Agenda packet — Mayor and City Council, June 17, 2026 (part 11 of 12)

PROPOSAL
TO: ESTIMATING DEPARTMENT
RE: Wool Worth Fire Building Demolition
396 N E St. San Bernardino, CA 92401
RE Proposal No. 8319
Resource Environmental, Inc. is pleased to provide this bid proposal for furnishing all labor, materials, equipment, disposal, and notifications to perform the following scope of work in accordance with all applicable local, state, and federal rules and regulations.

Resource is a licensed demolition and abatement contractor (Classes A, B, C-21, C-22, D-63, ASB, HAZ) with over 17 years of experience. Resource takes pride in its ability to provide the most competitive pricing, accomplished by the capacity to self-perform all work listed below.

BID DOCUMENTS/INFORMATION
Specifications/ITB NONE (Site Walk Only)
Plans/Drawing(s) None Provided
Hazardous Material Report(s) Limited Asbestos Survey / Limited Lead Report (Need Revision) Addenda N/A
SCOPE OF WORK — REGULATED BUILDING MATERIALS
Asbestos/ Lead/ Other Regulated Building Materials
Not included in this proposal.

Full comprehensive updated survey TBD
SCOPE OF WORK — DEMOLITION
Demolition
 Interior demolition of structure (all concrete to remain protected in place)  Full demolition ( basement slab + perimeter walls to remain, perforated holes for drainage and walls broken 2 ft below grade)
 Import of 5,200 CY for basement backfill / compaction

CONDITIONS / ASSUMPTIONS
Packet Page. 2048

Page 2 of 4 ends

Resource Environmental Inc.
13100 Alondra Blvd, Suite 108, Cerritos, CA 90703
Office: (562) 468-7000 | Fax: (562) 468-0600 | Email: [email protected] www.ResourceEnvironmental.com
CA CSLB #864417 | CA DIR Registration #1000003121 | Laborers Local 300 AZ ROC #337736 | NV SCB #0090223
 Structural dimensions are assumed for estimating purposes only: concrete slabs at approximately 6” thick; concrete trusses at approximately 3’ x 2’ thick, concrete walls at approximately 10” unless as-built drawings or verified measurements are provided.
 Removal of unknown, concealed, or buried structures, utilities, obstructions, rock, or debris is excluded from this scope;
 All demolition debris within the defined limits will be processed, sized, loaded, hauled, and disposed of at a permitted landfill, transfer station, and/or recycling facility;  Site will be left in a rough-graded, debris-free condition within the demolition limits; (If import add-alt is approved)
 Dump fees are based on current disposal rates as of the proposal’s extended date;  AQMD/APCD requires a 10-working-day notification prior to commencement of any work;  Safe-off, shut-off, isolation, and disconnection of all utilities shall be performed by others (Resource will assist with coordination with local agencies as needed);  All salvageable materials—including non-ferrous metals, equipment, and other recoverable items—are the property of Resource. Items identified during the site walk are included; any missing, removed, or altered items constitute a changed condition subject to contract adjustment;  All metals, wood, and salvageable equipment will be removed and processed to maximize recycling value;  Proposal is based on a standard 40-hour workweek;
 Prevailing wages are included unless specifically stated;  Resource is a union-signatory contractor in Southern California to the Laborers Union only and is not signatory to the Operating Engineers or any other trades;  If a Project Labor Agreement (PLA), Community Workforce Agreement (CWA), or other project-specific labor mandate applies and is not expressly acknowledged herein, it is not included;  Proposal includes one mobilization; any additional mobilizations or remobilizations are an added cost;  Performance and payment bonds are not included. If required, Resource’s bond rate is 1.2%;  Standard insurance included with this proposal consists of: $1M/$2M General Liability, $1M Workers’ Compensation, $1M Auto Liability, and $10M Excess Liability. Any higher limits, special endorsements, waivers of subrogation, or nonstandard requirements are not included unless specifically stated;  Delays caused by others, owner-directed stoppages, site inaccessibility, or conditions outside Resource’s control will result in schedule extensions, standby charges, and applicable general conditions;  Proposal is valid for thirty (30) days from the date of submission;  This proposal must be incorporated as an exhibit into any resulting subcontract or contract agreement;  This proposal is a quotation only and is subject to negotiation and execution of a mutually acceptable subcontract. No binding obligation exists until a subcontract is fully executed.

OWNER / AGENT / PRIME CONTRACTOR RESPONSIBILITIES
The owner/agent/prime contractor is responsible for:
 Obtaining all required permits and approvals (Resource will provide support as needed);  Safe-off, disconnection, capping, protection, and/or rerouting of all utility systems;  Providing all layout, surveying, and staking for saw cutting, grade points, or control lines, if applicable;  Providing pedestrian canopy systems, temporary and permanent fencing, and any required public protection measures;
 Providing site security, except where solely required to safeguard Resource’s equipment;  Providing temporary water, temporary power, and all SWPPP-related requirements;  Providing all environmental, hazardous material, or geotechnical sampling, testing, inspections, and laboratory analysis required by the project or governing agencies.  3rd party testing for compaction (if import of basement add-alt is accepted) Packet Page. 2049

Page 3 of 4 ends

ANTICIPATED COMPLETION SCHEDULE
 Soft Demolition / Interior gut to be completed in 20 days.  Demolition to be completed in 20 days
 Import to be completed in 10 working days.
 Scaffolding / Pedestrian Canopy

EXCLUSIONS
Unless identified above, the following are excluded:

Any hazardous material abatement or remediation; any environmental sampling, testing, or monitoring services; any utility disconnection, isolation, protection, or rerouting; any traffic control, temporary protection, unknown or concealed subsurface conditions, structures, or utilities; any geotechnical, compaction, inspection, or materialstesting services; any shoring, stabilization, or temporary structural support; any groundwater management, dewatering, or stormwater control; any off-site or right-of-way work; any soil treatment, stabilization, export, or handling of contaminated materials; any layout, surveying, staking, or engineering; any tank removal or closure activities; and any construction, restoration, or improvements beyond the defined demolition scope.

PRICING SCHEDULE
Interior Demolition Only (Concrete to remain) $ 272,000 Full Demolition Of Structure $ 279,000
Scaffold / Pedestrian Canopy with windscreen $ 150,000
ADD ALT 1 - Import Basement $ 229,000
Thank you for the opportunity to provide this bid proposal. Please contact me at (562) 468-7000 to answer any questions.

Respectfully submitted,
Steven Scherbarth
[email protected]
Resource Environmental, Inc.

Packet Page. 2050

Page 4 of 4 ends

ACCEPTANCE

COMPANY

CONTACT NAME
TITLE

SIGNATURE
DATE
Packet Page. 2051
Packet Page. 2052

CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 17, 2026
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Request to Increase Payment Authorization for the Enterprise Fleet Master Equity Lease Agreement for Fiscal Year 2025-2026 and Establish Future Fiscal Years Payment Authorization Contingency (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-087,

1. Authorizing the Director of Finance and Management Services to approve an increase to the Fiscal Year 2025-2026 payment authorization for the Enterprise Fleet Master Equity Lease Agreement in the amount of $464,389.21, increasing the total authorized amount to $2,393,517.73, for delayed down payment obligations and ongoing lease payments; and

2. Beginning in FY 2026-27, authorize a contingency of up to 5% within the Council-approved payment authorization for Enterprise Lease-related charges, subject to available budget, purchasing requirements, City Manager and Finance review.

City Manager's Comments
The City Manager requests City Council authorization.

Executive Summary
Public Works is requesting authorization to increase the existing payment authorization for the Enterprise Fleet Master Equity Lease Agreement for Fiscal Year 2025-2026 due to down payment obligations that were anticipated in the prior fiscal year but not invoiced until the current fiscal year due to vehicle delivery and upfitting timelines.

While the previously approved staff report contemplated utilizing down payment funding through the carryover process as vehicles were delivered and placed into service, the adopted resolution did not specifically authorize the additional payment Packet Page. 2053
authority necessary to expend those funds in Fiscal Year 2025-2026. As a result, $464,389.21 in delayed down payment obligations must be added to the current fiscal year authorization, increasing the total authorized amount to $2,393,517.73.

Background
On August 2022, the City entered into a Master Equity Lease Agreement to modernize the City’s fleet and replace aging vehicles with newer, safer, and more reliable equipment. Since implementation of the leasing program, vehicles have continued to be delivered and placed into service based upon manufacturer production schedules and completion of required upfitting.

On April 16, 2025, the Mayor and City Council approved Resolution 2025-276 authorizing funding for the Enterprise Fleet Master Equity Lease Agreement for Fiscal Years 2024-2025 and 2025-2026. Specifically, Council approved:
• $2,131,624.74 for Fiscal Year 2024-2025 from the General Fund to support:

Lease payments for the City's existing 122-vehicle fleet; o A one-time down payment of $777,241.53 for 45 new vehicles; and o Three months of lease payments for the 45 new vehicles. o
• $1,929,128.52 for Fiscal Year 2025-2026 from the General Fund to support:
o Ongoing lease payments for the City's fleet.

As discussed in the previously approved staff report, vehicle deliveries remained dependent upon factory production schedules and completion of necessary upfitting, including installation of emergency equipment, cages, lights, push bars, and other operational components required before vehicles could be placed into service.

Enterprise does not begin billing the City until vehicles are fully delivered, accepted, and operationally ready for service.

Due to these delays, several vehicles were not delivered and fully upfitted within the anticipated timeframe, and the associated down payments were therefore not invoiced during the prior fiscal year. Although the original staff report contemplated that down payment funding may need to carry forward as vehicles were delivered, the adopted resolution did not specifically authorize the continued use of that payment authority into Fiscal Year 2025–2026.

The current purchase order does not have sufficient remaining authority to process the outstanding invoices. Approval of this item will allow Public Works and Purchasing to complete the necessary PO change order and allow finance to process payment.

During Fiscal Year 2024-2025, the City established a purchase order and budget authorization in the amount of $2,131,624.74 for obligations associated with the Enterprise Fleet Master Equity Lease Agreement, including anticipated monthly lease payments and vehicle down payments. However, actual expenditures processed during the fiscal year totaled only $1,683,742.96, resulting in an unexpended balance Packet Page. 2054
of $447,881.78. This variance was not the result of reduced obligations, but rather delayed invoicing of vehicle down payment charges that were not billed and paid prior to the close of the fiscal year. As a result, these outstanding obligations carried forward into Fiscal Year 2025-2026 and, following final reconciliation of invoices received from the lessor, now total $464,389.21. Accordingly, the City's total lease obligations were not reduced, but instead shifted between fiscal years due to the timing of vendor invoicing and payment processing.

Discussion
Public Works is requesting approval to increase the funding authorization for the Enterprise Fleet Master Equity Lease Agreement, as the adopted resolution did not specifically authorize the additional payment authority necessary to expend the funds during Fiscal Year 2025-2026.

Down payment obligations that were anticipated to be paid in the prior fiscal year have been paid during the current fiscal year using authorized funds that were originally intended for ongoing monthly lease payments. While sufficient budget exists within the overall fleet budget at this time, the currently authorized payment amount is no longer adequate to cover the remaining obligations for Fiscal Year 2025-2026. Of the $777,241.53 authorized for down payment obligations in Fiscal Year 2024-2025, $329,359.75 was invoiced and paid during Fiscal Year 2024-2025. The remaining $447,881.78 was not invoiced until Fiscal Year 2025-2026 due to manufacturer production delays, vehicle delivery schedules, and required upfitting activities.

Although funding was previously approved by the Mayor and City Council, the associated payment obligations did not occur until vehicles were delivered and accepted into service. As a result, the delayed down payment obligations were paid during Fiscal Year 2025-2026 using existing lease payment appropriations, creating the need for additional payment authorization to maintain sufficient authority for the remainder of the fiscal year.

This request increases the authorized payment amount for Fiscal Year 2025-2026 by $464,389.21, increasing the total authorized amount from $1,929,128.52 to $2,393,517.73.

At this time, all required down payments have been completed and no additional vehicles are being added to the lease program. The City’s current monthly lease obligation is approximately $160,000 per month, subject to minor fluctuations due to fees and timing.

Due to operational vehicle needs, unforeseen lease-related costs, and vehicle registration, licensing, and DMV renewal fees that may occur throughout the fiscal year, staff is requesting a contingency of five percent (5%) within the annual payment authorization. The Enterprise Master Equity Lease Agreement authorizes certain additional charges beyond the scheduled monthly lease payments, including registration and titling costs, administrative fees, mileage-related adjustments, vehicle Packet Page. 2055
disposition expenses, and other costs incurred in connection with the operation and administration of the leased fleet. The requested contingency will provide sufficient flexibility to address these routine and unanticipated costs while ensuring uninterrupted fleet operations and compliance with the terms of the Agreement.

Fiscal Year 2026-2027 and future years will reflect the ongoing annual lease cost associated with the existing fleet lease program, as all delayed down payment obligations will have been satisfied during the current fiscal year.

The base annual lease obligation for Fiscal Year 2026-2027 is projected at $1,929,128.52. With the addition of the 5% contingency, the total requested payment authorization for Fiscal Year 2026-2027 is $2,025,584.95. The proposed FY26/27 fleet budget being adopted supports this action.
2021-2025 Strategic Targets and Goals
This request aligns with the Key Strategic Goal No. 1 – Improved Operational & Financial Capacity, to create an asset management plan and supports the framework for spending decisions. Approval of this item ensures the City has the proper payment authorization in place to meet existing fleet lease obligations, maintain reliable vehicles for City operations, and continue managing fleet costs in a fiscally responsible manner.

Fiscal Impact
There is no additional appropriation requested because sufficient funding exists in the adopted Fleet Fund budget. This action increases payment authorization under the Enterprise Lease Agreement for fiscal year 2025-2026 by $464,389.21.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-087,

Attachments
Attachment 1 Resolution No. 2026-087
Attachment 2 Enterprise Fleet Management Master Equity Lease Agreement
Packet Page. 2056
Attachment 3 Resolution 2025-276
Attachment 4 Leased Vehicles List
Attachment 5 List of 45 Vehicles on Order
Ward:

All Wards
Synopsis of Previous Council Actions:

April 16, 2025 Adoption of Resolution 2025- 276, Request to approve $2,131,624.74 for FY24-25 and $1,929,128.52 for FY25-26 from General Fund Balance to fund the Enterprise Fleet Master Equity Lease Payments
August 3, 2022 Adopt a Master Equity Lease Agreement for Light Duty Vehicles.

CC: Eric Levitt, City Manager

Packet Page. 2057
Resolution No. 2026-087
Resolution No. 2026-087
June 17, 2026

Page 1 of 4 ends

RESOLUTION NO. 2026-087

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

AUTHORIZING THE DIRECTOR OF FINANCE AND

MANAGEMENT SERVICES TO APPROVE AN INCREASE
TO THE FISCAL YEAR 2025-2026 PAYMENT

AUTHORIZATION FOR THE ENTERPRISE FLEET

MASTER EQUITY LEASE AGREEMENT IN THE AMOUNT
OF $464,389.21, INCREASING THE TOTAL AUTHORIZED
AMOUNT TO $2,393,517.73 FOR DELAYED DOWN

PAYMENT OBLIGATIONS AND ONGOING LEASE
PAYMENTS; AND BEGINNING IN FY2026-27
AUTHORIZING A CONTINGENCY OF UP TO 5% WITHIN

COUNCIL-APPROVED PAYMENT AUTHORIZATION

FOR ENTERPRISE LEASE RELATED CHARGES,

SUBJECT TO AVAILABLE BUDGET, PURCHASING

REQUIREMENT, AND FINANCE REVIEW
WHEREAS, the City of San Bernardino entered into a Master Equity Lease Agreement with Enterprise Fleet Management in August 2022 to replace aging vehicles and modernize the City’s fleet; and
WHEREAS, on April 16, 2025, the Mayor and City Council adopted Resolution No. 2025- 276 authorizing funding for the Enterprise Fleet Master Equity Lease Agreement for Fiscal Years 2024-2025 and 2025-2026; and
WHEREAS, vehicle deliveries and required down payments were delayed due to manufacturer production schedules and completion of necessary vehicle upfitting before the vehicles could be placed into service and invoiced; and WHEREAS, vehicle delivery delays, associated down payment obligations, and ongoing lease payment obligations have resulted in Fiscal Year 2025-2026 expenditures exceeding the previously authorized amount; and
WHEREAS, the payment authorization and remaining purchase order authority are insufficient to cover these delayed down payment obligations and the remaining lease payments for the current fiscal year; and
WHEREAS, increasing the Fiscal Year 2025-2026 payment authorization by $464,389.21 will increase the total authorized amount to $2,393,517.73; and Packet Page. 2058
Resolution No. 2026-087
Resolution No. 2026-087
June 17, 2026

Page 2 of 4 ends

WHEREAS, Enterprise Fleet Management has confirmed that the outstanding balance for Account No. 566922 through June 30, 2026 is $464,389.21, consisting of unpaid April, May, and June 2026 invoices; and
WHEREAS, this action is a fiscal and administrative activity and does not constitute a project under the California Environmental Quality Act (CEQA).

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The Mayor and City Council approve an increase to the Fiscal Year 2025- 2026 payment authorization for the Enterprise Fleet Master Equity Lease Agreement in the amount of $464,389.21, increasing the total authorized amount to $2,393,517.73 for delayed down payment obligations and ongoing lease payments.

SECTION 3. The Mayor and City Council authorize that beginning in FY 2026-27, authorize a contingency of up to 5% within the Council-approved payment authorization for Enterprise Lease-related charges, subject to available budget, purchasing requirements, and Finance review.

SECTION 4. This action is not subject to the California Environmental Quality Act (CEQA) because it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, pursuant to Section 15061(b)(3) of the CEQA Guidelines.

SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held to be invalid, such invalidity shall not affect other provisions or applications of the Resolution that can be given effect without the invalid provision or application.

SECTION 7. Effective Date. This Resolution shall become effective immediately upon adoption.

Packet Page. 2059
Resolution No. 2026-087
Resolution No. 2026-087
June 17, 2026

Page 3 of 4 ends

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 17th day of June 2026.

Helen Tran, Mayor
City of San Bernardino
Attest:

Telicia Lopez, CMC, City Clerk
Approved as to form:

Sonia Carvalho, City Attorney
Packet Page. 2060
Resolution No. 2026-087
Resolution No. 2026-087
June 17, 2026

Page 4 of 4 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Telicia Lopez, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2026-087, adopted at a regular meeting held on the 17th day of June 2026 by the following vote:

Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
KNAUS _____ _____ _______ _______
FLORES _____ _____ _______ _______
ORTIZ _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this 18 th day of June 2026.

Telicia Lopez, CMC, City Clerk
Packet Page. 2061
Packet Page. 2062
Packet Page. 2063
Packet Page. 2064
Packet Page. 2065
Packet Page. 2066
Packet Page. 2067
Packet Page. 2068
Packet Page. 2069
Packet Page. 2070
Packet Page. 2071
Packet Page. 2072
Packet Page. 2073
Packet Page. 2074
Packet Page. 2075
Packet Page. 2076
Packet Page. 2077
Packet Page. 2078
Packet Page. 2079
Packet Page. 2080
Packet Page. 2081
Packet Page. 2082
Attachment 2
Number Driver Year Make Model Lease End Date Delivered Price Total Rent/Mo 1 PD 2023 Chevrolet Tahoe 9/30/2027 $66,427.30 $1,328.85 2 CM 2023 Chevrolet Malibu 6/30/2028 $20,880.80 $417.85 3 IT 2023 Chevrolet Malibu 6/30/2028 $20,582.80 $411.93 4 PD 2023 Ford Explorer 4/30/2028 $38,733.69 $769.36
5 PD 2023 Ford Explorer 4/30/2028 $38,733.69 $769.36
6 PD 2023 Ford Explorer 4/30/2028 $38,733.69 $769.36
7 PD 2023 Ford Explorer 4/30/2028 $38,733.69 $769.36
8 P.W. 2022 Ford F-150 1/31/2028 $28,671.41 $571.46
9 P.W. 2022 Ford F-150 1/31/2028 $28,171.41 $561.53
10 P.W. 2022 Ford F-150 2/29/2028 $28,321.41 $563.56
11 P.W. 2022 Ford F-150 11/30/2027 $25,977.16 $522.66
12 P.W. 2022 Ford F-150 1/31/2028 $29,836.17 $594.57
13 P.W. 2022 Ford F-150 12/31/2027 $25,968.41 $519.73
14 P.W. 2022 Ford F-150 12/31/2027 $29,834.17 $596.68
15 P.W. 2022 Ford F-150 12/31/2027 $29,834.17 $596.68
16 PD 2022 Chrysler Voyager 9/30/2027 $45,358.63 $918.36 17 PD 2022 Hyundai Santa Fe 9/30/2027 $48,187.57 $980.81 18 PD 2022 Hyundai Santa Fe 9/30/2027 $46,487.57 $946.29 19 PD 2022 Chevrolet Equinox 9/30/2027 $33,585.49 $680.67 20 PD 2023 Chevrolet Malibu 1/31/2029 $25,186.37 $500.25 21 PD 2023 Chevrolet Malibu 1/31/2029 $25,186.37 $500.25 22 PD 2023 Chevrolet Malibu 1/31/2029 $25,186.37 $500.25 23 PD 2023 Chevrolet Malibu 1/31/2029 $25,186.37 $500.25 24 PD 2023 Chevrolet Malibu 6/30/2028 $19,432.42 $387.33 25 PD 2023 Chevrolet Malibu 1/31/2029 $25,186.37 $500.25 26 PD 2023 Chevrolet Malibu 1/31/2029 $25,153.37 $499.60 27 PD 2023 Chevrolet Malibu 1/31/2029 $25,153.37 $499.60 28 PD 2023 Chevrolet Malibu 1/31/2029 $25,186.37 $500.25 29 PD 2023 Chevrolet Malibu 1/31/2029 $25,186.37 $500.25 30 PD 2023 Chevrolet Malibu 1/31/2029 $25,186.37 $500.25 31 PD 2023 Chevrolet Malibu 1/31/2029 $25,451.37 $505.47 32 O&M 2022 Ford F-250 3/31/2028 $37,761.02 $747.47
33 O&M 2022 Ford F-250 4/30/2028 $36,438.02 $722.61
34 O&M 2022 Ford F-250 3/31/2028 $36,438.02 $721.61
35 O&M 2022 Ford F-250 4/30/2028 $36,438.02 $722.61
Leased Vehicle List

Page 1 ends

Attachment 2
36 O&M 2022 Ford F-250 4/30/2028 $30,466.36 $598.97
37 PARKS 2022 Ford F-250 1/31/2028 $34,032.28 $677.81
38 PARKS 2022 Ford F-150 2/29/2028 $41,704.00 $835.29
39 O&M 2022 Ford F-150 2/29/2028 $41,704.00 $835.29
40 Library 2023 Ford Transit Connect 1/31/2029 $33,356.00 $665.32 41 IT 2023 Ford Transit Connect 1/31/2029 $33,356.00 $665.32 42 PD 2023 Ford Police Interceptor Utility 3/31/2029 $50,685.68 $1,124.94 43 PD 2023 Ford Police Interceptor Utility 3/31/2029 $50,675.35 $1,124.73 44 PD 2023 Ford Police Interceptor Utility 3/31/2029 $50,642.35 $1,124.00 45 PD 2023 Ford Police Interceptor Utility 12/31/2029 $52,238.45 $1,155.60 46 PD 2023 Ford Police Interceptor Utility 3/31/2029 $50,718.68 $1,125.66 47 PD 2023 Ford Police Interceptor Utility 3/31/2029 $50,675.35 $1,124.73 48 PD 2023 Ford Police Interceptor Utility 3/31/2029 $50,675.35 $1,124.73 49 PD 2023 Ford Police Interceptor Utility 3/31/2029 $50,675.34 $1,124.73 50 PD 2023 Ford Police Interceptor Utility 3/31/2029 $50,642.34 $1,124.00 51 PD 2023 Ford Police Interceptor Utility 3/31/2029 $50,718.68 $1,125.66 52 O&M 2022 Ford Ranger 1/31/2028 $31,761.09 $632.74
53 O&M 2022 Ford Ranger 12/31/2027 $31,761.09 $633.10
54 P.W. 2022 Ford Ranger 12/31/2027 $31,761.09 $633.10
55 CD&H 2022 Ford Ranger 11/30/2027 $33,597.09 $675.16
56 O&M 2022 Ford Ranger 1/31/2028 $31,411.09 $625.80
57 CD&H 2022 Ford Ranger 11/30/2027 $33,596.20 $675.13
58 Library 2023 Ford Transit-150 Cargo 10/31/2027 $56,730.00 $1,174.87 59 P.W. 2022 Ford F-350 6/30/2028 $38,185.52 $775.97
60 P.W. 2022 Ford F-350 6/30/2028 $39,685.52 $806.02
61 O&M 2023 Chevrolet Malibu 6/30/2028 $23,855.40 $472.61 62 P.W. 2023 Chevrolet Malibu 6/30/2028 $24,138.40 $478.18 63 P.W. 2023 Chevrolet Malibu 6/30/2028 $24,138.40 $478.18 64 P.W. 2023 Chevrolet Malibu 6/30/2028 $24,138.40 $478.18 65 PD 2023 Ford Transit-350 Passenger 1/31/2029 $53,369.00 $1,062.86 66 PD 2023 Ford F-350 Chassis 6/30/2029 $63,769.08 $1,305.88 67 CD&H 2023 Ford Explorer 3/31/2028 $36,377.05 $728.67 68 PARKS 2023 Chevrolet Silverado 3500HD 5/31/2025 $14,980.85 $101.43 69 O&M 2022 RAM 2500 3/31/2029 $42,149.99 $840.06
70 O&M 2022 RAM 2500 3/31/2029 $42,149.99 $863.90
71 P.W. 2023 Chevrolet Malibu 7/31/2028 $21,590.80 $439.25 72 HR 2023 Chevrolet Malibu 7/31/2028 $21,590.80 $439.25 73 P.W. 2023 Chevrolet Malibu 7/31/2028 $21,590.80 $439.25

Page 2 ends

Attachment 2
74 CD&H 2023 Chevrolet Malibu 7/31/2028 $21,590.80 $439.25 75 CD&H 2023 Chevrolet Malibu 7/31/2028 $21,590.80 $439.25 76 PD 2024 Chrysler Pacifica 8/31/2029 $47,884.63 $942.97 77 PD 2024 Toyota 4Runner 8/31/2029 $46,955.58 $925.24
78 PD 2024 Dodge Durango 6/30/2029 $58,934.30 $1,263.78 79 PD 2024 Dodge Durango 6/30/2029 $58,934.30 $1,263.78 80 PD 2024 Dodge Durango 6/30/2029 $59,052.30 $1,266.26 81 PD 2024 Dodge Durango 6/30/2029 $58,934.30 $1,263.78 82 PD 2024 Dodge Durango 9/30/2029 $58,946.36 $1,245.51 83 PD 2024 Dodge Durango 9/30/2029 $59,064.36 $1,247.98 84 PD 2024 Dodge Durango 6/30/2029 $58,934.30 $1,263.78 85 PD 2024 Dodge Durango 6/30/2029 $58,934.30 $1,263.78 86 PD 2024 Dodge Durango 9/30/2029 $59,064.36 $1,247.98 87 PD 2024 Dodge Durango 9/30/2029 $59,064.36 $1,247.98 88 PD 2024 Dodge Durango 9/30/2029 $59,064.36 $1,247.98 89 PD 2024 Dodge Durango 9/30/2029 $58,946.36 $1,245.51 90 PD 2023 Ford Police Interceptor Utility 12/31/2029 $64,097.29 $1,421.17 91 PD 2023 Ford Police Interceptor Utility 12/31/2029 $64,782.29 $1,436.20 92 PD 2024 Ford Explorer 7/31/2029 $44,832.13 $951.85
93 PD 2024 Ford Explorer 7/31/2029 $44,732.13 $949.74
94 PD 2024 Ford Explorer 7/31/2029 $44,732.13 $949.74
95 PD 2024 Ford Explorer 7/31/2029 $44,732.13 $949.74
96 PD 2024 Chevrolet Malibu 5/31/2029 $28,282.63 $574.33 97 PD 2024 Chevrolet Malibu 5/31/2029 $27,999.63 $568.62 98 PD 2024 Chevrolet Malibu 5/31/2029 $28,282.63 $574.33 99 PD 2024 Chevrolet Malibu 5/31/2029 $28,249.63 $573.65 100 PD 2024 Chevrolet Malibu 4/30/2029 $28,282.63 $573.39 101 PD 2024 Chevrolet Malibu 4/30/2029 $28,282.63 $573.39 102 PD 2024 Chevrolet Malibu 4/30/2029 $28,282.63 $573.39 103 PD 2024 Chevrolet Malibu 4/30/2029 $28,249.63 $572.71 104 PD 2024 Chevrolet Malibu 4/30/2029 $28,282.63 $573.39 105 PD 2024 Chevrolet Malibu 5/31/2029 $28,282.63 $574.33 106 PD 2024 Chevrolet Malibu 4/30/2029 $28,282.63 $573.39 107 PD 2024 Chevrolet Malibu 5/31/2029 $28,282.63 $574.33 108 O&M 2023 Ford F-150 1/31/2029 $44,240.45 $901.38
109 O&M 2023 Ford F-150 1/31/2029 $43,860.45 $893.66
110 O&M 2023 Ford F-150 1/31/2029 $40,504.45 $825.49
111 O&M 2023 Ford F-250 4/30/2029 $52,111.88 $1,077.09

Page 3 ends

Attachment 2
112 O&M 2023 Ford F-250 1/31/2029 $52,336.88 $1,075.40
113 CD&H 2024 Chevrolet Colorado 9/30/2029 $41,392.96 $812.37 114 CD&H 2024 Chevrolet Colorado 8/31/2029 $41,425.96 $814.61 115 CD&H 2024 Chevrolet Colorado 9/30/2029 $41,392.96 $812.37 116 CD&H 2024 Chevrolet Colorado 8/31/2029 $41,392.96 $813.97 117 CD&H 2024 Chevrolet Colorado 9/30/2029 $41,225.96 $809.11 118 CD&H 2024 Chevrolet Colorado 8/31/2029 $41,392.96 $813.97 119 CD&H 2024 Chevrolet Colorado 9/30/2029 $41,392.96 $812.37 120 CD&H 2024 Chevrolet Colorado 9/30/2029 $41,392.96 $812.37 121 CD&H 2024 Chevrolet Colorado 8/31/2029 $41,392.96 $813.97 122 PD 2024 GMC Sierra 1500 9/30/2029 $53,697.41 $1,045.75 Total Monthly Cost for 122 vehicles $96,900.12

Page 4 ends

Attachmet 3
Effective Date* Driver Year Make Model DELIVERED
COST

MONEY DOWN

MONTHLY

PAYMENT

WITH TAX
1 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,597.62 $1,349.66 2 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,597.62 $1,349.66 3 12/10/2024 POLICE DEPT 2023 Ford Police Interceptor Utility $69,914.07 $19,423.16 $1,151.58 4 12/10/2024 POLICE DEPT 2023 Chevrolet Silverado 1500 $82,082.99 $15,632.09 $1,486.68 5 12/10/2024 POLICE DEPT 2023 Chevrolet Silverado 1500 $82,082.99 $15,632.09 $1,486.68 6 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 7 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 8 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 9 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 10 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 11 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 12 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 13 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 14 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 15 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 16 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 17 12/10/2024 POLICE DEPT 2024 Dodge Durango $70,718.18 $11,540.66 $1,278.01 18 12/10/2024 POLICE DEPT 2023 Ford Police Interceptor Utility $75,731.67 $12,463.71 $1,422.64 19 12/10/2024 POLICE DEPT 2023 Ford Police Interceptor Utility $75,731.67 $12,463.71 $1,422.64 20 12/10/2024 K9 2025 Ford Police Interceptor Utility $75,359.81 $13,629.47 $1,391.67 21 12/10/2024 K9 2025 Ford Police Interceptor Utility $75,359.81 $13,629.47 $1,391.67 22 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 23 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 24 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 25 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 26 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 27 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 28 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 29 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 30 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 31 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 32 12/10/2024 K9 2025 Ford Police Interceptor Utility $75,359.81 $13,629.47 $1,391.67 33 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 34 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 35 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 36 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 37 12/10/2024 PATROL 2025 Ford Police Interceptor Utility $71,648.20 $11,630.62 $1,349.66 38 11/11/2024 HOMELESS PROGRAM 2025 Ford Explorer $56,796.06 $7,648.67 $1,380.02 39 11/11/2024 HOMELESS PROGRAM 2025 Ford Explorer $56,796.06 $7,648.67 $1,380.02 40 11/20/2024 ANIMAL SERVICES 2025 Ford F-350 $143,635.00 $51,549.76 $1,945.83 41 11/20/2024 ANIMAL SERVICES 2025 Ford F-350 $143,635.00 $51,549.76 $1,945.83 42 11/20/2024 ANIMAL SERVICES 2025 Ford F-350 $143,635.00 $51,549.76 $1,945.83 43 11/20/2024 ANIMAL SERVICES 2025 Ford F-350 $143,635.00 $51,549.76 $1,945.83 44 11/20/2024 ANIMAL SERVICES 2025 Ford F-350 $143,635.00 $51,549.76 $1,945.83 45 11/20/2024 ANIMAL SERVICES 2025 Ford F-350 $143,635.00 $51,549.76 $1,945.83 $3,653,662.50 $777,241.53 $63,860.59
Vehicles on Order

Page 1 ends

CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 17, 2026
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Resolution Approving of Cooperative Agreement No. 25- 1003340 between the City of San Bernardino and the San
Bernardino County Transportation Authority (SBCTA) for
the Project Report and Environmental Document, Plans,
Specifications and Estimates (PS&E), and Right-of-Way
(ROW) Acquisition, and SBCTA Project Management for
the Del Rosa Avenue / State Route 210 Interchange
Improvements Project (Wards 2,7)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution No. 2026-088;

1. Approving Cooperative Agreement No. 25-1003340 between the City of San Bernardino and the San Bernardino County Transportation Authority (SBCTA) for the Project Report and Environmental Document, Plans, Specifications and Estimates (PS&E), and Right-of-Way (ROW) Acquisition, and SBCTA Project Management for the Del Rosa Avenue / SR-210 interchange; and

2. Authorizing the Director of Finance and Management Services to record a budget adjustment in Measure I Fund 129 in the amount of $1,277,600 for FY 27/28 for Project Report and Environmental Document, Plans, Specifications and Estimates (PS&E), and Right-of-Way (ROW) Acquisition, and SBCTA Project Management; and

3. Authorizing the City Manager to execute the Cooperative Agreement and any necessary administrative documents to implement the project in accordance with the terms of the agreement.

Packet Page. 2088
City Manager's Comments
This is the next step in moving the Del Rosa Avenue/ SR-210 interchange project forward.

Executive Summary
The proposed Cooperative Agreement between the City of San Bernardino and the San Bernardino County Transportation Authority (SBCTA) establishes roles, responsibilities, and funding commitments for the development and delivery of the Del Rosa Avenue / State Route 210 Interchange Improvements Project.

The improvements are intended to enhance traffic operations, increase capacity, and improve safety at the interchange by widening the eastbound and westbound onramps to two lanes, widening Del Rosa Avenue to provide dual left turn lanes, and construct tie-back retaining walls at the bridge undercrossing.

The total estimated project cost is $4,600,000, with SBCTA contributing $2,822,400 (67.2% public share) and the remaining $1,777,600 (32.8% local share) funded by the City of San Bernardino, County of San Bernardino, and City of Highland based on the agreed cost-sharing formula. Approval of this agreement will allow the project to proceed through environmental clearance, design, right-of-way acquisition, and construction.

Background
The Del Rosa Avenue / SR-210 interchange serves as a key regional access point connecting local streets within the City of San Bernardino to the State Route 210 freeway corridor. Over time, increased traffic demand and regional growth have created congestion and operational limitations at the interchange, particularly at the freeway ramps and the Del Rosa Avenue intersection. To address these conditions, the City requested initiation of improvements to enhance traffic operations and improve safety at the interchange. In response, SBCTA and the City agreed to collaborate on advancing the project through the Project Report and Environmental Document, Plans, Specifications and Estimates (PS&E), and Right-of-Way (ROW).

The proposed improvements include:
• Widening the eastbound and westbound SR-210 on-ramps to two lanes • Widening Del Rosa Avenue to provide dual left-turn lanes • Constructing tie-back retaining walls at the bridge undercrossing • Implementing additional roadway and intersection improvements necessary to support the interchange expansion.

SBCTA will act as the lead agency and project manager, responsible for delivering all phases of the project, Project Report and Environmental Document, Plans, specifications and Estimates (PS&E), and Right-of-Way (ROW) Acquisition These responsibilities include consultant selection, preparation of environmental documentation, final design, and right-of-way coordination.

Packet Page. 2089
The City will participate in project oversight, provide timely reviews and approvals throughout each phase, coordinate with SBCTA through the Project Development Team (PDT) process, and reimburse SBCTA for the City’s agreed share of project costs.

Discussion
The total estimated cost of the Del Rosa Avenue / SR-210 Interchange Improvements Project is $4,600,000. Funding for this phase will be shared between SBCTA and local agencies in accordance with the SBCTA Development Mitigation Nexus Study and Measure I Strategic Plan.

SBCTA will contribute $2,822,400, representing the 67.2% public share of the project cost through the Valley Interchange Phasing Program.

Funding Source Amount Percentage
SBCTA Public Share $2,822,400 67.2%
Local Development Share $1,777,600 32.8%
Total Project Cost $4,600,000 100%
Local Share Breakdown
The remaining 32.8% local share, totaling $1,777,600, will be funded jointly by participating agencies based on the agreed allocation formula:
• 63% – City of San Bernardino
• 28% – City of Highland
• 9% – County of San Bernardino
Total Local Development Share: $1,777,600
The SBCTA public share contribution does not include the $400,000 in SBCTA project management fees. As a result, the SBCTA public share reflects 67.2% of the estimated project cost, with the remaining $1,777,600 to be funded by the local development share by the City of San Bernardino, City of Highland and the County of San Bernardino. The City of San Bernardino’s share is estimated at $1,119,888 with additional contributions from the County of San Bernardino and the City of Highland.

Agency Participation Contribution
City of San Bernardino 63% $1,119,888
City of Highland 28% $497,728.00
County of San Bernardino 9% $159,984.00
Packet Page. 2090
Agency Participation Contribution
Total Local Share 100% $1,777,600
The City of San Bernardino intends to enter into separate cooperative agreements with the County of San Bernardino and the City of Highland to formalize cost-sharing responsibilities and coordination for the project. These agreements will establish each agency’s proportional funding contribution and participation in the development phases of the project.

Upon completion of design, the City will continue to pursue additional state and federal funding opportunities to support construction.

The anticipated project schedule includes:

Milestone Estimated
Date
Start of Project Approval and
Environmental Document Phase (PA/ED)
December 2026
Environmental Approval March 2028
Design Approved / ROW Certified August 2029
These milestones may be adjusted depending on environmental review, right-of-way acquisition, and funding availability.
2021-2025 Strategic Targets and Goals
Authorizing this agreement aligns with Key Target No. 3: Improved Quality of Life.

Project will enhance roadway operations, accessibility, and overall corridor appearance. The Project supports the City’s goal of maintaining and improving public infrastructure that contributes to efficient transportation corridors and well-maintained community environments.

Fiscal Impact
The total estimated project cost is $4,600,000, with SBCTA contributing $2,822,400 and the remaining $1,777,600 funded by local agencies based on the agreed costsharing formula. • Traffic Safety funds in the amount of $500,000, previously approved part of the adopted FY 2025-2026 Capital Improvement Program.
• Measure I in the amount of $1,277,600 for FY 2027/2028 Packet Page. 2091
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution No. 2026-088;

4. Authorizing the City Manager to execute the Cooperative Agreement and any necessary administrative documents to implement the project in accordance with the terms of the agreement.

Attachments
Attachment 1 Resolution No.2026-088
Attachment 2 Coop Agreement with SBCTA
Attachment 3 Funding Table
Attachment 4 Location Map
Ward:

Ward 2,7
Synopsis of Previous Council Actions: NONE
CC: Eric Levitt, City Manager
Packet Page. 2092
Resolution No. 2026-088
Resolution No. 2026-088
June 17, 2026

Page 1 of 4 ends

RESOLUTION NO. 2026-088

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,
APPROVING COOPERATIVE AGREEMENT NO. 25-
1003340 BETWEEN THE CITY OF SAN BERNARDINO AND

THE SAN BERNARDINO COUNTY TRANSPORTATION
AUTHORITY (SBCTA) FOR THE PALM AVENUE / I-215

INTERCHANGE IMPROVEMENTS PROJECT (PID, PA/ED,
AND PS&E PHASES); AUTHORIZING THE DIRECTOR OF

FINANCE AND MANAGEMENT SERVICES TO APPROVE

THE REALLOCATION OF MEASURE I FUNDS IN THE
AMOUNT OF $1,277,600 FOR FY 27/28; AND

AUTHORIZING THE CITY MANAGER OR DESIGNEE TO

EXECUTE THE COOPERATIVE AGREEMENT AND ANY

NECESSARY ADMINISTRATIVE DOCUMENTS TO

IMPLEMENT THE PROJECT
WHEREAS, the City of San Bernardino intends to partner with the San Bernardino County Transportation Authority (SBCTA) to advance the planning and development of the Del Rosa Avenue / State Route 210 Interchange Improvements Project (“Project”); and WHEREAS, the City and SBCTA propose to enter into Cooperative Agreement No. 25- 1003340 to establish the roles, responsibilities, and cost-sharing arrangements necessary to complete the Project Report and Environmental Document, Plans, Specifications and Estimates (PS&E), and Right-of-Way (ROW) Acquisition, and SBCTA Project Management ; and WHEREAS, under the terms of the Cooperative Agreement, the City of San Bernardino and SBCTA will share in the overall costs associated with the Project Report and Environmental Document, Plans, Specifications and Estimates (PS&E), and Right-of-Way (ROW) Acquisition, and SBCTA Project Management with each agency contributing its proportional share toward the development of the project; and
WHEREAS, funding for the City's share of project development will include $1,277,600 from Measure I (Fund 129) for Fiscal Year 2027–2028.; and WHEREAS, upon completion and approval of the final design phase, the City of San Bernardino intends to pursue state and federal funding opportunities, in order to secure funding for the construction phase of the project.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

Packet Page. 2093
Resolution No. 2026-088
Resolution No. 2026-088
June 17, 2026

Page 2 of 4 ends

SECTION 2. The City Council hereby approves Cooperative Agreement No. 25-1003340 between the City of San Bernardino and the San Bernardino County Transportation Authority.

SECTION 3. The City Manager or designee is hereby authorized to execute the Cooperative Agreement and any necessary administrative documents to implement the project in accordance with the terms of the agreement.

SECTION 4. The Director of Finance & Management Services is authorized to amend the budget to include $1,277,600 from Measure I for FY 2027/28.

SECTION 5. The Mayor and City Council finds that approval of this Resolution and the Cooperative Agreement does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) (Public Resources Code §21065) and CEQA Guidelines §15378(b)(5), because it involves administrative and fiscal activities, including funding allocation and interagency coordination, that will not result in a direct or reasonably foreseeable indirect physical change in the environment. In the alternative, even if the activity were deemed a project, it is exempt from CEQA pursuant to CEQA Guidelines §15061(b)(3) (the common sense exemption), because it can be seen with certainty that there is no possibility that approval of the Cooperative Agreement, which is limited to project development activities (including environmental review, design, and right-of-way planning), will have a significant effect on the environment. Environmental review for the Del Rosa Avenue / State Route 210 Interchange Improvements Project will be conducted at the appropriate time prior to any approval of physical construction or implementation activities.

SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 7. Effective Date. This Resolution shall become effective immediately.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 17th day of June 2026.

Helen Tran, Mayor
City of San Bernardino
Attest:

Telicia Lopez, CMC, City Clerk
Packet Page. 2094
Resolution No. 2026-088
Resolution No. 2026-088
June 17, 2026

Page 3 of 4 ends

Approved as to form:

Sonia Carvalho, City Attorney
Packet Page. 2095
Resolution No. 2026-088
Resolution No. 2026-088
June 17, 2026

Page 4 of 4 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Telicia Lopez, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2026-088, adopted at a regular meeting held on the 17th day of June, 2026 by the following vote:

Telicia Lopez, CMC, City Clerk
Packet Page. 2096
25-1003340 Page 1 of 9
COOPERATIVE AGREEMENT NO. 25-1003340

BETWEEN

SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY
AND

CITY OF SAN BERNARDINO
FOR

PROJECT INITIATION DOCUMENT (PID), PROJECT APPROVAL AND

ENVIRONMENTAL DOCUMENT (PA/ED),

PLANS, SPECIFICATIONS AND ESTIMATE (PS&E), AND RIGHT OF WAY (ROW) PHASES
FOR THE DEL ROSA AT STATE ROUTE 210 (SR-210) INTERCHANGE

IN THE CITY OF SAN BERNARDINO
I. PARTIES AND TERM
A. THIS COOPERATIVE AGREEMENT (“AGREEMENT”) is made and entered into by and between the San Bernardino County Transportation Authority ( “SBCTA”) and the City of San Bernardino (“CITY”). SBCTA and CITY may be referred to herein individually as a “PARTY” and collectively as “PARTIES”.

B. Unless this AGREEMENT is terminated early as provided in Section V, Paragraph E, this AGREEMENT shall terminate upon completion of the PARTIES’ obligations associated with the project initiation document (PID), project approval and environmental document (“PA/ED”), plans, specifications and estimate (“PS&E”), and right of way (“ROW”) phases described herein or December 31, 2039, whichever is earlier in time. The indemnification provisions identified in Section V, Paragraphs C through D, shall survive the termination of this AGREEMENT. Should any claims arising out of this AGREEMENT be asserted against one of the PARTIES prior to the termination of this AGREEMENT, the AGREEMENT shall be extended until such time as the claims are settled, dismissed or paid.

II. RECITALS
A. WHEREAS CITY requested to initiate improvements of the Del Rosa Avenue at State Route 210 Interchange within the limits of the City of San Bernardino (“PROJECT”); and B. WHEREAS planned improvements include widening the eastbound and westbound on-ramp to two lanes, widening Del Rosa Avenue to provide dual left turn lanes, constructing tie-back retaining walls at the bridge undercrossing, as further described in Attachment B, attached hereto and made part of this AGREEMENT, and are collectively defined as the “PROJECT”; and
C. WHEREAS, the PROJECT is in the Measure I 2010-2040 Strategic Plan and identified as eligible in the Valley Interchange Program; and
Packet Page. 2097
25-1003340 Page 2 of 9
D. WHEREAS the PARTIES consider the PROJECT to be high priority and are willing to participate in funding the PROJECT pursuant to the provisions of the SBCTA Development Mitigation Nexus Study; and
E. WHEREAS the PARTIES wish to enter into this AGREEMENT to delineate roles, responsibilities, and funding commitments related to Project Management, PID, PA/ED, PS&E, and ROW activities of the PROJECT; and
F. WHEREAS the CITY desires SBCTA to provide Project Management services, estimated at $400,000, the phases of the PROJECT identified herein, and understands it is the CITY’s sole responsibility to pay 100% of the actual SBCTA Project Management costs in accordance with SBCTA Measure I Strategic Plan Policy 40005 VFI-34 and 35; and G. WHEREAS the remaining PROJECT cost for the PID, PA/ED, PS&E, and ROW phases shall be funded with 32.8% Development Share funds and 67.2% Public Share funds, as defined by the Nexus Study and the SBCTA Measure I 2010-2040 Strategic Plan and Policy 40005/VFI19; and H. WHEREAS the PARTIES agree to limit the Project cost to $10 Million for the PID, PA/ED, PS&E, and ROW phases, and
I. WHEREAS the PARTIES’ intent is that this AGREEMENT is limited to the identified project phases herein and SBCTA shall not be obligated to fund or participate in any other project phases for PROJECT unless the PARTIES execute a new cooperative agreement.

NOW, THEREFORE, for good and valuable consideration and the mutual promises contained herein, the PARTIES agree to the following:

III. SBCTA RESPONSIBILITIES
SBCTA agrees:

A. To provide Project Management services and act as lead agency for the PID, PA/ED, PS&E, ROW and CONSTRUCTION phases, and to diligently undertake and complete the PA/ED, PS&E, ROW, and CONSTRUCTION work for the PROJECT, including the selection and retention of consultants. Performance of services under these consultant contracts shall be subject to the technical direction of the SBCTA’s Director of Project Delivery and Express Lanes, or designee, with input and consultation from CITY. SBCTA shall ensure that consultants and contractors participating in PROJECT work are appropriately qualified or licensed to perform the tasks assigned to them and shall be responsible for managing the quality of the PROJECT work.

B. To contribute towards PID, PA/ED, PS&E, ROW, and CONSTRUCTION phases of the PROJECT cost as shown in Attachment A. The actual cost of a specific phase may ultimately vary from the estimates provided in Attachment A, and should SBCTA’s total share of the PID, PA/ED, PS&E, ROW, and CONSTRUCTION phases exceed the estimates as shown in Packet Page. 2098
25-1003340 Page 3 of 9
Attachment A, SBCTA agrees to entertain amendment of the AGREEMENT in good faith in accordance with Section V, Paragraph A, below. However, in accordance with Policy 40005/VFI-36, in no case shall the SBCTA contribution exceed $6,720,000.

C. To prepare and submit to CITY signed invoices for reimbursement of allowable PROJECT expenditures. Invoices may be submitted to CITY as frequently as monthly.

D. To establish and maintain an accounting system conforming to Generally Accepted Accounting Principles (“GAAP”) to support SBCTA’s request for reimbursement, payment vouchers, or invoices which segregate and accumulate costs of Project Management, PID, PA/ED, PS&E, and ROW work elements and produce monthly reports which clearly identify reimbursable costs, matching fund costs, indirect cost allocation, and other allowable expenditures by SBCTA.

E. To prepare a final accounting of expenditures, including a final invoice for the actual Project Management, PID, PA/ED, PS&E, and ROW costs. The final accounting and invoice shall be submitted no later than one hundred and twenty (120) calendar days following the completion of this AGREEMENT and shall be submitted to CITY. The invoice shall include a statement that these PROJECT funds were used in conformance with this AGREEMENT and for those PROJECT-specific Project Management, PID, PA/ED, PS&E, and ROW work activities.

F. To cooperate in having a PROJECT-specific audit completed by CITY, at its option, upon completion of Project Management, PID, PA/ED, PS&E, and ROW work. The audit should justify and validate that all funds expended on the PROJECT were used in conformance with this AGREEMENT.

G. To reimburse CITY for costs that are determined by subsequent audit to be unallowable within ninety (90) calendar days of SBCTA receiving notice of audit findings, which time shall include an opportunity for SBCTA to respond to and/or resolve the finding. Should the finding not be otherwise resolved and SBCTA fails to reimburse monies due to CITY within ninety (90) calendar days of audit finding, or within such other period as may be agreed between both PARTIES hereto, the CITY’s Council reserves the right to withhold future payments due SBCTA from any source under CITY’s control.

H. To designate a responsible staff member that will be SBCTA’s representative in attending the Project Development Team (“PDT”) meetings, receiving day-to-day communication, and providing Project Management services.

I. To complete review and provide comments on PROJECT documents in a timely manner that is consistent with the schedule.

J. To provide CITY with a proposed project schedule to complete the PROJECT.

K. To include CITY in PDT meetings and related communications on PROJECT progress as well as to provide CITY with copies of PDT meeting minutes and action items.

Packet Page. 2099
25-1003340 Page 4 of 9
L. To perform the design in accordance with State and Federal standards and practices.

M. To provide CITY with a reasonable amount of review and approval time and an opportunity to review, comment on, and approve PID, PA/ED, PS&E, and ROW documents.

N. To apply for encroachment permits authorizing entry of SBCTA and its consultants and contractors onto CITY right of way to perform investigative activities, including surveying and geotechnical borings, and construction activities required by the PROJECT; and to receive encroachment permits from the CITY at no cost to SBCTA, its consultants, and contractors.

O. To obtain all necessary PROJECT permits, agreements and/or approvals from appropriate agencies; all necessary PROJECT permits, agreements, and/or approvals from the CITY shall be provided at no cost to SBCTA, its consultants, and contractors. All mitigation, monitoring, and/or remedial action required by said permits and/or agreements obtained from agencies other than the CITY shall constitute part of the PROJECT cost.

P. To provide all necessary ROW services to acquire rights-of-way for PROJECT through negotiated purchases of property, or if necessary, through Eminent Domain. All voluntary acquisitions will be acquired in the name of CITY for property in CITY’s jurisdiction.

If necessary, SBCTA will conduct Resolutions of Necessity hearings and acquire property in the name of SBCTA for the purposes of construction of the PROJECT and convey such property, or portions thereof, to CITY prior to the start of construction.

Q. To identify the utilities within the PROJECT area and coordinate with utility companies to determine their location, and if necessary, their relocation.

R. To provide written notice to CITY upon SBCTA’s determination that the PROJECT work under AGREEMENT is substantially completed. For this AGREEMENT, “substantially completed” shall mean that the PROJECT plans and specification have been approved by Caltrans and ROW has been certified.

S. To require all contractors and/or consultants under contract to perform services related to the PROJECT to include the CITY, its officers, directors, employees and agents as additional insureds and to indemnify, defend, and hold harmless the CITY, its officers, directors, employees and agents from any liability, claims, demands, suits or actions which made be made by any person resulting from the PROJECT.

IV. CITY RESPONSIBILITIES
CITY agrees:

A. To reimburse SBCTA for CITY’s share of actual costs incurred towards the PID, PA/ED, PS&E, and ROW phases of the PROJECT and for SBCTA’s Project Management as shown in Attachment A. The actual cost of a specific phase may ultimately vary from the estimates provided in Attachment A, and should CITY’s total share for the PID, PA/ED, PS&E, and Packet Page. 2100
25-1003340 Page 5 of 9
ROW phase with SBCTA’s Project Management exceed the estimates as shown in Attachment A, PARTIES shall amend AGREEMENT and CITY shall contribute these additional costs beyond SBCTA’s maximum contribution as shown in Article III.B and Attachment A..

B. When conducting an audit of the costs claimed under the provisions of this AGREEMENT, to rely to the maximum extent possible on any prior audit of SBCTA performed pursuant to the provisions of State and Federal laws. In the absence of such an audit, work of other auditors will be relied upon to the extent that work is acceptable to CITY when planning on conducting additional audits.

C. To designate a responsible staff member that will be CITY’s representative attending the PDT meetings, receiving day-to-day communication and reviewing the PROJECT documents.

D. To review, provide comments on, and approve PROJECT documents within two (2) weeks of receiving the review request from SBCTA.

E. To provide permits, inspections, reviews, and oversight, and to accept transfer of title of properties, all at no cost to SBCTA or to consultants and contractors contracted by SBCTA to work on the PROJECT.

F. To provide SBCTA copies of the franchise/utility agreements for the utilities in the PROJECT area for the purpose of determining prior rights and estimating utility relocation costs.

G. To assist SBCTA as requested and, when necessary, exercise its rights under utility relocation law or any franchise agreement to cause each utility to relocate or rearrange its utility facility.

H. To accept in writing the PROJECT within thirty (30) days of receipt of written notice from SBCTA that the PROJECT is substantially completed as described by Paragraph “R” in Section III, which acceptance shall not be unreasonably withheld or delayed. Withholding or delaying because of non-material work remaining to be completed shall be deemed unreasonable and City shall be fully responsible for all additional costs resulting from such delay or withholding of acceptance.

I. To accept conveyance of property acquired in the name of SBCTA for the purposes of construction of the PROJECT after completion of construction.

J. CITY is responsible for all commitments which are part of their direct agreement with Caltrans, including but not limited to Freeway Maintenance Agreement and Landscape and Aesthetic Maintenance Agreements
V. MUTUAL RESPONSIBILITIES
The PARTIES agree:

Packet Page. 2101
25-1003340 Page 6 of 9
A. To abide by all applicable Federal, State and Local laws and regulations pertaining to the PROJECT, including policies in the applicable program in the Measure I 2010-2040 Strategic Plan, as amended, as of the Effective Date of this AGREEMENT.

B. Eligible PROJECT reimbursements shall include only those costs incurred by SBCTA for PROJECT-specific work activities that are described in this AGREEMENT and shall not include escalation or interest.

C. Neither SBCTA nor any officer, director, employee or agent thereof is responsible for any injury, damage or liability occurring or arising by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this AGREEMENT. It is understood and agreed that, pursuant to Government Code Section 895.4, CITY shall fully defend, indemnify and save harmless SBCTA, its officers, directors, employees or agents from all claims, suits or actions of every name, kind and description brought for or on account of injury (as defined by Government Code Section 810.8) occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this AGREEMENT. CITY’s indemnification obligation applies to SBCTA’s “active” as well as “passive” negligence but does not apply to SBCTA’s “sole negligence” or “willful misconduct” within the meaning of Civil Code Section 2782.

D. Neither CITY nor any officer, director, employee or agent thereof is responsible for any injury, damage or liability occurring or arising by reason of anything done or omitted to be done by SBCTA and under or in connection with any work, authority or jurisdiction delegated to SBCTA under this AGREEMENT. It is understood and agreed that, pursuant to Government Code Section 895.4, SBCTA shall fully defend, indemnify and save harmless CITY, its officers, directors, employees or agents from all claims, suits or actions of every name, kind and description brought for or on account of injury (as defined by Government Code Section 810.8) occurring by reason of anything done or omitted to be done by SBCTA under or in connection with any work, authority or jurisdiction delegated to SBCTA under this AGREEMENT. SBCTA’s indemnification obligation applies to CITY’s “active” as well as “passive” negligence but does not apply to CITY’s “sole negligence” or “willful misconduct” within the meaning of Civil Code Section 2782. Further, to the extent, but only to the extent, that SBCTA’s Work falls within the scope of Civil Code Section 2782.8, the following indemnification is applicable: SBCTA shall indemnify and defend CITY and its officers, directors and employees from any and all losses, damages, liability, actions, and/or costs for claims that arise out of, pertaining to, or that are related to the negligence, recklessness, or willful misconduct of the design professional.

E. This AGREEMENT will be considered terminated upon completion of PROJECT closeout and reimbursement of eligible costs by CITY. Notwithstanding any other provision herein, to the extent consistent with the terms and obligations hereof, any PARTY may terminate this AGREEMENT at any time, with or without cause, by giving sixty (60) calendar days written notice to the other PARTY. In the event of a termination, the PARTY terminating this AGREEMENT shall be liable for any costs or other obligations it may have incurred under the terms of the AGREEMENT prior to termination.

Packet Page. 2102
25-1003340 Page 7 of 9
F. The Recitals to this AGREEMENT are true and correct and are incorporated into this AGREEMENT.

G. All signatories hereto warrant that they are duly authorized to execute this AGREEMENT on behalf of said PARTY and that by executing this AGREEMENT, the PARTIES hereto are formally bound to this AGREEMENT.

H. This AGREEMENT shall be governed by and construed in accordance with the laws of the State of California. All PARTIES agree to follow all applicable local, state, county and federal laws and ordinances with respect to performance under this AGREEMENT.

I. The PARTIES agree that each PARTY and any authorized representative, designated in writing to the PARTIES, and upon reasonable notice, shall have the right during normal business hours to examine all PARTIES’ financial books and records with respect to this AGREEMENT and the PROJECT. The PARTIES agree to retain their books and records for a period of five (5) years from the later of: a) the date on which this AGREEMENT terminates; or b) the date on which such book or record was created.

J. If any clause or provisions of this AGREEMENT is illegal, invalid or unenforceable under applicable present or future laws, then it is the intention of the PARTIES that the remainder of this AGREEMENT shall not be affected but shall remain in full force and effect.

K. This AGREEMENT cannot be amended or modified in any way except in writing, signed by all PARTIES hereto.

L. Neither this AGREEMENT, nor any of the PARTIES’ rights, obligations, duties, or authority hereunder may be assigned in whole or in part by either PARTY without the prior written consent of the other PARTY in its sole, and absolute discretion. Any attempted assignment shall be deemed void and of no force and effect.

M. No waiver of any default shall constitute a waiver of any other default whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a PARTY shall give the other PARTY any contractual rights by custom, estoppel, or otherwise.

N. In the event of litigation arising from this AGREEMENT, each PARTY to this AGREEMENT shall bear its own costs, including attorney(s) fees. This paragraph shall not apply to the costs or attorney(s) fees relative to paragraphs C and D of this Section V.

O. This AGREEMENT may be signed in counterparts, each of which shall constitute an original.

This AGREEMENT is effective on the date executed by SBCTA (“Effective Date”), following execution by both PARTIES.

P. Any notice required, authorized or permitted to be given hereunder or any other communications between the PARTIES provided for under the terms of this AGREEMENT shall be in writing, unless otherwise provided for herein, and shall be served personally or by reputable courier addressed to the relevant party at the address/fax number stated below:

Packet Page. 2103
25-1003340 Page 8 of 9
If to SBCTA: Sal Chavez
Project Delivery Manager
1170 West Third Street
San Bernardino, CA 92410-1715
If to CITY: Azzam Jabsheh, Deputy Director of Public Works/ City Engineer
290 N.D Street
San Bernardino, CA 92401
Q. There are no third party beneficiaries, and this AGREEMENT is not intended, and shall not be construed to be for the benefit of, or be enforceable by, any other person or entity whatsoever. ----------------------------------- SIGNATURE PAGE TO FOLLOW----------------------------------- Packet Page. 2104
25-1003340 Page 9 of 9

SIGNATURE PAGE TO
COOPERATIVE AGREEMENT NO. 25-1003340

BETWEEN

SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY

AND CITY OF SAN BERNARDINO

SAN BERNARDINO COUNTY

TRANSPORTATION AUTHORITY

CITY OF SAN BERNARDINO
By:___________________________ By:__________________________ Rick Denison Eric Levitt
President, Board of Directors City Manager
Date:__________________________ Date:__________________________ APPROVED AS TO FORM: APPROVED AS TO FORM:

By:____________________________ By:____________________________ Julianna K. Tillquist Sonia R. Carvalho
General Counsel City Attorney
Packet Page. 2105
25-1003340
Attachment A
Project Scope:

At the Del Rosa Avenue State Route 210 (SR 210) interchange, widen the eastbound and westbound on-ramp to two lanes, widen Del Rosa Avenue to provide dual left turn lanes, and construct tie-back retaining walls at the bridge undercrossing.

Project Cost Estimate and Funding Shares:

SBCTA’s Share: Public Share: 67.2%
City’s Share: Development Share or Local Share: 32.8% (City of San Bernardino) Phase Estimated Cost1 Public Share2 Development
Share
PID & PA/ED $2,200,000 $1,478,400 $721,000
PS&E $1,500,000 $1,008,000 $492,000
ROW $500,000 $336,000 $164,000
SBCTA Project
Management $400,000 $0 $400,000
Total $4,600,000 $2,822,400 $1,777,600
1Estimated cost assumes analysis of one build alternative. 2Total Public Share contribution shall not exceed $6,720,000 Project Milestones:

Milestone1 Actual
(Forecast)
Start of Project Approval and Environmental Document Phase (PA/ED) (12/2026) Environmental Approval (03/2028)
Design Approved and ROW Certified (08/2029)
1Milestone assumes analysis of one build alternative. Anticipated environmental determination under CEQA is a Categorical Exemption and under NEPA a Categorical Exclusion.

Packet Page. 2106
25-1003340
Attachment B

CONCEPTUAL LAYOUT
Packet Page. 2107

67.2% 32.8%
SR-210 Del Rosa Interchange Engineers Estimate Escalated 4% for 6 years 7/8/2025 TOTAL MSI CITY OTHER 1.04 $ 15,000,000.00
Project Report and Environmental Approval*,** $ 2,200,000 $ 1,478,400 $ 721,600 1.04 $ 15,600,000.00 Plans, Specifications, and Estimates $ 1,500,000 $ 1,008,000 $ 492,000 1.04 $ 16,224,000.00 Right of Way Acquisition $ 610,000 $ 409,920 $ 200,080 $ 500,000 $ 610,000 1.04 $ 16,872,960.00 Construction & Construction Management $ 35,650,000 $ 3,823,680 $ 31,826,320 $ 24,607,601 $ 31,000,000 1.04 $ 17,547,878.40 SBCTA Project Management $ 400,000 $ - $ 400,000 1.04 $ 18,249,793.54 TOTAL $ 40,360,000 $ 6,720,000 $ 33,640,000 Escalated Total $ 40,360,000 *includes PID phase and Caltrans oversight fee
**assumes CE for environmental document

64.3% 35.7%
I-215 Palm Avenue Interchange Engineers Estimate Escalated 4% for 6 years 6/25/2025 TOTAL MSI CITY OTHER
Project Report and Environmental Approval*,** $ 3,300,000 $ 2,121,900 $ 1,178,100 Plans, Specifications, and Estimates $ 3,500,000 $ 2,250,500 $ 1,249,500 Right of Way Acquisition $ - $ - $ - $ 500,000 $ 608,326 Construction & Construction Management $ - $ - $ - $ 71,173,000 $ 86,592,873 SBCTA Project Management $ 500,000 $ - $ 500,000
TOTAL $ 7,300,000 $ 4,372,400 $ 2,927,600 $ - Escalated Total $ 115,801,499 25% factor for ROW and CON support *includes PID phase and Caltrans oversight fee
**assumes EIR for environmental document
Cooperative Agreement with City of San Bernardino
Cooperative Agreement with City of San Bernardino
Packet Page. 2108

67.2% 32.8%
SR-210 Del Rosa Interchange

63.0% 28.0% 9.0% 32.8%
CITY HIGHLAND COUNTY Local Total
Project Report and Environmental Approval*,** $ 2,200,000 $ 1,478,400 $ 454,608 $ 202,048 $ 64,944 $ 721,600 Plans, Specifications, and Estimates $ 1,500,000 $ 1,008,000 $ 309,960 $ 137,760 $ 44,280 $ 492,000 Right of Way Acquisition $ 500,000 $ 336,000 $ 103,320 $ 45,920 $ 14,760 $ 164,000 Construction & Construction Management $ - $ - $ - $ - $ - $ - SBCTA Project Management $ 400,000 $ - $ 252,000 $ 112,000 $ 36,000 $ 400,000 TOTAL $ 4,600,000 $ 2,822,400 $ 1,119,888 $ 497,728 $ 159,984 $ 1,777,600 *includes PID phase and Caltrans oversight fee
**assumes CE for environmental document
Cooperative Agreement with City of San Bernardino - No Construction

TOTAL MSI
Packet Page. 2109
LEGEND
Exis
Ɵng/Modify Tra
ffic Signal—Interconnect
Ramp Widening Street Widening
SR-210 at Del Rosa Avenue – Opera
Ɵonal Improvements:
 Widen the westbound and eastbound entrance ramp from 1 to 2 lanes Ramp Metering of the entrance ramps Widen the westbound exit ramp from 2 to 3 lanes Widen Del Rosa Ave to provide dual le Ō turn lanes including new
Ɵe-back
retaining walls at the bridge undercrossing
 Modify westbound and eastbound ramp tra
ffic signals
 Interconnect the tra
ffic signal from Date Place to E. Date Street
 Intelligent Transporta
Ɵon Improvement as needed
 Minimal to no right of way by construc
Ɵon of retaining walls.

Local Share is 32.8% which is shared 63% City of San Bernardino, 9% San Bernardino County, & 28% City of Highland
State Route 210 at Del Rosa Avenue
Operational Improvements
Conceptual Information (March 2025)
Packet Page. 2110
55600.00224\44821016.1

CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 17, 2026
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Resolution Declaring Intent to Conduct a Public Hearing on August 19, 2026, to Consider Adjusting the Maximum
Permitted Service Rates for Solid Waste, Recycling,
Organic Waste Collection, Processing, and Disposal
Services (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, Calidornia, adopt Resolution No. 2026-089, declaring its intention to conduct a public hearing on August 19, 2026, to consider adjusting the maximum permitted service rates for solid waste, recycling, organic waste collection, processing, and disposal services.

City Manager's Comments
This item has proposed rates from Burrtec including the 3.28% CPI adjustment and a request for increases in permissible service rate increases based on implementation of operation changes based on requirements of State law including the implementation of SB 1383.

Executive Summary
The City of San Bernardino (City) and Burrtec Waste, Inc. (Burrtec), have an exclusive franchise agreement (Agreement) for solid waste, recycling and organics collection and processing services within the City. These services include residential/multifamily homes, and commercial/industrial businesses. Through the terms of the franchise agreement, Burrtec may request annual rate increases to cover the increased costs, if any, of providing solid waste collection and processing services. Such costs include annual adjustments for inflationary increases in Consumer Price Index (CPI), and any additional increased operation costs.

This action is to commence the rate setting process for FY 2026-27 by declaring the Packet Page. 2111
55600.00224\44821016.1
City’s intent to conduct a public hearing on August 19, 2026. The hearing will be to consider the recommended rate increase(s) as proposed by Burrtec, and to comply with the noticing requirements set forth in Proposition 218. If the resolution is approved, City staff will coordinate with Burrtec to mail the required Proposition 218 Notice (Attachment 2) to all affected residential and commercial customer accounts.

Background
The term of the Agreement for solid waste services was initially April 1, 2016 through March 31, 2026 and was subsequently extended to March 31, 2031 by the adoption of the Third Amendment to the Franchise Agreement on July 3, 2024. The CPI for the rate increases shall refer to the 12-month annual average percentage change for the most recent January 1 to December 31 period, compared to the prior January 1 to December 31 period, in the All Urban Consumers Index (CPI-U), Not Seasonally Adjusted, All Items, Riverside-San Bernardino-Ontario, CA, as published by the U.S. Department of Labor, Bureau of Labor Statistics.

Under Section 21.1.3(a) of the Agreement, Burrtec may submit a proposed annual Consumer Price Index (CPI) inflationary rate adjustment and rate schedule to the City Manager for review by March 1 each year. The Agreement, per section 21.1.3(b), restricts the increase in Maximum Permissible Service Rates increase over 5% during any July 1 – June 30 period regardless of the amount increase in the CPI. However, if the changes to the CPI result in an increase above 5%, or below 0%, they shall be carried forward or applied in subsequent years.

Under Section 21.1.3(c) of the Agreement with Burrtec, “Contractor may adjust the Maximum Permissible Service Rates by an amount equal to the increase or incremental increase, as the case may be, in the costs (i.e. on any direct or indirect cost, whether fixed or variable) of Contractor’s provision of services under this Agreement that are caused by the Change in Law and that have been demonstrated to the City Council.”
Discussion
Burrtec has provided the City with the FY 2026-27 proposed solid waste rate adjustments (Attachment 3). Burrtec is requesting an annual CPI-based adjustment of

3.28% to all of the Permissible Service Rates per Section 21.1.3(a) of the Agreement.

Burrtec is requesting increases to the Permissible Service Rates under Section

21.1.3(c) for a second, and final, phase in of Change in Law operations costs as a direct impact of implementing Senate Bill (SB) 1383. These increases are varying and are based on the increase costs for Burrtec to implement SB 1383 with specific services. In discussions with Burrtec, staff is aware that while the law change for SB1383 occurred in 2022, Burrtec has not been able to fully implement the actual costs of service implementation increases for this. Some costs were permitted to be recovered in the FY2025 Rate increase; this proposed increase due to Change in Law will fully amortize the costs of SB 1383 implementation.

Packet Page. 2112
55600.00224\44821016.1
Furthermore, Burrtec is requesting a minor adjustment in the rate as a “Catch-Up” component to recover costs for the delay of the rate hearing and rate adoption from July 1, as determined in the franchise agreement, to August 19, 2026. The proposed rate adjustments reflect the minimum CPI rate increases allowed by the agreement as well as Burrtec’s proposed balance of the SB 1383 program costs under the Change in Law provisions stated in the agreement.

Collectively, the proposed increases account for a 13.2% increase to residential and multi-family barrel/cart Permissible Service Rates. The following table includes a demonstration of (not all) Burrtec proposed increases to the Permissible Service Rates:

Residential Service Current
Rates
Proposed 2026
Rates
Dollar
Increase
Percent
Increase
Resi/MF Barrel (3 carts)
1x Week
$27.75 $31.41 $3.66 13.2%
Mobile Home (3 Carts)
1x Week
$18.62 $21.24 $2.62 14.1%
Multi-Family Mixed
Organics (65gal Cart)
1x Week
$80.13 $83.00 $2.87 3.58%
Commercial Barrel 1x
Week
$27.61 $29.16 $1.55 5.6%
Commercial Trash
3cu.yd. 1x Week
$166.14 $172.09 $5.95 3.58%
Commercial Green
Waste 3cu.yds. 1x
Week
$136.53 $141.42 $4.89 3.58%
Commercial Food
Waste 2cu.yd. 1x Week
$270.42 $280.09 $9.67 3.58%
Roll Off Service All
Refuse Temporary
(Includes Disposal)
$638.25 $661.09 $22.84 3.58%
Service 2025
Rate
SB 1383
Change-inLaw (incld
CPI)
CPI
(3.28%)
July
Delay
Catch-Up
Franchise
Fee
(20%)
Proposed
2026
Rate
Total
Residential/MF $27.75 $1.96
($29.71)
$0.73
($30.44)
$0.24
($30.68)
$0.73
($31.41)
$31.41
Residential
35gal
$24.60 $1.96
($26.56)
$0.65
($27.21)
$0.24
($27.45)
$0.71
($28.16)
$28.16
Mobile Home 2
Barrel
$18.62 $0.41
($19.03)
$0.49
($19.52)
$0.08
($19.60)
$0.25
($19.85)
$19.85
Mobile Home 3
Barrel
$18.62 $2.77
($21.39)
$0.49
($21.56)
$0.17
($21.73)
$0.53
($22.26)
$21.24
(phase in
Packet Page. 2113
55600.00224\44821016.1
credit -
$1.34)
Commercial
Barrel
$27.61 $0.41
($28.02)
$0.73
($28.75)
$0.10
($28.85)
$0.31
($29.16)
$29.16
For complete details regarding the proposed rate increases for 2026-27, see Attachment 3.

While this proposed action includes Burrtec’s requested increase(s) for Change in Law per the agreement and is only being considered for this 2026-2027 increase, staff is recommending City Council adopt an annual pass through to all Solid Waste Services customers automatic CPI adjustments for inflation (“Annual Automatic Adjustments”) as authorized under the franchise agreement. These adjustments will impact the Solid Waste Services rates.

If approved, beginning July 1, 2027, and each July 1 thereafter, through and including adjustments effective on or after July 1, 2030, the rates for Solid Waste Services may be adjusted annually, without a further public hearing, by an amount not to exceed the annual percentage increase, if any, in the CPI, subject to a maximum increase of 5% annually. In no event may an automatic increase exceed the City’s cost of providing Solid Waste Services. This pass-through language will also be demonstrated within the Proposition 218 Notice that shall be mailed (see Attachment 2). This action will allow CPI changes (not Change in Law), which are determined and go through the public hearing process, to be passed through without the need for a public hearing or resolution for the remainder of the current agreement term. Any future change in law requested increases will continue to require a public hearing process and resolution.

Upon approval of the resolution, the City will set a proposed public hearing in order to consider the proposed solid waste rates proposed for FY 2026-27. The City and Burrtec will mail or cause to be mailed to both the property owner and tenants of the properties receiving solid waste services a notice of the proposed public hearing regarding the rate increases at least 45 days prior to the public hearing. The proposed date of the public hearing is August 19, 2026, and is 49 days from the date of the City Council meeting setting the public hearing date (June 17, 2026). At the public hearing, the Mayor and City Council will consider whether a majority protest exists. If the rates are adopted on August 19, 2026, they will be effective starting August 1, 2026. 2021-2025 Strategic Targets and Goals
Setting the public hearing aligns with:

Key Target No. 3c: Improve Quality of Life by evaluating and enhancing the quality of public safety services.

Key Target No. 3d: Improve Quality of Life by improving the City’s appearance, cleanliness, and attractiveness.

Packet Page. 2114
55600.00224\44821016.1
Fiscal Impact
There is no fiscal impact for setting the Public Hearing. There is an anticipated increase in revenues to the General Fund if the rate increase is adopted by the Mayor and City Council.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-089, declaring its intention to conduct a public hearing on August 19, 2026, to consider adjusting the maximum permitted service rates for solid waste, recycling, organic waste collection, processing, and disposal services.

Attachments
Attachment 1 Resolution No. 2026-089
Attachment 2 Proposed Proposition 218 Notice
Attachment 3 Table of Proposed Solid Waste Rates 2026-27 Attachment 4 Burrtec 2016 Franchise Agreement
Attachment 5 Burrtec 2016 Franchise Agreement – Amendment 1 Attachment 6 Burrtec 2016 Franchise Agreement – Amendment 2 Attachment 7 Burrtec 2016 Franchise Agreement – Amendment 3 Ward:

All Wards
Synopsis of Previous Council Actions:

July 2, 2025 Conduct a Public Hearing to Consider Adjusting the Maximum Permitted Service Rates for Integrated Solid Waste Collection, Processing, and Disposal Services (All Wards).

May 7, 2025 Resolution of the Mayor and City Council of the City of San Bernardin, California, Declaring it’s Intention to Conduct a Public Hearing on July 2, 2025, to Consider Adjusting the Maximum Permitted Service Rates for Integrated Waste Collection, Processing and Disposal Services (All Wards)
July 3, 2024 Approval of the Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc.

CC: Eric Levitt, City Manager
Packet Page. 2115
Resolution No. 2026-089
Resolution No. 2026
June 17, 2026

Page 1 of 3 ends

RESOLUTION NO. 2026-089

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

DECLARING ITS INTENTION TO CONDUCT A PUBLIC
HEARING ON AUGUST 19, 2026, TO CONSIDER

ADJUSTING THE MAXIMUM PERMITTED SERVICE

RATES FOR INTEGRATED SOLID WASTE COLLECTION,

PROCESSING AND DISPOSAL SERVICES
WHEREAS, solid waste collection, processing and disposal, street sweeping, and rightof-way clean up services are provided to the City of San Bernardino by Burrtec Waste Industries, Inc. (Burrtec) pursuant to an exclusive franchise agreement with the City; and WHEREAS, the agreement with Burrtec provides for an annual review of the Maximum Permitted Service Rates that Burrtec may charge residential and commercial customers; and WHEREAS, Burrtec has submitted the Annual Refuse Rate Adjustment for 2026 and are requesting an additional increase to residential rates as a “second phase” implementation of adjustments due to Change in Law Senate Bill (SB) 1383; and WHEREAS, Burrtec has submitted the Annual Refuse Rate Adjustment for 2026 and are requesting an additional increase to residential rates due to the delay in the public hearing and proposed rate adoption from July 1 of the calendar year to August 5, 2026; and WHEREAS, the City of San Bernardino is proposing to annually pass through to all Solid Waste Services customers automatic Consumer Price Index (CPI) adjustments for inflation (“Annual Automatic Adjustments”) by an amount not to exceed the annual percentage increase, if any, in the CPI, subject to a maximum increase of 5% annual; and WHEREAS, if approved, the then-current Maximum Permitted Service Rates may be adjusted by the 12-month annual average percentage change in CPI for the most recent calendar year compared to the prior calendar year for Fiscal Years 2026-27 through 2030-31 without a further public hearing; and
WHEREAS, the Mayor and City Council desire to conduct a proceeding to adjust the Maximum Permitted Service Rates for a period beginning July 1, 2027, and each July 1 thereafter, through and including adjustments effective on or after July 1, 2030, in accordance with the terms of the franchise agreement between the City and Burrtec, so that Burrtec may recover the costs of service.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

Packet Page. 2116
Resolution No. 2026-089
Resolution No. 2026
June 17, 2026

Page 2 of 3 ends

SECTION 1. The City Council of the City of San Bernardino hereby declares its intention to conduct a public hearing to consider adjusting the Maximum Permitted Service Rates for integrated solid waste collection, processing and disposal services.

SECTION 2. The hour of 5:00 p.m. on August 19, 2026, in the Feldheym Central Library, 555 West 6th Street, San Bernardino, California, 92410, is fixed as the time and place of the public hearing for the Mayor and City Council to Consider adjusting the Maximum Permitted Service Rates for integrated solid waste collection, processing and disposal services.

SECTION 3. In conformity with Article XIII D, Section 6 of the California Constitution, the Mayor and City Council will consider written protests to the proposed adjustment to the Maximum Permitted Service Rates for integrated solid waste collection, processing disposal, street sweeping, and right-of-way cleanup services at the public hearing set in section 2 above. At the hearing the Mayor and City Council will consider whether a majority protest exists.

SECTION 4. The Mayor and City Council authorizes and directs the City Manager or their designee to: (1) identify the parcels upon which the rates are proposed for imposition; (2) calculate the amount of the rates to be imposed on each parcel; and (3) provide written notice by mail to record owner of each identified parcel at least 45 days prior to the public hearing set in Section 2 above as required by Article XIII D, Section 6 of the California Constitution. In the event that the City Manager, or his or her designee, is unable to provide written notice by mail to the record owner of each identified parcel at least 45 days prior to the public hearing set in Section 2 above, the City Manager is authorized and directed to set the public hearing at a subsequent regular meeting of the Mayor and City Council.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 17th day of June, 2026.

Helen Tran, Mayor
City of San Bernardino
Attest:

Telicia Lopez, CMC, City Clerk
Approved as to form:

Sonia Carvalho, City Attorney
Packet Page. 2117
Resolution No. 2026-089
Resolution No. 2026
June 17, 2026

Page 3 of 3 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Telicia Lopez, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2026-089, adopted at a regular meeting held on the 17th day of June 2026 by the following vote:

Telicia Lopez, CMC, City Clerk
Packet Page. 2118

Page 1 of 2 ends

55600.00224\44708802.1
55600.00224\44821028.1
Notice of Public Hearing – Solid Waste Rates
Notice is hereby given that the City of San Bernardino (“City”) will conduct a public hearing on the 19th day of August, 2026, at 5:00 p.m. at the Feldheym Central Library, 555 West 6th Street, San Bernardino, CA 92410 to consider adopting increases to the rates for collection, processing, and disposal of solid waste within the City (collectively, “Solid Waste Services”). The purpose of the public hearing is to consider all oral testimony and written protests to, and the adoption of, the proposed rates.

About Solid Waste Collection Services and Rates
Burrtec Waste Industries, Inc. (“Burrtec”) provides solid waste services within the City under an exclusive franchise agreement. The City hereby notifies all affected property owners and occupants of the properties receiving Solid Waste Services of proposed rate increases for the City’s residential and commercial Solid Waste Services.

A public hearing will be held to consider these new rates. All interested persons are invited to participate in the hearing and provide a written protest to the proposed rate increase. If the rates are adopted on August 19, 2026, they will become effective on August 1, 2026. For questions about the public hearing process please call 909-998-2680. For more information on the proposed rates please visit https://sbcity.org/819/Solid-Waste-Rates.

Proposed Rates and Future Automatic Increases
The proposed FY 2026-27 rates include a 3.28% inflationary increase for residential and commercial customers based on annual percentage increase in the All-Urbans Consumer Index, Not Seasonally Adjusted, All Items, Riverside-San Bernardino-Ontario, CA, as published by the U.S. Department of Labor, Bureau of Statistics (“CPI”). The rates also include costs necessary to comply with the regulations implementing Senate Bill 1383; and an additional increase to recover costs for the delay of the public hearing and rate adoption from July 1, as stated in the franchise agreement, to August 19, 2026.

The City is also proposing to annually pass through to all Solid Waste Services customers automatic CPI adjustments for inflation (“Annual Automatic Adjustments”) as authorized under the franchise agreement. These adjustments will impact the Solid Waste Services rates. The proposed maximum rates for Solid Waste Services in Exhibit A account for inflation, subject to a 5% cap on Maximum Permitted Service Rates. If approved, beginning July 1, 2027, and each July 1 thereafter, through and including adjustments effective on or after July 1, 2030, the then-current Maximum Permitted Service Rates may be adjusted by the 12-month annual average percentage change in CPI for the most recent calendar year compared to the prior calendar year. This adjustment may be made without a further public hearing. In no event may an automatic increase exceed the City’s cost of providing Solid Waste Services.

The table below shows examples of the current and proposed monthly rates for residential cart service and the base commercial barrel service. For full rate details for all City customer service levels, roll-off services, and additional services please see Exhibit A or visit the City of San Bernardino Solid Waste Rates page at https://sbcity.org/819/Solid-WasteRates.

Packet Page. 2119

Page 2 of 2 ends

55600.00224\44708802.1
55600.00224\44821028.1
Residential Service Current Rates Proposed 2026 Rates Monthly Increase Residential/MF Barrel $27.75 $31.41 $3.66
Residential 35-Gal Barrel $24.60 $28.16 $3.56
Residential 35-Gal Barrel Sr $22.14 $25.34 $3.20
Mobile Home – 3 Barrel Service $18.62 $21.24 $2.62
Commercial Service Current Rates Proposed 2026 Rates Monthly Increase Commercial Barrel (1x Per
Week)
$27.61 $29.16 $1.55
Public Hearing Process
Written protests may be submitted by mail or in person to the City Clerk’s Office, provided they are received prior to 2 p.m. on August 19, 2026. Written protests may also be submitted directly to the City Clerk at the public hearing prior to the close of the public comment portion of the public hearing. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. Written protests submitted via e-mail or other electronic means will not be accepted. Please identify on the front of the envelope for any protest, whether mailed or submitted in person, Attn: Solid Waste Rates.

Written protests may be submitted as follows:

BY MAIL TO:
(to be received by August 19, 2026, 2 p.m.)
HAND DELIVERED TO CITY CLERK’S OFFICE:
(by August 19, 2026, 2 p.m.)
SAN BERNARDINO CITY CLERK’S OFFICE
ATTN: SOLID WASTE RATES
290 NORTH “D” STREET
SAN BERNARDINO, CA 92401
SAN BERNARDINO CITY CLERK’S OFFICE
ATTN: SOLID WASTE RATES
201 NORTH “E” STREET BUILDING A
SAN BERNARDINO, CA 92401
IN PERSON AT PUBLIC HEARING:
(on August 19, 2026,
between 5 p.m. until close of public
comment)

FELDHEYM CENTRAL LIBRARY
555 WEST 6TH STREET
SAN BERNARDINO, CA 92410
The City Council will consider all written protests and hear and consider all oral comments regarding the proposed rate increases for Solid Waste Services and the annual rate adjustments at the public hearing. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. Owners of multiple properties must file a separate written protest for each property. Only one written protest per parcel will be counted. Protests sent by email or fax, calls to staff, or received after the public hearing is closed, will not be counted.

Packet Page. 2120
Butttec Waste Industties, Inc
City of San Bernardino
EXHIBIT 1 - rates effective 8/1/26
Current Proposed Current Proposed
2025 2026 2025 2026
Residential/MF Barrel $ 27.75 $ 31.41 $ 27.61 $ 29.16
Residential/MF Barrel Sr Grandfathe $ 24.98 $ 28.27
Residential 35 Gal Barrel $ 24.60 $ 28.16
Residential 35 Gal Barrel Sr $ 22.14 $ 25.34 Size Freq
Mobile Home Complex - 2 Barrel $ 18.62 $ 19.85 2 cu. yrd. 1 x Wk 160.50 $ $ 166.25 Mobile Home Complex - Sr $ 16.76 $ 17.87 2 cu. yrd. 2 x Wk 301.28 $ $ 312.06 Mobile Home - 3 Barrel Service $ 18.62 $ 21.24 2 cu. yrd. 3 x Wk 443.45 $ $ 459.33 Mobile Home - 3 Barrel Service Sr $ 16.76 $ 19.12 2 cu. yrd. 4 x Wk 584.80 $ $ 605.74 2 cu. yrd. 5 x Wk 726.43 $ $ 752.44
2 cu. yrd. 6 x Wk 963.57 $ $ 998.06
Size Freq 3 cu. yrd. 1 x Wk 190.75 $ $ 197.59
1 cu. yrd. 1 x Wk 133.69 $ $ 138.48 3 cu. yrd. 2 x Wk 356.11 $ $ 368.85 1 cu. yrd. 2 x Wk 245.32 $ $ 254.11 3 cu. yrd. 3 x Wk 524.31 $ $ 543.07 1 cu. yrd. 3 x Wk 363.85 $ $ 376.88 3 cu. yrd. 4 x Wk 685.46 $ $ 710.00 1 cu. yrd. 4 x Wk 479.62 $ $ 496.79 3 cu. yrd. 5 x Wk 857.88 $ $ 888.58 1 cu. yrd. 5 x Wk 592.61 $ $ 613.83 3 cu. yrd. 6 x Wk 1,141.58 $ $ 1,182.44 1 cu. yrd. 6 x Wk 789.77 $ $ 818.04 4 cu. yrd. 1 x Wk 192.81 $ $ 199.72 2 cu. yrd. 1 x Wk 136.35 $ $ 141.22 4 cu. yrd. 2 x Wk 360.22 $ $ 373.12 2 cu. yrd. 2 x Wk 250.64 $ $ 259.61 4 cu. yrd. 3 x Wk 530.48 $ $ 549.47 2 cu. yrd. 3 x Wk 371.83 $ $ 385.14 4 cu. yrd. 4 x Wk 693.70 $ $ 718.54 2 cu. yrd. 4 x Wk 490.23 $ $ 507.77 4 cu. yrd. 5 x Wk 868.16 $ $ 899.24 2 cu. yrd. 5 x Wk 605.92 $ $ 627.61 4 cu. yrd. 6 x Wk 1,153.93 $ $ 1,195.24 2 cu. yrd. 6 x Wk 805.70 $ $ 834.54
3 cu. yrd. 1 x Wk 147.30 $ $ 152.57
3 cu. yrd. 2 x Wk 279.61 $ $ 289.62 Size Freq
3 cu. yrd. 3 x Wk 415.65 $ $ 430.53 1 cu. yrd. 1 x Wk 126.42 $ $ 130.95 3 cu. yrd. 4 x Wk 546.38 $ $ 565.94 1 cu. yrd. 2 x Wk 233.55 $ $ 241.91 3 cu. yrd. 5 x Wk 679.86 $ $ 704.20 1 cu. yrd. 3 x Wk 343.43 $ $ 355.73 3 cu. yrd. 6 x Wk 1,029.93 $ $ 1,066.80 1 cu. yrd. 4 x Wk 453.30 $ $ 469.52 4 cu. yrd. 1 x Wk 163.74 $ $ 169.60 1 cu. yrd. 5 x Wk 561.76 $ $ 581.87 4 cu. yrd. 2 x Wk 310.92 $ $ 322.05 2 cu. yrd. 1 x Wk 127.33 $ $ 131.89 4 cu. yrd. 3 x Wk 458.09 $ $ 474.50 2 cu. yrd. 2 x Wk 235.37 $ $ 243.79 4 cu. yrd. 4 x Wk 603.93 $ $ 625.55 2 cu. yrd. 3 x Wk 346.15 $ $ 358.55 4 cu. yrd. 5 x Wk 749.71 $ $ 776.55 2 cu. yrd. 4 x Wk 456.92 $ $ 473.27 4 cu. yrd. 6 x Wk 1,274.85 $ $ 1,320.48 2 cu. yrd. 5 x Wk 566.31 $ $ 586.58 6 cu. yrd. 1 x Wk 238.04 $ $ 246.56 3 cu. yrd. 1 x Wk 136.53 $ $ 141.42 6 cu. yrd. 2 x Wk 455.35 $ $ 471.65 3 cu. yrd. 2 x Wk 257.82 $ $ 267.04 6 cu. yrd. 3 x Wk 674.05 $ $ 698.17 3 cu. yrd. 3 x Wk 377.57 $ $ 391.09 6 cu. yrd. 4 x Wk 898.29 $ $ 930.45 3 cu. yrd. 4 x Wk 497.34 $ $ 515.15 6 cu. yrd. 5 x Wk 1,104.58 $ $ 1,144.12 3 cu. yrd. 5 x Wk 615.68 $ $ 637.72 6 cu. yrd. 6 x Wk 1,313.63 $ $ 1,360.66 4 cu. yrd. 1 x Wk 149.35 $ $ 154.70 4 cu. yrd. 2 x Wk 277.54 $ $ 287.48
4 cu. yrd. 3 x Wk 407.15 $ $ 421.72
Size Freq 4 cu. yrd. 4 x Wk 538.18 $ $ 557.44
1 cu. yrd. 1 x Wk 151.28 $ $ 156.69 4 cu. yrd. 5 x Wk 666.39 $ $ 690.24 1 cu. yrd. 2 x Wk 277.52 $ $ 287.45 6 cu. yrd. 1 x Wk 171.88 $ $ 178.03 1 cu. yrd. 3 x Wk 411.62 $ $ 426.35 6 cu. yrd. 2 x Wk 319.80 $ $ 331.24 1 cu. yrd. 4 x Wk 542.55 $ $ 561.98 6 cu. yrd. 3 x Wk 470.55 $ $ 487.39 1 cu. yrd. 5 x Wk 670.38 $ $ 694.37 6 cu. yrd. 4 x Wk 603.00 $ $ 624.58 1 cu. yrd. 6 x Wk 893.57 $ $ 925.54 6 cu. yrd. 5 x Wk 766.40 $ $ 793.83 2 cu. yrd. 1 x Wk 154.01 $ $ 159.52 35Gal Barrel 1 x Wk 50.94 $ $ 52.76 2 cu. yrd. 2 x Wk 283.00 $ $ 293.13 35Gal Barrel 2 x Wk 85.35 $ $ 88.40 2 cu. yrd. 3 x Wk 419.83 $ $ 434.85 35Gal Barrel 3 x Wk 114.46 $ $ 118.56 2 cu. yrd. 4 x Wk 553.49 $ $ 573.30 35Gal Barrel 4 x Wk 144.00 $ $ 149.15 2 cu. yrd. 5 x Wk 684.08 $ $ 708.56 35Gal Barrel 5 x Wk 183.83 $ $ 190.41 2 cu. yrd. 6 x Wk 909.99 $ $ 942.55 65Gal Barrel 1 x Wk 57.63 $ $ 59.70 3 cu. yrd. 1 x Wk 166.14 $ $ 172.09 65Gal Barrel 2 x Wk 98.64 $ $ 102.18 3 cu. yrd. 2 x Wk 315.31 $ $ 326.59 65Gal Barrel 3 x Wk 134.32 $ $ 139.13 3 cu. yrd. 3 x Wk 468.67 $ $ 485.45 65Gal Barrel 4 x Wk 170.45 $ $ 176.55 3 cu. yrd. 4 x Wk 616.04 $ $ 638.09 65Gal Barrel 5 x Wk 216.89 $ $ 224.66 3 cu. yrd. 5 x Wk 766.51 $ $ 793.95
3 cu. yrd. 6 x Wk 1,162.51 $ $ 1,204.13
4 cu. yrd. 1 x Wk 184.50 $ $ 191.10 Size Freq
4 cu. yrd. 2 x Wk 350.23 $ $ 362.77 2 cu. yrd. 1 x Wk 270.42 $ $ 280.09 4 cu. yrd. 3 x Wk 515.97 $ $ 534.44 2 cu. yrd. 2 x Wk 487.69 $ $ 505.14 4 cu. yrd. 4 x Wk 680.17 $ $ 704.52 2 cu. yrd. 3 x Wk 687.85 $ $ 712.47 4 cu. yrd. 5 x Wk 844.33 $ $ 874.56 2 cu. yrd. 4 x Wk 889.54 $ $ 921.37 4 cu. yrd. 6 x Wk 1,438.49 $ $ 1,489.98 2 cu. yrd. 5 x Wk 1,124.04 $ $ 1,164.27 6 cu. yrd. 1 x Wk 268.17 $ $ 277.77 2 cu. yrd. 6 x Wk 1,290.50 $ $ 1,336.69 6 cu. yrd. 2 x Wk 512.86 $ $ 531.23 35Gal Barrel 1 x Wk 71.02 $ $ 73.56 6 cu. yrd. 3 x Wk 759.10 $ $ 786.26 35Gal Barrel 2 x Wk 125.54 $ $ 130.04 6 cu. yrd. 4 x Wk 1,011.63 $ $ 1,047.85 35Gal Barrel 3 x Wk 174.71 $ $ 180.97 6 cu. yrd. 5 x Wk 1,243.82 $ $ 1,288.34 35Gal Barrel 4 x Wk 224.36 $ $ 232.40 6 cu. yrd. 6 x Wk 1,479.13 $ $ 1,532.08 35Gal Barrel 5 x Wk 284.28 $ $ 294.46 35Gal Barrel 6 x Wk 322.99 $ $ 334.55
65Gal Barrel 1 x Wk 80.51 $ $ 83.39
Size Freq 65Gal Barrel 2 x Wk 147.00 $ $ 152.26
All Sizes 1 x Wk 54.99 $ $ 56.95 65Gal Barrel 3 x Wk 208.97 $ $ 216.46 All Sizes 2 x Wk 109.97 $ $ 113.91 65Gal Barrel 4 x Wk 271.31 $ $ 281.02 All Sizes 3 x Wk 164.96 $ $ 170.86 65Gal Barrel 5 x Wk 342.35 $ $ 354.61 All Sizes 4 x Wk 220.62 $ $ 228.52 65Gal Barrel 6 x Wk 395.43 $ $ 409.58 All Sizes 5 x Wk 275.60 $ $ 285.47
All Sizes 6 x Wk 330.59 $ $ 342.43
Residential Trash Bins
Commercial/MF Trash Bins
Comm/MF/Resi Recycling Bins
Commercial Barrel (1xWk)
Commercial Compactors
Commercial/MF/Resi GW Bins
Commercial Food Waste
Packet Page. 2121
Butttec Waste Industties, Inc
City of San Bernardino
EXHIBIT 1 - rates effective 8/1/26
Current Proposed
2025 2026
Size Freq
35Gal Barrel 1 x Wk 63.05 $ $ 65.31
35Gal Barrel 2 x Wk 109.58 $ $ 113.50
35Gal Barrel 3 x Wk 150.79 $ $ 156.19
35Gal Barrel 4 x Wk 192.45 $ $ 199.34
35Gal Barrel 5 x Wk 244.42 $ $ 253.17
35Gal Barrel 6 x Wk 275.15 $ $ 285.01
65Gal Barrel 1 x Wk 80.13 $ $ 83.00
65Gal Barrel 2 x Wk 143.64 $ $ 148.78
65Gal Barrel 3 x Wk 201.83 $ $ 209.05
65Gal Barrel 4 x Wk 260.48 $ $ 269.81
65Gal Barrel 5 x Wk 329.39 $ $ 341.19
65Gal Barrel 6 x Wk 377.11 $ $ 390.61
95Gal Barrel 1 x Wk 97.21 $ $ 100.69
95Gal Barrel 2 x Wk 177.69 $ $ 184.05
95Gal Barrel 3 x Wk 252.87 $ $ 261.92
95Gal Barrel 4 x Wk 328.48 $ $ 340.24
95Gal Barrel 5 x Wk 414.39 $ $ 429.22
95Gal Barrel 6 x Wk 479.07 $ $ 496.22
- All Refuse Permanent - Plus Disposal 397.96 $ $ 412.21 - All Refuse Temporary 638.25 $ $ 661.09
incl Disp incl Disp
- All Recycling (Different Materials) - Plus Disposal $ 412.21 397.96 $ - Waste to Energy 40Yrd - Plus Disposal 1,375.96 $ N/A
Roll Off Retractable Lid Monthly Rental Fee 251.50 $ 260.50 $ Receiver $ 338.63 326.92 $
Compactor Box 455.19 $ 471.48 $
Water Reclamation 132.28 $ 137.02 $
Miscellaneous RO Compactor Repair (per hour) 78.20 $ 81.00 $ Compactor Cleaning (each/single occurrence) 155.87 $ 161.44 $ Dry Run / Relocate Roll Offs (Perm & Temp) 87.67 $ 90.81 $ Roll Off Daily Rental Fee (Perm & Temp) 43.13 $ 44.67 $ Stand By / Roll-Back Roll Offs (Perm & Temp) 158.62 $ 164.29 $ per occurrence in excess of 15 min
End Dump Service (per Hour) 240.51 $ 249.12 $
RO Liner $ 158.21 152.74 $
Certificate of Destruction 130.35 $ N/A
Residential/Commercial
- Barrel Exchange (first Exchange free) charge does not apply to 17.69 $ $ 18.32 graffiti or damaged barrels
Commercial
- Barrel Replacement comml-lost or stolen 87.39 $ $ 90.52 Bin Services
- Bin Exchange (first Exchange free) charge does not apply to 88.47 $ $ 91.63 graffiti or damaged barrels
- Bin Replacement + actual cost of bin comml-lost or stolen 96.44 $ $ 99.89 Bin Enclosure Cleaning (each/single occurrence) 43.44 $ $ 45.00 Bin Steam Cleaning (each/single occurrence) 43.44 $ $ 45.00 Pull Out Service - Backyard Barrel Frail/Handicap (Resi/MH/MF) N/C N/C Extra Trash Barrel (Resi/MF/MH/Commercial) 15.16 $ $ 15.71 Extra Recycling Barrel (Resi/MF/MH/) N/C $ -
Extra Recycling Barrel (Com) 27.69 $ $ 28.68
Extra Green Waste Barrel (Resi/MF only) 13.27 $ $ 13.75 Pull Out Service - Bin (1-6 Yard) x1 78.63 $ $ 81.44
Temporary Bin (3 Yrd) - 7 Day use $ 80.66 $ 83.55
Temp Bin Dump and Return 80.66 $ $ 83.55
Clean-Up Service (per 15 min) 42.35 $ $ 43.87
Recycling Contamination Barrel 11.25 $ $ 11.65
Recycling Contamination (each bin) 68.96 $ $ 71.43
Extra Pick-Ups Bins - On Service Day
1 & 2 Yard (Trash/Recyc) $ 29.55 $ 30.61
3 Yard (Trash/Recyc) 32.14 $ $ 33.29
4 Yard (Trash/Recyc) 35.21 $ $ 36.48
6 Yard (Trash/Recyc) 41.71 $ $ 43.20
Extra Pick-Ups All Bins - On Non-Service Day (Trash) 52.59 $ $ 54.48 Extra Pick-Ups All Bins - On Non-Service Day (Recyc) 40.91 $ $ 42.37 Extra Pick-Ups Compactors (Trash)
2 Yard $ 32.14 $ 33.29
3 & 4 Yard $ 35.21 $ 36.48
Extra Pick-Up Barrel - Residential/Mobile Home 10.84 $ $ 11.23 Extra Pick-Ups FW Bins 102.34 $ $ 106.01
Extra Pick-Ups Barrel - FW 30.47 $ $ 31.56
Tilhopper (3 yd) 35.07 $ $ 36.32
Lock $ 20.69 $ 21.43
Late set-out fee 33.60 $ $ 34.80
Late Fee 1.5% 1.5%
Shopping cart retrieval $ 25.65 $ 26.57
Additional Services
Roll-Off - Service Only
Mult Family Mixed Organics
Packet Page. 2122
DATE:

RE:

February 23, 2016
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services with Burrtec Waste Industries, Inc.

I have received an executed copy of the above agreement from the City Clerk's Office, City of San Bernardino.

I hereby ac~':,c,,ipt of the above mentioned documents.

Signed:--~--------
Date: '2.. - 2 -; .-- l ~ PLEASE SIGN AND RETURN
Packet Page. 2123
2016-10
City of San Bernardino Exclusive Franchise Agreement for Integrated QJ\ijJs~! N /:,\ L Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

By and Between

THE CITY OF SAN BERNARDINO
and
BURRTEC WASTE INDUSTRIES, INC.

Approved on: January 25, 2016

Page 1 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2124
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

This page intentionally left blank.

Page 2 of 126 ends

Franchise Agreement Term April 1, 2016-March 31, 2026
Packet Page. 2125
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

TABLE OF CONTENTS
RECITALS 5
Section 1. Definitions 7
Section 2. Grant of Franchise 14
Section 3. Contractor's Payments, Reimbursements, and Additional Revenues to City 17 Section 4. Term and Term Extensions 21
Section 5. Warranties and Representations 22
Section 6. Types and Frequency of Service 25
Section 7. SFD Collection Service 31
Section 8. MFD Collection Services 35
Section 9. Commercial Collection Service 36
Section 10. Collection Service for City Service Units 39 Section 11. Street Sweeping 41
Section 12. Right-of-Way Clean-Up Service 46
Section 13. Collection Routes 49
Section 14. Public Outreach Services. 50
Section 15. Collection Equipment 52
Section 16. Hiring of Displaced City Employees and Local Recruiting 57 Section 17. Privacy 58
Section 18. Service Exceptions; Hazardous Waste 58
Section 19. Customer Service 59
Section 20. Ownership of Solid Waste. Recyclable Materials, Organic Waste and Construction and Demolition Materials

Page 3 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
60 Packet Page. 2126
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

Section 21. Customer Rates and Billing Procedures
Section 22. Contractor's Books and Records; Audits
Section 23. Integrated Waste Management Act; Reporting Requirements Section 24. Activities and Financial Reports; Adverse Information Section 25. Indemnification and Insurance
Section 26. Performance Bonds
Section 27. Emergency Service
Section 28. Administrative Remedies: Imposition of Damages; Termination Section 29. Referral to Referee; Hearing Procedures
Section 30. City's Additional Remedies
Section 31. Billing Audit and Performance Reviews
Section 32. Franchise Transfer; City Consent; Fees
Section 33. General Provisions
Exhibit 1 Maximum Permitted Service Rates
Exhibit 2 City Facilities
Exhibit 3 Contractor's Facilities
Exhibit 4 City Sponsored Events
Exhibit 5 Transition Plan
Exhibit 6 Public Education & Outreach Plan
Exhibit 7 Diversion Plan
Exhibit 8 Customer Service Plan
Exhibit 10 Displaced City Employee Compensation Minimum Requirements Exhibit 11 Contractor's Subcontractors

Page 4 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
60 65
65 66
71 75
76 77
80 83
87 89
90 95
99 103
105
107
111
113
117
123
125
Packet Page. 2127
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

This Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services ("Agreement") is hereby entered into by and between the City of San Bernardino, a California Charter City and a municipal corporation organized under the Constitution and laws of the State of California ("City"), and Burrtec Waste Industries, Inc. a California corporation organized under the laws of the State of California ("Contractor"), and is made on the terms and conditions provided below:

RECITALS
WHEREAS, Article XI, § 7 of the California Constitution authorizes cities to protect public health and safety by taking measures in furtherance of their authority over police and sanitary matters; and
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989, ("AB 939" or the "Act") established a Solid Waste management process which requires cities and other local jurisdictions to implement plans for source reduction, reuse and recycling as integrated waste management practices for Solid Waste attributed to sources within their respective jurisdictions; and WHEREAS, the Legislature of the State of California, by enactment of its California Global Warming Solutions Act of 2006 ("AB 32"), requires that commercial generators statewide participate in recycling programs; and
WHEREAS, the Legislature of the State of California, by enactment of Assembly Bill 341 ("AB 341 ") adopted a goal that seventy-five percent of solid waste generated state-wide be diverted from landfill by the year 2020. Furthermore, AB 341 requires that each commercial solid waste generator, including multi-family dwellings of five or more units, provide for recycling programs, and each City or County implement recycling programs for commercial solid waste generators, including multi-family dwellings of five or more units; and WHEREAS, the Legislature of the State of California, by enactment of Assembly Bill 1594 ("AB 1594") eliminates cities and counties from receiving landfill diversion credit from green waste used being used as Alternative Daily Cover effective January 1, 2020; and WHEREAS, the Legislature of the State of California, by enactment of Assembly Bill 1826 ("AB 1826") adopted requirements for each commercial solid waste generator, including multi-family dwellings of five or more units, to provide for organics recycling programs, and for each City or County to implement organics recycling programs for commercial solid waste generators, including multi-family dwellings of five or more units by April 1, 2016; and

Page 5 of 126 ends

Franchise Agreement Term April 1t 2016-March 31, 2026
Packet Page. 2128
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

WHEREAS, California Public Resources Code § 40059 provides that aspects of Solid Waste handling of local concern include but are 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 services, and whether the services are to be provided by means of nonexclusive, partially exclusive or wholly exclusive franchise, contract, license or otherwise which may be granted by local government under terms and conditions prescribed by the governing body of the local agency; and
WHEREAS, City is obligated to protect the public health and safety of the residents and businesses of the City of San Bernardino and arrangements made by solid waste enterprises and recyclers for the collection of residential and commercial Solid Wastes should be made in a manner consistent with the exercise of the City's police power for the protection of public health and safety; and
WHEREAS, City and Contractor are mindful of the provisions of the laws governing the safe collection, transport, recycling and disposal of residential and commercial Solid Waste, including AB 939, the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. §§ 6901 et seq., the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C. §§ 9601 et seq.; the Electronic Waste Recycling Act of 2003 (SB 20, Sher, Chapter 526, Statutes of 2003; SB 50, Sher, Chapter 863, Statutes of 2004; AB 575, Wolke, Chapter 59, Statutes of 2011 ), laws governing Universal Waste, including, but not limited to, Universal Waste Electronics Devices ("UWED"), non-empty aerosol cans, fluorescent tubes, high intensity discharge lamps, sodium vapor lamps, and any other lamp exhibiting a characteristic of a hazardous waste, batteries (rechargeable nickel-cadmium batteries, silver button batteries, mercury batteries, small sealed lead acid batteries [burglar alarm and emergency light batteries] alkaline batteries, carbon-zinc batteries and any other batteries which exhibit the characteristic of a hazardous waste), mercury thermometers, mercury-containing switches; and
WHEREAS, City and Contractor desire to leave no doubts as to their respective roles and to make it clear that by entering into this Agreement, City is not thereby becoming a "generator" or an "arranger" as those terms are used in the context of CERCLA § 107(a)(3) and that it is Contractor, an independent entity, not City, which will arrange to collect Solid Waste from SFD, MFD, City and Commercial Service Units in the City, transport for recycling and disposal and dispose of Solid Wastes which may contain small amounts of household products with the characteristics of hazardous wastes, collect and compost Organic Waste and collect and recycle Recyclable Materials from SFD, MFD, City, and Commercial Service Units in the City, and collect and recycle or dispose of Construction and Demolition Materials; and

Page 6 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2129
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste lndustries1 Inc.

WHEREAS, there are no places within the City limits of the City of San Bernardino where active landfills for disposal are located, or which are suitable for the siting of a landfill and therefore Solid Waste must be exported from the City; and WHEREAS, City and Contractor agree that Contractor, not City, will select the landfill or transformation facility destination of the non-recyclable residential and commercial Solid Waste and Construction and Demolition Materials which Contractor will arrange to collect, that City has not, and by this Agreement does not, instruct Contractor on its collection methods, nor supervise Contractor in the collection of waste and nothing in this Agreement or other action of the City shall be construed to give rise to any inference that the City has any title, ownership or right of possession of such Solid Waste; and
WHEREAS, Contractor represents and warrants to City that Contractor has the experience and qualifications to conduct recycling and waste diversion programs, to provide City with information sufficient to meet the City's reporting requirements to CalRecycle and other agencies under the Act, to meet City's other requirements under the Act, to arrange with persons in charge of day-to-day activities of Service Units in the City for the collection, safe transport and disposal of Solid Wastes which may contain small amounts of household products with the characteristics of Hazardous Wastes, in a safe manner which shall minimize the adverse effects of collection vehicles on air quality and traffic, and that Contractor has the ability to indemnify City in accordance with this Agreement; and WHEREAS, the City Council of the City of San Bernardino determines and finds pursuant to California Public Resources Code § 40059(a}{1) that the public interest, health, safety and well-being, including the minimization of adverse impacts on air quality and traffic from excessive numbers of collection vehicles, the implementation of measures consistent with the City's Source Reduction and Recycling Component, and in an effort to reduce the City's potential CERCLA liability, would be served if Contractor were to be awarded an exclusive Franchise for collection, recycling, diversion and disposal of Solid Waste from Service Units in the City of San Bernardino.

NOW, THEREFORE, the City and Contractor, agree as follows:

Section 1. Definitions
Whenever any term used in this Agreement has been defined by the Municipal Code of the City of San Bernardino ("Municipal Code") or Division 30, Part 1, Chapter 2 of the California Public Resources Code, the definitions in the Municipal Code or Public Resources Code shall apply unless the term is otherwise defined in this Agreement. For purposes of this Agreement the following definitions apply:

Page 7 of 126 ends

Franchise Agreement Term April 1, 2016-March 31, 2026
Packet Page. 2130
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

1.1 "AB 341" means State of California Assembly Bill No. 341 approved October 5, 2011. AB 341 requires businesses, defined to include commercial or public entities that generate more than 4 cubic yards of commercial solid waste per week or multifamily residential dwellings of 5 units or more to arrange for recycling services, on and after July 1, 2012. AB 341 requires jurisdictions, on and after July 1, 2012, to implement a commercial solid waste recycling program.

1.2 "Act" or "AB 939" means the California Integrated Waste Management Act of 1989, codified in part at Public Resources Code§§ 40000 et seq., as it may be amended and as implemented by the regulations of the California Department of Resources Recycling and Recovery (CalRecycle), or its successor agency.

1.3 "AB 1594" means State of California Assembly Bi!I No. 1594 approved September 28, 2014. AB 1594 provides that the use of green material as Alternative Daily Cover does not constitute diversion through recycling and would be considered disposal.

1.4 "AB 1826" means State of California Assembly Bill No. 1826 approved September 28, 2014. AB 1826 requires each jurisdiction, on and after January 1, 2016, to implement an organic waste recycling program to divert organic waste from businesses. Each business meeting specific organic waste or solid waste generation thresholds phased in from April 1, 2016 to January 1, 2020 is required to arrange for organic waste recycling services.

1.5 "ADC" or "Alternative Daily Cover" means cover material used to cover compacted Solid Waste in a Disposal Site, other than at least six (6) inches of earthen material, placed on the surface of the active face of the Solid Waste fill area at the end of each operating day to control vectors, fires, odors, blowing litter, and scavenging, as defined in Section 20164 of the California Code of Regulations as may be amended from time to time

1.6 "Agreement" or "Franchise Agreement" means this written Agreement between the City and Contractor, and au exhibits. See Section 2, below.

1.7 "Agreement Year" means each twelve (12) month period from April 1st to March 31 st of each year beginning on the Service Commencement Date.

1.8 "Bin" or "Bins" means those 2, 3, 4, and 6 cubic yard containers provided by Contractor for the collection of Solid Waste, Recyclable Material and Organic Waste.

1.9 "Bulky Waste" means large and small household appliances, furniture, carpet, mattresses, white goods, brown goods, clothing, automobile tires, and oversized yard waste such as tree trunks and large branches if no larger than two feet in diameter and four feet in length and similar large items discarded by residential Service Recipients.

Bulky Waste is a form of Solid Waste when discarded by the generator into the waste

Page 8 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2131
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. stream. The term "Bulky Waste" does not include consumer electronics, such as televisions, radios, computers, monitors, and the like, which are regarded as Universal Waste Electronic Devices, the disposal of which is governed by regulation of the Department of Toxic Substances Control.

1.10"Business Days" means Monday through Friday, during the hours of 8:00 a.m., through 5:00 p.m., except for holidays recognized by City.

1.11 "Cart" or "Carts" means those wheeled containers up to 96-gallon capacity provided by Contractor for the collection of Organic Waste, Recyclable Materials, and Solid Waste.

1.12"City" means the City of San Bernardino, California.

1.13"City Representative" means the City Manager, or the City Manager's designee, authorized to administer and monitor the provisions of this Agreement.

1.14 ucity Service Unit" means those City properties or locations as set forth in Exhibit 2, "City Facilities", which is attached to and included in this Agreement.

1.15 "Commercial Service Unit" means, premises in the City, other than SFD, MFD and City Service Units, where Solid Waste, Recyclable Materials, and Organic Waste are generated or accumulated. The term "Commercial Service Unit" includes, but is not limited to, stores; offices; restaurants; rooming houses; hotels; motels; industrial and manufacturing, processing, or assembly shops or plants; hospitals, clinics, convalescent centers and nursing homes (non-medical waste).

1.16 "Commercial Organic Waste" means Green Waste and Food Waste separated at the source of generation for inclusion in the Commercial Organic Waste Collection Service program.

1.17 "Integrated Solid Waste Collection, Processing and Disposal Services" means the collection, transportation, processing, recycling, composting, conversion, retention and disposal of all Solid Waste, Organic Waste, (including Commercial Organic Waste, Food Waste, and Green Waste), Recyclable Materials, Construction and Demolition Materials, Bulky Waste, all as defined in this Agreement, produced, generated and/or accumulated within the City.

1.18 "Construction and Demolition Materials" or "C&D Materials" means discarded building materials, "inert wastes" as defined in Public Resources Code § 41821.3(a}(1) (rock, concrete, brick, sand, soil ceramics and cured asphalt), recyclable construction and demolition materials, packaging, plaster, drywall, rubble resulting from construction, remodeling, repair and demolition operations, but does not include asbestos-containing materials. Construction and Demolition Materials, but not asbestos-containing materials,

Page 9 of 126 ends

Franchise Agreement Term April 1, 2016 - March 31, 2026 Packet Page. 2132
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. are within the scope of this Agreement, subject to the licensed contractor exception in Section 2.9, below.

1.19"Consumer Price Index" or "CPI" means the twelve (12) month annual average percentage change for the most recent period of January 1st through December 31st, versus the prior most recent period of January 1st through December 31st, as published the U.S. Department of Labor, Bureau of Labor Statistics, Series ID: "CUURA421SA0, Not Seasonally Adjusted, All Items, Los Angeles-Riverside-Orange County, CA"

1.20"Container" means Cart, Bin, or Roll-off.

1.21 "Contractor'' means Burrtec Waste Industries, Inc. a California corporation, a party to this Agreement.

1.22 "Displaced City Employee" means an employee of the City as of March 31, 2016 who was principally employed in the operation or support of City's refuse enterprise (such as drivers, motor sweeper operators, maintenance workers, customer service representatives, and administrative support) and who would otherwise be discharged or laid-off as a result of City's grant of the Franchise to Contractor, or who has waived their bumping rights under the applicable collective bargaining agreement and decided to pursue a position offered by Contractor.

1.23 "Disposal Facility" means such place or places specifically designated by the Contractor as fisted in Exhibit 3 for the disposal, or processing as appropriate, of Solid Waste and other materials as appropriate.

1.24 "Effective Date" means the date by which Contractor and City have approved the Franchise Agreement (including all attachments) and their respective authorized representatives have executed the Franchise.

1.25"Franchise" means the exclusive right and privilege granted by this Agreement.

1.26"Payments to the City " means the negotiated payments as listed in Section 3 of this Agreement that are agreed upon by the City and Contractor in consideration of City's grant of the Franchise to Contractor and which, inter alia, is intended to offset the City's expenses in administering this Franchise and to compensate City for damage to its streets, sidewalks, curbs and gutters and other infrastructure resulting from Contractor's exercise of this Franchise, the expenses of administering the program for the Solid Waste stream, reporting requirements under the Act and other related expenses.

1.27"Food Waste" means food scraps and trimmings from food preparation, including but not limited to: meat, fish and dairy waste, fruit and vegetable waste, grain waste, incidental food packaging and food soiled paper products. Food Waste is synonymous

Page 10 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2133
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. with "garbage" as that term is defined by Section 17225.30 of Title 14, California Code of Regulations.

1.28 uGross Receipts" means all monies, fees, charges, consideration received or imputed to Contractor and any Affiliate of Contractor, in connection with, arising from, or in any way attributable to the services set forth in this Agreement, including services carried out by any permissible subcontractor hereunder. Gross Receipts include, without limitation, any franchise fee imposed and collected pursuant to this Agreement. For purposes of calculating Monthly Franchise Fee Payments, Gross Receipts does not include revenue from the sale of Recyclable Materials.

1.29 "Green Waste" means leaves, grass clippings, brush, branches and other forms of organic materials generated from maintenance or alteration of landscapes or gardens including, but not limited to, yard clippings, leaves, tree trimmings, prunings, brush and weeds and incidental pieces of scrap lumber, separated from the Solid Waste Stream. "Green Waste" includes holiday trees (except such trees which are frosted, flocked or which contain tinsel or metal), but does not include stumps or branches exceeding four inches (4") in diameter or four feet (4') in length, or palm fronds, or yucca, which are not suitable for composting. "Green Waste" is not a "Recyclable Material" but may be a form of Solid Waste if discarded into the waste stream.

1.30"Hazardous Waste11 means any waste materials or mixture of wastes defined as a "hazardous substance" or "hazardous waste" pursuant to the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. §§ 6901 et seq., the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C. §§ 9601 et seq., the Carpenter-Presley-Tanner Hazardous Substance Account Act ("HSAA"), codified at California Health & Safety Code §§ 25300 et seq.; the Electronic Waste Recycling Act of 2003 (SB 20, Sher, Chapter 526, Statutes of 2003; SB 50, Sher, Chapter 863, Statutes of 2004; AB 575, Wolke, Chapter 59, Statutes of 2011 ), laws governing Universal Waste, including, but not limited to, Universal Waste Electronics Devices ("UWED"), non-empty aerosol cans, fluorescent tubes, high intensity discharge lamps, sodium vapor lamps, and any other lamp exhibiting a characteristic of a hazardous waste, batteries (rechargeable nickel-cadmium batteries, silver button batteries, mercury batteries, small sealed lead acid batteries [burglar alarm and emergency light batteries] alkaline batteries, carbon-zinc batteries and any other batteries which exhibit the characteristic of a hazardous waste), mercury thermometers, mercury-containing switches, and all future amendments to any of them, or as defined by CalRecycle or the Department of Toxic Substances Control, or by their respective successor agencies. If there is a conflict in the definitions employed by two or more agencies having jurisdiction over hazardous or Solid Waste, the term "Hazardous Waste" shall be construed to have the broader, more encompassing definition.

Page 11 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2134
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

1.31 "Household Hazardous Waste" means dry cell household batteries, cell phones and PDAs; used motor oil; used oil filters when contained in a sealed plastic bag; cooking oil; compact fluorescent light bulbs contained in a sealed plastic bag; E-Waste; cleaning products, pesticides, herbicides, insecticides, painting supplies, automotive products, solvents, stripes, and adhesives, auto batteries; and Universal Waste generated at a SFD or MFD Service Unit.

1.32 "Material Recovery Facility" means any facility, selected by the Contractor as listed in Exhibit 3, designed, operated, and legally permitted for the purpose of receiving, sorting, processing, storing, or preparing Recyclable Materials for sale.

1.33 uMulti-Family Dwelling Service Unit" or "MFD Service Unit" means a multifam!ly dwelling unit such as mobile home parks, apartments, condominiums and town homes, which utilize Carts, Bins or Roll-offs for the accumulation and collection of Solid Waste, Recyclable Material, and Organic Waste.

1.34"Organic Waste" means Green Waste and Food Waste. Organic Waste is a form of Solid Waste when discarded into the waste stream. The following list may be modified, by the mutual agreement of City and Contractor memorialized in writing executed by both Parties. As of the date of execution of this Agreement, Organic Waste includes, but is not limited to the following:

1.34.1 Plant material (branches, grass clippings, natural Christmas trees, palm fronds, leaves, shrubbery, tree trimmings, weeds);

1.34.2 Wood (non-toxic wood products without paint and foreign objects of appropriate size for the container); and,

1.34.3 Food Waste (cooked and uncooked food matter, incidental food packaging and food soiled paper products for commercial customers).

1.35"Organic Waste Processing Facility" means any facility selected by the Contractor as listed in Exhibit 3 that is designed, operated and legally permitted for the purpose of receiving and processing Organic Waste.

1.36 "Parties" means the City and the Contractor.

1.37 "Residence" or "Residential" means any and all dwelling units, as defined in the "Land Use Zoning Ordinance" of the City of San Bernardino, and other buildings used for residential or dwelling purposes.

1.38HRecyclable Materials" is a part of the waste stream that can be reused or processed into a form suitable for reuse through reprocessing or remanufacture, consistent with the requirements of AB 939. The following list may be modified, by the mutual agreement of City and Contractor memorialized in writing executed by both

Page 12 of 126 ends

Franchise Agreement Term April 1i 2016- March 31i 2026
Packet Page. 2135
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

Parties. As of the date of execution of this Agreement, Recyclable Materials includes, but is not limited to the following:

1.38.1 Plastics (all numbered plastics);

1.38.2 Metals (aluminum cans, aluminum foil, empty aerosol cans, pie tins, tin cans);

1.38.3 Fiber materials (cardboard, cereal boxes, envelopes, file folders, frozen food boxes, junk mail, magazines, mixed paper, office paper, newspaper, telephone books, white paper); and,

1.38.4 Glass (all colors of glass jars and bottles, except light bulbs, mirror and window glass).

1.39 "Roll-off" means those 10 to 40 cubic yard containers that are normally loaded onto a motor vehicle and transported to an appropriate facility.

1.40 "SB 20n means the Electronic Waste Recycling Act of 2003.

1.41 "Scavenging" means the unauthorized removal of Recyclable Materials from designated containers and/or place of collection. Scavenging is prohibited by Public Resources Code § 41950.

1.42"Service Commencement Date" means April 1, 2016, the date upon which Contractor becomes solely responsible for providing Integrated Solid Waste Collection, Processing and Disposal Services to City and within City's boundaries.

1.43 "Service Recipient" means SFD Service Unit, MFD Service Unit, City Service Unit, or Commercial Service Unit receiving service by the Contractor as specified by the Agreement.

1.44"Service Unit" means SFD Service Units, MFD Service Units, City Service Units, and Commercial Service Units.

1.45"Single-Family Dwelling Service Unit" or "SFD Service Unit'' generally means a detached dwelling, or each dwelling unit of a duplex, triplex, or quadplex, a townhouse, a condominium unit or a mobile home which utilizes Carts, or a Bin or Roll-off for the accumulation and collection of Solid Waste, Recyclable Material, and Organic Waste.

1.46"Solid Waste" means and includes any materials defined as "solid waste" by Section 40191 of the California Public Resources Code, and specifically includes, without limitation, Construction and Demolition Materials, Recyclable Materials, Organic Waste, Bulky Waste, and all other non-hazardous materials, excluding Universal Waste, that are discarded into the waste stream by the generator, or collected in exchange for a fee or any other consideration, regardless of form or amount.

Page 13 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2136
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

1.47"Temporary Bin or Roll-off Container Collection Service" means collection of a three (3) cubic yard Bin or ten (10) to forty (40) cubic yard Roll-off container placed in service by Contractor on a temporary basis for no more than seven (7) days between collections.

1.48 "Term" means the operative life of this Agreement as stated in Section 4.2, which is ten (10) years beginning 12:01 am on April 1, 2016 ending 11.59 pm on March 31, 2026.

1.49 "Transition Periodn means the period of time between the Effective Date and the Service Commencement Date.

1.50 "Universal Waste" means and includes, but is not limited to, Universal Waste Electronic Devices" or "UWEDs," (i.e., electronic devices subject to the regulation of the Department of Toxic Substances Control, 23 CCR §§ 66273.1, et seq.), and other Universal Wastes, including, but not limited to non-empty aerosol cans, fluorescent tubes, high intensity discharge lamps, sodium vapor lamps, and any other lamp exhibiting a characteristic of a hazardous waste, batteries (rechargeable nickel-cadmium batteries, silver button batteries, mercury batteries, small sealed lead acid batteries [burglar alarm and emergency light batteries] alkaline batteries, carbon-zinc batteries and any other batteries which exhibit the characteristic of a hazardous waste), mercury thermometers, mercury-containing switches.

1.51 "Work Days" mean the days Monday through Saturday, during the hours of 5:00 a.m., to 6:00 p.m., which is the general period Contractor provides regular collection services.

Section 2. Grant of Franchise

2.1 Binding Agreement. In consideration of mutual promises and agreements made by the Parties and contained in this Agreement the Parties agree to be bound by the terms and conditions of this Agreement and that this Agreement shall be binding upon their successors-in-interest.

2.2 Prior Agreements.

2.2.1 Contractor agrees that the agreement between the City and Contractor titled "Professional Services Agreement For The Processing of Organic Materials, Recycling Materials and Municipal Non-Recyclable Solid Waste Between The City Of San Bernardino And Burrtec Waste Industries, Inc. 11 dated January 1, 2013 regarding delivery of approximately one half of all City collected Organic Waste, Recyclable Materials, and non-recyclable Solid Waste delivered to Contractor's East Valley Recycling & Transfer Station located at 1150 & 1250 South Tippecanoe Avenue, San Bernardino, CA 92408 is

Page 14 of 126 ends

Franchise Agreement Term April 11 2016- March 31, 2026
Packet Page. 2137
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. terminated and superseded on the Service Commencement date of this Agreement.

2.2.2 Contractor agrees that the agreement between the City and Jack's Disposal, Inc. "Agreement Between The City Of San Bernardino And Jack's Disposal, Inc. For The Collection, Transportation, And Disposal Of Solid Waste And Construction Debris And For Provide Temporary Bin/Roll-off Services" dated May 25, 1995 is terminated and superseded on the Service Commencement date of this Agreement

2.2.3 Contractor agrees to abide by the tonnage delivery and payment provisions terms and conditions as required in the agreement between the City and Republic Services of Southern California, LLC, d.b.a. Inland Regional Material Recovery Facility (IRMRF") titled "Professional Services Agreement For The Processing Of Organic Materials, Recycling Materials And Municipal Non-Recyclable Solid Waste Between The City Of San Bernardino And Republic Services of Southern California, LLC." dated January 1, 2013 regarding delivery of approximately one half of all City collected Organic Waste, Recyclable Materials, and non-recyclable Solid Waste delivered to the IRMRF located at 2059 E. Steel Road, Colton, CA 92324. Until such time that the agreement between the City and Republic Services of Southern California, LLC is terminated, Contractor is responsible for all payments due to Republic Services of Southern California LLC for Organic Waste, Recyclable Materials, and non-recyclable Solid Waste delivered by Contractor to the IRMRF.

After such time that the agreement between the City and Republic Services of Southern California, LLC, is terminated, Contractor shall direct all Organic Waste, Recyclable Materials and Solid Waste collected by Contractor to permitted facilities as designated by Contractor. Contractor shall not be entitled to any additional compensation by the City or the City's rate payers for Organic Waste, Recyclable Materials, and non-recyclable Solid Waste delivered by Contractor to the IRMRF, except as may be provided in Section 21.1 of this Agreement.

2.3 Grant of Franchise; Exclusions. Except as expressly called out in this Agreement, Contractor is hereby granted the exclusive franchise, duty, right and privilege to control and direct all Solid Waste collected by the Contractor, including transfer, transport, recycling, processing and disposal of Solid Waste Organic Waste and Recyclable Materials generated within the boundaries of City subject to the terms and conditions set forth in this Agreement.

2.4 Exclusive Franchise. Contractor agrees that this Agreement is an "exclusive franchise" as that term is used in Public Resources Code§ 40059.

Page 15 of 126 ends

Franchise Agreement Term April 11 2016- March 31, 2026
Packet Page. 2138
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

2.5 Waiver of Rights. Contractor waives any right it may have to challenge the terms of this Agreement under federal, state or local law, or administrative regulation, except as provided in the dispute resolution provisions of Section 28 and Section 29 of this Agreement.

2.6 Recycling Agent. Contractor is hereby designated the City's authorized recycling agent as that term is used in Public Resources Code § 41950.

2. 7 C&D Materials. The collection and disposal of Construction and Demolition Materials from Service Units through the use of Roll-offs or other Bins is within the scope of this Agreement. Accumulation, collection and recycling or disposal of Construction and Demolition Materials by a licensed contractor utilizing its own employees and equipment at its job site is permissible in accordance with the Municipal Code.

2.8 Sale or Gift of Recyclable Materials. This Agreement does not prohibit any person from selling Recyclable Materials or giving Recyclable Materials away to persons or entities other than Contractor; however, in either instance: ( 1) the Recyclable Materials must be segregated from and not mixed with Solid Waste; and (2) the seller/donor may not pay the buyer/donee any consideration for collecting, processing or transporting such Recyclable Materials, or as a consultation or broker's fee for recycling services. A discount or reduction in price for collection, disposal and/or recycling services for any form of unsegregated or segregated Solid Waste is not a sale or donation of Recyclable Materials and such Solid Waste does not qualify for this exception.

2.9 Self-Hauling. City Ordinance MC-1346, which modified Section 8.24.285 of the City's Municipal Code, permits that a construction contractor may self-haul recyclables or C&D waste generated by the construction contractor at the job site, utilizing its own employees and equipment, with the exception of roll-offs or other bins per the Municipal Code. In addition, San Bernardino Municipal Code section 8.24.010(8) provides that the City does not limit the right of an individual person, organization, or other entity from donating, selling or otherwise disposing of recyclable materials, provided that any such donation, sale or disposal is in accordance with the provisions of Chapter 8.24. In addition, San Bernardino Municipal Code section 8.24.050(E) provides that any person in the lawful possession of any property, other than a place of business, is not prevented from collecting and removing therefrom and, in a vehicle owned or lawfully possessed by him or her, from transporting any refuse, recyclable discards or green waste naturally accumulated upon such property so owned or lawfully possessed by him or her. As such, this Agreement does not prohibit such materials which are removed from any Service Unit in the City and which are transported personally by the owner or occupant of such premises to a processing or disposal facility pursuant to the City's Municipal Code. This Agreement shall not prohibit gardeners and landscapers from collecting,

Page 16 of 126 ends

Franchise Agreement Term April 1, 2016-March 31, 2026
Packet Page. 2139
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. transporting and composting or disposing of Green Waste, as long as they transport such Green Waste to an Organic Waste Processing Facility, or other site permitted (or exempt from permitting) by CalRecycle, or its successor agency, in accordance with al! governing laws and regulations and submit reports required by City.

2.10 Annexation. Territory annexed to the City and which is zoned or rezoned for residential or commercial use and which is not within the service area of another Solid Waste enterprise which qualifies under Public Resources Code § 49521 to continue to provide Solid Waste services shall be added to the Service Area covered by this Agreement. In the event that an annexed area is added to the Service Area, City and Contractor agree that this Agreement shall supersede any previous franchise agreement, permit, or license granted to Contractor by another public entity with respect to the collection of Solid Waste Recyclable Materials, Bulky Waste and Organic Waste within the annexed area. In the event that an annexed area is within the service area of another Solid Waste enterprise which qualifies under Public Resources Code § 49521, City shall, within 30 calendar days of the effective date of annexation or at such time as may otherwise be required by law, mail a certified return receipt letter to the current Solid Waste enterprise informing them of the commencement of the five (5) year wind down notification per Public Resources Code§ 49521.

2.11 Other Services; Niche Recycling Services. City reserves the right to enter into agreements with other entities for other collection, diversion and recycling services not provided for in this Agreement, including, but not limited to catch basin clean-outs, contract services and "niche" recycling services which Contractor does not currently provide. In the event the City wishes, to provide a niche recycling service, e.g., collection of water heaters, in residential or commercial areas, Contractor shall have the initial opportunity to provide such niche recycling service at an agreed upon rate by the City and the Contractor.

Section 3. Contractor's Payments, Reimbursements, and Additional Revenues to City

3.1 Contractor's Payments to City. In consideration of City's grant of the Franchise, Contractor shall pay and/or reimburse, as the case may be as provided in this Section 3, City in good and immediately available funds in United States Dollars.

3.2 Purchase of City-Owned Equipment/Personal Property. Contractor shall purchase all of City's equipment/personal property utilized in City's provision of Comprehensive Solid Wastes Services, as specified on the "List of City's Equipment/Property" attached to this Agreement as Exhibit 9 for Twelve Million Two Hundred Twenty Five Thousand Dollars ($12t225,000) which represents the Contractor's value of the specific equipment/personal property. Conveyance of and

Page 17 of 126 ends

Franchise Agreement Term April 1, 2016-March 31, 2026
Packet Page. 2140
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. transfer of title to the personal property shall be effectuated by a Bill of Sale and title document deposited by City into an escrow and by Contractor's deposit of the Property Payment into the escrow. The Parties shall deposit their respective items into escrow within thirty (30) Business Days after the Effective Date of this Agreement. Escrow shall close on or before the Service Commencement Date. City represents that, as the date of conveyance of the equipment/personal property to Contractor, such equipment/personal property shall be free and clear of liens, encumbrances and of adverse claims of any kind. In addition, as of the date of conveyance, possession of equipment/personal property shall be deemed as being transferred to Contractor.

3.3 Procurement-Related Costs Reimbursement. Within twenty (20) days after the Service Commencement Date of this Agreement, Contractor shall pay City a maximum amount not to exceed of Two Hundred Fifty Thousand Dollars ($250,000) as reimbursement for City's actual procurement-related costs in undertaking the request for proposal process and for the costs it wil! incur in transitioning Comprehensive Solid Waste Service to Contractor. Within ten (10) days after the Service Commencement Date of this Agreement, the City shall provide an invoice to Contractor specifying the dollar amount incurred by the City for this procurement.

Contractor's reimbursement payment to the City shall be reduced by the amount of any payments made directly by Contractor to City authorized consultants assisting with this procurement.

3.4 Payments to City. For the privileges granted to and conferred upon Contractor by City under the Agreement, Contractor shall pay to City the amounts set forth below ("City Payments"), over the Term of this Agreement, unless the Agreement is earlier terminated or specifically amended to require otherwise:

3.4.1 One-Time, Up-Front Franchise Payment. No later than five (5) business days prior to Service Commencement Date of this Agreement, Contractor shall pay City Five Million Dollars ($5,000,000) for the right to assume City services.

If the Five Million Dollars ($5,000,000) payment is not received by March 25, 2016, this Agreement shall be null and void and the City may exercise its rights for the value of the Performance Bond is Section 26 of this Agreement.

3.4.2 Displaced City Employee Payments. Within 30 days of the Service Commencement Date, Contractor shall pay Five Hundred Thousand Dollars ($500,000) to Displaced City Employees in a method to be determined by the City.

3.4.3 Annual Value Added Franchise Payment. Beginning in Agreement Year 2, Contractor shall pay to City Five Hundred Thousand Dollars ($500,000) each Agreement Year, with the first annual payment due on April 1,

Page 18 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2141
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. 2017, and each succeeding installment payment due on April 1st of each year thereafter, with a final payment due on April 1, 2025. The total amount of all Annual Value Added Franchise Payments shall be Four Million Five Hundred Thousand Dollars ($4,500,000).

3.4.4 Host Fee Payment. Contractor shall pay the City a Host Fee as follows:
a) Contractor shall make quarterly payments in the amounts as specified in Sections 3.4.4.c, 3.4.4.d, and 3.4.4.e covering the periods January 1st - March 31st, April 1st - June 30th , July 1st - September 30th, and October 1st-December 31 st .
b) The Host Fee Payment is due on the last calendar day of the month following the prior quarter for services rendered, unless such day is a weekend or holiday, then the Host Fee Payment is due the next Business Day.
c) For the period covering July 1, 2017 through December 31, 2017, the Host Fee Payment shall be Eighty One Thousand Two
Hundred Fifty Dollars ($81,250).
d) For the period covering January 1, 2018 through March 31, 2018, the Host Fee Payment shall be Eighty One Thousand Two
Hundred Fifty Dollars ($81,250).
e) Beginning April 1, 2018 and thereafter, Contractor shall pay to City Three Hundred Twenty Five Thousand Dollars ($325,000) each Agreement Year during the Term of this Agreement, and as the Term may be extended.
f) The Host Fee payment is based on an initial Two Dollars ($2.00) per ton applicable on City Solid Waste and Green Waste tonnage delivered to the East Valley Recycling & Transfer Station. The dollar amounts specified in Sections 3.4.4.c, 3.4.4.d, and 3.4.4.e are the amounts to be paid by Contractor. In addition, Contractor shall pay the City a higher amount if the actual annual tonnage delivered to the East Valley Recycling & Transfer Station when multiplied by a City approved per ton Host Fee results in a higher dollar amount. Contractor shall also pay the City a Host Fee for non-City Solid Waste and Green Waste tonnages delivered to the East Valley Recycling & Transfer Station that may be subject to an

Page 19 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2142
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. approved City Host Fee, provided that the non-City jurisdictions have agreed to pay the Host Fee amount. Reconciliation of actual tons received and any increased payments to be made to the City for the prior calendar year will be on the subsequent April 1st payment period. The Host Fee Payment will increase in the same amount as any change to the Maximum Permissible Service Rates, and/ or in a percentage amount equivalent to any City approved Host Fee increase above the initial $2.00 per ton.

3.4.5 Landfill Maintenance Cost Avoidance Payment. Contractor shall pay to City Five Hundred Thousand Dollars ($500,000} each Agreement Year during the Term of this Agreement, and as the Term may be extended, in quarterly payments being due on July 1st, October 1st, January 15 \ and April 15\ with the first quarterly payment being due by July 1, 2016. The Annual Landfill Maintenance Cost Avoidance Payment will increase in the same amount as any change to the Maximum Permissible Service Rates.

3.4.6 BioCNG Biofueling Station Payment. Contractor shall pay to City Five Hundred Thousand Dollars ($500,000) each Agreement Year during the Term of this Agreement, and as the Term may be extended, in quarterly payments being due on July 1st, October 1st, January 15\ and April 15\ with the first quarterly payment being due on July 1, 2016. The BioCNG Biofueling Station Payment will be a concession payment for Contractor's use of City owned Biofuel station. If Contractor wishes to purchase BioFuel, Contractor and City shall enter into a separate agreement for the purchase of BioFuel.

3.4.7 Infrastructure Repair Fee Payment. Contractor shall pay to City Two Hundred Fifty Thousand Dollars ($250,000) each Agreement Year during the Term of this Agreement, and as the Term may be extended, with the first annual payment due on April 1, 2016, and each succeeding payment due on April 1st of each year thereafter. The Annual Infrastructure Repair Fee Payment will increase at the same amount as any change to the Maximum Permissible Service Rates.

3.4.8 Monthly Franchise Fee Payment. Contractor shall pay City the Twenty Percent (20%) of the total Gross Receipts received by the Contractor for services provided by the Contractor under the terms of this Agreement. The Monthly Franchise Fee Payment is due on the last calendar day of the month for services rendered during the prior month, unless such day is a weekend or holiday, then the Monthly Franchise Payment is due the next Business Day.

3.4.9 Annual Recyclables Revenue Share Payment. Contractor shall pay City an amount equal to fifty percent (50%) of net revenue from the sale of

Page 20 of 126 ends

Franchise Agreement Term April 1, 2016-March 31; 2026
Packet Page. 2143
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. recyclable materials each calendar year during the Term of this Agreement, and as the Term may be extended, with the first annual payment due on April 1, 2017, and each succeeding payment due on April 1st of each year thereafter. For purposes of calculating the Annual Recyclables Share Payments, "net revenue" shall be the total dollar amount during each calendar year from the sale of Recyclable Materials collected and processed by Contractor under the terms of this Agreement less Contractor's cost for processing and marketing Recyclable Materials, and Contractor's cost for disposal of residual from processing Recyclable Materials. Contractor shall provide documentation accordance with Section 24.1.1. to allow the City to verify the amount of the Recyclables Revenue Share Payments

3.4.10 Final Payments. Any Contractor payments due to the City after March 31, 2026, or March 31, 2031 if this Agreement is extended, shall be made on the required scheduled day (April 1st for Sections 3.4.4, 3.4.5, 3.4.6, 3.4.7, and 3.4.9, or last calendar day of the month for Section 3.4.8).

Section 4. Term and Term Extensions

4.1 Effective Date. The Effective Date of this Agreement shall be the date entered on the first page of this Agreement which is the date by which Contractor and City have approved the Franchise Agreement (with all exhibits attached) and their respective authorized representatives have executed the Franchise Agreement.

4.2 Term of Agreement. The term of this Agreement shall begin on April 1, 2016 and shall expire on March 31, 2026, subject to early termination or extension as may occur pursuant to this Agreement.

4.3 Term Extension. At City's sole option, City may invite Contractor to meet, confer, and negotiate regarding one 5-Year extension to this Agreement, provided the Term has not been earlier terminated or has already been set for early termination, and Contractor is not then in material breach of the Agreement. The time period to negotiate any term extension shall commence April 1, 2023, and end no later than March 31, 2024, ("Exclusive Negotiating Period") All terms and conditions of the Agreement shall be open to negotiation, but neither Party shall be obligated to agree to an extension of the Term nor to any modification of the terms and conditions of the Agreement. In the event, the Parties have not mutually approved an agreement extending the Term by the end of the Exclusive Negotiating Period, then there shall be no further obligation to meet, confer, or negotiate with regard to such extension, and City shall have the right to conduct any solicitation process, negotiate with any other service providers, or to award or approve a contract to any other service provider or to recommence its own Integrated

Page 21 of 126 ends

Franchise Agreement Term April 1, 2016 - March 31, 2026 Packet Page. 2144
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

Solid Waste Collection, Processing and Disposal Services, as it may deem appropriate in its sole and absolute discretion.

4.4 Continued Reporting. Section 23, Section 25, and Section 33 of this Agreement also require Contractor to provide services (e.g., access to landfill destination information, insurance and indemnification and an insurance policy repository) beyond the period during which collection services are to be provided pursuant to this Agreement.

Section 5. Warranties and Representations
Contractor warrants that it shall comply with all applicable laws, including implementing regulations, as they may be amended, specifically including, but not limited to RCRA, CERCLA, the AB 939, SB 20, AB 341, AB 1594, AB 1826, laws governing Universal Waste, including, but not limited to, Universal Waste Electronics Devices ("UWED"), non-empty aerosol cans, fluorescent tubes, high intensity discharge lamps, sodium vapor lamps, and any other lamp exhibiting a characteristic of a hazardous waste, batteries (rechargeable nickel-cadmium batteries, silver button batteries, mercury batteries, small sealed lead acid batteries [burglar alarm and emergency light batteries] alkaline batteries, carbon-zinc batteries and any other batteries which exhibit the characteristic of a hazardous waste), mercury thermometers, mercury-containing switches, regulations and orders of the California Department of Toxic Substances Control, the California Air Resources Board, CalRecycle, and their respective successor agencies, and all other applicable laws of the United States, the State of California, the County of San Bernardino, ordinances of the City, the requirements of Local Enforcement Agencies and all other agencies with jurisdiction.

5.1 Minimum Diversion Requirements. The continued privilege of Contractor to provide Integrated Solid Waste Collection, Processing and Disposal Services to City and within City's boundaries is subject to the satisfaction of each and all of the conditions set below, each of which may be waived in whole or in part by City. The Contractor must achieve all of the following Minimum Requirements. Failure to meet one or more of these requirements is a material breach of this Agreement and subject Contractor to the assessment of liquidated damages, early termination, or other remedies provided for under this Agreement.

5.1.1 Diversion Guarantee. Contractor must achieve a diversion from landfill rate of thirty-one percent {31%) by December 31, 2016; forty percent {40%) by December 31, 2020, and fifty~five percent (55%) by December 31, 2025.

5.1.2 The Maximum Permissible Customer Rates contemplates these Diversion requirements. Should the law change subsequent to the Effective Date of this Agreement and require higher Diversion rates than provided herein, then

Page 22 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2145
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

Contractor shall comply with such legally required Diversion rates and may adjust the Maximum Permissible Customer Rates as provided under Section 21.1.3(c) "Adjustment Due to Change In Law." The diversion rate will be calculated as the tons of materials collected by Contractor from the provision of collection services that are sold or delivered to a Material Recovery Facility or Organic Waste Processing Facility, recycler or re-user, net of all residue, as required by this Agreement, divided by the total tons of materials collected under this Agreement by Contractor in each 12-month calendar year (January 1st - December 31 st).

City may also consider documented third party non-franchised recycling programs conducted within the City in determining compliance with the Minimum Diversion Requirements. In calculating the diversion rate, Contractor may include documentation of Recyclable Materials, Organics, or C&D Materials collected or backhauled by customers for delivery to an end-use market, re-seller, food bank, or processing facility. Documentation may include reports, receipts or other written materials that lists the type of materials and tonnage diverted from the customers' place of business that would otherwise have been collected by the Contractor as ether Solid Waste, Recyclable Materials, Organics, or C&D Materials.

5.1.3 Failure to Meet Minimum Requirements. Contractor's failure to meet the minimum requirements set forth in this Section 5 may result in the imposition of liquidated damages as specified in Section 30.5 or denial of an extension to this Agreement as specified in Section 4.3 and City's exercise of the remedies provided in Section 28 and Section 30.3. In determining the appropriate remedy, City will consider the efforts put forth by the Contractor in implementing the required programs to meet the minimum diversion requirements and the methods, the level of effort of the Contractor to fully implement the work plans attached to and included in this Agreement as Exhibits 5 - 8 and the City's current Per Capita rate as determined by CalRecycle.

5.1.4 Warranties and Representations. Contractor warrants and represents that it is aware of and familiar with City's waste stream, and that it has the ability to and will provide sufficient programs and services to ensure City will meet or exceed the diversion requirements as set forth in Contractor's Diversion Guarantee, as well as the diversion requirements of the Applicable Laws (including, without limitation, amounts of Solid Waste to be diverted, time frames for diversion, and any other requirements) governing this Agreement (including AB 341, AB 939, AB 1594, AB 1826, SB 1016 and all amendments and related subsequent legislation), and that it shall do so without imposing any costs or fees other than those set forth in Exhibit 1 (including if new programs are implemented which are not called out herein). The programs identified herein

Page 23 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2146
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. are minimum requirements that must be met, and Contractor shall be responsible for implementing any other programs that may be necessary to achieve the forgoing.

5.1.5 Guarantee and Indemnification. Contractor warrants and guarantees that it will carry out its obligations under this Agreement in a manner consistent with Applicable Laws including specifically AB 939, AB 341, AB 1594, AB 1826 and SB 1016, and Contractor's actions will provide for the City to meet or exceed the diversion requirements (including, without limitation, amounts of Solid Waste to be diverted, time frames for diversion, and any other requirements) set forth in Contractor's Diversion Guarantee and the Applicable Laws including AB 939, AB 341, AB 1594, AB 1826, and SB 1016 and all amendments thereto. In this regard Contractor agrees that it will, in addition to any other requirement contained herein, at its sole cost and expense:
a) To the extent legally permitted, defend, with counsel approved by City, indemnify, and hold harmless City and City's officials, employees, and agents from and against all fines and/or penalties and other liabilities which may be imposed by CalRecycle or any other regulatory agency if: (1) Contractor fails or refuses to timely provide information relating to its operations which is required pursuant to this Agreement or the Applicable Laws and such failure or refusal prevents or delays City from submlttlng reports required by the Applicable Laws including AB 939, AB 341, AB 1594, and AB 1826 in a timely manner; or (2) the source reduction and Recycling goals, diversion goals, program implementation requirements, or any other requirements of the Applicable Laws, including AB 939, AB 341, AB 1594, and AB 1826, are not met with respect to the waste stream collected under this Agreement; b) Assist City in responding to inquiries from Ca!Recyc!e or any other regulatory agency;
c) Assist City in preparing for, and participating in, the CalRecycle's biannual review of City's SRRE pursuant to Public Resources Code Section 41825;
d) Assist City in applying for any extension, including under Public Resources Code Section 41820, if so directed by City;
e) Assist City in any hearing conducted by CalRecycle, or any other

Page 24 of 126 ends

Franchise Agreement Term April 1, 2016 - March 31, 2026 Packet Page. 2147
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. regulatory agency, relating to City's compliance with the Applicable Laws including AB 939, AB 341, AB 1594, and AB 1826;
f) Assist City with the development of and implement a public awareness and education program that is consistent with the City's SRRE and Household Hazardous Waste Element, as well as any related requirements of the Applicable Laws;
g) Provide City with Recycling, source reduction, and other technical assistance as may be needed to comply with the Applicable Laws including AB 939, AB 341, AB, 1594, and AB 1826;
h) Defend, with counsel acceptable to City, City and City's officials, employees, and agents against the imposition of fines and/or penalties, or any other liabilities, issued by CalRecycle pursuant to the Applicable Laws including AB 939, AB 341, AB 1594 and AB 1826;
i) Be responsible for and pay, any fees, penalties or other costs imposed against the City by CalRecycle, and indemnify and hold harmless City from and against any fines, penalties, or other liabilities, levied against it for violation of the diversion requirements, set forth in the Applicable Laws for services provided by Contractor under the terms of this Agreement, including AB 939, AB 341, AB 1594 and AB 1826, or for violation of any other provision of the Applicable Laws, including AB 939, AB 341, AB 1594 and AB 1826, arising from or in any way related to Contractor's performance of its obligations under this Agreement.

Section 6. Types and Frequency of Service

6.1 Public Health and Safety - General. In order to protect the public health and safety, arrangements made by Contractor with its Service Recipients within the City for the collection of Solid Waste shall provide for the collection of such waste generated or accumulated in Service Units within the City at least once per week, on the regular collection day, or more frequently as Contractor and its customers may agree.

6.2 Hours of Collection. Subject to the exceptions in Section 6.5, Contractor agrees that, in order to protect the quiet enjoyment of residents of the City, Contractor's

Page 25 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2148
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. collection of Solid Waste, Recyclable Material, and Organic Waste from SFD Service Units shall take place Mondays through Fridays and shall be made between the hours of 5 a.m. and 6 p.m. SFD collection may occur on Saturdays following an observed holiday.

MFD and Commercial/Industrial Solid Waste, Recyclable Material, and Organic Waste collection shall take place Monday through Saturday between the hours of 5 a.m. and 6 p.m. City collection service shall be provided between the hours of 5 a.m. and 6 p.m., Monday through Saturday. The hours, days, or both of collection may be extended with the prior written consent of the City Representative.

6.2.1 Restricted Hours. The City may direct Contractor to restrict the collection hours in areas around schools and in high traffic areas during peak commute hours. When the City is conducting road overlay or slurry projects, the City reserves the right to temporarily redirect or restrict Contractor from collection in the affected areas or temporarily change the collection hours if needed. The hours of collection may be extended due to extraordinary circumstances or conditions with the prior written consent of the City Representative.

6.3 Service Units. Service Units shall include all the following categories of premises which are in the service area as of the Service Commencement Date, and all such premises which may be added to the service area by means of annexation, new construction, or as otherwise set forth in this Agreement during term of this Agreement:

6.3.1 SFD Service Units

6.3.2 MFD Service Units

6.3.3 Commercial Service Units

6.3.4 City Service Units
Any question as to whether a premises falls within one of these categories shall be determined by the City Representative and the determination of the City Representative shall be final.

6.4 Service Unit Changes. City and Contractor acknowledge that during the Term of this Agreement it may be necessary or desirable to add or delete Service Units for which Contractor will provide collection services.

6.4.1 Additions and Deletions. Contractor shall provide services described in this Agreement to new Service Units within five (5) work days of receipt of notice from City or new Service Unit to begin such service.

6.5 Holiday Service. Contractor observes January 1st, Memorial Day, 4th of July, Labor Day, Thanksgiving Day, and December 25th as legal holidays. Contractor shall not provide collection service on these designated holidays. In any week in which one of

Page 26 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2149
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. these holidays falls on a work day, Service Unit collection service for the holiday and each work day thereafter will be delayed one work day for the remainder of the week with normally scheduled Friday collection services being performed on Saturday. MFD, commercial and City collection service shall be adjusted as agreed between the Contractor and the Service Recipient.

6.6 Processing and Disposal.

6.6.1 Compliance with Regulations. All materials collected under this Agreement shall be delivered to facilities that comply with the Department of Resources Recycling and Recovery regulations under Title 14, Chapter 3, Minimum Standards for Solid Waste, Recyclable Material, and Organic Waste Handling and Disposal (Article 5.9 - Sections 17380-17386). Contractor, and not the City, must assure that all disposal, transfer, and processing facilities are properly permitted to receive material collected under this Agreement. Failure to comply with this provision is a material breach of the Agreement and may result in the imposition of liquidated damages as specified in Section 30.5 of this Agreement, and subject Contractor to the remedies provided in Section 28 and Section 30.

6.6.2 Permits and Approvals. Contractor must assure that all facilities selected by Contractor shall possess all permits and approvals by local enforcement agencies to be in full compliance with all regulatory agencies to conduct all operations at the approved location. Contractor shall, upon written request from the City, arrange for the facilities selected by the Contractor to provide copies of facility permits, notices of violations, inspection areas or concerns, or administrative action to correct deficiencies related to the operation. Failure to provide facility information is a material breach of this Agreement and may result in the imposition of liquidated damages as specified in Section 30.5 and subject Contractor to the remedies provided in Section 28 and Section 30.

6.6.3 Disposal Facility. Beginning on the Service Commencement Date, except as set forth below, all Solid Waste collected as a result of performing collection services shall be timely transported to a fully permitted Disposal Facility as designated by Contractor, in accordance with applicable law. In the event the Disposal Facility is closed on a work day, the Contractor shall transport and dispose of the Solid Waste at such other legally permitted disposal facility.

Failure to comply with this provision is a material breach of this Agreement and may result in the imposition of liquidated damages as specified in Section 30.5 of this Agreement and may subject Contractor to the remedies provided in Section 28 and Section 30.

Page 27 of 126 ends

Franchise Agreement Term April 1, 2016 - March 31, 2026 Packet Page. 2150
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

6.6.4 Organic Waste Processing Facility. Beginning on the Service Commencement Date, Contractor shall timely deliver all collected Organic Waste to a fully permitted Organic Waste Processing Facility as designated by Contractor, in accordance with applicable law. In the event the facility is closed on a Work Day, the Contractor shall transport and deliver the Organic Waste to such other legally permitted facility. Contractor shall ensure that all Organic Waste collected pursuant to this Agreement, except residue resulting from processing, is delivered to an Organic Waste Processing Facility that operates in compliance with diversion and recycling legislation and regulations. Failure to comply with this provision is a material breach of this Agreement may result in the imposition of liquidated damages as specified in Section 30.5 of this Agreement and may subject Contractor to the remedies provided in Section 28 and Section 30.

6.6.5 Material Recovery Facility. Beginning on the Service Commencement Date all Recyclable Materials collected as a result of performing collections shall be delivered to a legally permitted Material Recovery Facility {MRF). In the event the MRF is closed on a work day, the Contractor shall transport and deliver the Recyclable Material to such other legally permitted MRF. Failure to comply with this provision may is a material breach of this Agreement and may result in the imposition of liquidated damages as specified in Section 30.5 of this Agreement and may subject Contractor to the remedies provided in Section 28 and Section

30. 6.6.6 Transformation Facility. At Contractor's option, Contractor may direct up to 10% of the City's total waste stream to a waste-to-energy facility for diversion purposes provided that such diversion is allowable and deemed to be diversion by CalRecycle. Contractor is not entitled to any additional compensation associated with Contractor's use of any Transformation Facility unless the City specifically directs Contractor to use a Transformation Facility.

6.6.7 Use of ADC (ADC). Contractor may utilize ADC for diversion of Green Waste provided that such diversion is allowable and deemed to be diversion by CalRecycle and higher use of Green Waste is not feasible.

6. 7 Inspections. The City shall have the right to inspect the Contractor's facilities or collection vehicles and their contents at any time while operating inside or outside the City.

6.8 Commingling of Materials.

6.8.1 Source Separated Organic Waste and Recyclable Materials. Contractor shall not at any time collect source separated Organic Waste or source

Page 28 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2151
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. separated Recyclable Materials with any Solid Waste collected pursuant to this Agreement, without the express prior written authorization of the City Representative.

6.8.2 Organic Waste, Recyclable Material or Solid Waste Collected in City.

Contractor shall not at any time collect any Organics, Recyclable Materials, or Solid Waste collected pursuant to this Agreement, with any other material collected by Contractor outside the City without the express prior written authorization of the City Representative.

6.9 Contamination. Contractor shall only be required to collect Recyclable Materials if they have been separated by the Service recipient from Solid Waste and Organic Waste, and shall only be required to collect Organic Waste if it has been separated by the Service Recipient from Solid Waste and Recyclable Materials. If Recyclable Materials are commingled with Solid Waste or Organic Waste, or Organic Waste is commingled with Solid Waste or Recyclables, to the extent that renders the entire Recyclable Materials or Organic Waste container contaminated, then Contractor will leave the container unemptied along with a non-collection notice which contains instructions on the proper procedures for setting out Recyclable Materials or Organic Waste. The Service Recipient has the option of removing the contaminated materials and the Contractor shall collect the Recyclables Materials or Organic Waste at the next scheduled collection day for no additional charge. If, however, the Service Recipient does not remove the contaminated materials, then the Contractor shall collect the contaminated Recyclable Materials or Organic Waste as Solid Waste on the Service Recipient's next regularly scheduled Solid Waste collection day. Contractor may charge for this service at the applicable Solid Waste collection rate for the type of customer and size of container as specific in EXHIBIT 1.

6.1 0 Graffiti Removal

6.10.1 Graffiti Removal from Carts or Bins. If Carts or Bins have been marked or tagged with graffiti, within 48 hours of being identified by the Contractor or City, Contractor shall efther remove the graffiti or replace any and all Carts or Bins that have been marked or tagged with graffiti. Contractor shall not deliver a Cart or Bin with any graffiti visible on the Cart Bin.

6.10.2 Graffiti Removal from Temporary Bins and Roll-offs. If Temporary Bins or Roll-offs have been marked or tagged with graffiti, by the next regular scheduled collection day, but no longer than seven (7) calendar days of being identified by the Contractor or City, Contractor shall either remove the graffiti or replace any and all Temporary Bins or Roll-offs that have been marked or tagged

Page 29 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2152
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. with graffiti. Contractor shall not deliver a Temporary Bin or Roll-off with any graffiti visible on the Roll-off.

6.11 Spillage and Litter. The Contractor shall use its best efforts to not litter premises in the process of providing collection service or while its vehicles are on the road. The Contractor shall transport all materials collected under the terms of this Agreement in such a manner as to prevent the spilling or blowing of such materials from a Contractor's vehicle. The Contractor shall exercise all reasonable care and diligence in providing collection service so as to prevent spilling or dropping of Solid Waste, Organic Waste, or Recyclable Materials and shall immediately, at the time of occurrence, clean up such spilled or dropped materials.

6.11.1 Carelessness of Service Recipient. The Contractor shall not be responsible for cleaning up unsanitary conditions caused by the carelessness of the Service Recipient; however, the Contractor shall clean up any material or residue that are spilled or scattered by the Contractor or its employees.

6.11.2 Liquids from Operations. Equipment oil, hydraulic fluids, spilled paint, or any other liquid or debris resulting from the Contractor's operations or equipment repair shall be covered immediately with an absorptive material and removed from the surface. When necessary, Contractor shall apply a suitable cleaning agent to the street surface to provide adequate cleaning. Contractor's vehicles shall at all times carry sufficient quantities of petroleum absorbent materials along with a broom and shovel.

6.11.3 Spillage and Litter from Operations. The above paragraphs notwithstanding, Contractor shall clean up any spillage or litter caused by Contractor within two (2) hours upon notice from the City.

6.12 Hazardous Waste.

6.12.1 Hazardous Waste. Under no circumstances shall Contractor's employees knowingly collect Hazardous Waste, or remove unsafe or poorly placed Hazardous Waste, from a collection Container. If Contractor determines that material placed in any Container for collection is Hazardous Waste, or other material that may not legally be accepted at the Disposal Facility or one of the processing facilities, or presents a hazard to Contractor's employees, the Contractor shall have the right to refuse to accept such material. The generator shall be contacted by the Contractor and requested to arrange for proper disposal service. If the generator cannot be reached immediately, the Contractor shall, before leaving the premises, leave a non-collection notice, which indicates the reason for refusing to collect the material, and how the Hazardous Waste can be properly disposed or recycled.

Page 30 of 126 ends

Franchise Agreement Term April 1, 2016- March 31 1 2026 Packet Page. 2153
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

6.12.2 Notification of City. If Hazardous Waste is found in a collection Container that poses an imminent danger to people or property, the Contractor shall immediately notify the City Representative and the City's Public Safety (Police) Department. The Contractor shall immediately notify the City of any Hazardous Waste that has been identified.

6.12.3 Disposal. If Hazardous Waste is identified at the time of delivery to the Disposal Facility, or one of the processing facilities and the generator cannot be identified, Contractor shall be solely responsible for handling and arranging transport and disposition of the Hazardous Waste.

6.13 Regulations and Record Keeping. Contractor shall comply with emergency notification procedures required by applicable laws and regulatory requirements. All records required by regulations shall be maintained at the Contractor's facility. These records shall include waste manifests, waste inventories, waste characterization records, inspection records, incident reports, and training records.

6.14 Transition. Contractor understands and agrees that the Transition Period is intended to provide the Contractor with ample and sufficient time to, among other things, order equipment, prepare necessary routing schedules and route maps, obtain any permits and licenses, establish/build facilities, and begin the public awareness campaign as part of the Contractor's transition program as specified in Exhibit 5 which is attached to and included in this Agreement. Contractor shall be responsible for the provision of a!I collection services beginning on the Service Commencement Date.

Section 7. SFD Collection Service
In addition to the general requirements in Section 6, these services shall be governed by the following terms and conditions:

7.1 Conditions of Service. The Contractor shall provide SFD collection service to all SFD Service Units whose Solid Waste, Organics, or Recyclable Materials are properly placed in Carts, except as set forth in Section 7.8, Contractor shall offer Solid Waste Carts in 64 and 96-gallon sizes, and Recyclables Materials and Organic Waste Carts in 64 or 96-gallon sizes. Contractor may offer alternative services to recipients receiving on-premise service. If collection in Carts is not sufficient to accommodate the amount of Solid Waste generated, Contractor may offer Bins or Roll-offs in sizes as allowable under this Agreement.
7 .2 Collection Service. SFD collection shall be done where Solid Waste, Recyclable Materials, and Organic Waste Carts are placed within two (2) feet of the curb, swale, or at edge of street pavement for streets without curbs. This shall apply to

Page 31 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2154
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. both public and private streets. Contractor may charge for collection at the rates as set forth in Exhibit 1.

7.2.1 On-Premise Collection Service - Physical Disability. A SFD Service Recipient, and all other adults living at the Service Unit residing therein, who have disabilities that prevent him/her from being physically unable to place Carts at the curb for collection shall receive on-premise collection service where all Carts are collected from a side-yard, backyard, or other off-street location agreed on between the Contractor and the Service Recipient. Contractor shall provide this service at the collection rates as set forth in Exhibit 1.

7.3 Frequency and Scheduling of Service. SFD Solid Waste, Recyclable Materials and Organic Waste shall be provided one (1) time per week on a scheduled route basis. SFD collection services shall be scheduled so that a SFD Service Unit receives SFD Solid Waste collection service and SFD Recyclable Materials collection service, and SFD Organic Waste collection service on the same Work Day. 7 .4 Non-collection. Contractor shall not be required to collect any Solid Waste, Recyclable Material, or Organic Waste that is not placed in a Cart. In the event of noncollection, Contractor shall affix to the Cart a non-collection notice explaining why collection was not made. Contractor shall maintain a copy of such notices during the term of this Agreement.

7.5 SFD Solid Waste Collection Service. This service will be governed by the additional following terms and conditions:
7 .5.1 Additional Carts. Contractor shall provide additional Carts to SFD Service Recipients within five (5) working days of request at rates per Exhibit 1, provided that additional Carts are used by Service Recipients for the purposes of setting out additional Solid Waste Materials for regular Solid Waste Material collection service.

7.5.2 Solid Waste - Changes to Work. Should changes in law arise that necessitate any additions or deletions to the work described herein including the type of items included as Solid Waste Materials, the parties shall negotiate any necessary cost changes and shall enter into an Agreement amendment covering such modifications to the work to be performed and the compensation to be paid before undertaking any changes or revisions to such work,

7.6 SFD Recyclable Materials Collection Service. This service will be governed by the additional following terms and conditions:

7.6.1 Additional Carts. Contractor shall provide additional Carts to SFD Service Recipients within five (5) working days of request at no additional cost provided

Page 32 of 126 ends

Franchise Agreement Term April 1, 2016 - March 31, 2026 Packet Page. 2155
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. that additional Carts are used by Service Recipients for the purposes of setting out additional Recyclable Materials for regular Recyclable Material collection service.

7.6.2 Recycling - Changes to Work. Should changes in law arise that necessitate any additions or deletions to the work described herein including the type of items included as Recyclable Materials, the parties shall negotiate any necessary cost changes and shall enter into an Agreement amendment covering such modifications to the work to be performed and the compensation to be paid before undertaking any changes or revisions to such work.

7.7 SFD Organic Waste Collection Service. In addition to the requirements of Section 6, this service will be governed by the following terms and conditions:

7. 7 .1 Organic Waste Processing Services. Contractor shall ensure that all Organic Waste collected pursuant to this Agreement are diverted from the landfill in accordance with AB 939 and any subsequent or other applicable legislation and regulations. Contractor reserves the right to dispose, rather than divert, any Organic Waste that is contaminated to an extent it is not suitable for processing.

7.7.2 Organic Waste Disposal. Contractor shall ensure that the Organic Waste collected pursuant to this Agreement is not disposed of in a landfill, except as a residue resulting from processing. For purposes of this Agreement, the application of Organic Waste as Alternative Daily Cover ("ADC") shall not constitute disposal, so long as, it is applied in accordance with standards adopted by the State of California and is allowable under AB 1594.

7.7.3 Additional Organic Waste Carts. Contractor shall provide additional SFD Organic Waste Carts to SFD Service Recipients within five (5) working days of request. Contractor shall be compensated for the cost of additional Organic Waste Carts in accordance with the "Additional Organic Waste Cart" Service Rate as set forth in Exhibit 1 or as may be adjusted under the terms of this Agreement.

7.7.4 Holiday Tree Collection Service. Contractor shall collect Holiday Trees from all SFD Service Units as part of the SFD Organic Waste collection services.

Contractor shall provide this service beginning on the first work day after December 25 until the end of the second collection week in January, or dates approved by the City.
a) Contaminated Holiday Trees. Holiday trees that are flocked contain tinsel or other decorations or that do not have their stands removed may be delivered to the Disposal Facility at the discretion of the Contractor.

Page 33 of 126 ends

Franchise Agreement Term April 1, 2016-March 31, 2026
Packet Page. 2156
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. b} Trees must be no taller than six (6) feet in length. Trees taller than six (6) feet in length must be cut in half for safe collection.

7.7.5 SFD Food Waste Collection Service. At such time as State Law mandates a separate residential Food Waste Program, Contractor and City shall negotiate the specific program requirements and costs to implement such Food Waste Program.

7.7.6 Non-collection. Contractor shall not be required to collect any Organic Waste that is mixed with either Solid Waste, or Recyclable Materials. In the event of non-collection, Contractor shall affix to the Organic Waste Cart a noncollection notice explaining why collection was not made. Contractor shall maintain a copy of such notices during the term of this Agreement.

7.8 On-Call Bulky Waste Collection Service. This service will be governed by the following terms and conditions:

7.8.1 Conditions of Service. The Contractor shall provide On-Call SFD Bulky Waste collection service to all SFD Service Units in the service area whose Bulky Waste have been placed within two (2) feet of the curb, swale, paved surface of the public or private roadway, closest accessible roadway, or other such location agreed to by the Contractor and Service Recipient, that will provide safe and efficient accessibility to the Contractor's collection crew and vehicle. Each SFD Service Unit in the service area shall be entitled to receive free Bulky Waste collection service a maximum of two (2) collection times per calendar year, five (5) items per collection such as a TV, couch, or water heater. Automobile tires will be limited to two (2) tires per collection request. In accordance with the "Special Collection" service rate as set in Exhibit 1, Contractor shall be compensated for the cost of collecting Bulky Waste in excess of two (2) Bulky Waste collections per year, or more than five (5) items per collection during any single Bulky Waste collection.

7.8.2 Frequency of Service. SFD Service Recipients must cal! at !east fortyeight (48) hours in advance to schedule SFD Bulky Waste collection service.

Collection will occur on customer's next scheduled service collection day.

7.8.3 Bulky Waste Containing Freon. In the event Contractor collects Bulky Waste that contains Freon, Contractor shall handle such Bulky Waste in a manner such that the Bulky Waste is not subject to regulation as Hazardous Waste under applicable state and federal laws or regulations.

7.9 SFD Temporary Collection Service. Upon forty-eight (48) hours request by a SFD Service Unit, Contractor shall provide a 3 cubic yard Bin or Roll-off at the Service Unit. Such SFD temporary collection service shall be on a temporary basis not to

Page 34 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2157
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. exceed seven (7) days without collection, emptying, and replacement of the Bin or Rolloff.

7.9.1 Bins or Roll-offs shall be transported by Contractor to an approved processing facility to achieve maximum diversion.

7.9.2 Charges for temporary Bins Roll-offs shal! be in accordance with Exhibit 1 of this Agreement.

7.9.3 The Contractor shall provide SFD temporary collection services with as little disturbance as possible and shall leave any Bins or Roll-off at a location without obstructing alleys, roadways, driveways, sidewalks, or mail boxes.

Contractor shall only place Bins or Roll-offs in strict adherence with the City's right-of-way requirements and Municipal Code.

Section 8. MFD Collection Services

8.1 MFD collection services for MFD premises utilizing Carts will be governed by all conditions of service as specified in Section 7 of this Agreement and those MFD premises utilizing Bins or Roll-offs will be governed by all conditions of service as specified in Section 8.4 and Section 9 of this agreement. Contractor may charge for collection at the rates as set forth in Exhibit 1. In addition, the following additional services shall apply:

8.2 MFD Organic Waste Collection Service. For MFD Service Units utilizing Bins or Roll-offs for collection, Contractor shall implement any required MFD Organic Waste Program in accordance with the schedule established under AB 1826.

8.3 On-Call MFD Bulky Waste Collection Service. The Contractor shall provide on-call MFD Bulky Waste collection service to all MFD Service Units in the service area whose Bulky Waste have been placed within five (5) feet of the curb, swale, paved surface of the public or private roadway, closest accessible roadway, or other such location agreed to by the Contractor and Service Recipient or property manager, that will provide safe and efficient accessibility to the Contractor's collection crew and vehicle. In accordance with the "Bulky Waste Collection" service rate as set in Exhibit 1, Contractor shall be compensated for the cost of collecting MFD Bulky Waste.

8.4 MFD Temporary Collection Service. Upon forty-eight (48) hours request by a MFD Service Unit, Contractor shall provide a 3 cubic yard Bin or Roll-off at the Service Unit. Such MFD temporary collection service shall be on a temporary basis not to exceed seven (7) days without collection, emptying, and replacement of the Bin or Rolloff.

Page 35 of 126 ends

Franchise Agreement Term April 1, 2016-March 31, 2026
Packet Page. 2158
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

8.4.1 Bins or RoH-offs shall be transported by Contractor to an approved processing facility to achieve maximum diversion.

8.4.2 Charges for temporary Bins Roll-offs shall be in accordance with Exhibit 1 of this Agreement.

8.4.3 The Contractor shall provide MFD temporary collection services with as little disturbance as possible and shall leave any Bins or Roll-off at a location without obstructing alleys, roadways, driveways, sidewalks, or mail boxes.

Contractor shall only place Bins or Roll-offs in strict adherence with the City's right-of-way requirements and Municipal Code.

Section 9. Commercial Collection Service

9.1 Conditions of Service. The Contractor shall provide commercial Solid Waste collection service, commercial Recyclable Material collection service, Commercial Organic Waste collection service, and Commercial Roll-off collection service to all Commercial Service Units in the service area pursuant to the requirements of Section 6 and this Section 9. Contractor may charge for collection at the rates as set forth in Exhibit 1. For new customers, and any change in service, Contractor shall have a written service agreement with each Commercial Service Unit that specifies the services to be provided and the Maximum Permitted Rates to be charged for the agreed on services. The service agreement shall reflect any change in services as requested by the Commercial Service Unit.

9.1.1 Required Container Sizes. Contractor shall offer Solid Waste Carts in 64 and 96-gallon cart sizes, and Recyclable Materials and Organic Waste Carts in 64 or 96-gallon cart sizes. Contractor shall offer Bins in 2, 3, 4, and 6 cubic yard sizes. Contractor shall offer Roll-offs in 10, 20, and 40 cubic yard sizes.

9.1.2 Required Capacity. Contractor shall provide commercial Recyclable Materials collection service to all Commercial Service Units in the service area, and Commercial Organic Waste collection service provided upon subscription at the rates as set forth in Exhibit 1. For each Service Unit, Contractor shall offer a minimum capacity of commercial Recyclable Material collection as requested by the Service Recipient. The maximum capacity offered shall be measured as the total cubic yards collected weekly for commercial Solid Waste collection service.

9.1.3 Accessibility. Contractor shall collect all Containers that are readily accessible to the Contractor's crew and vehicles and not blocked. However, Contractor shall provide "pull-out services" as necessary during the provision of commercial collection services. Pull-out services shall include, but not be limited to moving manually or by a specialized "scout" truck the Containers from their

Page 36 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2159
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. storage location for collection and returning the Containers to their storage location and will be charged as outlined in Exhibit 1.

9.1.4 Manner of Collection. The Contractor shall provide commercial collection service with as little disturbance as possible and shall leave any Container at the same point it was originally located without obstructing alleys, roadways, driveways, sidewalks or mail boxes.

9.1.5 Size and Frequency. The size of the Container and the frequency (above the minimum) of collection shall be determined between the Service Recipient and the Contractor provided it meets the City's development and permitting requirements. However, the size and frequency shall be sufficient to provide that no Solid Waste, Recyclable Material, or Organic Waste need be placed outside the Container. Commercial collection service shall be provided as deemed necessary and as determined between the Contractor and the customer, but such service shall be received no less than one { 1) time per week with no exception for holiday(s) as set forth herein, except that collection service scheduled to fall on a holiday may be rescheduled as determined between the customer and the Contractor as long as the minimum frequency requirement is met. Service may be provided by Bin, Cart or Roll-off at the option of the customer. The Contractor shall provide Solid Waste, Organics Waste, or Recyclable Materials Containers as part of the commercial collection service rates set forth in Exhibit 1; however, customers may own their compactor provided that the customer is completely responsible for its proper maintenance and such compactor shall be of a type that can be serviced by the Contractor's equipment.

9.2 Commercial Solid Waste Collection Service. This service shall be governed by the following additional terms and conditions:

9.2.1 Commercial Solid Waste Ove!flow. Where Contractor identifies instances of overfilling of Container, it will document the overfilling through verbal or written reports and/or digital photography. Contractor will meet with the customer to review evidence of the overfilling of containers. Where such evidence was presented to the commercial/industrial account and Contractor documents another instance of ovelfilling within one (1) month of such presentation, Contractor is authorized to charge an overage fee as outlined on Exhibit 1. In addition, Contractor will contact the customer to discuss the option of delivering a next larger-sized Container to the commercial/industrial premises.

9.2.2 Non-collection. Contractor shall not be required to collect any commercial Solid Waste that is not placed in a Cart, Bin, or Roll-off. In the event of nonPage 37 of 126 Franchise Agreement Term April 1, 2016- March 31 1 2026 Packet Page. 2160
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. collection or material overflow, Contractor shall affix to Cart, Bin, or Roll-off a non-collection notice explaining why collection was not made.

9.3 Commercial Recyclable Material Collection Service. This service will be governed by the following terms and conditions:

9.3.1 Additional Bins or Carts. Contractor shall provide additional Cart, Bin, or Roll-off to commercial Service Recipients within five (5) working days of request provided that additional Bins and Carts are used by commercial Service Recipients for the purposes of setting out additional Recyclable Materials for regular weekly Recyclable Materials collection service. Contractor may charge for additional Bins or Carts in accordance with EXHIBIT 1.

9.3.2 Recycling - Changes to Work. Should changes in law arise that necessitate any additions or deletions to the work described herein including the type of items included as Recyclable Materials, the parties shall negotiate any necessary cost changes and shall enter into an Agreement amendment covering such modifications to the work to be performed and the compensation to be paid before undertaking any changes or revisions to such work.

9.4 Commercial Organic Waste Collection Service. This service shall be provided on a customer subscription basis and will be governed by the following terms and conditions:

9.4.1 Conditions of Service. In accordance with the schedule established under AB 1826, Contractor shall provide Commercial Organic Waste Collection Service to all Commercial Service Units in the service area who have subscribed for service and whose Commercial Organic Waste materials are properly placed in Containers except as set forth below, where the Containers are accessible.

Commercial Organic Waste Collection Service will occur Monday - Friday, and on Saturdays upon request and as necessary.

9.4.2 Commercial Organic Waste - Changes to Work. Should changes in law arise that necessitate any additions or deletions to the work described herein including the types of items included as Organic Waste, the parties shall negotiate any necessary cost changes and shall enter into an Agreement amendment covering such modifications to the work to be performed and the compensation to be paid.

9.5 Commercial Roll-off Collection Service. Upon request of a Commercial Service Unit, Contractor shall provide a commercial Roll-off collection service on a temporary basis or permanent basis.

Page 38 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2161
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

9.5.1 Roll-offs shall be transported by Contractor to an approved processing facility to achieve maximum diversion.

9.5.2 Charges for Roll-offs shall be in accordance with Exhibit 1 of this Agreement.

9.5.3 The Contractor shall provide commercial Roll-off collection services without obstructing alleys, roadways, driveways, sidewalks, or mail boxes.

Contractor shall only place Roll-offs in strict adherence with the City's right-ofway requirements and Municipal Code.

Section 10. Collection Service for City Service Units

10.1 General. Contractor shall provide Solid Waste, Recyclable Material, and Organic Waste collection services, and Roll-off collection service to City Service Units as deemed necessary and as determined between the Contractor and the City, but such service shall be received no less than one (1) time per week. Contractor Service may be provided by Bin, Cart or Roll-off at the option of the City. Contractor shall offer Solid Waste Carts in 64 and 96-gallon cart sizes and Bins in 2, 3, 4, and 6 cubic yard sizes, and Recyclables Materials and Organic Waste Carts in 64 and 96-gallon cart sizes and Bins in 2, 3, 4, and 6 cubic yard sizes. Contractor shall offer Roll-offs in 10, 20, and 40 cubic yard sizes. The size of the Container and the frequency (above the minimum) of collection shall be determined between the City and the Contractor. However, size and frequency shall be sufficient to provide that no Solid Waste, Recyclable Materials, or Organic Waste needs to be placed outside the Container. City Service Units are listed in Exhibit 2. Contractor shall not charge for collection of Solid Waste, Recyclable Materials or Organic Waste generated within the normal course of business.

10.2 Public Containers Collection. Contractor shall provide collection, transportation and disposal or processing service to those public Solid Waste, Organic Waste or Recycling Containers in place or placed by the City, or as designated by the City, and other City properties during the term of this Agreement. Frequency of collection shall be a maximum of six (6) days per week per Container.

10.3 Accessibility. Contractor shall collect all Carts, Bins and Roll-offs that are readily accessible to the Contractor's crew and vehicles and not blocked. However, Contractor shall provide "pull-out services" as necessary during the provision of City collection services. Pull-out services shall include, but not be limited to, dismounting from the collection vehicle, moving the Bins or Carts from their enclosure location for collection and returning the Bins or Carts to their enclosure location.

10.4 Contractor Additional Services. Contractor will provide the following additional services at no cost to the City:

Page 39 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2162
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

10.4.1 City Sponsored Events. Contractor shall provide collections services at City-sponsored events as requested by City. Such services shall be provided in such a manner that all collection, processing and disposal needs for the event are adequately and properly provided for by Contractor. City Sponsored Events are set forth on Exhibit 4, attached to and included in this Agreement. Contractor agrees to establish a program under which it will donate free or reduced cost services as a gesture of corporate good will to charitable or other non-profit community groups for events sponsored by such groups within the City's boundaries.

10.4.2 Neighborhood Watch Program. Contractor shall implement a neighborhood watch program in cooperation with the City Representative and City's Police Chief. The purpose of the program is to enhance the standard of living in City's neighborhoods by utilizing Contractor's drivers and supervisors to keep a watchful eye out for flagged activities or circumstances. Contractor will work with City to identify preferred reporting methodologies as well as the identification of certain problem areas or flagged actives or circumstances.

Contractor will train drivers on how to safely report potential incidents of crime, vandalism or child safety.

10.4.3 Local Purchase Preference Program. Contractor shall make good faith efforts to purchase goods and services from businesses located within City's boundaries ("San Bernardino Business") that are reasonably cost effectively able to supply parts, services or support to Contractor in performing its obligations under this Agreement.

10.5 Community Development Department Reviews. Contractor, upon City's request, shall assist the City in the review of applicants' plans for projects covered by Public Resources Code § 42911, including commercial and multi-family projects, to provide for effective and economical accumulation and collection of Organic Waste, Recyclable Materials and Solid Waste.

10.6 Enforcement. Contractor and City will take reasonable measures, including, but not limited to, legal actions (e.g., actions seeking to enjoin scavengers) to discourage Scavenging of Recyclable Materials from the Solid Waste, Recyclable Material, and Organic Waste Stream. Contractor agrees to assist the City to further develop or implement Anti-Scavenging Ordinances, Construction & Demolition Ordinances, and Mandatory Commercial and Multi-Family Recycling Ordinances to assist in meeting CalRecycle diversion program requirements, maximize the Exclusive Franchise provisions of this agreement, and to deter illegal hauling from occurring in the City.

Page 40 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2163
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

Section 11. Street Sweeping

11.1 Street Sweeping Services. Beginning on the Service Commencement Date, and continuing until the expiration or termination of this Agreement, Contractor or Contractor's subcontractor as listed in Exhibit 11, shall provide street sweeping services at no additional cost in accordance with the terms and conditions of this Agreement.

11.2 Manner of Service. Contractor shall provide a complete sweep of all publicly maintained City Streets. Within any curb mile, Contractor shall be responsible for sweeping all curbs including median islands and the corners from any cross street intersecting the subject street. Contractor shall obey all laws governing the operation of the sweepers on a public street, and shall perform its operations so that sweepers are traversing their routes in the normal direction of traffic.

11.3 Water. Contractor may obtain water from City designed facilities at rates set by the City for the water necessary in the street sweeping operation within City.

Alternatively, Contractor may make arrangements to obtain water from other water purveyors within the area at Contractor's sole cost and expense. To the extent possible, Contractor shall use reclaimed or recycled water.

11.4 Sweeper Speed. Contractor shall operate the sweepers at a speed of not more than six (6) miles per hour when sweeping or when the sweeper brooms are down, unless Contractor can demonstrate that the sweeper can operate efficiently and safely at a higher speed. City will use NPDES Permits requirements, Environmental Protection Agency information, generally accepted industry standards, and the sweeper manufacturer's recommendation on the speed of sweepers when considering speeds greater than six (6) miles per hour.

11.5 Width of Sweeper Path. Contractor shall sweep a path, with all brooms down, with a width of not less than eight (8) feet unless parked vehicles, structures, or other objects prohibit the safe sweeping of this path width. The path shall begin at the face of the curb, and include the flow line of the gutter. Unless blocked by parked cars or Containers the face of the curb and gutter shall always be included within the sweeper path. On those residential streets with no curb, the width of the sweeper path shall be not less than eight (8) feet measured from the edge of the pavement toward the center of the street.

11.6 Noise. To protect peace and quiet in service areas, the noise level generated by street sweepers during normal sweeping shall not exceed a single-event noise level of eighty-five (85) decibels (dBA) at a distance of twenty-five (25) feet from the street sweeper measured at an elevation of five (5) feet above ground level. Contractor shall, upon request, submit to City a certificate of vehicle noise level testing by an independent

Page 41 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2164
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. testing entity of any street sweepers used by Contractor in the City, which has been the subject of more than one noise complaint within any twelve-month period.

11.7 Global Positioning Systems (GPS). Contractor shall provide street sweeping vehicles with fully functioning on-board GPS systems.

11.8 Frequency and Day of Service.

11.8.1 Residential Streets. Contractor shall provide street sweeping service for each curb mile of residential streets in the City twice per month on a scheduled route basis. However, in those instances where the scheduled street sweeping service day falls on a holiday, Contractor shall provide street sweeping services on the following work day.

11.8.2 Major Arterial Streets. Contractor shall provide street sweeping service for each curb mile of major arterial streets in the City twice per month on a scheduled route basis. However, in those instances where the scheduled street sweeping service day falls on a holiday, Contractor shall provide street sweeping services on the following work day.

11.8.3 Downtown Area Streets. Contractor shall provide street sweeping service for each curb mile of the downtown area streets in the City twice per month on a scheduled route basis. However, in those instances where the scheduled street sweeping service day falls on a holiday, Contractor shall provide street sweeping services on the following work day.

11.8.4 City Owned Parks Parking Lots. Contractor shall provide street sweeping service for each City owned parks parking lots in the City once monthly on a scheduled route basis. Parks parking lots shall be swept on the same day of the month that routine sweeping of the adjoining residential neighborhood takes place. However, in those instances where the scheduled street sweeping service day falls on a holiday, Contractor shall provide street sweeping services on the following work day.

11.9 Hours of Service. Contractor shall provide street sweeping service on major arterial streets commencing no earlier than 4:00 a.m. and terminating no later than 7:00 p.m., Monday through Friday with no service on Saturday (except for holiday service as set forth in Section 6.5 of this Agreement in which case normal sweeping hours may be utilized or as set forth in this Section) or Sunday. The hours, days, or both of service may be extended due to extraordinary circumstances or conditions with the prior verbal consent of the City Representative. Sweeping in residential areas shall be coordinated with collection services to ensure that sweeping occurs after collection of all Carts has been completed on a specific street.

Page 42 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2165
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

11.10 Street Changes. City and Contractor acknowledge that during the term of this Agreement it may be necessary or desirable to add or delete City streets for which Contractor will provide street sweeping service. City will provide notification of changes to Contractor through the customer service system. Conditions which may cause the City Representative to order a street or an area to be bypassed temporarily include the following:

11.10.1 Construction or development on or along a street.

11.10.2 Pavement maintenance activities, including the chip seal program or the slurry seal program.

11.10.3 Inclement weather when running water is in the gutter or street such that sweeping is ineffective.

11.10.4 Special sweeping on alternative schedule.

11.10.5 Consistent non-compliance of citizens to remove parked cars during sweep days.

11.10.6 Other legitimate reasons that make sweeping impractical as determined by the City Representative.

11.11 Street Additions. As new streets are constructed and accepted by City, City may, at City's sole option, designate such streets as part of the service area for the purposes of street sweeping service. If the City Representative designates such streets as part of the service area (after final cap has been laid down) Contractor shall provide street sweeping service on such streets under the terms and conditions of this Agreement within fifteen (15) work days of receipt of notice from the City Representative to begin service.

11.12 Street Deletions. City may require some City streets to be temporarily or permanently removed from the list of scheduled streets for which Contractor provides street sweeping service under this Agreement. Contractor shall immediately cease providing street sweeping service to any City street upon receipt of notice from the City Representative to stop such service. When a City street has been temporarily removed from the list of scheduled streets, Contractor shall resume street sweeping service on such street in the next regularly scheduled cycle following notification from the City Representative that normal street conditions exist in order to resume service.

11.13 Revised Maps. Contractor shall revise the street sweeping service route maps to show the addition or deletion of City streets as provided above and shall provide such revised maps to the City Representative as requested. The maps shall be provided in a format that can be posted to the City website.

Page 43 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2166
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

11.14 Temporary Changes in Sweeping Schedule. In the event that the City Representative notifies Contractor not to sweep on a temporary basis, no liquidated damages will be assessed for failure to sweep such streets. The City Representative shall notify Contractor of the temporary suspension of service at least one day prior to the scheduled sweep, except that in the case where the reason for not performing service is because of inclement weather, the City Representative may notify Contractor at any time.

11.15 Parking Restrictions. The City shall also notify Contractor of any streets when permit parking may impact scheduled street sweeping service. Contractor may be required to adjust sweeping schedule to sweep prior to the parking permit hours' restrictions.

11.16 Signage. Should the City change street sweeping days, or add street sweeping signage Contractor shall be responsible for the cost and installation of any such modified or new signs as directed by the City.

11.17 Hazardous Waste. Contractor shall not be required to remove any Hazardous Waste from the street surface. If in the course of performing street sweeping services, any suspected Hazardous Wastes are encountered, Contractor shall immediately report the location to the San Bernardino Fire Department or any other responsible agency and to the City Representative.

11.18 Disposal of Sweeper Waste. Contractor shall transport and deliver all sweeper waste and debris collected as a result of performing street sweeping services to a facility as listed in Exhibit 3.

11.19 Spillage. During hauling, all sweep waste shall be contained, covered or enclosed so that leaking, spilling and blowing of the sweep waste is prevented.

Contractor shall be responsible for the immediate cleanup of any spillage caused by Contractor.

11.20 Street Sweeping Service Routes. Within ten ( 10) days of the Effective Date of this Agreement, City shall provide Contractor with a street sweeping database for use in developing routes and maps. Contractor shall develop the routes and maps using this data. Within thirty (30) days of receiving City provided route maps, Contractor shall submit to the City Representative, service area maps, precisely defining the sweeper routes for review and approval by the City Representative. The route maps shall include the days of the month sweeping shall occur, the portions of the City to be swept, and any special needs such as early starts, and late finishes. The City Representative may provide written comments on the preliminary maps to Contractor no later than ten {10) work days after receipt of the maps from Contractor. Contractor shall revise the maps to reflect such comments and return them to the City Representative within ten (10) work

Page 44 of 126 ends

Franchise Agreement Term April 1, 2016 - March 31, 2026 Packet Page. 2167
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. days after receipt of the City Representative's comments for City corroboration. Upon approval by the City Representative of the final sweeper route maps, Contractor shall develop and maintain the sweeping routes on a computerized mapping system that is compatible with City's mapping system to the extent possible. Street sweeping maps provided to the City shall be in a format that is suitable for posting to the City website.

11.21 Addition or Deletion of City Streets. Changes in maps due to addition and deletion of certain City streets shall be provided by City, and Contractor shall update the maps in Contractor's system every month. Such changes shall also be reflected in Contractor's printed route maps.

11.22 Service Route Changes. Contractor shall submit to the City Representative, in writing, any proposed route change (including maps thereof) not less than forty-five (45) calendar days prior to the proposed date of implementation. The City Representative may provide written comments to Contractor on such proposed change no later than ten (10) work days after receipt of the proposal from Contractor, and Contractor shall revise the routes to reflect such comments and return them to the City Representative within ten ( 10) work days of receipt of such comments, for City corroboration. Contractor shall not implement any route changes without the prior approval of the City Representative. ff the approved route change will change the day on which street sweeping service will occur, Contractor shall notify the affected Service Recipients of route changes not less than ten {10) work days before the proposed date of implementation in a manner approved by the City Representative.

11.23 Other City Street Sweeping Service. If during the Term of this Agreement, circumstances exist which require work associated with the street sweeping service program that are not specifically provided for in this Agreement, the City Representative may require Contractor to perform such other associated work (OAW). When Contractor performs OAW, the labor, materials, and equipment used in the performance of such work shall be subject to the prior written approval of the City Representative and charged at an amount agreed to between the City and Contractor. Examples of OAW that Contractor may be required to perform include: flood clean-up and, construction clean up services caused private contractors, City requested clean-up services and any contingency where sweeper and supporting sweeper equipment could assist in a particular instance.

11.24 Street Sweeping Quality of Work. The standards of performance, which Contractor is obligated to meet, are those good street sweeping practices, which leave the serviced area in a debris and dirt free condition.

Page 45 of 126 ends

Franchise Agreement Term April 1, 2016 - March 31, 2026 Packet Page. 2168
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

Section 12. Right-of-Way Clean-Up Service

12.1 Approach. Contractor will perform a proactive and comprehensive Right-of-Way Clean-Up Services at a high level of cleanliness at the gateway entry points of the City, Downtown and Civic Center District as well as other designated areas identified by the City.

12.1.1 Contractor's Right-of-Way Clean-Up Services will consist of seven (7) components:
a) Removal of litter, vegetation and accumulated roll-off from City gateways, alleys, major thoroughfares (including center islands and landscape medians), and the Downtown District;
b) Removal of memorials
c) Removal of waste generated at homeless/transient encampments; d) Shopping cart, and tire removal;
e) Storm channel and storm drain cleaning;
f) Metrolink clean-up; and,
g) Warrant abatements, vacant lot clean-ups and illegal dumping clean-ups.

12.2 Personnel. Contractor will deploy ten (10) maintenance workers and one (1) maintenance supervisor fulltime to perform Right-of-Way Clean-Up Services. The workweek of the Right-of-Way Clean-Up crewmembers will be assigned so as to provide coverage from 6:00 AM to 6:00 PM, Monday through Friday and 6:00 AM to 2:00 PM on Saturdays.

12.3 Equipment. At a minimum, Contractor will perform this work with no less than four (4) vehicles, each equipped with a two-way radio, a flashing arrow sign {FAS), ten ( 10) 28-inch orange cones with reflective bands, two (2) "Roadwork Ahead" signs, each equipped with a caution light, and necessary commercial hand tools, including but not limited to, clippers, hand saws, chainsaw, rakes, brooms, shovels, pitch forks, weed eaters and personal safety equipment consisting of reflective garments, protective chainsaw chaps, gloves, helmets and eye and ear protection.

12.4 City Work Orders. Contractor will respond to the City's written Work Orders for Right-of-Way Clean-Up Services within two (2) business days. Emergency notifications

Page 46 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2169
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. may be directed to Contractor's division office, which shall then dispatch Contractor's Right-of-Way Maintenance Supervisor to the scene for assessment and resolution.

12.5 Diversion. To the extent practical, Contractor will divert from disposal the materials collected.

12.6 Compensation. Work for components (a} through (f) will be performed at no additional cost to the City. Work for component (g) will be performed in response to a duly noticed code enforcement action with the expectation that the property owner will bear the cost of the service and that if payment is not made, the City will process the collection as a debt utilizing the County tax bill lien procedure available to it with compensation due to Contractor when collected by the City.

12.7 Scope of Services for Right-ofMWay Clean-Ups

12.7.1 Routine Patrol. Contractor's Right-of-Way maintenance crews will complete routine patrols removing all litter, vegetation and accumulated debris from:
a} City gateway entry points and the Downtown and Civic Center District, once weekly; and,
b) Assigned Right-of-Way routes for major thoroughfares, center islands and landscaped medians from the centerline of the roadway in both directions to ten (10) feet off of the road edge, once every twenty (20) business days; and
c) Any public alley from the centerline in both directions to the property line as determined by fences, landscaping, changes in surface material, or line of sight once every twenty (20} business days.

12.7.2 Removal of Memorials. Within two (2) business days following written notification from City, Contractor will remove and dispose of memorials, which shall include but not be limited to trash, bedding and personal effects.

12.7.3 Removal of Homeless Encampments. Subject to the following provisions, within two (2) business days following written notification from the City, Contractor will remove and dispose of materials from homeless or transient encampments, which shall include but not be limited to trash, bedding and personal effects. In each such case, City will make its Police force available to Contractor to coordinate the removal of such materials in a lawful manner and in a manner, which ensures the safety of Contactor's employees. City will be responsible for complying with all applicable laws related to the removal of such

Page 47 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2170
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. materials. In addition, City agrees to indemnify, defend, protect and hold harmless Contractor, its officers, employees and assigns from and against all losses, liabilities, claims, actual damages (including but not limited to special and consequential damages) and expenses {including but not limited to attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, Contractor or its officers, employees or agents arising from or attributable to any act or omission of City or Contractor or Contractor's officers, employees or agents in the removal of such materials, and/or any failure to fully comply with all applicable laws in connection with the same.

12.7.4 Shopping Cart Removal. Contractor's Right-of-Way Maintenance Crews shall remove shopping carts as a part of its routine patrol and upon the direction of the City. Contractor will transport shopping carts to its facility and will attempt to contact the retail outlet from which shopping carts bearing identification originated. Retail outlets will be given five (5) business days after notification to retrieve their shopping carts subject to a recovery costs of $25.00 per shopping cart. Unclaimed shopping carts will be recycled.

12.7.5 Storm Channels and Storm Drains. Storm channels identified in a listing to be provided by City will be cleaned once annually not later than September 1st Storm drains and drain easements identified in a listing to be provided and maintained by the City will be cleaned once annually between October 1st and December 1st.

12.7.6 Metrolink. The Contractor Right-of-Way maintenance crew will visit the Metrolink Station located at 1204 W. 3rd Street once each week to remove litter and accumulated debris from the grounds and parking lot. Twice annually, the Contractor Right-of-Way maintenance crew will patrol the Metrolink rail line within the City in coordination with Metrolink maintenance services.

12.7.7 Warrant Abatements, Vacant Lot Clean-Ups, Illegal Dumping Clean-Ups.

Within two (2) business days of receipt of a written order of the City's code enforcement officer delivered by the City's Contract Administrator, the Contractor Right-of-Way maintenance crew will respond to perform clean-up on private property as part of an enforcement action. Contractor will maintain a record of hours worked, personnel and equipment utilized, and disposal expenses and shall issue a bill to the City for the services performed. The City shall follow its usual collection procedures, which may include causing a lien to be assessed against the property on the County property tax bill. The City will then compensate Contractor when the City collects payment.

Page 48 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2171
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

12.8 Exceptions. Hazardous or toxic substances, motor vehicles, motor vehicle parts and objects larger than seven (7) feet in length or weighing more than two hundred (200) pounds are excluded from the Scope of Services for Right-of-Way Clean-Up.

12.9 Lease of Contractor's Vehicles. Contractor agrees that after the Service Commencement Date, the City may lease vehicle numbers 08223 and 739 as listed in Exhibit 9 for an amount of One Dollar ($1.00) per Agreement Year. In the event that City leases vehicle numbers 08223 and 739, the City shall be responsible for the associated insurance, vehicle licensing, maintenance and fueling costs of vehicle numbers 08223 and 739 during the time these vehicles are leased by the City. The terms and conditions of any vehicle lease agreement shall be negotiated between the City and Contractor.

Section 13. Collection Routes

13.1 Collection Routes. During the Transition Period, but before the Service Commencement Date, Contractor shall coordinate with City staff to define the existing collection routes. Any proposed changes to current routing shall be reviewed and approved by the City prior to any notification or implementation with the customers.

13.2 Subsequent Collection Route Changes. During the first four to six months, no changes will be made to residential service route days. The Contractor shall submit to the City, in writing, any proposed route change (including maps thereof) not less than sixty (60) calendar days prior to the proposed date of implementation, except for route changes agreed to by City and Contractor. To the extent possible, Contractor will provide the map data in a GIS format that is compatible with the format used by the City.

The Contractor shall not implement any route changes without the prior review of the City Representative. If the route change will change the collection day for a Service Recipient, the Contractor shall notify those Service Recipients in writing of route changes not less than ten {10) days before the proposed date of implementation.

13.3 Collection Route Audits. The City reserves the right to conduct audits of Contractor's collection routes. The Contractor shall cooperate with the City in connection therewith, including permitting City employees or agents, designated by the City Representative, to follow behind the collection vehicles in order to conduct the audits.

The Contractor shall have no responsibility or liability for the salary, wages, benefits or worker compensation claims of any person designated by the City Representative to conduct such audits.

Page 49 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2172
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

Section 14. Public Outreach Services

14.1 General. Contractor, at its own expense, shall prepare, submit and implement an annual Public Education and Outreach Plan that incorporates key feature of Contractor's Public Education Program (Exhibit 6). The proposed action plans must be submitted annually for City approval no later than sixty (60) days following the Service Commencement Date and each year thereafter. The program must include specific steps designed to increase diversion and participation, for the City's residents and businesses. A minimum of two (2) annual campaigns should target certain diverted materials or "problem" areas of the Contractor's service area where improvements can be maximized. Targets of outreach should be based on local trends and recycling patterns based on information obtained by both the City Representative and Contractor staff. The Contractor shall provide space in Contractor's public outreach materials, such as mailers, flyers and newsletters, for the City to include announcements, community information, articles, and photographs such that it does not impact the current mailing cost components.

14.2 Transition. Contractor will provide transition activities, during the Transition Period, including, at minimum, conducting eight (8) (one in each ward and one general at a location to be determined) community workshops and meetings outlining the transition to the services provided by the Contractor's services and how billing will be done. Contractor shall also provide information on proper how to participate in recycling and organics services, and where to take HHW materials for proper recycling or disposal, how to arrange for Bulky Waste Collection, and the days and hours that collection and Street Sweeping will occur.

14.3 Recycling Coordination Support. Contractor will provide staff resources to serve as recycling coordination support to promote Contractor's public education, recycling and waste diversion, waste prevention, and grant application and coordination programs provided to the City.

14.4 Annual Collection Service Notice. Each Agreement Year the Contractor shall publish and distribute notices to all Service Units regarding the types of services available. The notice can be in the form of a separate mailer, one of the quarterly newsletters distributed by Contractor, or as a billing insert. To the extent appropriate, based on the category of customer receiving the notice, it shall contain at a minimum:
definitions of the materials to be collected, procedures for setting out the materials, collection and disposal options for unacceptable materials such as Hazardous Waste, and the Contractor customer service phone number and website address. The notice shall be provided in English, and in Spanish if requested by City, and shall be distributed by the Contractor each Year.

Page 50 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2173
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

14.5 Additional Public Outreach Programs and Services. Contractor shall provide additional Public Outreach Programs and Services as requested by City at a price to be mutually agreed upon between the Contractor and the City within the City Manager's contract signing authority. In the event the Contractor and the City cannot reach a mutually agreed upon price for the requested service or program, City shall have the right to procure the service of other vendors or contractors to provide the requested service.

14.6 News Media Relations. Contractor shall notify the City Representative by Fax, e-mail or phone of all requests for news media interviews related to the collection service program within twenty-four (24) hours of Contractor's receipt of the request Before responding to any inquiries involving controversial issues or any issues likely to affect participation or Service Recipient perception of services, Contractor will discuss Contractor's proposed response with the City Representative.

14.6.1 Copies of draft news releases or proposed trade journal articles shall be submitted to City for prior review and approval at least five (5) work days in advance of release, except where Contractor is required by any law or regulation to submit materials to any regulatory agency in a shorter period of time, in which case Contractor shall submit such materials to City simultaneously with Contractor's submittal to such regulatory agency.

14.6.2 Copies of articles resulting from media interviews or news releases shall be provided to the City within five (5) Business Days after publication.

14.7 Website. Contractor shall develop and maintain a state-of-the-art website accessible to the public, dedicated to services provided in the City that is accessible by the public. The web site shall include answers to frequently asked questions, list of Recyclable Materials and Organic Waste, and other related topics. The Contractor's website shall provide the public the abi!ity to e-mail complaints to Contractor and request services or service changes. Contractor's website shall also promote reuse and recycling, graphics and statistic illustrating the City progress toward meeting City's diversion goals, other City's environmental programs, and other materials as requested by the City. The City shall review and approve Contractor's website as it relates to the City of San Bernardino's page(s).

14.8 Waste Generation and Characterization Studies. Contractor acknowledges that City must perform Solid Waste generation and characterization studies periodically to comply with AB 939 requirements. Contractor agrees to participate and cooperate with City and its agents and to perform studies and data collection exercises, as needed, to determine weights, volumes and composition of Solid Waste generated, disposed, transformed, diverted or otherwise processed to comply with AB 939.

Page 51 of 126 ends

Franchise Agreement Term April 1, 2016 - March 31, 2026 Packet Page. 2174
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

Section 15. Collection Equipment

15.1 General. Contractor warrants that it shall provide adequate numbers of vehicles and equipment for the collection, transportation, recycling and disposal services for which it is responsible under this Agreement. All collection vehicles used by Contractor in the performance of services under this Agreement shall be of a high quality. At the start of this Agreement, all collection vehicles utilized by Contractor pursuant to this Agreement shall be those outlined below in conjunction with vehicles owned by the Contractor.

15.2 Use of Purchased City Equipment. In accordance with this Agreement, Contractor shall purchase the City's personal property used as listed in Exhibit 9.

15.3 Vehicle Transition Plan. Contractor shall re-brand al! previously owned City of San Bernardino vehicles as outlined in the Transition Plan attached in Exhibit 5.

15.4 Temporary Access to and Use of City Corporation Yard. Contractor contemplates requiring access to and use of City's Corporate Yard for up to ninety (90) days after the Service Commencement Date for temporary storage of Containers and collection vehicles. City and Contractor will separately meet and confer with regard to the scope and terms of conditions of such temporary use after the Effective Date of the Agreement, but City will not unreasonably refuse such access and use provided Contractor does not undertake any maintenance, repair, cleaning, or fueling of any vehicles, nor refurbishment or maintenance of Containers, does not store nor dispose of any Solid Waste, Hazardous Waste or Universal Waste at the Corporate Yard, maintains insurance acceptable to City, and repairs any damages caused by Contractor's use.

15.5 Long Term Use of City Corporation Yard. In the event that City wishes to provide long-term use or purchase of the City's Corporate Yard to Contractor, any such agreement will be done separately from this Agreement.

15.6 Noise. To protect peace and quiet in service areas, the noise level generated by compaction vehicles using compaction mechanisms during the stationary compaction process shall not exceed a single-event noise level of eighty-five (85) decibels (dBA) at a distance of twenty-five (25) feet from the collection vehicle measured at an elevation of five (5) feet above ground level. Contractor shall, upon request, submit to City a certificate of vehicle noise level testing by an independent testing entity of any collection vehicles used by Contractor in the City, which has been the subject of more than one noise complaint within any twelve-month period.

15.7 Compliance, Contractor warrants that it will comply with all measures and procedures promulgated by all agencies with jurisdiction over the safe and sanitary operation of all its equipment.

Page 52 of 126 ends

Franchise Agreement Term April 1, 2016 - March 31, 2026 Packet Page. 2175
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

15.8 Private Streets, Alleys and Parking Lots. Contractor agrees to use its best efforts to prevent damage to private streets, alleys and parking lots over which its collection equipment may be operated, to obtain all required approvals for operation of its collection vehicles on private streets, alleys and parking lots.

15.9 Vehicle Registration, Licensing and Inspection. Upon City request during the term of this Agreement, Contractor shall submit documentation to the City Representative to verify that each of the Contractor's collection vehicles is in compliance with all registration, licensing and inspection requirements of the California Highway Patrol, the California Department of Motor Vehicles, and any other applicable laws or regulations. Contractor shall not use any vehicle to perform collection service that is not in compliance with applicable registration, licensing and inspection requirements. Each vehicle shall comply, at all times, with all applicable statutes, laws or ordinances of any public agency. Collection vehicles will be subject to routine inspections by the California Highway Patrol and will be subject to bi-annual inspections. Certificates for said inspection shall be filed with the City upon request.

15.1 O Clean Air Vehicles. During the term of this Agreement, to the extent required by law, Contractor shall provide its collection vehicles to be in full compliance with local, State and federal clean air requirements that were adopted including, but not limited to, California Air Resources Board and South Coast Air Quality Management District.

15.11 Safety Equipment. All collection equipment used by Contractor shall have appropriate safety markings including, but not limited to, highway lighting, flashing and warning lights, clearance lights, and warning flags. All such safety markings shall be in accordance with the requirements of the California Vehicle Code, as may be amended from time to time. All collection vehicles shall be equipped with audible back-up warning devices.

15.12 Vehicle Signage and Painting. Collection vehicles shall have with the Contractor's name, Contractor's customer service telephone number, and the number of the vehicle. No advertising shall be permitted other than the name of the Contractor except promotional advertisement of the Recyclable Materials and Organic Waste programs. Contractor shall repaint all vehicles (including vehicles striping) during the term of this Agreement on a frequency as necessary to maintain a positive public image as reasonably determined by the City Representative.

15.13 Vehicle Maintenance. Contractor shall maintain collection vehicles in a clean condition and in good repair at all times and ensure that no collected materials, oil, grease, or other substances will blow, fall out, escape or leak out of the vehicle, with the exceptions of vehicle emission. All parts and systems of the collection vehicles shall

Page 53 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2176
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. operate properly and be maintained in a condition satisfactory to City. Contractor shall wash all collection vehicles at least once a week.

15.14 Maintenance Log. Contractor shall maintain a maintenance log for each collection vehicles. The log shall at all times be accessible to City upon request of City Representative, and shall show, at a minimum, each vehicle's Contractor-assigned identification number, dates of performance of routine maintenance, dates of performance of any additional maintenance, and description of additional maintenance performed.

15.15 Equipment Inventory. Upon City's request, Contractor shall provide to City an inventory of collection vehicles and major equipment used by Contractor for collection or transportation and performance of services under this Agreement. The inventory shall indicate each collection vehicle by Contractor assigned identification number, OMV license number, the age of the chassis, type of fuel used, the type and capacity of each vehicle, the number of vehicles by type, and the maintenance status. Upon City request, Contractor shall submit to the City Representative, either by Fax or e-mail, an updated inventory annually to the City or more often at the request of the City Representative.

Each vehicle inventory shall be accompanied by a certification signed by Contractor that all colfection vehicles meet the requirements of this Agreement.

15.16 Reserve Equipment. The Contractor shall have available to it, at a!I times, reserve collection equipment which can be put into service and operation in the event the disabled vehicle cannot return to service that day. Such reserve equipment shall correspond in size and capacity to the equipment used by the Contractor to perform the contractual duties.

15.17 Containers.

15.17 .1 Carts. Carts may be new, existing or refurbished as of the Service Commencement Date, and are to be hot-stamped, embossed, or laminated, and in-molded with the type of materials to be collected {i.e., Solid Waste, Organic Waste, Recyclable Materials). In-molding on the Carts shall be on the lids.

Contractor's name and/or logo shall be included on the body of Carts. Labeling and graphics of the Carts shall be approved by the City.

15.17.2 Bins. Bins may be new, existing, or refurbished at the start of the Agreement. Bins are to be painted and be labeled with either the type of materials to be collected (i.e., Solid Waste, Organic Waste, Recyclable Materials) or the type of material prohibited from being disposed in the Bin.

15.17.3 Roll-offs. Roll-off containers may be used, provided they are newly painted, properly marked and in good working order. The City retains the right to

Page 54 of 126 ends

Franchise Agreement Term April 1, 2016-March 31, 2026
Packet Page. 2177
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. inspect any such used Roll-off and direct the Contractor to replace such a used Roll-off if it is deemed to be not acceptable.

15.17 .4 Purchase and Distribution of Carts and Bins. The Contractor shall be responsible for the purchase and distribution of fully assembled and functional Carts and Bins to Service Units in the Service Area throughout the term of this agreement. Contractor shall also distribute Carts and Bins to new Service Units that are added to Contractor's service area during the Term of this Agreement as required. The delivery of containers shall be completed within five (5) Work Days.

15.17.5 Replacement of Carts and Bins. Contractor's employees shall take care to prevent damage to Carts or Bins by unnecessary rough treatment.

However, any Cart or Bin damaged by the Contractor shall be replaced by the Contractor, at the Contractor's expense, within five (5) Work Days at no cost or inconvenience to the Service Recipient.
a) Upon notification to the Contractor by the City or a Service Recipient that the Service Recipient's Cart(s) and Bin(s) have been stolen or damaged beyond repair through no fault of the Contractor, the Contractor shall deliver a replacement Cart(s) and Bin(s) to such Service Recipient within five (5) Work Days. The Contractor shall maintain records documenting all Cart and Bin replacements occurring on a monthly basis.
b) Where such Cart is lost, stolen or damaged beyond repair through no fault of the Contractor, each SFD Service Unit shall be entitled to the replacement of one (1) lost, destroyed, or stolen Solid Waste Cart, one (1) lost, destroyed, or stolen Recyclable Materials Cart, and one ( 1) lost, destroyed, or stolen Organic Waste Cart, during each of the ten (10) Agreement Years at no cost to the Service Unit.
c) Where such Cart or Bin is lost, stolen or damaged beyond repair through no fault of the Contractor, each MFD Service Unit shall be entitled to the replacement of one ( 1 ) lost, destroyed, or stolen Solid Waste Cart or Bin, one (1) lost, destroyed, or stolen Recyclable Materials Cart or Bin, and one (1} lost, destroyed, or stolen Organic Waste Cart or Bin during each of the ten (10) Agreement Years at no cost to the Service Unit.

Page 55 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2178
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing. and Disposal Services With Burrtec Waste Industries, Inc. d) Where such Cart or Bin is lost, stolen or damaged beyond repair through no fault of the Contractor, each Commercial and City Service Unit shall be entitled to the replacement of one (1) lost, destroyed, or stolen Solid Waste Cart or Bin, one {1) lost, destroyed, or stolen Recyclable Materials Cart or Bin, and one (1) lost, destroyed, or stolen Organic Waste Cart or Bin during each of the ten (10) Agreement Years at no cost to the Service Unit. e) Where such Bin or Cart replacement occurs through no fault of the Contractor, Contractor shall be compensated for the cost of those replacements in excess of the requirements set forth above in accordance with the "Cart or Bin" Service Rate, as appropriate, as initially set by the City or as may be adjusted by the City as provided under the terms of this Agreement.

15.17.6 Repair of Carts and Bins. Contractor shall be responsible for repair of Carts in the areas to include but not be limited to, hinged lids, wheels and axles.

Within five (5) Work Days of notification by the City or a Service Recipient of the need for such repairs, the Contractor shall repair the Cart or Bin or if necessary, remove the Cart or Bin for repairs and deliver a replacement Cart or Bin to the Service Recipient.

15.17.7 Cart or Bin Exchange. Upon notification to the Contractor by the City or a Service Recipient that a change in the size or number of Carts or Bins is required, the Contractor shall deliver such Carts or Bins to such Service Recipient within seven calendar days to allow for the exchange to occur on the regular scheduled collection day. At no charge, each SFD, MFD, Commercial, and City Service Unit shall be entitled to receive one (1} Solid Waste Cart, Recyclable Materials, or Organic Waste Carts exchange, per Agreement Year during the term of this Agreement. Contractor shall be compensated for the cost exchanges in excess of one (1) per Agreement year, in accordance with the "Cart or Bin Exchange" service rate as Set forth in Exhibit 1.

15.17.8 Ownership of Carts, Bins and Roll-Off Containers. Ownership of Carts, Bins and Roll-Off Containers on the Service Commencement Date, and Carts, Bins and Roll-Off Containers distributed by the Contractor after April 1, 2016 shall rest with the Contractor. However, in the case of the termination of the Agreement prior to the expiration of the Term, or optional Term Extension, the City shall have the right to take possession of the Carts, Bins and Roll-Off Containers and shall retain such possession until satisfactory arrangements can be made to provide collection services using other equipment. Such time of

Page 56 of 126 ends

Franchise Agreement Term April 1, 2016 - March 31, 2026 Packet Page. 2179
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. possession shall be limited to twelve months, and no monies will be owed to the Contractor from the City for the use of the equipment. Upon the receipt of written notice from the City, Contractor shall submit to the City Representative an inventory of Carts, Bins and Roll-Off Containers, including their locations.

Section 16. Hiring of Displaced City Employees and Local Recruiting

16.1 CONTACTOR shall offer employment to all "qualified" Displaced City Employees and shall hire such Displaced City Employees if they timely accept the offer of employment. An applicant is deemed "qualified" where he or she has undergone and passed the Contractor's required standard pre-employment physical, background check and drug screening. Displaced City Employees shall be hired in accordance the following and the provisions of Exhibit 10.

16.1.1 Contractor shall maintain all Displaced City Employees at the same level of pay as was paid to the displaced employee by the City as of the Service Commencement Date.

16.1.2 Displaced City Employees will be eligible for annual reviews.

16.1.3 In determining the rate of accrual for paid vacation and sick days for Displaced City Employees, Contractor agrees to apply each Displaced City Employee's years of service with City as if they were years of service with Contractor.

16.1.4 Contractor shall pay a total of Five Hundred Thousand Dollars ($500,000) as a hiring bonus distributed to Displaced City Employees who are hired by the Contractor within 30 days of Service Commencement Date. The allocation method for distributing the hiring bonus paid to Displaced City Employees will be determined by the City.

16.1.5 Contractor shall not discharge any Displaced City Employee hired by Contractor for at least one hundred eighty (180) days after the Service Commencement Date, except "for cause" as that term is defined in the employee personnel policies of Contractor effective as of the Effective Date of this Agreement. Thereafter, the continued employment of Displaced City Employees shall be under the terms and conditions established for all Contractor's workers in the particular classification.

16.2 Local Recruiting. Contractor's Human Resources Department will attempt to fill job openings with City residents through the following means:

Page 57 of 126 ends

Franchise Agreement Term April 1, 2016-March 31, 2026
Packet Page. 2180
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

16.2.1 All Contractor employees residing in the City will be advised of Contractor's job openings in advance of general postings and announcements and will be encouraged to refer friends and family residing in the City;

16.2.2 City publications will be included in any media job postings;

16.2.3 For special recruitments, Contractor will utilize a job fair;

16.2.4 Flyers and promotions for events sponsored by Contractor within the City will carry a message inviting residents to consider employment with Contractor; and,

16.2.5 When two or more equally qualified job candidates are considered for employment with Contractor in the City, preference wi!I be shown to the candidate residing in the City.

Section 17. Privacy
17 .1 General. Contractor shall observe and protect the rights of privacy of Service Recipients. Information identifying individual Service Recipients, or the composition or contents of a Service Recipient's Solid Waste, Recyclable Materials, or Organic Waste shall not be revealed to any person, governmental unit, private agency or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the Service Recipient. This provision shall not be construed to preclude Contractor from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by the Act, or preparing and distributing public awareness materials to Service Recipients.

17.2 Mailing Lists. Contractor shall not market or distribute mailing lists with the names and addresses of Service Recipients.

17.3 Privacy Rights Cumulative. The rights accorded Service Recipients pursuant to this Section shall be in addition to any other privacy rights accorded Service Recipients pursuant to federal or state law.

Section 18. Service Exceptions; Hazardous Waste

18.1 Hazardous Waste Inspection, Diversion and Reporting. Contractor reserves the right and has the duty under law, to inspect Solid Waste put out for collection and to reject Solid Waste observed to be contaminated with Hazardous Waste. Should Contractor find or observe reportable quantities of Hazardous Waste put out for collection with Solid Waste, Contractor shall notify all agencies with jurisdiction, including the California Department of Toxic Substances Control and Local Emergency Response Providers and, if appropriate, the National Response Center, of reportable quantities of

Page 58 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2181
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

Hazardous Waste, found or observed in Solid Waste observed or collected anywhere within the City. In addition to other required notifications, if Contractor observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Wastes unlawfully disposed of or released on City property, including storm drains, streets or other public rights of way, Contractor shall notify the City Manager, or the City Manager's designee immediately.

Section 19. Customer Service

19.1 Office Hours. Contractor must maintain an office accessible by a local or toll free telephone number each Business Day.

19.2 Service Recipient Calls. At Contractor's expense, its regular telephone numbers shall be listed in San Bernardino-area telephone directories under Contractor's name. Contractor shall maintain a telephone answering system capable of accepting at least ten (10) incoming calls at once.

19.3 Emergency I After Hours Telephone Number.

19.3.1 For City. Contractor will provide cell phone numbers and/or other required contact information to City Staff to be used in case of an emergency.

These emergency numbers can be used outside normal business hours and will be kept confidential.

19.3.2 For Service Recipients. Contractor shall have an after-hours message center where customers can leave messages. Contractor will also provide and maintain a website where customers may leave messages by e-mail. Contractor will retrieve all voice and email messages the following business day.

19.4 Multilingual. Contractor shall at all times maintain the capability of responding to all telephone calls in English, Spanish and such other languages City reasonably determines to be necessary for communication with service recipients.

19.5 Customer Service and Complaint Logs. Contractor shall update customer records with any inquiries, service requests and complaints into a customer data base which shall be maintained in a manner that it is reasonably available for inspection and review by City upon request. All calls shall be logged in the account record. Contractor shall note the name and address of the complainant, the date and time of the complaint, the nature of the complaint, the name of the Contractor's employee taking the complaint, and the nature and date of Contractor's resolution of the complaint. Contractor shall inform all Service Recipients that all complaints shall be directed to Contractor. The Complaint Log shall be maintained on a computerized data base format. The Complaint Log shall be available for inspection and review by City upon request. Contractor shall

Page 59 of 126 ends

Franchise Agreement Term April 1t 2016- March 31, 2026
Packet Page. 2182
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. provide a summary of the Complaint Log to City monthly during the first (1 st) year of service and then quarterly thereafter for the duration of the Term.

19.6 Response to Calls. Contractor will use its best efforts to answer all incoming calls within five (5) rings. Any call "on-hold" will be placed in a queue and answered in the order in which it was received.

19.7 Service Responses. City and Contractor agree that the protection of public health, safety and we!l-being require that service complaints be acted on promptly.

Contractor shall be responsible for the prompt and courteous attention to, and prompt and reasonable resolution of, all Service Recipient complaints.

19.7.1 Missed Pick-Ups. In the case of a complaint of a missed collection, Contractor shall make the collection no later than the following collection day

19.7.2 Other Complaints. Contractor will respond to all complaints from Service Recipients, other than missed-pickups, within one (1) Working Day of receiving the complaint.

Section 20. Ownership of Solid Waste, Recyclable Materials, Organic Waste and Construction and Demolition Materials
Ownership of Solid Waste, Organic Waste, and Recyclable Materials shall pass, by operation of law, to Contractor at such time as said materials are placed for collection in Containers for collection by Contractor. Ownership and the right to possession of Solid Waste, Recyclable Material, Organic Waste and Construction and Demolition Materials placed for collection shall transfer directly from the Service Recipient to Contractor, by operation of law and not by virtue of this Agreement. At no time does the City obtain any right of ownership or possession of Solid Waste or any Hazardous Waste illicitly placed for collection in a Solid Waste Container, and nothing in this Agreement shall be construed as giving rise to any inference that City has any such rights.

Section 21. Customer Rates and Billing Procedures

21.1 Rates for Service.

21.1.1 Maximum Permitted Service Rates. Contractor shall not charge rates ( or additional charges, fees, or penalties) in excess of the Maximum Permitted Service Rates specified on Exhibit 1 attached to this Agreement.

21.1.2 City Service Units. Contractor shall not charge or bill City for services to City Service Units, Street Sweeping, or abandoned waste Collection and Rightof-Way Clean-Ups.

Page 60 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2183
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc.

21.1.3 Adiustments To Maximum Permitted Service Rates. The adjustments to Maximum Permissible Customer Rates shall be calculated as follows:
a) Annual Adjustment. July 1, 2017, and each July 1st thereafter, Contractor may increase the Maximum Permitted Service Rates for all Service Recipients by CPI.

Any City Approved Host Fees shall be considered as passthrough cost and added to the CPI adjustment to the Maximum Permitted Service Rates.

Contractor shall send the proposed rate adjustment calculations and full rate schedule to the City Manager for review by March 1st of each Agreement year, or no adjustment shall be made for that Agreement Year. The City Manager shall respond to Contactor within thirty days (30) after receipt of Contractor's proposed changes to the Maximum Permitted Service Rates if the proposed percentage increase is calculated correctly in accordance with this Agreement. If the proposed Maximum Permitted Service Rates are correctly calculated, the new rates will be implemented by Contractor beginning July 1st of the Agreement Year.

If the City Manager finds that Contractor's proposed changes to the Maximum Permitted Service Rates are not correctly
calculated, Contactor shall have thirty days (30) days to correct and resubmit proposed changes to the Maximum Permitted
Service Rates. If Contractor does not resubmit corrected Maximum Permitted Service Rates within 30 days of notice by the City Manager, no adjustment to the rates shall be made. b) Maximum Annual Increase. In no event may the increase in Maximum Permissible Service Rates increase by more than five percent (5%) during any July 1st - June 30th period regardless of the amount increase in the CPI. If, however, the changes to the CPI result in an increase above five percent (5%) or a negative number, any amount above five percent (5%) or below zero percent (0%), shall be carried forward or applied in subsequent years.
c) Adjustment Due to Change In Law. As used herein, "Change in Law" means the enactment, issuance, adoption, repeal,

Page 61 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2184
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. amendment or modification of any federal, state or local statute, ordinance or regulation, or a regulatory agency or other administrative agency interpreting a regulation or statute, or a judicial decision interpreting a law, statute, ordinance or regulation, in a manner different than relied upon by municipalities and the solid waste and collection industry. Contractor may adjust the Maximum Permissible Service Rates by an amount equal to the increase or incremental increase, as the case may be, in the costs (i.e. on any direct or indirect cost, whether fixed or variable) of Contractor's provision of services under this Agreement that are caused by the Change in Law and that have been demonstrated to the City Council.
d) The City Council shall not unreasonably refuse to approve rate adjustments, nor shall the City Council unreasonably delay review and approve of any such adjustment.

21.1.4 Rounding. Calculation of rates and determination of any annual adjustments shall be made only in units of one cent ($0.01) and shall not result in a decrease to the rates currently in effect. Fractions of less than one cent ($0.01) shall not be considered in making adjustments. The indices shall be truncated at four (4} decimal places for the adjustment calculations.

21.2 Contractor Billing. The Contractor shall be solely responsible for the billing and collection of payments for all Integrated Solid Waste Collection, Processing and Disposal Services to Service Recipients, except as provided in the Transition Plan. The City's Representative may review the initial format for all Service Recipient bills.

21.3 Partial Month Service. If, during a month, a Service Unit is added to or deleted from Contractor's service area, the Contractor's billing shall be pro-rated based on the daily rate (monthly rate multiplied by 12 months and then divided by 365 days}. The daily rate is assessed for the actual number of days the account was serviced.

21.4 Production of Invoices for Service Units Utilizing Cart Service. The Contractor shall produce an invoice for Service Recipients utilizing Carts received under this Agreement bi-monthly in arrears. The Contractor's invoice shall be remitted to the Service Recipient no earlier than the last day of the 2nd month of the period for which service is being billed. The payment due date will be the 15th day of the month following the close of the billing period. Contractor shall provide notice to affected customers of a proposed rate increase one full billing cycle in advance of implementing the rate increase. Where the exact amount of the increase proposed is not known a billing cycle in advance, Contractor may satisfy this requirement by referring to a measure by which

Page 62 of 126 ends

Franchise Agreement Term April 1, 2016-March 31, 2026
Packet Page. 2185
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. the rate will increase (e.g. by reference to the CPI or by reference to an increase caused by a Change in Law).

21.5 Production of Invoices for Service Units Utilizing Bin Service. The Contractor shall produce an invoice for Service Recipients utilizing Bins received under this Agreement in arrears but no fewer than twelve (12) times per year. The Contractor may invoice the Service Recipient no earlier than the last day of the month for which service is being billed. The payment due date will be the 15th day of the month following the close of the billing period.

21.6 Production of Invoices for Roll-off Collection Service. The Contractor shall produce an invoice for Roll-off collection services received under this Agreement in arrears for services during the prior month. The Contractor may invoice the Service Recipient no earlier than the last day of the month for which service is being billed. The payment due date will be the 15th day of the month following the close of the billing period.

21.7 Production of Invoices for Temporary Bin or Roll-off Collection Service.

The Contractor may bill for temporary Bin or Roll-off Collection Services in advance on a Cash on Delivery basis (COD), or another billing arrangement mutually agreed on between Contractor and Service Recipient requesting Temporary Bin or Roll-off Collection Service. Contractor may also bill for collected tonnage in arrears based on the actual weight of materials by material type.

21.8 City Provided Billing Inserts. City may provide educational and other material to Contractor for inclusion in the invoices mailed by Contractor to SFD, MFD and Commercial Service Units for collection services. Contractor shall not charge the City for the inclusion of additional educational or other materials in the invoices provided the inclusion of such City requested materials does not exceed the cost for standard postage for any mailing. City shal! be responsible for the additional postage costs if applicable.

21.9 Methods of Payment. Contractor shall provide the means for Service Recipients to pay bills through the following methods: cash, checks, credit cards, internet payment service or automatic withdrawal from bank account. On-line (E-Pay) bill methods shall be password protected and comply with federal regulations protecting the privacy of customer credit information. Contractor shall provide evidence of such security certifications and advise the City of Contractor's security measures implemented for online payment.

21.1 0 Remitting Receivables. Contractor shall remit to City any payments received from service units for services provided by City prior to the Service Commencement Date, and City shall remit to Contractor any payments received from service units for

Page 63 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2186
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. services provided by Contractor after the Service Commencement Date. Such remittance shall be made within fifteen ( 15) days of receipt of payment.

21.11 Delinquent Service Accounts.

21.11.1 Residential Accounts. Contractor agrees not to discontinue service to residential SFD and MFD (5 or fewer units) cart customers. Contractor may recover any and all payments in accordance with Section 21.11.3 below.

21.11.2 Commercial Accounts. Contractor agrees to not permanently discontinue service to a commercial or Roll-off customer for non-payment.

Contractor may temporarily suspend services for maximum of fourteen calendar days if customer's account has been delinquent in payment for a period of at least forty-five ( 45) days. If Contractor temporarily suspends service to any nonpaying person, corporation or entity, such person, corporation, or entity as a condition precedent to re-establishment of regular service, shall comply fully with all of the then billing policies and practices of the Contractor, including, but not limited to, requirement of payment by cash or cash equivalent, prepayment of one full billing cycle, a security deposit, payment of all costs of collection of monies owed to Contractor, and payment of a reinstatement fee. In addition, delinquent accounts shall be charged a 1.5% monthly late fee. If the Contractor temporarily suspends service for non-payment of the customer's account, Contractor shall, upon City request, give written notice to the City Manager of any suspension of service for nonpayment of account, giving the name and address of the customer(s). If payment is not received after the temporary suspension of services, Contractor shall resume regular services and shall be entitled to recover any and all payments in accordance with Section 21.11.3 below.

21.11.3 Non-Payment. Customers (Property owners or tenants) who have not remitted required payment within forty-five (45) days after the date of billing shall be notified by Contractor on forms that contain a statement that if payment is not received within fifteen (15) days from the date of the notice, the delinquent and unpaid charges, including a 10% penalty and 1.5% monthly interest, as well as all direct and indirect costs incurred by City and Contractor may be placed on the San Bernardino County annual secured property tax rolls and that any amount owing would then become a lien on the property. Contractor shall provide such notice to customers as is legally required, including notification via U.S. Mail to the current billing address on file. The City agrees to annually levy delinquent charges for the prior calendar year for collection with property taxes. The parties intend that while the City will elect in accordance with State Law to place delinquent and unpaid solid waste assessments on the secured property tax rolls, Contractor understands and agrees that the City has no obligation to

Page 64 of 126 ends

Franchise Agreement Term April 1, 2016- March 31, 2026
Packet Page. 2187
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. foreclose on any tax bill. Contractor shall pay all fees charged by San Bernardino County in connection with the establishment of this secured tax roll billing and collection program and shall pay all direct and indirect costs incurred by the City in processing delinquent and unpaid assessments through the secured property tax rofl procedure.

Section 22. Contractor's Books and Records; Audits

22.1 Contractor shall maintain all records relating to the services provided hereunder, including, but not limited to, all costs of collection and disposal, customer lists, billing records, maps, records substantiating the information furnished by Contractor to City pursuant to Section 24 of this Agreement and Service Recipient complaints for the period during which collection services are to be provided pursuant to this Agreement and an additional period of not less than three years, or any longer period required by law. The City shall have the right, upon fifteen business days advance notice, to inspect, copy and audit all records relating to this Agreement, including, but not limited to, Service Recipient lists, billing records, maps, and customer complaints. Such records shall be made available to City at Contractor's regular place of business, or other place agreed to by City and Contractor, within the County of San Bernardino.

22.2 Should any examination or audit of Contractor records reveal an underpayment of any payment required to be paid to City under this Agreement, the amount of such underpayment, plus interest at the maximum rate permitted under California law, shall become due and payable to City not later than thirty days after written notice of such underpayment is provided to Contractor by City. Should an underpayment of more than five percent (5%) be discovered, Contractor shall bear the entire cost of the examination or audit.

Section 23. Integrated Waste Management Act; Reporting Requirements

23.1 Contractor-City Cooperation. Contractor shall cooperate with City in Solid Waste Disposal Characterization Studies and waste stream audits and shall implement measures adequate to achieve the diversion goals set forth in this Agreement. (See also Section 5, and Section 30.3 below.) During the Term of this Agreement, Contractor, at no expense to City, shall submit to City all relevant information and reports required to meet the reporting obligations imposed by CalRecycle under the Act, as amended.

Contractor agrees to submit such reports and information by email or on computer discs, in a format acceptable to City at no additional charge, if requested by City.

23.2 Change in AB 939, RCRA, CERCLA and Related Laws. This Agreement is part of City's efforts to comply with the provisions of the Act as it may be amended and

Page 65 of 126 ends

Franchise Agreement Term April 1, 2016-March 31, 2026
Packet Page. 2188
City of San Bernardino Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services With Burrtec Waste Industries, Inc. as implemented by the regulations of Ca!Recycle, or its successor agency, as they may be amended, and the City's Source Reduction and Recycling Component, as it may be amended. In the event that the Act or other state or federal laws (including, but not limited to CERCLA and RCRA) or regulations enacted or amended after this Agreement has been executed, prevent or preclude compliance with one or more provisions of this Agreement, or significantly increase or decrease Contractor costs, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such state or federal laws or regulations.

23.3 Changes in Other Laws. In the case of changes ln the laws other than amendments to the Act, which increase or decrease the cost of Contractor's service, Contractor or City may seek a rate increase or decrease to reflect the increase or decrease in costs directly attributable to the amended or newly enacted provision of law or regulations, specifying, in writing, the law to which the additional costs or savlngs are attributed, and how they would result in increased costs. City Council must approve any changes in the Maximum Permitted Service Rates resulting from any Change in Law.

Section 24. Activities and Financial Reports; Adverse Information

24.1 Reports. Contractor, at no additional expense, shall submit to the City such information or reports in such forms and at such times as the City reasonably may request or require, including, but not limited to the following, submitted not less often than as indicated:

24.1.1 Format and Type of Reports. Reports shall be submitted to City, transmitted in a format acceptable to City, as an attachment to e~mail. The following reports shall be submitted to City Monthly until the first anniversary of the Service Commencement Date and then Quarterly thereafter. Reports shall include the following:
a) Summary of Contractor Payments to the City. A summary of all payments made to the City under this Agreement for the reporting period.
b) Summary of Contractor Gross Receipts Received. A summary of all Contractor Gross Receipts received for services provided under the terms of this Agreement broken down by Residential, Commercial and Construction and Demolition Services.
c) Disposal and Diversion Summary. A summary table showing the total tonnage of Solid Waste, Recyclable Materials, Organic Waste, Construction and Demolition Materials, Bulky Waste

Page 66 of 126 ends

Mayor and City CouncilJune 17, 2026

Mayor and City Council
June 17, 2026