AGREEMENT BETWEEN THE
CITY OF RIPON AND GILTON RESOURCE RECOVERY
RELATING TO SOLID WASTE DISPOSAL
This Agreement is made and entered into this ________ day of _____________, 2023, by and between the CITY OF RIPON, hereinafter called “CITY”, and GILTON RESOURCE RECOVERY, hereinafter called “GILTON”.
NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS:
1. Agreement. The parties hereto agree that for the term of this Agreement, CITY shall haul all residential Municipal Solid Waste (MSW) collected by CITY to the GILTON Transfer Station located at 800 S. McClure Road, Modesto, CA. GILTON, at its sole cost, shall receive all said refuse delivered to it at said transfer station. GILTON acknowledges and understands the current volume of residential MSW produced by the CITY and guarantees this and future increases at said transfer station for the duration of this agreement.
2. Fee for Disposal of MSW. CITY agrees to pay GILTON $115 per ton of MSW for disposal.
Beginning January 1, 2025, this payment rate may be annually adjusted to reflect any increases as shown in the Bureau of Labor Statistics, Bay Area Cities “Consumer Price Index, CPI-U All Items, 12 month % Change” as of June 30th of the previous year. This adjustment shall be capped at a maximum of 5% per year.
3. Extraordinary Cost Increases. If there are any extraordinary cost increases due to State Mandated requirements above and beyond the requirements set forth in Senate Bill 1383, the parties shall meet and confer as to any additional compensation for implementing the additional requirements.
4. Term of Agreement. The term of this agreement shall be for five years, commencing on December 1, 2023 and terminating on December 1, 2028. This agreement shall automatically be extended one year on December 1st of each year unless written notice to the contrary is given no less than 90 days in advance by either party.
5. Disposal of MSW. Residential MSW shall be sorted at the GILTON Transfer Station to remove all items that are recyclable, compostable, or part of a source reduction program. The remaining waste shall be taken by GILTON to San Joaquin County designated and operated facilities for disposal.
6. AB939 Fee. GILTON is required to pay the County of San Joaquin an amount equal to the established AB939 Fee on any waste, except that waste found to be recyclable, compostable, or part of a source reduction program, collected under this agreement that is disposed of outside San Joaquin County.
7. SB 1383 Requirements. GILTON shall continue to meet all of the solid waste facility requirements set forth by Senate Bill 1383 Short-Lived Climate Pollutants.
8. High Diversion Facility. GILTON shall remain a high-diversion organic waste processing facility as defined in 14 CCR Section 18982(a)(33).
9. Termination. All terms and conditions of this agreement are considered material and any default shall be deemed to constitute a breach of the contract. If a default does occur, the party not in default shall give the party in default a notice of breach in writing. If after thirty (30) days the party in default fails, neglects or refuses to make good or perform the default, then the party not in default may cancel the agreement.
10. Authority of Parties. By signing below, each signatory represents that he or she has the authority to bind the party on whose behalf he or she is signing.
CITY OF RIPON GILTON RESOURCE RECOVERY
By:___________________________ By:______________________________
MICHAEL RESTUCCIA RICHARD GILTON
Mayor Chair President & Chief Executive Officer
ATTEST:
By:_____________________________ By:______________________________
LISA ROOS
City Clerk Executive Director
APPROVED AS TO FORM:
By:_____________________________ By:______________________________
TOM TERPSTRA
City Attorney Deputy