City of San Leandro
Civic Center 835 E 14th Street
San Leandro California 94577
July 20 2009
Mr Louie Pellegrini
Vice President
Alameda County Industries Inc
601 Aladdin Avenue
San Leandro CA 94577
RE TENTH AMENDMENT TO FRANCHISE AGREEMENT
Dear Mr Pellegrini
This letter is the Tenth Amendment the Amendment to the Franchise Agreement for Solid Waste Recyclables and Green Waste Services between the City of San Leandro City and Alameda County Industries Inc ACI dated February 12000 the Agreement For good and valuable consideration the receipt and adequacy of which are hereby acknowledged the City and ACI hereby agree as follows Effective February 1 2010 the Agreement shall renew for an additional 10 years The Agreement maybe extended beyond the 10 year term contingent upon ACI svehicle replacement schedule as follows For every three 3 current collection vehicles that are replaced with natural gas powered vehicles the Agreement shall be extended one 1 additional year beyond the original term Under no circumstances shall the Agreement be extended beyond January 31 2025 unless approved by the City Council and amended only in writing signed by the parties The rate adjustment process as specified in Section 62 of the Agreement shall be modified so that rates will be adjusted annually using a Refuse Rate Index RRI as enumerated in Appendix B in lieu of the Consumer Price Index provided that the adjustment does not exceed ten 10 percent per annum If an increase exceeds 10 per annum ACI must request a Special Rate Review pursuant to the procedures in Section 64 of the Agreement The parties shall no longer compare rates at five years as specified in Section 63 of the Agreement 3 Upon approval of the governing board of the San Leandro Unified School District SLUSD or District as early as August 3 2009 but no later than August 24 2009 ACI shall provide garbage recycling and organics collection to SLUSD facilities within the ACI service area at no charge to the District Representatives from the City the District and ACI will conduct waste audits at each facility prior to the start of service and again within three months of the start of service to establish waste generation rates at each facility site Garbage service levels shall not exceed levels identified in Appendix A Recyclables and green waste service levels shall be determined by ACI TonySan otlstl a
District and approved by the City
City Council Michael J Gregory Jim Prola Ursula Reed
Diana M Souza Joyce R Starosciak Bill Stephens
Tenth Amendment to Franchise Agreement
4 Effective July 1 2010 the Revenue Neutrality payment specified in Section 35 of the Agreement shall be adjusted on July 1 of each year to be equal to the sum of the per ton franchise fee and the per ton business license fee to be paid by the Davis Street Transfer Station on July 1 of that year 5 Effective July 1 2010 the MRF Permit Fee and the Residue Fee paid by ACI shall be adjusted by the Consumer Price Index CPI on July 1 of each year of the Agreement ACI shall use the average change in CPI for the previous calendar year to calculate the adjustment 6 Effective July 1 2010 ACI shall collect household batteries from all recycling cart customers To insure collection customers shall place batteries in a sealed bag on top of their cart for weekly collection The City of San Leandro shall pay for the cost to recycle Alkaline and Pile Lithium batteries In addition ACI shall collect latex paint electronic waste and appliances containing freon from single famiy and multi family households as part of the Annual Bulky Goods service as specified in Sections 46 and 47 of the Agreement
7 ACI shall design and print an informational brochure that identifies all of the services available to single famiy households The City and ACI will share the cost equally of mailing the brochure to every single famiy household by August 1 2010
8 Effective February 1 2010 ACI shall provide debris box service for garbage to the City at a 60 discount from the published debris box rates
9 Effective July 1 2010 and each July 1 thereafter ACI shall share revenues on the sale of recyclable materials with ratepayers in the form of a ratepayer credit Revenue from the sale of all recyclable
audited financial
materials
statements
processed
far
at
the
the 610 Aladdin facility as identified from the Contractor s previous fiscal year will be divided by the total tons of such materials during the same period to determine the average price per ton The average price per ton shall then be multiplied by those tons attributable to the City to establish the total dollar amount of revenue San Leandro Revenue shared by ACI and ratepayers If the average price per ton exceeds 26 then the ratepayer credit will equal 25 of the San Leandro Revenue If the average price per ton exceeds 80 then the ratepayer credit will equal 75 of the San Leandro Revenue The ratepayer credit will then be determined by taking the dollar value of the ratepayer share and dividing it by the total dollar value of all franchised revenue for the previous fiscal year to determine a percentage decrease in rates for the subsequent fiscal year The ratepayer credit is not cumulative and will be recalculated each year The annual revenue share shall be contingent upon all bank covenant calculations being met In the event bank covenants are not met the revenue share for that rate year shall be forgone
10 Except as amended the Agreement and all of its previously approved amendments and unamended terms and provisions shall remain in full force and effect Tenth Amendment to Franchise Agreement
Please indicate Alameda County Industries Inc s acceptance of this Amendment by signing and returning to me a copy of the Amendment
Very truly yours
en L Hollister
City Manager
Accepted by Alameda County Industries Inc
Date
Lo i Pellegrini Vice Preaid nt
1260614 1
Appendix A
Sehooi Name Service Siie Type im Servicce Current rtrteper E
Current rate per
Adult Ed Center Trash 2 and 1 1 128 06 1536 72
Rec ciin 1 and 1 1 301 363 72
Washin ton Trash 4 and 2 1 4038 4841 76
Rec clip 96 allon b 1 132 00 1584 04
Rec ciin 4 and 1 1 121 24 1454 88
Garfield Trash 4 and 1 3 568 45 6821 40
Rec ciin 3 and 1 1 903 10916
Lincoln Trash 3 and 1 1 152 71 1832 52
Rec clip 64 allon 2 1 2932 35 i 84
Roosevelt Trash 6 and 2 1 593 32 7119 84
Rec ciin 9b allon 8 1 270 88 3250 56
Wilson Trash 4 and 2 5 1870 33 22443 96
Rec clip 4 and 1 2 242 48 2909 7b
Bancroft Trash 4 and 2 5 1870 33 22443 96
Rec ciin 4 and 1 1 130 94 1571 28
John Muir Trash 4 and 2 5 1870 33 22443 96
Rec ciin 64 anon 1 1
Rec ciin 4 and 1 1 121 24 1454 88
Admin Office Trash 4 and 1 1 201 74 2420 88
Rec ciin 4 and 1 1 133 00 1596 00
Madison Trash 4 and 1 3 568 45 6821 40
Rec ciin 4 and 1 1 121 24 1454 88
1 McKinle Trash 3 and 2 2 580 45 6965 40
Rec ciin 96 allon 6 1 142 56 17102
Monroe Trash 3 and 1 3 458 13 54976
Rec ciin 6 and 1 1 181 86 2182 32
Maintenance Trash 4 and 1 1 201 74 2420 88
Rec ciin 4 and 1 1 121 24 1454 88
TRtal COt It 11336 26 1 r
Bancroft currently has a 40 yard debris box and is charged 200 per month If ACI provides service they will switch to the same service level as Wilson School as shown above The Adult School Office Jefferson Elementary and San Leandro High are excluded from the agreement since they are not located within the ACI service area
Agreement between the City and SLUSD 623009