B 1.00 $188.25 $373.80 20467 510-010-17-00-1 No Situs Available 01C 26.50 $2,500.27 $9,905.70 20468 343-351-34-00-8 Bowman Rd 2 13,117.41 $18,102.02 $18,233.19 20468 343-351-35-00-1 Bowman Rd 2 10,154.09 $14,012.64 $14,114.18 20470 343-351-01-00-2
(Council Capped) No Situs Available 3 107.53 $116.13 $116.24 20470 343-351-02-00-5
(Council Capped) No Situs Available 3 107.53 $116.13 $116.24 20470 343-351-03-00-8 No Situs Available 3 0.00 $0.00 $0.00 20470 343-351-06-00-7
(Council Capped) No Situs Available 3 107.53 $116.13 $116.24 20470 343-351-07-00-0
(Council Capped) No Situs Available 3 107.53 $116.13 $116.24 20470 343-351-08-00-3 No Situs Available 3 0.00 $0.00 $0.00 Page | 49
2022/2023 City of Ridgecrest
Consolidated Engineer’s Report

FUND APN SITUS ADDRESS ZONE BENEFIT

UNITS CHARGE MAXIMUMASSESSMENT
20470 509-020-21-00-5 901 S. China Lake Blvd. 3 1687.86 $1,822.88 $1,824.57 20470 509-020-22-00-8 911 S. China Lake Blvd. 3 4724.78 $5,102.76 $5,107.48 20470 509-020-46-00-8 No Situs Available 3 154.54 $166.90 $167.05 20471 456-351-01-00-5 1041 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-351-02-00-8 1037 Ocean Ave 4 1.00 $165.29 $168.52 20471 456-351-03-00-1 1033 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-351-04-00-4 1029 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-351-05-00-7 1025 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-351-06-00-0 1021 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-351-07-00-3 1017 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-352-01-00-2 850 Harriet St. 4 1.00 $165.29 $168.52 20471 456-352-02-00-5 846 Harriet St. 4 1.00 $165.29 $168.52 20471 456-352-03-00-8 1010 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-352-04-00-1 1014 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-352-05-00-4 1018 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-352-06-00-7 1022 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-352-07-00-0 1026 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-352-08-00-3 1030 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-352-09-00-6 1034 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-352-10-00-8 1038 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-361-01-00-8 801 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-361-02-00-1 805 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-361-03-00-4 809 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-361-04-00-7 813 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-361-05-00-0 817 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-361-06-00-3 821 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-361-07-00-6 825 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-361-08-00-9 1057 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-361-09-00-2 1053 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-361-10-00-4 1049 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-361-11-00-7 1045 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-362-01-00-5 1042 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-362-02-00-8 1046 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-362-03-00-1 1050 Ocean Ave. 4 1.00 $165.29 $168.52 20471 456-362-04-00-4 816 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-362-05-00-7 812 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-362-06-00-0 808 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-362-07-00-3 804 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-362-08-00-6 800 Paradise Dr. 4 1.00 $165.29 $168.52 20471 456-362-09-00-9 801 Beach Ct. 4 1.00 $165.29 $168.52 20471 456-362-10-00-1 807 Beach Ct. 4 1.00 $165.29 $168.52 20471 456-362-11-00-4 813 Beach Ct. 4 1.00 $165.29 $168.52 20471 456-362-12-00-7 819 Beach Ct. 4 1.00 $165.29 $168.52 20471 456-362-13-00-0 821 Beach Ct. 4 1.00 $165.29 $168.52 20471 456-362-14-00-3 818 Beach Ct. 4 1.00 $165.29 $168.52 20471 456-362-15-00-6 812 Beach Ct. 4 1.00 $165.29 $168.52 20471 456-362-16-00-9 806 Beach Ct. 4 1.00 $165.29 $168.52 20471 456-362-17-00-2 800 Beach Ct. 4 1.00 $165.29 $168.52 20472 453-281-01-00-4 1235 San Michele Pl. 5 1.00 $163.46 $165.19 20472 453-281-02-00-7 1241 San Michele Pl. 5 1.00 $163.46 $165.19 20472 453-281-03-00-0 1130 Marabella Dr. 5 1.00 $163.46 $165.19 Page | 50
2022/2023 City of Ridgecrest
Consolidated Engineer’s Report

FUND APN SITUS ADDRESS ZONE BENEFIT

UNITS CHARGE MAXIMUMASSESSMENT
20472 453-281-04-00-3 1124 Marabella Dr. 5 1.00 $163.46 $165.19 20472 453-281-05-00-6 1118 Marabella Dr. 5 1.00 $163.46 $165.19 20472 453-281-06-00-9 1112 Marabella Dr. 5 1.00 $163.46 $165.19 20472 453-281-07-00-2 1106 Marabella Dr. 5 1.00 $163.46 $165.19 20472 453-281-08-00-5 1100 Marabella Dr. 5 1.00 $163.46 $165.19 20472 453-282-01-00-1 1125 Marabella Dr. 5 1.00 $163.46 $165.19 20472 453-282-02-00-4 1119 Marabella Dr. 5 1.00 $163.46 $165.19 20472 453-282-03-00-7 1113 Marabella Dr. 5 1.00 $163.46 $165.19 20472 453-282-04-00-0 1107 Marabella Dr. 5 1.00 $163.46 $165.19 20472 453-282-05-00-3 1101 Marabella Dr. 5 1.00 $163.46 $165.19 20472 453-291-01-00-7 1219 San Michele Pl. 5 1.00 $163.46 $165.19 20472 453-291-02-00-0 1225 San Michele Pl. 5 1.00 $163.46 $165.19 20472 453-291-03-00-3 1229 San Michele Pl. 5 1.00 $163.46 $165.19 20472 453-292-01-00-4 1124 Terra Bella Pl. 5 1.00 $163.46 $165.19 20472 453-292-02-00-7 1118 Terra Bella Pl. 5 1.00 $163.46 $165.19 20472 453-292-03-00-0 1112 Terra Bella Pl. 5 1.00 $163.46 $165.19 20472 453-292-04-00-3 1106 Terra Bella Pl. 5 1.00 $163.46 $165.19 20472 453-292-05-00-6 1100 Terra Bella Pl. 5 1.00 $163.46 $165.19 20472 453-293-01-00-1 1125 Terra Bella Pl. 5 1.00 $163.46 $165.19 20472 453-293-02-00-4 1119 Terra Bella Pl. 5 1.00 $163.46 $165.19 20472 453-293-03-00-7 1113 Terra Bella Pl. 5 1.00 $163.46 $165.19 20472 453-293-04-00-0 1107 Terra Bella Pl. 5 1.00 $163.46 $165.19 20472 453-293-05-00-3 1101 Terra Bella Pl. 5 1.00 $163.46 $165.19 20472 453-301-01-00-9 1213 San Michele Pl. 5 1.00 $163.46 $165.19 20472 453-301-02-00-2 1207 San Michelle Pl. 5 1.00 $163.46 $165.19 20472 453-301-03-00-5 1201 San Michele Pl. 5 1.00 $163.46 $165.19 20472 453-301-04-00-8 1129 Via Flore Wy. 5 1.00 $163.46 $165.19 20472 453-301-05-00-1 1125 Via Flore Wy. 5 1.00 $163.46 $165.19 20472 453-301-06-00-4 1119 Via Flore Wy. 5 1.00 $163.46 $165.19 20472 453-301-07-00-7 1113 Via Flore Wy. 5 1.00 $163.46 $165.19 20472 453-301-08-00-0 1107 Via Flore Wy. 5 1.00 $163.46 $165.19 20472 453-301-09-00-3 1101 Via Flore Wy. 5 1.00 $163.46 $165.19 20472 453-302-01-00-6 1124 Via Flore Wy. 5 1.00 $163.46 $165.19 20472 453-302-02-00-9 1118 Via Flore Wy. 5 1.00 $163.46 $165.19 20472 453-302-03-00-2 1112 Via Flore Wy. 5 1.00 $163.46 $165.19 20472 453-302-04-00-5 1106 Via Flore Wy. 5 1.00 $163.46 $165.19 20472 453-302-05-00-8 1100 Via Flore Wy. 5 1.00 $163.46 $165.19 Totals 30493.30 $ 89,852.54 $ 106,247.53
Parcel Count Total 181
Parcel Count Levied 179
Page | 51
2022/2023 City of Ridgecrest
Consolidated Engineer’s Report
Reserve Fund Contributions:

Zone Reserve Contribution Reserve Fund Est. Balance General Fund Contribution 1A $3,700.34 $27,228.37 $0.00
1B $0.00 7,887.00 $0.00
1C $0.00 $5,969.00 $0.00
2 $0.00 $26,072.00 $0.00
3 $3,005.00 ($5,934.50) $5,934.50
4 $0.00 $3,253.00 $0.00
5 $0.00 $1,700.62 $0.00
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: A Resolution Regarding The Annual Assessments For The Drainage Benefit Assessment District No. 2016-1 (The “District”); And Adoption Of Resolutions (1) Approving The Annual Engineer’s Report And (2) Ordering The Levy And Collection Of Assessments For Fiscal Year 2021/2022
PRESENTED BY: Travis Reed, Director of Public Works
SUMMARY:

At the June 1
st
, 2022 City Council Meeting, the City Council adopted a resolution initiating the annual proceedings and directing staff to prepare the Annual Engineer’s Levy Report.

At the June 15th, 2022 City Council Meeting the City Council adopted a resolution and held a public hearing to discuss and revise, if necessary, the annual Engineers Report. Said Resolution declared the intention of the Council to levy the annual assessments and conduct a public hearing for all interested parties.

The formation of Drainage Benefit Assessment District No. 2016-1 was established in 2016 pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703. The City of Ridgecrest is perpetuating the District to continue a dedicated revenue source to fund the expenses related to the special benefit to properties in the District to pay for the ongoing maintenance, operation and servicing of the local drainage improvements established in connection with development of the properties within the residential subdivisions known as a portion of Tract No. 6740, all of Tentative Tract No. 6700 and all of Tentative Tract No. 6775 which are generally located on the west side of College Heights Boulevard, just North of Kendall Avenue and South of Springer Ave. The District includes a portion of Tract 6740 with fifty-three (53), TTM 6775 with seventysix (76) and TTM 6700 with fifty-three (53) single-family residential properties, associated public drainage easements drainage basin as identified on the approved tract maps for Tract No. 6740, TTM 6700 and TTM 6775.

Tonight, staff recommends that the City Council approve the resolutions approving the Annual Engineers Report and Order the levy and collection of assessments on the County tax rolls for fiscal year 2022/2023 as described in the report.

The deadline for submission to the County Tax rolls is July 8 th
, 2022
FISCAL IMPACT: The total annual levy for maintenance costs to the District is $4,030.00.

Annual maintenance costs are funded through the assessments placed on the property tax bills.

ACTION REQUESTED: Adopt the resolution approving the Engineer’s Report and ordering the levy of assessments for fiscal year 2022/2023.

CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION: Action as requested Submitted by: Travis Reed Action Date: July 6, 2022
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIDGECREST APPROVING THE ANNUAL ENGINEER’S REPORT AND ORDERING THE

LEVY AND COLLECTION OF ASSESSMENTS WITHIN THE CITY OF
RIDGECREST DRAINAGE BENEFIT ASSESSMENT DISTRICT NO. 2016-1, FOR FISCAL YEAR 2022/2023, PURSUANT TO THE PROVISIONS OF THE BENEFIT ASSESSMENT ACT OF 1982
WHEREAS, The City Council of the City of Ridgecrest (hereafter referred to as the “City Council”) has, by previous Resolutions declared its intention to levy assessments for the City of Ridgecrest Drainage Benefit Assessment District No. 2016-1 (hereinafter referred to as the “District”); and,
WHEREAS, Staff as directed by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer’s Annual Levy Report (hereafter referred to as the “Engineer’s Report”) that describes the assessments against the parcels of land within the Assessment District for the fiscal year commencing July 1, 2022 and ending June 30, 2023 to pay for the maintenance, operation and servicing of improvements and facilities related thereto; and,
WHEREAS, the City Council has carefully examined and reviewed the Engineer’s Report as previously presented, and is satisfied with the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said the Engineer’s Report; and, WHEREAS, The City Council and its legal counsel have reviewed Proposition 218 and found that these assessments comply with applicable provisions of Article XIIID of the California State Constitution; and,
WHEREAS, The City Council desires to levy and collect assessments against parcels of land within Assessment District for the Fiscal Year commencing July 1, 2022 and ending June 30, 2023, to pay the costs and expenses of operating, maintaining and servicing the improvements and appurtenant facilities located within the District.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS:

1. The above recitals are true and correct.

2. Following notice duly given, the City Council has held a full and fair public hearing regarding the Drainage Benefit Assessment District No. 2016-1, the levy and collection of assessments, and has considered all public testimony and written statements, protests and communications made or filed by interested persons.

3. The City Council finds the record owners of property within the District previously approved the continued levy and collections of assessments through property owner balloting proceedings, and that the proposed assessment for Fiscal Year 2022/2023 is consistent with the assessment so approved.

4. Based upon its review of the facts presented and the Engineer’s Report that has been filed with the City Clerk, the City Council hereby finds and determines that:

Resolution 22-__ Page 2 of 3
4a) The land within the District will receive special benefit from the operation, maintenance and servicing of the improvements to be provided by the District as described in the Engineer’s Report.
4b) The District as defined by the Assessment Diagram contained in the Engineer’s Report, includes all of the lands receiving such special benefit. 4c) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2022 and ending June 30, 2023.

5. The Engineer’s Report and assessment as presented to the City Council and on file in the office of the City Clerk comply with the applicable provisions of the California State Constitution Article XIIID and are hereby confirmed as filed.

6. Pursuant to applicable law, City staff or their designee is hereby authorized and directed to file the levy of assessments for fiscal year 2022/2023 as approved herein with the Kern County Auditor/Controller along with a certified copy of this Resolution; and/or as may be required by the County Auditor/Controller or County Assessor, copies of the Engineer’s Report or Assessment Diagram confirmed by this Resolution.

7. The City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the City Council’s approval of the formation of the District; the confirmation of the Assessment Diagram; and the establishment of the maximum assessment rates, assessment range formula, and the assessments for Fiscal Year 2022/2023 as outlined in the Engineer’s Report and approved in these proceedings.

8. The maintenance, operation and servicing of the improvements shall be performed pursuant to the provisions of the Benefit Assessment Act of 1982, Title 5, Division 2, Part 1, Chapter 6.4 of the Government Code of the State of California Commencing with section 54703 (hereafter referred to as the "Act"). The City Council hereby orders the improvements to be made, which improvements are briefly described as the operation, maintenance, servicing and administration of the improvements, and incidental expenses related thereto for the District located within the boundary of the City of Ridgecrest, and the jurisdiction of the City Council. A more detailed description of the improvements is contained within the Report, but the improvements and facilities can be classified within the following general categories:

Installation, construction or maintenance of any authorized improvements under Act, including, but not limited to, drainage improvements and any facilities which are appurtenant to any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof.

9. The County Auditor of Kern County shall enter on the County Assessment Roll opposite each eligible parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected, pursuant to the Resolution 22-__ Page 3 of 3
provisions provided in the Act. After collection by the County, the net amount of the levy shall be paid to the Treasurer of the City of Ridgecrest.

10. The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fund for the City of Ridgecrest Drainage Benefit Assessment District No. 2016-1, and such money shall be expended only for the maintenance, operation and servicing of the improvements as described in section 5.

11. A copy of the levy shall be filed in the office of the City Clerk and open for public inspection PASSED, APPROVED, AND ADOPTED at a regular meeting of the Ridgecrest City Council, held on this 6th day of July, 2022.
____________________________________
Eric Bruen, Mayor
City of Ridgecrest, California
ATTEST:
__________________________
Ricca Charlon, City Clerk

STATE OF CALIFORNIA)
COUNTY OF KERN) ss

CITY OF RIDGECREST)
I, Ricca Charlon, City Clerk of the City of Ridgecrest, County of Kern, State of California do hereby certify that the foregoing Resolution was adopted by the City Council of said City of Ridgecrest at a regular meeting of said council held on the 7th day of July, 2021 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:
_________________________________
Ricca Charlon, City Clerk
City of Ridgecrest, California
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City of Ridgecrest
Drainage Benefit Assessment
District
No. 2016-1
(TRACT MAP 6700, 6775 AND PARTS OF 6740)
ENGINEER’S REPORT FISCAL
YEAR 2022/2023
Intent Meeting: June 1, 2022
Public Hearing: June 15, 2022
Adoption: July 6, 2022
2022/2023 City of Ridgecrest 2 | Page
Drainage Benefit Assessment District No. 2016-1

ASSESSMENT ENGINEER'S AFFIDAVIT

RIDGECREST DRAINAGE BENEFIT ASSESSMENT
DISTRICT NO. 2016-1
(Tracts 6700, 6775 and parts of Tract 6740)
City of Ridgecrest
Kern County, State of California
This Report describes the improvements of the City of Ridgecrest Drainage Benefit Assessment District No. 2016-1 (Tracts, 6700, 6775 & parts of 6740), as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Kern County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council.

Dated this ____________ day of ______________, 2022.

By: ________________________________
Travis Reed, Public Works Director
R.C.E. # 93828
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Drainage Benefit Assessment District No. 2016-1

TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................................ 3 INTRODUCTION ........................................................................................................................... 4 PART I — PLANS AND SPECIFICATIONS ................................................................................. 6 PROPERTIES WITHIN THE DISTRICT ................................................................................. 6 FUNDING AUTHORIZED BY THE 1982 ACT ........................................................................ 6 IMPROVEMENTS AND SERVICES ...................................................................................... 6 DRAINAGE MAINTENANCE .............................................................................................. 7 PART II — METHOD OF APPORTIONMENT .............................................................................. 8 BENEFIT ANALYSIS ........................................................................................................ 8 ASSESSMENT METHODOLOGY ........................................................................................ 9 Equivalent Benefit Units: ................................................................................. 10 Land Use Tracts 6700, 6775 and parts of Tract 6740 ..................................... 11 Assessment Calculations: ............................................................................... 12 ASSESSMENT RANGE FORMULA .................................................................................... 12 PART III — DISTRICT BUDGETS ............................................................................................... 14 PART IV — DISTRICT DIAGRAM ............................................................................................... 16 PART V — ASSESSMENT ROLL ................................................................................................ 17 MAXIMUM ASSESSMENT ROLL ....................................................................................... 18 ASSESSMENT ROLL FISCAL YEAR 2021/2022 ............................................................... 18 2022/2023 City of Ridgecrest 4 | Page
Drainage Benefit Assessment District No. 2016-1

INTRODUCTION
Pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the “1982 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the “California Constitution”), the City Council of the City of Ridgecrest, County of Kern, State of California (hereafter referred to as “City”), annually levies and collects special assessments in order to provide annual maintenance for Drainage Benefit Assessment District No. 2016-1 Tracts 6700, 6775 and parts of Tract 6740 (hereafter referred to as “District”), which includes all lots and parcels of land within Tracts 6700, 6775 and parts of Tract 6740 that will receive special benefit from the drainage improvements installed and maintenance in connection with the development of these residential subdivisions within the City limits of Ridgecrest. This Engineer’s Report (hereafter referred to as “Report”) has been prepared for the District and the levy and collection of annual assessments in fiscal year 2022/2023, as required pursuant to Section 54716 of the 1982 Act.

This Report describes the District, the improvements and levy and collect annual assessments on the County tax roll to provide ongoing funding for the costs and expenses required to service and maintain drainage improvements and appurtenant facilities that are necessary and essential requirements for the development of the properties within the District to cause the protection of those properties and the surrounding ecological environment from flooding. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substantive and procedural provisions of the California Constitution.

The budgets and assessments described in this Report are based on the planned improvements and development requirements associated with Tracts 6700, 6775 and parts of Tract 6740. The budgets described herein, represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to ensure proper maintenance, servicing and funding needs to support the drainage improvements that provide special benefit to properties within the District.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (APN) by the Kern County Assessor’s Office. The Kern County Auditor-Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments.

Each subsequent fiscal year, a Report shall be prepared and presented to the City Council describing any changes to the improvements, the services, the annual budget and assessments for that fiscal year, and the City Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the levy of assessments.
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Drainage Benefit Assessment District No. 2016-1
Part I
Plans and Specifications: A description of the District boundaries and the improvements associated with the District. The District is a single benefit zone encompassing all properties within the territory identified as Ridgecrest Drainage Benefit Assessment District 2016-1 (Tracts 6700, 6775 and parts of Tract 6740).

Part II
The Method of Apportionment: A discussion of benefits the improvements and services provided to properties within the District and the method of calculating each property’s proportional special benefit and annual assessment. This section also identifies and outlines an Assessment Range Formula that provides for an annual adjustment to the maximum assessment rate that establishes limits on future assessments, but also provides for reasonable cost adjustments due to inflation without the added expense of additional property owner protest ballot proceedings.

Part III
The District Budget: An estimate of the annual costs to operate, maintain and service drainage improvements related to the properties within the District. This budget includes an estimate of anticipated direct maintenance costs and incidental expenses including, but not limited to administration expenses and the collection of appropriate fund balances to establish an initial maximum assessment to be approved by the property owners of record. The special benefit maximum assessment for this District is based on an estimate of the annual maintenance and operational expenses at full build out of the improvements. The assessments for the first fiscal year (2017/2018), and each subsequent year shall be based on the estimated net annual cost of operating, maintaining and servicing the District improvements for that fiscal year. The maximum assessment (Rate per Equivalent Benefit Unit) identified in the budget of this Report establishes the initial maximum assessment rate for the District in fiscal year 2017/2018 and shall be adjusted annually by the Assessment Range Formula described in the method of apportionment.

Part IV
District Diagram: A Diagram showing the exterior boundaries of the District is provided in this Report and includes all parcels that will receive special benefits from the improvements. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of all parcels as shown on the Kern County Assessor's Parcel Maps as they existed at the time this report was prepared and includes all subsequent subdivisions, lot line adjustments or parcel changes therein.

Reference is hereby made to the Kern County Assessor’s maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District.

Part V
Assessment Roll: A listing of the assessment amount to be presented to the property owners of record in the protest ballot proceedings required pursuant to the provisions of the California Constitution. The assessment amount for each parcel is based on the parcel’s proportional special benefit as outlined in the method of apportionment and the initial maximum assessment rate.

This Report consists of five (5) parts:
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Drainage Benefit Assessment District No. 2016-1
PART I — PLANS AND SPECIFICATIONS

PROPERTIES WITHIN THE DISTRICT
Drainage Benefit Assessment District No. 2016-1, (Tracts 6700, 6775 and parts of Tract 6740), will consist of 182 residential properties, a park, and storm drain basin at build- out.

The purpose of the District is to ensure the ongoing maintenance, operation, and servicing of drainage improvements currently installed, or scheduled to be installed in connection with development of properties within the District. This District will provide the financial mechanism (annual assessments) by which the ongoing operation and maintenance of these improvements will be funded.

The District structure, improvements, method of apportionment and assessments described in this Report are based on current development and improvement plans including all estimated direct expenditures, incidental expenses, and reserves associated with the maintenance and servicing of the improvements.

The District is located within the boundaries of the City of Ridgecrest, generally situated on College Heights Blvd. South of W. Springer Ave., and North of W. Kendall Ave.

FUNDING AUTHORIZED BY THE 1982 ACT
As generally defined by the Benefit Assessment Act of 1982 and applicable to this District, the City may impose a benefit assessment to finance the maintenance and operation costs of the following services:
1) Drainage; and,
2) Flood Control
In addition to imposing a benefit assessment for the annual maintenance and operation of the District improvements, the City may also authorize an assessment or utilize existing assessment revenues to finance the installation, construction or replacement of drainage and flood control facilities. While such activities are permitted under the 1982 Act, the budget and assessments for this District only provide for normal maintenance and operation of the improvements. Since most major rehabilitation/construction projects result from unforeseen damages, the extent and cost of such projects are not easily predicted and to accumulate funds as part of the normal annual assessments is not practical. If such funding becomes necessary, the City may present a new or increased assessment to the property owners to support such projects.

IMPROVEMENTS AND SERVICES
The purpose of this District is to fund the activities necessary to maintain and service the corresponding drainage improvements required of properties within the District. The maintenance and operation of these improvements may include but are not limited to all materials, equipment, labor, and incidental expenses deemed necessary to keep these improvements in satisfactory condition as well as the collection of assessment installments for the periodic service activities, repair or rehabilitation of various improvements and facilities (not capital improvements expenditures or replacement of the drainage infrastructure).
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Drainage Benefit Assessment District No. 2016-1
Detailed maps and descriptions of the location and extent of the improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. These plans and specifications may be amended or modified from time to time to reflect future property development within the District or necessary changes to the planned developments currently approved by the City. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received from those various improvements. The District improvements and services are generally described as:

DRAINAGE MAINTENANCE
For Tracts 6700, 6775 and parts of Tract 6740, the drainage improvements are as follows:
• Storm Drain Basin/Park
• Storm Drain Sumps
• Drainage Mains
• All appurtenant facilities, equipment, materials and utilities related to the aforementioned improvements.
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Drainage Benefit Assessment District No. 2016-1
PART II — METHOD OF APPORTIONMENT
The 1982 Act permits the establishment of assessment districts by agencies for the purpose of providing for the maintenance, operation and servicing of drainage and flood control improvements as well as streets, roads and appurtenant facilities. The 1982 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service”.

Furthermore:
“The annual aggregate amount of the assessment shall not exceed the estimated annual cost of providing the service, except that the legislative body may, by resolution, determine that the estimated cost of work authorized … is greater than can be conveniently raised from a single annual assessment and order that the estimated cost shall be raised by an assessment levied and collected in installments…. The revenue derived from the assessment shall not be used to pay the cost of any service other than the service for which the assessment was levied.

The method of apportionment described in this Report for allocation of special benefit assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel.

BENEFIT ANALYSIS
The ongoing maintenance and servicing of the District improvements is an integral part of the use and preservation of the properties within the District and as such confer a particular and distinct special benefit to those parcels. The proper maintenance of the improvements and appurtenant facilities allows individual parcels to be developed and used to their fullest extent by ensuring adequate drainage and proper control of excess water during hydrological events, which is essential to preservation and protection of private property. In reviewing the drainage analysis prepared in connection with the development of properties in Tracts 6700, 6775 and parts of Tract 6740 (which contains all parcels within the District) it was determined that improvements to be maintained through this District are only necessary to provide drainage and control of excess water during hydrological events for properties within the District. That analysis indicated that the drainage and flow of excess water during hydrological events from surrounding properties will not be addressed by the District improvements and these improvements are only necessary to mitigate water run-off from the properties in the District.

Therefore, it has been determined that these drainage improvements and the maintenance and servicing of such improvements is entirely a special benefit to properties in the District and there is no quantifiable general benefit to properties or the public at large.

However, the drainage improvements proposed are paramount to the protection of existing public and private improvements which lie north of the subject district. 2022/2023 City of Ridgecrest 9 | Page
Drainage Benefit Assessment District No. 2016-1

ASSESSMENT METHODOLOGY
All costs associated with the improvements and services shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the California Constitution Article XIIID Section 4, each parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The method of apportionment established for this District and described herein, reflects the proportional special benefit each property receives from the improvements and services based on the actual land use of that parcel as compared to other properties within the District. The benefit formula used to determine the assessment obligation for each parcel is based upon both the type of improvements that benefit that particular parcel as well as the land use of each property as compared to other parcels that benefit from those specific improvements.

Upon review of the improvements and the development of properties within the District it has been determined that all properties receive similar special benefits from each of the improvements and services to be funded by annual assessments and a single zone of benefit is appropriate for the allocation of the assessments and proportional special benefit.

Furthermore, with the exception of the drainage sump, pocket park and public rights of way, all units within the District are zoned as residential.

Equivalent Benefit Units:

To assess benefits equitably it is necessary to relate each property’s proportional special benefits to the special benefits of other properties within the District. The method of apportionment established for most districts formed under the 1982 Benefit Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses a weighted EBU based on an assessment formula that equates the property’s specific development characteristics such as land use and size to that of other properties in the District.

Because this district will ultimately be comprised of only properties that will be developed for residential use, the single-family residential unit or lot is assigned one (1.000) Equivalent Benefit Unit (EBU) and other property types (land uses) are proportionately weighted (weighted EBU) based on a benefit formula that equates each property’s specific characteristics and special benefits to that of the single-family residential unit. Based on the planned development of properties in Tract 6700 and Tract 6775, the following land use classifications and proportional EBUs are outlined in the following:

Single-Family Residential Property — is defined as a fully subdivided residential home site with or without a structure. For purposes of establishing the proportional special benefits and equivalent benefit units for other land uses in this District, the single-family residential land use is designated as the basic unit of assessment and shall be assigned 1.000 EBU per parcel.

Vacant Property — is defined as property that has been identified as undeveloped, but has reasonable development potential (Few or no development restrictions). When considering the special benefits from the improvements it becomes evident that the proportional special benefits associated with vacant property is less than that of 2022/2023 City of Ridgecrest 10 | Page
Drainage Benefit Assessment District No. 2016-1
developed properties because the full improvement infrastructure associated with the property has likely not been installed, but they do benefit from the overall drainage improvements such as the drainage basin. Therefore, the Equivalent Benefit Units applied to these properties shall be based on 0.500 EBU per planned residential unit for the property or 1.000 EBU per acre if the number of planned residential units is unknown.

Exempt Property (Parcel) — identifies parcels that for various reasons, it has been determined that the parcel does not and will not receive special benefits from the improvements. This land use classification may include but is not limited to:
➢ Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County);
➢ Dedicated public easements including open space areas, utility rights-of-way, greenbelts, parkways, or other publicly-owned or utility-owned land that serves the community or general public and are not considered or classified as developed public properties, this excludes drainage devices such as cross gutters, spandrels, curb drains, inlets, etc. that are specifically designed to capture drainage of the area; ➢ Parcels of land that are privately owned, but cannot be developed independently from an adjacent property or is part of a shared interest with other properties, such as common areas, including parks, sliver parcels, bifurcated lots or properties with very restrictive development potential or use.

Because these properties either provide a public service that is comparable to landscaping or street lighting improvements, or they are dependent on another property or development, these types of parcels have no direct need for such improvements and are considered to receive no special benefits Therefore these parcels shall be exempt from assessment and are assigned 0.000 EBU. However, these properties shall be reviewed annually by the assessment engineer to confirm the parcel’s use and/or development status has not changed.

Special Case Property — In many districts where multiple land use classifications are involved or the properties being developed are being constructed in phases, there may be one or more properties that the standard land use classifications do not accurately identify the use and special benefits received from the improvements or there may be something about that particular parcel that should be noted for review in subsequent fiscal years.

The Equivalent Benefit Units assigned to Special Case Properties will vary depending on the circumstances and reasons for treating each particular property as a Special Case. The Equivalent Benefit Unit(s) assigned to each such parcel may be based on adjusted acreage, units, planned subdivided lots, or a combination of those factors. The City and/or the assessment engineer tasked with the administration of the District shall annually review each parcel designated as a Special Case Property and based on that review shall make appropriate adjustments to that property’s land use and Equivalent Benefit Unit assignment as warranted.
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Drainage Benefit Assessment District No. 2016-1
Land Use Tracts 6700, 6775 and parts of Tract 6740
Assessment Calculations:

The total number of Equivalent Benefit Units (EBU’s) is the sum of all individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBU’s of all parcels benefiting from the improvements. This Rate is then applied back to each parcel’s individual EBU to determine the parcel’s proportionate benefit and assessment obligation for the improvements.

Total Balance to Levy / Total EBU = Levy per EBU
Levy per EBU x Parcel EBU = Parcel Levy Amount

ASSESSMENT RANGE FORMULA
Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIII C and XIII D), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation).

The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the Annexation costs and assessments. Commencing with fiscal year 2016/2017, the amount of the assessment for the Annexation may be increased to adjust for increases in labor and material costs.

The increase established for this District is a Fixed 3.5% annual inflationary adjustment (Assessment Range Formula).

The Maximum Assessment is adjusted annually and is calculated independent of the annual budget and annual assessment. Any annual assessment (rate per EBU less than or equal to this Maximum Assessment) is not considered an increased assessment, even if the assessment is greater than the assessment applied in the prior fiscal year.

Property Type Equivalent Benefit Units
Residential 1.000 per Lot/Unit
Vacant Property (Planned Units) 0.500 per planned Lot/Unit Vacant Property (Unknown Units) 1.000 per Acre
Exempt Parcel - per Lot/Parcel
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Although the Maximum Assessment will increase each year, the actual assessment may remain unchanged. The Maximum Assessment adjustment is designed to establish a reasonable limit on assessments. The Maximum Assessment calculated each year does not require or facilitate an increase to the annual assessment and neither does it restrict assessments to the adjusted maximum amount. If the budget and assessment for the fiscal year do not require an increase, or the increase is less than the adjusted Maximum Assessment, then the required budget and assessment may be applied without additional property owner balloting. If the budget and assessments calculated requires an increase greater than the adjusted Maximum Assessment, then the assessment is considered an increased assessment and would be subject to balloting. 2022/2023 City of Ridgecrest 13 | Page
Drainage Benefit Assessment District No. 2016-1
PART III — DISTRICT BUDGETS
The following budget outlines the estimated annual costs to be collected to maintain the improvements and the applicable assessment rates for Fiscal Year 2022/2023.

MAINTENANCE & OPERATION EXPENSES
Proposed
FY 2022/2023
Budget
Drainage Sump Pump Expenses
Drainage Sump Pump and Basin Maintenance
(Primarily Slope re-solidification and weed
abatement) (Reduced by 1K no Maint. FY22)
$500.00
Total Direct Costs $500.00

INCIDENTAL/ADMINISTRATION EXPENSES
Reserve Fund Collection $250.00
Printing and Publishing 160.00
Mailing and Postage 40.00
County Collection Fee 80.00
City Overhead and Administration 3,000.00
Consulting fees 0.00
Total Incidental Costs $3,530.00
Total Maintenance, Operation & Incidental Expenses $4,030.00

COLLECTIONS/(CREDITS) APPLIED TO LEVY
General Benefit Contribution $0.00
Additional City Contribution $0.00
Total Contribution/Credit $0.00
Balance to Levy (Budgeted) $4,030.00

DISTRICT STATISTICS
Total Parcels 71
Total Parcels Levied 71
Total Equivalent Benefit Units 125.50
Levy Per EBU (Applied) $32.12
Maximum Assessment Rate per EBU $110.583
Amount to Collect $4,031.06
Prior Year Levy per EBU (Applied) $40.080
Prior Year Maximum Assessment Rate per EBU $110.5834
Change in Maximum Rate from Prior Year 3.50%
Reserve Fund
Fund Balances from City
Estimated Beginning Reserve Balance - June 30, 2021 $21,139.75 Reserve Fund Collection/Contribution 250.00
Estimated Ending Account/Reserve Balance -
June 30, 2022 $25,170.81
Note: Variance from budget due to rounding and County even penny rule.

MAINTENANCE & OPERATION EXPENSES
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Drainage Benefit Assessment District No. 2016-1
PART IV — DISTRICT DIAGRAM
The following District Diagram identifies the area of land within the District to be designated as “Drainage Benefit Assessment District No. 2016-1 (Tracts 6700, 6775 and parts of Tract 6740)”, based on the development and improvement plans for the District, Kern County Assessor’s Maps, and Kern County Assessor’s property information as the same existed at the time this Report was prepared. The District includes Kern County Assessor’s Parcel Map Book 510: Pages 211, 213, 214 (all Parcels); Page 212 Parcels 1 through 8; and Page 010 Parcels 17 and 18. The combination of this map and the Assessment Roll contained in Part V of this Report constitute the Assessment Diagram for the District.

A copy of the District Diagram follows:
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Drainage Benefit Assessment District No. 2016-1

ASSESSMENT DIAGRAM FOR
DRAINAGE BENEFIT ASSESSMENT DISTRICT NO. 2016-1

CITY OF RIDGECREST, COUNTY OF KERN, STATE OF CALIFORNIA 2022/2023 City of Ridgecrest 16 | Page
Drainage Benefit Assessment District No. 2016-1
PART V — ASSESSMENT ROLL
Parcel identification for each lot or parcel within the District is outlined in the preceding Assessment Diagram and is based on available parcel maps and property data from the Kern County Assessor’s Office at the time this Engineer’s Report was prepared. A listing of the lots and parcels to be assessed within this District for Fiscal Year 2022/2023 along with the assessment amount for each such lot or parcel is provided below.

If any parcel submitted for collection is identified by the County Auditor-Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County AuditorController. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rates described in this Report as approved by the City Council. Therefore, if a single parcel is subdivided to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.
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MAXIMUM ASSESSMENT ROLL
Subsequent to this section and the Assessment Roll Fiscal Year 2021/2022 is a list of the lots and parcels of land (parcels) within the District and the corresponding maximum assessments being set for Fiscal Year 2021/2022 as determined by the assessment rate and method of apportionment described herein.

ASSESSMENT ROLL FISCAL YEAR 2022/2023
The following is a list of the lots and parcels of land (parcels) within the District and the corresponding assessments to be levied and collected for Fiscal Year 2022/2023 as determined by the assessment rate and method of apportionment described herein:

APN Designated Land
Use
Equivalent
Benefit Unit
Proposed
Levy
Maximum
Levy
Proposed
Assessment
Maximum
Assessment
510-010-17-00 Undeveloped
Residential (Acreage) 26.50 $32.12 $110.583 $851.18 $2,831.26 510-010-24-00 Undeveloped
Residential (Acreage) 30.00 $32.12 $110.583 $963.60 $3,205.20 510-211-01-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-02-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-03-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-04-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-05-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-06-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-07-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-08-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-09-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-10-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-11-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-12-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-13-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-14-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-15-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-211-16-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-212-01-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-212-02-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-212-03-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-212-04-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-212-05-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-212-06-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-212-07-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-212-08-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-01-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-02-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-03-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-04-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-05-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-06-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-07-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-08-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-09-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-10-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 2022/2023 City of Ridgecrest 18 | Page
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APN Designated Land
Use
Equivalent
Benefit Unit
Proposed
Levy
Maximum
Levy
Proposed
Assessment
Maximum
Assessment
510-213-11-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-12-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-13-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-14-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-15-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-16-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-213-17-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-01-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-02-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-03-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-04-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-05-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-06-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-07-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-08-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-09-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-10-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-11-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-214-12-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-01-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-02-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-03-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-04-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-05-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-06-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-07-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-08-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-09-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-10-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-11-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-12-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-13-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-14-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-15-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 510-220-16-00 Residential 1.00 $32.12 $110.583 $32.12 $110.583 Total 125.50 $4,031.06 $13,878.16
Total Parcel Count 71.00
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Announcing Proclamations Prepared For The Month Of July And Scheduled Date Of Presentations
PRESENTED BY: Ricca Charlon, City Clerk
SUMMARY:

The Ridgecrest City Council receives requests for presentation of ceremonial proclamations for various events and observations. Proclamations below have been prepared and will be presented on the date and time shown.

1. RECOGNIZING COMMANDING OFFICER CAPTAIN LAURIE SCOTT
Proclamation will be presented at the Change of Command Ceremony to take place on July 13, 2022.

FISCAL IMPACT: None
ACTION REQUESTED: Approve and file
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: July 6, 2022
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Resolution Of The Ridgecrest City Council Authorizing The City Manager To Enter Into A Memorandum Of Agreement With Sierra Sands Unified School District For Law Enforcement Services (School Resource Officer Program)
PRESENTED BY: Jed McLaughlin, Chief of Police
SUMMARY:

For several years, the Ridgecrest Police Department has been providing law enforcement services to the Sierra Sands Unified School District (SSUSD) – School Resource Officer (SRO) Program. In 2013, a second SRO was added under a Department of Justice, COPS Hiring Program, which ended November 2016. SSUSD and the Police Department continued this second position to maintain services throughout the District.

SSUSD agrees to reimburse the City one-half of actual costs incurred by the City in employing the officers. Actual cost shall be defined as officer’s salary and benefits, including, but not limited to, health insurance, life insurance, dental insurance, vision insurance, PERS, educational incentive pay, uniform allowance, officer safety equipment, and overtime.

The agreement is attached to the resolution for your review as Exhibit A.

FISCAL IMPACT: (2) School Resource Officers – Reimbursed at 50% of actual costs (an estimated $150,000).

ACTION REQUESTED: Recommend approval by City Council authorizing the City Manager, or his designee, to enter into an agreement with the SSUSD for law enforcement services (School Resource Officer Program).

CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Captain Justin Dampier Action Date: July 06, 2022 This Page Intentionally Left Blank
RESOLUTION NO. 22-xX

RESOLUTION OF THE RIDGECREST CITY COUNCIL AUTHORIZING THE

CITY MANAGER TO ENTER INTO MEMORANDUM OF AGREEMENT WITH

SIERRA SANDS UNIFIED SCHOOL DISTRICT FOR LAW ENFORCEMENT SERVICES (School Resource Officer Program)
WHEREAS, the Sierra Sands Unified School District (SSUSD) and the City of Ridgecrest have agreed to enter into Memorandum of Agreement for the Police Department to continue to provide School Resource Officer services in the School District, and; WHEREAS, the School Resource Officer (SRO) Program provides law enforcement services to the district helping ensure there is a safe learning environment at the elementary, middle and high schools for the students, faculty and staff, and; WHEREAS, it is beneficial to both the City and SSUSD that this program continue to function, and;
WHEREAS, SSUSD agrees to reimburse the City 50% of actual costs of the School Resource Officer Program.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest authorize the City Manager, or his designee, to enter into an agreement with the Sierra Sands Unified School District to provide law enforcement services (School Resource Officer Program), including any amendments.

APPROVED AND ADOPTED THIS 6
th day of July 2022, by the following vote.

AYES:

NOES:

ABSTAIN:

ABSENT:

Eric A. Bruen, Mayor
ATTEST:

Ricca Charlon, City Clerk
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1 AGREEMENT
THIS AGREEMENT is made and entered into by and between the City of Ridgecrest, a Municipal Corporation, hereinafter referred to as “CITY,” and the Sierra Sands Unified School District, a public entity, hereinafter referred to as “DISTRICT.” WHEREAS, DISTRICT does not maintain a school law enforcement agency pursuant to Section 38000(a) of the California Education Code, and DISTRICT wishes to acquire the services of two sworn peace officers, and
WHEREAS, CITY, through the Ridgecrest Police Department, hereinafter referred to as “RPD,” is willing to provide the service of two sworn peace officers.

NOW, THEREFORE, the parties hereto agree as follows:

1. CITY agrees to provide the services of two sworn peace officers to serve the DISTRICT at the primary and secondary schools within the Ridgecrest city limits, specifically Gateway Elementary School, Faller Elementary School, Las Flores Elementary School, Pierce Elementary School, James Monroe Middle School, Murray Middle School, Mesquite High School, and Burroughs High School.

2. CITY shall supervise the officers through the command structure of the RPD.

3. DISTRICT shall appoint a designated individual to interface with RPD regarding activities of the officers and to interface with such officers in accordance with a joint operating protocol developed between RPD and DISTRICT.

The responsibilities of the SRO’s shall include, but not be limited to:
a. Handling requests for calls for service in and around schools b. Conducting comprehensive safety and security assessments c. Developing and implementing safety plans or strategies d. Responding to unauthorized persons on school property e. Serving as liaisons between the school and other police agencies, investigative units, or juvenile justice authorities when necessary and consistent with applicable civil rights laws and privacy laws
f. Serving as a member of a multidisciplinary school team to refer students to professional services within both the school (guidance counselors or social workers) and the community (youth and family service organizations) g. Building relationships with juvenile justice counselors to help connect youth with needed services
h. Developing and expanding crime prevention efforts for students

4. At all times during the term of this AGREEMENT, the officers shall be employees of the CITY, under supervision and control of CITY, and not an employee or agent 2 of DISTRICT; and CITY shall assume responsibility and liability for the activities of the officers.

5. During the term of this AGREEMENT, DISTRICT agrees to reimburse CITY one-half actual cost incurred by CITY in employing the officers. For purpose of this AGREEMENT, actual cost shall be defined as officer’s salary and benefits, including, but not limited to, health insurance, life insurance, dental insurance, vision insurance, PERS, educational incentive pay, uniform allowance, officer safety equipment, and overtime.

6. THIS AGREEMENT shall be effective September 1, 2022 and remain in full force and effect for a 12-month period ending August 31, 2023. Either party may terminate this AGREEMENT prior to August 31, 2023, by giving ninety (90) days notice to the other party. Notice to CITY shall be in writing, and mailed to or delivered to:

City Manager
City of Ridgecrest
100 W. California Avenue, Ridgecrest, CA 93555
Notice to DISTRICT shall be in writing, and mailed or delivered to:

Superintendent
Sierra Sands Unified School District
113 W. Felspar Ave.

Ridgecrest, CA 93555

7. Each party to this AGREEMENT hereby holds the other harmless from all claims or lawsuits for damages to property and for injuries to persons arising from each party’s performance of its obligations under this AGREEMENT. This obligation will include providing a defense to lawsuits and related services.

8. In the event any dispute arises between the parties concerning the interpretation or enforcement of the Terms and Conditions of this AGREEMENT, the parties hereto agree to submit any such dispute to arbitration pursuant to rules of the American Arbitration Association. Any decision of the American Arbitration Association shall be binding on the parties hereto. In the event that any matter is submitted to arbitration or if legal action or proceeding is taken in connection with the interpretation or enforcement of this AGREEMENT, whether or not such action is arbitrated or litigated, the prevailing party of any such action, proceeding, or arbitration shall be awarded, in addition to its actual costs incurred, its actual attorneys’ fees incurred. Actual attorneys’ fees means all attorneys’ fees incurred by the prevailing party whether or not such attorneys’ fees are deemed to be “reasonable” by a court of competent jurisdiction or an arbitrator. Furthermore, the sole and exclusive remedy for the resolution of disputes concerning the enforcement and interpretation of this AGREEMENT shall be arbitration. 3 9. This AGREEMENT constitutes the sole and only agreement between the parties hereto. Any prior discussions, agreements or understandings, whether written or oral, are of no force and effect. This AGREEMENT may be modified only by a written agreement executed by both parties hereto.

FOR THE CITY OF RIDGECREST
___________________________ _________________
Eric Bruen, Mayor Date
___________________________ _________________
Ronald Strand, City Manager Date

FOR THE SIERRA SANDS UNIFIED SCHOOL DISTRICT

______________________________ _________________
Kurt Rockwell, Board President Date
______________________________ _________________
Dr. Dave Ostash, Superintendent Date
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: A Resolution Of The City Council Of The City Of Ridgecrest Delegating Authority Under Gov. Code 21173 To The City Manager To Make Certain Determination(s) On Behalf Of The Agency
PRESENTED BY: Ron Strand, City Manager
SUMMARY:

The California Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he/she is classified as a local safety member is disabled for purpose of the California Public Employees’ Retirement Law and whether such disability is “industrial” within the meaning of such Law The Council may delegate authority under Government Code section 21173 to make such determinations. Therefore, upon legal advice, it is recommended to delegate authority to the incumbent of the position of City Manager.

FISCAL IMPACT: None
ACTION REQUESTED: Approve Resolution
CITY MANAGER’S RECOMMENDATION:

Submitted by: Ricca Charlon Action Date: July 6, 2022
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RESOLUTION NO. 22-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIDGECREST DELEGATING AUTHORITY UNDER GOV. CODE 21173

TO THE CITY MANAGER TO MAKE CERTAIN DETERMINATION(S)

ON BEHALF OF THE AGENCY
WHEREAS, the City of Ridgecrest (hereinafter referred to as Agency) is a contracting agency of the California Public Employees’ Retirement System (CalPERS); and, WHEREAS, the California Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he/she is classified as a local safety member is disabled for purpose of the California Public Employees’ Retirement Law and whether such disability is “industrial” within the meaning of such Law; and,
WHEREAS, the City Council of the City of Ridgecrest has determined upon legal advice that it may delegate authority under Government Code section 21173 to make such determinations to the incumbent of the position of City Manager.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest does hereby delegate to the incumbent of the position of City Manager, authority to make application on behalf of the Agency pursuant to Government Code Section 21152(c) for disability retirement of all employees and to initiate requests for reinstatement of such employees who are retired for disability;
BE IT FURTHER RESOLVED that the City Council of the City of Ridgecrest does hereby delegate to the incumbent of the position of City Manager authority to make determinations of disability on behalf of the Agency under Government Code section 21156 and whether such disability is industrial and to certify such determinations and all other necessary information to the California Public Employees’ Retirement System.

APPROVED AND ADOPTED this 6
th day of July, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Eric A. Bruen, Mayor
ATTEST:

Ricca Charlon, City Clerk
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Appointment To Fill One (1) Seat On The Measure V Committee PRESENTED BY: Ricca Charlon, City Clerk
SUMMARY:

The Measure V Committee recently had a member resign leaving a vacancy.

Council member Rajaratnam will make a new appointment to fill the seat.

FISCAL IMPACT: None
ACTION REQUESTED: Confirm nomination/appointment with voice vote/general concensus.

CITY MANAGER’S RECOMMENDATION:

Submitted by: Ricca Charlon Action Date: July 6, 2022
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT:

Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA) PRESENTED BY:

L. Scott Hayman, City Council / IWVGA Representative
SUMMARY:

Report and discussion regarding Board meetings of the IWVGA. Including, Board discussion and consideration of issues of importance requiring action by the IWVGA.

FISCAL IMPACT: None
ACTION REQUESTED: Discuss
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: July 6, 2022
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CITY COUNCIL/SUCCESSOR REDEVELOPMENT AGENCY

FINANCING AUTHORITY/HOUSING AUTHORITY AGENDA ITEM
SUBJECT: Introduction Of The Amended And Restated Solid Waste Franchise Agreement Between The City Of Ridgecrest And Waste Management Of California, Inc., A Waste Management Company PRESENTED BY: Megan McKenzie, Economic Development Analyst SUMMARY:

BACKGROUND
The City of Ridgecrest (City) contracts solid waste services with an outside contractor. Waste Management of California, Inc. (WM) entered into an agreement with the City in September of 2011 to provide solid waste and recycling collection, processing, and disposal, and assist the City with a CalRecycle compliance plan to come into compliance with Assembly Bill 939 (AB 939). City Council approved an amendment to the agreement to extend the contract to December 2021 and provide additional organic waste collection services to come into compliance with Assembly Bill 1826 (AB 1826). Staff have negotiated an amended and extended agreement with WM to ensure the City’s collection and processing program are compliant with Senate Bill SB 1383 (SB 1383).

California’s Short-Lived Climate Pollutant Reduction law, SB 1383, was signed by Governor Brown in 2016 and establishes methane reduction targets for California. The law sets goals to reduce disposal of organic waste in landfills, including edible food. The reported purpose was to reduce greenhouse gas emissions and address food insecurity in California. However, the law has many more aspects to it, and significantly expands on existing organics collection required by AB 1826.

SB 1383 mandates that all businesses and residents, as well as multi-family housing, are provided recycling programs that capture food scraps and landscaping debris, among other organic waste materials.

This increase in collection services will require a rate increase to provide the necessary infrastructure, staff, processing, monitoring, and reporting requirements to comply with SB 1383. Hence, in coordination with the City’s waste hauler, the amended and extended agreement outlines expanded recycling and organics collection programs to allow the City to meet the minimal level of compliance with SB 1383.

FRANCHISE AGREEMENT AMENDMENT
Term
The amended and extended agreement extends the term of the agreement through December 31, 2031, and provides an option to extend the agreement up to five (5) additional years.

Expanded Services
The amended and restated agreement will provide the following additional and expanded services to rate payers:
 Organics collection, including food waste, to all residents and commercial businesses by rolling out a third cart. An additional cart for recycling and/or organics will be provided upon request by customer at no additional charge.
 Kitchen pails for residents designed to collect food scraps inside before bringing it out to the new organics container. Compostable bags will be accepted in organics collection to help reduce odor and mess in kitchen pails and organics bins.
 Bulky waste collection service extended to multi-family residents. Single-family residents may still request this services up to three (3) times per year at no additional cost.  Other additional services for customers include: holiday tree removal; sharps collection programs; a drop-off battery recycling program; and additional drop-off facilities for recycling & diaper collection at WM yard.
 Collection waiver (de minimis volumes, space constraint, and collection frequency) verification in coordination with City staff.
 Contamination monitoring program to fulfill regulatory requirements.  SB 1383 compliance inspections to ensure commercial businesses are complying with SB 1383 requirements.
 Edible food recovery program support through the identification and education of generators who are mandated to recover edible food (e.g., supermarkets, large venues, hospitals).  Procurement of organic waste products including RNG fueled collection trucks (when available).

The City will continue to work with Kern County Public Works to procure compost/mulch that will be available to residents through compost give-away events.

Collection Schedule
In order to minimize the rate increase, WM and the City negotiated an alternative collection schedule for materials. Upon commencement of the new agreement, rate payers will receive every week organics (yard waste and food waste) collection, and every other week solid waste and recycling collection. The City received approval from the Kern County Environmental Health Division, who serves as the Lead Enforcement Agency for solid waste programs, to implement this collection program, and there are provisions in the contract for the City and WM to meet in the event the new collection schedule does not produce the intended results.

According to a proposal provided by WM, implementing every week trash and organics collection would have resulted in approximately 54% rate increase for residents. The final proposed bi-weekly collection schedule reduces the rate increase to approximately 32% for residents. The agreement outlines an education plan to help the public successfully transition to the new collection program. If the City needs to revert to every week collection for solid waste and/or recycling, Staff will need to come back to City Council to approve another rate increase to cover the collection costs associated with every week service for those material streams.

Cart Color Scheme Compliance and Inventory
SB 1383 requires collection containers to be color compliant statewide. The City currently has color compliant blue carts for recycling, and green carts for trash, which are not color compliant. Green lids/carts are required for organics collection, and black/gray are required for trash. Lids/Carts are also required to be labelled to match the waste stream they are collecting.

Instead of buying all new color-compliant trash and organics carts, Staff have further negotiated additional cost saving measures with WM regarding the transition to color-compliant carts by keeping as much of the existing cart inventory in use as possible. The existing blue recycling carts will remain in service. WM will re-lid the current green trash carts with properly labelled black lids to convert these containers to trash service. The third cart delivered for organic waste will be a 35-gallon gray cart with a green lid. The gray body for containers for all future cart replacements will eliminate the need to store excess inventory and reduce the capital costs over the lifetime of the agreement, thereby reducing the cost passed onto rate payers.

The future cart replacement color scheme is defined in the chart below:

Container Type Organic Waste Recyclable Materials Solid Waste Available Sizes 35-gallon 95-gallon (or similar) 35-, 65-, and 95-gallon (or
similar)
Container Lid Color Green Blue Black
Container Body Color Charcoal (Dark) Gray
Implementation Plan
Upon commencement of the agreement, WM will begin rolling out education materials to residents to begin informing them of the upcoming changes to collection schedules and expanded collection services.

Preparing residents before the implementation of the additional services will ease the transition. WM plans to deliver the additional carts and transition the existing carts to residents September-December 2022. Organic waste collection service is set to begin in January 2023.

Proposed Rates
The proposed rate increases amount to an increase of approximately 32% for residential customers, approximately 25% for multi-family, and approximately 22-27% for commercial customers (based on frequency and subscribed service level) over the current 2021-2022 approved rates.

Service Level Current
Rate
(2021-2022)
Pre-Restated
Agreement
(2022-2023)
Proposed
Rate
(2022-2023)
Difference
(Current and
Proposed)
Residential 32 Gallon Cart $15.32 $16.16 $20.23 $4.91
Residential 96 Gallon Cart $19.15 $20.20 $25.29 $6.14
Multi-Family 1.5 CY Bin (1x/week) $141.23 $149.00 $176.12 $34.89 Multi-Family 3.0 CY Bin (1x/week) $193.00 $203.62 $240.68 $47.68 Commercial 96 Gallon Cart
(1x/week)
$47.79 $51.63 $58.34 $10.55
Commercial 1.5 CY Bin (1x/week) $145.15 $156.96 $177.36 $32.21 Commercial 3.0 CY Bin (1x/week) $208.91 $228.07 $257.72 $48.81 Multi-family and commercial customers rates reflect the proposed every other week solid waste and recycling collection service alongside every week organics service. If a multi-family or commercial customer wanted to have additional pickups weekly, or multiple times per week, they could arrange to do so with WM for the approved additional rates shown in Exhibit C3 (Initial Rates for Collection Services) of the amended and restated agreement.

RECOMMENDATION:

Motion To Approve And Authorize The City Manager To Execute The Amended And Restated Solid Waste Franchise Agreement Between the City of Ridgecrest And Waste Management Of California, Inc., A Waste Management Company and To Approve The Proposed Rate Increases Effective July 1, 2022.

FISCAL IMPACT:

ACTION REQUESTED: Approve recommended motions.

CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION:

Submitted by: Megan McKenzie Action Date: July 6, 2022
RESOLUTION NO. 22-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIDGECREST,

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE THE

AMENDED & RESTATED SOLID WASTE FRANCHISE AGREEMENT

BETWEEN THE CITY OF RIDGECREST AND WASTE MANAGEMENT OF
CALIFORNIA, INC., A WASTE MANAGEMENT COMPANY AND APPROVING THE PROPOSED RATE INCREASES EFFECTIVE JULY 1, 2022
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) and subsequent modifications thereto, established a Solid Waste management process that requires cities and other local jurisdictions to implement source reduction, reuse, and recycling as integrated waste management practices; and,
WHEREAS, AB 939 authorizes and requires local agencies to make adequate provisions for Solid Waste handling within their jurisdictions; and, WHEREAS, CalRecycle, in consultation with the California Air Resources Board, has adopted regulatory requirements (Regulations), consistent with the mandate of Senate Bill 1383 (Lara, 2016), that are designed to achieve the organic waste reduction goals established in Section 39730.6 of the Health and Safety Code through a 50 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 and a 75 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2025; and, WHEREAS, City of Ridgecrest is a local jurisdiction required to comply with the Regulations; and,
WHEREAS, Section 40059 of the State Public Resources Code provides that the City may determine aspects of Solid Waste handling that are of local concern including, but not limited to, frequency of Collection, means of Collection and Transportation, level of services, charges and fees, and nature, location, and extent of providing Solid Waste handling services, and whether the services are to be provided by means of partially exclusive or wholly exclusive Agreements, contracts, licenses, permits, or otherwise; and,
WHEREAS, the City is obligated to protect the public health and safety of the residents of the City and arrangements by waste haulers for the Collection of Solid Waste should be made in a manner consistent with the protection of public health and safety; and, WHEREAS, City of Ridgecrest entered into an agreement in September of 2011 with Waste Management of California, Inc. (WM) to provide solid waste and recycling collection, processing, and disposal services; and,
WHEREAS, Council approved an amendment to the agreement to extend the contract to December 2021 and provide additional organic waste collection services to come into compliance with AB 1826; and,
WHEREAS, California’s Short-Lived Climate Pollutant Reduction law, SB 1383, was signed by Governor Brown in 2016 and significantly expands on existing organics collection required by AB 1826; and,

WHEREAS, in coordination with the City’s waste hauler, the amended and extended agreement outlines expanded recycling and organics collection programs to allow the City to meet the minimal level of compliance with SB 1383; and,
WHEREAS, this increase in collection services will require a rate increase to provide the necessary infrastructure, staff, processing, monitoring, and reporting requirements to comply with SB 1383.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest does hereby find as follows:

1. The City Council of the City of Ridgecrest by and through its City Manager hereby formally approves the Amended & Restated Solid Waste Franchise Agreement attached as Exhibit “A”.

2. The City Council of the City of Ridgecrest hereby authorizes the City Manager to make any non-substantive changes to the Amended & Restated Solid Waste Franchise Agreement.

3. The City Council of the City of Ridgecrest hereby authorizes and directs City Manager, on its behalf, to execute the amended and restated solid waste franchise agreement between the City of Ridgecrest and Waste Management of California, Inc.

4. The City Council of the City of Ridgecrest hereby by and through its City Manager hereby formally approves the proposed rate increases to execute the Amended & Restated Solid Waste Franchise Agreement, through the term of the agreement effective July 1, 2022 to December 31, 2031.

ADOPTED AND APPROVED this day of , 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Eric A. Bruen, Mayor
ATTEST:

Ricca Charlon, City Clerk

AMENDED AND RESTATED

SOLID WASTE FRANCHISE AGREEMENT

BETWEEN

THE CITY OF RIDGECREST
AND
WASTE MANAGEMENT OF CALIFORNIA, INC.

JUNE 22, 2022
June 17, 2022 -i- City of Ridgecrest Franchise Agreement

TABLE OF CONTENTS
ARTICLE 1: GRANT AND ACCEPTANCE OF FRANCHISE ........................................ 3 Section 1.1: Grant and Limitations of Exclusive Franchise ........................................ 3 ARTICLE 2: REPRESENTATIONS AND WARRANTIES OF THE PARTIES............... 5 Section 2.1: Representations and Warranties............................................................ 5 ARTICLE 3: TERM OF AGREEMENT............................................................................ 7 Section 3.1: Term of Agreement ................................................................................ 7 Section 3.2: City’s Option to Extend........................................................................... 7 Section 3.3: Termination for Failure to Implement Services....................................... 7 ARTICLE 4: SCOPE OF SERVICES.............................................................................. 8 Section 4.1: Single-Family Services........................................................................... 8 Section 4.2: Commercial and Multi-Family Services .................................................. 9 Section 4.3: Collection Service Operating Requirements ........................................ 11 Section 4.4: Other Services ..................................................................................... 12 Section 4.5: Standard of Performance..................................................................... 20 Section 4.6: Collection Locations............................................................................. 22 Section 4.7: Other Wastes ....................................................................................... 22 Section 4.8: Changes in Scope of Collection Services ............................................ 22 Section 4.9: Billing ................................................................................................... 23 Section 4.10: Transition to Next Contractor at End of Agreement ........................... 24 ARTICLE 5: PROCESSING AND TRANSFER ............................................................ 25 Section 5.1: Processing and Transfer Arrangements............................................... 25 Section 5.2: Processing Facility Temporary Equipment or Operational Failure Waiver ................................................................................................................................. 25 Section 5.3: Materials Marketing.............................................................................. 26 Section 5.4: Title to Recovered Materials ................................................................ 26 ARTICLE 6: SOLID WASTE DISPOSAL ..................................................................... 27 Section 6.1: Solid Waste Disposal ........................................................................... 27 Section 6.2: Gate and Bin Fees ............................................................................... 27 ARTICLE 7: DIVERSION PROGRAMS........................................................................ 28 Section 7.1: The Contractor's Responsibility for Implementation............................. 28 Section 7.2: Public Awareness ................................................................................ 28 Section 7.3: Termination for Failure to Implement Strategies .................................. 28 ARTICLE 8: OPERATING ASSETS............................................................................. 29 Section 8.1: Operating Assets ................................................................................. 29 Section 8.2: Operation and Maintenance of the Operating Assets .......................... 29 Section 8.3: Containers............................................................................................ 30 Section 8.4: Vehicle Requirements.......................................................................... 31 June 17, 2022 -ii- City of Ridgecrest Franchise Agreement ARTICLE 9: GENERAL REQUIREMENTS .................................................................. 33 Section 9.1: Public Access to the Contractor........................................................... 33 Section 9.2: Complaints ........................................................................................... 33 Section 9.3: Accounting and Records ...................................................................... 34 Section 9.4: Reporting ............................................................................................. 35 Section 9.5: Applicable Law Compliance ................................................................. 36 Section 9.6: Personnel and Subcontractors............................................................. 36 Section 9.7: City Contract Manager ......................................................................... 36 ARTICLE 10: CITY REIMBURSEMENT....................................................................... 38 Section 10.1: City Reimbursement........................................................................... 38 Section 10.2: Adjustment to Fees ............................................................................ 38 Section 10.3: Payment Schedule and Late Fees ..................................................... 38 ARTICLE 11: CONTRACTOR’S COMPENSATION AND RATE SETTING................. 40 Section 11.1: General .............................................................................................. 40 Section 11.2: Rates and Annual Adjustments.......................................................... 40 Section 11.3: Special Circumstances Rate Adjustments ......................................... 41 Section 11.4: Publication of Rates ........................................................................... 42 ARTICLE 12: INDEMNITY, INSURANCE, AND PERFORMANCE BOND .................. 43 Section 12.1: Indemnification................................................................................... 43 Section 12.2: Insurance ........................................................................................... 44 Section 12.3: Performance Bond ............................................................................. 46 ARTICLE 13: DEFAULT, REMEDIES AND TERMINATION........................................ 47 Section 13.1: Default and Remedies........................................................................ 47 Section 13.2: Liquidated Damages .......................................................................... 48 Section 13.3: Uncontrollable Circumstances ........................................................... 50 Section 13.4: Right to Demand Assurances of Performance ................................... 51 Section 13.5: Waiver of Defenses............................................................................ 52 ARTICLE 14: RESOLUTION OF DISPUTES ............................................................... 52 ARTICLE 15: MISCELLANEOUS PROVISIONS ......................................................... 54 Section 15.1: Relationship of the Parties ................................................................. 54 Section 15.2: Notice to Parties................................................................................. 54 Section 15.3: Actions of the City in its Governmental Capacity ............................... 54 Section 15.4: Binding Effect..................................................................................... 54 Section 15.5: Amendments...................................................................................... 55 Section 15.6: Further Assurance ............................................................................. 55 Section 15.7: Assignment and Transfer of Agreement............................................. 55 Section 15.8: Interpretation...................................................................................... 56 Section 15.9: Jurisdiction ......................................................................................... 57 Section 15.10: Entire Agreement ............................................................................. 57 June 17, 2022 -iii- City of Ridgecrest Franchise Agreement List of Exhibits
A. Definitions
B. Rate Adjustment Methodology
C. Contractor’s Proposal
C1. Reserved
C2. Cost Basis for Rates
C3. Initial Rates for Collection Services
C4. 3rd Cart Implementation Plan and Schedule
C5. Public Education and Outreach Plan
ReservedC7. Approved Subcontractors
C8. Contamination Monitoring Flow Chart
D. Reporting Requirements
E. Form of Performance Bond
F. Contractors Emergency Preparedness Plan
G. City Service Locations
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June 22, 2022 -1- City of Ridgecrest Franchise Agreement

SOLID WASTE FRANCHISE AGREEMENT
This Solid Waste Franchise Agreement (the "Agreement") is entered into on the ____ day of ___________, ______ by and between the City of Ridgecrest (hereinafter, the “City”), and Waste Management of California, Inc., a California corporation, a Waste Management company (hereinafter, the “Contractor”) (together, the “Parties”).

RECITALS
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) and subsequent modifications thereto, established a Solid Waste management process that requires cities and other local jurisdictions to implement source reduction, reuse, and Recycling as integrated waste management practices; and WHEREAS, AB 939 authorizes and requires local agencies to make adequate provisions for Solid Waste handling within their jurisdictions; and
WHEREAS, Section 40059 of the State Public Resources Code provides that the City may determine aspects of Solid Waste handling that are of local concern including, but not limited to, frequency of Collection, means of Collection and Transportation, level of services, charges and fees, and nature, location, and extent of providing Solid Waste handling services, and whether the services are to be provided by means of partially exclusive or wholly exclusive Agreements, contracts, licenses, permits, or otherwise; and
WHEREAS, the City is obligated to protect the public health and safety of the residents of the City and arrangements by waste haulers for the Collection of Solid Waste should be made in a manner consistent with the protection of public health and safety; and WHEREAS, the City has entered into a compliance plan with CalRecycle in order to come into full compliance with AB 939, AB 341, AB 1826, and SB 1383 and the Parties understand that the implementation of, and continued compliance with, that plan will become the primary responsibility of the Contractor; and
WHEREAS, the City and the Contractor are mindful of the provisions of the laws governing the safe Collection, Transport, Recycling, and Disposal of Solid Waste, including AB 939 and the Resource Conservation and Recovery Act 42 U.S.C. 9601 et seq.; and WHEREAS, SB 1383 establishes regulatory requirements for jurisdictions, Generators, haulers, Solid Waste facilities, and other entities to support achievement of state-wide Organic Waste Disposal reduction targets; and,
WHEREAS, SB 1383 requires the City to implement Collection programs, meet Processing Facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements; and, the City has chosen to delegate some of its responsibilities to the Contractor, acting as the City’s designee, through this Agreement; and,
WHEREAS, the City Council determines and finds that the public interest, health, safety and well being would be served if the Contractor performs these services for Residential and Commercial Customers; and
June 22, 2022 -2- City of Ridgecrest Franchise Agreement WHEREAS, in accordance with Section 40059 of the State Public Resources Code, the City Council is empowered to enter into agreements with any Person or corporation and to prescribe the terms and conditions of such agreements; and
WHEREAS, the City Council has negotiated with Contractor and has authorized the execution of this Amended and Restated Agreement on _________________; and WHEREAS, neither the City nor Contractor could anticipate all of the possible needs, considerations, or eventualities that may arise during the Term of this Agreement and the Parties agree that they will work together in a spirit of mutual cooperation to resolve any such issues as and when they arise;
NOW THEREFORE, in consideration of the respective and mutual covenants and promises herein, and subject to all the terms and conditions hereof, the Parties agree as follows:

June 22, 2022 -3- City of Ridgecrest Franchise Agreement ARTICLE 1: GRANT AND ACCEPTANCE OF FRANCHISE
Section 1.1: Grant and Limitations of Exclusive Franchise By the signing of this Agreement, the City grants to Contractor and Contractor accepts an exclusive franchise within the corporate limits of the City. Subject to the limitations described in the Municipal Code, the franchise granted to Contractor shall be the exclusive right to Collect, Transport, handle, Process, Recycle, and Dispose of all Discarded Materials generated by Residential Premises and NonResidential Premises in the City, as more particularly set out in the scope of services described in Article 4 of this Agreement and subject to the limitations described below in Section 1.1.A and except where otherwise precluded by Federal, State, and local laws and regulations.

A. Limitations to Exclusivity. The award of this Agreement shall not preclude the categories of Solid Waste and Recyclable Materials listed below from being delivered to, and Collected and Transported by, others provided that nothing in this Agreement is intended to or shall be construed to excuse any Person from obtaining any authorization from the City, which is otherwise required by law:

1. Recyclable Materials. Other Persons shall maintain the right to accept donated Recyclable Materials and to pay the service recipient for Recyclable Materials so long as there is no net payment made by the service recipient to such other Person;

2. Self-Hauled Materials. A Commercial business Owner or Resident may Dispose of Solid Waste and Recyclable Materials generated in or on their own Premises using their own vehicles and equipment, and, with respect to a Commercial business, its own employees;

3. Donated Materials. Any items that are donated by the Generator to youth, civic, or charitable organizations;

4. Beverage Containers. Containers delivered for Recycling under the California Beverage Container Recycling and Litter Reduction Act, Section 14500, et seq. of the California Public Resources Code;

5. Materials Removed by Customer’s Contractor as Incidental Part of Services. Solid Waste and/or Recyclable Materials removed from a Premises by a contractor (e.g., gardener, landscaper, tree-trimming service, construction contractor, Residential clean-out service), using its own employees, vehicles, and equipment as an incidental part of the service being performed and such contractor is providing a service that is not included in the scope of this Agreement;

6. Animal, Grease Waste, and Used Cooking Oil. Animal waste and remains from slaughterhouse or butcher shops, grease, or used cooking oil;

7. Sewage Treatment By-Product. By-products of sewage treatment, including sludge, sludge ash, grit, and screenings;

8. Excluded Waste. Excluded Waste regardless of its source;

9. Materials Generated by State, County, and Federal Facilities. Materials generated by State, County, and Federal facilities located in the City;
June 22, 2022 -4- City of Ridgecrest Franchise Agreement

10. Edible Food Recovery. Contractor shall cooperate with and shall not impede, interfere, or attempt to impede or interfere with the implementation, expansion, or operation of Edible Food Recovery efforts in the City;

11. Animal Feed. The hauling of byproducts from the Processing of food or beverages and use of such material as animal feed if the byproducts originate from agricultural or industrial sources, do not include animal (including fish) Processing byproducts, are Source Separated by the Generator of the byproducts, and are not discarded; and, if the use as animal feed is in accordance with 14 CCR Section 18983.1(b)(7); and,

12. Compost. Organic Material that is Composted or otherwise legally managed at the site where it is generated or at a Community Composting site.

Contractor acknowledges and agrees that the City may permit other Persons besides the Contractor to Collect any and all types of materials excluded from the scope of this Franchise, as set forth above, without seeking or obtaining approval of Contractor. If Contractor can produce evidence that other Persons are servicing Collection Containers or are Collecting and Transporting Solid Waste, Recyclable Materials, and/or Organic Materials (collectively “Franchised Materials”) in a manner that is not consistent with this Agreement or the City’s Municipal Code, it shall report the location, the name, and phone number of the Person or company to the City Contract Manager along with Contractor’s evidence. In such case, the City may notify the Generator and Person providing service of Contractor’s rights under this Agreement.

This Agreement and scope of this franchise shall be interpreted to be consistent with Applicable Law, now and during the Term of the Agreement. If future judicial interpretations of current law or new laws, regulations, or judicial interpretations limit the ability of the City to lawfully contract for the scope of services in the manner and consistent with all provisions as specifically set forth herein, Contractor agrees that the scope of the Agreement will be limited to those services and materials that may be lawfully included herein and that the City shall not be responsible for any lost profits or losses claimed by Contractor to arise out of limitations to the scope or provisions of the Agreement set forth herein. In such an event, it shall be the responsibility of Contractor to minimize the financial impact of such future judicial interpretations or new laws, and the Contractor may meet and confer with City and may petition for a Rate adjustment resulting from a Change in Law pursuant to Section 11.3.

June 22, 2022 -5- City of Ridgecrest Franchise Agreement ARTICLE 2: REPRESENTATIONS AND WARRANTIES

OF THE PARTIES
Section 2.1: Representations and Warranties
The Parties, by acceptance of this Agreement, represent and warrant that:

A. Existence and Powers. The Parties are duly organized and validly existing under the laws of the State of California, with full legal right, power, and authority to enter into and perform their obligations under this Agreement.

B. Due Authorization and Binding Obligation. The Parties have duly authorized the execution and delivery of this Agreement. This Agreement has been duly executed and delivered and constitutes the legal, valid, and binding obligation of the Parties, enforceable against the Parties in accordance with its terms, except insofar as such enforcement may be affected by bankruptcy, insolvency, moratorium, and other laws affecting creditors' rights generally.

C. No Conflict. Neither the execution, nor the performance by the Parties of their obligations under this Agreement: (1) conflicts with, violates, or results in a breach of any law or governmental regulations applicable to either Party; or, (2) conflicts with, violates, or results in a breach of any term or condition of any judgment, decree, franchise, agreement (including, without limitation, the certificate of incorporation of the Contractor), or instrument to which the Contractor or any Affiliate is a party or by which the Contractor or any Affiliate or any of their properties or assets are bound, or constitutes a default under any such judgment, decree, agreement, or instrument. The Parties have read and are aware of the provisions of Section 1090 et seq. and Section 87100 et seq. of the California Government Code relating to conflicts of interest for public officers and employees.

Contractor represents it is unaware of any financial or economic interest of any public officer or employee of the City relating to this Agreement.

D. No Litigation. There is no action, suit, or other proceeding as of the Agreement Date, at law or in equity, before or by any court or governmental authority, pending, or to the Parties’ best knowledge, threatened against the either Party that is likely to result in an unfavorable decision, ruling, or finding that would materially and adversely affect the validity or enforceability of this Agreement or any such agreement or instrument entered into by either Party in connection with the transactions contemplated hereby, or that would materially and adversely affect the performance by that Party of its obligations hereunder or by the Contractor under any such other agreement or instrument.

E. No Legal Prohibition. The Parties have no knowledge of any Applicable Law in effect on the Agreement Date that would prohibit the performance by either Party of this Agreement and the transactions contemplated hereby.

F. Contractor’s Statements. The Contractor’s Proposal and any other supplementary information submitted to the City, which the City has relied on in awarding and entering this Agreement, do not:
(i) contain any untrue statement of a material fact, or, (ii) omit to state a material fact that is necessary in order to make the statements made, in light of the circumstances in which they were made, not misleading.

G. Contractor’s Investigation. Contractor has made an independent investigation (satisfactory to it) of the conditions and circumstances surrounding the Agreement and the work to be performed June 22, 2022 -6- City of Ridgecrest Franchise Agreement hereunder. Contractor has taken such matters into consideration in entering this Agreement to provide services in exchange for the compensation provided for under the terms of this Agreement.

H. Ability to Perform. Contractor possesses the business, professional, and technical expertise to manage, Collect, Transport, and Dispose of the Solid Waste and to manage, Collect, Transport, and Process Recyclable Materials and Compostable Materials; and Contractor possesses the equipment, facility, and employee resources required to perform this Agreement.

I. Voluntary Use of Designated Disposal Facility. The Contractor, without constraint and as a freemarket business decision in accepting this Agreement, agrees to use the Approved Disposal Location for the purposes of Disposing of all Solid Waste Collected in the City. Such decision by Contractor in no way constitutes a restraint of trade notwithstanding any Change in Law regarding flow control limitations or any definition thereof.

June 22, 2022 -7- City of Ridgecrest Franchise Agreement ARTICLE 3: TERM OF AGREEMENT
Section 3.1: Term of Agreement
The Term of this Agreement is from the Agreement Date of ____________, through December 31, 2031, unless earlier terminated pursuant to Section 3.3 hereof. The Agreement may be extended in accordance with this Section or terminated pursuant to Article 13.

Section 3.2: City’s Option to Extend
This Agreement may be extended without amendment for a period of no less than one (1) year and no more than five (5) additional years, upon mutual agreement of the Parties. If the City desires to extend the Agreement, the City shall provide Contractor with written notice of its desire to extend the Agreement at least one hundred eighty (180) days before the expiration of the Term. Such notice by the City shall specify the desired duration of the extension.

Section 3.3: Termination for Failure to Implement Services The Contractor has agreed herein, through either its own labor, equipment, and facilities or facilities provided by others, to implement various programs in order to expand the types of services provided to the City. Failure to implement the services described in this Agreement, upon the commencement of this Agreement for any reason, shall constitute an Event of Default in accordance with Section 13.1 hereof.

June 22, 2022 -8- City of Ridgecrest Franchise Agreement ARTICLE 4: SCOPE OF SERVICES
Contractor shall perform the Services described in this Article 4. This Article describes the requirements for the services to be provided including the types and sizes of Containers to be provided by Contractor, available Service Levels and frequencies, acceptable and prohibited materials, and any additional services to be provided to Customers who subscribe to that program. Failure to specifically require an act necessary to perform the service does not relieve Contractor of its obligation to perform such act.

Section 4.1: Single-Family Services
Contractor shall provide the services described in this Section to any Residential Customer within the City who subscribes with Contractor for such service.

A. Solid Waste Collection. Contractor shall Collect Solid Waste in Contractor-provided Carts from Single-Family Customers and Transport all Solid Waste to the Designated Disposal Facility for Disposal.

Containers: Carts
Container Sizes: 95-gallons (or similar size); 65-gallons (or similar size); and 35-gallons (or similar size)
Service Frequency: Up to one (1) time per week but not less than one (1) time every other week
Service Location: Curbside
Acceptable Materials: Solid Waste
Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste Additional Service: Contractor shall provide additional Solid Waste Carts to Single-Family Customers upon request and may charge the “Additional Solid Waste Cart” Rate approved by the City.

B. Recyclable Materials Collection. Contractor shall Collect Recyclable Materials in Contractorprovided Containers from Single-Family Customers and Transport all Recyclable Materials to the Approved Recyclable Materials Processing Facility for Processing.

Containers: Carts
Container Sizes: 95-gallons (or similar size)
Service Frequency: Up to one (1) time per week but not less than one (1) time every other week on the same day as Solid Waste Collection
Service Location: Curbside
Acceptable Materials: Recyclable Materials
Prohibited Materials: Solid Waste, Organic Materials, Excluded Waste Additional Service: Contractor shall provide one (1) additional Recyclable Materials Cart to Single-Family Customers upon request at no additional charge and may charge the “Additional Recycling Cart” Rate approved by the City for any Carts requested by a Single-Family Customer which exceeds two (2).

June 22, 2022 -9- City of Ridgecrest Franchise Agreement During the first two (2) Collection days of each year for each Single-Family Customer, Contractor shall Collect up to an additional five (5) bags of Recyclable Materials set out curbside at no additional cost to the Customer to accommodate additional Recyclable Materials generated during the holidays.

C. Organic Materials Collection. Contractor shall Collect Organic Materials in Contractor-provided Containers from all Single-Family Customers and Transport all Organic Materials to the Approved Organic Materials Processing Facility for Processing, at no additional cost to Customer.

Containers: Cart
Container Sizes: 35-gallon (default size); 64-gallon (or similar sizes) Service Frequency: At least one (1) time per week.

Service Location: Curbside
Acceptable Materials: Organic Materials
Prohibited Materials: Solid Waste, Recyclable Materials, Excluded Waste Additional Service: Contractor shall provide one (1) additional Organic Waste Cart to SingleFamily Customers upon request at no additional charge and may charge the “Additional Organic Materials Cart” Rate approved by the City for any Carts requested by a Residential Customer that exceeds two (2).

During the first two (2) Collection days of each year for each Single-Family Customer, Contractor shall Collect up to an additional five (5) bags of Organic Materials set out curbside at no additional cost to the Customer to accommodate additional Organic Waste generated during the holidays.

Section 4.2: Commercial and Multi-Family Services
Contractor shall provide the services described in this Section to all Commercial and Multi-Family Customers who subscribe with Contractor for such service.

A. Solid Waste Collection. Contractor shall Collect Solid Waste in Contractor-provided Containers not less than one (1) time per week from Commercial or Multi-Family Customers and Transport all Solid Waste to the Designated Disposal Facility for Disposal.

Containers: Carts, Bins, Drop Boxes, Compactors
Container Sizes: 95-gallon Carts (or similar size);

1.5-, 3-, 4-, and 6- cubic yard Bins; and,
Drop Boxes or Compactors (as requested by Customer)
Service Frequency: Up to five (5) times per week but not less than one (1) time every other week, as requested by Customer
Service Location: Curbside; or other Customer-selected service location at the Premises (push/pull charges may apply if Container is not immediately accessible by the Collection Vehicle).

Acceptable Materials: Solid Waste
June 22, 2022 -10- City of Ridgecrest Franchise Agreement Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste Additional Service: Upon Customer request, and to accommodate periodic additional service needs, Contractor shall provide Collection Service at a greater frequency than the Customer’s regularly scheduled service, up to the maximum service frequency and Contractor may charge the appropriate Rate for the higher service frequency.

Contractor shall provide a Bin exchange to any Commercial or MultiFamily Customer for cleaning and maintenance one (1) time each year, upon Customer request.

Other Requirements: Contractor shall, at Customer’s request and for an additional charge, open and close gates, push and/or pull Containers, lock and unlock Containers, or perform other services as reasonably necessary to access and empty Containers.

B. Recyclable Materials Collection. Contractor shall Collect Recyclable Materials in Contractorprovided Containers not less than one (1) time every other week and, when appropriate based on the volume of Recyclable Materials generated, up to one (1) time per week from Commercial and Multi-Family Customers; and Transport all Recyclable Materials to the Approved Recyclable Materials Processing Facility for Processing.

Containers: Carts, Bins, Drop Boxes, Compactors
Container Sizes: 95-gallon Carts (or similar size);

1.5-, 3-, 4-, and 6- cubic yard Bins; and,
Drop Boxes or Compactors (as requested by Customer)
Service Frequency: Up to one (1) time per week but not less than one (1) time every other week, as requested by Customer
Service Location: Curbside or other Customer-selected service location at the Premises (push/pull charges may apply if Container is not immediately accessible by the Collection Vehicle).

Acceptable Materials: Recyclable Materials
Prohibited Materials: Solid Waste, Organic Materials, Excluded Waste Additional Service: Upon Customer request and to accommodate periodic additional service needs, Contractor shall provide Collection Service at a greater frequency than the Customer’s regularly scheduled service, up to the maximum Service Level and Contractor may charge the appropriate Rate for the higher Service Level.

Other Requirements: Contractor shall, at Customer’s request and for an additional charge, open and close gates, push and/or pull Containers, lock and unlock Containers.

Contractor shall provide Recyclable Materials Collection to Commercial and Multi-Family Customers.

C. Organic Materials Collection. Contractor shall Collect Organic Materials in Contractor-provided Containers and Transport all Organic Materials to the Approved Organic Materials Processing Facility for Processing, at no additional cost to Customer.

June 22, 2022 -11- City of Ridgecrest Franchise Agreement Containers: Carts
Container Sizes: 64-gallon (default size); 35-gallon (or similar sizes) Service Frequency: One (1) time per week.

Service Location: Curbside or other Customer-selected service location at the Premises (push/pull charges may apply if Container is not immediately accessible by the Collection Vehicle).

Acceptable Materials: Organic Materials
Prohibited Materials: Solid Waste, Recyclable Materials, Excluded Waste Additional Service: Upon Customer request and to accommodate additional service needs, Contractor shall provide additional Carts or Collection Service at a greater frequency than the Customer’s regularly scheduled service, and Contractor may charge the appropriate Rate for the higher Service Level.

Other Requirements: Contractor shall, at Customer’s request and for an additional charge, open and close gates, push and/or pull Containers, lock and unlock Containers.

Contractor shall provide Organic Materials Collection service to all Commercial and Multi-Family Customers.

Section 4.3: Collection Service Operating Requirements
A. Regular Hours of Service. The Contractor shall schedule no Collections from any Premises on any day earlier than 6:00 a.m. or later than 6:00 p.m. provided, however, that the City may, at its sole discretion, change the Collection time as required by the needs of the Customers or the Contractor.

B. Emergency Service. Collections of Solid Waste necessitated by an emergency that the City Contract Manager determines threatens the public health and safety within the City will be made by the Contractor at the direction of the City Contract Manager. Such Emergency Services may be required outside of the regular Collection hours and schedule. If the City requests the Contractor to provide Emergency Services, the Contractor will use the Contractor's good faith best efforts to respond to such a request. The City shall reimburse the Contractor for all documented and reasonable costs incurred in order to comply with the provisions of this Section.

C. Noise Levels. The Contractor shall perform the Collection Services in a manner that minimizes the noise resulting from its equipment and personnel and shall ensure that it is in compliance with Applicable Law and the City’s Municipal Code.

D. Holidays. Collection of Solid Waste and Recyclable Materials shall not be required on the following legal holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day, except in case of emergency or as otherwise required by the City Contract Manager.

Whenever a regular Collection falls on such a holiday, the Collection shall be made on the following working day, and Collections throughout the City shall become current within one (1) week thereafter. Written notice of this policy shall be provided to Customers no more than thirty (30) days prior to such alternative service day. Collection shall not be rescheduled when the holiday falls on a Saturday or Sunday, unless otherwise agreed to by the City and the Contractor.

June 22, 2022 -12- City of Ridgecrest Franchise Agreement E. Preservation of Public Health and Safety. The Contractor shall at all times operate in such a manner as to protect the public health and safety. The Contractor agrees to establish procedures and educate its employees as to such procedures regarding proper methods for the protection of the general public including, but not limited to, arranging for the proper and legal Disposal of Discarded Materials encountered during its performance under this Agreement.

Section 4.4: Other Services
A. Bulky Waste Collection. Contractor shall offer Bulky Waste Collection Services to Single-Family Residential Customers on an on-call basis up to three (3) times per year (as requested by Customer) within five (5) Business Days after the Customer-requested service date at no additional charge to Customers. Contractor shall offer additional Service Levels and frequencies to Customers upon request for an additional charge. Contractor shall make reasonable efforts to schedule on-call Bulky Waste Collections on a day that is convenient to the Customer.

Contractor shall Collect Bulky Waste from Customers and Transport the Bulky Waste to the Designated Disposal Facility.

Containers: Not applicable
Service Level: Up to three (3) cubic yards of Solid Waste, Recyclable Materials, and EWaste OR up to one (1) Appliance or Bulky Waste Item for Single-Family Service Frequency: Up to three (3) times per year (as requested by Customer) Service Location: Curbside
Acceptable Materials: Solid Waste, Recyclable Materials, Bulky Waste, E-Waste, and U-Waste Prohibited Materials: Excluded Waste or any single item that exceeds two hundred (200) lbs. in weight
Additional Service: Contractor shall Collect additional items that exceed the above-described Service Level and may charge the “Extra Bulky Waste Collection” Rate approved by the City (as requested by Customer).

Other Requirements: The Contractor shall provide the service to the Customer within five (5) Business Days of the Customer’s requested service date, as mutually agreed upon by the Customer and Contractor.

Multi-Family Residential Customers may utilize the Bulky Waste Collection Service as stated in this section. In the event that more than one hundred seventy-four (174) Multi-Family Bulky Waste pickups are scheduled annually, Contractor and City Contract Manager will meet and confer to discuss a change in scope as described in Section 4.8, and should there be a change in scope, Contractor shall be entitled to additional compensation under Section 4.3 as a change in scope.

Contractor shall Transport any Collected Green Waste that is sourceseparated from other acceptable Bulky Waste to the Approved Organic Materials Processing Facility.

June 22, 2022 -13- City of Ridgecrest Franchise Agreement B. City Facilities and Events. Contractor shall Collect Discarded Materials from City facilities in the same manner as those services are provided to Commercial Customers. Contractor shall provide Collection Service to all City facilities identified in Exhibit G as well as any future facilities owned and operated by the City.

Contractor shall provide Discarded Materials services to City-sponsored public events held within the City to include, at a minimum, Carts and Roll-off Bins for the Collection of Solid Waste, Recyclable Materials, and Organic Materials, and staffing sufficient to ensure that such Carts are serviced frequently enough to prevent overflowing or spillage. Contractor shall provide these services at no cost to the City or Customers. Contractor shall submit a report on events as described in Exhibit D.

In addition to the services described above, the Contractor shall provide City Hall with technical assistance. This shall involve an assessment of its current Recycling and Organic Waste Service Levels. The Contractor shall supply City Hall with an adequate number of Recyclable Material and Organic Material Containers, educational materials, conduct a kick-off meeting, and provide training of custodial staff.

C. Holiday Trees. The Contractor shall Collect all holiday trees properly placed curbside by Residential Premises on the first two (2) regularly scheduled Collection days after December 25, or such other days as agreed by the City Contract Manager and the Contractor, free of any additional charge to any Customer. Contractor will Transport all Collected holiday trees to an Approved Organic Materials Processing Facility.

D. Illegal Dumping. Contractor shall, at all times, take reasonable measures to keep the roads and streets in the City free from litter from the operations of its Operating Assets. In addition, within the City, the Contractor shall, without charge to the City or Customers:

1. Cleanup all non-hazardous Bulky Waste from public areas, public roadways, or alleys when observed by Contractor’s personnel, or within one (1) Business Day of request by City; and,

2. Provide up to two (2) Roll-off Bins and Collection Service for each cleanup event, either by City-provided labor crews or City-coordinated volunteers, as requested by City.

Contractor shall work with the County to deliver such illegally dumped waste at the Designated Disposal Facility at no additional charge to the City or Contractor. In the event that the Designated Disposal Facility is required to charge for the receipt of such materials, the City and Contractor shall meet and confer regarding the cost of Disposal of material related to this program and Contractor shall be relieved of its requirement to Dispose of this material until arrangements can be made for payment of such charges.

E. Public Education and Outreach. The public education and outreach activities included in the scope of services provided by Contractor under this Agreement are described in Exhibit C5. Contractor shall produce and distribute public education and outreach materials upon City request and contribute any remaining funds in Contractor’s annual public education budget to the City to support the Contractor’s approved public education and outreach efforts.

1. Program Objectives. The Contractor shall be responsible for designing and conducting a public education and outreach program, and the Contractor shall be responsible for the production and distribution of all materials under this program in accordance with this Agreement. The Contractor’s public education and outreach strategy shall focus on improving Generator understanding of the benefits of and opportunities for source reduction, reuse, and landfill Disposal reduction and supporting compliance with Applicable Laws and June 22, 2022 -14- City of Ridgecrest Franchise Agreement regulations including, but not limited to, AB 341, AB 1826, and SB 1383. Examples of goals of the Contractor-provided public education and outreach program include, but are not limited to: (i) informing Generators about the services that are provided under this Agreement with specific focus on describing the methods and benefits of source reduction, reuse, Recycling, and Composting; (ii) instructing Generators on the proper method for placing materials in Containers for Collection and setting Containers out for Collection, with specific focus on minimizing contamination of Recyclable Materials and Organic Materials; (iii) clearly defining Excluded Waste and educating Generators about the hazards of such materials and their opportunities for proper handling; (iv) discouraging Generators from buying products if the product and its packaging are not readily reusable, Recyclable, or Compostable; (v) informing Generators subject to Food Recovery requirements under SB 1383 of their obligation to recover Edible Food and actions they can take to prevent the creation of Food Waste; (vi) encouraging the use of Compost and recovered Organic Waste products; and, (vii) encouraging Generators to purchase products/packaging made with Recycled content materials. The cumulative intended effect of these efforts is to reduce generation of Solid Waste and, ultimately, Disposal of Solid Waste by each Generator in the City, and Contractor agrees to support and not undermine or interfere with such efforts.

2. Contractor Public Education Requirements. Contractor agrees to print, produce, and distribute education materials and conduct outreach, as required by the City, based on the Contractor’s approved program.

Contractor acknowledges that they are part of a multi-Party effort to operate and educate the public about the regional integrated waste management system. Contractor shall cooperate and coordinate with the City Contract Manager on public education activities to minimize duplicative, inconsistent, or inappropriately timed education campaigns.

Contractor shall obtain approval from the City Contract Manager on all Contractor-provided advertising, promotional, or service-related materials used within the City before publication, distribution, and/or release. The City Contract Manager, in their sole discretion, shall have the right to deny the use of any materials or content or may request that Contractor include City identification and contact information on materials and Contractor’s approval of such requests shall not be unreasonably withheld.

F. WM Lamp Tracker Recycling for City Facilities. Contractor shall provide all City facilities with a fluorescent lighting Recycling program using a mail-back program through United Parcel Service, or some other Contractor-selected parcel service that approves the shipment of such material. Service shall be provided in various sizes and Container types to accommodate various sizes of lighting.

Container types and sizes shall include: four (4) foot, six (6) foot, and eight (8) foot straight tubes, compact fluorescent bulbs, high intensity discharge (metal halide or sodium), ultraviolet lighting, and “U-bent” lighting. Contractor shall offer this service to the City at a not to exceed annual dollar value of two thousand dollars ($2,000.00), which shall be adjusted annually by the same percentage as Rates that are charged to Customers.

G. Sharps Collection Program. Contractor shall provide any Residential Customer with a sharps home delivery program, upon request. Contractor shall deliver an approved Container to the requesting Residential Customer’s home within one (1) week of request. Delivery of the Container shall also include Recycling awareness materials. To ensure maximum Customer convenience, the Collection of sharps Containers will be administered through a one and four tenths (1.4) quart, postage paid, June 22, 2022 -15- City of Ridgecrest Franchise Agreement Container approved by the United States Postal Service (or other parcel service) for shipment of such material. Customers using the mail-based service will receive one (1) sharps Container/mailing kit per calendar year at no charge. Additional sharps Containers/mailing kits will be available for a fee. Outreach efforts shall include advertising on City-specific website, bill inserts, and Contractor’s community education and outreach activities.

H. Senior Sharps Event. To keep sharps, lancets, needles, and other medications out of the waste stream, Contractor shall host an annual “Sharps Round-Up” to be held at a local senior center in order that residents will be able to drop off used sharps and learn about the sharps program at no extra charge. The schedule for each drop-off event shall focus on convenience to senior citizens, shall allow drop-off for a minimum of four (4) hours per event, and shall be approved by the City Contract Manager.

I. Community Drop Off Battery Recycling Program. Contractor shall provide the City with postagepaid one and one quarter (1.25) and three and one half (3.5) gallon buckets for alkaline-nickel batteries (Alkaline, Carbon-Zinc, NiCad, NiMH, Silver Oxide, and Mercury) and postage-paid five (5) gallon buckets for lead-acid batteries, upon request by the City. Buckets shall be provided for up to four (4) select drop off locations, which will be designated by the City Contract Manager and may include, but shall not be limited to, such locations as the library, City Hall, or senior center. Residents may drop off their batteries at no charge. City shall be responsible for mailing the full buckets to the Recycling facility and Contractor shall, within five (5) Business Days,supply a replacement container.

Contractor shall offer this service to the City at a not to exceed annual dollar value of two thousand dollars ($2,000), which shall be adjusted annually by the same percentage as the Rates that are charged to Customers.

J. Multi-Family Recycling Toolkit. Contractor shall distribute Multi-Family Recycling program public education and outreach materials for both building managers and residents. Materials shall be bilingual, full color, and graphically based. Materials shall include, at a minimum: i) a “personal Recycling container” for each Multiple-Family Dwelling that requests one; ii) a single personal Food Scraps Kitchen pail as described in paragraph L below; iii) an introductory letter about the new Recycling program; iv) a guide for the property manager with information on how to manage a Multi-Family Recycling program; v) door hangers; vi) Recycling Container labels; and, vii) workshops at community outreach events. Contractor shall contact each individual property manager during the first six (6) months of this Agreement to introduce the program, provide the Multi-Family Recycling toolkit, and determine the best Recycling program for each Customer.

K. Kitchen Pails. Prior to the commencement of Organic Materials Collection service, Contractor shall provide each Single-Family and Multi-Family Customer a single kitchen pail designed to contain Food Scraps prior to placement in the Customer’s Organic Materials. Contractor will be responsible for distribution of kitchen pails to Single-Family and Multi-Family Customers.

L. Mini Recycling and Drop off Facility. Contractor shall host a Recyclable Materials drop-off facility at the Contractor’s corporate yard, or other location agreed-upon by the Contractor and City Contract Manager, at no additional charge to the City. The Contractor shall provide Recyclable Materials Bins at the drop-off facility in a number and size adequate to prevent overflowing of material deposited therein. The drop-off facility shall accept all of the Recyclable Materials accepted in the Commercial Recyclable Materials program. Contractor shall also provide a Bin for Organic Materials at the dropoff facility. Contractor shall work with the City Contract Manager and the County to ensure that Organic Material Collected from the drop-off facility is Diverted to the extent practical.

June 22, 2022 -16- City of Ridgecrest Franchise Agreement M. Disaster Preparedness and Emergency Services Planning. In the event of an emergency, disaster, or service interruption of any kind, the Contractor shall utilize its disaster plan and shall use reasonable efforts to provide the City with adequate Emergency Services including, but not limited to, Drop Boxes of appropriate size and number, as requested by the City. The Contractor shall additionally follow its disaster plan to be as prepared as possible in order to minimize down time and expedite reestablishing service to Customers. A copy of this plan shall be available to the City Contract Manager upon request.

N. Waivers. The City may grant waivers described in this Section to Commercial or Multi-Family Generators that impact the scope of Contractor’s provision of service for those Customers; provided, the Generator shall continue to subscribe with Contractor for franchised Collection Services to the extent such services are not waived by the City. Waivers issued shall be subject to compliance with SB 1383 requirements, pursuant to 14 CCR Section 18984.11, and/or other requirements specified by the City.

1. De Minimis Waivers. The City may waive a Multi-Family’s, Commercial Business’, or its Property Owner’s obligation to comply with some or all of the Recyclable Materials and Organic Materials requirements set forth in this Agreement, SB 1383 Regulations, and Section 13-28 of the City Code if the Multi-Family, Commercial Business, or its Property Owner provides documentation, or the City has evidence demonstrating, one of the following de minimis conditions:
(a) The Multi-Family’s or Commercial Business’ total Solid Waste Collection Service is two (2) cubic yards or more per week, and Organic Materials subject to Collection comprises less than twenty (20) gallons per week, per applicable Container, of the Multi-Family’s or Commercial Business’ total waste; or,
(b) The Multi-Family’s or Commercial Business’ total Solid Waste Collection Service is less than two (2) cubic yards per week, and Organic Materials subject to Collection comprises less than ten (10) gallons per week, per applicable Container, of the Multi-Family’s or Commercial Business’ total waste.

2. Space Constraint. The City may waive a Multi-Family’s, Commercial Business’, or its Property Owner’s obligation to comply with some or all of the Source Separated Recyclable Materials or Organic Materials Collection Service requirements set forth in this Agreement, SB 1383 Regulations, and City Code Section 13-28 if the Multi-Family, Commercial Business, or its Property Owner provides documentation, or the City has evidence from its staff or the Contractor demonstrating that the Premises lacks adequate space for all necessary Containers.

3. Collection Frequency. The City may allow the Contractor to provide Collection of Recyclable Materials every fourteen (14) days, rather than once per week, for Customers that have been granted a Collection frequency waiver by the City.

4. Waiver Requests. Generators may submit requests for de minimis waivers, physical space waivers, or Collection frequency waivers to the Contractor. If a Generator submits a request for a waiver to the Contractor, the Contractor shall refer the Generator to the City. Upon request of the City the Contractor shall support the City in the waiver review process by providing requested Customer information that Contractor is required to keep or maintain pursuant to this Agreement. If the City grants a waiver to a Generator, the City shall notify the Contractor and Contractor shall update the Customer’s information and Service Level in accordance with Exhibit D.

June 22, 2022 -17- City of Ridgecrest Franchise Agreement O. Contamination Monitoring Program. Contractor shall assist in minimizing contamination by helping to educate Customers on acceptable and non-acceptable materials, by monitoring the contents of Collection Containers, and by refusing to Collect Containers with visible Prohibited Container Contaminants as provided in this Section.

1. Hauler Route Reviews, Methodology and Frequency. Contractor shall, at its sole expense, conduct four (4) quarterly hauler Route reviews each calendar year for Prohibited Container Contaminants in Containers in a manner that is deemed safe by the Contractor, is approved by the City, and is conducted in a manner that results in all hauler Routes being reviewed annually.
(a) Number of Containers to Review. Contractor shall visually inspect the contents of at least twenty-five percent (25%) of Containers, which may include mechanical inspection methods such as camera, per hauler Route to inspect for Prohibited Container Contaminants, for each and every hauler Route. The Containers shall be randomly selected by a method approved by the City.
(b) Route Review Methodology. Contractor shall develop a hauler Route review methodology that complies with the requirements of 14 CCR Section 18984.5(b) and this Section, as shown in Exhibit C8.
(c) Modifications. The City may request, and Contractor shall accept, modifications to the schedule to permit observation by the City or its designee. In addition, Contractor shall provide email notice to the City no less than ten (10) Business Days prior to each scheduled hauler Route review that includes the specific location(s) and time(s), which shall be within the City’s normal business hours for their review. (d) Documentation and Assessment. Contractor shall document Prohibited Container Contaminants with still pictures or video and shall notify the Customer in accordance with Section 4.4.O.2. Contractor may, at its discretion, Collect the Container as Recyclable Materials, Organic Materials, or as Solid Waste. (e) Schedule. Within six (6) months of the Effective Date, and annually thereafter, the Parties shall meet and confer to review the contamination program as described in this Section, including assessing the effectiveness of the program in deterring Generators from including Prohibited Container Contaminants in Discarded Materials Containers set out for Collection and determining whether the education and outreach plan in Exhibit C5 needs to be modified to decrease contamination.

2. Contamination Notification. Upon identification of Prohibited Container Contaminants in a Customer’s Container during the quarterly hauler Route review, Contractor shall provide the Customer with a Contamination Notice.
(a) Contamination Notices. Upon identification of Excluded Waste or Prohibited Container Contaminants in a Container (in excess of 10%), Contractor must notify the Customer by phone, text, U.S. mail, e-mail, other electronic means, or in person (which may be a Container tag), setting forth the Generator, date, description, and image or video in the email.
(b) The Contamination Notice shall, at a minimum:
i. Inform the Customer of the contamination;
June 22, 2022 -18- City of Ridgecrest Franchise Agreement ii. Include the date and time the notice was left or issued; iii. includes photographic evidence of the violation(s); iv. a description of the Discarded Materials that are appropriate for Collection in the Container;
v. the fact the Container required special handling because of the observed presence of Prohibited Container Contaminants;
vi. a phone number to contact Contractor to obtain additional information and/or receive responses to questions the Customer may have.

3. Disposal of Contaminated Materials. Contractor may Transport contaminated materials observed in Customer’s Organic Materials Container or Recyclable Materials Container to the Approved Facility for Disposal, provided Contractor complies with the noticing requirements in this Section.

4. Recordkeeping and Reporting Requirements. Contractor shall record each event of identification of Prohibited Container Contaminants in a written log or in the on-board computer system including, but not limited to: date, time, Customer’s address, type of Container, and photographic evidence. Contractor shall maintain records and report to the City on contamination monitoring activities and actions taken, in accordance with Exhibit D.

P. SB 1383 Monitoring and Inspections. Contractor shall perform Customer compliance reviews described in this Section annually, unless otherwise noted.

1. Commercial Generator Compliance Reviews. Upon City request, Contractor shall assist the City with completing its annual compliance review of all Multi-Family and Commercial Customers that generate two (2) cubic yards or more per week of Solid Waste, including Organic Materials, as set forth in 14 CCR Section 18995.1(a)(1)(A) and investigations of Complaints, as set forth in 14 CCR Section 18995.1(a)(3). Such compliance reviews may include determining compliance with: (i) Generator requirements under this Agreement; and (ii) if applicable for the Customer, Self-Hauling requirements per 14 CCR Section 18988.3, including whether a Commercial Premise is complying through back-hauling Organic Materials. Any such compliance review shall mean a “desk” review of records to determine Customers’ compliance with 14 CCR Section 18984.9(a) and the above requirements and does not require on-site observation of service.

2. Annual Hauler Route Review. Annually, the Contractor shall conduct annual hauler Route reviews to determine Generator compliance with SB 1383, and these reviews may be performed concurrently with the contamination monitoring hauler Route reviews detailed in Section 4.4.O.

3. Compliance Review Process. Contractor shall conduct inspections of entities described in this Section at a minimum of once per calendar year, or as directed by City, to adequately determine the entities’ overall compliance with SB 1383. City reserves the right to require additional inspections if the City determines that the number of inspections conducted by the Contractor is insufficient. City may require the Contractor to prioritize inspections of entities that the City determines are more likely to be out of compliance.

June 22, 2022 -19- City of Ridgecrest Franchise Agreement i. Non-Compliant Entities. From the Commencement Date through December 31, 2023, when compliance reviews are performed by Contractor pursuant to this Section, Contractor shall provide educational materials approved by City in accordance with this Agreement, in response to violations. Contractor shall provide these educational materials to non-compliant Customers and Generators within two (2) Business Days of determination of non-compliance or immediately upon determination of noncompliance if such non-compliance is determined during an inspection or hauler Route review. Contractor shall document the non-compliant Customers and Generators and the date and type of education materials provided and report such information to the City in accordance with Exhibit D. Beginning January 1, 2024, the Contractor shall document non-compliant Customers and Generators determined through Contractor’s compliance reviews pursuant to this Section, and shall report all such non-compliant Customers and Generators with SB 1383 violations to the City in accordance with Exhibit D. The City shall be responsible for subsequent enforcement action against the Generator or Customer.
ii. Documentation of Inspection Actions. The Contractor shall generate a written or electronic record and maintain documentation for each inspection, hauler Route review, and compliance review conducted in accordance with this Agreement.

4. Delegation Options. This section in no way precludes the City or its designee from performing the inspections specified in this Section in lieu of or in addition to the Contractor’s inspections.

Contractor shall support any inspections or reviews conducted by the City or its designee through actions pursuant to this Section including, but not limited to, providing information or data requested by the City or its designee.

Q. Edible Food Recovery Support
Contractor shall assist the City in identifying all Commercial Customers that meet the definition of Tier One and Tier Two Commercial Edible Food Generators and provide a list of such Customers to the City, which shall include: Customer name; service address; contact information; Tier One or Tier Two classification; and, type of business (as it relates to the Tier One and Tier Two Commercial Edible Food Generator definitions).

R. Procurement of Recovered Organic Waste Products

1. Renewable Natural Gas (RNG) Vehicles. Under this Agreement and upon such time as RNG is commercially available for use by Contractor in the City, the Contractor shall make a best effort for all Collection Vehicles to be powered by RNG that is derived from Organic Waste that has been Diverted from a landfill and Processed at an in-vessel digestion facility that is permitted or otherwise authorized by Title 14 of CCR to recover Organic Waste or from a POTW that meets the requirements of 14 CCR Section 18993.1(h). Upon City’s request, and once RNG is commercially available for use by Contractor in the City, Contractor shall obtain and provide the City with a written certification by an authorized representative of the POTW that the in-vessel digestion facility produces the RNG consistent with the requirements of 14 CCR Section 18993.1(h). Contractor shall maintain records of the amount of RNG procured on behalf of the City and shall report this information in accordance with Exhibit D. Contractor shall agree to the City’sright to report this RNG usage toward the City’sfulfilment of its annual recovered Organic Waste product procurement target in accordance with 14 CCR Section 18993.1.

June 22, 2022 -20- City of Ridgecrest Franchise Agreement S. Residential Diaper Drop-Off Pilot. Contractor shall provide a Container at its corporation yard for Residential diaper drop off to be run as a twelve (12) month pilot program in conjunction with the every-other-week Residential Solid Waste and Recyclable Materials Collection to accommodate Residents who may have nuisance non-Organic Solid Waste, such as diapers and animal waste.

Contractor will establish drop off Container and signage to discourage illegal dumping or non-diaper Solid Waste. Promotion of the program shall be included in Contractor’s education and outreach materials. Contractor will monitor the participation rate of the program and report to City pilot outcomes as described in Exhibit D. Six (6) and twelve (12) months after implementation, City and Contractor shall meet to discuss if the program shall continue or if improvements need to be made.

Continuation of the program is contingent on the every -other -week Solid Waste Collection described in Section 4.1.A.

Section 4.5: Standard of Performance
Contractor shall at all times comply with Applicable Laws and provide service in a manner that is safe to the public and the Contractor’s employees. Except to the extent that a higher performance standard is specified in this Agreement, Contractor shall perform services in accordance with Solid Waste, Recyclable Materials, and Organic Materials management practices common to California.

A. Clean Up: Avoiding Damage to Property. The Contractor shall use due care to prevent spills or leaks of material placed for Collection. If any materials are spilled or leaked during Collection or Transportation, the Contractor shall clean up all spills or leaks before leaving the site of the spill.

The Contractor shall close all gates after making Collections and shall not do damage to or trespass upon private or public property.

B. Hazardous Waste. The Contractor acknowledges its obligation to arrange for the Disposal of Hazardous Waste that inadvertently comes into its possession or control. The Contractor agrees to establish all reasonable practices for the screening and elimination of Hazardous Waste from the waste stream including, but not limited to, the training of personnel and the revision of such practices as necessary to reflect prudent waste screening considered to be good practice in the Solid Waste Collection and Disposal industry at the time.

If the Contractor finds what reasonably appears to be discarded Hazardous Waste or Household Hazardous Waste at a Designated Collection Location, the Contractor, in addition to the procedure outlined in the previous paragraph, shall either:

1. Notify the Owner or Generator, if such can be determined, that the Contractor may not lawfully Collect such waste and leave a tag specifying the nearest location available for such appropriate Disposal; or,

2. Follow such other procedure as the City Contract Manager shall approve.

In the event of a threat to the public health and safety, the Contractor shall immediately contact the local fire department. The Contractor shall notify the City Contract Manager of such incident within one (1) day.

C. Employees:

1. Uniform. The Contractor shall take all steps necessary to ensure that its employees performing Collection Services conduct themselves in a safe, proper, and workmanlike manner, and that they work as quietly as possible. All such employees shall at all times of employment be dressed in uniforms with suitable identification.

June 22, 2022 -21- City of Ridgecrest Franchise Agreement

2. Driver Qualifications. All drivers must have in effect a valid license, of the appropriate class, issued by the California Department of Motor Vehicles. Contractor shall use the Class II California Department of Motor Vehicles employer “Pull Notice Program” to monitor its drivers for safety.

3. Safety Training. Contractor shall provide suitable operational and safety training for all of its employees who operate Collection Vehicles or equipment. Contractor shall train its employees involved in Collection to identify, and not to Collect, Excluded Waste. Upon the City Contract Manager’s request, Contractor shall provide a copy of its safety policy and safety training program, the name of its safety officer, and the frequency of its trainings.

D. Improper Loading of Containers. The Contractor may decline to Collect any Discarded Materials that are loaded or left for Collection in any manner that would prohibit its safe Collection.

E. Record of Non-Collection. When any Discarded Materials placed for Collection are not Collected by the Contractor, the Contractor shall leave a tag or notify the Customer by telephone, e-mail, text or other electronic means as requested by the Customer listing the reasons for such non-Collection and a telephone number at which the Customer may contact the Contractor. This information shall either be in writing or by means of a checked box on a form. The Contractor shall maintain, at its place of business, a log book listing all such circumstances in which Collection is denied. The log book shall contain the names and/or addresses of the Collection Premisesinvolved, the date ofsuch tagging, the reason for non-Collection, and the date and manner of disposition of each case. The log book shall be kept so that it may be conveniently inspected by the City Contract Manager upon request. The log relating to any particular tagging shall be retained for a period of one (1) year following such tagging.

As an alternative to non-Collection, where the basis for the non-Collection notice is not resolved by the Customer and where photographic evidence is provided by the Contractor, Contractor may complete the Collection and charge the Customer at the “extra can or bag of Solid Waste” Rate, as specified in Exhibit C3, equivalent to the Customer’s Container size to compensate it for the costs of extra pickups and/or sorting of materials.

F. Fees and Gratuities. The Contractor shall not, nor shall it permit any agent, employee, or Subcontractor employed by it, to request, solicit, or demand, either directly or indirectly, any compensation for the Collection of Discarded Materials or other Collection Services, except such compensation as is specifically provided for herein as approved by the City.

G. Compliance with Applicable Law. The Contractor shall comply with all Applicable Law relating to any aspect of the Collection Services or this Agreement, shall obtain and maintain all legal entitlements required for the Operating Assets and the Collection Services, shall comply with all valid acts, rules, regulations, orders, and directions of any Governmental Body applicable to the Operating Assets and the Collection Services provided hereunder, and shall pay all taxes in connection therewith. The Contractor shall keep all records indicating compliance required by the Federal Immigration and Control Act of 1986 and shall make such records available for inspection by the City Contract Manager upon request.

H. Taxes and Utility Charges. The Contractor shall pay all taxes lawfully levied or assessed upon, or in respect of the Operating Assets or the Collection Services, or upon any part thereof or upon any revenues of the Contractor there from, and shall provide and pay the cost of all utilities necessary for the operation of the Operating Assets and the provision of the Collection Services, when the same shall become due.

June 22, 2022 -22- City of Ridgecrest Franchise Agreement I. Review of bi-weekly Solid Waste and Recyclable Materials Collection. The Contractor shall monitor the participation and contamination levels of the bi-weekly Solid Waste and Recyclable Materials Collection and weekly Organic Materials Collection program. Contractor shall track and report on the number of Customer questions and Complaints as part of the program implementation, and utilize the contamination monitoring program outlined in Section 4.4.O and Exhibit C8 to assess the program. Contractor’s initial response to Complaints and inquiries shall be to provide additional education and outreach materials to Customers. City and Contractor shall meet six (6) and twelve (12) months after program implementation, and annually thereafter, to assess the bi-weekly Collection program and implement any necessary changes. In the event the City and Contractor mutually agree that Collection for all Discarded Materials needs to revert back to weekly Collection, Contractor and City shall use the process described in Section 4.8 for a change in scope.

Section 4.6: Collection Locations
A. General. The Contractor shall be responsible for the Collection of all Discarded Materials placed for Collection in a legal manner. The Contractor shall immediately notify the City Contract Manager of any condition at or near any Designated Collection Location that creates a safety hazard or accessibility problem. Upon authorization by the City Contract Manager, the Contractor shall discontinue Collection for any such location until the safety hazard or accessibility problem is corrected. Contractor may charge the “Extra Pick-up” Rate in the amount set forth in Exhibit C3 where its Collection Vehicle is required to return to the service location to complete Collection due to a safety hazard or access restriction caused by the Customer and documented with photographic evidence.

B. Enclosures. Where the Designated Collection Location is within an enclosure constructed pursuant to the requirements of any public agency having jurisdiction over the design, construction, and location of such enclosures, the Contractor shall be responsible for the removal and replacement of all Containers placed therein. The Contractor shall use sufficient care in the handling of such Containers so as to prevent any damage to the enclosure, the enclosure doors, and adjacent facilities, or improvements. The Contractor shall promptly repair, at its own expense, any such enclosure, adjacent facilities, or improvements damaged by the Contractor. The City shall resolve any disputes relating to such damage, and the Contractor agrees to abide by such decision.

Section 4.7: Other Wastes
The Parties acknowledge that this Agreement is granted only with respect to the Collection Services and does not include the Collection, Transportation, Processing, or Disposal of Hazardous Waste, Medical Waste, and Liquid Waste. If the Contractor elects to provide any such services with respect to Hazardous Waste, Infectious Waste, or any other waste regulated by the Department of Toxic Substances Control, such services shall be performed by a separate legal entity separately insured and liable, and according to Applicable Law. The Parties further acknowledge that the provision by the Contractor of any services not specifically included within the Agreement are excluded from the protection of this Agreement and may be the subject of competition among any and all legally authorized haulers.

Section 4.8: Changes in Scope of Collection Services
Pursuant to the Municipal Code, the City may modify the scope of services performed by the Contractor pursuant to this Agreement.

June 22, 2022 -23- City of Ridgecrest Franchise Agreement The City shall provide written notice of any requested modification to the scope of services provided by Contractor pursuant to this Agreement, and the Contractor shall provide the City with any information requested by the City in connection with the proposed changes. The Contractor shall, within sixty (60) days after receipt of such notice by the City, respond to the City's order. The Contractor may seek additional compensation in the event the scope of services is modified in accordance with this Section

4.8. The need for and amount of additional compensation shall be calculated following a change in scope Rate review pursuant to Section 11.3.

Section 4.9: Billing
Contractor shall bill all Customers and be solely responsible for collecting billings at Rates set in accordance with Article 11. Billing shall be performed on the basis of services rendered and this Agreement shall create no obligation on the part of any Person on the sole basis of the ownership of property.

Contractor’s website shall provide Customers with the ability to pay their bills through an electronic check or credit card and include the ability for Customer billings to be automatically charged on a recurring basis.

Contractor shall prepare, mail, and collect bills from Customers who decline to use such internet-based billing system.

Contractor shall maintain copies of all billings and receipts, each in chronological order, for the Term of this Agreement, for inspection and verification by the City Contract Manager at any reasonable time but in no case more than thirty (30) calendar days after receiving a request to do so.

The Contractor shall have the right, but not the obligation, to provide additional Special Services requested by any Customer, which are directly related or ancillary to any of the other Collection Services authorized hereunder. The nature and terms of any such Special Services shall be negotiated with the Customer and compensation therefore shall be paid by the requesting Customer. In the event that Customer and Contractor cannot agree on a Rate, the Contractor shall provide the City with information supporting the level of Rate proposed by the Contractor. Upon receipt and review of such information, the City may set the Rate, which shall become binding on the Contractor in the event Contractor agrees to provide the Special Service at the set Rate.

Contractor shall be responsible for collection of payment from Customers with past due accounts (“bad debt”). Contractor shall make reasonable efforts to obtain payment from delinquent accounts through issuance of late payment notices, telephone requests for payments, and assistance from collection agencies.

Invoices are due thirty (30) days following the date of the invoice. The date of the invoice shall not be prior to the first day of the service period for the billing. In the event that any account becomes more than forty-five (45) calendar days past due, Contractor shall notify such Customer of the delinquency via written correspondence and telephone contact. Should any account become more than ninety (90) calendar days past due, Contractor shall provide notice to the Customer via written correspondence, with a copy to the City Contract Manager, that service may be discontinued if the account becomes more than one hundred twenty (120) calendar days past due. Should any account become more than one hundred twenty (120) calendar days past due, Contractor may discontinue providing service to the Customer. No less than seven (7) calendar days prior to discontinuing service to a Customer, Contractor shall notify the City Contract Manager of the address, Service Level, service frequency, and delinquent billing amount. Contractor may withhold service from a delinquent account until past delinquencies are paid in full. Upon restoring service to a previously delinquent account, Contractor may require a deposit from the Customer not to exceed one (1) month’s billing at the Customer’s Service Level. Contractor may charge interest at a rate of one June 22, 2022 -24- City of Ridgecrest Franchise Agreement and one-half percent (1.5%), or the highest rate of interest allowable under law, whichever is less, on account balances that are more than forty-five (45) calendar days past due.

Section 4.10: Transition to Next Contractor at End of Agreement If applicable, before expiration or earlier termination of this Agreement, Contractor will take direction from the City and cooperate with the subsequent contractor to assist in a timely and orderly transition of services from Contractor to subsequent contractor. In response to the City’s direction, Contractor shall provide then-current Route lists that identify each Customer on the Route, the Service Level (number of Containers, Container sizes, frequency of Collection, scheduled Collection day), any special Collection notes, and detailed then-current Customer account and billing information to the City. Contractor may, but shall not be obliged to, sell Collection Vehicles, equipment, or facilities to the next contractor. Nothing in this Section 4.10 shall be deemed to require Contractor to provide to any subsequent contractor any confidential information, proprietary information, or trade secrets.

June 22, 2022 -25- City of Ridgecrest Franchise Agreement ARTICLE 5: PROCESSING AND TRANSFER
Section 5.1: Processing and Transfer Arrangements
The Contractor shall make its own Processing and Transfer arrangements with Approved Processing Facilities and the Designated Disposal Facility, so that such arrangements are in full compliance with Applicable Law. The City may order the Contractor to modify or terminate its Processing and/or Transfer arrangements if:

A. The City determines that such arrangements threaten public health or safety, or B. The City determines that the City is not adequately protected from liability for the activities of the Processing or Transfer entities, or
C. The City determines that the Diversion levels of the particular facility causes the City to be out of compliance with AB 939, SB 1383, or any other Applicable Laws., or D. The Contractor is Disposing of Recovered Materials in a manner or volume which does not result in Diversion credit to the City.

In the event the City directs the Contractor to modify or terminate Processing or Transfer arrangements, the City acknowledges that the Contractor shall nonetheless be entitled to recover, through the Rates to be charged and authorized to be imposed hereunder, the reasonable costs of the Contractor incurred in implementing such Processing or Transfer arrangements (determined in accordance with generally accepted accounting principles).

Section 5.2: Processing Facility Temporary Equipment or Operational Failure Waiver
A. Notification to the City. The Contractor, or their Subcontractor (such as a facility operator), shall notify the City of any unforeseen operational restrictions that have been imposed upon an Approved Facility by a regulatory agency or any unforeseen equipment or operational failure that will prevent an Approved Processing Facility from Processing and recovering the relevant Discarded Materials at that facility for more than 48 hours. The Contractor or Subcontractor shall notify the City as soon as possible and no later than two (2) Business Days from the time of the incident. The notification shall include the following: (i) name of Approved Facility; (ii) the Recycling and Disposal Reporting System Number of the Approved Facility; (iii) date the Approved Facility became unable to Process the specific Discarded Materials; (iv) description of the operational restrictions that have been imposed upon the Approved Facility by a regulatory agency or unforeseen equipment failure or operational restriction that occurred; (v) the period of time the Contractor anticipates the temporary inability of the Approved Facility to Process Discarded Materials; and (vi) Contractor’s proposed action plan to deliver materials to an alternative Facility for Processing or Contractor’s request for a waiver to deliver materials to the Designated Disposal Facility.

B. Use of Alternative Facility or Waiver for Disposal of Materials. Upon notification by Contractor or Subcontractor of an Approved Facility’s inability to Process materials, the City shall evaluate the notification and determine if the City shall require Contractor to use an alternative facility or allow the Contractor to Transport the Discarded Materials to the Designated Disposal Facility for Disposal on a temporary basis for a reasonable period specified by the City. Upon City’s decision, the City shall notify the Contractor of its approval to use an alternative facility for Processing or to use the June 22, 2022 -26- City of Ridgecrest Franchise Agreement Designated Disposal Facility for Disposal, and the period of time that the City will allow the materials to be redirected to the alternative facility or Designated Disposal Facility. Pursuant to 14 CCR Section 18984.13, the approved Disposal period shall not exceed ninety (90) days from the date the Approved Facility’s Processing restriction or failure commenced except as otherwise allowed by CalRecycle. In such case, the Contractor must receive written permission from the City Contract Manager prior to depositing any Discarded Materials in a Landfill. Nothing in the foregoing shall supersede requirements imposed on the Contractor or the Approved Facility by the Local Enforcement Agency.

C. Quarantined Waste. If approved by the City, the Contractor may Dispose of specific types of Organic Materials that are subject to quarantine and meet the requirements described in 14 CCR Section 18984.13(d) for a period of time specified by the City or until City provides notice that the quarantine has been removed and directs Contractor to Transport the Organic Materials to the Approved Facility(ies) for such material.

In accordance with Exhibit D, the Contractor shall maintain records and submit reports regarding compliance agreements for quarantined Organic Materials that are Disposed of pursuant to this subsection.

D. Record Keeping and Reporting. Contractor shall maintain a record of any incidents at Contractor owned or operated Approved Facility(ies) and report this information to the City in accordance with Exhibit D.

Section 5.3: Materials Marketing
The Contractor shall be responsible for marketing Recyclable Materials and Organic Materials Collected in the City. Contractor’s marketing strategy shall make reasonable business efforts to promote the highest and best use of materials presented in the waste management hierarchy established by AB 939. Where practical and cost-effective, the marketing strategy should include use of local, regional, and domestic markets for Recyclable Materials and Organic Materials. Contractor shall make available to the City Contract Manager any and all documentation of the final disposition of marketed Recyclable Materials as well as certification that such materials have not been landfilled or incinerated.

Section 5.4: Title to Recovered Materials
As between the Parties, the Contractor has title to and liability for all Recovered Materials, and shall indemnify, defend, and hold harmless the City from any property damage, personal injury or other claimed damages suffered by any Person from exposure to or as a result of Processing any Recovered Materials or subsequent product made from Recovered Materials based on any theory of liability. The Contractor shall promptly notify the City of any claim by any Person arising out of the marketing, Disposal, or reuse of Recovered Materials.

June 22, 2022 -27- City of Ridgecrest Franchise Agreement ARTICLE 6: SOLID WASTE DISPOSAL
Section 6.1: Solid Waste Disposal
A. Disposal Generally. The Contractor shall Transport and Dispose of all Discarded Materials that it Collects but does not Divert from landfill Disposal at the Designated Disposal Facility in accordance with the requirements of Applicable Law, and shall comply with the requirements, rules, and regulations of the Owner or operator of the Designated Disposal Facility.

B. Designated Disposal Facilities. The City shall have the right during the Term of the Agreement to designate the Designated Disposal Facility, or multiple concurrent Designated Disposal Facilities, in its sole and absolute discretion. The initial Designated Disposal Facilities shall be any of the Kern County landfills as approved by the City. The City shall notify the Contractor in writing of any changes in or additions to the Designated Disposal Facility. City acknowledges that the Contractor shall nonetheless be entitled to recover, through the Rates to be charged and authorized to be imposed hereunder, the reasonable costs of the Contractor incurred as the result of a change in the Designated Disposal Facility.

C. Disposal Records. The Contractor shall keep and maintain such logs, records, manifest, bills of lading, or other documents as the City may deem to be necessary or appropriate to confirm compliance by the Contractor with this Agreement and shall retain all weight slips or other call information provided to the Contractor's drivers by the Owner or operator of the Designated Disposal Facility.

D. Failure to Transport to Designated Disposal Facility. The Contractor's failure to properly Transport, or cause to be Transported, Discarded Materials as described herein is an Event of Default as described in Section 13.1.A of this Agreement, unless the failure to Transport such Discarded Materials to the Designated Disposal Facility is the result of an Uncontrollable Circumstance or such waste has been Diverted by means of alternative technology allowing AB 939 or SB 1383 Diversion credit to the City; provided however, that any Residue from Processing or Diversion activities occurring within the County shall be Disposed at the Designated Disposal Facility.

E. Flow Control Covenant. The Contractor hereby waives any right that it may possess under Applicable Law to contest on any ground, constitutional, statutory, case law, administrative, or otherwise: (a) the right, power, or authority of the City to engage in the practice of legal Solid Waste "flow control" or to enter into or perform obligations under this Agreement; or, (b) the right, power, or authority of the City to deliver or cause the delivery of all Solid Waste Collected within the City to the Designated Disposal Facility in accordance with this Agreement.

Section 6.2: Gate and Bin Fees
To the extent that the Contractor Disposes or causes the Disposal of Non-Residential Waste at the Designated Disposal Facility, it shall pay the bin fees and/or gate fees required under County Ordinance No. G-8057, as may be amended from time to time, unless specifically exempted hereunder.

June 22, 2022 -28- City of Ridgecrest Franchise Agreement ARTICLE 7: DIVERSION PROGRAMS
Section 7.1: The Contractor's Responsibility for Implementation The Contractor will implement its 3rd Cart Implementation Plan (Exhibit C4) and Education and Outreach Plan (Exhibit C5) in a manner approved by the City Contract Manager. The requirements of and level of specificity contained within each of these exhibits may conflict or be redundant in some cases. Regardless of such inconsistencies, Contractor shall be obligated to comply with all of the requirements contained therein and in the case of any inconsistency, the City Contract Manager’s determination of those requirements that must be met shall be conclusive.

In the event that the State of California Diversion goals (in existence at the time this Agreement is effective) are increased, the Contractor will be obligated to amend the Education and Outreach Plan to the extent necessary to comply with the increased Diversion levels. After approval by the City, the Education and Outreach Plan will be revised and the Contractor will implement such revised Education and Outreach Plan. City acknowledges that the Contractor shall nonetheless be entitled to recover, through the process described in Section 11.3, the reasonable costs of the Contractor incurred as the result of implementation of the revised Education and Outreach Plan.

Section 7.2: Public Awareness
The Contractor agrees, at its own expense, to provide information to Customers as defined in Contractor's Education and Outreach Plan (Exhibit C5). Any reference to the City must be approved in advance by the City Contract Manager. To the extent reasonably possible, the Contractor shall accommodate the inclusion of any City-directed information on its regular billing statements at no cost to the City or the Customer, upon the request of the City Contract Manager. If the City requests the distribution of information on a topic other than that required for compliance with the Education and Outreach Plan in a form that cannot be printed or included with the Contractor's regular bill, the City and Contractor will share in the cost of printing and distribution.

Section 7.3: Termination for Failure to Implement Strategies Failure to implement any one of the programs listed in the Education and Outreach Plan (Exhibit C5) will be deemed an Event of Default unless Contractor can demonstrate to the satisfaction of the City Contract Manager that implementation of such programs is beyond the reasonable scope of their control despite their reasonable business efforts. For example, and not by way of limitation, it is beyond the reasonable scope of the Contractor’s control to affect ordinances adopted by the City Council.

June 22, 2022 -29- City of Ridgecrest Franchise Agreement ARTICLE 8: OPERATING ASSETS
Section 8.1: Operating Assets
A. Obligation to Provide. The Contractor shall acquire and maintain at its own cost and expense, Operating Assets that in number, nature, and capacity shall be sufficient to enable the Contractor to provide the Collection Services in accordance with the terms hereof and such assets shall be subject to inspection by the City at any time.

B. Vehicle and Equipment Identification. The Contractor's name, phone number, and Vehicle or equipment number shall be visibly displayed in letters not less than three (3) inches in height on both sides of its Vehicles or other Collection equipment used by the Contractor, as required by the Municipal Code.

C. Vehicle Specifications, Maintenance, and Appearance. All Vehicles shall be properly registered with the Department of Motor Vehicles of the State of California, shall be properly insured, shall be of a type approved by the City, shall be kept clean and in good repair, and shall be continuously maintained in a watertight condition. Vehicles used to Collect or Transport Solid Waste shall be kept covered at all times except when such material is actually being loaded or unloaded, or when the Vehicles are moving along a Collection Route in the course of Collection. All Vehicles shall carry a broom, shovel, and operable fire extinguisher. Collection Vehicles shall be washed at least once every seven (7) days and cleaned and painted as required to maintain a clean appearance. All Vehicles must be made available for inspection upon reasonable notice by the City Contract Manager.

D. Spillage. Any cover or screen shall be so constructed and used that Discarded Material shall not blow, fall, or leak out of the Vehicle onto the street. In the event of a spill, leak, or loss of payload during transit, the Contractor shall immediately arrange for the clean-up and Transportation of the payload to the appropriate Facility at the Contractor's sole cost and expense, shall pay any resulting fines, assessments, penalties, or damages resulting therefrom, and shall indemnify and hold harmless the City in accordance with the procedures provided in Section 12.1 hereof from all lossand-expense resulting therefrom.

E. Computer System Compatibility. The Contractor shall maintain records and data in an electronic format compatible with the versions of Microsoft Word and Excel currently in use by the City at any given time during the Term of this Agreement. The Contractor will, at its cost and expense, if requested by the City Contract Manager or CalRecycle, provide any reports or data required by this Agreement via email, on computer disc, or through other electronic format. Raw or printed data may not be submitted as a substitute to the Contractor's obligation to provide various reports under this Agreement.

Section 8.2: Operation and Maintenance of the Operating Assets The Contractor, at its cost and expense, shall at all times: 1) operate the Operating Assets properly and in a safe, sound, and economical manner; 2)shall maintain, preserve, and keep the Operating Assetsin good repair, working order, and condition; 3) shall staff the Operating Assets with the appropriate number of licensed employees consistent with good management practice; and, 4) shall make all necessary and proper repairs, replacements, and renewals, so that at all times the operation of the Operating Assets may be properly and advantageously conducted. The Contractor shall maintain the safety of the Operating June 22, 2022 -30- City of Ridgecrest Franchise Agreement Assets at a level consistent with Applicable Law, the Insurance Requirements, and prudent Solid Waste management practices.

Section 8.3: Containers
A. City Regulations. The City shall approve the number, type, size, and other specific physical requirements for Containers. The Contractor shall not be required to Collect Discarded Materials from Containers that have not been approved by the City.

B. General Requirements. The Contractor shall supply the Containers for each Customer free of charge upon inception of Collection Services. After emptying any Container, the Contractor shall replace the Container in an upright position at the place where such Container was placed for Collection.

The Contractor shall handle Containers in a manner so as to prevent damage or spillage, and shall not throw, drop, or otherwise mishandle Containers during or after emptying them. The Contractor shall repair or replace, at its own expense and within five (5) days, any Container that is damaged by the Contractor and that is no longer serviceable (e.g., broken wheels, cracked lid, broken axle, cracked or leaking body)
C. Containers for Residential Customers. The Contractor shall supply all Containers required for the services provided under this Agreement. The Containers shall be sturdy, water tight, and equipped with heavy-duty wheels and closeable lids. The Contractor shall maintain the Containers in good repair, shall bear the cost of normal wear and tear, and shall replace the Containers as needed. The Contractor may charge a fee to Customers that have Containers that must be repaired or replaced due to other than normal wear and tear and will notify the City Contract Manager if such fee has been charged. If repairs require removal of the Container from a Customer's Premises, the Contractor shall supply the Customer with a replacement Container or “loaner" Container. The Contractor shall, within seven (7) days, repair or replace damaged or dilapidated Containers. The Contractor shall provide the Containers required pursuant to this Section at its own cost and expense and any such Containers that are new, as of the Effective Date of this Amended and Restated Agreement, shall constitute Operating Assets. The Contractor shall promptly replace stolen Containers, provided that the Contractor shall only bear the cost of replacement of such Container the first time it is stolen, damaged or dilapidated; and, thereafter such cost of replacement shall be borne by the Customer.

D. Containers for Commercial Customers. The Contractor shall provide, as an Operating Asset, the Containers required pursuant to this Section at its own cost and expense. Each such Container shall be identified with the Contractor's name and phone number and be equipped with heavy-duty casters and closeable lids. Each such Container shall be watertight. The Contractor shall be responsible for the general maintenance and repair of Containers so provided and shall provide an equivalent Container as replacement during repairs and maintenance. If repairing, maintenance, steam cleaning, and/or repainting is required as a result of abuse, neglect, or misuse on the part of any Customer, the Contractor may charge the Customer a fee to compensate for the cost thereof.

The Contractor shall, within seven (7) days, repair or replace any stolen, damaged, or dilapidated Container, provided that the Contractor shall only bear the cost of replacement of such Container the first time it is stolen, damaged, or dilapidated and thereafter such cost of replacement shall be borne by the Customer.

E. Container Color and Labelling. No later than December 31, 2035, Contractor shall provide all Customers with Collection Containers that comply with the Container color requirements specified in this Section or as otherwise specified in 14 CCR Section 18982; 14 CCR, Division 7, Chapter 12, June 22, 2022 -31- City of Ridgecrest Franchise Agreement Article 3\. Solid Waste Containers shall have either a gray lid and a gray body or a gray lid and a green body, Recyclable Materials Containers shall have a blue lid and a blue body, and Organic Materials Containers shall have a green lid and a gray body. Hardware such as hinges and wheels on the Containers may be a different color. Commercial Bins can have a body of any color.

On or before January 1, 2023, Contractor shall place a label on each existing Container body or lid that includes language or graphic images, or both, that indicate the primary materials accepted and the primary materials prohibited in that Container. Labels shall clearly indicate items that are Prohibited Container Contaminants for each Container. Prior to ordering labels for Containers, Contractor shall submit a copy of its proposed label, proposed location(s) for placement of labels on each type of Container, and its labeling plan to the City Contract Manager for approval.

Contractor shall imprint new Container bodies or lids with text or graphic images that indicate the primary materials accepted and the primary materials prohibited in that Container. Labels shall clearly indicate items that are Prohibited Container Contaminants for each Container. Prior to ordering Containers or lids with in-mold labels, Contractor shall submit a sample of its proposed label, proposed location(s) for placement of labels on each type of Container, and its labeling plan to the City Contract Manager for approval.

If an existing Container breaks or is otherwise rendered non-functional on or after January 1, 2022, the Contractor shall replace the non-functional Container with a Container that complies with the color and labeling requirements of this Section. Notwithstanding this Section, the Contractor is not required to replace functional Containers, including Containers purchased prior to January 1, 2022, that do not comply with the color or labeling requirements of this Section prior to the end of the useful life of those Containers, or prior to January 1, 2036, whichever comes first.

F. Ownership of Containers. All Containers in service upon the expiration or termination of the Agreement shall be assumed to have been placed in service on September 5, 2011 unless Contractor can provide specific evidence documenting the serial number (or other distinguishing inventory designation) of each and every Container placed in service after that date and accompanying invoices from Contractor’s Container vendor(s) with matching identifying information. The City may, at its sole discretion, acquire or purchase all Discarded Material Containers upon expiration or early termination of this Agreement for the net book value as of the date of expiration or termination of the Agreement, based on a seven (7) year straight-line depreciation. In the event that the City desires to retain ownership of said Containers, the City shall notify Contractor of such determination. Contractor shall be entitled to receive payment from the City or a future franchisee to the City, for the remaining book value of such Containers based on a seven (7) year straight-line depreciation schedule.

Section 8.4: Vehicle Requirements
Contractor shall provide a fleet of Collection Vehicles sufficient in number and capacity to efficiently perform the work required by the Agreement in strict accordance with its terms. Contractor shall have available sufficient back-up Vehicles for each type of Collection Vehicle used to respond to scheduled and unscheduled maintenance, service requests, Complaints, and emergencies. All such Vehicles shall have watertight bodies designed to prevent leakage, spillage, or overflow. All such Vehicles shall comply with all Federal, State, and local laws and regulations including, without limitation, safety and emissions requirements and such compliance shall come at no additional cost to the City or Customers during the Term of this Agreement.

June 22, 2022 -32- City of Ridgecrest Franchise Agreement Collection Vehicles shall present a clean appearance while providing service under this Agreement.

Contractor shall inspect each Vehicle daily to ensure that all equipment is operating properly. Vehicles that are not operating properly shall be taken out of service until they are repaired and operate properly.

Contractor shall repair, or arrange for the repair of, all of its Vehicles and equipment for which repairs are needed because of accident, breakdown, or any other cause so as to maintain all equipment in a safe and operable condition.

June 22, 2022 -33- City of Ridgecrest Franchise Agreement ARTICLE 9: GENERAL REQUIREMENTS
Section 9.1: Public Access to the Contractor
A. Office Facilities. The Contractor shall establish and maintain an office within the City through which the Contractor's representatives may be contacted, unless otherwise approved by the City Contract Manager.

B. Office Hours. The Contractor's office hours shall be, at a minimum, from 8:00 a.m. to 5:00 p.m. daily except Saturdays, Sundays, and holidays. These hours may be altered with the approval of the City Contract Manager.

C. Emergency Telephone Number. The Contractor shall provide the City with an emergency telephone number for use by the City Contract Manager outside normal business hours. The Contractor shall have a representative, or an answering service to contact such representative, available at the emergency telephone number during all hours other than normal office hours.

Section 9.2: Complaints
A. Complaints to Contractor. The Contractor shall maintain during office hours a Complaint service and telephone answering system having an answering capacity satisfactory to the City Contract Manager. All service Complaints and billing Complaints will be directed to the Contractor. The Contractor shall record all Complaints in a log, including date, complainant name and address, and nature and resolution of Complaint. This log shall be available for inspection by the City Contract Manager during the Contractor's regular office hours. Copies thereof shall be furnished to the City Contract Manager upon request.

B. Required Response to Complaints. The Contractor, within twenty-four (24) hours of its receipt of notice from a Customer or the City Contract Manager of a failure to provide any service(s) as required by the terms of this Agreement, shall provide such service in a manner consistent with the requirements of this Agreement.

C. Documentation of SB 1383 Non-Compliance Complaints. Contractor shall maintain an electronic record that is readily accessible to City upon five (5) days’ notice, of all oral and written SB 1383- related non-compliance Complaints reported to Contractor from Customers or other Persons in accordance with Exhibit D.

1. Reports of SB 1383-Noncompliance Complaints. For reports received in which Customers or other Persons allege that an entity is in violation of SB 1383 requirements, Contractor shall document such Complaints in accordance with Exhibit D. Contractor shall provide this information in a brief Complaintreport to the City for each SB 1383-noncompliance Complaint within five (5) Business Days of receipt of such Complaint, and a quarterly summary report of SB 1383-noncompliance Complaints in accordance with Exhibit D.

2. Investigation of SB 1383-Noncompliance Complaints. Contractor shall assist City in meeting its obligation to investigate non-compliance Complaints by commencing an investigation within thirty (30) days of receiving a Complaint in the following circumstances: (i) upon Contractor receipt of a Complaint that an entity may not be compliant with SB 1383 and if City determines that the allegations against the entity, if true, would constitute a violation of June 22, 2022 -34- City of Ridgecrest Franchise Agreement SB 1383; and, (ii) upon City request to investigate a Complaint received by City, in which City determines that the allegations against the entity, if true, would constitute a violation of SB 1383. Contractor is required to investigate Complaints against Commercial and Multi-Family Customers and Generators, and not against Edible Food Recovery Organizations, Edible Food Recovery Services, and other entities regulated by SB 1383.

Contractor shall investigate the Complaint by:
(a) Reviewing the Service Level of the Customer (if the entity is a Customer of the Contractor);
(b) Reviewing the waiver list, if applicable, to determine if the entity has a valid, Cityapproved de minimis, space constraint, or Collection frequency waiver; (c) Inspecting Premises of the entity identified in the Complaint, if warranted, which may reasonably occur during regularly scheduled Collection services; and, (d) Contacting the Customer to gather more information, if warranted5e. Providing a Cityapproved notice of non-compliance Complaint report to the Customer that includes SB 1383 Generator requirements and, if applicable, provides a City-approved deadline for correction.

3. Reporting. Within ten (10) days of completing an investigation of a SB 1383 non-compliance Complaint in accordance with this Section, Contractor shall submit to City an investigation incident report that documents the Customer account in question, the nature of the Complaint, the investigation performed, and recommendation to City whether or not the Customer investigated is in violation of SB 1383 based on the Contractor’s investigation. The City shall make a final determination of the allegations against the entity.

Contractor shall provide to City in its reports a list of all Customer non-compliance Complaint notices that have not been resolved by Contractor within thirty (30) days of receiving such notice. The Customer Complaint list shall include the Customer’s account information, including Customer’s then-current Service Level, the nature of the Complaint, and Contractor’s efforts to resolve the Complaint. City, or its designee, shall be responsible for investigating such outstanding Complaints received by Contractor.

Within three (3) Business Days of the City’s or its designee’s request, Contractor shall provide City or its designee with Customer account information and other documentation that may be useful in the investigation,such as records of the Customer’s two (2) most recent change(s) in Service Level and other Customer service records.

Section 9.3: Accounting and Records
A. Maintenance and Audit of Records. The Contractor shall maintain in its principal office in the County full and complete financial statements and accounting records for operations under this Agreement. Contractor shall account for revenues received and expenses incurred as a result of this Agreement separate from the accounting for other operations performed by Contractor or its Affiliates. The Gross Receipts derived from the Collection Services under this Agreement, whether such services are performed by the Contractor or by a Subcontractor, shall be recorded as revenues in the accounts of the Contractor. Upon demand, the Contractor shall permit the City Contract Manager to examine and audit the books of account of the Contractor at any and all reasonable June 22, 2022 -35- City of Ridgecrest Franchise Agreement times for the purpose of verifying Contractor’s performance under this Agreement. Upon request, the Contractor shall allow the City Contract Manager to examine the reports of Gross Receipts and the invoices pertaining to any fee or charge approved by the City Council for services provided under this Agreement. Such request shall be made at reasonable times and with reasonable notice.

In the event that a Special Circumstance Rate adjustment is requested, such records shall be subject to review in accordance with appropriate professional standards, and inspection, for the primary purpose of reviewing changes in costs to the Contractor attributable to the Special Circumstance request, at any reasonable time by an independent third-party. The selection of the independent third-party as well as the scope of work for such review shall be approved in advance by the City Contract Manager. The independent reviewer shall provide any and all drafts of its review to the City and the Contractor. The Party requesting the Special Circumstance Rate review shall bear the cost of the review.

The Contractor shall maintain and preserve all cash, billing, and Disposal records throughout the Term of this Agreement and for a period of not less than three (3) years following expiration or early termination of the Agreement. The Contractor shall obtain, within one hundred twenty (120) days of a request by the City Contract Manager, complete independently audited financial statements for the prior calendar year, including its balance sheet, statement of revenues and expenses, and statement of changes in cash position, and provide such financial statements to the City Contract Manager.

B. Confidentiality. The City agrees to hold financial statements delivered pursuant to this Section as confidential and shall not disclose the same unless and to the extent disclosure is required pursuant to Applicable Law.

Contractor acknowledges that City is legally obligated to comply with the California Public Records Act (“CPRA”). City acknowledges that Contractor may consider certain records, reports, or information contained therein, which Contractor is required to provide to City under this Agreement, to be of a proprietary or confidential nature. In such instances, Contractor will inform City in writing of which records are considered propriety or confidential. In such instances, Contractor shall mark those documents as proprietary or confidential prior to transmitting them to the City. Confidential records will not be released by the City, and if challenged, Contractor shall assume the defense of such a challenge regarding the confidentiality of the records. The City will inform the Contractor in writing if such a challenge is presented to the City. If Contractor fails to timely respond, then City may proceed to disclosure the records in which event Contractor agrees waives and releases City of any liability for the disclosure of the records.

Section 9.4: Reporting
The Contractor shall maintain on file at its business Premises documentation setting forth it’s Routing and Collection System; as well as a list of all Collection Premises in the City, organized alphabetically or by address, and the identification of all services each receives. This information shall be updated and provided at no additional cost to the City along with Contractor’s annual report (as required in Exhibit D) to the City and any time upon request of the City Contract Manager. The Contractor shall cooperate with the City to periodically monitor the average volume of Solid Waste and Recyclable Materials generated from each Collection Premises. Customer-specific records are subject to inspection and copying by the City during regular business hours with reasonable advance notice.

June 22, 2022 -36- City of Ridgecrest Franchise Agreement Section 9.5: Applicable Law Compliance
The Contractor shall provide on a monthly basis all necessary reporting data requested by the City relating to the City's compliance requirements pertaining to AB 939, AB 341, AB 1826, SB 1383, and all other Applicable Laws as it affects the County's Integrated Waste Management Plan as set forth in Exhibit D.

Such report shall be provided to the City within thirty (30) days after the end of each month. The Contractor shall cooperate in activities requested by the City to measure Diversion of Solid Waste from landfills including, but not limited to, providing a location for conducting waste sorting at the Contractor's facility and re-routing trucks on a temporary basis to facilitate composition analysis. Such report shall include throughput, recovery rates per material type, Residue, costs, Recyclable Material commodity values, and final disposition of Recyclable Materials and Organic Materials. The Contractor shall also supply any other information reasonably requested by the City to meet State or Federal regulatory requirements and the reporting requirements of the City's SRRE, as those requirements may be amended from time to time.

Section 9.6: Personnel and Subcontractors
A. Employment Practices. The Contractor shall at all times maintain and follow employment practices in accordance with all State and Federal laws and regulations, and shall indemnify the City for any Legal Proceeding relating to its noncompliance with such laws or regulations.

B. Non-Discrimination. In the performance of the terms of this Agreement, the Contractor agrees that it will not engage in nor permit such Subcontractors as it may employ to engage in discrimination against any employee or applicant for employment on the basis of race, sex, color,religion, ancestry, national origin, marital status, age, or as a qualified individual with a disability. This prohibition shall pertain to employment, upgrade, demotion, or transfer; recruitment advertising; layoff or termination; rates of pay and other forms of compensation; selection for training, including apprenticeship; and, any other action or inaction pertaining to employment matters.

C. Personnel. The Contractor shall employ personnel sufficient in number, training, experience, and capability to ensure that the Collection Services required to be performed under this Agreement are properly carried out.

D. Subcontractors. The Contractor shall not utilize any Affiliates or Subcontractors for the performance of the Collection Services except with the consent of the City Contract Manager, which may be withheld or delayed if the City Contract Manager determines, in their sole discretion, that such consent is not in the best interest of the public health, safety, or general welfare. In the event Subcontractors are utilized, the Contractor shall provide the City with direct access to a designated representative from the Subcontractor, and such designation is not to be changed without prior approval of the City Contract Manager, except in cases of termination of the employee. The Parties acknowledge the City's direct contact with any Subcontractors in no way eliminates the Contractor's responsibility to fulfill its obligations under this Agreement.

Section 9.7: City Contract Manager
The City has designated the City Contract Manager to be responsible for the monitoring and administration of this Agreement. Contractor shall meet and confer with the City Contract Manager to resolve differences of interpretation and to implement and execute the requirements of this Agreement in an efficient and effective manner that is consistent with the stated objectives of this Agreement.

June 22, 2022 -37- City of Ridgecrest Franchise Agreement From time to time, the City Contract Manager may designate other agents at the City to work with Contractor on specific matters. In such cases, those individuals should be considered designates of the City Contract Manager for those matters to which they have been engaged. Such designates shall be afforded all of the rights and access granted thereto. In the event of a dispute between the City Contract Manager’s designate and Contractor, the City Contract Manager’s determination shall be conclusive.

In the event of dispute between the City Contract Manager and the Contractor regarding the interpretation of or the performance of services under this Agreement, the City Contract Manager’s determination shall be conclusive except where each such determination results in a material impact to the Contractor’s revenue and/or cost of operations. In the event of a dispute between the City Contract Manager and the Contractor that results in such material impact to the Contractor, Contractor may appeal the determination of the City Contract Manager to the City Council, whose determination shall be conclusive. For the purposes of this definition, “material impact” is an amount equal to or greater than one-quarter (0.25) of one (1) percent of Contractor’s annual Gross Receipts under this Agreement.

City Contract Manager or their designate shall have the right to observe and review Contractor operations and Processing Facilities and enter Premises for the purposes of such observation and review, including review of Contractor’s records, during reasonable hours with reasonable notice. In no event shall Contractor prevent access to such Premises for a period of more than three (3) calendar days after receiving such a request.

The City Contract Manager is authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations under this Agreement, either on behalf of the City, Contractor, or the public, pursuant to Municipal Code Section 7-10(e).

June 22, 2022 -38- City of Ridgecrest Franchise Agreement ARTICLE 10: CITY REIMBURSEMENT
Section 10.1: City Reimbursement
A. AB 939/SB 1383 Reimbursement. The Contractor shall pay an AB 939/SB 1383 Reimbursement to the City each quarter. The amount of the AB 939/SB 1383 Reimbursement shall be two hundred thousand dollars ($200,000) in Rate Period One and shall be adjusted in subsequent Rate Periods pursuant to Section 10.2. The AB 939/SB 1383 Reimbursement shall be paid in equal quarterly installments. The City shall use the AB 939/SB 1383 Reimbursement to offset expenses including, but not limited to, costs related to contract management, compliance monitoring, pilot studies, education and outreach campaigns, technical assistance to Customers, reporting, capacity planning, or other activities involved in compliance with AB 939 and/or SB 1383. The City shall retain the sole right to set priorities for its contract monitoring and enforcement among the City personnel. This fee shall be a Pass-Through Cost.

B. Franchise Fees. Pursuant to Municipal Code Section 7-383, in consideration of the rights provided Contractor herein, Contractor shall pay Franchise Fees to the City each quarter equal to ten percent (10%) of Gross Receipts for all services performed under this Agreement. This fee shall be paid out of Contractor’s profits and shall not be passed through to or paid by Customers in any way.

C. Other Reimbursements. The City shall reserve the right to set other cost reimbursements as it deems necessary, subject to City Council approval. The time and method of payment shall be consistent with those for the AB 939/SB 1383 Reimbursement, and the fee adjustment process shall be consistent with that specified in Section 10.2. The City acknowledges that the Contractor shall be entitled to recover, through the Rates to be charged and authorized to be imposed hereunder, the reasonable costs of the Contractor incurred due to the imposition of additional fees.

Section 10.2: Adjustment to Fees
Pursuant to the Municipal Code, the City may adjust the fees established in Section 10.1.A and 10.1.C from time-to-time during the Term of this Agreement and such adjustments shall be included in the adjustment of Rates as described in Section 11.2 and Exhibit B. The City acknowledges that the Contractor shall be entitled to recover, through the Rates to be charged and authorized to be imposed hereunder, the reasonable costs of the Contractor incurred due to the adjustment in the fees.

The amounts of the AB 939/SB 1383 Reimbursement Fee and Administrative Fee for subsequent Rate Periods shall be adjusted annually in accordance with the adjustment method described in Exhibit B, or shall be the amount specified by the City. The City acknowledges that the Contractor shall be entitled to recover, through the Rates to be charged and authorized to be imposed hereunder, the reasonable costs of the Contractor incurred due to the adjustment in the reimbursements.

Section 10.3: Payment Schedule and Late Fees
Within thirty (30) days of the end of each calendar quarter, during the Term of this Agreement and including the final calendar quarter or portions thereof at the end of the Term of this Agreement, Contractor shall remit to City all fees as described in this Article. Such fees shall be payable to City and sent or delivered to the City Contract Manager.

June 22, 2022 -39- City of Ridgecrest Franchise Agreement If such remittance is not paid to City on or before the thirtieth (30) day following the end of a calendar quarter, all fees due shall be subject to a delinquency penalty of three percent (3%), which attaches on the first day of delinquency. The delinquency penalty shall be increased an additional three percent (3%) and applied to both the original amount due as well as any delinquency penalties previously applied for each additional month the payment remains delinquent. For example, if the amount of the original fees owed equals one hundred thousand dollars ($100,000) the initial delinquency amount applied on the first day of delinquency will be three thousand dollars ($3,000) bringing the total amount to one hundred three thousand dollars ($103,000). If that amount becomes past due for an additional month, the additional delinquency penalty shall be applied to the one hundred three thousand dollars ($103,000) therefore, the new total amount due would be one hundred six thousand ninety dollars ($106,090).

Each quarterly remittance to the City shall be accompanied by a statement listing the amount of each fee paid; calculation of each fee; and, statement of Gross Receipts, by Line of Business, for the period Collected from all operations conducted or permitted by this Agreement. The City Contract Manager may, at any time during the Term, request a detailed calculation of Gross Receipts that may include, but is not necessarily limited to, the number of Customers charged at each Service Level and Rate for each billing period.

The City Contract Manager may, at any time during the Term or within three (3) years following the expiration or early termination of this Agreement, perform an audit of Contractor’s billings and payment of fees. Contractor shall fully cooperate with the City Contract Manager in any such audit. Should the City or its agent perform this review and identify billing errors or other errors in payment of fees valued at one percent (1%) or more of Gross Receipts, Contractor shall, in addition to compensating the City for lost fees and applicable delinquency penalties, reimburse the City’s cost of the review.

June 22, 2022 -40- City of Ridgecrest Franchise Agreement ARTICLE 11: CONTRACTOR’S COMPENSATION AND RATE SETTING
Section 11.1: General
The Contractor’s Compensation for performance of all its obligations under this Agreement shall be Gross Receipts. Contractor's Compensation provided for in this Article shall be the full, entire, and complete compensation due to Contractor pursuant to this Agreement for all labor, equipment, materials and supplies, Processing and Disposal fees, fees due to the City, taxes, insurance, bonds, overhead, operations, profit, and all other things necessary to perform all the services required by this Agreement in the manner and at the times prescribed. Nothing herein shall obligate the City to provide any compensation to Contractor beyond Gross Receipts.

If Contractor’s actual costs, including fees due to the City, are more than Gross Receipts, Contractor shall not be compensated for the difference in actual costs and actual Gross Receipts. If Contractor’s actual costs, including fees due to the City, are less than the actual Gross Receipts, Contractor shall retain the difference.

Under this Agreement, Contractor shall have the right and obligation to charge and collect from Customers, Rates that are approved by the City pursuant to the Municipal Code for provision of services to Customers. The Rates for Rate Period One (Exhibit C3) are based on the Contractor’s Proposal.

Contractor’s proposed costs and operating assumptions for Rate Period One are presented in Exhibit C2.

The Rates established by the City are maximum Rates and Contractor may, in its sole discretion, charge Customers any amount up to and including the approved maximum Rate for a given level of service.

Revenues received for the sale of Recyclable Materials, including California Redemption Value revenues, have been considered in the establishment of Rates for services provided under this Agreement. Neither Contractor nor the Approved Recyclable Materials Processing Facility are entitled to grant funds available through CalRecycle through its “Curbside Supplemental Payments” for registered curbside Recycling programs or “City/County Payment Program” pursuant to Section 14581(a)(5)(A) of the California Beverage Container Recycling and Litter Reduction Act.

Section 11.2: Rates and Annual Adjustments
A. General. The City shall be responsible for approving maximum Rates as described in this Article.

If at any time during the Term of the Agreement, the Contractor determines the need for a Rate that does not appear on the City-approved Rate schedule in Exhibit C3, Contractor shall immediately notify the City and request establishment of such Rate. For example, if a Customer requires Collection of Recyclable Materials in a fifteen (15) cubic yard Compactor five (5) times per week and the City -approved Rate schedule does not include this level of service, the Contractor must request that the City approve a Rate for this level of service.

B. Maximum Rates for Rate Period One. Maximum Rates for Rate Period One, which are presented in Exhibit C3, were determined by Contractor and were approved by City resolution on or before the execution of the Agreement. The maximum Rates for Rate Period One shall be effective from the Commencement Date of this Agreement through June 30, 2023.

C. Rates for Subsequent Rate Periods. Maximum Rates in effect as of March 1, 2022 are set forth in Exhibit C3. Maximum Rates in effect as of March 1, 2022 shall be adjusted annually for subsequent Rate Periods in accordance with this Section and Exhibit B.

June 22, 2022 -41- City of Ridgecrest Franchise Agreement The multi-index based adjustment, which is described in Exhibit B, involves use of various cost adjustment factors to calculate adjusted Rates. Such Rate adjustment calculations shall be performed in conformance to the procedures described in Exhibit B.

D. Rate Structure. The City and Contractor shall meet and confer to change the relationship of individual Rates in comparison with other Rates. Any such changes would occur in conjunction with the annual Rate adjustment process described in Section 11.2.C or in conjunction with a Rate adjustment resulting from an extraordinary Rate adjustment in accordance with Section 11.3.

Changes to the Rates charged under the new structure shall be calculated in such a way that the revised Rate structure generates at least the same amount of total revenue when the number of accounts at each Service Level are multiplied by the Rates charged for each Service Level and the total for all Service Levels are summed.

Section 11.3: Special Circumstances Rate Adjustments
It is understood that the Contractor accepts the risk for changes in cost of providing services and the Service Levels requested by Customers and therefore the Special Circumstance adjustments to Rates shall be limited to: (i) a Change in Law (as defined in Exhibit A); (ii) an increase or decrease in a direct per Ton surcharge assessed on the Collection, Transportation, Processing, or Disposal of Discarded Materials by Federal, State, or local regulatory agencies after the Effective Date of the Agreement (Surcharge); or (iii) a City-directed change in scope (pursuant to Section 4.8). If a Change in Law, surcharge, or a City-directed change in scope occurs, the Contractor or City Contract Manager may petition the City Council for an adjustment to the maximum Rates (either increasing or decreasing the Rates) calculated in accordance with Section 11.2.

Contractor shall prepare an application for the extraordinary Rate adjustment calculating the net financial effect on its operations (both increases and decreases of costs and revenues) resulting from the Change in Law, Surcharge, or City-directed change in scope (but not resulting from unrelated changes in costs and revenues), clearly identifying all assumptions related to such calculations and providing the underlying documentation supporting the assumptions. City Contract Manager shall evaluate the application for reasonableness. As part of that review, the City Contract Manager may request access to the financial statements and accounting records required to be maintained by the Contractor (pursuant to Section 9.3) in order to determine the reasonableness of the Contractor’s application. Should the Contractor not grant such access, then the City may rely on the Contractor’s Proposal and other information available to it as the basis for making reasonable assumptions regarding what those accounting and financial records would have shown and therefore the reasonableness of the Contractor’s application. Contractor shall pay all reasonable costs incurred by the City, including the costs of outside accountants, attorneys, and/or consultants in order to make a determination of the reasonableness of the requested Rate adjustment.

In the event of such an application for Special Circumstances Rate adjustment, it is understood that the City or Contractor, as the case may be, shall have the burden of demonstrating the reasonableness of the requested adjustment.

The Contractor may appeal the decision of the City Contract Manager to the City Council, which shall then make the final determination as to whether an adjustment to the maximum Rates will be made, and if a Rate adjustment is permitted, the amount of the Rate adjustment. With respect to an extraordinary Rate adjustment requested by the City Contract Management, the City Council shall then make the final determination as to whether an adjustment to the maximum Rates will be made, and if a Rate adjustment is permitted, the amount of the Rate adjustment.

June 22, 2022 -42- City of Ridgecrest Franchise Agreement Section 11.4: Publication of Rates
The Contractor shall provide written notice to Customers of proposed Rate changes. Such written notice shall be delivered to all Customers as part of the next quarterly or monthly billing statement that Contractor sends to Customers. Contractor shall also publish such Rates in a convenient and easily found location on its website.

June 22, 2022 -43- City of Ridgecrest Franchise Agreement ARTICLE 12: INDEMNITY, INSURANCE, AND PERFORMANCE
BOND
Section 12.1: Indemnification
A. General. Contractor shall indemnify, defend with counsel reasonably acceptable to City, and hold harmless (to the full extent permitted by law) City and its officers, officials, employees, volunteers, and agents from and against any and all claims, liability, loss, injuries, damage, expense, and costs (including without limitation costs and fees of litigation, including attorneys’ and expert witness fees) (collectively, “Damages”) of every nature arising out of or in connection with Contractor’s performance under this Agreement, or its failure to comply with any of its obligations contained in the Agreement, except to the extent such loss or damage was caused by the negligence or willful misconduct of the City, or limited by Section 40059.1 of the Public Resources Code.

B. Excluded Waste. Contractor acknowledges that it is responsible for compliance with all Applicable Laws during the entire Term of this Agreement. Contractor shall not store, Transport, use, or Dispose of any Excluded Waste except in strict compliance with all Applicable Laws.

In the event that Contractor negligently or willfully mishandles Excluded Waste in the course of carrying out its activities under this Agreement, Contractor shall at its sole expense promptly take all investigatory and/or remedial action reasonably required for the remediation of such environmental contamination. Prior to undertaking any investigatory or remedial action, however, Contractor shall first obtain the City’s approval of any proposed investigatory or remedial action. Should Contractor fail at any time to promptly take such action, the City may undertake such action at Contractor’s sole cost and expense, and Contractor shall reimburse the City for all such expenses within thirty (30) calendar days of being billed for those expenses, and any amount not paid within that thirty (30) calendar day period shall thereafter be deemed delinquent and subject to the delinquent fee payment provision of Section 10.3. These obligations are in addition to any defense and indemnity obligations that Contractor may have under this Agreement. The provisions of this Section shall survive the termination or expiration of this Agreement.

Notwithstanding the foregoing, Contractor’s duties under this subsection shall not extend to any claims arising from the Disposal of Solid Waste at the Designated Disposal Facility including, but not limited to, claims arising under Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) unless such claim is a direct result of Contractor’s negligence or willful misconduct.

C. Environmental Indemnity. Contractor shall defend, indemnify, and hold the City harmless against and from any and all claims, suits, losses, penalties, damages, and liability for damages of every name, kind, and description, including attorneys’ fees and costs incurred, attributable to the negligence or willful misconduct of Contractor in handling Excluded Waste.

D. Related to AB 939, AB 341, AB 1826, and SB 1383. To the extent permitted by law, Contractor’s duty to defend and indemnify herein includes all fines and/or penalties imposed by CalRecycle, if the requirements of AB 939, AB 341, AB 1826, and/or SB 1383 are not met by the Contractor with respect to the Contractor’s obligations under this Agreement, and such failure is: (i) due to the failure of Contractor to meet its obligations under this Agreement; or, (ii) due to Contractor delays in providing information that prevents Contractor or City from submitting reports to regulators in June 22, 2022 -44- City of Ridgecrest Franchise Agreement a timely manner. This indemnity is subject to the provisions of Public Resources Code § 40059.1.

E. Related to the Act. Contractor’s duty to defend and indemnify herein includes all fines and/or penalties imposed by CalRecycle, subject to the restrictions set forth in Public Resources Code Section 40059.1, if the requirements of the Act are not met by the Contractor with respect to the waste stream Collected under this Agreement, and such failure is: (i) due to the failure of Contractor to meet its obligations under this Agreement; or, (ii) due to Contractor delays in providing information that prevents Contractor or the City from submitting reports required by the Act in a timely manner.

F. Related to Proposition 218. Should there be a Change in Law or a new judicial interpretation of Applicable Law including, but not limited to, Article XIII C and D of the California Constitution (Commonly Proposition 218) that impacts the Rates for the Collection Services established in accordance with this Agreement, Contractor agrees to meet and confer with the City to discuss the impact of such Change in Law on either Party’s ability to perform under this Agreement.

If, at any time, a Rate adjustment determined to be appropriate by both the City (which determination shall not be unreasonably withheld) and Contractor to compensate Contractor for increases in costs as described in this Agreement cannot be implemented for any reason, Contractor shall be granted the option to negotiate with the City, in good faith, a reduction of services equal to the value of the Rate adjustment that cannot be implemented. If the City and Contractor are unable to reach agreement on such a reduction in services, then Contractor may terminate this Agreement upon one hundred eighty (180) calendar days prior written notice to the City, in which case the Contractor and the City shall each be entitled to payment of amounts due for contract performance through the date of termination.

Should a court of competent jurisdiction determine that the Contractor cannot charge and/or increase its Rates for charges related to any new or increased Franchise Fees and Governmental Fees and charges, Contractorshall reduce the Rates it charges Customers a corresponding amount and shall discontinue payment of any new or increased Franchise Fee, Governmental Fees, and/or charges that have been invalidated by the court.

Nothing herein is intended to imply that California Constitution, Articles XIIIC or XIIID, apply to the Rates established for services provided under this Agreement; rather this Section is provided merely to allocate risk of an adverse judicial interpretation between the Parties.

This provision will survive the expiration or earlier termination of this Agreement and shall not be construed as a waiver of rights by the City to contribution or indemnity from third parties.

Section 12.2: Insurance
General Requirements. Contractor shall, at its sole cost and expense, maintain in effect at all times during the Term of this Agreement not less than the following coverage and limits of insurance:

A. Coverages and Requirements. During the Term of this Agreement, Contractor shall at all times maintain, at its expense, the following coverages and requirements. The comprehensive general liability insurance shall include broad form property damage insurance.

1. Insurance coverage shall be with limits not less than the following:

Comprehensive General Liability – $2,000,000 combined single limit per occurrence for June 22, 2022 -45- City of Ridgecrest Franchise Agreement bodily injury, personal injury, and property damage.

Automobile Liability – $2,000,000 combined single limit per accident for bodily injury and property damage (include coverage for Hired and Non-owned Vehicles).

Workers’ Compensation – Statutory Limits/Employers’ Liability - $1,000,000/accident for bodily injury or disease.

Commercial Crime Liability – $1,000,000 per occurrence covering dishonesty, forgery, alteration, theft, disappearance, and destruction (inside or outside). Pollution Legal Liability - $1,000,000 per claim/occurrence and $2,000,000 aggregate for bodily injury, property damage.

2. The City, its officers, agents, employees, and volunteers shall be named as additional insured on all but the workers’ compensation and professional liability coverages.

3. Said policies shall remain in force through the life of this Agreement and, with the exception of Pollution Legal liability coverage, shall be payable on a “per occurrence” basis unless the City’s Risk Manager specifically consents in writing to a “claims made” basis. For all “claims made” coverage, in the event that the Contractor changes insurance carriers Contractor shall purchase “tail” coverage or otherwise provide for continuous coverage covering the Term of this Agreement and not less than three (3) years thereafter. Proof of such “tail” or other continuous coverage shall be required at any time that the Contractor changes to a new carrier prior to receipt of any payments due.

4. The Contractor shall declare all aggregate limits on the coverage before commencing performance of this Agreement, and the City’s Risk Manager reserves the right to require higher aggregate limits to ensure that the coverage limits required for this Agreement as set forth above are available throughout the performance of this Agreement.

5. The deductibles or self-insured retentions are for the account of Contractor and shall be the sole responsibility of the Contractor.

6. Each insurance policy shall provide or be endorsed to state that coverage shall not be canceled by either Party, or reduced below the contractual requirements in coverage or in limits except after thirty (30) calendar days prior written notice, has been given to the City Contract Manager ten (10) Business Days (including delinquent insurance premium payments).

7. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than AVII, unless otherwise approved by the City Risk Manager.

8. The policies shall cover activities of Contractor, its officers, employees, agents, and volunteers arising out of or in connection with this Agreement.

9. For any claims relating to this Agreement, the Contractor’s insurance coverage shall be primary, including as respects the City, its officers, agents, employees, and volunteers.

Any insurance maintained by the City shall apply in excess of, and not contribute with, insurance provided by Contractor’s liability insurance policy.

10. The Contractor shall waive all rights of subrogation against the City, its officers, employees, agents, and volunteers related to the performance of services under this Agreement.

June 22, 2022 -46- City of Ridgecrest Franchise Agreement B. Endorsements. Prior to the Effective Date pursuant to this Agreement, Contractor shall furnish the City Contract Manager with certificates or original endorsements reflecting coverage required by this Agreement. The certificates or endorsements are to be signed by a Person authorized by that insurer to bind coverage on its behalf. All certificates or endorsements are to be received by, and are subject to the approval of, the City Risk Manager before work commences.

C. Renewals. During the Term of this Agreement, Contractor shall furnish the City Contract Manager with certificates or original endorsements reflecting renewals, changes in insurance companies, and any other documents reflecting the maintenance of the required coverage throughout the entire Term of this Agreement. The certificates or endorsements are to be signed by a Person authorized by that insurer to bind coverage on its behalf.

D. Workers' Compensation. Contractor shall provide workers’ compensation coverage as required by State law, and prior to the Effective Date pursuant to this Agreement, Contractor shall file the following statement with the City.
“I am aware of the provisions of Paragraph 3700 of the Labor Code that require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing any services required by this Agreement.

The Person executing this Certificate on behalf of Contractor affirmatively represents that she/he has the requisite legal authority to do so on behalf of Contractor, and both the Person executing this Agreement on behalf of Contractor and Contractor understand that the City is relying on this representation in entering into this Agreement.”
Section 12.3: Performance Bond
Within seven (7) calendar days of the City’s notification to Contractor that the City has executed this Agreement, Contractor shall file with the City a bond, payable to the City, securing the Contractor's performance of its obligations under this Agreement and such bond shall be renewed annually if necessary so that the performance bond is maintained at all times during the Term. The principal sum of the bond shall be equal to the sum of the last three (3) months of the prior Rate Period’s annual Gross Receipts, and shall be adjusted every three (3) years, commencing with Rate Period Three. Contractor is to calculate the adjusted bond amount and send the calculation to the City for review prior to submitting to the executing corporation. The bond shall be executed as surety by a corporation authorized to issue surety bonds in the State of California that has a rating of A or better in the most recent edition of Best’s Key Rating Guide, and that has a record of service and financial condition satisfactory to the City. The bond shall be in the form attached as Exhibit E.

June 22, 2022 -47- City of Ridgecrest Franchise Agreement ARTICLE 13: DEFAULT, REMEDIES AND TERMINATION
Section 13.1: Default and Remedies
A. Events of Default. Each of the following shall constitute an Event of Default:

1. Any transaction, without any requirement of notice or cure opportunity, not complying with the requirements of Section 15.7 hereof.

2. The failure by the Contractor for any reason to deliver to the Designated Disposal Facility Solid Waste Collected by the Contractor.

3. Failure or refusal of the Contractor to perform any term, covenant, obligation, or condition in this Agreement other than a failure or refusal described in items (1) or (2) above, except that no such failure or refusal shall give the City the right to terminate this Agreement under this Section unless:
(a) The City has given prior written notice to the Contractor, stating the existence of a specific failure or refusal to perform exists that will, unless corrected, constitute a material breach of this Agreement on the part of the Contractor and that will, in the City’s opinion, give the City a right to terminate this Agreement for cause under this Section unless such default is corrected within fifteen (15) days; and, (b) The Contractor has neither challenged in an appropriate forum the City's conclusion that such failure or refusal to perform has occurred or constitutes a material breach of this Agreement nor corrected or diligently taken steps to correct such default within such fifteen (15) day period from receipt of the notice given pursuant to the clause (a) of this subsection (but if the Contractor shall have diligently taken steps to correct such default within a reasonable period of time, the same shall not constitute an Event of Default for as long as the Contractor is continuing to take such steps to correct such default in a timely manner).

4. The written admission by the Contractor that it is bankrupt, or the filing by the Contractor of a voluntary petition under the Federal Bankruptcy Code, or the consent by the Contractor or either guarantor to the appointment by a court of a receiver or trustee for all or a substantial portion of its property or business, or the making by the Contractor or either Guarantor of any arrangement with or for the benefit of its creditors involving an assignment to a trustee, receiver or similar fiduciary, regardless of how designated, of all or a substantial portion of the Contractor’s property or business.

5. The final adjudication of the Contractor as bankrupt after the filing of an involuntary petition under the Bankruptcy Act, but no such adjudication shall be regarded as final unless and until the same is no longer being contested by the Contractor nor until the order of the adjudication is no longer appealable.

6. The failure of the Contractor to provide or maintain the Performance Bond required pursuant to Section 12.3 hereof.

June 22, 2022 -48- City of Ridgecrest Franchise Agreement

7. Any failure by the Contractor to comply with the Ridgecrest Municipal Code including, but not limited to, Sections 3-501 through 3-5.112, Sections 3-5.701 through 3-5.704, and Sections 13-2.2 through 13-5.4, following notice and opportunity to cure in accordance with Section

13.1.A.3(b).

8. Failure of the Contractor to timely implement the operational changes and adjusted maximum Rates resulting from the Change of Law or City-directed Change in Scope. The Contractor shall have 30 days after notice of breach from the City to implement the operational changes. Should the Contractor thereafter not implement the operational changes it shall be in default of the Agreement. In addition to being liable for all damages and penalties to the City resulting from such default, the City may terminate the Agreement in accordance with Section 13.1.B.

B. Right to Terminate Upon Default. Upon a determination by the City Contract Manager that an Event of Default has occurred, the City Council shall conduct a hearing upon ten (10) days’ notice to the Contractor to determine if termination of the Agreement is in the best interests of the public health, safety, and general welfare of the citizens of the City. If the fact finder makes such a determination, the Contractor shall be deemed to have waived any right it may have under Applicable Law to notice of termination in excess of those notice provisions explicitly set forth herein.

C. City's Remedies Cumulative: Specific Performance. The City's right to terminate this Agreement under this Section is not exclusive, and the City's termination of the Agreement shall not constitute an election of remedies. Instead, they shall be in addition to any and all other legal and equitable rights and remedies which the City may have including, but not limited to, specific performance, and fees and expenses incurred by or on behalf of the City in enforcing payment or performance of the Contractor's obligations hereunder if such non-performance results in a judicially determined Event of Default by the Contractor.

D. Possession of Property upon Termination or Suspension. In the event of termination or suspension for default, the City shall have the right to take possession of any and all of Contractor's equipment and other property used or useful in the Collection, Transportation, Processing, and Disposal of Solid Waste or Recyclable Materials and the billing and collection of fees for these services and to use such property. The City shall have the right to retain the possession of such property until such time as Contractor remedies the default or substitute services can be provided by another contractor. If the City retains possession of Contractor’s equipment or other property after the period of time for which Contractor has already been paid by means of bills issued in advance of providing service for the service involved, the Contractor shall be entitled to the reasonable rental value of such property (which shall be offset against any damages due the City for the Contractor's default). Contractor shall furnish the City with immediate access to all of its business records related to its Customers and billing of accounts for Collection Services.

Section 13.2: Liquidated Damages
In addition to any other remedies provided for in this Agreement, the City Contract Manager may levy a charge in the amounts listed below for the Contractor's failure to meet the requirements enumerated below that constitute a breach of the terms and conditions of this Agreement. The City Contract Manager's decision to levy such a charge shall not be deemed an election of remedies but shall be cumulative with any other remedies provided for in this Agreement. The City Contract Manager's decision not to levy any such charge shall not be deemed a waiver of any breach by Contractor under this June 22, 2022 -49- City of Ridgecrest Franchise Agreement Agreement. The Parties agree that the following Liquidated Damages represent a reasonable estimate of the amount of such damages, considering all of the circumstances existing on the date of the Agreement, including the relationship of the sums to the range of harm to the City that reasonably could be anticipated and anticipation that proof of actual damages would be costly or inconvenient. In signing this Agreement, each Party specifically confirms the accuracy of the statements made above and the fact that each Party had ample opportunity to consult with legal counsel and obtain an explanation of this Liquidated Damage provision at the time that this Agreement was entered into.

A. Excessive Complaints. When Contractor or the City Contract Manager receives Complaints from more than one percent (1%) of its client base within a six (6) month period, Contractor will be assessed twenty-five ($25) per Complaint per occurrence during that period; and an additional twenty-five ($25) each twenty-four (24) hours until the Complaint is reasonably resolved. For purposes of this section, "Complaints" shall mean substantive and credible Customer notifications to the Contractor or the City Contract Manager of missed pick-ups, property damage, missed commitments, employee misconduct, or poor quality of service (e.g., litter on property or public right-of-way or misplacement of Containers).

B. Failure to remit the City Fees, or file required reports in an accurate and complete manner, within five (5) working days following the due date of such fees or reports: fifty dollars ($50) per day for the first five (5) days, then five hundred dollars ($500) per day for each day after the first five (5) days.

C. Failure to provide access to Operating Assets or any other documents or information within fourteen (14) days of a request by the City Contract Manager: one hundred dollars ($100) per day per occurrence.

D. Failure to charge a Customer at or below the maximum approved Rate, where not refunded on the next invoice: fifty dollars ($50) per occurrence per Customer where the number of Customers overcharged is less than twenty-five (25); five hundred dollars ($500) per occurrence per Customer where the number of Customers overcharged is twenty-five (25) or more. In addition, Contractor shall be responsible for refunding any amount overcharged to each Customer determined to be overcharged. Contractor shall not be entitled to any refund from the City for Franchise Fees or other fees paid on overcharged amounts.

E. Failure to implement any one (1) of the strategies listed in the Education and Outreach Plan: fifty dollars ($50) per day for each day in excess of fifteen (15) days following Contractor's receipt of written notice from City.

F. Collection outside permitted hours: one hundred dollars ($100) per occurrence.

G. Use of Unauthorized Facilities. For each individual occurrence of delivering Discarded Materials to a Facility other than an Approved Facility(ies) for each Discarded Material type under this Agreement. Twenty-five dollars ($25) per Ton.

H. Failure to Implement Three-Container System. For each occurrence of failing to provide Customers with the three (3) Container system required by and compliant with Article 4, excluding Generators and Customers granted waivers pursuant to Section 4.4 of this Agreement. Twenty-five dollars ($25) per Customer per month.

I. Failure to Comply with Container Labeling and Colors. For each occurrence of Contractor’s failure to comply with Container labeling and color requirements pursuant to Section 8.3 of this Agreement. Twenty-five dollars ($25) per Container per month.

June 22, 2022 -50- City of Ridgecrest Franchise Agreement J. Failure to Perform Public Education and Outreach. For each failure to perform any individual education and outreach activity as required and, in the timeframe, specified by this Agreement.

Twenty-five dollars ($5) per Customer.

K. Failure to Submit Reports or Allow Access to Records. For each failure to submit any individual report or provide access to records in compliance with and in the timeframe specified in this Agreement. Incomplete and/or inaccurate reports shall be considered a failure to submit until such time as all information in the report has been provided in a complete and accurate form. In the event City determines an errant or incomplete report more than ten (10) Business Days after submittal by Contractor, Contractor shall be given ten (10) Business Days to complete and correct and any pending Liquidated Damages shall be tolled during that period.

L. Failure to Issue Contamination Notices. For each failure of Contractor Collection personnel to issue Contamination Notices and maintain documentation of issuance as required by Section 4.4.O. of this Agreement during Route Reviews. Twenty-five dollars ($25) per occurrence.

M. Improper Fee Issuance. For each fee that is issued to a Generator without prior authorization from City under this Agreement. Twenty-five dollars ($25) per occurrence The City Contract Manager shall give the Contractor written notice of charges levied pursuant to this Section. Any such damages shall be paid directly to the City and may not be included by the Contractor as justification for an upward adjustment in the Rate schedule or offset against any fees.

The decision of the City Contract Manager shall be final and binding on the Contractor unless the Contractor files with the Clerk of the City Council a notice of appeal within fifteen (15) days of receipt of the City Contract Manager's decision. The Notice of Appeal shall be in writing and shall contain a detailed statement of the basis for the appeal. Upon receipt of the Notice of Appeal, the City Contract Manager shall set the matter for a public hearing within thirty (30) days. The City Contract Manager shall give the Contractor and any interested Person requesting the same, ten (10) days’ written notice of the time and place of the hearing. At the hearing, the City Councilshall determine, based on the record, the appropriate action to be taken. The decision of the City Council shall be final and conclusive.

Section 13.3: Uncontrollable Circumstances
A. Excuse from Performance. In the event that a Party is prevented from performing its obligations under this Agreement by an Uncontrollable Circumstance, it shall not constitute a default of this Agreement, so long as the Party in good faith has used its best efforts to perform its respective obligations.

The Party claiming excuse from performance shall, within five (5) days after such Party has notice of the effect of such cause, give the other Party notice of the facts constituting such cause and asserting its claim to excuse under this Section. Specifically, such information shall include the following:

1. The Uncontrollable Circumstance and the cause thereof (to the extent known);

2. The date the Uncontrollable Circumstance began, the cause thereof, estimated duration, and the estimated time during which the performance of such Party's obligations hereunder will be delayed;

3. Its estimated impact on the other obligations of such Party under this Agreement; and, June 22, 2022 -51- City of Ridgecrest Franchise Agreement

4. Potential mitigating actions that might be taken by the Contractor or City and any areas where costs might be reduced and the approximate amount of such cost reductions.

While the delay continues, the Contractor or City shall give daily notice to the other Party updating the information previously submitted.

In the event that either Party validly exercises its rights under this Section, the Parties hereby waive any claim against each other for any damages sustained thereby.

B. City's Right to Terminate. The partial or complete interruption or discontinuance of the Contractor's services caused by one (1) or more of the events described in this Section shall not constitute a default by the Contractor under this Agreement. Notwithstanding the foregoing, however, if the Contractor is excused from performing its obligations hereunder because of any Uncontrollable Circumstance for a period of thirty (30) days or more, the City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving sixty (60) days’ notice.

C. Work Stoppages. Notwithstanding anything in this Agreement to the contrary, any strikes, work stoppages, or other labor disputes or disturbances occurring with respect to an activity performed or to be performed by the Contractor or any of the Contractor's Subcontractors in connection with the Operating Assets or the Collection Services that last beyond seven (7) days shall not constitute an Event of Default under Section 13.1.A.

However, in the event of such occurrence that prevents or diminishes the ability of Contractor to Collect, Transport, and Dispose of any or all of the Discarded Materials that it is obligated under this Agreement to Collect, Transport, or Dispose of for a period of more than seventy-two (72) hours and the City Contract Manager, in their discretion, should find that such accumulation endangers or menaces the public health, safety, or welfare, then City shall have the right, upon twenty-four (24) hours’ notice to Contractor, to find the Contractor in Default. The City shall then have the right to contract with any other third-parties to Collect and Transport any and all Discarded Materials which Contractor would otherwise be obligated to Collect and Transport pursuant to this Agreement.

Contractor agrees that in such event, it will fully cooperate with City and its third-party contractor to affect such transfer of operations in as smooth and efficient a fashion as is practicable. All costs, fees, rates, or other expenses incurred by City and/or its third-party contractor that exceed those that would have been incurred by City had no such emergency arisen shall be the responsibility of the Contractor and shall be paid to City within thirty (30) days of receipt of written notice to pay.

Section 13.4: Right to Demand Assurances of Performance If the City believes in good faith that the Contractor's ability to perform under the Agreement has been placed in substantial jeopardy by one (1) of the events enumerated below, the City Contract Manager may, at his option and in addition to all other remedies the City may have, require that Contractor provide City Contract Manager with sufficient proof that none of the events enumerated below will in fact impair Contractor from performing its obligations under the Agreement:

A. Contractor is the subject of any labor unrest, including work stoppages or slowdown, sick-out, picketing, or other concerted job action;
B. Contractor appears, in the reasonable judgment of the City, to be unable to regularly pay its bills as they become due; or,
C. Contractor is the subject of a civil or criminal judgment or order entered by a Federal, State, regional, or local agency for violation of an environmental law.

June 22, 2022 -52- City of Ridgecrest Franchise Agreement If the Contractor fails or refuses to provide to the City adequate information to establish its ability to perform within thirty (30) days, such failure or refusal shall be an Event of Default for purposes of Section

13.1.A.

Section 13.5: Waiver of Defenses
In order to ensure the non-interruption of a vital public service, except as provided in Section 13.3, the Contractor acknowledges that it is solely responsible for providing the services described herein, and hereby irrevocably waives the following defenses to the payment and performance of its obligations under this Agreement: any defense based upon failure of consideration, contract of adhesion, impossibility or impracticability of performance, commercial frustration of purpose, or the existence, nonexistence, occurrence or non-occurrence of any foreseen or unforeseen fact, event, or contingency that may be a basic assumption of the Contractor with regard to any provision of this Agreement.

June 22, 2022 -53- City of Ridgecrest Franchise Agreement ARTICLE 14: RESOLUTION OF DISPUTES
Should a dispute arise with respect to the performance and obligations of the Parties hereunder, at any time during the Term of this Agreement, the provisions of this Section shall apply. Either Party shall give the other written notice of such dispute. Such notice shall specify a date and location for the Parties to meet and confer in good faith to resolve any dispute that may arise. In the event such dispute cannot be resolved by the Parties themselves within thirty (30) days of such notice, either Party may propose the appointment of a mediator. If the other Party is in agreement, both Parties may refer the matter in dispute to such mediator for advice and non-binding mediation. If the mediator is unable, within 30 days thereafter, to reach a determination as to the matter in dispute in a manner acceptable to the Parties hereto, the matter may be referred by either Party to a Court of competent jurisdiction.

June 22, 2022 -54- City of Ridgecrest Franchise Agreement ARTICLE 15: MISCELLANEOUS PROVISIONS
Section 15.1: Relationship of the Parties
Neither Party to this Agreement shall have any responsibility whatsoever with respect to services provided or contract obligations or liabilities assumed by the other Party hereto, whether accrued, absolute, contingent, or otherwise, or whether due or to become due. The Contractor is an independent Contractor and Agreement holder and nothing in this Agreement shall be deemed to constitute either Party a partner, agent, or legal representative of the other Party or to create any fiduciary relationship between the Parties.

Section 15.2: Notice to Parties
All notices required or provided for in this Agreement shall be provided to the Parties at the following addresses, by personal delivery or deposit in the U.S. Mail, postage prepaid, registered, or certified mail, addressed as specified below. Notices delivered personally shall be deemed received upon receipt; mailed or expressed notices shall be deemed received five (5) days after deposit. A Party may change the address to which notice is given by giving notice as provided herein.

To City:

City of Ridgecrest
Attn: City Manager
100 W. California Ave.

Ridgecrest, CA 93555
To Contractor:

Waste Management of California, Inc.

Attn: Mr. Mike Hammer
9081 Tujunga Ave.

Sun Valley, CA 91352
Section 15.3: Actions of the City in its Governmental Capacity Nothing in this Agreement shall be interpreted as limiting the rights and obligations of the City in its governmental or regulatory capacity, or as limiting the right of the Contractor to bring any legal action against the City, not based on this Agreement, arising out of any act or omission of the City in its governmental or regulatory capacity.

Section 15.4: Binding Effect
This Agreement shall bind and inure to the benefit of the Parties hereto and any successor or assignee acquiring an interest hereunder consistent with the provisions hereof.

June 22, 2022 -55- City of Ridgecrest Franchise Agreement Section 15.5: Amendments
Neither this Agreement nor any provision hereof may be changed, modified, amended, or waived except by written agreement duly executed by both Parties.

Section 15.6: Further Assurance
Each Party agrees to execute and deliver any instruments and to perform any acts as may be necessary or reasonably requested by the other in order to give full effect to this Agreement.

Section 15.7: Assignment and Transfer of Agreement
A. Consent of the City Required. This Agreement shall not be transferred, sold, pledged, hypothecated, leased, or assigned, nor shall any of the rights or privileges herein be transferred, sold, pledged, hypothecated, leased, or assigned, either in whole or in part, nor shall title hereto or thereto, either legal or equitable, or any right, interest or property herein or therein, pass to or vest in any Person, except the Contractor, either by action or inaction of the Contractor, or by operation of law, without the prior written consent of the City, which may be withheld or delayed in its sole and absolute discretion.

The Contractor shall provide written notice of any request to assign or transfer this Agreement, and shall provide the City with any information requested by the City in connection with the proposed transfer including, but not limited to, information regarding the general business qualifications of the proposed assignee, as well as its ability to perform the Collection Services and a statement of its financial resources. The Contractor’s notice of intention to assign this Agreement shall contain a statement of the allocation of dollars in the consideration to be paid by the assignee to the Contractor for: (a) goodwill; (b) equipment; and, (c) any other asset transfer that has any connection with said assignment, all as agreed upon by the Contractor and the assignee. The notice shall also contain a statement showing the method of payment for the consideration and whether the Contractor proposes to hold some security interest as security for the payment of the unpaid balance of the consideration.

The City shall respond to any such request within ninety (90) days after receipt of any information requested by the City pursuant to the preceding sentence. The Contractor acknowledges that, prior to approving such a transfer, the City must find that such a transfer is in the best interests of the public health, safety, and general welfare. Any attempt by the Contractor to effectuate any of the foregoing without such consent of the City shall be null and void, and any effectuation of any of the foregoing without such consent of the City shall constitute an Event of Default resulting in the immediate termination of this Agreement as provided in Section 13.1.A hereof.

Any transfer of this franchise shall constitute the granting of a “new franchise” for purposes of Municipal Code Sections 7-5.104 and 7-5.105. In addition to the procedural requirements of this Section, any transfer is subject to the procedural requirements of these portions of the Municipal Code. Furthermore, any assigned or transferred franchise is subject to the term limitations of Municipal Code Section 7-6.106 as calculated from the original date of the granting of this franchise.

B. Consolidation, Merger, Sale, Transfer, and Change in Control. Subject to the provisions of section

15.7.A above, the Contractor shall not, without the prior written consent of the City, which may be withheld or delayed in its sole and absolute discretion, consolidate with or merge with another entity or permit one (1) or more other entities to consolidate with or merge into it. Notwithstanding the above, any such transaction between Contractor and an Affiliate shall not be considered an June 22, 2022 -56- City of Ridgecrest Franchise Agreement assignment or transfer for purposes of this Section, and the City’s consent to such transaction is not required.

C. Transfer of Voting Stock. The City's prior written consent, which may be withheld or delayed in its sole and absolute discretion, shall be required for the sale or transfer by any means, whether by agreement or by operation of law (including transfers resulting from death, bankruptcy, or divorce), of any of the voting stock of the Contractor. Notwithstanding the above, any such transaction between Contractor and an Affiliate shall not be considered an assignment or transfer for purposes of this Section, and the City’s consent to such transaction is not required.

D. Reimbursement of Cost Related to Assignment Review. If the Contractor requests the consent of the City for any transaction described in Section hereof (except for those transactions described in subsections B. and C. above between Contractor and an Affiliate), the proposed assignee, as a condition of assignment, shall reimburse the City for all costs and expenses incurred by the City in reviewing, examining, and analyzing the request, including all direct and indirect administrative expenses of the City and consultants and attorney’s fees and expenses. Along with its written request for the review of the assignment, Contractor shall remit to City an assignment review fee in the amount of one hundred thousand dollars ($100,000), which shall be intended to compensate the City of the costs of its review of the requested assignment. Such fee shall not be refundable to the Contractor in the event that the City determines, in its sole discretion, that the proposed assignment is unacceptable. In the event that the City’s total costs for the review of the assignment exceed one hundred thousand dollars ($100,000), the assignee shall compensate the City for its actual and reasonable costs within thirty (30) days of receiving the City’s invoice. Such costs shall be supported with evidence of the expense or cost incurred.

E. Transfer Fee. On the date the City approves the Contractor’s written request for an assignment, Contractor shall pay the City a transfer fee in the amount of one percent (1%) of the Gross Receipts for the most-recently completed Rate Period. The City’s approval of such an assignment shall be conditioned on the receipt of the transfer fee.

Section 15.8: Interpretation
In this Agreement, unless the context otherwise requires:

A. References Hereto. The terms "hereby," "hereof," "herein," hereunder," and any similar terms refer to this Agreement, and the term "hereafter" means after, and the term "heretofore" means before, the date of execution of this Agreement.

B. Gender and Plurality. Words of the masculine gender mean and include correlative words of the feminine and neuter genders, and words importing the singular number mean and include the plural number and vice versa.

C. Persons. Words importing Persons include firms, companies, associations, general partnerships, limited partnerships, trusts, business trusts, corporations, non-profit corporations, and other legal entitles, including Governmental Bodies, as well as individuals.

D. Headings. The table of contents and any headings preceding the text of the articles, sections, and subsections of this Agreement shall be solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction, or effect.

E. Entire Agreement. This Agreement contains the entire Agreement between the Parties hereto with respect to the transactions contemplated by this Agreement. Furthermore, nothing in this June 22, 2022 -57- City of Ridgecrest Franchise Agreement Agreement is intended to confer on any Person other than the Parties hereto and their respective successors and assigns hereunder any rights or remedies under or by reason of this Agreement.

F. Reference to Days. All references to days herein are to calendar days, including Saturdays, Sundays, and holidays, except as otherwise specifically provided.

G. Units of Measure. Weights or volumes described herein may be reported in either metric or U.S.

Standard terms of measurement, unless State or Federal law or regulation specifies the system of measurement to be used.

H. Counterparts. This Agreement may be executed in any number of original counterparts. All such counterparts shall constitute but one and the same Agreement.

I. Applicable Law. This Agreement shall be governed by, and construed in accordance with, Applicable Law. This Agreement is intended to be fully consistent with the requirements of the Ridgecrest Municipal Code and any subsequent amendments thereto. In the event there is an inconsistency or conflict between this Agreement and the Municipal Code, the Municipal Code is controlling and shall substitute for the inconsistent provision.

J. Severability. If any clause, provision, subsection, section, or article of this Agreement shall be determined to be invalid by any court of competent jurisdiction, then the Parties hereto shall:

1. Promptly meet and negotiate a substitute for such clause, provision, section, or article which shall, to the greatest extent legally permissible, effect the intent of the Parties therein.

2. If necessary or desirable to accomplish item (1) above, apply to the court having declared such invalidity for a judicial construction of the invalidated portion of this Agreement.

3. Negotiate such changes in, substitutions for or additions to, the remaining provisions of this Agreement as may be necessary in addition to and in conjunction with items (1) and (2) above, to effect the intent of the Parties in the invalid provision. The invalidity of such clause, provision, subsection, section, or article shall not affect any of the remaining provisions hereof, and this Agreement shall be construed and enforced as if such invalid portion did not exist.

Section 15.9: Jurisdiction
Any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of Kern County in the State of California, which shall have exclusive jurisdiction over such lawsuits.

With respect to venue, the Parties agree that this Agreement is made in and will be performed in Kern County.

Section 15.10: Entire Agreement
This Agreement, including the Exhibits, represents the full and entire Agreement between the Parties with respect to the matters covered herein. Each of the Exhibits identified as Exhibits "A" through “G” is attached hereto and incorporated herein and made a part hereof by this reference.

June 22, 2022 -58- City of Ridgecrest Franchise Agreement IN WITNESS WHEREOF, the Parties have executed this Agreement on the dates stated below:

Dated: _____________, 2022. Dated: _____________, 2022.

City of Ridgecrest Waste Management of California, Inc.

By: ____________________________ By: __________________________ Ron Strand, City Manager Mike Hammer, President
Attest:

By: ____________________________
, City Clerk
Dated: _____________, 2022
Approved as to Form:

By: ____________________________
, City Attorney
EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-1 Franchise Agreement, Exhibit A
For purposes of this Agreement, unless a different meaning is clearly required, the following words and phrases shall have the following meanings respectively ascribed to them by this Exhibit and shall be capitalized throughout this Agreement:
“AB 341” means the Assembly Bill approved by the Governor of the State of California on October 5, 2011, which amended Sections 41730, 41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections 40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time. “AB 1826” means the Assembly Bill approved by the Governor of the State of California on September 28, 2014, which added Chapter 12.9 (commencing with Section 42649.8) to Part 3 of Division 30 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time.
"AB 939" means the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code), as amended, supplemented, superseded, and replaced from time to time. “AB 939/SB 1383 Reimbursement” means a reimbursement to City by Contractor for expenses including but not limited to, staffing costs related to City programs, pilot studies, education and outreach campaigns, technical assistance to Customers, reporting, compliance, capacity planning, provision of special containers, or other activities involved in compliance with AB 939 and/or SB 1383. "Affiliate(s)" means any person, corporation, or other entity directly or indirectly controlling or controlled by another person, corporation, or other entity; or, under direct or indirect common management or control with such person, corporation, or other entity. As between any two (2) or more Persons or entities, when ten percent (10%) of one is owned, managed, or controlled by another, they are Affiliates of one another for the purposes of this Agreement.
"Agreement" means this Amended and Restated Solid Waste Franchise Agreement between the City and the Contractor.
"Agreement Date" means the date of approval of this Solid Waste Franchise Agreement by the City. "Agreement Year" means a twelve- (12) month period beginning on January 1 of each year and ending on the following December 31 each year during the Term of this Agreement provided, however, that the first Agreement Year will commence on the Agreement Date and the last Agreement Year will end on thedate of termination of this Agreement.
"Annual Percentage Change" means the average of the percentage monthly changes in the value of an index for the twelve- (12) month period ending December of the then-current Rate Period minus the average of the percentage monthly changes in the index value for the twelve- (12) month period ending December of the most-recently completed Rate Period. The Annual Percentage Change shall be rounded to the nearest thousandth (0.000). For example, if the Contractor is preparing its Rate application for Rates to be effective for Rate Period Two, the Annual Percentage Change in CPI shall be calculated as follows: [(Average CPI for January 2015 through December 2015) - (Average CPI for January 2014 through December 2014)] / (Average CPI for January 2014 through December 2014)].

EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-2 Franchise Agreement, Exhibit A
"Applicable Law" means any law, rule, regulation, requirement, guideline, permit, action, determination, or order of any Governmental Body having jurisdiction, applicable from time to time to the Collection Services; the Operating Assets; the siting, design, acquisition, permitting, construction, equipping, financing, Ownership, possession, shakedown, testing, operation, or maintenance of any of the Operating Assets; or, any other transaction or matter contemplated hereby (including any of the foregoing which concern health, safety, fire, governmental protection, accommodation of the disabled, labor relations, mitigation monitoring plans, building codes, nondiscrimination and the payment of minimum wages, the payment of per-ton charges on solid waste facilities imposed by a governmental entity other than the City, data security, privacy, confidentiality, intellectual property, and further including the Kern County Code and the County Integrated Waste Management Plan and the City's SRRE).
“Approved Disposal Facility” means the landfill or transfer station, selected by City, where Solid Waste Collected under this Agreement is sent for final Disposal. The Approved Disposal Facility is the Ridgecrest Landfill located at 3301 Bowman Road, Ridgecrest, CA 93555. “Approved Facility(ies)” means any one (1) of or any combination of the: Approved Recyclable Materials Processing Facility; Approved Organic Materials Processing Facility; Approved Recyclable Materials Transfer Facility; Approved Organic Materials Transfer Facility; and/or Approved Disposal Facility. “Approved Organic Materials Processing Facility” means any destination facility, that qualifies for diversion credit in accordance with Applicable Law, to which Organic Material is transported following initial receipt and transfer at the Approved Organic Materials Transfer Facility. “Approved Organic Materials Transfer Facility” means the Ridgecrest Landfill located at 3301 Bowman Road, Ridgecrest, CA 93555.
“Approved Processing Facility(ies)” means any one of or any combination of the: Approved Recyclable Materials Processing Facility; Approved Organic Materials Processing Facility; Approved Organic Materials Transfer Facility; or, Approved Recyclable Materials Transfer Facility. "Approved Recyclable Materials Processing Facility" Means Azusa Transfer Station and material recovery facility located at 1505 Gladstone Street, Azusa, CA 91702. "Approved Recyclable Materials Transfer Facility" Means the Dave Pearsons Recycling Center located at1536 N. Mahan Street, Ste. A, Ridgecrest, CA 93555 .
"Base Rate" means the Rate charged for basic Solid Waste Collection Services, including Recyclable Materials in a specified area, as authorized by the City, absent any discounts offered by the Contractor as specified in Exhibit C32.
"Bin" means a Container with capacity of approximately one (1) to six (6) cubic yards, with a hinged lid, and with wheels (where appropriate), that is serviced by a front end-loading collection Vehicle. "Bulk Container" means a Container having a capacity of one (1) or more cubic yards. "Bulky Waste” Green Waste, and/or wood waste, and similar large items that can be handled by two (2) people, weigh no more than two hundred (200) pounds, and require special Collection due to their size EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-3 Franchise Agreement, Exhibit A
or nature, but can be Collected without the assistance of special loading equipment (such as forklifts or cranes) and without violating Vehicle load limits. Bulky Waste must be generated by the Customer and at the service address wherein the Bulky Waste are Collected. Bulky Waste do not include abandoned automobiles, large auto parts, trees, Construction and Demolition Debris, or items herein defined as Excluded Waste.
"Bureau of Labor Statistics (BLS)" shall mean the U.S. Department of Labor, Bureau of Labor Statistics or itssuccessor agency.
"Business Days" mean days during which the City offices are open to do business with the public. “California Code of Regulations (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 CCR).
"CalRecycle" means the Department of Resources Recycling and Recovery, and any Governmental Body that succeeds to its duties and powers under Applicable Law. "Cart" means a plastic Container with a hinged lid and wheels that is serviced by an automated or semiautomated Collection Vehicle. A Cart has capacity of thirty-five (35) to ninety-six (96) gallons (or similar volumes). Cart sizes vary depending on the manufacturer, and any reference to Cart sizes in this Agreement is an approximation.
"CEQA" means the California Environmental Quality Act codified at California Public Resources Code Section 21000 etseq., as amended or superseded, and the regulations promulgated thereunder. "Change in Law" means any of the following events or conditions that have a material and adverse effect on the Contractor’s performance ofthe Collection Services (except for payment obligations):

A. The enactment, adoption, promulgation, issuance, modification, or written change in administrative or judicial interpretation on or after the Agreement Date of any Applicable Law; or,
B. The order or judgment of any Governmental Body, on or after the Agreement Date to the extent such order or judgment is not the result of willful or negligent action, error or omission, or lack of reasonable diligence of the City or of the Contractor, whichever is asserting the occurrence of a Change in Law provided, however, that the contesting in good faith or the failure in good faith to contest any such order or judgment shall not constitute or be construed as such a willful or negligent action, error or omission, or lack of reasonable diligence.
"City" means the City of Ridgecrest, California, a political subdivision of the State, acting through its City Council.
"City Contract Manager" means the City Manager or their designated representative who is responsible for the administrative management of this Agreement.
"City Fees" shall mean those fees described in Section 10.1 of this Agreement.

EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-4 Franchise Agreement, Exhibit A
"Collect" or "Collection" (or any variation thereof) means the act of taking possession of Recyclable Materials, Organic Materials, Solid Waste, Bulky Waste, and other materials at the place of generation in the City.
"Collection Premises" means the Residential Premises, Non-Residential Premises, or both, for which the Contractor is authorized to provide Collection Services. "Collection Services" means all of the duties and obligations of the Contractor hereunder. "Commercial" shall mean of, from, or pertaining to non-Residential Premises where business activity is conducted including, but not limited to, retail sales, services, wholesale operations, manufacturing, and industrial operations, but excluding businesses conducted upon Residential property, which are permitted under applicable zoning regulations and are not the primary use of the property. “Community Composting” means any activity that composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed one hundred (100) cubic yards and seven hundred fifty (750) square feet, as specified in 14 CCR Section 17855(a)(4); or as otherwise defined in 14 CCR Section 18982(a)(8).
"Compactor" means a mechanical apparatus that compresses materials together with the Container that holds the compressed materials or the Container that holds the compressed materials if it is detached from the mechanical compaction apparatus. Compactors include two (2) to eight (8) cubic yard Bin Compactors serviced by front-end loader Collection Vehicles and ten (10) to fifty (50) cubic yard Drop Box Compactors serviced by Roll-Off Collection Vehicles. “Complaint” shall mean each written or orally communicated statement made by any Person, whether to City or Contractor, alleging: (1) nonperformance, or deficiencies in Contractor’s performance, of its duties under this Agreement; (2) a violation by Contractor of this Agreement; or, (3) an SB 1383 Non-Compliance Complaint. “Composting” or “Compost” (or any variation thereof) includes a controlled biological decomposition of Organic Materials yielding a safe and nuisance free Compost product. “Construction and Demolition Debris (C&D)” includes discarded building materials, packaging, debris, and rubble (including rocks, soils, tree remains, and other Yard Trimmings which results from land clearing or land development operations in preparation for construction) resulting from construction, alteration, remodeling, repair, or demolition operations on any pavements, excavation projects, houses, Commercial buildings, or other structures. Construction and Demolition Debris excludes Excluded Waste. "Consumer Price Index (CPI)" shall mean the All Urban Consumers Index (CPI-U) compiled and published by the BLS, using the following parameters:
• Area - San Francisco-Oakland-Hayward, CA Item -All Items • Base Period - Current 1982-84=100
• Notseasonally adjusted
• Periodicity- Bi-Monthly
• Series IdentificationNumber - CUURA422SA0 CUURS49BSA0 EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-5 Franchise Agreement, Exhibit A
"Container(s)" mean Bins, Carts, Compactors, and Drop Boxes. “Contamination Notice” means the notice as described in Section 4.4.O. "Contractor" means Contractor organized and operating under the laws of the State and its officers, directors, employees, agents, companies, related-parties, affiliates, subsidiaries, and Subcontractors. "Contractor's Compensation" shall mean the total amount to be used as a basis for determining the Rate Adjustment Factor. The Total Contractor's Compensation does not reflect, or in any way guarantee, the Gross Receipts that are to be generated by Rates or retained by the Contractor. "Customer" means Person who subscribes for service with Contractor. "Customer Type" means the Customer's sector category including, but not limited to, Residential, Commercial, and City Facilities.
"County" meansthe County of Kern, California, a politicalsubdivision of the State, acting through itsBoard of Supervisors.
"Designated Collection Location" refers to the location, at each Collection Premise, where Containers of Discarded Materials are customarily placed for collection in accordance with Section 4.6 herein. “Discarded Materials” means Recyclable Materials, Organic Materials, and Solid Waste placed by a Generator in a receptacle and/or at a location for the purposes of Collection by Contractor, excluding Excluded Waste.
"Dispose" or "Disposal" (or any variation thereof) means the final disposition of Solid Waste or Residual Waste at a Disposal Facility.
“Disposal Facility” means a landfill or other facility designed for ultimate Disposal of Solid Waste or Residual Waste.
“Divert” or “Diversion” (or any variation thereof) means to prevent Discarded Materials from Disposal at landfill or transformation facilities (including facilities using incineration, pyrolysis, distillation, gasification, or biological conversion methods) through source reduction, reuse, Recycling, Composting, anaerobic digestion, or other method of Processing, subsequent to the provisions of AB 939. Diversion is a broad concept that is to be inclusive of material handling and Processing changes that may occur over the Term including, but not limited to, changes in standard industry practice or implementation of innovative (but not necessarily fully proven) techniques or technology that reduce Disposal risk, decrease costs, and/or are for other reasons deemed desirable by the City. "Drop Box" means an open-top Container with a capacity of ten (10) to fifty (50) cubic yards that is serviced by a Roll-Off Collection Vehicle.
“Dwelling Unit” means any individual living unit in a Single-Family dwelling (SFD) or Multi-Family dwelling (MFD) structure or building, a mobile home, or a motor home located on a permanent site intended for, or capable of being utilized for, Residential living other than a hotel or motel.

EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-6 Franchise Agreement, Exhibit A
“Edible Food” means food intended for human consumption. For the purposes of this Agreement, Edible Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement requires or authorizes the recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this Agreement. “Effective Date” means the date on which the latter of the two Parties signs this Agreement. "Electronic Waste (E-Waste)" means discarded electronic equipment including, but not limited to, televisions, computer monitors, central processing units (CPUs), laptop computers, computer peripherals (including external hard drives, keyboards, scanners, and mice), printers, copiers, facsimile machines, radios, stereos, stereo speakers, VCRs, DVDs, camcorders, microwaves, telephones, cellular telephones, and other electronic devices. Some E-Waste or components thereof may be Hazardous Waste and thus require special handling, Processing, or Disposal. "Emergency Services" means Discarded Materials Collection Services, other than those specified under this grant of Agreement, provided during or as a result of an emergency that threatens the public health or safety, as determined by the City Contract Manager.
"Employment Cost Index (ECI)" means the Employment Cost Index, Wages and salaries for Private industry workers in the Pacific Census Division [CIU2020000000249I], published by the U.S. Bureau of Labor Statistics, not seasonally adjusted.
"Event of Default" means only the events described in Sections 7.3 and 13.1.A. "Excluded Waste" means Hazardous Waste, Infectious Waste, U-Waste, E-Waste, volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material, waste that Contractor reasonably believes would, as a result of or upon Disposal, be a violation of local, State or Federal law, regulation or ordinance, including land use restrictions or conditions, waste that cannot be Disposed of in Class Ill landfills, waste that in Contractor's reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Contractor or City to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after implementation of programs for the safe Collection, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code.
“Federal” means belonging to or pertaining to the Federal government of the United States. “Food Recovery” as defined in 14 CCR Section 18982(a)(25) means actions to Collect and distribute food for human consumption that otherwise would be Disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
“Food Recovery Organization” means an entity that primarily 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:

A. A food bank as defined in Section 113783 of the Health and Safety Code; EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-7 Franchise Agreement, Exhibit A
B. A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code; and,
C. A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code.
“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). “Food Scraps" means those Discarded Materials that will decompose and/or putrefy including: (i) all kitchen and table Food Waste; (ii) animal or vegetable waste that is generated during or results from the storage, preparation, cooking or handling of food stuffs; (iii) fruit waste, grain waste, dairy waste, meat, and fish waste; and, (iv) vegetable trimmings, houseplant trimmings, and other Compostable Organic Waste common to the occupancy of Residential dwellings. Food Scraps are a subset of Food Waste. “Food-Soiled Paper” means Compostable paper material that has come in contact with Food Scraps or liquid, such as, but not limited to, Compostable paper plates, napkins, and pizza boxes. Food-Soiled Paper is a subset of Food Waste.
“Food Waste” means Source Separated Food Scraps and Food-Soiled Paper. Food Waste is a subset of Organic Materials.
"Franchise Fee" means the fee paid by Contractor to the City for the privilege to hold the rights granted by this Agreement.
"Fuel Index" means the California No 2 Diesel Ultra Low Sulfur (0-15 ppm) Retail Prices (Dollars per Gallon), published by the U.S. Energy Information Administration. "Generator'' means any Person whose act or process produces Discarded Materials as defined in the Public Resources Code, or whose act first causes Discarded Materials to become subject to regulation. "Governmental Body" means any Federal, State, County, city or regional legislative, executive, judicial or other governmental board, agency, authority, commission, administration, court or other body, or any officer thereof acting within the scope of their authority. "Governmental Fee" shall mean any fee or surcharge imposed by a governmental entity other than the City including without limitation the State, County, or Local Enforcement Agency. Governmental Fees are a component of the Tipping Fee.
"Green Waste" means those Discarded Materials that will decompose and/or putrefy including, but not limited to, green trimmings, grass, weeds, leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees, small pieces of unpainted and untreated wood, and other types of Organic Materials resulting from normal yard and landscaping maintenance that may be specified in City Legislation for Collection and Processing as Organic Materials under this Agreement. Green Waste does not include items herein defined as Excluded Waste. Green Waste is a subset of Organic Materials. Green Waste placed for Collection may not exceed six (6) inches in diameter and three (3) feet in length and must fit within the Contractor-provided Container. Acceptable Green Waste may be added to or removed from this list from EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-8 Franchise Agreement, Exhibit A
time to time by mutual consent or at the sole discretion of the City. Contractor shall not add or remove materials to or from this list without written approval from the City Contract Manager or signed amendment to the Agreement, and such approval shall not be unreasonably withheld. "Gross Receipts" shall mean total cash receipts collected from Customers by the Contractor for the provision of services pursuant to this Agreement, without any deductions. Gross Receipts do not include revenues from the sale of Recyclable Materials.
“Hazardous Substance” means any of the following: (a) any substances defined, regulated, or listed (directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Wastes", "toxic waste", "pollutant", or "toxic substances", or similarly identified as hazardous to human health or the environment, in or pursuant to: (i) the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of 1980, 42 USC §9601 et seq. (CERCLA); (ii) the Hazardous Materials Transportation Act, 49 USC §1802, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) the Clean Water Act, 33 USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, and 25316; (vi) the Clean Air Act, 42 USC §7901 et seq.; and, (vii) California Water Code §13050; (b) any amendments, rules or regulations promulgated thereunder to such enumerated statutes or acts currently existing or hereafter enacted; and, (c) any other hazardous or toxic substance, material, chemical, waste, or pollutant identified as hazardous or toxic or regulated under any other Applicable Law currently existing or hereinafter enacted including, without limitation friable asbestos, polychlorinated biphenyl’s (PCBs), petroleum, natural gas, and synthetic fuel products and by-products. “Hazardous Waste” means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State in Health and Safety Code §25110.02, §25115, and §25117, or in the future amendments to or recodifications of such statutes or identified and listed as solar panels from residential premises, and Hazardous Waste by the U.S. Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seq.), all future amendments thereto, and all rules and regulations promulgated thereunder. "Household Hazardous Waste" or “HHW” means Hazardous Waste generated at Residential Premises within the City. HHW includes: paint, stain, varnish, thinner, adhesives, auto products such as old fuel, used motor oil and filter, used oil filter, batteries, household batteries, fluorescent bulbs , tubes, cleaners and sprays, pesticides, fertilizers and other garden products, needles, syringes, and lancets. "Infectious Waste" means biomedical waste generated at hospitals, public or private medical clinics, dental offices, research laboratories, pharmaceutical industries, blood banks, mortuaries, veterinary facilities, and other similar establishments that are identified in Health and Safety Code Section 25117.5 as may be amended from time to time.
"Insurance Requirement" means any rule, regulation, code, or requirement issued by any fire insurance rating bureau or anybody having similar functions or by any insurance company that has issued a policy with respect to the Operating Assets or the Collection Services. "Legal Proceeding" means every action, suit, litigation, arbitration, administrative proceeding, and other legal or equitable proceeding having a bearing upon this Agreement. "Line of Business" means any of the following services provided by the Contractor: Residential Solid Waste, Residential Recycling, Residential Organic Materials, Commercial Solid Waste, Commercial Recycling, and Commercial Organic Materials.

EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-9 Franchise Agreement, Exhibit A
"Liquid Waste" means watered or dewatered sewage orsludge. "Liquidated Damages" means the amounts due by Contractor for failure to meet specific quantifiable standards of performance as described in Section 13.2.
"Medical Waste" means waste capable of producing an infection or pertaining to or characterized by the presence of pathogens including, without limitation, certain wastes generated by medical practitioners, hospitals, nursing homes, medical testing labs, mortuaries, taxidermists, veterinarians, veterinary hospitals and medical testing labs, and waste that includes animal wastes or parts from slaughterhouses or rendering plants.
“Multi-Family” or “MFD” means any Residential Premises, other than a Single-Family Premises, with five (5) or more Dwelling Units used for Residential purposes (regardless of whether residence therein is temporary or permanent), including such Premises when combined in the same building with Commercial establishments, that receive centralized, shared, Collection service for all units on the Premises that are billed to one (1) Customer at one (1) address. Customers residing in townhouses, mobile homes, condominiums, or other structures with five (5) or more Dwelling Units who receive individual service and are billed separately shall not be considered Multi-Family. "Municipal Code" means the City's Codified Ordinances, as the same may be amended, supplemented, or modified from time to time.
"Non-Residential Premises" means those parcels of real property not classified under the use codeslisted in the Schedule of Solid Waste Management Program Service Charges for Residential Property, and made a part hereof, as amended by the City Council from time to time. "Non-Residential Waste" means Solid Waste, Recyclable Materials, and Organic Materials generated, produced, or discarded by or atNon-ResidentialPremises. “Occupant” means the Person who occupies a Premises.
"Operating Assets" means all real and personal property of any kind that is owned, leased, managed, or operated by ( or under contract to) the Contractor for providing the Collection Services, including without limitation the Containers, Vehicles, Transfer stations, maintenance and storage facilities, administrative facilities, and other equipment, machinery, parts, supplies, and tools. “Organic Materials” means Green Waste and Food Waste, individually or collectively. No Discarded Material shall be considered to be Organic Materials, however, unless it is separated from Recyclable Material and Solid Waste. Organic Materials are a subset of Organic Waste. “Organic Waste” means wastes containing material originating from living organisms and their metabolic waste products including, but not limited to, food, Green Waste, untreated lumber, untreated wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively. Notwithstanding the foregoing, paper products and printing and writing paper shall be Collected by Contractor as Recyclable Material under this Agreement.

EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-10 Franchise Agreement, Exhibit A
"Owner" means the person holding the legal title or having a right to possession of the real property constituting the Collection Premises to which Discarded Material Collection Service is provided orrequired to be provided hereunder.
"Party or Parties" refers to the City and Contractor, individually or together. "Person(s)" means any individual, firm, association, organization, partnership, corporation, trust, joint venture, or public entity.
"Premises" means any land or building in the City where Discarded Materials are generated or accumulated.
"Process" or "Processing" (or any variation thereof) means to prepare, treat, or convert through some special method.
"Processing Facility" refers to any facility that removes Recyclable Materials or Organic Waste from Solid Waste prior to the delivery of Solid Waste, Recyclable Materials, and Organic Waste to the City Disposal system.
“Prohibited Container Contaminants” means, in accordance with 14 CCR Section 18982.1(55) the following: (i) Discarded Materials placed in the Recyclable Materials Container that are not identified as acceptable Recyclable Materials for the City’s Collection program; (ii) Discarded Materials placed in the Organic Materials Container that are not identified as acceptable Organic Materials for the City’s Collection program; (iii) Discarded Materials placed in the Solid Waste Container that are acceptable Recyclable Materials and/or Organic Materials to be placed in the City’s Recyclable Materials or Organic Materials Containers or otherwise managed under the City’s Collection program; and, (iv) Excluded Waste placed in any Container.
"Rate" meansthe maximum amount, expressed as a dollar unit, approved by the City that the Contractor may bill a Customer for providing services under this Agreement. A Rate has been established for each individual Service Level and the initial Rates for Rate Period One are presented in Exhibit C3. The Rates approved by City are the maximum Rate that Contractor may charge a Customer and Contractor may, in its sole discretion, charge any amount up to and including the maximum Rate approved by the City. "Rate Adjustment Factor" shall mean the amount, expressed as a percentage, by which each of the operating, Disposal, Processing, and fee components of each Rate are adjusted. The Rate Adjustment Factor for each component shall be calculated separately. "Rate Period" means a twelve (12) month period, commencing July 1 and concluding June 30, excepting Rate Period One.
"Rate Period One" means the first Rate Period covered by this Agreement. Rate Period One shall beginon January 1, _____ and shall end on June 30, _____.
"Recovered Materials" means the products, excluding Residual Waste, produced by the Processing of Recyclable Materials or Organic Materials.

EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-11 Franchise Agreement, Exhibit A
"Recyclable Materials" means those Discarded Materials that the Generators set out in Recyclable Materials Containers for Collection for the purpose of Recycling by the Contractor and that exclude Excluded Waste. No Discarded Materials shall be considered Recyclable Materials unless such material is separated from Organic Materials and Solid Waste. Recyclable Materials shall include, but not be limited to: newspaper (including inserts, coupons, and store advertisements); mixed paper (including office paper, computer paper, magazines, junk mail, catalogs, brown paper bags, brown paper, paperboard, paper egg cartons, telephone books, grocery bags, colored paper, contain paper, envelopes, legal pad backings, shoe boxes, cereal, and other similar food boxes, chipboard, corrugated Cardboard, glass containers of any color (including brown, clear, and green glass bottles and jars), aluminum (including beverage containers and small pieces of scrap metal), steel, tin, or bi-metal cans, and rigid plastics with a neck. Recyclable Materials excludes paper tissues, paper towels, paper contaminated with food, Tyvek (non-tearing paper envelopes), film plastic (when clean, dry, and contained inside of a plastic bag), and expanded Polystyrene (EPS). Acceptable Recyclable Materials may be added to or removed from this list from time to time by mutual consent or at the sole discretion of the City. Contractor shall not add or remove materials to or from this list without written approval from the City Contract Manager or signed amendment to the Agreement, and such approval shall not be unreasonably withheld. “Recycle, Recycled or Recycling” means the Process of sorting, cleansing, treating, and reconstituting (at a Recyclable Materials Processing Facility) materials that would otherwise be Disposed of at a landfill for the purpose of returning such materials to the economy in the form of raw materials for new, reused, or reconstituted products. Recycling includes Processes deemed to constitute a reduction of landfill Disposal pursuant to 14 CCR, Section 18983.1(b). Recycling does not include gasification or transformation as defined in Public Resources Code Section 40201.
"Residential" shall mean of, from, or pertaining to a Single-Family Dwelling Unit or Multi-Family Dwelling Unit, including Single-Family homes, apartments, condominiums, townhouse complexes, mobile home parks, and cooperative apartments.
"Residual Waste" or “Residue” means those materials that, after Processing, are Disposed rather than Recycled due to either the lack of markets for materials or the inability of the Processing Facility to capture and recover the materials.
"Roll-Off" means Discarded Material pick-ups using Bulk Containers mounted on rail wheels or similar wheels and using special trucking equipment for transporting the Bins and Containers. “Route” 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). "Routing and Collection System" means the Routing and Collection System for Discarded Materials that is in effect as of the effective date of this Agreement. “SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time.

EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-12 Franchise Agreement, Exhibit A
For the purposes of this Agreement, SB 1383 specifically refers to the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted on November 3, 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR. "Scrap Materials" means any materials that are separated by type of Generator thereof from materials that otherwise are discarded or rejected by the Generator as Solid Waste and Recyclable Materials and that are sold or donated by the Generator to a private recycler, scrap dealer, or salvager and Recycled.

Scrap Materials shall not include any materials that: (1) are commingled with Solid Waste and Recyclable Materials; or, (2) are not commingled with Solid Waste and Recyclable Materials, but that are Collected by any person other than the Contractor as part of any transaction or arrangement involving Solid Waste and Recyclable Materials, irrespective of whether the Generator pays or receives consideration in connection with such transaction or arrangement.
“Self-Hauler” or “Self-Haul” means a Person who hauls Discarded Materials, recovered material, or any other material, to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66). Self-Hauler also includes a Person who back-hauls waste, as defined in 14 CCR Section 18982(a)(66)(A). "Service Level" refers to the size of a Customer's Container and the frequency of Collection Services. “Single-Family” or “SFD” means, notwithstanding any contrary definition in City Municipal Code, any detached or attached house or residence designed or used for occupancy by one (1) family, provided that Collection service feasibly can be provided to such Premises as an independent unit, and the Owner or Occupant of such independent unit is billed directly for the Collection service. Single-Family includes townhouses, and each independent unit of duplex, tri-plex, or four-plex Residential structures, regardless of whether each unit is separately billed for their specific Service Level. "Solid Waste" means Solid Waste as defined in California Public Resources Code, Division 30, Part 1, Chapter 2, §40191 and regulations promulgated hereunder. Excluded from the definition of Solid Waste are Excluded Waste, C&D, Source Separated Recyclable Materials, Source Separated Organic Materials, and radioactive waste. Notwithstanding any provision to the contrary, Solid Waste may include de minimis volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after implementation of programs for the safe Collection, Recycling, treatment, and Disposal of Household Hazardous Waste in compliance with Section 41500 and 41802 of the California Public Resources Code as may be amended from time to time. Solid Waste includes salvageable materials only when such materials are included for Collection in a Solid Waste Container not Source Separated from Solid Waste at the site of generation.
“Source Separated” means the segregation, by the Generator, of materials designated for separate Collection for some form of Recycling, Composting, recovery, or reuse. "Special Circumstance" means a circumstance that, when occurring, permits (but does not require) the Contractor or the City to seek an adjustment in the Rates for Collection Services, and that then requires City Contract Manager to review such application and make a recommendation to the City Council as to whether the Base Rate should be adjusted up or down, or remain unchanged. The continuing need for any and all previously-approved Special Circumstance Rate adjustments shall be reviewed at the time of each subsequent Rate adjustment.

EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-13 Franchise Agreement, Exhibit A
"Special Service" means a level of Discarded Material Collection Service in excess of that offered by the Contractor as its basic level of service, at an additional cost to the Customer and may include, but is not limited to, backyard pickup, additional Containers, or more frequent Collections. "Special Service" does not mean the reasonable accommodation of an individual with a disability. The charge for any Special Service shall be reviewed by the City Contract Manager. “State” means the State of California.
"Subcontractor" means every person (other than employees of the Contractor) employed or engaged by the Contractor or any person directly in privity with the Contractor (including every Subcontractor of whatever tier) for any portion of the Collection Services, whether for the furnishing of labor, materials, equipment, supplies, services, or otherwise.
"Term" means the Term of this Agreement, including extension periods if granted, as provided for in Section 3.1.
“Tier One Commercial Edible Food Generator” as defined in 14 CCR Section 18982(a)(73) means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982:

A. Supermarket.

B. Grocery store with a total facility size equal to or greater than 10,000 square feet.

C. Food Service Provider.

D. Food Distributor.

E. Wholesale Food Vendor.
“Tier Two Commercial Edible Food Generator” as defined in 14 CCR Section 18982(a)(74) means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982:

A. Restaurant with two hundred fifty (250) or more seats, or a total facility size equal to or greater than five thousand (5,000) square feet.

B. Hotel with an on-site food facility and two hundred (200) or more rooms.

C. Health facility with an on-site food facility and one hundred (100) or more beds.

D. Large Venue.

E. Large Event.

F. A State agency with a cafeteria with two hundred fifty (250) or more seats or total cafeteria facility size equal to or greater than five thousand (5,000) square feet.

G. A local education agency with an on-site food facility. "Tipping Fee" shall mean the Rate or Tipping Fee charged for each Ton or unit of material delivered to the Approved Facility(ies). The Parties acknowledge that the timing of changesto the Tipping Feesfor facilities that are not owned or operated by Contractor or their subcontractor may not align with the review and adjustment of Rates under this Agreement. In the event that the Contractor begins to pay new Tipping Fees at another facility approved by the City, other than one owned and operated by Contractor or their Subcontractor, prior to the adjustment of Rates under this Agreement, the adjustment to the Rate Adjustment Factor shall consider that period. Alternatively, the City reserves the right to adjust Rates at any time during the year in order to address changes in Tipping Fees alone without adjusting any other component of Rates. The "current approved" Tipping Fees shall be the Tipping Fees in place on January 1 immediately preceding the submission of the Rate Application.

EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-14 Franchise Agreement, Exhibit A
"Ton" or "Tonnage" means a unit of measure for weight equivalent to two thousand (2,000) standard pounds where each pound contains sixteen (16) ounces.
"Transfer" means the act of transferring the materials Collected by Contractor in their route Vehicles into larger Vehicles for Transport to other facilities for the purpose of Recycling or Disposing of such materials.
"Transport" or "Transportation" (or any variation thereof) means the act of conveyance from one place to another or state of being Transported.
"Uncontrollable Circumstance" means only one (1) or more of the following specified acts, events, or conditions, whether affecting the Operating Assets, the Approved Facility(ies), the City, or the Contractor, to the extent that it materially and adversely affects the ability of the Contractor to perform any obligation under the Agreement (except for payment obligations), if such act, event or condition is beyond the reasonable control, and is not also the result of the willful or negligent act, error, or omission, or failure to exercise reasonable diligence on the part of the Contractor provided, however, that the contesting in good faith or the failure in good faith to contest such action or inaction shall not be construed as willful or negligent action or a lack of reasonable diligence of the Contractor:

A. An act of God (but not including reasonably anticipated weather conditions for the City), hurricane, landslide, lightning, earthquake, fire, explosion, flood, sabotage or similar occurrence, acts of a public enemy, extortion, war, blockade or insurrection, riot or civil disturbance, pandemic, or epidemic.

B. A Change in Law (as defined herein).

C. Preemption of materials or services by a Governmental Body in connection with a public emergency or any condemnation or other taking by eminent domain of any portion of the Operating Assets.

D. The first seven (7) days of a strike, work stoppage, or other labor dispute or disturbance occurring with respect to any activity performed or to be performed by the Contractor or any of the Contractor's Subcontractors in connection with the Operating Assets or the Collection Services, provided the Contractor has implemented a contingency plan satisfactory to the City Contract Manager.

It is specifically understood that only the acts or conditions specified above shall constitute Uncontrollable Circumstances. Without limiting the generality of the foregoing, the Parties acknowledge that none of the following acts or conditions shall constitute Uncontrollable Circumstances:

1. General economic conditions, interest or inflation rates, currency fluctuations, or changes in the cost or availability of fuel, commodities, supplies, or equipment;

2. Changes in the financial condition of the City, the Contractor (or any of its Affiliates or Subcontractors) affecting their ability to perform their obligations;

3. The consequences of errors, neglect, or omission by the Contractor (or any of its Affiliates or any Subcontractor of any tier) in the performance of the Collection Services; EXHIBIT A: DEFINITIONS
June 15, 2022 Page A-15 Franchise Agreement, Exhibit A

4. The failure of the Contractor to secure patents or licenses in connection with the technology necessary to perform its obligations hereunder;

5. Union work rules, requirements, or demands that have the effect of increasing the number of employees employed in connection with the Operating Assets, or otherwise increasing the cost to the Contractor of operating and maintaining the Operating Assets or providing the Collection Services;

6. Any strikes, work stoppages, or other labor disputes or disturbances occurring with respect to any activity performed or to be performed by the Contractor or any of the Contractor's Subcontractors in connection with the Operating Assets or the Collection Services and that last beyond seven (7) days;

7. Any failure of any Subcontractor to furnish labor, materials, service, or equipment for any reason;

8. Vehicle or equipment failure;

9. Any impact of prevailing wage law, customs, or practices on the Contractor's construction or operating costs; or,

10. Any act, event, or circumstance occurring outside of the United States. "Universal Waste (U-Waste)" means all wastes as defined by Title 22, Subsections 66273.1 through 66273.9 of the California Code of Regulations. These include, but are not limited to, batteries, fluorescent light bulbs, mercury switches, and E-Waste.
"Vehicle" means any truck, rolling stock, or other Vehicle used by the Contractor in connection with Collection Services.

Franchise Agreement, Exhibit B
Page B-1
1 EXHIBIT B

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 an "Operating Component", "Disposal Component", “Processing Component,” and "Fee Component” which are annually adjusted.

Contractor shall submit its calculation of a Rate adjustment to the City Contract Manager on or before April 1 of each Rate Period where Rates will be adjusted using the index-based methodology.

Contractor shall submit its calculations on or before February 1 for any Rate Period where Rates will be adjusted using the cost-based methodology. Contractor's Rate calculations shall include all supporting schedules, documentation of Disposal or Processing Facility Tipping Fee changes, documentation of changes in Governmental Fees, and any other documentation or evidence determined by the City Contract Manager to be reasonably necessary to ensure that the calculation of Rate adjustments has been performed in strict conformance to the requirements of this Exhibit B.

The City Council shall make a good faith effort to approve Rates by June 1 of each year, 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 the City, City shall allow Contractor to retroactively bill Customers for the amount of the Rate increase for any period of said delay that is solely caused by the City. If Rates are not effective by July 1 as a result of Contractor's delay in submitting the Rate calculations in a complete and accurate form, then prior Rates remain in effect until such adjustment is made.

MULTI-INDEX RATE ADJUSTMENT
The multi-index Rate adjustment methodology involves adjusting: (1) the operating component of Rates for the current Rate Period by the CPI, ECI, and Fuel Index; and, (2) the disposal, processing, and fee components of the Rates by the actual changes to those components, to determine the Rates for the coming Rate Period. The intent of performing the multi-index-based adjustment is to allow Contractor's Compensation to be adjusted throughout the Term of this Agreement (giving consideration to those specific cost categories of "fuel" and "labor" that may be more volatile than the CPI) using simple, readily available surrogates for the actual changes in Contractor's costs for providing service.

If the ECI, CPI, or Fuel Index is/are 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 said index had not been discontinued or revised.

CALCULATION
Contractor shall calculate the adjustment to its Rates using the following methodology:

Step 1: Calculate the "Operating Component Factor" or "OCF".

Step 1a: Determine the Labor-Related Factor of the OCF by calculating the Annual Percentage Change in the ECI. The factor shall be rounded to the nearest tenth (percent (0.1%).

Franchise Agreement, Exhibit B
Page B-2
Step 1b: Determine the Fuel Factor of the OCF by calculating the Annual Percentage Change in the Fuel Index. The factor shall be rounded to the nearest tenth percent (0.1%).

Step 1c: Determine the Other Factor of the OCF by calculating the Annual Percentage Change in the CPI. The factor shall be rounded to the nearest tenth percent (0.1%).

Step 1d: Determine the OCF, rounded to the nearest tenth percent (0.1%), as follows:

OCF = (30% x Labor-Related Factor calculated in Step la above)+ (9% x Fuel Factor calculated in Step lb above)+ (61% x Other Factor calculated in Step lc above) For example, assuming:

1. Proposed labor-related costs are 30% of proposed total annual operating costs.

2. Proposed fuel costs are 9% of proposed total annual operating costs.

3. Proposed other costs are 61% of proposed total annual operating costs.

4. Labor-Related Factor= 3% (calculated in Step la)

5. Fuel Factor= 17% (calculated in Step lb)

6. Other Factor= 1% (calculated in Step le)

7. OCF = {30% X 3%) + (9% x 17%) + (61% X 1%) = 0.0304 = 3.04% Step 2: Calculate the adjusted Operating Component, rounded to the nearest cent, for each Rate as follows:

Adjusted Operating Component= Then-current Operating Component x (1 + OCF) For example, assuming:

1. Then-current Operating Component= $50.00

2. OCF = 3.04%

3. Adjusted Operating Component= $50.00 x (1 +0.0304) = $51.52 Step 3: Calculate the adjusted Disposal Component, rounded to the nearest cent, for each Rate to reflect any percentage change in the Tipping Fee charge at the approved Disposal Facility. This "step 3" shall only be applied to Solid Waste Rates, The adjustment shall be calculated as follows:

Adjusted Disposal Component= Then-current Disposal Component x (Current approved Disposal Facility Tipping Fee/ prior approved Disposal Facility Tipping Fee) For example, assuming:

1. Then-current Disposal Component= $20.00

2. Current approved Disposal Facility Tipping Fee = $50.00 per Ton

3. Prior approved Disposal Facility Tipping Fee= $46.25 per Ton

4. Adjusted Disposal Component= $20.00 x ($50.00 / $46.25) = $21.62 Franchise Agreement, Exhibit B
Page B-3
Step 4: Calculate the adjusted Processing Component, rounded to the nearest cent, for each Rate to reflect any percentage change in the Tipping Fee charge at an approved Processing Facility. This "step 4" shall not be applied to Solid Waste Rates. The processing component Rate Adjustment Factor shall not exceed the Annual Percentage Change in CPI for any facility owned and operated by Contractor or their Subcontractor. The adjustment shall be calculated as follows:

Adjusted Processing Component = Then--current Processing Component x (Current approved Processing Facility Tipping Fee/ Prior approved Processing Facility Tipping Fee) For example, assuming:

1. Then-current Processing Component= $2.00

2. Current approved Processing Facility Tipping Fee= $16.00 per Ton

3. Prior approved Processing Facility Tipping Fee= $15.00 per Ton

4. Adjusted Processing Component= $2.00 x ($16.00 / $15.00) = $2.13 Step 5: Calculate the adjusted Fee Component, rounded to the nearest cent, for each Rate. The adjusted Fee Component of each Rate shall be calculated as follows:

Adjusted Fee Component= Then-current Fee Component x (1+OCF) For example, assuming:

1. Then-current Fee Component= $5.00

2. OCF = 3.9%

3. Adjusted Fee Component= $5.00 x (1 + 0.039) = $5.20
Step 6: Calculate the adjusted value for each Rate charged under this Agreement. Adjusted Rates shall be calculated as follows:

Adjusted Rate = Adjusted Operating Component + (Adjusted Disposal Component OR Adjusted Processing Component)+ Adjusted Fee Component
For example, assuming:

1. The Rate being adjusted is a Solid Waste Collection Rate

2. Adjusted Operating Component= $51.52 (as calculated in Step 2)

3. Adjusted Disposal Component= $21.62 (as calculated in Step 3)

4. Adjusted Fee Component= $5.20 (as calculated in Step 5)

5. Adjusted Rate= $51.52 + $21.62 +$5.20 = $78.17

ADJUSTMENT LIMITATIONS
Notwithstanding the above, the annual Operating Component Factor adjustment may not increase more than six percent (6%) nor decrease (less than zero percent (0%)). In the event the Operating Component Factor formula set forth above would have allowed for a greater than six percent (6%) increase, or a decrease (less than zero percent (0%) for any given annual Operating Component Factor adjustment, the unused percentage increase or decrease otherwise permitted may be carried over until such time as it may be applied without violating the provisions of this paragraph.

Franchise Agreement, Exhibit B
Page B-4
By way of example only, if the formula would provide for an increase of seven percent (7%) in one year, the Operating Component Factor may only be increased by six percent (6%). If, in the next year, the formula would provide for an increase of three percent (3%) the unapplied one percent (1%) increase from the prior year may be applied such that the Operating Component Factor increase would be four percent (4%). However, if the deferred percentage cannot be fully carried over as part of the next adjustment due to the six percent (6%) maximum, any unused increment would carry over to the next annual adjustment until fully utilized. Notwithstanding the above, any unused increment remaining at the expiration or termination of the Agreement shall be extinguished.” Form 1
General Proposal Information
General Proposer Information City of Ridgecrest Proposed Proposer Name: _Waste Management__
A. Primary Contact Information

1. Name Josh Mann

2. Title Territory Manager

3. Phone (661) 382-7436

4. Fax

5. E-mail [email protected]
B. Support Facilities

1. Address of collection vehicle parking, maintenance,
washing, and route staff parking facility(ies)
237 San Bernardino Blvd. (County Line Rd.), Ridgecrest, CA 93555

2. Address of administrative office 9081 Tujunga Ave., Sun Valley, CA 91352

3. Address of billing office 13940 Live Oak Blvd., Baldwin Park, CA 91706

4. Address of customer service office 5701 S. Eastern Ave, Ste 300, Commerce, CA 90040 C. Vehicle Manufacturer and Specifications (Body Capacity, GVWR, Load Capacity)

1. Residential Collection Vehicles Autocar; 39 Cubic Yard Body Capacity, GVWR 62,000 pounds, 10 tons load capacity

2. Commercial Collection Vehicles Peterbilt; 39 Cubic Yard Body Capcity, GVWR 62,000 pounds, 10 tons load capacity

3. Drop Box Vehicles Peterbilt; 40 Cubic Yard Body Capacity, GVWR dependent on load, 13 tons load capacity
D. Container Manufacturer, Sizes Offered, and Specifications

1. Carts Rehrig Pacific; 32-, 64- and 96-gallon HDPE collection containers

2. Bins Confab; 1.5-, 3-, 4- and 6-cubic yard steel containers

3. Drop Boxes Confab; 10-, 20-, 25, 30- and 40-cubic yard steel containers E. Recyclable Materials Processing and Handling

1. Name of processing site Azusa Transfer Station and MRF

2. Owner's name Azusa Land Reclamation (WM)

3. Operator's name Azusa Land Reclamation (WM)

4. Address of processing location 1501 W. Gladstone St, Azusa, CA 91702

5. Hauling method (e.g. direct haul, transfer haul, Pod haul)
transfer haul

6. Name and address of transfer location (if applicable) Dave Pearsons Recycling Center, 1536 N Mahan St Ste A, Ridgecrest, CA 93555

7. Tip Fee (Inclusive of transfer and disposal costs) $139.67 per ton (based on current charges, subject to change based on variability of transfer and processing costs)

8. Recyclable Materials Sales Revenue per Ton No rebates are received by the hauler and revenues are accounted for within the per ton tip fee.