First Amendment to Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services By and Between City of San Bernardino and Burrtec Waste Industries, Inc.
First Amendment
to
Exclusive Franchise Agreement
for
Integrated Solid Waste Collection, Processing, and Disposal Services By and Between
THE CITY OF SAN BERNARDINO
and
BURRTEC WASTE INDUSTRIES, INC.
Approved on: January 25, 2016
B448-067 — 2174782 1
First Amendment to Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services By and Between City of San Bernardino and Burrtec Waste Industries, Inc.
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B448-067 - 2174782 1
First Amendment to Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services By and Between City of San Bernardino and Burrtec Waste Industries, Inc.
This First Amendment to the Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services ("First Amendment") 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 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 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
B448-067 - 2174782 1
First Amendment to Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services By and Between City of San Bernardino and Burrtec Waste Industries, Inc.
WHEREAS, City is obligated to protect the public health and safety of the residents and ousinesses 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, the City Council of the City of San Bernardino awarded Contractor an exclusive Franchise for collection, recycling, diversion and disposal of Solid Waste from Service Units in the City of San Bernardino (the "Agreement"); and WHEREAS, Contractor is obligated, pursuant to Section 3.2 of the Agreement, to purchase certain equipment and personal property utilized in City's provision of Comprehensive Solid Wastes Services, as specified on the "List of City's Equipment/Property", attached to the Agreement as Exhibit 9, for the sum of Twelve Million Two Hundred Twenty Five Thousand Dollars ($12,225,000) (the "Purchase Price") which represents the Contractor's value of the specific equipment/personal property; and
WHEREAS, City and Contractor now desire to amend the List of City's Equipment/Property, attached to the Agreement as Exhibit 9, and make a corresponding reduction to the Purchase Price.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the foregoing Recitals, which are true and correct and are made a material part of this First Amendment, and the mutual representations, warranties, and covenants contained herein, and on the terms and subject to the conditions set forth herein, the City and Contractor agree as follows:
Section 1. Excluded Equipment/Property
The List of City's Equipment/Property, attached to the Agreement as Exhibit 9, is hereby amended to exclude the equipment/property set forth in "Exhibit A" to this First Amendment (the "Unpurchased Property").
Section 2. Amendment of Prior Section 12.9 Lease of Contractor's Vehicles The List of City's Equipment/Property, set forth in Exhibit A includes vehicle 739 as one of the vehicles to be deemed Unpurchased Property pursuant to the terms of this First Amendment to the Exclusive Franchise Agreement. Accordingly, section 12.9 of the prior agreement is amended to exclude vehicle 739 as one of the vehicles to be leased back by the City for the amount of One Dollar ($1.00) per Agreement year. This amendment shall not affect the remainder of section 12.9 as it relates to the City's option to lease vehicle number 08223 as listed in Exhibit 9 to the Agreement for an amount of One Dollar ($1.00) per Agreement Year. In the event City leases vehicle number 08223, the City shall be responsible for the associated insurance, vehicle licensing, maintenance and fueling costs of vehicle 08223 during the time this vehicle is leased by the City. The terms and conditions of any vehicle lease agreement shall be negotiated between the City and Contractor.
B448-067 - 2174782 1
First Amendment to Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services By and Between City of San Bernardino and Burrtec Waste Industries, Inc.
Section 3. Purchase Price Adjustment
The value of the Unpurchased Property is Forty Nine Thousand Six Hundred Seventy Five Dollars ($49,675). The Purchase Price shall be reduced by the value of the Unpurchased Property (the "Amended Purchase Price"). The Amended Purchase Price shall be Twelve Million One Hundred Seventy Five Thousand Three Hundred Twenty Five ($12,175,325).
Section 4. Definitions
All capitalized terms that are not defined herein shall have the same meaning as provided in the Agreement.
Section 5. Counterparts
This First Amendment may be executed in counterparts, each of which shall be deemed ar original, and all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date first above written.
CITY:
CITY OF SAN BERNARDINO
a California Charter City and
Municipal Corporation
Mach Scatt
Mark Scott
City Manager
ATTEST
enan
Georgeam "Gigi" Hanna
City Clerk
APPROVED AS TO FORM:
Gary D. Saenz, City Attorney
B448-067 _ 2174782 1
First Amendment to Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services By and Between City of San Bernardino and Burrtec Waste Industries, Inc.
Exhibit A
List of Unpurchased Property
Type Year Vehicle Chassis
Number Description Body Value
Flatbed 2006 739 1 Ton Flatbed Dump GMC C6500
Flatbed 1992 1540 1 Ton Flatbed Dump
Flatbed 2002 1541 Flatbed Isuzu
Flatbed 2012 12151 Stakebed Ford F550 $ 31,625
Key 2010 529 Fuel Key
Key 2010 530 Fuel Key $
Pressure Wash 2009 528 Pressure Washer
Pressure Wash 1989 1546 Pressure Washer
PU 2007 505 Compact PU Reg. Cab Ford Ranger
PU 2008 703 1 Ton Pick Up Ford F250
PU 2002 716 1/2 Ton Pick Up Chevy C1500
PU 2002 724 1/2 Ton Pick Up Chevy C1500
PU 1997 1544 3/4 Ton Pick Up Ford F250 $ 17,050
Sign 2010 517 Speed Flow Sign
Sign 2008 527 Speed Flow Sign $
Sprayer 2011 515 Paint Sprayer
Sprayer 2008 523 Paint Sprayer
Sprayer 2008 524 Paint Sprayer
Sprayer 2008 525 Paint Sprayer
Sprayer 2008 526 $ 500
Paint Sprayer
Trailer 1973 Trailer 15 ft
Trailer 1980 Trailer 10 ft N/A
Trailer 2003 Arrow Board Trailer
Trailer 1988 Trailer 15 ft $ 500
Misc 2011 472 Vibroplate
Misc 2000 511 Generator Portable $ -
$ 49,675
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