22 Equipment oil, hydraulic fluids, spilled paint, or any other liquid or debris resulting from Contractor’s operations or equipment repair must be covered immediately with an absorptive material and removed from the street surface. Contractor must document spillage and notify City’s stormwater compliance coordinator within ninety (90) minutes of any spills resulting from Contractor’s operations or equipment. When necessary, Contractor must apply a suitable cleaning agent and cleaning technique to the street surface to provide adequate cleaning as approved by the City’s stormwater compliance coordinator to be compliant with the City’s stormwater permit.
The above paragraphs notwithstanding, Contractor must clean up any spillage or litter caused by Contractor within ninety (90) minutes upon notice from the City. If City deems necessary, Contractor must engage a third-party environmental cleanup specialist to remove any equipment oil, hydraulic fluids, or any other liquid or debris that remains on street after Contractor’s own clean-up efforts. If clean-up is not conducted to the satisfaction of City, City has the right to engage environmental clean-up specialist to perform additional clean-up work at the expense of Contractor. In the event of Contractor’s spill or release of a Hazardous Substance, Contractor is responsible for promptly notifying any federal, State, County, or local governmental agency having jurisdiction over same as may be required under federal, State, County or local law or regulation.
In the event where damage to City streets is caused by a hydraulic fluid spill (i.e., any physical damage more than a simple cosmetic stain caused by the spill), Contractor shall be responsible for all repairs to return the street to the same condition as that prior to the spill. Contractor shall be responsible for all clean-up activities related to the spill. Repairs and clean-up shall be performed in a manner satisfactory to the City and at no cost to the City.
To facilitate immediate clean-up, Contractor’s vehicles must always carry enough petroleum absorbent materials, along with a broom and shovel.
Contractor shall not transfer loads from one vehicle to another on any public street, unless it is necessary to do so because of mechanical failure, hot load (combustion of material in the truck), or accidental damage to a vehicle.
Contractor shall cover all open Drop Boxes at the pickup location before transporting materials to the Approved Disposal Facility or the Approved Recycling Facility.
Contractor shall conduct outreach and staff training to Customers on best management practices for litter abatement at no extra charge to the City when no additional direct expenses are incurred by Contractor. If requested outreach and staff training would result in additional direct expenses to Contractor, the City shall be promptly notified. If the City decides to pay direct expenses, Contractor shall Agenda Item #8.1:
23 conduct activities for no additional charge. If the City does not agree to pay direct expenses, Contractor shall be under no obligation to provide the requested services. Such best management practices include, without limitation:
• Closing Container lids and right sizing service: Contractor staff will tag overfull containers with “reminder stickers,” which will serve as outreach and education to the Customer. Photos of the container will be taken by drivers, attached to the Customer’s account, and will be available to outreach and Customer service staff to demonstrate to the Customer where a problem exists.
• Outreach to Customer on importance of bagging lightweight materials such as plastic bags, film plastics, foam peanuts, and other materials that can easily become litter due to their lightweight nature.
• Driver training on litter reduction techniques and litter removal best management practices.
• Affixing signage to the back of Contractor’s trucks which provides a clear and concise messages that reads something like: “If you see litter coming from this truck, please contact 707‐996‐7555”.
Contractor shall report on any spills, leaks or litter cleanups conducted as part of their quarterly report to the City.
C. Development and Review of Collection Specifications. Contractor shall work with the City to develop standard specifications for Collection Container enclosures at Commercial and Multi‐Family Premises. These specifications shall be developed to ensure that the Collection Container enclosures are built to provide adequate space for and suitable configuration to allow Contractor to safely and efficiently service Solid Waste, Recyclable Materials, Organic Materials, and C&D Containers. Contractor’s designated representative or other appropriately qualified staff shall, upon request by the City, provide a review of plans for new Multi‐family and Commercial development or project design drawings. Contractor shall provide comments and recommendations resulting from the review in writing within ten (10) days of receipt of the documents for review. In each review report, Contractor shall comment on the acceptability of the proposed enclosure arrangements in terms of: (i) the adequacy of space for Solid Waste, Recyclable Materials, Organic Materials, and C&D Containers, (ii) the accessibility of the Containers for Collection including whether additional charges (e.g., push/pull, etc.) would apply, and (iii) ease of use by tenants.
6.4 VEHICLE REQUIREMENTS
A. Vehicles. Contractor shall provide a fleet of Collection vehicles sufficient in number and capacity to efficiently perform the work required by the Agreement in strict accordance with its terms. Contractor shall have available sufficient back‐up Agenda Item #8.1:
24 vehicles for each type of Collection vehicle used to respond to scheduled and unscheduled maintenance, service requests, complaints, and emergencies. All such vehicles shall have watertight bodies designed to prevent leakage, spillage, or overflow. Hoppers shall be enclosed on top and on all sides to prevent material from leaking, blowing, or falling from the vehicles. Each Collection vehicle shall be equipped with a shovel and broom for clean-up of spillage. Collection vehicles shall never be loaded to exceed the manufacturer’s recommended weight limit or otherwise operated unsafely or in violation of any Applicable Law.
During the Term, to the extent required by law, Contractor shall provide its Collection Vehicles to be in full compliance with all Applicable Laws, including State and Federal clean air requirements that are adopted or proposed to be adopted, including, but not limited to, the California Air Resources Board Heavy Duty Engine Standards as currently proposed to be contained in California Code of Regulations, Title 13, Sections 2020 et seq., the California Air Resources Board Advanced Clean Fleets Regulation as outlined in California Code of Regulations, Title 13, Sections 2013 et seq., the Federal EPA’s Highway Diesel Fuel Sulfur regulations, and all other applicable air pollution control laws.
Contractor has inspected all applicable streets within the Service Area and acknowledges and certifies that all vehicles can safely and effectively operate within the Service Area.
B. Vehicle Signage. Collection vehicles shall present a clean appearance while providing service under this Agreement. Contractor's name and local telephone number shall be displayed on all vehicles in at least four (4) inch characters.
C. Vehicle Maintenance. Contractor shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles that are not operating properly shall be taken out of service until they are repaired and operate properly. Contractor shall repair, or arrange for the repair of, all its vehicles and equipment for which repairs are needed because of accident, breakdown, or any other cause to maintain all equipment in a safe and operable condition. The City may inspect vehicles at any reasonable time, and within three (3) calendar days of such a request, to determine compliance with this Agreement and sanitation requirements.
D. Collection Vehicle Noise Level. The noise level generated by Collection vehicles using compaction mechanisms during the stationary compaction process shall not exceed seventy-five (75) decibels at fifty (50) feet from the Collection vehicle measured at an elevation of five (5) feet above ground level using the "A" scale of a standard sound level meter at slow response, or Applicable Law, whichever is more stringent.
E. Equipment Inventory. On or before the Commencement Date of this Agreement, Contractor shall provide to the City an inventory of Collection vehicles and major Agenda Item #8.1:
25 equipment, as applicable, used by Contractor for Collection, Transportation, or Disposal, as applicable, in performance of services under this Agreement. The inventory shall indicate each Collection vehicle by identification number, DMV license number, the age of the chassis and body, type of fuel used, the type and capacity of each vehicle, the number of vehicles, the date of acquisition, the decibel rating, and the maintenance and rebuilt status. Contractor shall submit to the City an updated inventory annually, or more often at the request of the City.
Each vehicle inventory shall be accompanied by a certification signed by Contractor, as applicable, that all Collection vehicles and major equipment meet the requirements of this Chapter.
6.5 CONTAINER REQUIREMENTS
Contractor‐provided Containers shall be designed and constructed to be watertight and prevent the leakage of liquids. All Containers purchased after the Commencement Date shall display SGC and contact information in addition to all labels required under state law and City ordinance. All Containers with a capacity of 1 cubic yard or more shall meet all applicable federal regulations on Solid Waste Bin safety.
Containers shall be clearly labeled to indicate their designation for Collection of Solid Waste, Recyclables, or Compostable Materials and shall list the types of materials to be stored in the Container for Collection.
The Contractor is to provide all Containers to Customers at no charge. Replacement Containers shall be provided free of charge to Customers if the previous Container is rendered unserviceable by means other than the Customer’s action no more than once per year.
All Carts shall be wheeled Carts with securable, attached lids and a handle to allow for easy movement.
Contractor shall maintain, repair, clean, paint, and replace Containers as needed to maintain a clean, attractive, functional, new-like condition. All graffiti shall be removed or Containers replaced within fourteen (14) calendar days of notification.
Container Colors. Contractor shall ensure that each Container that it newly purchases and provides to a Service Recipient serviced under the Agreement conforms to the following color scheme: Black or Gray Containers for collection of Solid Waste, Blue Containers for collection of Recyclable Materials, and Green Containers for collection of Compostable Materials. In addition, Contractor shall ensure that all Containers it uses to provide such services to Service Recipients serviced under the Agreement conform to such color scheme by January 1, 2036.
Specific Material Types. Paper products and printing and writing paper, each as defined in the SB 1383 Regulations, may be placed in either the Blue Container or the Green Container.
Carpet and textiles may not be placed in either the Blue Container or the Green Container.
Agenda Item #8.1:
26 Container Labels. Contractor shall ensure that each Container (or Container lid) that it newly purchases and provides to a Customer serviced under the Agreement shall be labeled or imprinted with language and/or graphics that clearly indicates the primary items accepted and the primary items that are Prohibited Container Contaminants for that Container type.
Contractor may comply with this requirement by using model labeling provided by Cal Recycle.
Replacement Containers shall be provided free of charge to Customers if the previous Container is rendered unserviceable by means other than the Customer’s action no more than once per year.
6.6 PERSONNEL
A. General. Contractor shall furnish such qualified drivers, mechanical, supervisory, customer service, clerical, and other personnel as may be necessary to provide the services required by this Agreement in a safe and efficient manner. Contractor shall designate at least one (1) qualified employee as the City’s primary point of contact with Contractor who is principally responsible for providing operations and resolution of service requests and complaints.
Contractor shall use their best efforts to assure that all employees who interact with Customers present a neat appearance and conduct themselves in a courteous manner. Contractor shall not permit its employees to accept, demand, or solicit, directly or indirectly, any additional compensation, or gratuity from the City or the public.
C. Driver Qualifications. All drivers must have in effect a valid license, of the appropriate class, issued by the California Department of Motor Vehicles.
Contractor shall use the Class II California Department of Motor Vehicles employer “Pull Notice Program” to monitor its drivers for safety.
D. Safety Training. Contractor shall provide suitable operational and safety training for all of its employees who operate vehicles or equipment. Contractor shall train its employees involved in operations to identify, and not to collect or Dispose, Excluded Waste. Upon request from the City, Contractor shall provide a copy of its safety policy and safety training program, the name of their safety officer(s), and the frequency of their trainings.
E. Specific Employees. During the Term of this Agreement, Contractor will employ employees with qualifications typical of the Solid Waste, Recyclable Materials, Organic Materials, and C&D industry common to California. Such employees shall manage the day-to-day operations of Contractor. The Contractor shall also hire a Zero Waste Coordinator to start January 1, 2025. This position will be responsible for developing education and outreach materials, the annual zero waste outreach/inspection program for commercial generators, the annual cart-tagging program for residential generators, City Community Event zero waste support, and other zero waste activities. Zero Waste Coordinator shall conduct site visits and Agenda Item #8.1:
27 provide outreach and education in support of meeting Franchise and CalRecycle Diversion requirements and to meet State mandates associated with Applicable Law and all amendments and related subsequent legislation. The Zero Waste Coordinator shall be available as needed to meet with the City and conduct site visits to implement Recyclable Materials and Organic Waste programs in the Service Area. City may request monthly meetings with Contractor to discuss problems or issues such as Collection or Recycling programs, Billing or Service Recipient service issues, and day-to-day operations.
6.7 HAZARDOUS WASTE INSPECTION AND HANDLING
A. Inspection Program and Training. Contractor shall develop a load inspection program that includes the following components: (i) personnel and training, (ii) load checking activities, (iii) management of wastes, and (iv) record keeping and emergency procedures.
Contractor’s load checking personnel, including Contractor’s Collection vehicle drivers, shall be trained in: (i) the effects of Hazardous Substances on human health and the environment, (ii) identification of prohibited materials, and (iii) emergency notification and response procedures. Collection vehicle drivers shall inspect Containers before Collection when practical.
B. Response to Excluded Waste Identified During Collection. If Contractor determines that material placed in any Container for Collection is Excluded Waste or presents a hazard to Contractor's employees, Contractor shall have the right to refuse to accept such material. The Generator shall be contacted by Contractor and requested to arrange proper Disposal. If the Generator cannot be reached immediately, Contractor shall, before leaving the Premises, leave a tag at least two (2) inches by six (6) inches in size, which indicates the reason for refusing to Collect the material and lists the phone number of a facility that accepts the Excluded Waste or a phone number of an entity that can provide information on proper Disposal of the Excluded Waste. Under no circumstances shall Contractor’s employees knowingly Collect Excluded Waste or remove unsafe or poorly containerized Excluded Waste from a Collection Container. Prior to the Commencement Date of this Agreement, the tag that will be used to notice Customers of reason for non‐Collection shall be reviewed and approved by the City. If Excluded Waste is found in a Collection Container or Collection area that could possibly result in imminent danger to people or property, Contractor shall immediately notify the Fire Department and other appropriate emergency personnel.
6.8 CITY
Contractor shall meet and confer with the City to resolve differences of interpretation and implement and execute the requirements of this Agreement in an efficient, effective manner that Agenda Item #8.1:
28 is consistent with the stated objectives of this Agreement. The City may designate a different representative from time to time by providing notice thereof to Contractor. In such case, that person shall be the “City” for purposes of this Agreement.
From time to time the City may designate other agents of the City to work with Contractor on specific matters. In such cases, those individuals should be considered designees of the City for those matters to which they have been engaged. Such designees shall be afforded all of the rights and access granted thereto under this Agreement.
In the event of dispute between the City and Contractor regarding the interpretation of or the performance of services under this Agreement (but excluding the assessment of Liquidated Damages pursuant to Chapter 11.6 below), the City’s determination shall be conclusive except where such determination results in a material impact to Contractor’s revenue and/or cost of operations. For the purposes of this Chapter, “material impact” is an amount equal to or greater than one hundred thousand dollars ($200,000). In the event of a dispute between the City and Contractor that results in such material impact to Contractor, Contractor may appeal the determination of the City to the City Council, whose determination shall be conclusive.
Notwithstanding the foregoing, this Chapter 6.8 shall be in addition to and not exclusive of any other remedies of the Parties under this Agreement, including, without limitation, each Party’s right to pursue available remedies at law or in equity.
The City shall have the right to observe and review Contractor operations and Processing facilities and enter Premises for the purposes of such observation and review, including review of Contractor’s records, during reasonable hours with reasonable notice. In no event shall Contractor prevent access to such premises for a period of more than one (1) calendar day after receiving such a request. The City shall have access to sections of Contractor’s Customer service database which facilitates the City’s retrieval and reporting of Customer service data.
CHAPTER 7: BILLING, CUSTOMER SERVICE, RECORD KEEPING,
AND REPORTING
7.1 BILLING SERVICES
Contractor shall provide billing services for all Customers in the Service Area, including all Residential Properties, Multi-Family Properties and Commercial Properties. Contractor shall: (i) bill all Customers in the Service Area, including all SFDs, MFDs, and Commercial Properties at the rates permitted in this Agreement, (ii) maintain accurate billing and payment records, and (iii) bill Customers on the following schedule or as otherwise approved by the City:
• Each SFD Customer shall be billed quarterly in advance; and • Each MFD and Commercial Customer shall be billed monthly in arrears.
Agenda Item #8.1:
29 Service Recipients’ bills shall be itemized showing the charges for each classification of services. Contractor and the City shall agree on the format of the invoice prior to the next billing cycle after the Commencement Date.
Customer billing shall reflect the rate arrangements described below inclusive of the fees described in Chapter 8. The rate schedules establish the maximum rates that may be charged. • SFD Rate Arrangements
Contractor shall provide residents with the container sizes they subscribe to; service such containers; and properly bill for the level of service requested. • MFD and Commercial Rate Arrangements
Contractor shall provide customers with the number and sizes of containers requested; service such containers; and properly bill for the level of service requested. • City’s Facilities
City’s’ facilities listed in Attachment B4, shall be provided all collection services at “no cost.” Collection services are provided to the City free of charge. • Special Services Charges
Contractor’s customer proposed rate schedule shall include all charges for special services, including: (1) unlocking Containers, (2) accessing Container enclosures with a key, (3) pulling or pushing Containers to a Collection Vehicle, (4) steam cleaning Containers as requested by the Customer, (5) additional residential solid waste cart monthly service rate, (6) additional Recyclable Materials Cart monthly rental, (7) additional Organic Materials Cart charge equivalent to 68% of the Solid Waste monthly service rate gallon equivalent.
Please see Chapters 6.3.A, and 6.5 and Attachments B1, B2, and B3 for more details on situations in which special service charges apply.
Notwithstanding any other provision in this Agreement, Contractor shall not be required to pause or suspend service to Residential Customers for vacation or other similar reasons.
Contractor’s website shall provide Customers with the ability to pay their bills through an electronic check or credit card and include the ability for Customer billings to be automatically charged on a recurring basis. Contractor shall promote the website-based billing and payment system on all paper bills sent to Customers. Contractor shall prepare, mail, and collect bills from Customers who decline to use such internet‐based billing system. Contractor shall make arrangements to allow Customers to pay bills by cash, check, electronic check, money order, and credit card.
A. Delinquent Accounts. Contractor shall be responsible for collecting delinquent charges for services it renders to customers. Contractor shall employ measures, consistent with law regulating the collection of debts, to obtain payment of charges including, but not limited to, use of its own employees to obtain judgments in Small Claims Court and to enforce such judgments.
Agenda Item #8.1:
30 In the event that any account becomes more than thirty (30) calendar days past due, Contractor shall notify such Customer of the delinquency via written correspondence and telephone contact, with a copy to the City, that service may be discontinued if the account becomes more than forty-five (45) calendar days past due. Should any account become more than forty-five (45) calendar days past due, Contractor may discontinue providing service to the Customer. No less than seven (7) calendar days prior to discontinuing service to a Customer, Contractor shall notify the City of the address, Service Level, service frequency, and delinquent billing amount. Contractor may withhold service from a delinquent account until all past delinquencies are paid in full. Upon restoring service to a previously delinquent account, Contractor may require a deposit from the Customer not to exceed one (1) quarter’s (SFD) or one (1) month’s (MFD or Commercial) billings at the Customer’s then-current Service Level.
C. Billing Records. Contractor shall keep records of all billing documents and customer account records including, but not limited to, invoices, customer payment coupons mailed with the invoice and collection notices, for a period of two (2) years after the date of receipt or issuance. Contractor may, at its option, maintain those records in electronic form, hard copy, or in any other manner, provided the records can be preserved and retrieved for inspection and verification in a timely manner.
D. Customer Privacy.
1. Non-Disclosure. Contractor shall not disclose to any Person other than the City any information identifying an individual Customer, the composition or contents of a Customer's Solid Waste, or a Customer' s trade secrets unless upon authority of law, or pursuant to written authorization of the Customer.
2. No marketing. Contractor shall not market or distribute mailing lists with the name or address of Customers. Contractor’s obligations under this subsection are in addition to any other privacy rights accorded Customers under Applicable Law.
E. City Access to Billing Information. Contractor shall provide the City with prompt access to all current and up-to-date billing information necessary to allow the City to respond to customer inquiries or complaints or as otherwise required by the City for its official purposes.
7.2 CUSTOMER SERVICE
A. Customer Service. Contractor shall at all times be in compliance with this Chapter
7.2. B. Office Location and Hours. Contractor will have an operation and maintenance yard located in Sonoma County, California. At a minimum, Contractor’s office shall Agenda Item #8.1:
31 be open from 9 a.m. to 3 p.m. Monday through Friday for the public to pay their bills or obtain customer service assistance except for Holidays.
C. Local Telephone Number and Equipment. Contractor’s principal office shall be accessible by a local telephone number at least during the office hours specified in Chapter 7.2.B and from 8 a.m. to 4:30 p.m. The telephone number shall be listed under Contractor’s name on its website, the City’s website, and as appropriate on Collection vehicles and Containers. Contractor shall have sufficient equipment in place and staff to handle the volume of calls experienced on the busiest days. An answering machine or voicemail service shall record Customer calls and voice messages between hours the office is closed, or outside times calls are not being answered.
D. Website. Contractor shall develop a comprehensive website which fully explains and effectively promotes the Collection service options offered to its Customers.
The website shall contain the full approved rate schedules as well as any other information that may be helpful to the City and Customers in meeting the City’s and Diversion goals. The website shall also allow Customers to submit inquiries and complaints, which shall be answered as provided for in the following paragraph.
E. Service Requests, Compliments, Complaints. Contractor shall be responsible for the prompt and courteous attention to, and prompt and reasonable resolution of, all Customer service requests and complaints. Contractor shall record in a separate computerized log, approved as to form by the City, all complaints, noting the name and address of complainant, date and time of complaint, nature of complaint, and nature and date of resolution. Contractor shall retain this complaint log for the Term plus two (2) years after its expiration or earlier termination. Upon request by the City, Contractor shall promptly compile and submit a summary statistical table of the complaint log.
Contractor shall respond to all complaints received within twenty‐four (24) hours, weekends and Holidays excluded. If a complaint involves a failure to Collect Solid Waste, Recyclable Materials, or Organic Materials from a Premises in the Service Area which is the fault of Contractor, Contractor shall Collect the material in question within twenty‐four (24) hours of receipt of the Complaint, provided that the Generator has properly placed materials for Collection.
7.3 RECORD KEEPING AND REPORTING
A. Record Keeping.
As set forth in this Chapter, Contractor shall submit reports to the City on Solid Waste Collection and Disposal, Recyclable Materials Collection, Processing and marketing, Construction and Demolition Debris Collection and Disposal, and Organic Materials Collection, Processing and marketing to assist the City in Agenda Item #8.1:
32 meeting the reporting requirements of AB 939, AB 341, AB 1826, SB 1383, and other Applicable Laws.
Contractor shall maintain accounting, statistical, operational, and other records related to its performance as shall be necessary to provide reporting under the Act and demonstrate compliance with this Agreement. Unless otherwise required in this Chapter, Contractor shall retain all records and data required to be maintained by this Agreement for the Term of this Agreement plus three (3) years after its expiration or earlier termination. Records and data shall be in chronological and organized form and readily and easily interpreted. Upon request by the City, any such records shall be retrieved in a timely manner by Contractor and made available for review and inspection. Contractor shall maintain adequate record security to preserve records from events that can be reasonably anticipated such as a fire, theft, and an earthquake. Electronically maintained data and records shall be protected and backed‐up.
B. Report Submittal Requirements
Contractor shall submit quarterly reports within thirty (30) calendar days after the end of the calendar quarter. Contractor shall submit annual reports no later than forty‐five (45) calendar days after the end of each calendar year. Quarterly and annual reports shall, at a minimum, include all data and information as described in Attachment C. Contractor shall report and provide documentation of all violations of Applicable Law alleged or conclusively determined by any federal, state, or local government to the City immediately and in no event later than twenty four (24) hours thereafter.
The format of each report shall be approved by the City and such approval shall not be unreasonably withheld. The City may, from time to time during the Term, review and request changes to Contractor’s report formats and content and Contractor shall not unreasonably deny such requests.
Contractor shall submit (via mail and e‐mail) all reports to the City.
The City reserves the right to require Contractor to provide additional reports or documents as the City reasonably determines to be required for the administration of this Agreement or compliance with the Act or Applicable Law.
7.4 INSPECTION BY CITY; PERFORMANCE REVIEWS
A. General. The City reserves the right to inspect any and all of Contractor’s facilities and equipment at any time during normal business hours, without notice, and at any other time with reasonable notice.
B. Performance Reviews
Agenda Item #8.1:
33 City, in its sole discretion and cost, may require performance reviews in accordance with this provision. Although the Contractor may make recommendations concerning the selection of contractors for conducting performance reviews, the City will select such contractors in the City’s sole discretion. Contractor will cooperate fully with each performance review and provide all operational, financial and other information deemed helpful by the City or its contractor conducting the performance review within 30 days of a request for such information. Prior to conducting a performance review, City or Contractor may request a conference to establish the scope of the performance review. If a performance review identifies non-compliance with the Franchise agreement, the City may recover liquidated damages for such non-compliance, and exercise any of its remedies of the Franchise agreement or applicable law. In its sole and exclusive discretion, the City may require that the Contractor take prescribed measures to cure any non-compliance identified in the performance review, and may require amendments to the Franchise Agreement to avoid such noncompliance in the future. The City may conduct or have conducted 5 performance reviews at Contractor’s expense during the Franchise Term; except that, any performance review that identifies non-compliance with the Franchise agreement will not be counted in the total number of performance reviews the City may conduct or have conducted at Contractor expense during the Franchise Term.
The City, its auditors and any and all other City agents and/or authorized representatives and any other authorized government agencies will have the right during regular business hours and upon 24-hours’ notice to inspect, review and copy all Franchise records of the Contractor. The City may, in its sole discretion, select a qualified independent firm to perform audits.
Contractor agrees to make appropriate Contractor representatives available to meet with the City, its auditors, agents and/or authorized representatives or other authorized government agency to produce, review, discuss and verify any Franchise records and to fully cooperate with any audit conducted by or on behalf of the City or any other government agency.
C. Audit Costs
Contractor will pay all costs associated with audits conducted by or on behalf of the City relating to Contractor’s requests for rate increases, changes to the Franchise fee, amendments to rate calculations, or any other changes to the Franchise sought by Contractor. Such audit costs will be paid by the Contractor to the City as another payment included in Contractor’s monthly Franchise payments. The City may also conduct, at Contractor’s expense, up to seven audits during the Franchise Term to:
1. Verify Customer bills and billing Rates have been properly calculated.
Agenda Item #8.1:
34 2. Determine the accuracy of RRI calculations and rate adjustments based on them.
3. Verify that the Franchise fees and other Franchise payments required to be paid the City under this Franchise agreement have been properly calculated and paid.
4. Verify Contractor’s compliance with the Franchise agreement reporting requirements.
5. Verify Contractor’s compliance with the performance standards of the Franchise agreement.
6. Verify the Diversion percentages reported by the Contractor.
Any audit that identifies non-compliance with the Franchise agreement will not be counted in the total number of audits the City may conduct or have conducted at Contractor expense during the Franchise Term.
E. Reconciliation of Contractor Franchise Payments Following Audit If an audit conducted under this Franchise agreement indicates that any Contractor Franchise payment has been less than the amount required under the Franchise agreement, the Contractor will reimburse the City for the full amount of the underpayment, as well as all costs associated with the audit, within 10 days of receipt of written notice by the City. If an audit conducted under this Franchise agreement indicates that any Contractor Franchise payment has been greater than the amount required under the Franchise agreement, the City will provide the Contractor written notice of the overpayment(s), and the Contractor may apply the amount of the overpayment(s) as a credit against the Franchise payment due immediately following the City’s notice.
CHAPTER 8: FRANCHISE FEES AND OTHER FEES
8.1 FRANCHISE FEE
In consideration of the rights provided Contractor herein, including the right to use City’s streets and property, and based on the reasonable value of the rights provided Contractor herein, Contractor shall pay franchise fees to the City each quarter following the Commencement Date equal to six percent (6%) of Gross Receipts for the prior quarter for all services performed under this Agreement.
8.2 SOLID WASTE COMPLIANCE
Because of state laws, including but not limited to AB 939 and SB 1383, the City’s solid waste compliance requirements, which include staffing and supporting zero waste activities, mandated Agenda Item #8.1:
35 education and outreach, compliance monitoring, recordkeeping and reporting, have increased significantly. Contractor and City agree to work together to facilitate collection programs, education, outreach, recordkeeping and reporting requirements as required by law.
8.3 ADJUSTMENT TO FEES
The City may set other fees or adjust the fees established in this Chapter from time‐to‐time during the Term of this Agreement and such other fees and adjustments to the fees established in this Chapter shall be included in the adjustment of Rates as described in Attachment D.
The amounts of the franchise fee and other fees in subsequent Rate Years shall be adjusted annually in accordance with the adjustment method described in Attachment D or shall be the amount specified by the City.
8.4 PAYMENT SCHEDULE AND LATE FEES
Within thirty (30) calendar days of the end of each calendar quarter, following the Commencement Date, Contractor shall remit to the City all fees as described in this Chapter. If such remittance is not paid to the City on or before the thirtieth (30th) calendar day following the end of a calendar quarter, all fees due shall be subject to a delinquency penalty of one and onehalf percent ($1.5%), which attaches on the first day of delinquency. The delinquency penalty shall be increased an additional one and one-half percent (1.5%) for each additional month the payment remains delinquent up to the amount authorized by law.
Each quarterly remittance to the City shall be accompanied by a statement listing the amount of each fee paid; calculation of each fee; and, statement of Gross Receipts, by Customer Type for the period collected from all operations conducted or permitted by this Agreement. The City may, at any time during the Term, request a detailed calculation of Gross Receipts which may include, but is not necessarily limited to, the number of Customers charged at each Service Level and Rate charged for each billing period.
The City may, at any time during the Term, perform an audit of Contractor’s billings and payment of fees. Contractor shall cooperate with the City in any such audit. Should City perform this review and identify billing errors or other errors in payment of fees valued at one (1) percent or more of Gross Receipts, Contractor shall, in addition to compensating the City as applicable for lost fees, reimburse the City’s cost of the review.
CHAPTER 9: CONTRACTOR'S COMPENSATION AND RATE SETTING
9.1 GENERAL
Contractor’s compensation for performance of all its obligations under this Agreement shall be Gross Receipts. Contractor’s Compensation provided for in this Chapter is the full, entire and complete compensation due to Contractor pursuant to this Agreement for all labor, equipment, materials and supplies, Processing and Disposal fees, fees due to the City as applicable, taxes, insurance, bonds, overhead, operations, profit, and all other things necessary to perform all the Agenda Item #8.1:
36 services required by this Agreement in the manner and at the times prescribed. Nothing herein shall obligate the City to provide any compensation to Contractor beyond Gross Receipts.
If Contractor’s actual costs, including fees due to the City, are more than Gross Receipts, Contractor shall not be compensated for the difference in actual costs and actual Gross Receipts. If Contractor’s actual costs are less than the actual Gross Receipts, Contractor shall retain the difference provided that Contractor has paid the City and City fees pursuant to Chapter 8.
Under this Agreement, Contractor shall have the right and obligation to charge and collect from Customers the Rates in Attachment D that are approved by the City for provision of services to Customers.
9.2 RATES AND ANNUAL ADJUSTMENTS
A. General. The City shall be responsible for approving Rates as described in this Chapter. If at any time during the Term of the Agreement, Contractor determines the need for a Rate that does not appear on the City‐approved Rate schedule in Attachment D, Contractor shall immediately notify the City and request establishment of such Rate. For example, if a Customer requires Collection of Organic Materials in a fifteen (15) cubic yard Compactor five (5) times per week and the City‐approved Rate schedule does not include this level of service, Contractor must request that the City approve a Rate for this level of service.
B. Adjustments to Rates. Not later than March 1, 2025 and annually thereafter in accordance with Attachment D, Contractor will submit an Application requesting the amount of Contractor’s Rate adjustment for Rate Year Two commencing July 1, 2025. Rates for subsequent Rate Years shall be adjusted in accordance with this Chapter 9.2 and Attachment D, subject to completion of any proceedings that the City chooses to undertake under Chapter XIII C and/or D of the California Constitution with respect to such Rates. The City shall have the right to request, in his or her sole discretion, information necessary to establish the reasonableness or accuracy of Rates adjusted in accordance with this Chapter 9.2 and Attachment D.
After such request is made, Contractor shall promptly provide such information, which may include, but is not limited to, information regarding a Subcontractor or subcontractor. Contractor’s failure to fully cooperate in a timely manner with any reasonable request for information by the City may result in either the denial of or a delay in the approval of Rates in accordance with this Chapter 9.2 and Attachment D.
C. Rate Structure. The City and Contractor shall meet and confer to change the relationship of individual Rates in comparison with other Rates. Any such changes would occur in conjunction with the Rate adjustment process described in Chapter 9.2.B or in conjunction with an extraordinary Rate adjustment in accordance with Chapter 9.3. Changes to the Rates charged under the new structure shall be calculated in such a way that the revised Rate structure Agenda Item #8.1:
37 generates at least the same amount of total revenue when the number of accounts at each Service Level are multiplied by the Rates charged for each Service Level and the totals for all Service Levels are summed.
9.3 EXTRAORDINARY RATE ADJUSTMENTS
Extraordinary Adjustments. Contractor and City acknowledge that there may be infrequent extraordinary events, including Change in Law, which, although they do not prevent either party from performing, and thus do not implicate the force majeure provisions hereof, nevertheless increase the cost of providing services above the Maximum Service Rate Adjustment articulated in Chapter 9.3. The obligation of the parties in such event is to act reasonably toward each other in arriving at an appropriate adjustment in rates. Accordingly, at its option, Contractor may apply to the City not more frequently than once every three calendar years, for an extraordinary rate adjustment should an event or circumstance arise which negatively impacts the economic operation of Contractor and which is in excess of the rate adjustment resulting from the application of Chapter 9.03. An extraordinary adjustment in rates will be deemed justified if it is necessary for the Contractor to make a substantial change in its operations, or substantial capital expenditure or investment to perform its obligations under this Agreement due to the occurrence of an event or circumstance which is beyond the reasonable control of Contractor.
Extraordinary rate adjustments shall only be effective after approval by the City Council.
A. Contractor’s Burden. In the event of such an application for an extraordinary rate increase, it is understood that the Contractor shall have the burden of demonstrating to the reasonable satisfaction of the City the basis for the extraordinary increase cost. Contractor shall bear the burden of justifying its request and shall be solely responsible for the cost of preparing and submitting sufficient documentation in support of its request. City in its sole reasonable discretion may request Contractor to provide any additional information it deems necessary to fully evaluate the request, and Contractor shall be solely responsible for the cost of providing such additional information. Contractor shall allow City to review a report of its annual revenues and expenses for the services provided in the City. City shall have the right to review this information in connection with the City’s review of Contractor’s extraordinary rate adjustment request. With respect to any financial statements or any other information Contractor specifically designates as non-public information (“Confidential Information”), City agrees that, except as otherwise set forth in this Chapter: (a) it will hold in confidence all Confidential Information; (b) it will restrict the disclosure of Confidential Information within its own organization and to its agents or representatives who need to know the Confidential Information for the purposes of the request; (c) it will not disclose Confidential Information to any third party without the prior written consent of the Contractor; (d) it will not copy or reproduce any written or electronically stored Confidential Information without the prior written approval of the Contractor; and (e) it will not use Confidential Information except as required for consideration of the request. City may consider increases or decreases in Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request.
Agenda Item #8.1:
38 Notwithstanding any other provision in this Chapter, the City will inform the Contractor upon receiving a California Public Records Act request or a subpoena for any Confidential Information by written notice delivered to the Contractor (“Notice”). The Contractor will have five (5) days from the date of the Notice to inform the City in writing of its intent to assert its confidentiality rights under this Agreement. The Contractor will then have fifteen (15) days from the date of the Notice to seek and obtain a court order or other judicial ruling to prevent the disclosure of the Confidential Information. If the Contractor fails to act within the five (5) or fifteen (15) day windows described above, the City may disclose the requested Confidential Information to the requestor or subpoenaing party. In the event Contractor seeks a court order to stay or enjoin the disclosure of the Records, Contractor agrees to indemnify and hold harmless the City, its Council, elected and appointed board or commission members, officers, employees, volunteers, and agents (collectively, "Indemnities") from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding, or suit in law or equity of any and every kind and description, whether judicial, quasi-judicial, or administrative in nature, arising or resulting from or in any way connected with the subject of a CPRA, FOIA request, or subpoena for the Confidential Records. For the purposes of this Chapter, “Records” shall mean records created or maintained by Contractor in accordance with this Agreement, including those records that may include financial statements or Confidential Information of Contractor. Contractor’s indemnity obligation shall survive the expiration or termination of this Agreement.
B. Review Costs. At the time of its request, Contractor shall also submit a payment to the City of up to Twenty-Five Thousand Dollars ($25,000) to defray the City’s costs to review the request. In the event the City’s reasonable costs exceed that amount, Contractor shall reimburse the City for any documented amount in excess.
C. Meet and Confer. The City and Contractor agree to meet and confer regarding the request and to negotiate in good faith regarding the appropriateness of the requested adjustment.
D. City Review; Approval. City shall review the Contractor’s request and, in the City’s sole and reasonable judgment, make the final determination as to whether an adjustment to the Maximum Service Rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. Approval of the City Council shall be required for any Extraordinary Adjustments. The City shall notify Contractor of its decision within ninety (90) calendar days regarding whether it accepts Contractor’s request. Except as provided herein, any such change approved by the City shall not be implemented until July 1 of the next Rate Year unless a different timeframe is approved by the City Council.
E. Procedures in Event of Invalidation of Rate Adjustment. In the event that City is unable by operation of Applicable Law to approve or implement a rate increase under this Chapter 9, or some or all of the Maximum Service Rates are disallowed Agenda Item #8.1:
39 by operation of Applicable Law, Contractor will have the right, within thirty (30) days after notice of any such inability to approve or invalidation of an approved rate increase, to request, in writing, that City negotiate in good faith regarding reductions in programs, services, or fees to compensate for any negative impact from the unapproved or invalidated rate increase. If City fails to commence negotiations in good faith or negotiations are not completed within forty-five (45) days following the date of receipt of Contractor’s request, either party may terminate this Agreement no earlier than one hundred and eighty (180) days after written notice to the other.
9.4 Change in Law
The City and Contractor understand and agree that the California Legislature has the authority to make comprehensive changes to the Act and related legislation and that these and other changes in the future, which mandate certain actions or programs for counties or municipalities, may require changes or modifications in some of the terms, conditions, or obligations under this Agreement. The City and Contractor agree that, as the appropriate regulatory bodies continue to develop final rules and regulations implementing such legislation, the City and Contractor will meet and confer as requested by Contractor or the City to discuss how such rules and regulations may impact the services provided, Contractor’s costs under this Agreement, and the Rates to be charged. Prior to such meet and confer period, Contractor agrees to minimize actions (such as replacement of Collection vehicles) that may be affected by such rules and regulations.
CHAPTER 10: INDEMNIFICATION, INSURANCE AND PERFORMANCE
BOND
10.1 INDEMNIFICATION
A. General. Contractor shall indemnify, defend with counsel acceptable to the City, and hold harmless (to the full extent permitted by law) the City and its officers, officials, employees, volunteers, and agents from and against any and all claims, liability, loss, injuries, damage, expense, and costs (including without limitation costs and fees of litigation, including attorneys’ and expert witness fees) (collectively, “Damages”) of every nature arising out of or in connection with Contractor’s performance under this Agreement, or its failure to comply with any of its obligations contained in the Agreement, except to the extent such loss or damage was caused by the sole negligence or willful misconduct of the City.
Contractor’s duty to defend and indemnify herein shall include for Damages arising from or attributable to any operations, repairs, clean-up or detoxification, or other plan (regardless of whether undertaken due to governmental action) concerning any Excluded Waste collected in the Service Area. The foregoing is intended to operate to defend and indemnify and hold harmless indemnitees to the full extent permitted for liability pursuant to 107(e) of CERCLA, 42 U.S.C. 9607(e) and Agenda Item #8.1:
40 California Health and Safety Code 25364. In addition, Contractor’s duty to defend and indemnify herein includes all fines and/or penalties imposed by the California Department of Resources Recycling and Recovery, subject to the restrictions set forth in Public Resources Code section 40059.1, if the requirements of AB 939 or AB 341 are not met by Contractor with respect to the waste stream collected under this Agreement, and such failure is (i) due to the failure of Contractor to meet its obligations under this Agreement, or (ii) due to Contractor’s delays in providing information that prevents the City or Contractor from submitting reports required by AB 939 or AB 341 in a timely manner. The provisions of this Chapter shall survive the termination or expiration of this Agreement.
B. AB 939, AB 341, AB 1846, SB 1383, and Local Ordinance Compliance Contractor shall perform all education, outreach, monitoring, and reporting as specified in this agreement for all Commercial and Residential, including MultiFamily, properties as required by AB 939, AB 1826, AB 341, SB 1383 and any City ordinance, policy, or rule. Contractor has developed, and shall implement and update as necessary, a public education and outreach plan as provided that, among other things supports and educates Multi-Family and Commercial Customers on both State and local requirements. Contractor shall provide all necessary reporting relating to the City's compliance requirements pertaining to AB 939, AB 1826, AB 341, and SB 1383.
C. Excluded Waste. Contractor acknowledges that it is responsible for compliance during the entire Term of this Agreement with all Applicable Laws. Contractor shall not store, transport, use, or Dispose of any Excluded Waste except in strict compliance with all Applicable Laws.
In the event Contractor negligently or willfully mishandles Excluded Waste in the course of carrying out their activities under this Agreement, Contractor shall at its sole expense promptly take all investigatory and/or remedial action reasonably required for the remediation of such environmental contamination. Prior to undertaking any investigatory or remedial action, however, Contractor shall first notify the City of any proposed investigatory or remedial action. Should Contractor fail at any time to promptly take such action, the City may undertake such action at Contractor’s sole cost and expense, and Contractor shall reimburse the City for all such expenses within thirty (30) calendar days of being billed for those expenses, and any amount not paid within that thirty (30) calendar day period shall thereafter be deemed delinquent and subject to the delinquent fee payment provision of Chapter 8.4. These obligations are in addition to any defense and indemnity obligations that Contractor may have under this Agreement. The provisions of this Chapter shall survive the termination or expiration of this Agreement.
Notwithstanding the foregoing, Contractor’s duties under this subsection shall not extend to any claims arising from the Disposal of Solid Waste at the Approved Disposal Facility, including, but not limited to, claims arising under Comprehensive Agenda Item #8.1:
41 Environmental Response, Compensation and Liability Act (CERCLA) unless such claim is a direct result of Contractor’s negligence or willful misconduct or Contractor or its Affiliate owns or operates the Approved Disposal Facility.
D. Environmental Indemnity. Contractor shall defend, indemnify, and hold the City harmless against and from any and all claims, suits, losses, penalties, damages, and liability for damages of every name, kind, and description, including attorneys’ fees and costs incurred, attributable to the negligence or willful misconduct of Contractor in handling Excluded Waste.
E. Related to Propositions 218 and 26. Should there be a Change in Law or a new judicial interpretation of Applicable Law, including, but not limited to, Chapter XIII C and/or D of the California Constitution (commonly Proposition 218 and Proposition 26), which impacts the City’s ability to set or change Rates for the Collection and/or Disposal services established in accordance with this Agreement, or which affects the franchise fees or other fees required by this Agreement, Contractor agrees to meet and confer with the City to discuss the impact of such Change in Law on the Parties’ ability to perform under this Agreement and/or collect or pay franchise fees or other fees under this Agreement.
If, at any time, a Rate adjustment determined to be appropriate by both the City (which determination will not be unreasonably withheld) and Contractor to compensate Contractor for increases in costs as described in this Agreement cannot be implemented for any reason, Contractor shall be granted the option to negotiate with the City, in good faith, a reduction of services equal to the value of the Rate adjustment that cannot be implemented. If the City and Contractor are unable to reach agreement about such a reduction in services, then Contractor may terminate this Agreement upon one hundred eighty (180) days’ prior written notice to the City, in which case Contractor and the City shall each be entitled to payment of amounts due for contract performance through the date of termination but otherwise will have no further obligation to one another pursuant to this Agreement after the date of such termination. Should a court of competent jurisdiction determine that Contractor cannot charge and/or increase its Rates for charges related to franchise fees and/or other governmental fees and charges, Contractor shall reduce the Rates it charges Customers a corresponding amount and shall be relieved from paying any such fees that are payable to the City, provided said franchise fees, other governmental fees and/or charges disallowed by the court were determined not to be related to the cost of providing service hereunder and had been incorporated in the Rates charged by Contractor to its Customers.
The City shall not be in default of this Agreement if it is determined by a court of competent jurisdiction that the City lacks the authority to set Rates or increase Rates for charges related to providing Collection and/or Disposal services under this Agreement.
Agenda Item #8.1:
42 Nothing herein is intended to imply that California Constitution, Chapters XIII C and/or D, apply to the Rates established for services provided under this Agreement and/or the franchise fees and other fees under this Agreement; rather this Chapter is provided merely to allocate risk of an adverse judicial interpretation between the Parties.
This Chapter 10.1 will survive the expiration or earlier termination of this Agreement and shall not be construed as a waiver of rights by the City to contribution or Indemnity from third parties.
10.2 INSURANCE
A. General Requirements. Contractor shall, at its sole cost and expense, maintain in effect always during the Term of this Agreement not less than the following coverage and limits of insurance:
1. Minimum Coverages. Each insurance policy required by the agreement shall be endorsed to state that coverage shall not be suspended, voided, cancelled, or reduced in limits except after thirty (30) days’ prior written notice has been given to City, except that ten (10) days prior written notice shall apply in the event of cancellation for nonpayment of premium.
Insurance coverage shall be with limits not less than the following:
Comprehensive General Liability – Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in the amount not less than five million dollars ($5,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. If general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
Contractor’s general liability policies shall be primary and shall not seek contribution from the City’s coverage and be endorsed using Insurance Services Office from CG 20 10 (or equivalent) to provide that City and its officers, officials, employees and agents shall be additional insureds under such policies. The general liability policy must provide contractual liability coverage for Contractor’s indemnities.
Comprehensive Automobile Liability – Contractor shall provide auto liability coverage for automobiles using ISO Business Auto Coverage from CA 00 01 (or equivalent) with a limit of no less than five million dollars $5,000,000 combined single limit per accident for bodily injury and property damage (include coverage for Owned, Hired and Non‐owned vehicles).
Agenda Item #8.1:
43 Environmental Liability/Pollution - $2,000,000 per occurrence covering loss (including cleanup costs) that Contractor becomes legally obligated to pay as a result of claims for bodily injury, property damage, and cleanup costs (including expenses required by environmental laws or incurred by federal, state, or local governments or third parties). For the purposes of this subsection, “pollution conditions” includes the dispersal, discharge, release, or escape of any solid, liquid, gaseous, or thermal irritant or contaminant (such as smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, medical waste, and waste materials) into or upon land, any structure on land, the atmosphere, or any watercourse or body of water (including groundwater), provided the conditions are not naturally present in the environment in the amounts or concentrations discovered.
The liability coverage for pollution must provide contractual liability coverage, by endorsement or schedule, if necessary, for Contractor Indemnities.
Workers’ Compensation – Contractor shall maintain Worker’ Compensation Insurance and Employer’s Liability Insurance with limits of at least one million dollars ($1,000,000). Contractor shall meet requirements as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. Contractor shall submit to City , along with the certificate of insurance, a waiver of subrogation endorsement in favor of City, its officers, agents, employees, and volunteers.
2. The City and its officers, agents, employees, and volunteers shall be named as additional insured on all but the workers’ compensation and professional liability coverages.
3. Said policies shall remain in force through the life of this Agreement and, with the exception of professional liability coverage, shall be payable on a “per occurrence” basis unless the City specifically consents in writing to a “claims made” basis. For all “claims made” coverage, in the event that Contractor changes insurance carriers, Contractor shall purchase “tail” coverage or otherwise provide for continuous coverage covering the Term of this Agreement and not less than three (3) years thereafter. Proof of such “tail” or other continuous coverage shall be required at any time Contractor changes to a new carrier prior to receipt of any payments due.
4. Contractor shall declare all aggregate limits on the coverage before commencing performance of this Agreement.
Agenda Item #8.1:
44 5. The deductibles or self‐insured retentions are for the account of Contractor and shall be the sole responsibility of Contractor.
6. Each insurance policy shall provide or be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) calendar days prior written notice by certified mail, return receipt requested, to the City.
7. Insurance is to be placed with insurers with a current A.M. Best Company, Inc. rating of no less than A‐VII, unless otherwise approved by the City Attorney.
8. The policies shall cover all activities of Contractor, and its officers, employees, agents and volunteers, arising out of or in connection with this Agreement.
9. For any claims relating to this Agreement, Contractor’s insurance coverage shall be primary, including as respects the City and each City, and its officers, agents, employees, and volunteers. Any insurance maintained by the City shall apply in excess of, and not contribute with, insurance provided by Contractor’s insurance policies set forth herein.
10. Contractor shall waive all rights of subrogation against the City and its officers, employees, agents, and volunteers.
11. Contractor shall ensure all Subcontractors performing Collection or Disposal are insured by providing evidence that either:
(1) Contractor is maintaining insurance required by this Chapter covering the activities of Subcontractors, or
(2) those Subcontractors are maintaining that insurance.
At the request of City, Contractor will promptly provide him with copies of evidence of Subcontractor insurance coverage within 10 days of being insured and/or within 10 days of the request, whichever occurs first.
C. Evidence of Coverage. Contractor shall furnish the City with certificates of insurance, original endorsements, additionally insured endorsements, schedules, waivers of subrogation evidencing compliance with the insurance requirements above and other evidence of coverage as required by this Agreement and/or requested by and acceptable to at the City, at the following times:
(1) on or before the Commencement Date,
(2) promptly upon renewal of policies, and
Agenda Item #8.1:
45 (3) within 10 days of the City’s request.
The certificates or endorsements are to be signed by a Person authorized by that insurer to bind coverage on its behalf. All certificates or endorsements are to be received by, and are subject to the approval of, the City Attorney before work commences.
1. Endorsements: Contractor must provide copies of the following endorsements or other documentation satisfactory to the City:
(1) additional insured endorsement to each liability policy, explicitly adding the City and their respective "officers and employees" as insured; (2) waiver of subrogation; and
(3) insurance is primary and not contributing with any other insurance or selfinsurance programs maintained by the City or their respective officers and employees.
2. Schedules: Contractor must provide schedules or other evidence that liability policies provide contractual liability coverage for indemnities, such as listing this Agreement as an "insured contract”.
3. Signature Verification. At the request of City, Contractor must provide documentation verifying that the individual signing or countersigning the certificates, policies, endorsements, or other evidence of insurance coverage is authorized to do so and identifies his or her company affiliation and title. The City may require complete, certified copies of Contractor’s insurance policies at any time.
D. Renewals. During the Term of this Agreement, Contractor shall furnish the City with certificates or original endorsements reflecting renewals, changes in insurance companies, and any other documents reflecting the maintenance of the required coverage throughout the entire Term of this Agreement. The certificates or endorsements are to be signed by a Person authorized by that insurer to bind coverage on its behalf.
E. Workers' Compensation. Contractor shall provide workers’ compensation coverage as required by State law, and prior to the Commencement Date pursuant to this Agreement, Contractor shall file the following statement with the City:
“I am aware of the provisions of Paragraph 3700 of the Labor Code that require every employer to be insured against liability for workers' compensation or to undertake self‐insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing any services required by this Agreement.
Agenda Item #8.1:
46 The Person executing this Certificate on behalf of Contractor affirmatively represents that she/he has the requisite legal authority to do so on behalf of Contractor, and both the Person executing this Agreement on behalf of Contractor and Contractor understand that the City is relying on this representation in entering into this Agreement.”
F. Notice of Claims. If any Person makes a claim against Contractor, or any Subcontractors or subcontractors, exceeding the amount of any deductibles or selfinsured retentions, Contractor will promptly notify the City.
G. Contractor Compliance. Contractor will comply with all requirements of its insurance policies and insurers.
10.3 PERFORMANCE BOND
Within seven (7) calendar days of the Commencement Date, Contractor shall file with the City a bond, payable to the City, securing Contractor’s performance of its obligations under this Agreement, and such bond shall be renewed annually if necessary, so that the performance bond is maintained always during the Term of this Agreement. The principal sum of the bond shall be $1,000,000 (or 3 months of gross receipts, whichever is higher) and shall be adjusted every three (3) years, so that the bond amount equals three (3) months of the prior Rate Year’s average annual Gross Receipts. The bond shall be executed as surety by a corporation authorized to issue surety bonds in the State of California that has a rating of A or better in the most recent edition of Best’s Key Rating Guide, and that has a record of service and financial condition satisfactory to the City. The bond shall be in a form reasonably approved by the City.
CHAPTER 11: DEFAULT AND REMEDIES
11.1 EVENTS OF DEFAULT
All provisions of this Agreement are considered and shall be material. Each of the following shall constitute an event of default, provided that it consists of, or is based on, acts or omissions that occur on or after the Commencement Date.
A. Fraud or Deceit. Contractor’s practice, or attempt to practice, any fraud or deceit upon the City.
B. Insolvency or Bankruptcy. Contractor becomes insolvent, unable, or unwilling to pay its debts, or upon issuance of an order for relief in favor of Contractor in a bankruptcy proceeding.
C. Failure to Maintain Coverage. Contractor fails to provide or maintain in full force and affect the Workers' Compensation, liability, or indemnification coverage as required by this Agreement.
Agenda Item #8.1:
47 D. Violations of Regulation. Contractor violates any orders or filings of any regulatory body having authority over Contractor relative to this Agreement, provided that Contractor may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach or default of this Agreement shall be deemed to have occurred unless and until the regulatory body or court determines Contractor violated such order or filing.
E. Violations of Applicable Law. Contractor has been found by a court of competent jurisdiction to be in violation of Applicable Law (other than criminal law) relative to this Agreement, provided that Contractor may contest any such finding by appropriate proceedings conducted in good faith, in which case no breach or default of this Agreement shall be deemed to have occurred until a final, nonappealable order has been issued.
F. Failure to Perform Direct Services. Contractor ceases to provide Collection, Transportation, Processing, and/or other services as required under this Agreement for a period of two (2) consecutive calendar days or more, for any reason within the control of Contractor.
G. Failure to Pay or Report. Contractor fails to make any payments to the City required under this Agreement including payment of City fees or Liquidated Damages or fails or refuses to provide the City with required information, reports, and/or records in a timely manner as provided for in this Agreement.
H. Acts or Omissions. Any other act or omission by Contractor which violates the terms, conditions, or requirements of this Agreement, the Act, as it may be amended from time to time, or any law, statute, ordinance, order, directive, rule, or regulation issued thereunder and which is not corrected or remedied within the time set in a written notice of the violation or any extension granted thereto.
I. False, Misleading, or Inaccurate Statements. Any representation or disclosure made to the City by Contractor in connection with or as an inducement to entering into this Agreement, or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time such representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement; and any Contractor‐provided report containing a misstatement, misrepresentation, data manipulation, or an omission of fact or content explicitly defined by this Agreement, excepting non‐numerical typographical and grammatical errors.
J. Seizure or Attachment. There is a seizure of, attachment of, or levy on, some or all of Contractor’s operating equipment, including without limitation its equipment, maintenance or office facilities or any part(s) thereof which materially impacts Contractor’s ability to perform its obligations under this Agreement.
Agenda Item #8.1:
48 K. Suspension or Termination of Service. There is any termination or suspension of the transaction of business by Contractor related to this Agreement, including without limitation, due to labor unrest including strike, work stoppage or slowdown, sick‐out, picketing, or other concerted job action lasting more than two (2) calendar days.
L. Criminal Activity. Contractor, or its officers, managers, or employees are found guilty of Criminal Activity related directly or indirectly to performance of this Agreement or any other agreement held by Contractor with the City.
M. Assignment without Approval. Contractor transfers or assigns this Agreement without the express written consent of the City in accordance with Chapter 12.6.
N. Failure to Provide Proposal or Implement Change in Service. Contractor fails to provide a proposal for new services or changes to services or fails to implement a change in service as requested by the City as specified in Chapter 5.6.
11.2 CURE AND CORRECT PERIODS
Notwithstanding any other provision of this Chapter 11.2, Contractor shall be given ten (10) Business Days from written notice by the City to cure any default which, in the City’s sole opinion, creates a potential public health and safety threat.
Contractor shall be given ten (10) Business Days from written notification by the City to cure any default arising under subsections C, D, E, F, I, J, and K in Chapter 11.1; provided, however, that the City shall not be obligated to provide Contractor with a notice and cure opportunity if the Contractor has committed the same or similar breach/default within a twenty‐four (24) month period.
Contractor shall be given thirty (30) calendar days from written notification by the City to cure any default arising under subsections H and N in Chapter 11.1; provided, however, that the City shall not be obligated to provide Contractor with a notice and cure opportunity if the Contractor has committed the same or similar breach/default within a twenty‐four (24) month period.
Notwithstanding any provision in this Chapter 11.2 to the contrary, Contractor may request a longer period to cure any default specified herein by petitioning the City Council before the expiration of the otherwise-applicable cure period. The City Council shall hear the petition at its next regularly scheduled meeting or at a special meeting called for that purpose. If the City Council does not grant the petition for a longer cure period, Contractor shall be required to cure the default within the otherwise-applicable time period measured from the date of the determination of the City Council, or a shorter time period determined by the City Council in its sole discretion, so long as such shorter time period does not end prior to the end of the otherwise-applicable time period measured from the date of the default. If the City Council grants the petition for a longer cure period, it may provide a reasonable cure period in its sole discretion. The City Council may grant the petition for a longer cure period if Contractor provides Agenda Item #8.1:
49 reasonable evidence that the longer cure period is necessary to cure the default and that the cure is being pursued diligently.
11.3 CITY’S REMEDIES IN THE EVENT OF DEFAULT
Upon Contractor’s default, or if the default is not cured within the applicable time period, if any, the City may do any or a combination of the following:
A. Waiver of Default. The City may waive any event of default or may waive Contractor’s requirement to cure a default event if the City determines that such waiver would be in the best interest of the City. The City’s waiver of an event of default is not a waiver of future events of default that may have the same or similar conditions. Any waiver by the City hereunder shall be in writing and signed by the City after approval by the City Council.
B. Suspension of Contractor’s Obligation. The City may suspend Contractor’s performance of its obligations if Contractor fails to cure default, including within the time frame specified in Chapter 11.2, if applicable, until such time Contractor can provide assurance of performance in accordance with Chapter 11.8.
C. Liquidated Damages. The City may assess Liquidated Damages pursuant to Chapter 11.6 and Attachment E.
D. Termination. The City may, at its option, terminate this Agreement and/or hold a hearing of the City Council to determine whether this Agreement should be terminated. In the event the City decides to terminate this Agreement, the City shall serve twenty (20) calendar days’ written notice of its intention to terminate upon Contractor. If the City serves written notice under this Chapter 11.3.D., Contractor shall be entitled to request a hearing regarding the alleged breach by filing a written request with the City Council not more than fifteen (15) calendar days after notice of the City’s intent to terminate was served. If such request is received, the City shall set the matter for public hearing on a date not more than sixty (60) calendar days following receipt of such written request, and shall give Contractor at least fifteen (15) calendar days’ written notice of the time, date and place of the hearing. The City shall issue its written decision and findings within thirty (30) calendar days after the date of the close of the hearing.
Contractor shall have the right to contest any decision made by the City Council under this Chapter 11 by pursuing available remedies at law or in equity.
In the event the City exercises its right to terminate this Agreement, the City may, at its option, upon such termination, either directly undertake performance of the services or arrange with other Persons to perform the services with or without a written agreement. This right of termination is in addition to any other rights of the City upon a failure of Contractor to perform its obligations under this Agreement.
Agenda Item #8.1:
50 Contractor shall not be entitled to any further revenues from Collection operations authorized hereunder from and after the date of termination.
E. Other Available Remedies. The City’s election of one (1) or more of the remedies described herein shall not preclude the City from pursuing any other remedies in this Agreement or at law or in equity.
11.4 POSSESSION OF RECORDS UPON TERMINATION
In the event of termination for an event of default, Contractor shall furnish the City with immediate access to all its business records, including, without limitation, proprietary Contractor computer systems, related to its Customers, Collection routes, Disposal, and billing of accounts for services.
11.5 CITY’S REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE
The City’s right to terminate this Agreement under Chapter 11.2, and to take possession of Contractor’s records under Chapter 11.4, are not exclusive, and the City's termination of this Agreement and/or the imposition of Liquidated Damages shall not constitute an election of remedies. Instead, these rights shall be in addition to all other legal and equitable rights and remedies which the City has or may have.
By the nature of this Agreement, the urgency of timely, continuous, and high-quality service; the lead time required to effect alternative service; and, the rights granted by the City to Contractor, the remedy of damages for a breach hereof by Contractor is inadequate and the City shall be entitled to injunctive relief (including, but not limited to, specific performance).
11.6 PERFORMANCE STANDARDS AND LIQUIDATED DAMAGES
A. General. The Parties find that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by the City because of a breach by Contractor of its obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service, (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms, (iii) that exclusive services might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms, and (iv) the termination of this Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. Consequently, and without prejudice to the City’s right to treat such as an event of default, Contractor agrees to pay (as Agenda Item #8.1:
51 Liquidated Damages and not as a penalty) $500 per day for each day, in whole or in part, that Contractor violates any Applicable Law affecting health and safety; provided, however, that the City will refund to Contractor, within thirty (30) days of receiving a written request therefor, any Liquidated Damages assessed and paid if another governmental body or agency determines in writing that Contractor was not in fact in violation of the Applicable Law in question and on the day for which the Liquidated Damages were assessed.
B. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The Parties further acknowledge that consistent, reliable Collection and Disposal services are of utmost importance to the City that the City has considered and relied on Contractor’s representations as to its quality of service commitment in awarding this Agreement. The Parties recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The Parties further recognize that if Contractor fails to achieve the performance standards or fail to submit required documents in a timely manner, the City and its residents and businesses will suffer damages, and that it is, and will be, impractical and extremely difficult to ascertain and determine the exact amount of damages which the City will suffer. Therefore, without prejudice to the City’s right to treat such non‐performance as an event of default under this Agreement, the Parties agree that the Liquidated Damages amounts established in Attachment E of this Agreement represent a reasonable estimate of the amount of such damages considering all of the circumstances existing on the Effective Date of this Agreement, including the relationship of the sums to the range of harm to the City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical.
The Liquidated Damages in Chapters 11.6.A. and 11.6.B. are in addition to and without prejudice to the City’s right to treat such as an event of default. In addition to considering the reports submitted by Contractor pursuant to Chapter 7.3, the City may determine the occurrence of events giving rise to Liquidated Damages through the observation of its own employees or agents, through discussions with Customers, and through investigation of Customer complaints made directly to the City. Prior to assessing Liquidated Damages based on such observations or investigations, the City shall give Contractor notice of its intention to do so. The notice will also include a brief description of the incident(s)/non-performance.
Contractor may review (and make copies at its own expense) all non-confidential and disclosable information in the possession of the City relating to incident(s)/nonperformance. Contractor may, within ten (10) Business Days after receiving the notice, request a meeting with the City or his or her designee. Contractor may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. The City or his or her designee will provide Contractor with a written explanation of his or her determination on each incident(s)/non-performance prior to authorizing the assessment of Liquidated Agenda Item #8.1:
52 Damages. Within forty (40) Business Days after receiving the written explanation, if the intended assessment totals over ten thousand dollars ($10,000), Contractor may request a hearing thereon before the City Council. The City Council may affirm, modify, or reverse all or some of the Liquidated Damages so assessed. In such case, the decision of the City Council shall be final. In all other cases, the decision of the City shall be final.
C. Two‐Phase Performance Management. The Parties desire to minimize the time and cost involved in monitoring Contractor’s performance under this Agreement, particularly about the assessment of Liquidated Damages. Attachment E to this Agreement identifies each “Performance Area” for which the City desires to establish performance standards for this Agreement. Contractor’s performance within each “Performance Area” shall be primarily monitored using the “Performance Indicator” described for each. The City shall not assess Liquidated Damages for the “Specific Performance Measures” identified in Attachment E unless Contractor fails to meet the minimum standard for the “Performance Indicator” within the same “Performance Area”.
D. Amount. The City may assess Liquidated Damages for each calendar day or event, as appropriate, that Contractor is determined to be liable in accordance with this Agreement in the amounts specified in Attachment E subject to annual adjustment described below.
E. Timing of Payment. Contractor shall pay any Liquidated Damages assessed by the City within ten (10) Business Days of the date the Liquidated Damages are assessed. If they are not paid within the ten (10) Business Day period, the City may proceed against the performance bond required by the Agreement, order the termination of the rights or “franchise” granted by this Agreement, or all the above.
11.7 EXCUSE FROM PERFORMANCE
Each Party shall be excused from performing its respective obligations hereunder and from any obligation to pay Liquidated Damages to the extent and for the period of time such Party is prevented from so performing by reason of floods, fires, earthquakes, other acts of nature, epidemics, pandemics, war, civil insurrection, riots, acts of any government (including judicial action), and other similar catastrophic events which are beyond the control of and not the fault of the Party claiming excuse from performance hereunder. In the case of labor unrest or job action directed at a third party over whom Contractor has no control, the inability of Contractor to provide services in accordance with this Agreement due to the unwillingness or failure of the third party to: (i) provide reasonable assurance of the safety of Contractor’s employees while providing such services, or (ii) make reasonable accommodations with respect to Container placement and point of Delivery, time of Collection, Disposal, or other operating circumstances to minimize any confrontation with pickets or the number of Persons necessary to make Collections shall, to that limited extent, excuse performance. The foregoing excuse shall be conditioned on Contractor’s cooperation in performing Collection and/or Disposal services at Agenda Item #8.1:
53 different times and in different locations. Further, in the event of labor unrest, including, but not limited to, strike, work stoppage or slowdown, sickout, picketing, or other concerted job action conducted by Contractor’s employees or directed at Contractor, or a subsidiary, Contractor shall not be excused from performance. In such case, Contractor shall continue to provide a reasonably satisfactory level of performance during the pendency thereof, but Contractor shall not be required to adhere strictly to the specific requirements of this Agreement regarding routes, Collection times or similar matters; provided, however, that in no event shall more than seven (7) calendar days elapse between pickups of putrescibles from Residential and Commercial Customers.
The Party claiming excuse from performance shall, within two (2) calendar days after such Party has notice of such cause, give the other Party notice of the facts constituting such cause and asserting its claim to excuse under this Chapter.
If Contractor validly exercises its rights under this Chapter, the City hereby waives any claim against Contractor for any damages sustained thereby, including, without limitation, Liquidated Damages.
The partial or complete interruption or discontinuance of Contractor’s services caused by one or more of the events described in this Chapter shall not constitute a default by Contractor under this Agreement. Notwithstanding the foregoing, however, if Contractor is excused from performing its obligations hereunder for any of the causes listed in this Chapter for a period of thirty (30) calendar days or more, the City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) Business Days’ notice to Contractor, in which case the provisions of Chapters 11.2 and 11.3 shall apply.
11.8 RIGHT TO DEMAND ASSURANCES OF PERFORMANCE
The Parties acknowledge that it is of the utmost importance to the City and the health and safety of all the members of the public residing or doing business within the Service Area who will be adversely affected by interrupted waste management service, that there is no material interruption in services provided under this Agreement.
If Contractor: (i) is the subject of any labor unrest including work stoppage or slowdown, sick‐out, picketing or other concerted job action; (ii) is in default under this Agreement and fails to cure the default, including within the time frame specified in Chapter 11.2, if applicable, (iii) appears in the reasonable judgment of the City to be unable to regularly pay its bills as they become due; or (iv) is the subject of a civil or criminal judgment or order entered by a Federal, State, regional or local City for violation of an Applicable Law, and the City believes in good faith that Contractor’s ability to perform under the Agreement has thereby been placed in substantial jeopardy, the City may, at its sole option and in addition to all other remedies it may have, demand from Contractor reasonable assurances of timely and proper performance of this Agreement, in such form and substance as the City believes in good faith is reasonably necessary in the circumstances to evidence continued ability to perform under the Agreement. If Contractor fails or refuses to provide satisfactory assurances of timely and proper performance Agenda Item #8.1:
54 in the form and by the date required by the City, such failure or refusal shall be an event of default for purposes of Chapter 11.1.
CHAPTER 12: OTHER AGREEMENTS OF THE PARTIES
12.1 RELATIONSHIP OF PARTIES
The Parties intend that Contractor shall perform the services required by this Agreement as an independent contractor engaged by the City and neither as an officer nor employee of the City, nor as a partner or agent of, or joint venturer with, the City. No employee or agent of Contractor shall be, or shall be deemed to be, an employee or agent of the City. Contractor shall have the exclusive control over the manner and means of performing services under this Agreement, except as expressly provided herein. Contractor shall be solely responsible for the acts and omissions of its officers, employees, Subcontractors, subcontractors, and agents. Neither Contractor nor its officers, employees, Subcontractors, subcontractors, and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to the City’s employees by their employment with the City.
12.2 COMPLIANCE WITH LAW
Contractor shall always, at its sole cost, comply with all Applicable Laws.
12.3 GOVERNING LAW
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California.
12.4 JURISDICTION
Any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the Superior Court of California, County of Sonoma, which shall have exclusive jurisdiction over such lawsuits. With respect to venue, the Parties agree that this Agreement is made in and will be performed in the County of Sonoma.
12.5 BINDING ON SUCCESSORS
The provisions of this Agreement shall inure to the benefit of and be binding on the successors and permitted assigns of the Parties.
12.6 ASSIGNMENT
Contractor shall not assign its rights nor delegate or otherwise transfer its obligations under this Agreement to any other Person without the prior written consent of the City. Any such assignment made without the consent of the City shall be void and the attempted assignment shall constitute a material breach of this Agreement.
Agenda Item #8.1:
55 For purposes of this Chapter, "assignment" shall include, but not be limited to: (i) a sale, exchange or other transfer of substantially all of Contractor’s local, regional, and/or corporate assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of ten (10) percent or more of the local, regional, and/or corporate assets, stock, or ownership of Contractor to a Person (excluding any transfer of shares in Contractor by the owner of such shares to the member of his or her family or a revocable trust for the benefit of members of his or her family, to Contractor or to another owner of shares in Contractor) except that no cumulative sale, exchange, or transfer of shares may exceed twenty (20) percent during the Term of the Agreement (excluding any transfer of shares in Contractor by the owner of such shares to members of his or her family or a revocable trust for the benefit of members of his family, to Contractor or to another owner of shares in Contractor); (iii) any reorganization, consolidation, merger, recapitalization, stock issuance or re‐issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction to which Contractor or any of their shareholders is a party which results in a change of ownership or control of ten (10) percent or more of the value or voting rights in the local, regional, and/or corporate stock of Contractor (excluding any transfer of shares in Contractor by the owner of such shares to members of his or her family or a revocable trust for the benefit of members of his or her family, to Contractor or to another owner of shares in Contractor); (iv) divestiture of an Affiliate (e.g., trucking company, materials recovery facility, transfer station, etc.) used by Contractor to fulfill its obligations under this Agreement; and (v) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of local, regional, and/or corporate ownership and/or control of Contractor.
Contractor acknowledges that this Agreement involves rendering a vital service to the City’s residents and businesses, and that the City has selected Contractor to perform the services specified herein based on: (i) Contractor’s experience, skill, and reputation for conducting its Solid Waste, Recyclables, C&D and Organics management operations in a safe, effective, and responsible fashion, at all times in keeping with Applicable Laws, regulations, and good waste management practices; and, (ii) Contractor’s financial resources on a local, regional, and/or corporate level to maintain the required equipment and to support its indemnity obligations to the City under this Agreement. The City has relied on each of these factors, among others, in choosing Contractor to perform the services to be rendered by Contractor under this Agreement.
If Contractor requests the City’s consideration of and consent to an assignment, the City may deny or approve such request in its reasonable discretion and with or without reasonable conditions. No request by Contractor for consent to an assignment need be considered by the City if Contractor is in default of this Agreement. Contractor shall provide all information requested by the City regarding such request to facilitate the City’s determination hereunder.
12.7 NO THIRD PARTY BENEFICIARIES
This Agreement is not intended to, and will not be construed to, create any right on the part of any third party to bring an action to enforce any of its terms.
Agenda Item #8.1:
56 12.8 WAIVER
The waiver by any Party of any breach or violation of any provisions of this Agreement must be in writing to be effective and shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of or violation of the same or any other provision. The subsequent acceptance by any Party of any monies which become due hereunder shall not be deemed to be a waiver of any pre‐existing or concurrent breach or violation by any Party of any provision of this Agreement.
12.9 NOTICE PROCEDURES
All notices, demands, requests, proposals, approvals, consents, and other communications, except for emergency communications which may be accomplished by telephone or e-mail, which this Agreement requires, authorizes or contemplates, shall be in writing and shall either be personally delivered to a representative of the Parties at the address below, sent by nationally-recognized overnight courier or deposited in the United States mail, first class postage prepaid, addressed as follows:
If to City Designated Representative:
City of Sonoma
Attn: City Manager
#1 The Plaza
Sonoma, CA 95476
If to Contractor:
Sonoma Garbage Collectors
Attn: John Curotto
P.O. Box 400
El Verano, CA 95433
The address to which communications may be delivered may be changed from time to time by a notice given in accordance with this Chapter. Notice shall be deemed given on the day it is personally delivered, delivered by courier or, if mailed, three (3) calendar days from the date it is deposited in the mail.
12.10 REPRESENTATIVES OF CONTRACTOR
Contractor shall, by the Commencement Date, designate in writing a responsible officer who shall serve as the representative of Contractor in all matters related to this Agreement and shall inform the City in writing of such designation and of any limitations upon his or her authority to bind Contractor. The City acknowledges that no designated representative of Contractor has the authority to enter into, amend, make any major decision with respect to (including any rate setting procedure), or terminate this Agreement without the approval of Contractor’s Board of Directors. Notwithstanding the immediately preceding sentence, the City may rely upon action taken by such designated representative as actions of Contractor unless they are outside the scope of the authority delegated to him/her by Contractor as communicated to the City.
Agenda Item #8.1:
57 CHAPTER 13: MISCELLANEOUS AGREEMENTS
13.1 ENTIRE AGREEMENT
This Agreement is the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and discussions with respect to such subject matter. Each Party has cooperated in the drafting and preparation of this Agreement and this Agreement shall not be construed against any Party based on drafting. This Agreement may be amended only by an agreement in writing, signed by each of the Parties affected thereby.
13.2 SECTION HEADINGS
The Chapter headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions.
13.3 REFERENCES TO LAWS
All references in this Agreement to laws and regulations shall be understood to include such laws as they may be subsequently amended or recodified, unless otherwise specifically provided herein.
13.4 AMENDMENTS
This Agreement may not be modified or amended in any respect except in writing signed by the Parties affected thereby.
13.5 SEVERABILITY
If any non‐material provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement, which shall be enforced as if such invalid or unenforceable provision had not been contained herein.
13.6 COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be considered an original.
13.7 ATTACHMENTS
Each of the Attachments identified as Attachment “A” through “F” is attached hereto and incorporated herein and made a part hereof by this reference. In the event of a conflict between the terms of this Agreement and the terms of an Attachment, the terms of this Agreement shall control.
Agenda Item #8.1:
58 LIST OF ATTACHMENTS
A – Definitions
B – Scope of Services – Details
B1 – SF Service
B2 – MF Service
B3 – Commercial Service
B4 - City Service Levels and Facility Locations
C – Reporting Requirements
D – Contractor’s Compensation and Rate Setting
E - Performance Standards and Liquidated Damages
F – Corporate Secretary’s Certificate
IN WITNESS WHEREOF, this Agreement is entered by the parties hereto in Sonoma County, California as of the Effective Date:
CITY OF SONOMA
(the “City”)
By: _________________________________
Mayor John Gurney
ATTEST:
By: _________________________________
Rebekah Barr, City Clerk
APPROVED AS TO FORM:
By: _________________________________
David J. Ruderman, City Attorney
SONOMA GARBAGE COLLECTORS
(“Contractor”)
By: _________________________________
_________________________________
Print Name
_________________________________
Title
Agenda Item #8.1:
59 ATTACHMENT A: DEFINITIONS
The definitions set forth in this Attachment A shall govern the interpretation of this Agreement.
Abandoned Solid Waste
“Abandoned Solid Waste” means Solid Waste, Recyclable Materials, Organic Materials, Excluded Waste, Bulky Items, or other materials that have been abandoned, littered, or illegally dumped in the public right of way or on public property.
AB 341
“AB 341” means the California Jobs and Recycling Act of 2011 (Chapter 476, Statues of 2011 [Chesbro, AB 341]), also commonly referred to as “AB 341”, and all regulations promulgated thereunder, as amended, supplemented, superseded, and replaced from time to time.
AB 876
“AB 876” means Chapter 593, Statutes of 2015 [McCarty, AB 876] relating to compostable organics, commonly referred to as “AB 876”, and all regulations promulgated thereunder, as amended, supplemented, superseded, and replaced from time to time.
AB 939
“AB 939” means the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code), also commonly referred to as "AB 939", and all regulations promulgated thereunder, as amended, supplemented, superseded, and replaced from time to time.
AB 1826
“AB 1826” means Chapter 727, Statues of 2014 [Chesbro, AB 1826] relating to recycling of organic waste, commonly referred to as “AB 1826”, and all regulations promulgated thereunder, as amended, supplemented, superseded, and replaced from time to time.
AB 2176
“AB 2176” means Chapter 879, Statutes of 2004 [Montanez, AB 2176] relating to large venue and large event recycling programs, commonly referred to as “AB 2176”, and all regulations promulgated thereunder, as amended, supplemented, superseded, and replaced from time to time.
Affiliate
“Affiliate” means all businesses (including corporations, limited and general partnerships and sole proprietorships) that are directly or indirectly related to Contractor by virtue of direct or indirect ownership interest or common management. They shall be deemed to be "Affiliated Agenda Item #8.1:
60 with" Contractor and included within the term "Affiliates" as used herein. An Affiliate shall include: (i) a business in which Contractor has a direct or indirect ownership interest, (ii) a business that has a direct or indirect ownership interest in Contractor and/or (iii) a business that is also Owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in Contractor. For the purposes of this definition, “ownership” means ownership as defined in the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the date hereof, provided that ten percent (10%) shall be substituted for fifty percent (50%) in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be disregarded and percentage interests shall be determined on the basis of the percentage of voting interest or value that the ownership interest represents.
Agreement
“Agreement” means this Agreement between the City and Contractor, including all attachments, and any future amendments hereto.
Applicable Law
“Applicable Law” means all Federal, State, County, and local laws, regulations, rules, orders, judgments, degrees, permits, approvals, or other requirements of any governmental agency having jurisdiction over the Collection, Transportation, Processing or Disposal of Franchised Materials and/or Excluded Waste that are in force on the Effective Date and as may be enacted, issued or amended during the term of this Agreement. Without limiting the foregoing, Applicable Law includes Environmental Laws and the Act, and all rules and regulations promulgated thereunder.
Approved Disposal Facility
“Approved Disposal Facility” means the Central Landfill, 500 Mecham Road, Petaluma, CA, 94952 or such other Disposal facility preapproved by the City in writing and used by Contractor in accordance with this Agreement.
Approved Organics Facility
“Approved Organics Facility” means Napa Recycling & Waste Services, 820 Levitin Way, Napa, CA, 94558, or such other facility preapproved by the City in writing and used by Contractor in accordance with this Agreement.
Approved Recycling Facility
“Approved Recycling Facility” means Napa Recycling & Waste Services, 820 Levitin Way, American Canyon, or such other facility preapproved by the City in writing and used by Contractor in accordance with this Agreement.
Agenda Item #8.1:
61 Bin
“Bin” means a Container with capacity of approximately two (2), four (4), or six (6) yards, with a hinged lid, and with wheels (where appropriate), that is serviced by a front end-loading Collection vehicle. Contractor shall not be required to provide any other size Bins. Contractor may require a customer to use a smaller Bin than the one requested by the customer, if Contractor has reason to believe the customer would fill the larger Bin with heavy material such that the Bin would become overweight.
Biomedical Waste
"Biomedical Waste" means Discarded Materials which are likely to be infectious, pathological or biohazardous, originating from residences, hospitals, public or private medical clinics, departments of research laboratories, pharmaceutical industries, blood banks, forensic medical departments, mortuaries, veterinary facilities and other similar facilities and includes (without limitations) equipment, instruments, utensils, fomites, laboratory wastes (including pathological specimens and fomites attendant thereto), surgical facilities, equipment, bedding and utensils (including pathological specimens and disposal fomites attendant thereto), sharps (hypodermic needles, syringes, etc.), dialysis unit waste, chemotherapeutic waste, animal carcasses, offal and body parts, biological materials (vaccines, medicines, etc.), and other similar materials, but excluding any such Discarded Materials which are reasonably determined by Contractor to be noninfectious, non-pathological and non-biohazardous.
Biosolids
“Biosolids” means solid, semisolid, or liquid residues generated during primary, secondary, or advanced treatment of domestic sanitary sewage.
Bulky Item
"Bulky Item" means discarded appliances, furniture, tires, carpets, mattresses, and similar large items that require special Collection due to their size or nature but can be Collected without the assistance of special loading equipment (such as forklifts or cranes) and without violating vehicle load limits. It does not include abandoned automobiles, large auto parts, or trees.
Business Days
“Business Days” mean days during which the City’s offices are open to do business with the public.
CalRecycle
“CalRecycle” means the California Department of Resources Recycling and Recovery or its successor.
Agenda Item #8.1:
62 Cart
“Cart” means a plastic Container with a hinged lid and wheels that is serviced by an automated or semi-automated Collection vehicle. A Cart has capacity of, 32-, 64- or 96-gallons (or similar volumes).
Change in Law
“Change in Law” means any of the following events or conditions that has a material and adverse effect on the performance by either Party of its respective obligations under this Agreement (except for payment obligations):
(i) The enactment, adoption, promulgation, issuance, modification, or written change in administrative or judicial interpretation of, any Applicable Law on or after the Effective Date; or
(ii) The order or judgment of any governmental body, on or after the Effective Date, to the extent such order or judgment is not the result of willful or negligent action, error or omission or lack of reasonable diligence of the City or of Contractor, whichever is asserting the occurrence of a Change in Law; provided, however, that the contesting in good faith or the failure in good faith to contest any such order or judgment shall not constitute or be construed as such a willful or negligent action, error or omission or lack of reasonable diligence.
City
“City” means the City Manager or designated City employee.
City Community Event
“City Community Event” means an organized activity on City property (e.g., Depot Park or The Plaza) that is open to the general public and is sponsored by the City. This definition does not include non-City sponsored Special Events, which is an approved organized activity conducted by a sponsoring organization or person for a common or collective use, purpose or benefit which involves the use of, or has an impact on, City property or facilities but is not necessarily open to the general public.
Collect, Collected, Collection
"Collect,", “Collected” or "Collection" means Contractor taking physical possession of, and removing Discarded Materials, whether by manual, semi-automated or automated means, and transporting such materials, pursuant to this Agreement.
Commencement Date
“Commencement Date” means July 1, 2024, when Contractor is to begin providing Collection and related services required by this Agreement.
Agenda Item #8.1:
63 Commercial, Commercial Property
“Commercial” or “Commercial Property” means property used for conducting business thereon, including, but not limited to, retail sales, services, wholesale operations, manufacturing and industrial operations, school facilities (both public and private), other institutions, and governmental agencies, but excluding businesses conducted upon Single-Family Property (as defined herein).
Compactor, Compaction
“Compactor”, “Compaction” means a mechanical apparatus that compresses materials, the Container that holds the compressed materials, and/or the process. Compactors include Bin Compactors of any size serviced by front-loading Collection vehicles and Drop Box Compactors of any size serviced by Drop Box or roll-off Collection vehicles.
Compost
“Compost” means the resulting material from Composting.
Composting
“Composting” means the controlled or uncontrolled biological decomposition of organic constituents such that the resulting material meets the maximum acceptable metal concentration limits specified in Section 17868.2 and pathogen reduction requirements specified in Section 17868.3 of Title 14, California Code of Regulations Chapter 3.1.
Construction and Demolition Debris (C&D)
“Construction and Demolition Debris” and “C&D” means materials resulting from construction, renovation, remodeling, repair, or demolition operations relating to or resulting from a building, structure, pavement or other improvement, including concrete, brick, bituminous concrete, rubble, wood and masonry, composition roofing and roofing paper, steel, and other metals such as copper, but excluding liquid wastes and Hazardous Wastes.
Containers
“Containers” mean Bins, Carts, Compactors, and Drop Boxes.
Contamination
“Contamination” means there is no more than ten (10) percent by volume of the “wrong” materials placed in a Container. Thus, for instance a Solid Waste Container is Contaminated if it contains a total by volume of ten (10) percent or more Recyclables and Organic Waste, and a Recyclables Container is Contaminated if it contains a total by volume of ten (10) percent or more Solid Waste and Organic Waste.
Agenda Item #8.1:
64 Contractor’s Compensation
“Contractor Compensation” means the monetary compensation received by Contractor in return for providing services in accordance with this Agreement as described in Chapter 9.
Criminal Activity
“Criminal Activity” means any of the following events or circumstances:
1. Convictions. The entry against Contractor of a criminal conviction or a permanent mandatory or prohibitory injunction from a court, municipality or regulatory agency of competent jurisdiction based on acts taken in his, her or its official capacity on behalf of Contractor with respect to:
a. Fraud or criminal offense in connection with obtaining, attempting to obtain, procuring or performing a public or private agreement related to municipal solid waste services of any kind (including Collection, hauling, Transfer, Processing, Composting or Disposal), including this Agreement or any amendment thereto; or
b. Bribery or attempting to bribe a public officer or employee of a local, State, or federal agency; or
c. Embezzlement, extortion, racketeering, false claims, false statements, forgery, falsification or destruction of records, obstruction of justice, knowingly receiving stolen property, theft, or misprision (failure to disclose) of a felony; or
d. Unlawful disposal of Hazardous Waste or Designated Waste the occurrence of which any of Contractor Party knew or should have known; or e. Violation of antitrust laws, including laws relating to price-fixing, bid-rigging and sales and market allocation, and of unfair and anti-competitive trade practices laws, including with respect to inflation of Solid Waste Collection, Transportation, Processing fees, or Disposal Fees; or
f. Violation of securities laws; or
g. Felonies.
Customer
“Customer” means the Person whom Contractor submits its billing invoice to and collects payment from for Collection services provided to a Premises. The Customer is not necessarily the owner of the Premises and may be either the Person who occupies the Premises or the Owner of the Premises.
Customer Type
“Customer Type” means the Customer’s sector category including, but not limited to, Single‐Family, Multi‐Family, Commercial, C&D, Drop Box, and the City of Sonoma.
Agenda Item #8.1:
65 Day
“Day” means calendar day unless otherwise specified in this Agreement.
Drop Box
“Drop Box” means open-top Containers with a typical capacity of eight (8) to forty (40) cubic yards that are serviced by a roll-off Collection vehicle. Drop Boxes that contain primarily putrescible materials require a lid.
Discarded Materials
“Discarded Materials” means Solid Waste, Recyclable Materials, Organic Materials, and C&D placed by a Generator in a receptacle and/or at a location for the purposes of Collection by Contractor, excluding Excluded Waste.
Disposal
“Dispose” “Disposal” or “Disposed” mean the ultimate disposition of unprocessed Solid Waste intended for Disposal, and Residue.
Divert, Diversion
“Divert” or “Diversion (or any variation thereof)” means to prevent Recyclables and Organic Waste from Disposal at landfill or transformation facilities, (including facilities using incineration, pyrolysis, distillation, gasification, or biological conversion methods) through Source Reduction, reuse, Recycling, and Composting, as provided in Section 41780-41786 of AB 939, as AB 939 may be hereafter amended or superseded.
Diversion is a broad concept that is to be inclusive of material handling and Processing changes that may occur over the Term including, but not limited to, changes in standard industry practice or implementation of innovative (but not necessarily fully proven) techniques or technology that reduce Disposal risk, decrease costs and/or are for other reasons deemed desirable by the City.
Effective Date
“Effective Date” means June 19, 2024.
Electronic Waste
“Electronic waste” or “E-Waste” means discarded electronic equipment including, but not limited to, televisions, computer monitors, central processing units (CPUs), laptop computers, computer peripherals (including external hard drives, keyboards, scanners, and mice), printers, copiers, facsimile machines, radios, stereos, stereo speakers, VCRs, DVDs, camcorders, microwaves, telephones, cellular telephones, and other electronic devices. Some E-Waste or components thereof may be Hazardous Waste or include Hazardous Substances and thus require special handling, Processing, or Disposal.
Agenda Item #8.1:
66 Environmental Laws
"Environmental Laws" means all federal and State statutes, and county and Regional Agency ordinances concerning public health, safety and the environment including, by way of example and not limitation, AB 341, AB 939, AB 1826, SB 1383, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. § 6902 et seq.; the Federal Clean Water Act, 33 U.S.C. § 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.; the California Hazardous Waste Control Act, California Health and Safety Code § 25100 et seq.; the Carpenter-Presley-Tanner Hazardous Substance Account Act, California Health and Safety Code § 25300 et seq.; the Porter-Cologne Water Quality Control Act, California Water Code § 13000 et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code § 25249.5 et seq.; as currently in force or as hereafter amended, and all rules and regulations promulgated thereunder.
Excluded Waste
“Excluded Waste” means Hazardous Substances, Hazardous Waste, Biomedical Waste, volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material, waste that Contractor reasonably believes would, as a result of or upon Disposal, be a violation of local, State or Federal law, regulation or ordinance, including land use restrictions or conditions, waste that cannot be Disposed of in Class III landfills, waste that in Contractor’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Contractor or Regional Agency to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after implementation of programs for the safe Collection, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code.
Food Waste
"Food Waste" means a subset of Organic Waste including: (i) all kitchen and table food waste scraps, and animal, or vegetable, fruit, grain, dairy or fish waste that attends or results from the storage, preparation, cooking or handling of foodstuffs, with the exception of animal excrement, (ii) paper waste contaminated with putrescible material, and (iii) biodegradable food service ware designed to disintegrate and biodegrade quickly.
Franchised Materials
“Franchised Materials” means Solid Waste, Recyclable Materials, Construction and Demolition Debris, and Organic Materials.
Agenda Item #8.1:
67 Generator or Generate
“Generator” means any Person whose act or process produces Discarded Materials as defined in the Public Resources Code, or whose act first causes any of these items to become subject to regulation, and “Generate” means the act or process that produces such Materials.
Gross Receipts
“Gross Receipts” means total cash receipts collected from Customers by Contractor for the provision of services pursuant to this Agreement, without any deductions. Gross Receipts do not include revenues from the sale of Recyclable Materials or other Franchised Materials.
Hazardous Substance
“Hazardous Substance” means any of the following: (a) any substances defined, regulated or listed (directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Wastes", "toxic waste", "pollutant" or "toxic substances" or similarly identified as hazardous to human health or the environment, in or pursuant to: (i) the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of 1980, 42 USC §9601 et seq. (CERCLA); (ii) the Hazardous Materials Transportation Law, 49 USC §5101, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) the Clean Water Act, 33 USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, and 25316; (vi) the Clean Air Act, 42 USC §7901 et seq.; and, (vii) California Water Code §13050; (b) any amendments, rules or regulations promulgated there under to such enumerated statutes or acts currently existing or hereafter enacted; and, (c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any other Applicable Law currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl’s (PCBs), petroleum, natural gas, and synthetic fuel products, and by-products.
Hazardous Waste
“Hazardous Waste” means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State in Health and Safety Code §25110.02, §25115, and §25117 or in the future amendments to or recodifications of such statutes or identified and listed as Hazardous Waste by the U.S. Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seq.), all future amendments thereto, and all rules and regulations promulgated thereunder.
Holidays
“Holidays” shall mean the observed holiday for New Year’s Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
Agenda Item #8.1:
68 Household Batteries
“Household Batteries” means disposable or rechargeable dry cells such as those referred to as A, AA, AAA, B, C, D, 9-volt, button type or those from laptop computers or cell phones, and commonly used as power sources for consumer electronics devices, including but not limited to zinc oxide, nickel metal hydride, alkaline, mercury, silver oxide, lithium, lithium ion and carbon zinc, but excluding automotive lead acid batteries.
Household Hazardous Waste (HHW)
“Household Hazardous Waste” or “HHW” means Hazardous Waste generated at Single-Family Properties. HHW includes, but is not limited to: paint, stain, varnish, thinner, adhesives, auto products such as old fuel, batteries, household batteries, fluorescent bulbs, tubes, cleaners and sprays, pesticides, fertilizers and other garden products, needles, syringes, and lancets.
Liquidated Damages
“Liquidated Damages” means the amounts due by Contractor for failure to meet specific quantifiable standards of performance as described in Chapter 11.6 and Attachment G.
Mandatory Collection
“Mandatory Collection” means Collection service(s) that is(are) mandatory within the City’s boundaries pursuant to Chapters 7.08 and/or 7.10 of the Sonoma Municipal Code as amended or renumbered from time to time.
Mixed C&D
“Mixed C&D” means C&D materials which have not been Source Separated into homogeneous material streams of like materials and which require sorting and Processing prior to Recycling.
Multi-Family, Multi-Family Property, MFD
“Multi‐Family” means any Residential Premises, other than a Single‐Family Premises, with five (5) or more dwelling units used for Residential purposes (regardless of whether residence therein is temporary or permanent) that receive centralized Collection service for all units on the Premises which are billed to one (1) Customer at one (1) address.
Non-Collection Notice
"Non-Collection Notice" means a form, as approved in advance by the City, used to notify Service Recipient(s) of the reason for the non-collection of materials set out by the Service Recipient(s) for Collection by Contractor pursuant to this Agreement.
Agenda Item #8.1:
69 Organic Materials
“Organic Materials” means Solid Waste containing materials originated from living organisms and their metabolic waste products, including but not limited to Yard Trimmings Food Waste, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges as defined in 14 CCR Section 18982(a)(46), as amended or renumbered from time to time, unless specifically defined in this Agreement.
Owner
“Owner” means the Person(s) holding legal title to real property and/or any improvements thereon and shall include the Person(s) listed on the latest equalized assessment roll of the County Assessor.
Party, Parties
“Party”, “Parties” refers to the City and Contractor, individually or together.
Person(s)
“Person(s)” means any individual, firm, association, organization, partnership, corporation, trust, joint venture, or public entity.
Premises
“Premises” means any land or building in the Service Area where Solid Waste, Recyclable Materials, Organic Materials, or C&D are generated or accumulated.
Processing
“Process” or “Processing” mean to sort, separate, prepare, treat, bale or otherwise package, compost, cure, or to take other steps necessary to re-use materials, or to remanufacture, reconstitute, and or create new products from Discarded Materials. Processing includes reuse, Recycling and Composting, and excludes energy conversion processes except by prior approval of the City.
Public Containers
"Public Containers" means City-owned Containers maintained by the City for use by the public located on or near streets and public rights-of-way and other public places in the Service Area as specified by the City for placement of Discarded Materials generated by the public.
Rate
“Rate” means the maximum amount, expressed as a dollar unit, approved by the City that Contractor may bill a Customer for providing services under this Agreement. The Rates approved by the City are the maximum Rates that Contractor may charge a Customer, and Agenda Item #8.1:
70 Contractor may, in its sole discretion, charge any amount up to and including the maximum Rate approved by the City.
Rate Year
“Rate Year” means a 12-month period, beginning with July 1 and concluding twelve (12) months later, for which Contractor’s Compensation is calculated. “Rate Year One” means the 12-month period beginning July 1, 2024 and ending June 30, 2025.
Recyclable Materials
"Recyclable Materials” or “Recyclables” means those Discarded Materials that: Generators set out in Recyclables Containers for Collection for the purpose of Recycling by Contractor that are at least ninety percent (90%) Recyclable and that exclude Excluded Waste. No Discarded Materials shall be considered Recyclable Materials unless such material is separated from Solid Waste and Organic Materials. Recyclable Materials shall include, but not be limited to:
newspaper (including inserts, coupons, and store advertisements); mixed paper (including office paper, computer paper, magazines, junk mail, catalogs, brown paper bags, brown paper, paperboard, paper egg cartons, telephone books, grocery bags, colored paper, construction paper, envelopes, legal pad backings, shoe boxes, cereal and other similar food boxes); chipboard; corrugated cardboard; glass containers, all colors; aluminum (including beverage containers, foil, food containers, small pieces of scrap metal); scrap metal weighing less than 10 pounds (without cords or chains and fitting into the container); steel, tin or bi-metal cans; and plastic containers; subject in each case to changes in accordance with Attachment B.
Recycle, Recycling
“Recycle” or “Recycling” means the process of collecting, sorting, cleansing, treating and reconstituting materials that would otherwise be disposed of in a landfill, and returning them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. Recycling does not include Transformation.
Residential, Residential Property
“Residential”, “Residential Property” means on, of or pertaining to property used for residential purposes, irrespective of whether such dwelling units are rental units or owner-occupied, or whether commercial activities are conducted thereon or therefrom, provided that such commercial activities are permitted under applicable zoning regulations and do not consist of the primary use of the property.
Residue
“Residue” means unrecoverable materials remaining after Processing Discarded Materials for which there are no other options for viable use and which therefore must be Disposed of in a landfill.
Agenda Item #8.1:
71 Reusable Materials
“Reusable Materials” means items that are capable of being used again after minimal Processing. Reusable Materials may be Collected Source Separated or recovered through a Processing Facility.
SB 1383
“SB 1383” means State of California Senate Bill 1383, Short-lived Climate Pollutants: Organic Waste Reductions, approved September 19, 2016, and the regulations implementing the law, Title 14, Code of California Regulations (CCR), Chapter 12.
Service Area
“Service Area” means all areas within the City’s boundaries.
Service Level
“Service Level” refers to the size of a Customer’s Container and the frequency of Collection service.
Single-Family, Single-Family Property, SFD
“Single‐Family” means, notwithstanding any contrary definition in the City of Sonoma’s municipal code, any detached or attached house or residence designed or used for occupancy by one (1) family, provided that Collection service feasibly can be provided to such Premises as an independent unit, and the Owner or occupant of such independent unit is billed directly for the Collection service. Single‐Family includes Residential units of a duplex, tri‐plex, or four‐plex Residential structure provided that the owner or Occupant of each unit is separately billed for its specific service level.
Solid Waste
“Solid Waste” means solid waste as defined in California Public Resources Code, Division 30, Part 1, Chapter 2, §40191 and regulations promulgated thereunder. Excluded from the definition of Solid Waste are Excluded Waste, Source Separated C&D, Source Separated Recyclable Materials, Source Separated Organic Materials, and radioactive waste. Notwithstanding any provision to the contrary, Solid Waste may include de minimis volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after implementation of programs for the safe Collection, Recycling, treatment, and Disposal of Household Hazardous Waste in compliance with Section 41500 and 41802 of the California Public Resources Code as may be amended from time to time. Solid Waste includes salvageable materials only when such materials are included for Collection in a Solid Waste Container.
Agenda Item #8.1:
72 Source Reduction
“Source Reduction” means any action which causes a net reduction in the generation of Solid Waste. It includes, but is not limited to, reducing the use of non-recyclable materials, replacing Disposal materials and products with Reusable materials and products, reducing packaging, reducing the amount of Yard Trimmings generated, and increasing the efficiency of the use of paper, cardboard, glass, metal, plastic, and other materials. Source Reduction does not include steps taken after the material becomes Solid Waste or actions which would impact air or water resources in lieu of land, including, but not limited to, Transformation.
Source-Separated
“Source Separated” means the segregation from solid waste, by the Generator, of materials designated for separate Collection for some form of Recycling, Composting, recovery, or reuse.
A load of source separated materials that contains more than ten (10) percent solid waste shall not be considered source separated.
State
“State” means the State of California.
Subcontractor(s)
“Subcontractor(s)” means a Person that has entered into a contract, express or implied, with Contractor for the performance of an act that is necessary for Contractor’s fulfillment of its obligations for providing service under this Agreement.
Term
“Term” means the Term of this Agreement as provided for in Chapter 4.1.
Tier One Commercial Edible Food Generator
“Tier One Commercial Edible Food Generator”, defined within SB 1383, means a commercial Edible Food generator that has an SB 1383 compliance deadline of January 1, 2022. Tier One Generators may include supermarkets; grocery stores with a total facility size equal to or greater than 10,000 square feet; food service providers that serve institutional, governmental, commercial, or industrial locations; food distributors; and/or wholesale food vendors.
Tier Two Commercial Edible Food Generator
“Tier Two Commercial Edible Food Generator”, defined within SB 1383, means a commercial Edible Food generator that has an SB 1383 compliance deadline of January 1, 2024. Tier Two Generators may include restaurants with 250 or more seats or a total facility size equal to or greater than 5,000 square feet; hotels with an on-site food facility and 200 or more rooms; health facilities with an on-site food facility and 100 or more beds; large venues (permanent venue facilities that annually seat or serve an average of more than 2,000 individuals within the Agenda Item #8.1:
73 grounds of the facility per day of operation); large events (events that serve an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event); state agencies; and/or local education agencies.
Transformation
“Transformation” means incineration, pyrolysis, distillation, gasification, or biological conversion other than Composting.
Transportation
“Transportation” means the act of transporting or state of being transported.
Universal Waste
“Universal Waste” or “U-waste” means all wastes defined by Title 22, Subsections 66273.1 through 66273.9 of the California Code of Regulations or successor regulations. These include, but are not limited to, Household Batteries, fluorescent light bulbs, mercury switches, and EWaste.
Unserviceable
“Unserviceable” means that a cart or container that is not in good condition and needs to be replaced by Contractor. A cart or containers may be deemed unserviceable by the City, Customer, or Contractor.
Voluntary Collection
“Voluntary Collection” means Collection service(s) that is(are) voluntary within the City’s boundaries pursuant to Chapters 7.08 and 7.10 of the Sonoma Municipal Code as amended or renumbered from time to time.
Yard Trimmings
“Yard Trimmings” means those Discarded Materials that will decompose and/or putrefy, including, but not limited to, green trimmings, grass, weeds, leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees, small pieces of unpainted and untreated wood, and other types of organic waste. Yard Trimmings is a subset of Organic Waste. Yard Trimmings placed for Collection may not exceed six (6) inches in diameter and three (3) feet in length and must fit within the Contractor-provided Container.
Agenda Item #8.1:
74 ATTACHMENT B: SCOPE OF SERVICES – DETAILS
The following Attachments (B1 through B4) describe the programs which, in aggregate, represent the direct services to be performed under this Agreement by Contractor.
Each of the following Attachments (B1 through B4) present the programs to be provided to each Customer Type by Contractor. Within each program description are specific requirements for the:
• Type and size of Containers or Service Level to be offered by Contractor under each program;
• Frequency of service to be offered by Contractor to Customers; • Location of service, including an indication of whether additional charges may apply if a Customer selects a location that is costlier to serve (e.g., back‐yard service); • Materials that are acceptable or prohibited within the program; • Provision of additional services to the Customer if the standard Service Levels are inadequate, either on a regular or periodic basis, and an indication of whether additional charges may apply; and/or
• Other requirements and considerations of the program.
Contractor shall provide the services for each program described in accordance with the specific program requirements detailed in Attachments B1 through B4 and Contractor shall promote such programs using the public education and outreach methods described in the Agreement.
Agenda Item #8.1:
75 ATTACHMENT B1: SINGLE-FAMILY DWELLING (SFD) SERVICES For Single-Family Customer Service, the Contractor shall provide Solid Waste Collection, Recyclable Materials Collection, Organic Materials Collection, Bulky Items and Reusable Materials Collection, Battery Collection, Used Oil Collection and Holiday Tree Collection.
1. SFD Solid Waste Collection
Contractor shall Collect Solid Waste in Contractor‐provided Carts one (1) time per week from SFD Customers and Transport all Solid Waste to the Approved Disposal Facility for Disposal.
Containers Carts, must be gray or black in color, body and lid must be same color with compliant labels.
Container
Sizes
20-, 32‐, 64‐, and 96‐gallons or comparable sizes. Carts sizes are determined by the Customer.
Service
Frequency
One (1) time per week
Service
Location
Curbside. Drive-in and side‐ or backyard Solid Waste Collection Service for Single‐Family Customers may be available for an additional monthly per‐container fee.
Acceptable
Materials
Solid Waste
Prohibited
Materials Recyclable Materials, Organic Materials, Excluded Waste Additional
Services
Contractor shall provide additional Solid Waste Carts to Single‐Family Customers upon request and may charge the “Additional Solid Waste Cart” Monthly Service Rate approved by the City.
Other
Requirements
Contractor shall assess a “contamination fee” per event for Customers who have repeatedly (i.e., no less than three times in a calendar year) placed more than ten percent (10%) by volume of prohibited materials in their Solid Waste Container.
Prior to assessing such contamination fee, Contractor must provide targeted education (e.g., through the use of a “oops” tag on the Container) no less than three times for that specific Customer. Such education shall, at a minimum, notify the Customer of the specific materials that have been incorrectly placed, inform the Customer as to which Container the materials should be placed, and inform the Customer of a potential contamination fee. Upon assessment of the contamination fee, Contractor shall document the presence of prohibited items through photographic record and make such documentation available to the Customer and/or the City, upon request. Contractor may, at their sole discretion, Agenda Item #8.1:
76 refuse to Collect the Container until it is no longer Contaminated.
2. SFD Recyclable Materials Collection
Contractor shall Collect Recyclable Materials in Contractor‐provided Containers one (1) time per week from SFD Customers and Transport all Recyclable Materials to the Approved Recycling Facility for Processing.
Containers Carts, royal blue in color, body and lid must be same color with compliant labels.
Container
Sizes
32-, 64-, and 96‐gallons or comparable sizes. Carts sizes are determined by the Customer.
Service
Frequency
One (1) time per week on the same day Solid Waste is collected.
Service
Location
Curbside. Drive-in and side‐ or backyard Solid Waste Collection Service for Single‐Family Customers may be available for an additional monthly per‐container fee.
Acceptable
Materials
Recyclable Materials
Prohibited
Materials Solid Waste, Organic Materials, Excluded Waste Additional
Services
Single‐Family Customers shall receive one (1) Recyclable Materials Cart as standard. Contractor shall provide additional Recyclable Materials Carts to Single‐Family Customers upon request and may charge the “Additional Recycling Cart” Monthly Rental Rate up to fifty (50%) of the Solid Waste monthly Service Rate gallon equivalent.
Other
Requirements
Contractor shall assess a “contamination fee” per event for Customers who have repeatedly (i.e., no less than three times in a calendar year) placed more than ten percent (10%) by volume of prohibited materials in their Recyclable Materials Container. Prior to assessing such contamination fee, Contractor must provide targeted education (e.g., through the use of a “oops” tag on the Container) no less than three times for that specific Customer. Such education shall, at a minimum, notify the Customer of the specific materials that have been incorrectly placed, inform the Customer as to which Container the materials should be placed, and inform the Customer of a potential contamination fee. Upon assessment of the contamination fee, Contractor shall document the presence of prohibited items through photographic record and make such documentation available to the Customer and/or the City, upon request. Contractor may, at their sole discretion, refuse to Collect the Container until it is no longer Contaminated.
Agenda Item #8.1:
77 3. SFD Organic Materials Collection
Contractor shall Collect Organic Materials in Contractor‐provided Carts one (1) time per week from SFD Customers and Transport all Organic Materials to the Approved Compost or Organics Management Facility for Processing.
Containers Carts, green in color, body and lid must be same color with compliant labels.
Container Sizes 32-, 64-, and 96‐gallons or comparable sizes. Carts sizes are determined by the Customer.
Service
Frequency
One (1) time per week on the same day Solid Waste is collected.
Service
Location
Curbside. Drive-in and side‐ or backyard Solid Waste Collection Service for Single‐Family Customers may be available for an additional monthly per‐container fee.
Acceptable
Materials
Organic Materials
Prohibited
Materials
Solid Waste, Recyclable Materials (other than food-contaminated fiber such as pizza boxes), Excluded Waste
Additional
Services
Single‐Family Customers shall receive one (1) Organic Materials Cart standard. Contractor shall provide additional Organic Materials Carts to Single‐Family Customers upon request and may charge the “Additional Organic Materials Cart” Monthly Service Rate equivalent to fifty (50%) of the Solid Waste monthly Service Rate gallon equivalent.
Other
Requirements
Contractor shall assess a “contamination fee” per event for Customers who have repeatedly (i.e., no less than three times in a calendar year) placed more than ten percent (10%) by volume of prohibited materials in their Organics Materials Container. Prior to assessing such contamination fee, Contractor must provide targeted education (e.g., through the use of a “oops” tag on the Container) no less than three times for that specific Customer. Such education shall, at a minimum, notify the Customer of the specific materials that have been incorrectly placed, inform the Customer as to which Container the materials should be placed, and inform the Customer of a potential contamination fee. Upon assessment of the contamination fee, Contractor shall document the presence of prohibited items through photographic record and make such documentation available to the Customer and/or the City, upon request. Contractor may, at their sole discretion, refuse to Collect the Container until it is no longer Contaminated.
Agenda Item #8.1:
78 4. SFD Curbside Bulky Item Collection
At no charge, the Contractor shall provide citywide, Large Item/Bulky Collection Service pickups twice per calendar year of up to two (2) cubic yards at each Customer per calendar year.
Contractor shall also offer a bulky-collection-upon-request service. The Collection will occur within eight (8) days of written or phone request from the Customer. The maximum amount to be collected per Customer under the bulky-collection-upon-request service is four (4) cubic yards per calendar year. Contractor may also establish and advertise a Bulky Item fee schedule, approved by the City, for collections beyond the annual per-customer allotment.
All Bulky Items must be placed within three (3) feet of the curb, swale, paved surface of a public roadway, closest accessible roadway, or location agreed to by the Contractor and Customer.
5. SFD Battery Collection
At no charge, the Contractor shall provide free curbside collection of button, alkaline, and rechargeable batteries. Household batteries should have ends taped and must be placed inside a tightly sealed plastic bag and placed on top of the closed recycling cart on collection day.
Rechargeable batteries need to be placed in a separate sealed plastic bag.
6. SFD Used Motor Oil
At no charge to the Customer, the Contractor shall provide curbside collection of used motor oil and moto oil filters. Upon request, the Contractor shall provide a container for the used oil and a heavy-duty zip lock bag for used oil filters. Customers may recycle up to two (2) gallons of used motor oil per week. Used motor oil and filters must be properly containerized and bagged at collection in accordance with the provided Contractor’s instructions. Used motor oil and filters must be properly recycled and/or lawfully disposed. All collections of motor oil and filters must be reported in accordance with Attachment C.
7. Alternative Service Location for SFD Customers with Disabilities Contractor shall allow for Persons that have a disability as defined by the Americans with Disabilities Act (which means Public Law 101‐336, 104 Stat. 327, 42 U.S.C. 12101‐12213 and 27 U.S.C. 225 and 611, and all Federal rules and regulations relating thereto) that are Occupants of Single‐Family Premises to receive Collection services at a location other than Curbside at no extra charge to the Customer. Contractor shall review all applications (which shall include statements from physicians) made by Customers to determine conformance with this exemption provision and shall grant exemptions, if applicable. Contractor shall make reasonable accommodations with regard to provision of and servicing of Containers (e.g., Container size and type, placement of Containers for Collection, etc.) at no additional cost to the Customer.
Agenda Item #8.1:
79 ATTACHMENT B2: MULTI-FAMILY DWELLING (MFD) SERVICES
For Multi-Family Dwelling Customer Service, the Contractor shall provide Solid Waste Collection, Recyclable Materials Collection, Organic Materials Collection, Battery, and Bulky Items Collection.
1. MFD Solid Waste Collection
Contractor shall Collect Solid Waste in Contractor‐provided Carts one (1) time per week from MFD Customers and Transport all Solid Waste to the Approved Disposal Facility for Disposal.
Containers Carts, Bins, Compactors, must be gray or black in color, with compliant labels and signs.
Container
Sizes
32-, 64‐, and 96‐gallon or comparable size Carts: ‐, 2‐, 4‐, and 6‐cubic yard Bins. Carts sizes are determined by the Customer.
Service
Frequency
Up to six (6) times per week but not less than one (1) time per week, as requested by Customer.
Service
Location
Curbside or other Customer‐selected service location at the MFDs (difficult to service charges may apply if service location is not immediately accessible by the Collection vehicle).
Acceptable
Materials
Solid Waste
Prohibited
Materials Recyclable Materials, Organic Materials, Excluded Waste Additional
Services
Special pickups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at an approved additional charge. Extra picks ups can be scheduled equating to up to six days per week total service.
Other
Requirements
― Contractor shall contact MFD Customers in advance of the start of service to determine appropriate Container sizes and service frequency. ― Contractor shall open and close gates, push and/or pull Containers, lock and unlock Containers, or perform other services as reasonably necessary to access and empty Containers (additional charge may apply).
― Contractor shall assess a “contamination fee” per event for Customers who have repeatedly (i.e., no less than three times in a calendar year) placed more than ten percent (10%) by volume of prohibited materials in their Solid Waste Container. Prior to assessing such contamination fee, Contractor must provide targeted education (e.g., through the use of a Agenda Item #8.1:
80 “oops” tag on the Container or direct communication) no less than three times for that specific Customer. Such education shall, at a minimum, notify the Customer of the specific materials that have been incorrectly placed, inform the Customer as to which Container the materials should be placed, and inform the Customer of a potential contamination fee.
Upon assessment of the contamination fee, Contractor shall document the presence of prohibited items through photographic record and make such documentation available to the Customer and the City. Contractor may, at their sole discretion, refuse to Collect the Container until it is no longer Contaminated.
2. MFD Recyclable Materials Collection
Contractor shall Collect Recyclable Materials in Contractor‐provided Containers not less than one (1) time per week from MFD Customers and Transport all Recyclable Materials to the Approved Recycling Facility for Processing.
Containers Carts, Bins, Compactors, blue in color, with compliant labels and signs.
Container
Sizes
96‐gallon or comparable size, carts, 2‐, 4‐, and 6‐ cubic yard Bin. Carts sizes are determined by the Customer.
Service
Frequency
Up to six (6) times per week but not less than one (1) time per week for the 4 yard bin (as requested by Customer). One (1) time per week for the 96 gallon cart.
Service
Location
Curbside or other Customer‐selected service location at the Multi‐Family Premises (difficult to service charges may apply if service location is not immediately accessible by the Collection vehicle)
Acceptable
Materials
Recyclable Materials
Prohibited
Materials
Solid Waste, Organic Materials, Excluded Waste
Additional
Services
Special pickups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at an approved additional charge. Extra picks ups can be scheduled equating to up to six days per week total service.
Other
Requirements
― Contractor shall contact Multi‐Family Customers in advance of the start of service to determine appropriate Container sizes and service frequency.
― Contractor shall open and close gates, push and/or pull Containers, lock and unlock Containers, or perform other services as reasonably necessary to access and empty Containers (additional charge may Agenda Item #8.1:
81 apply).
― Multi‐Family Customers with no greater than once per week individual cart service will receive one (1) Recyclable Materials cart free of additional charge. If a Customer has Bin service, it can receive up to three Recycling Carts at no charge.
― Contractor shall assess a “contamination fee” per event for Customers who have repeatedly (i.e., no less than three times in a calendar year) placed more than ten percent (10%) by volume of prohibited materials in their Recyclable Materials Container. Prior to assessing such contamination fee, Contractor must provide targeted education (e.g., through the use of a “oops” tag on the Container or through direct communication) no less than three times for that specific Customer.
Such education shall, at a minimum, notify the Customer of the specific materials that have been incorrectly placed, inform the Customer as to which Container the materials should be placed, and inform the Customer of a potential contamination fee. Upon assessment of the contamination fee, Contractor shall document the presence of prohibited items through photographic record and make such documentation available to the Customer and the City. Contractor may, at their sole discretion, refuse to Collect the Container until it is no longer Contaminated.
3. MFD Organic Materials Collection
Contractor shall Collect Organic Materials in Contractor‐provided Carts no less than one (1) time per week (i) from all Multi‐Family Customers who are subject to the requirements of AB 1826 and do not refuse the service, and (ii) from all other Multi-Family Customers who subscribe for the service. Under both (i) and (ii), Contractor shall be entitled to charge for Organic Materials Collection service at the then-applicable Rates for the service. Contractor shall transport all Organic Materials to the Approved Disposal Facility or the Approved Recycling Facility for Processing. If a Multi-Family Customer subject to the requirements of AB 1826 refuses Organics Materials Collection Service, Contractor shall not be required to provide service to that Customer and shall notify the City of the Customer’s refusal within 30 days and in Contractor’s quarterly report. “Subject to the requirements of AB 1826” means that the Multi-Family Customer is subscribed for a volume of weekly Solid Waste service equal to or greater than the applicable volume threshold set forth in California Public Resources Code §42649.81(a)(2), (3) or (4).
Containers Carts, must be green in color, with compliant labels and signs.
Container
Sizes 96‐gallon or comparable size. Carts sizes are determined by the Customer.
Agenda Item #8.1:
82 Service
Frequency
Up to six (6) times per week but not less than one (1) time per week for the 4 yard bin (as requested by Customer). One (1) time per week for the 96 gallon cart.
Service
Location
Curbside or other Customer‐selected service location at the MFD Premises (difficult to service charges may apply if service location is not immediately accessible by the Collection vehicle)
Acceptable
Materials
Organic Materials
Prohibited
Materials
Solid Waste, Recyclable Materials, Excluded Waste
Additional
Services
Special pickups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at an approved additional charge. Extra picks ups can be scheduled equating to up to six days per week total service.
Other
Requirements
― Contractor shall contact Multi‐Family Customers in advance of the start of service to determine appropriate Container sizes and service frequency.
― Contractor shall open and close gates, push and/or pull Containers, lock and unlock Containers, or perform other services as reasonably necessary to access and empty Containers (additional charge may apply).
― Contractor shall assess a “contamination fee” per event for Customers who have repeatedly (i.e., no less than three times in a calendar year) placed more than ten percent (10%) by volume of prohibited materials in their Organic Materials Container. Prior to assessing such contamination fee, Contractor must provide targeted education (e.g., through the use of a “oops” tag on the Container or through direct communication) no less than three times for that specific Customer. Such education shall, at a minimum, notify the Customer of the specific materials that have been incorrectly placed, inform the Customer as to which Container the materials should be placed, and inform the Customer of a potential contamination fee. Upon assessment of the contamination fee, Contractor shall document the presence of prohibited items through photographic record and make such documentation available to the Customer and the City. Contractor may, at their sole discretion, refuse to Collect the Container until it is no longer Contaminated.
Agenda Item #8.1:
83 4. MFD Bulky Items Collection
Contractor shall Collect Bulky Items from MFD Customers and transport the Collected materials to the Approved Disposal or Recycling Facility for Processing. Service must be requested by authorized Customer representative.
Containers Not applicable.
Container
Sizes Not applicable.
Service
Frequency
Up to two (2) cubic yards of Reusable Materials, up to five (5) E‐Waste items, AND up to two (2) Appliance or Bulky Item. Appliances with Freon count as two (2) Bulky Items.
Service
Location Curbside or other location approved by Contractor.
Acceptable
Materials
Appliances and Bulky Items
Prohibited
Materials Solid Waste, Organic Materials, Recyclable Materials, Excluded Waste Additional
Services
― Upon MFD Customer request, Contractor shall Collect additional items which exceed the required Service Level and may charge the “Additional Bulky Item” Rate approved by the City.
― Contractor shall provide additional Collection events for a Customer beyond two (2) per year and may charge the “Additional Bulky Item Other
Requirements
The Contractor shall provide the service to the Customer within five (5) Business Days of the Customer’s requested service date, as mutually agreed upon by the Customer and Contractor.
5. MFD Battery Collection
At no charge, the Contractor shall provide free collection of button, alkaline, and rechargeable batteries. Household batteries should have ends taped and must be placed inside a tightly sealed plastic bag and placed on top of the closed recycling cart on collection day or other location agreed upon my Contractor and Customer. Rechargeable batteries need to be placed in a separate sealed plastic bag.
Agenda Item #8.1:
84 ATTACHMENT B3: COMMERCIAL SERVICES; C&D SERVICES
For Commercial Customers, the Contractor shall provide Solid Waste Collection, Recyclable Materials Collection, Organic Materials Collection, Food Waste Collection, and C&D Collection as provided below.
1. Commercial Solid Waste Collection
Contractor shall Collect Solid Waste in Contractor‐provided Containers not less than one (1) time per week from Commercial Customers and transport all Solid Waste to the Approved Disposal Facility for Disposal.
Containers Carts, Bins, Compactors, must be gray or black in color, with compliant labels and signs.
Container
Sizes
32-, 64‐, and 96‐gallon or comparable size Carts: ‐, 2‐, 4‐, and 6‐cubic yard Bins. Carts sizes are determined by the Customer.
Service
Frequency
Up to six (6) times per week but not less than one (1) time per week, as requested by Customer.
Service
Location
Curbside; or other Customer‐selected service location at the C o m m e r c i a l Premises (difficult to service charges may apply if service location is not immediately accessible by the Collection vehicle).
Acceptable
Materials
Solid Waste
Prohibited
Materials Recyclable Materials, Organic Materials, Excluded Waste Additional
Services
Special pickups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at an approved additional charge. Extra picks ups can be scheduled equating to up to six days per week total service
Other
Requirements
― Contractor shall contact Customers in advance of the start of service to determine appropriate Container sizes and service frequency. ― Contractor shall open and close gates, push and/or pull Containers, lock and unlock Containers, or perform other services as reasonably necessary to access and empty Containers (additional charge may apply).
― Contractor shall assess a “contamination fee” per event for Customers who have repeatedly (i.e., no less than three times in a calendar year) placed more than ten percent (10%) by volume of prohibited materials in their Solid Waste Container. Prior to assessing such contamination fee, Contractor must provide targeted education (e.g., through the use of a Agenda Item #8.1:
85 “oops” tag on the Container or direct communication) no less than three times for that specific Customer. Such education shall, at a minimum, notify the Customer of the specific materials that have been incorrectly placed, inform the Customer as to which Container the materials should be placed, and inform the Customer of a potential contamination fee.
Upon assessment of the contamination fee, Contractor shall document the presence of prohibited items through photographic record and make such documentation available to the Customer and/or the City, upon request. Contractor may, at their sole discretion, refuse to Collect the Container until it is no longer Contaminated.
2. Commercial Recyclable Materials Collection
Contractor shall Collect Recyclable Materials and/or Source Separated Recyclable Materials in Contractor‐provided Containers not less than one (1) time per week from Commercial Customers and Transport all Recyclable Materials to the Approved Recycling Facility for Processing or, at Contractor’s discretion, to any Person who will make a net payment to Contractor for the delivery of the Source‐Separated Recyclable Materials.
Containers Carts, Bins, Drop Boxes, blue in color, and Compactors, all with compliant labels and signs.
Container
Sizes
96‐gallon or comparable size Cart: 2 4‐ cubic yard Bins; and Compactors (as requested by Customer).
Service
Frequency
Up to six (6) times per week but not less than one (1) time per week for the 4 yard bin (as requested by Customer). One (1) time per week for the 96 gallon cart.
Service
Location
Curbside or other Customer‐selected service location at the C o m m e r c i a l Premises (difficult to service charges may apply if service location is not immediately accessible by the Collection vehicle).
Acceptable
Materials
Recyclable Materials
Prohibited
Materials Solid Waste, Organic Materials, Excluded Waste Additional
Services
Special pickups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at an approved additional charge. Extra picks ups can be scheduled equating to up to six days per week total service.
Other
Requirements
― Contractor shall contact Multi‐Family Customers in advance of the start of service to determine appropriate Container sizes and service frequency.
Agenda Item #8.1:
86 ― Contractor shall open and close gates, push and/or pull Containers, lock and unlock Containers, or perform other services as reasonably necessary to access and empty Containers (additional charge may apply).
― Multi‐Family Customers with no greater than once per week individual cart service will receive one (1) Recyclable Materials cart free of additional charge. If a Customer has Bin service, it can receive up to three Recycling Carts at no charge.
― Contractor shall assess a “contamination fee” per event for Customers who have repeatedly (i.e., no less than three times in a calendar year) placed more than ten percent (10%) by volume of prohibited materials in their Recyclable Materials Container. Prior to assessing such contamination fee, Contractor must provide targeted education (e.g., through the use of a “oops” tag on the Container or through direct communication) no less than three times for that specific Customer.
Such education shall, at a minimum, notify the Customer of the specific materials that have been incorrectly placed, inform the Customer as to which Container the materials should be placed, and inform the Customer of a potential contamination fee. Upon assessment of the contamination fee, Contractor shall document the presence of prohibited items through photographic record and make such documentation available to the Customer and/or the City, upon request. Contractor may, at their sole discretion, refuse to Collect the Container until it is no longer Contaminated.
3. Commercial Organic Materials Collection
Contractor shall Collect Organic Materials in Contractor‐provided Containers no less than one (1) time per week from (i) all Commercial Customers who are subject to the requirements of AB 1826 and do not refuse the service, and (ii) from all other Commercial Customers who subscribe for the service. Under both (i) and (ii), Contractor shall be entitled to charge for Organic Materials Collection service at the then-applicable Rates for the service. Contractor shall Transport all Organic Materials to the Approved Disposal Facility or the Approved Recycling Facility for Processing. If a Commercial Customer subject to the requirements of AB 1826 refuses Organics Materials Collection Service, Contractor shall not be required to provide service to that Customer and shall notify the City within 30 days of the Customer’s refusal and in Contractor’s quarterly report. “Subject to the requirements of AB 1826” means that the Commercial Customer is subscribed for a volume of weekly Solid Waste service equal to or greater than the applicable volume threshold set forth in California Public Resources Code §42649.81(a)(2), (3) or (4).
Containers Carts, bins, must be green in color, with compliant labels and signs.
Agenda Item #8.1:
87 Container
Sizes 64‐, and 96‐gallon or comparable size Carts; 4‐ and 6‐ cubic yard Bins Service
Frequency
Up to four (4) times per week but not less than one (1) time per week for the 4 yard bin (as requested by Customer). One (1) time per week for the 96 gallon cart.
Service
Location
Curbside or other Customer‐selected service location at the MFD Premises (difficult to service charges may apply if service location is not immediately accessible by the Collection vehicle)
Acceptable
Materials
Organic Materials
Prohibited
Materials Solid Waste, Recyclable Materials, Excluded Waste Additional
Services
Special pickups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at an approved additional charge. Extra picks ups can be scheduled equating to up to six days per week total service.
Other
Requirements
― Contractor shall contact Multi‐Family Customers in advance of the start of service to determine appropriate Container sizes and service frequency.
― Contractor shall open and close gates, push and/or pull Containers, lock and unlock Containers, or perform other services as reasonably necessary to access and empty Containers (additional charge may apply).
― Contractor shall assess a “contamination fee” per event for Customers who have repeatedly (i.e., no less than three times in a calendar year) placed more than ten percent (10%) by volume of prohibited materials in their Organic Materials Container. Prior to assessing such contamination fee, Contractor must provide targeted education (e.g., through the use of a “oops” tag on the Container or through direct communication) no less than three times for that specific Customer. Such education shall, at a minimum, notify the Customer of the specific materials that have been incorrectly placed, inform the Customer as to which Container the materials should be placed, and inform the Customer of a potential contamination fee. Upon assessment of the contamination fee, Contractor shall document the presence of prohibited items through photographic record and make such documentation available to the Customer and/or the City, upon request. Contractor may, at their sole discretion, refuse to Collect the Container until it is no longer Contaminated.
Agenda Item #8.1:
88 4. Commercial Food Waste Collection
Contractor shall Collect Food Waste in Contractor‐provided Containers no less than one (1) time per week from all Commercial Customers who subscribe for the service. Contractor shall be entitled to charge for Food Waste Collection service at the then-applicable Rates for the service. Contractor shall Transport all Food Waste to the Approved Disposal Facility or the Approved Recycling Facility for Processing.
Containers Carts, must be green in color, with compliant labels and signs.
Container
Sizes 64‐gallon or comparable size.
Service
Frequency
Up to six times per week but not less than one (1) time per week, as requested by Customer.
Service
Location
Curbside or other Customer‐selected service location at the Commercial Premises (difficult to service charges may apply if service location is not immediately accessible by the Collection vehicle)
Acceptable
Materials
Food Waste
Prohibited
Materials Solid Waste, Recyclable Materials, Yard Trimmings, Excluded Waste Additional
Services
Special pickups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at an approved additional charge. Extra picks ups can be scheduled equating to up to six days per week total service.
Other
Requirements
― Contractor shall contact Commercial Customers in advance of the start of service to determine appropriate Container sizes and service frequency.
― Contractor shall open and close gates, push and/or pull Containers, lock and unlock Containers, or perform other services as reasonably necessary to access and empty Containers (additional charge may apply).
― Contractor shall assess a “contamination fee” per event for Customers who have repeatedly (i.e., no less than three times in a calendar year) placed more than ten percent (10%) by volume of prohibited materials in their Food Waste Container. Prior to assessing such contamination fee, Contractor must provide targeted education (e.g., through the use of a “oops” tag on the Container or through direct communication) no less than three times for that specific Customer. Such education shall, at a minimum, notify the Customer of the specific materials that have been incorrectly placed, inform the Customer as to which Container the Agenda Item #8.1:
89 materials should be placed, and inform the Customer of a potential contamination fee. Upon assessment of the contamination fee, Contractor shall document the presence of prohibited items through photographic record and make such documentation available to the Customer and/or the City, upon request. Contractor may, at their sole discretion, refuse to Collect the Container until it is no longer Contaminated. Contractor may, at their sole discretion, refuse to Collect the Container until it is no longer Contaminated.
5. C&D Collection
Contractor shall Collect C&D from Customers that directly subscribe to its Collection services.
Contractor shall charge Customers for C&D Collection services at City-approved Rates.
Containers
Contractor shall offer Customers various size Bins and Roll-Off Boxes for Collection of C&D, subject to review and approval by the City. C&D Containers shall conform to all requirements of Chapter 6.5 of the Agreement.
Service
Frequency
Contractor shall Collect C&D Materials within one (1) Working Day of an initial Customer request, and at an ongoing frequency agreed upon with the individual Customer. Contractor shall provide requested Collection of C&D Materials within two (2) Working Days of a Customer request for a one-time Collection.
Acceptable
Materials
Contractor may Collect C&D from construction, remodeling, repair, or demolition operations. C&D may be mixed materials delivered to the Approved Disposal Facility and/or the Approved Recycling Facility for Processing or Disposal; Source Separated C&D materials Collected for Recycling; and/or Source Separated Salvageable Materials Collected for salvage and Reuse. C&D may contain only de minimis amounts of Solid Waste generated at the C&D Collection Sites. Contractor may Transport Source Separated Recyclable Materials, such as cardboard and metals, and Yard Trimmings, from the C&D Collection Sites, if the materials result from the construction, remodeling, repair, or demolition work at the C&D Collection Sites.
Transport &
Processing
Contractor shall Deliver C&D to the Approved Disposal Facility and/or the Approved Recycling Facility for Processing or Disposal on-site and/or for transfer to a third-party for Processing. Contractor shall deliver Source Separated Reusable Materials to the Approved Disposal Facility and/or the Approved Recycling Facility for Processing through donation or sale of materials.
Agenda Item #8.1:
90 Additional
Services
Contractor shall provide Customers with City-approved educational information on best practices for C&D Recycling and Reuse and proper separation of materials for Collection. As directed by City, Contractor shall label or install signs on Bins and Roll-Off Boxes identifying allowable and nonallowable materials for Collection in the C&D Containers. Signs shall be a minimum size of one (1) foot by two (2) feet and lettering on signs shall be a minimum of three (3) inches high. Signs shall be affixed to the front and both sides of each Bin and Roll-Off Box.
Other
Requirements
Contractor shall submit C&D Tonnage information and other data pursuant to Attachment C of the Agreement.
Agenda Item #8.1:
91 ATTACHMENT B4: CITY SERVICE LEVELS AND FACILITY LOCATIONS City of Sonoma Facilities
Contractor will collect Solid Waste, Recyclable Materials, Organic Materials, and Bulky Items from the City’s facilities in the same manner as those services are provided to Commercial Customers in addition to City Community Events (see sec. 5.11). Contractor will provide service to City facilities (both existing facilities and facilities established after the Commencement Date), at no additional cost to the City. Contractor shall provide regular collection service to the locations/facilities listed below at the frequency and service level specified.
Contractor shall provide free replacement of any City Containers, including Carts, as requested by City or as deemed necessary by Contractor to present a clean appearance.
Contractor shall clean and/or replace all City containers or carts up to one (1) time per year as requested by City. If any Container is impacted by graffiti, Contractor shall remedy the situation within fourteen (14) calendar days of notification at no additional charge.
Facility
Name
Facility
Address/
Location
Winter
Collection
Frequency,
Days
(Nov. 1 –
March 1)
Summer
Collection
Frequency,
Days
(March 2 –
Oct. 31)
Garbage
Container
Vol, Count
Organics
Container
Vol, Count
Recycling
Container
Vol, Count
Curb
Access
Y/N
1. Armstrong
Park
550
Charles
Van
Damme
Way
Weekly,
Wednesday
Weekly,
Wednesday
64 gal/2 32 gal/2 96 gal/2 N
2. Bike
Path@
Between
Sonoma
Hwy and
Robinson
Rd.
No Street
Address
Weekly,
Thursday
Weekly,
Thursday
64 gal/1 Y
3. Bike
Path@
Junipero
Serra Drive
No Street
Address
Weekly,
Thursday
Weekly,
Thursday 64 gal/1 Y
4. Bike
Path@ 4th
St W
No Street
Address
Weekly,
Thursday
Weekly,
Thursday 64 gal/1 N
5. Bike
Path@
Vintage
House
(Between
1 st St E and
2 nd St E)
No Street
Address
Weekly,
Thursday
Weekly,
Thursday
64 gal/1 N
Agenda Item #8.1:
92 Facility
Name
Facility
Address/
Location
Winter
Collection
Frequency,
Days
(Nov. 1 –
March 1)
Summer
Collection
Frequency,
Days
(March 2 –
Oct. 31)
Garbage
Container
Vol, Count
Organics
Container
Vol, Count
Recycling
Container
Vol, Count
Curb
Access
Y/N
6. Bike
Path@ 4th
St E
No Street
Address
Weekly,
Thursday
Weekly,
Thursday 64 gal/1 N
7. Bike
Path@ W
MacArthur
St
No Street
Address
Weekly,
Monday
Weekly,
Monday 64 gal/1 N
8. Bike
Path@ W
Manor
Drive
No Street
Address
Weekly,
Monday
Weekly,
Monday 32 gal/1 Y
9. Bocce &
Petanque
Courts
0 1st
Street E
Weekly,
Thursday
Weekly
Thursday 64 gal/2,
2YD/1 32 gal/2 96 gal/2 N
10. Corporation
Yard
19728
8th
Street E
Within 2
business days
of request
from city
Within 2
business
days of
request from
city
4 YD/1 30 YD/1 4 YD/2 N
11. Depot Park 248 1st
Street W
Weekly,
Thursday
And, no more
than 24 hours
prior to a City
Community
Event
(including
weekends)
held at Depot
Park where
Contractor
has been
notified by the
City.
Weekly,
Thursday
And, no more
than 24 hours
prior to a City
Community
Event
(including
weekends)
held at Depot
Park where
Contractor
has been
notified by
the City.
64 gal/3 32 gal/3 96 gal/3 N
12. Field of
Dreams &
The Haven
151 1st
Street W
Weekly,
Thursday
Weekly,
Thursday 64 gal/1 64 gal/1 N
13. Fire Station
#1
630 2nd
Street W
Weekly,
Friday
Weekly,
Friday
N/A N/A N/A N/A
14. Hertenstein
Park
0 La
Quinta
Ln
Weekly,
Friday
Weekly,
Friday 64 gal/1 Y
15. K.T. Carter
Park
1135 Cox
St
Weekly,
Wednesday
Weekly,
Wednesday 64 gal/1 32 gal/1 96 gal/1 N
16. MacArthur
Park
758
Elliott St
Weekly,
Tuesday
Weekly,
Tuesday 64 gal/1 32 gal/1 96 gal/1 N
17. Madera
Park
No Street
Address
Weekly,
Wednesday
Weekly,
Wednesday 64 gal/1 Y
Agenda Item #8.1:
93 Facility
Name
Facility
Address/
Location
Winter
Collection
Frequency,
Days
(Nov. 1 –
March 1)
Summer
Collection
Frequency,
Days
(March 2 –
Oct. 31)
Garbage
Container
Vol, Count
Organics
Container
Vol, Count
Recycling
Container
Vol, Count
Curb
Access
Y/N
18. Mountain
Cemetery
No Street
Address
Within 2
business days
of request
from city
Within 2
business
days of
request from
city
2 YD/1 4 YD/1 N
19. Nathanson
Creek Park
0 Dewell
Dr
Weekly,
Wednesday
Weekly,
Wednesday 64 gal/2 32 gal/2 96 gal/2 N
20. Nathanson
Creek
Demonstrat
ion Garden
2 ND ST
E./E.
Macarthu
r St
Weekly,
Tuesday
Weekly,
Tuesday 96 gal/1 96 gal/1 96 gal/1 N
21. Olsen Park 569
Linda Dr
Weekly,
Thursday
Weekly,
Thursday 96 gal/1 32 gal/1 96 gal/1 N
22. Pinelli Park 0 France
St
Weekly,
Tuesday
Weekly,
Tuesday 32 gal/1 32 gal/1 64 gal/1 N
23. The Plaza,
City Hall
& Carnegie
Library
Building
1 The
Plaza
Bi-Weekly:
Monday &
Friday
And, no more
than 24 hours
prior to a City
Community
Event
(including
weekends)
held at The
Plaza Park
where
Contractor
has been
notified by the
City.
3x per week:
Monday,
Wednesday,
& Friday
And, no more
than 24 hours
prior to a City
Community
Event
(including
weekends)
held at The
Plaza Park
where
Contractor
has been
notified by
the City.
50 gal/30, 4
YD/1
50 gal/30,
4 YD/1
50 gal/30,
4 YD/1
24. Police
Station
175 1st St
E
Weekly,
Thursday
Weekly,
Thursday 4 YD/1 64 gal/1 4 YD/1 N
25. Sonoma
Valley
Oaks Park
No Street
Address
Weekly,
Wednesday
Weekly,
Wednesday 64 gal/1 64 gal/1 96 gal/1 N
26. Valley
Cemetery
No Street
Address
Within 2
business days
of request
from city
Within 2
business
days of
request from
city
2 YD/1 2 YD/1 N
Agenda Item #8.1:
94 Facility
Name
Facility
Address/
Location
Winter
Collection
Frequency,
Days
(Nov. 1 –
March 1)
Summer
Collection
Frequency,
Days
(March 2 –
Oct. 31)
Garbage
Container
Vol, Count
Organics
Container
Vol, Count
Recycling
Container
Vol, Count
Curb
Access
Y/N
27. Vintage
House
264 1st
St E
Weekly,
Thursday
Weekly,
Thursday N/A N/A N/A N
Agenda Item #8.1:
95 ATTACHMENT C: REPORTING REQUIREMENTS
As set forth in this Attachment, the Contractor shall submit regular scheduled reports (Quarterly and Annual) to the City in an agreed upon format that provides information that can be used to, among other things:
1. Provide concise and comprehensive program information and metrics for use in fulfilling reporting requirements under AB 939, AB 341, AB 1826, SB 1383, and other Applicable Law.
2. Evaluate past and expected progress towards achieving Diversion and Climate Action goals and objectives.
3. Determine needs for adjustments to programs.
4. Evaluate Customer service and complaints as applicable.
Quarterly Reports
Summary
― Quarterly reports shall be submitted by the Contractor to present the information below for each month (in reporting period) and include a quarterly total in tabular and narrative form. Quarterly reports shall also contain other information reasonably requested in writing by the City.
― The report shall contain the following headings and contents.
Reporting Periods
Q1: January, February, March (report due by/before last day in April) Q2: April, May, June (report due by/before last day in July) Q3: July, August, September (report due by/before last day in October) Q4: October, November, December (report due by/before last day in January)
Tonnage Report
― Tonnage delivered to the Approved Disposal Facility, Approved Recycling Facility, and Approved Organics Facility by type (e.g., Solid Waste, Recyclable Materials, Organic Materials, Food Waste, and Construction and Demolition Debris), subtotaling and clearly identifying those Tons that are Disposed and those that are Diverted (recycling plus composting), inclusive of any Abandoned Waste.
Tonnage is to be reported by Customer type (SFD, MFD,
Commercial).
― Each quarterly report shall show the past four (4) quarters’ averages for data comparison (the first three (3) quarters of the Agreement shall only include the available quarterly information).
Bulky Items Units of Bulky Items Collected by Type.
Used Motor Oil Gallons of used motor oil and number of motor oil filters collected.
Batteries Volume of batteries collected
Spills/Leaks Any spills, leaks, or litter cleanup activities that were conducted.
SB 1383
Compliance
― The number of occurrences of contamination observed and the number of notices sent to the generator for incidences of prohibited Agenda Item #8.1:
96 Quarterly Reports
contamination of containers.
― A list of commercial generators not in compliance with the organics participation requirements. This list will compare Customers who actively use an organics container to the list of food related businesses provided by the City.The number of times contamination was observed when conducting route reviews and the customers that received educational materials, contamination tags, or notices in response for observed contamination.
― The number and amount of contamination fees charged.
― The number of incidences where service was not performed due to excessive contamination.
― Reports on the streams of materials diverted and disposed from approved City Events and Venues as required by SB1383.
Customer Actions
― Number of Customers by Customer Type.
― Number of Containers at each Service Level by Customer Type and program. Summarizing the Cart sizes provided for each service type, cubic yards of Bin service, and pulls and cubic yards or Tons of Compactor service by Customer Type. Report should calculate the average volume of service received per Customer if such data is available.
― Number of Bulky Item Collection events by Customer Type.
Participation percentage by program and Customer Type where the participation percentage is calculated as the number of Customers who have subscribed to or requested service under the program relative to the number of Customers of that Customer Type subscribing to Solid Waste service. (Contractor shall not be required to submit participant Customer names and addresses as part of the regular reporting; however, such information shall be provided to the City Manager upon request.)
― Number, address, and service type of Customers that have cancelled and not reactivated service as of the date of the report. ― Number of Customer calls/emails listed separately by complaints and inquiries (where inquiries include requests for Recycling information, Rate information, etc.). For complaints, list the number of calls/emails separately by category (e.g., missed pickups, scheduled cleanups, billing concerns, damage claims, etc.). ― Number of new service requests for each Customer Type and program.
― Number of events of Discarded Materials being tagged for non‐Collection summarized by the reason for tagging (e.g., inclusion of non‐Recyclable or non‐Compostable materials, improper set out, Hazardous Waste, etc.).
City Actions
― Weight of free compost and mulch donated.
― Total City operations diversion rate.
― Summary report on any community clean-up events.
― Summary report on Abandoned Waste trouble spots where the Agenda Item #8.1:
97 Quarterly Reports
Contractor repeatedly observes litter.
― Summary report on Public Container trouble spots where the Contractor repeatedly observes litter.
Annual Reports
Summary
― The annual report shall include the fourth quarterly (Q4) report plus the additional information presented below. The annual report shall also contain other information reasonably requested in writing by the City.
― Provide a summary assessment of the programs performed under this Agreement from Contractor's perspective relative to the financial and physical status of the program. The physical status assessment shall reflect how well the program is operating in terms of efficiency, economy, and effectiveness in meeting all the goals and objectives of this Agreement, particularly the Contractor’s Diversion goals. Provide recommendations and plans to improve.
Highlight significant accomplishments and problems.
Reporting Periods
Q4: October, November, December (report due by/before last day in January)
Annual Report: Calendar report due by/before last day in January Tonnage Report
Total tonnage delivered to the Approved Disposal Facility, Approved Recycling Facility, and Approved Organics Facility by type (e.g., Solid Waste, Recyclable Materials, Organic Materials, Food Waste, and Construction and Demolition Debris), subtotaling and clearly identifying those Tons that are Disposed and those that are Diverted (recycling plus composting), inclusive of any Abandoned Waste. Tonnage is to be reported by Customer type (SFD, MFD, Commercial).
Bulky Items Total units of Bulky Items Collected by Type.
Used Motor Oil Total gallons of used motor oil and number of motor oil filters collected.
Batteries Total volume of batteries collected
SB 1383
Compliance
― Total (i) number of occurrences of contamination observed and (ii) number of notices sent to the generator for incidences of prohibited contamination of containers.
― Total number and amount of contamination fees charged. ― Total number of incidences where service was not performed due to excessive contamination.
Customer Actions
― Total number of Customers by Customer Type.
― Total number of Containers at each Service Level by Customer Type and program. Summarizing the total gallons of Cart service, cubic yards of Bin service, and pulls and cubic yards or Tons of Compactor service by Customer Type. Report should calculate the average volume of service received per Customer if such data is Agenda Item #8.1:
98 Quarterly Reports
available.
― Total number of Bulky Item Collection events by Customer Type.
Participation percentage by program and Customer Type where the participation percentage is calculated as the number of Customers who have subscribed to or requested service under the program relative to the number of Customers of that Customer Type subscribing to Solid Waste service.
― Total number, address, and service type of Customers that have cancelled and not reactivated service as of the date of the report. ― Total number of Customer calls listed separately by complaints and inquiries (where inquiries include requests for Recycling information, Rate information, etc.). For complaints, list the number of calls separately by category (e.g., missed pickups, scheduled cleanups, billing concerns, damage claims, etc.).
― Total number of new service requests for each Customer Type and program.
― Total number of events of Discarded Materials being tagged for non‐Collection summarized by the reason for tagging (e.g., inclusion of non‐Recyclable or non‐Compostable materials, improper set out, Hazardous Waste, etc.).
City Actions
― City operations diversion rate.
― Total weight of free compost and mulch donated.
― Summary report on any community clean-up events.
― Summary report on Abandoned Waste trouble spots where the Contractor repeatedly observes litter.
― Summary report on Public Container trouble spots where the Contractor repeatedly observes litter.
Annual Cart
Tagging Results
Summary of the implementation and the results of the annual carttagging program of the previous calendar year to include the route information and percentage of residential customers visited, the number of positive and negative tags affixed to containers, a summary of compliance issues observed, and recommendations on education needs to reduce contamination and increase the diversion rate.
Container
Inspection Results
Results of the annual container label inspection requirement (SMC
7.10.080.2) including the number of labels needing replacement and the number of labels actually replaced.
Annual Zero Waste
Outreach/Inspection
Results
Summary of the implementation and the results of the Commercial Generator outreach and inspection program for the calendar year. This section shall include a summary of the implementation efforts and results of the annual commercial generator outreach program including the number and percentage of commercial customers visited, compliance issues observed, and recommendations on education Agenda Item #8.1:
99 Quarterly Reports
needs to reduce contamination and increase the diversion rate.
Financial
Information
― Statement detailing Gross Receipts from all operations conducted or permitted pursuant to this Agreement.
― Audited financial statements.
― General description of the nature of each transaction with a Subcontractor or Affiliate, or type of transaction (if many similar transactions exist), as applicable. Such description shall include for each (or similar) transaction, amounts, specific Subcontractor or Affiliate, basis of amount (how amount was determined), description of the allocation methodology used to allocate any common costs, and profit amount.
Agenda Item #8.1:
100
ATTACHMENT D: CONTRACTORS COMPENSATION AND RATE SETTING This Attachment D describes the procedures used to adjust Contractor’s Rates under Chapter 9 of the Agreement.
I. Adjustments to Rates
Rates specified in Attachment D will be adjusted annually effective each July 1 in accordance with this provision. The method for adjusting each rate component is specified below. Adding each rate component in accordance with Attachment D produces the total monthly rate limiting the Charge the Contractor may impose on each category of Customer. Contractor shall submit request for annual rate adjustment each year. City, or its designee, may review the cost data for reasonableness. City’s cost to perform the review shall be reimbursed by the Contractor.
Adjustments to Rates are subject to approval by the City Council via Council Resolution.
Rate components. Rates shall consist of the following components: 1) Collection component; 2) disposal tipping fee component (disposal component); 3) retroactive disposal component, and 4) Franchise fee component; and such other components as may be added by amendment to this Franchise agreement.
Refuse Rate Index (RRI) adjustments to Collection component. RRI adjustments will be calculated for the Collection component of the rate in accordance with this section. Calculation of the RRI involves calculating the average annual change in indices specified, calculating the weighting that labor, fuel, vehicle replacement, vehicle maintenance and other actual, eligible Contractor costs represent of total actual, eligible costs of the Contractor and applying that weighting to the percentage change in the indices. If any of the indices cease to be published, the City will notify Contractor of the substitute index that will be used, and Attachment D will be revised accordingly. The substitute index will be the index that most closely replaces the prior index, as determined by the City. For the purposes of RRI calculations, the following terms are used:
a. Cost categories means categories of Contractor costs included in the refuse rate index calculation and specified in Attachment D: labor related costs, fuel costs, vehicle related maintenance costs, and other costs. These cost categories correspond with the indices specified in Attachment D.
b. Eligible costs means all costs in all cost categories actually incurred by the Contractor in providing Franchise services, except for Contractor costs that are excluded under the Franchise agreement.
c. Percentage change means, for each cost category, the sum of that cost category for a given year, minus the sum of that cost category for the immediately preceding year, divided by the sum of that same immediately preceding year (i.e., the sum of a particular cost category for year A, minus the sum of that same cost category for year B, divided by the sum of that cost category for year B).Total cost means, for any given year, the sum of all eligible costs for all cost categories.
d. Weighted average means, for any given year, the percent share the sum of each cost category is of the total cost.
e. Year A means the most recently completed year.
Agenda Item #8.1:
101
f. Year B means the year immediately preceding year A.
g. Year C means the year immediately following year A and for which the refuse rate index is being calculated.
II. Calculation of the refuse rate index, is as follows:
a. First, calculate the total eligible cost incurred by the Contractor for Year A and Year B.
b. Second, calculate the weighted average for each cost category for Years A and B.
c. Third, calculate the percentage change in each appropriate index for each cost category between Years B and A.
d. Fourth, multiply the weighted average for each cost category for year A by the percentage change in each appropriate index for that cost category. e. Fifth, add the products for all cost categories to produce the refuse rate adjustment for the Collection component for year C.
f. Sixth, multiply the Rates for single family, multi-family, Commercial, and special Collections for year A by one (1) plus the refuse rate adjustment to produce the Collection component of the new Rates for year C.
III. Adjustment to disposal (tipping fee) component. The disposal (tipping fee) component is based on the actual cost to dispose Solid Waste at the Disposal site. The tipping fee shall be applied to the Rates as a direct pass through, calculated on the Solid Waste generation factor for each type of service. The Solid Waste generation factor will be approved as part of the annual rate adjustment.
IV. Adjustment to retroactive disposal component. The retroactive disposal component is intended to account for the fact that the disposal tip fee is adjusted on April 1, whereas Rates under this Agreement are adjusted on July 1. The retroactive disposal component for the upcoming rate year (i.e. the year for which Rates are being calculated) is calculated by taking the disposal component for the upcoming rate year, subtracting from it the disposal component for the current rate year, multiplying the result by three (3) to account for the three (3) months of increased disposal costs from April 1 to July 1, then dividing by twelve (12) to spread these costs across the upcoming rate year.
For example, if:
Disposal component
for July 1st - June 30th (upcoming rate year) = $4.12
and
Disposal component
for July 1st - June 30th (current rate year) = $3.98
then
Retroactive disposal component
for July 1st -June 30th (upcoming rate year)= ($4.12–$3.98)*3/12 = $0.035
V. Adjustment to Franchise fee component. The Franchise fee component of each rate is Agenda Item #8.1:
102
calculated by taking the then-current component value and adjusting it annually. The amount shall be adjusted based on one hundred percent (100%) of the average change in the CPI for the 12-month period from January through December. Therefore, the first rate adjustment, effective July 1, 2025, will be based on the percentage change in CPI for the average CPI value from January 1, 2023, through December 1 2023, compared to the average CPI value from January 1, 2024, through December 1 2024, rounded to the nearest hundredth of a percent. The index to be used shall be the series All Urban Consumers (CPIU) for the San Francisco-Oakland-Hayward, CA area (1982-84=100) [Bureau of Labor Statistics Series I.D. CUURS49BSA0].
VI. Calculation of adjustment to Rates. Add the adjustments to the Collection, disposal, retroactive disposal, and Franchise fee components to determine the total rate adjustment. If the refuse rate adjustment is a negative number, or if extraordinary costs in year A skew the refuse rate adjustment, the City and the Contractor may by mutual agreement allocate the effects of the refuse rate adjustment over multiple Franchise years.
VII. CONTRACTOR’S RATE APPLICATION
By March 1, Contractor shall submit an Application requesting the amount of Contractor’s Rate adjustment for the next Rate Year (commencing July 1).
VIII. REFUSE RATE INDEX CALCULATIONS
Pursuant to Chapter 9 of this Franchise agreement, the collection component to the Customer rate is calculated using the Refuse Rate Index (RRI) methodology. Following is a description of the operating costs of the collection component, the indices used and the Financial Statement Form template.
OPERATING COSTS
Labor: List all administrative, officer, operation and maintenance salary accounts.
List payroll tax accounts directly related to the above salary accounts.
Fuel List all fuel costs.
Vehicle Replacement: List all Collection and Collection related vehicle depreciation accounts.
List all vehicle lease or rental accounts related to Collection or Collection related vehicles.
Vehicle Maintenance: List all Collection or Collection related vehicle parts accounts.
All Other: List all other expense accounts related to the services provided under this Franchise agreement. This category includes all insurance including general liability, fire, truck damage, extended coverage and employee group medical and life; rent on property, truck licenses and Agenda Item #8.1:
103
permits; real and personal property taxes; telephone and other utilities; employee uniforms; safety equipment; general yard repairs and maintenance; office supplies; postage; trade association dues and subscription; advertising; employee retirement or profit sharing contributions; and miscellaneous other expenses.
The adjustment shall be calculated in the following manner:
1. The expenses of providing Collection Services in the Service Area for the designated fiscal period shall be prepared in the format set forth in the Refuse Rate Financial Statement Form contained in this Exhibit.
2. The expenses of providing Collection Services in the City shall be broken down into one of the following five cost categories: Labor; Fuel; Vehicle Replacement; Maintenance and All Other. Each cost category is assigned a weighted percentage factor on that cost category’s proportionate share of the total of the costs shown for all cost categories.
3. The following indices are used to calculate the adjustment for each cost category. The change in each index is calculated on a twelve-month fiscal period in accordance with the terms of the Franchise agreement.
Cost Category Index
Labor: Series ID: cis201s000000000i (B,H), ServiceProviding Industries Fuel: Series ID: wpu057303, Commodity Code 0573-03
No. Diesel Fuel
Vehicle Replacement: Series ID: pcu3362113362111, Truck, bus, car and other vehicles bodies, for sale separately
Vehicle Maintenance: Series ID: pcu3339243339243, Parts and attachments for Industrial work trucks
All Other: Series ID: cuur0000sa0, One hundred percent
(100%) of Consumer Price Index, All Urban
Consumers, All Items
The percentage weight for each cost category is multiplied by the change in each appropriate index to calculate a weighted percentage for each cost category. The weighted percentage changes for each cost category are added together to calculate the refuse rate index.
The following page contains the City of Sonoma’s Refuse Rate Financial Statement Form.
V. EXTRAORDINARY RATE ADJUSTMENTS
In the case of an extraordinary Rate adjustment as described in Section 9.3 of the Agreement, Contractor may apply to the City for consideration of special review of Rates, or the City may initiate such a review, should one or more of the following events occur:
1. Changes in the cost of transporting and disposal or Processing of Solid Waste, Recyclable materials, Organic waste or Construction and demolition debris due to the City requiring Contractor to use a specified facility.
Agenda Item #8.1:
104
2. A change in state or local fees that the Contractor must collect.
3. A change in the scope of Franchise services specified in Attachment B.
4. Changes to the Franchise fee.
5. A change in applicable law or regulations applicable to performance of the Franchise services that results in a change in cost of providing Franchise services.
Should Contractor request a special review, the City shall have the right to audit or have audited any and/or all costs associated with the Franchise services. A special rate review may, in the City’s sole discretion, occur in conjunction with a performance review pursuant to section 7.4.
The City’s costs of performing a special rate review, including, but not limited to staff costs, attorneys’ fees, consultant fees, and audit costs, will be reimbursed by Contractor within 30 days of receipt of City invoices for such costs. No increase in Rates pursuant to this section will take effect unless and until Contractor has fully reimbursed the City for all costs invoiced by the City for such special rate review. Contractor shall submit requests for special rate review, and any cost, operational data and/or other information required for such review, at least six months prior to the proposed Effective date of any rate adjustment and shall make every effort to have any such increase coincide with a regular rate adjustment. Contractor bears the burden of justifying to the City’s satisfaction that Contractor is entitled to a rate adjustment as a result of special rate review. City shall not unreasonably withhold approval of a request by Contractor under this section where Contractor has met such burden, which Contractor may do by demonstrating that (i) one or more of the above-mentioned events did occur, (ii) the event did increase Contractor’s costs of (or decrease its revenue from) performing this agreement, and (iii) the amount of the increased costs (or decreased revenues) is reasonable.
Agenda Item #8.1:
105
VI. RRI FINANCIAL STATEMENT FORM
Total
Labor-Related Costs (including administrative, office, operations and maintenance salaries and wages) Regular Wages $0
Overtime Wages $0
Holiday Wages $0
Vacation Wages $0
Sick Leave Wages $0
Administrative and Office Salaries $0
Payroll Taxes $0
Total Labor Related-Costs $0
Fuel Costs $0
Vehicle Replacement
Collection Vehicle Depreciation $0
Collection -related Vehicle Depreciation $0
$0
Vehicle-Related Maintenance Costs (do not include depreciation) Tires & Tubes $0
Parts & Supplies (fluid, oil, etc,) $0
Other (Please List) $0
$0
$0
Total Vehicle-Related Maintenance Costs $0
Other Costs
Liability & Property Damage Insurance $0
Equipment Insurance $0
Training & Safety Programs $0
Uniforms $0
Workers Compensation Claims $0
Health & Welfare $0
Pension/ Retirement Benefits $0
Property Rent $0
Truck Licenses and Permits $0
Real and Personal Property Taxes $0
Telephone and Other Utilities $0
General Yard Repairs and Maintenance $0
Office Supplies $0
Postage $0
Trade Association Dues and Subscriptions $0
Advertising $0
Employee Retirement or Profit Sharing Contributions $0
Other (Please List) $0
Total Other Costs $0
City of Sonoma
Refuse Rate Financial Statement Form
Agenda Item #8.1:
106
INSERT AUTHORIZED JULY 1, 2024 RATE SHEETS HERE
Agenda Item #8.1:
107
ATTACHMENT E: PERFORMANCE STANDARDS AND LIQUIDATED DAMAGES The City wishes to establish standards of performance under the Agreement in each of the four (4) “Performance Areas” listed below. The City may monitor Contractor’s performance in each of those areas listed below relative to the “Specific Performance Measures” within that performance area. In the event that the City determines that Contractor has failed to meet the performance standard established for any “Specific Performance Measure”, the City may assess Liquidated Damages pursuant to and in accordance with Section 11.6 of the Agreement.
Liquidated Damages, if assessed, shall only be assessed for the number of events, days, or other measure in excess of the acceptable performance level.
Defined Terms
Certain terms that are specific to this Exhibit are defined below:
“Complaint” shall mean each written or orally communicated statement made by any Person, whether to the City or Contractor, alleging: (1) non‐performance, or deficiencies in Contractor’s performance, of its duties under this Agreement; or (2) a violation by Contractor of this Agreement.
“Event” shall mean each occurrence of the required Specific Performance Measure that exceeds the Acceptable Performance Standard, as provided in the chart below. “Service Opportunity” shall mean each individual scheduled opportunity the Contractor has to Collect from a Container at a Customer’s location. For example, a Multi‐Family or Commercial Customer receiving Solid Waste Collection service three (3) times per week from two (2) Containers and Recyclable Materials Collection service two (2) times per week from two (2) Containers would have a total of ten (10) Service Opportunities each week. Service Opportunities shall be calculated based on the subscription levels presented in Contractor’s most recent Quarterly Report to the City.
“Total Service Opportunities” shall mean the sum of all Service Opportunities in each time period.
Agenda Item #8.1:
108
Performance Area: Service Quality and Reliability
Specific
Performance
Measure Definition
Acceptable
Performance
Level Tracking Method
Liquidated
Damage
Amount
Missed
Collections
Each Service Opportunity where
Contractor fails to Collect a
Container from a Customer who
properly placed said Container for
Collection.
Less than ten
(10) per one
thousand
(1,000) Service
Opportunities
Contractor shall
document from
its customer
service system
listing the total
complaints coded
as missed pickup. Submit
electronic report
annually.
$50/Event
Failure to
Correct Missed
Collections
Each “Missed Collection” as defined
above which is not Collected by the
end of the Business Day following
the receipt of the Customer
complaint about the Missed
Collection.
Less than one
(1) per one
hundred (100)
Missed
Collections
Contractor shall
document missed
pick-up complaint
reports listing for
each complaint,
the date of the
complaint, the
resolution date;
and any other
information
requested by the
City. Submit
electronic report
annually.
$50/Event
Agenda Item #8.1:
109
Specific
Performance
Measure Definition
Acceptable
Performance
Level Tracking Method
Liquidated
Damage
Amount
Failure to
Clean‐Up
Spillage
Each failure by Contractor to clean
up: (1) any items or materials spilled
during the Collection of a Container;
or, (2) any fluids spilled or leaked
from a Container or Collection
vehicle prior to leaving the Collection
location.
Less than five
(5) per one
thousand
(1,000) Service
Opportunities
See above $100/Event
Damage to
Property
Each event of damage to either
public or private property because of
Collection activity, including without
limitation curbs, sidewalks,
landscapes, Container enclosures
and gates, signs, light fixtures, and
overhead wires and cables.
Less than two
(2) per one
thousand
(1,000) Service
Opportunities
See above $250/Event
Excessive Noise
or Discourteous
Behavior
Each Complaint received that is
related to either noise during
Collection activity or the behavior of
Contractor’s employees.
Less than five
(5) per one
thousand
(1,000) Service
Opportunities
See above $250/Event
Agenda Item #8.1:
110
Performance Area: Customer Service and Public Education and Outreach Specific
Performance
Measure
Definition
Acceptable
Performance
Level Tracking Method
Liquidated
Damage
Amount
Failure to
Commence Service
Any failure by Contractor to deliver a
Container and begin providing
Collection to a Customer, at the
level of service requested by said
Customer, within seven (7) calendar
days of receiving such request. This
may include a new Customer
receiving new service or an existing
Customer requesting a change in or
addition to existing service levels.
This may also include delivering
Used Oil Recovery Kits to
Customers upon request.
Less than one
(1) per 100
Service
Requests
Contractor shall
document on a
quarterly basis
from its customer
service system
listing the total
number of
complaints coded
for each category.
Submit electronic
report annually.
$50/Event
Failure to Replace
Container
Any failure by Contractor to replace
or repair a damaged or defaced
Container within seven (7) calendar
days of receiving such a request
from a Customer.
No acceptable
failure level
See above $50/Event
Failure to Resolve
Complaint
Any failure by Contractor to resolve
or remedy a Complaint within seven
(7) calendar days of receiving such
Complaint.
Less than one
(1) per 100
Complaints
See above $100/Event
Unauthorized Hours
of Operation
Each occurrence of Contractor
Collecting from Customers during
unauthorized hours.
Less than two
(2) per 1,000
Service
Opportunities
See above $50/Event
Agenda Item #8.1:
111
Specific
Performance
Measure
Definition
Acceptable
Performance
Level Tracking Method
Liquidated
Damage
Amount
Inaccurate Billing Each Complaint received where the
Contractor billed a Customer in
error. Inaccurate billing may include
either over or under‐charging of the
Customer relative to the approved
Rates for services.
Less than five
(5) per one
thousand
(1,000) bills
issued.
See above $100/Event
Performance Area: Facilities
Performance Indicator: Contractor’s performance relative to facilities shall be considered acceptable when one hundred percent (100%) of all material types Collected by Contractor shall be delivered to the Approved Disposal Facility or the Approved Recycling Facility as required under Chapter 5 of this Agreement. If Contractor fails to meet this level of performance, the City may assess liquidated damages for the specific performance measures identified in the following table.
Specific
Performance
Measure
Definition
Acceptable
Performance
Level Tracking Method
Liquidated
Damage
Amount
Disposal of
Targeted Diversion
Each individual occurrence of
delivering Recyclable Materials,
Organic Materials, or Reusable
Materials set out for Collection by
the Customer for Disposal rather
than Processing without the written
consent of the City.
No acceptable
failure level
Tonnage reports $500/Ton
Agenda Item #8.1:
112
Specific
Performance
Measure
Definition
Acceptable
Performance
Level Tracking Method
Liquidated
Damage
Amount
Mixing Materials
During Collection
Each individual Container that is
Collected by Contractor in a vehicle
intended or designated for Collecting
a different material type (e.g.,
Recyclable Materials Collected in
Solid Waste vehicle, Solid Waste
Collected in Organic Materials
vehicle, etc.) without the written
consent of the City
No acceptable
failure level
Tonnage reports,
observation,
complaints
$100/Cont
ainer
Agenda Item #8.1:
113
Performance Area: Reporting
Performance Indicator: Contractor’s reporting shall be considered acceptable if Reports required under Attachment C and record requests allowed under Chapter 7 to this Agreement are received, complete, and accurate within seven (7) calendar days after the date due or requested. If Contractor fails to meet this level of performance, the City may assess liquidated damages for the specific performance measures identified in the following table.
Specific
Performance
Measure Definition
Acceptable
Performance Level
Liquidated
Damage
Amount
Late Report Each occurrence of a Report, as required
under Attachment C to this Agreement,
being submitted after the due date.
Reports shall be considered late until they
are submitted in a complete and accurate
format.
Less than seven (7)
calendar days after
reporting due date
$250/Day
Late Report Each occurrence of a Report, as required
under Attachment C to this Agreement,
being submitted after the due date.
Reports shall be considered late until they
are submitted in a complete and accurate
format.
More than seven
(7) calendar days
after reporting due
date or more than
two (2) late reports
in any twelve (12)
month period
$1,000/Day
Agenda Item #8.1:
114
Specific
Performance
Measure Definition
Acceptable
Performance Level
Liquidated
Damage
Amount
Misleading/
Inaccurate
Reporting
Each occurrence of Contractor providing
misleading or otherwise inaccurate
information or reporting to the City
regarding this Agreement.
No acceptable
failure level
$500/Event
By signing at the places provided, each Party specifically confirms the accuracy of the statements made above and the fact that each Party has had ample opportunity to consult with legal counsel and obtain an explanation of Liquidated Damage provisions of the time that the Agreement was made.
Contractor City
Sign: __________________________ Sign: ___________________________ By: ___________________________ By: _____________________________ Its: ___________________________ Its: ______________________________ Agenda Item #8.1:
115
ATTACHMENT F: CORPORATE SECRETARY'S CERTIFICATE
The undersigned hereby certifies that he/she is the Corporate Secretary of Sonoma Garbage Collectors, a California corporation (the “Corporation”), that he/she is authorized to execute and deliver this Corporate Secretary’s Certificate in the name of and on behalf of the Corporation, that the following resolutions have been duly adopted by the unanimous written consent of the duly elected Board of Directors of the Corporation, and that such resolutions have not been amended, modified or rescinded and are in full force and effect as of the date hereof:
“RESOLVED, that the execution, delivery and performance by the Corporation of the Amended and Restated Franchise Agreement between the City of Sonoma (the “City”) and Sonoma Garbage Collectors for Recyclables, Organics, Construction and Demolition Debris, and Solid Waste Collection Services, dated as of [Month, Day], 2024 (the “Franchise Agreement”), be, and it hereby is, ratified, confirmed and approved;
“RESOLVED, that ______________________ or any other officer of the Corporation be, and each of them hereby is, authorized and directed, in the name and on behalf of the Corporation, to execute and deliver the Franchise Agreement in substantially the form presented to the Board, the execution thereof by such officer to be conclusive evidence of such approval.” Executed this _____ day of _____, 2024.
___________________________________
[name]
Corporate Secretary
Agenda Item #8.1:
City of Sonoma
Solid Waste Collection Customers
Public Hearing
June 19, 2024, 6:00 PM
City Council Chambers
177 First Street West
Sonoma, CA 95476
Protests to proposed rates must
be submitted in writing. See
inside for information about how
to submit written protest.
For questions or more information,
please contact:
707-938-3332 or
[email protected]
City of SonomaNo. 1 The Plaza, Sonoma, CA 95476
Recipient NameAddressCity, ST ZIP Code
NOTICE
Proposed
Solid Waste
Service Rates
& Public
Hearing
New City of Sonoma
Solid Waste Service Rates
Includes Funding For:
Compliance with SB 1383
Living Wages
Equipment Upgrades
Sustainability Programs
New Services
NOTICE OF PROPOSED
SOLID WASTE SERVICE
RATES AND
PUBLIC HEARING
Agenda Item #8.1:
Why Am I Receiving This Notice?
This notice is being furnished to you as a solid waste
services customer in the City of Sonoma regarding
proposed new monthly rates for solid waste services.
This serves as notice that the Sonoma City Council
will conduct a Public Hearing at the time, date, and
location enclosed to consider recommended solid
waste service rates.
All those interested are invited to appear at the time
and place of the Public Hearing enclosed to give oral
or written testimony or to submit written protests
regarding the proposed rates. The City Council will
hear and consider written materials submitted
regarding proposed rates at the Public Hearing. The
City Council has the authority to adjust the proposed
rate changes in response to oral testimony and
written materials submitted for consideration,
provided that any adjustments cannot increase rates
beyond those listed in this Notice.
Why Are New Solid Waste Service
Rates Needed?
The City of Sonoma contracts with Sonoma Garbage
Collectors (SGC) for solid waste (garbage, recycling,
organics and other) services provided to residents,
businesses, and the City. The City and SGC have
negotiated changes to the contract which are
necessary for several reasons. New programs and
services are needed for the City to comply with the
mandatory requirements of Senate Bill 1383 which
will reduce greenhouse emissions related to organic
waste disposal. Equipment upgrades including new
trucks and other infrastructure are also needed. New
solid waste service rates will also provide living
wages for SGC’s employees, funding for new
dedicated solid waste sustainability programs.
SGC’s current solid waste service rates are among
the lowest in Sonoma County. Proposed new solid
waste service rates will remain below the
Countywide average for low waste generating
residents and businesses.
New Programs and Services
SGC currently provides solid waste services to
residents and business in the City, as listed online at sonomagarbage.com.
If the new solid waste service rates are authorized
by City Council, the new programs, services, and
benefits will include:
Enhanced customer service programs
New carts, dumpsters, and debris boxes
New collection vehicles
New battery recycling service for residents
Zero Waste Coordinator and public education
Zero Waste services at City parks and events
Free compost events for residents
Living wages for SGC employees
Compliance with State law SB 1383
New Monthly Solid Waste Service Rates
Can
Size
Current Rates
(effective 7/1/2023
Proposed Rates
(effective 7/1/2024)
Monthly
Change
20-gal $ 14.27 $ 17.12 $ 2.85
32-Gal $ 22.91 $ 27.49 $ 4.58
64-Gal $ 48.27 $ 57.92 $ 9.65
96-Gal $ 73.40 $ 88.08 $ 14.68
The full list of current and proposed residential and
commercial SGC solid waste service rates can be
found online at www.sonomacity.org/garbagecollectors.
Maximum Annual Adjustment
Solid waste service rates will be adjusted annually on
July 1, 2025, through July 1, 2028, based on the
indexed rate adjustment methodology (inclusive of
changes in the external costs of landfilling garbage) in the Agreement between the City and Sonoma
Garbage Collectors, which has resulted in average
annual increases of 5.16% since 2007.
How Do I Protest The Proposed
Solid Waste Service Rates?
You have the right to protest the proposed solid
waste service rates. The protest must be in
writing, and it must be submitted by either the
property owner or a current ratepaying tenant. It
must include the property service address and/or
the assessor’s parcel number, the eligible
individual’s name (property owner or tenant), a
statement to the effect of “I protest the proposed
solid waste service rates,” and an original signature.
Written protests may only be submitted by mail or
in-person to the Office of the City Clerk, City of
Sonoma, No. 1 The Plaza, Sonoma CA 95476, or
during the Public Hearing on Wednesday, June 19,
2024. All protests must be received by the City
Clerk before the conclusion of the Public
Hearing. The Clerk will not accept or consider any
protest received after the conclusion of the Public
Hearing.
Only one written protest per affected property
will be counted. Telephone, e-mail, and fax
protests will not be accepted. At the Public
Hearing on June 19, 2024, the City Council will
accept and consider all written protests and hear all
oral comments on the proposed solid waste service
rate changes. Oral comments will not be counted as
protests unless accompanied by a written protest as
outlined within this notice.
What is Organic Waste?
→ Food Scraps, Coffee Grounds, Tea Bags
→ Food-Soiled Paper Products
Pizza Boxes, Coffee Filters, Napkins,
To-go Bags/Boxes (no Styrofoam or Plastic)
→ Green Waste
Landscape & Pruning, Leaves, Flowers
→ Lumber, Wood
》
Agenda Item #8.1:
1512 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com June 12, 2024
David Guhin
City Manager
City of Sonoma
submitted via email: [email protected]
SUBJECT: Solid Waste Franchise Fee Study – R3 Report
Dear Mr. Guhin,
R3 Consulting Group, Inc. (R3) is pleased to submit the attached report of Solid Waste Franchise Fee Study (Study) to the City of Sonoma (City). This report presents our analytical methodology, results and findings, and recommendations regarding the solid waste Franchise Fee paid by the City’s contracted solid waste collection service provider, Sonoma Garbage Collector (Contractor), per the Agreement for Solid Waste Collection Services (Agreement) between the City and the Contractor.
The purpose of this Study was to comprehensively analyze and calculate the following:
City’s Costs: The annual costs to the City for performing its management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system.
Property Use Charges: The annual use charge to the Contractor for its special and lasting access to use government property in the public right-of-way for placement of solid waste containers and collection of the solid waste contents.
Pavement Impacts: The annualized costs for pavement repair, maintenance, and rehabilitation resulting from the unique impacts to City street pavement caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service.
We then compared the calculated values for each component to the projected fiscal year (FY) 2024-25 Franchise Fee projected to be paid by the Contractor to the City per the Agreement (pending Council approval). We found that the City’s current and projected Franchise Fee revenues are less than the sum of the City’s Costs and government Property Use Charges calculated in this Study. Based on these results, we conclude that the City’s fee amount is not more than necessary to cover the City’s reasonable costs in managing and administering the Agreement and the sanitation system plus the reasonable value of the Contractor’s use of the public right-of-way.
We appreciate the opportunity to be of service to the City. If you have any questions regarding this report or need additional information, please contact me.
Sincerely,
Garth Schultz | Principal
R3 Consulting Group, Inc.
510.292.0853 | [email protected]
Agenda Item #8.1:
TABLE OF CONTENTS
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report toc - i
1. Executive Summary
page 1
2. Methodology & Calculations
page 4
3. Findings & Conclusions
page 18
4. Recommendations
page 19
Agenda Item #8.1:
1. EXECUTIVE SUMMARY
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 1 of 19 Background
The City’s Agreement with the Contractor is for the collection, processing, and disposal of solid waste from covered waste generators in the City. The Agreement provides the Contractor with the exclusive right to provide critical aspects of the City’s sanitation system, including solid waste collection and the other services and programs included in the Agreement. The Agreement specifies that the Contractor will charge solid waste service subscribers, with the Contractor billing and collecting revenues from subscribers and the City authorizing the maximum rates that the Contractor may charge pursuant to the rate adjustment methodology included in the Agreement.
Per the Agreement, the Contractor pays the City a Franchise Fee to cover the costs incurred by the City in managing, administering, enforcing, and supplementing the services provided in the Agreement, as well as the charge for the use of the public right-of-way for the special and lasting access to use it for setout and collection of solid waste containers.
Purpose
The purpose of this Study is to identify the amounts that may be reasonably recovered through the Franchise Fees paid by the Contractors to the City. In terms of the applicable legal framework, this analysis seeks to quantify whether amounts that may be reasonably recovered through the Franchise Fees paid by the Contractors to the City fall within an exemption to the definition of a tax per Article XIII C, Section 1(e) of the California Constitution (“Proposition 26”).
There are four primary exceptions to the Proposition 26 definition of tax that are relevant:
Exception 1: “A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.” Exception 2: “A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” Exception 3: “A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.” Exception 4: “A charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property.” The Franchise Fee is a fee with three components. The first component includes the City’s and proportionate costs (City’s Costs) and is a legal fee per Exceptions 1, 2 and 3. The second component includes the proportionate charges for the Contractor’s use of the public right-of-way (Property Use Charges) and is a legal fee per Exception 4. This Study also calculates the City’s proportionate costs associated with pavement impacts (Pavement Impacts) which could constitute legal fees per Exceptions 1 and 2 (note that the City is not currently being compensated for Pavement Impacts).
Methodology and Findings
To complete this Study, R3 reviewed and analyzed information provided by the City and the Contractor pertaining to the City’s Costs, Property Use Charges, and Pavement Impacts. Using that information, we then calculated the reasonable and proportionate amounts necessary to cover the City’s costs, including staffing and other costs; use of government property in the public right-of-way; and pavement repair, maintenance, and rehabilitation costs caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service.
Agenda Item #8.1:
Executive Summary
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 2 of 19 All calculated amounts in this Study are in the current Fiscal Year (FY) 2023-24 dollars except where otherwise stated.
City’s Costs
The annual costs for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system includes: staffing salary and benefits, contracted services, capital and equipment depreciation, operations and maintenance, supplies, and overhead for distributed costs including but not limited to property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions.
Staffing costs are calculated based on estimated time allocations (based on historical experience) and other costs are calculated based on estimated share allocations associated with the sanitation system, with distributed overhead applied to both.
The calculation results are $258,792 in staffing costs and $131,553 in other costs, for an annual cost totaling $390,346.
Property Use Charges
The annual charge to the Contractor for use of government property in the public right-of-way is calculated as a function of estimates for the number of solid waste accounts setting out solid waste collection containers in the right-of-way, the set-out area used, the amount of time it is used, and the reasonable market value for the per square foot use of the public right-of-way.
The calculation result for the use of the public right-of-way is a proportionate annual total Property Use Charge of $204,415.
Pavement Impacts
The annualized costs for pavement repair, maintenance, and rehabilitation is calculated based on the proportionate impact to pavement from solid waste collection vehicles compared to other sources of impacts. This calculation accounts for annual repair costs, three-year projections for capital improvement costs, and three-year projections for growth in deferred maintenance. The calculation also accounts for the high loading and slow speed impacts on pavement associated with solid waste collection vehicles.
The calculation result for the proportionate Pavement Impacts caused by Contractor’s solid waste collection vehicles during the course of providing sanitation service is an annualized total repair, maintenance, and rehabilitation cost of $221,099.
Conclusions
Franchise Fee
The FY 2022-23 Franchise Fee paid Contractor to the City was $254,522 and the projection for FY 2023- 24 is $286,342. The projected Franchise Fees for the coming FY 2024-25 (and assuming City Council adoption of recommended new Agreement between City and Contractor) are $343,610. The sum of FY 2023-24 annual City’s Costs and Property Use Charges calculated in this Study is $594,761, which is $251,150 (73%) higher than the projected FY 2024-25 Franchise Fee payments via new Agreement.
The amount of the Franchise Fee is therefore not more than necessary to cover the City’s costs incurred in managing and administering the Agreement and the sanitation system plus the value of the Contractor’s use of the public right-of-way.
Pavement Impacts
The amount of Pavement Impacts calculated in this Study is $221,099. The City is not currently compensated for Pavement Impacts. R3 does not recommend funding this via Franchise Fee at this time.
Agenda Item #8.1:
Executive Summary
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 3 of 19 Reasonableness of Estimates and Assumptions
In performing calculations, it was necessary to estimate certain values for which information could not be attained, and for which reasonable ranges exist. Where assumptions were necessary for completing calculations, our objective was to apply assumptions on the lower end of the reasonable range.
Had we used other higher assumptions, the results of this Study would have been higher calculated Franchise Fee and Pavement Impact amounts. Therefore, we conclude that the calculated fee amounts are not higher than necessary to cover the City’s reasonable costs plus the reasonable value of the Contractor’s use of the public right-of-way.
Limitations
This Study relies on information provided by the City and the Contractor, which we have reviewed and analyzed for reasonableness and accuracy but did not independently audit or verify.
As stated above, it was necessary to estimate certain values for which information could not be attained, and for which reasonable ranges are known to exist. Though changes to estimates and other underlying assumptions may materially change the calculations, we have elected to apply estimates on the low end of reasonable ranges, thus minimizing the potential that changes in calculations would result in different findings. We have reviewed all estimates and assumptions with City staff and legal counsel and have mutual concurrence on applicability and reasonableness of all such values in this Study.
Finally, the methodology employed by this Study calculates the reasonable values for the Franchise Fee within the context of current laws, regulations, and court rulings. Changes in the legal framework may require revisions to the methodology and findings contained in this Study.
Agenda Item #8.1:
2. METHODOLOGY & CALCULATIONS
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 4 of 19 City’s Costs
Methodology
R3 reviewed and analyzed information provided by the City pertaining to the General Fund costs incurred for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system.
These costs include any may not be limited to:
Staffing costs, including salaries and benefits.
Contracted services.
Capital and equipment depreciation.
Capital and equipment operations and maintenance.
Supplies and materials.
Overhead for distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions.
Using the total annual salary, benefit, and other cost information provided by the City, we estimated the proportion of costs associated with management and administration of the agreement and the sanitation system. We then calculated the proportionate totals and categorized them by the functions listed in the sections below.
Variables, Estimates and Assumptions
Staffing Costs
Variables associated with salaries and benefits include the allocation of time that positions are dedicated to management and administration of the Agreement and the sanitation system (including time supervising others with primary responsibility for these duties), the amount by which funding of salaries and benefits is paid by the General Fund, and the applicable amount of General Fund overhead.
The estimated time allocation by position category used in this Study (and based on historical experience) is shown in Table 1, below and on the following page. All allocations are based on time review by City staff to determine the percentage allocation.
Table 1: Allocations of Staffing Time by Position
Positions Time
Allocation
Accounting Technician 1.0%
City Manager 2.5%
Director, Public Works 5.0%
Environmental Compliance Analyst 50.0%
Planning and Community Service Director 5.0%
PW Operations Manager 5.0%
PW Project Manager 7.0%
Special Events Coordinator 7.0%
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 5 of 19 Positions Time
Allocation
Street Maintenance Worker I 11.0%
Street Maintenance II 90.0%
Streets Supervisor 11.0%
Sustainability Coordinator 80.0%
R3 verified with City staff that the salaries and benefits included in this Study are paid by the General Fund – any non-General Fund portions of positions included in Table 1 have been excluded from the calculations. A General Fund overhead rate of 10% (estimated low end range for such vales) is also applied to the total allocated costs.
Other Costs
Variables associated with the City’s other (i.e., non-salary and benefit) costs include the proportionate allocation of those costs that are for management and administration of the Agreement and the sanitation system, the amount by which these costs are paid by the General Fund, and the applicable amount of General Fund overhead.
The estimated time allocation by cost category used in this Study is shown in Table 2, below, along with the explanation for the allocation values.
Table 2: Allocations of Other Costs by Category
Cost Category Cost
Allocation Explanation
Consulting and Legal Costs 100%
Based on actual costs for work associated with
the management and administration of the
City’s Agreement and the solid waste utility.
Street Sweeping and Catch Basin
Waste Removal Costs 80%
Based on estimated proportion of costs
associated with solid waste services in the
Agreement and the sanitation utility.
R3 verified with City staff that the other costs included in this Study are paid by the General Fund – any non-General Fund portions of these costs as included in Table 2 have been excluded from the calculations. A General Fund overhead rate of 10% (estimated low end range for such vales) is also applied to the total allocated costs.
Analysis
Direct Management and Administration
This category includes City staffing and consulting costs for direct management and administration of the Agreement and the sanitation system. Staffing costs include allocated costs for the City’s Public Works Director, Deputy Public Works Director, Sustainably Program Manager, Management Analyst, and Operations and Maintenance Manager, for a calculated $84,827 in annual staffing costs. Additionally, consulting and legal costs amount to $26,820 in annual consulting and legal costs, for $111,447 in this category annually.
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 6 of 19 Indirect Management and Administration
This category includes City staffing costs for indirect management and administration, including supervision of those responsible for direct management and administration of the Agreement and the sanitation system and associated responsibilities. Allocated staffing costs are a calculated total annual cost in this category of $16,170.
CalRecycle and SB 1383 Compliance
This category would include City staff costs and other costs for various activities associated with the City’s need to implement Senate Bill 1383 (Short-Lived Climate Pollutants Act) as well as annual reporting to the State agency CalRecycle. Allocated staffing costs are a calculated total annual cost in this category of $37,884.
Street Sweeping
When the Contractor or individual waste generators do not properly manage the collection of solid waste, that mismanaged solid waste tends to end up in the public right-of-way and on streets, where it must be removed by the City. Street sweeping captures solid waste that ends up in public streets because of improper collection. Most, if not all, of the solid waste that ends up in the streets is generated by properties that receive solid waste collection services from the Contractor.
For the purposes of this Study, we do not assume that all mismanaged solid waste that ends up on the City’s streets is generated by properties receiving solid waste services. Rather, because there is the possibility that some solid waste collected by street sweeping operations was originally generated by other sources, this Study estimates that only 80% of the solid waste collected by street sweepers was generated by properties receiving solid waste services. This assumption is consistent with other studies conducted by R3 (e.g., for the cities of Garden Grove and San Bruno) wherein street sweeping activities were allocated between 77.4% and 90% to the sanitation system.
This category includes City staffing, capital equipment, and operations and maintenance costs for the City’s street sweeping operations. The allocated and annualized costs for capital equipment costs are $40,333 annually.
Catch Basin Waste Removal
As with street sweeping, solid waste that is not properly managed by waste generators or the Contractor, and not otherwise captured by street sweeping operations, accumulates in catch basins and other trash capture devices in the City’s storm drain system. As with the street sweeping category, we do not assume that all mismanaged solid waste that ends up in catch basins or trash capture devices is generated by properties that receive solid waste services; the 80% estimate used for street sweeping costs is also applied here, and for the same reasons.
This category includes City capital equipment, and operations and maintenance costs for the City’s catch basin waste removal operations. The allocated and annualized costs in this category are a calculated total of $64,600.
Illegal Dumping Clean-up
The City’s Public Works maintenance crews also clean up solid waste materials that are littered and/or illegally dumped throughout the City. This category includes City staffing costs for illegal dumping cleanup as well as costs for outside contractors and service providers for clean-up of un-housed encampments. Allocated staffing costs for the Public Works maintenance crews are calculated to be $110,974 annually.
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 7 of 19 Waste Collection at City Events
This category includes City staff costs and other costs for collection of waste generated and disposed of at City public events. Allocated staffing costs for this category are calculated to be $8,938 annually.
Annual Total of City’s Costs
Table 3, below, shows the total of the City’s Costs for management and administration of the Agreement and the sanitation system as calculated in this Study, by category.
Table 3: City’s Annual Costs by Category and in Total
Category Staffing
Costs Other Costs Total
Direct Management & Administration $84,827 $26,620 $111,447 Indirect Management & Administration $16,170 $ - $16,170 CalRecycle & SB 1383 Compliance,
Implementation & Enforcement $37,884 $ - $37,884
Street Sweeping $ - $40,333 $40,333
Catch Basin Waste Removal $ - $64,600 $64,600
Illegal Dumping Response, Clean-up,
Mitigation, & Prevention $110,974 $- $110,974
City Events Solid Waste Collection $8,938 $ - $8,938
Total Annual Costs to the City $258,792 $131,553 $390,346 Property Use Charges
Methodology
R3 reviewed and analyzed information provided by the City and the Contractor pertaining to Property Use Charges for Contractor’s use of the public right-of-way for collection of solid waste collection containers.
They then calculated the annual Property Use Charges based on:
The setout area used for collection of solid waste containers (in square feet).
The amount of time that the area is used.
The market value for use of the public right-of-way (in dollars per square foot).
The number of solid waste subscribers setting out collection containers in the public right-ofway.
Using these values, we calculated the market value for the Contractor’s use of government property in the City.
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 8 of 19 Variables, Estimates, and Assumptions
Setout Area
Standard residential solid waste collection setouts include three solid waste collection containers, usually carts with wheels and lids, with one each for garbage, recycling, and organics waste streams. The setout area needed for placement of these containers is inclusive of the width of each container (typically two feet) as well as the minimum required space between the containers and other objects such as cars (minimum of one foot). The set-out area also takes up available parking space and is, thus, assumed to extend six feet out from the curb. Taken altogether, the area for residential setouts is calculated as three containers that are each two feet wide, plus one foot between each container and other objects, for a total area ten feet wide times six feet in depth. The result is 60 square feet of setout area used for collection of solid waste containers in residential areas.
The amount of area used for commercial setouts (in this Study, use of the term commercial also always includes multi-family) can vary widely, as there is no standard commercial subscription size profile – each commercial solid waste subscriber can select from a range of container sizes, with most of them being larger than the containers used in residential areas. Given this complexity, and without the benefit of detailed information regarding the number and size of solid waste of solid waste containers that are set out by commercial subscribers, this Study assumes that the average commercial setout area is only twice that of the residential setout area, for 120 square feet. Commercial solid waste containers, especially the metal bin-type containers, range in size from one cubic yard to four cubic yards (which are approximately two to eight times the volume of the largest residential containers) and are thus typically much larger in footprint area than residential containers. Additionally, commercial subscribers can and often do use a greater number of containers than residential customers. For these reasons we conclude that our assumption of 120 square feet for commercial setouts (twice the residential setout) is likely lower than the average setout area needed in commercial areas and is, therefore, conservative. If detailed information about the number and type of commercial containers were available, it is likely that information would support setout areas larger than the 120 square feet assumed in this Study.
Setout Time Usage
Standard residential solid waste collection is performed once weekly. Most residential containers are set out the evening prior to collection and are removed from the public right-of-way the following afternoon.
Thus, for the purposes of this Study, we assume that collection containers are in the public right-of-way for an average of 18 hours per day, one day per week, which amounts to approximately 10.71% of the time (18 hours divided by 24 per day divided by 7 days per week).
Commercial solid waste subscription setout time can vary widely – just as there is no standard commercial subscription size profile, likewise there is no standard collection frequency. Commercial solid waste subscribers can select collection frequency between once and six times per week, and with different frequencies for different waste streams. Given this complexity, this Study assumes that the average commercial collection frequently is twice weekly amount (10.71%) for 21.42% of the time. As with the setout area, this estimate is likely lower than the average commercial collection frequency and is, therefore, conservative for the reasons stated in the prior section.
Number of Subscriptions Setting Out Containers
The Contractor reports that there are 4,051 residential and 263 commercial solid waste service subscribers in the City. However, not all subscribers set out their containers in the public right-of-way for collection all the time. To account for non-setouts (either because subscribers don’t have waste materials to set out or because they receive on-premises service) we assume that only 90% of residential solid waste subscribers set out containers on a regular basis, for a resulting total of 3,646 average residential setouts. It is also understood that most commercial subscribers do not set out containers in the public Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 9 of 19 right-of-way, and therefore we conservatively assume that only 5% of commercial subscribers set out containers on a regular basis, for a resulting total of 13 average commercial setouts.
Reasonable Market Value for Use of Public Right-of-Way
To establish a reasonable market value for use of the public right-of-way, R3 conducted an online survey of recent purchases of bare land in and around the City. R3 found 26 recent sales of bare land with a median sale value of $14.25 per square foot. To that value, R3 added the per square foot value of the City’s street pavement, which is calculated as a function of the total replacement value of the City’s streets ($89,911,000) divided by the area of the streets in square feet (6,047,970) both of which are contained in the City’s Pavement Management Program report (see next section). The resultant value of the street improvements is $14.87 per square foot, which, when added to the $14.25 market value of bare land, yields $29.12 per square foot.
This value is then divided by a rental realization rate of 3.72, which was derived based on the ratio of the $29.12 per square foot “purchase value” compared to 18 market rates for rental of bare land for parking, for an annual rental value of $7.82 per square foot. The result is multiplied by the General Fund overhead rate of 10% to account for distributed costs including but not limited to property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions, with the resulting per square foot value of $8.60.
This value is comparatively low given other methods that we could have used. For example, other communities have established use charges for use of the public right-of-way via “Streatery” programs or parklet rentals. To our knowledge, the minimum annual use charge per square foot in these communities is $5.21 and the largest is $30.00. The average annual per square foot use charge in these communities is $15.67.
Analysis and Total Annual Property Use Charges
Calculating the total annual Property Use Charges using the variables, estimates, and assumptions from the prior section is a function of multiplication, as shown in Table 4, below.
Table 4: Calculation of Total Annual Property Use Charges Variable Category Residential Commercial
Grand Total Annual
Property Use Charge
Setout Area 60 SF 120 SF
Setout Time Usage 10.71% 21.42%
Annual Use Charge $8.60 per SF $8.60 per SF
Number of Setouts 3,646 13
Total Annual Property
Use Charges $201,541 $2,874 $204,415
Pavement Impacts
Methodology
R3 reviewed and analyzed information provided by the City pertaining to Pavement Impacts from the Contractor’s solid waste collection vehicles. We then calculated estimates of the proportionate share of the average annual pavement repair, maintenance, and rehabilitation costs associated with solid waste collection vehicles based on the proportionate impact to pavement from solid waste collection vehicle compared to other sources of impacts.
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 10 of 19 The calculation accounts for the City’s annual repair costs, five-year projections for capital improvement costs, and five-year projections for annualized growth in deferred maintenance. The calculation also accounts for the high loading and slow speed impacts on pavement associated with solid waste collection vehicles.
The calculation proportionately allocates the average annual pavement management costs to solid waste vehicles based on:
The equivalent single-axle load and proportionate impacts from speed for those vehicles compared to other vehicles.
The number of vehicle trips on City streets.
The proportion of vehicle trips that are made by trucks versus automobiles.1 Variables, Estimates, and Assumptions
The weight, loading, slow speed, and frequent stops that characterize solid waste collection vehicle operations impose unique and quantifiable impacts on the City’s street pavement. It is important to understand that, while calculation of impacts to pavement can be precise for individual vehicles, out of necessity we made certain assumptions about overall blended pavement impacts associated with several categories of vehicle types for the purposes of this Study. This is because we sought to calculate estimated impacts to all street pavements in the City, covering all vehicle uses, and precise traffic information at that scale is not currently available. Thus, we make informed assumptions regarding several variables necessary for this Study.
For each of these variables, there is a range of potentially reasonable values that may be used. We have selected values at the low end of the reasonable range to present findings that conservatively calculate estimated values of the pavement impacts associated with the Contractor’s solid waste collection vehicles during the course of providing sanitation service.
Assumptions used are described in the following subsections, which reference sources supporting the summary provided here. We must note that changes in assumptions may result in material changes in calculation results and findings.
Factors Impacting Pavement Conditions
Street pavement repair, maintenance, and rehabilitation needs, and their resulting costs are affected by several factors, including vehicle usage and trench cuts and subsurface activities related to underground utilities.
Environmental conditions such as light and water also contribute to pavement repair, maintenance, and rehabilitation needs in combination with the primary impacts from vehicles, trench cuts, and subsurface activities. This Study only focuses on the impacts to street pavement from vehicles, and the proportion of those impacts that are attributable to the Contractor’s solid waste collection vehicles as they perform sanitation service.
City’s Costs for Pavement Repair, Maintenance and Rehabilitation The City regularly projects its costs for repair, maintenance, and rehabilitation of pavement resulting from degradation due to use. These projections, and the basis for them, are documented in Pavement 1 Our analysis accounts for the distribution of vehicles among the 13 Federal Highway Administration vehicle classifications, which include passenger cars, SUVs/pick-ups, buses, and multiple truck and truck/trailer axle combinations.
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 11 of 19 Management Technical Assistance Program (P-TAP) reports which the City commissions with engineering consultants.2
Per the City’s February 2022, P-TAP report, the City’s projected average annual pavement maintenance and rehabilitation costs from 2023 through 2027 for its entire street network, are approximately $90 million. Also, per the P-TAP, deferred pavement maintenance on the City’s streets3 (which is the result of degrading pavement conditions associated with the impacts of vehicles) is projected to increase by $723,068 million between 2023 and 2027.4
Axle Loading
Our methodology for calculating the proportionate amount of pavement maintenance, and rehabilitation impacts for the Contractor’s vehicles is grounded in the fact that all vehicles, including solid waste collection vehicles, degrade pavement during use. Measurement of that impact – also known as “vehicle loading” – can be estimated, quantified, and expressed as an Equivalent Single Axle Load (ESAL), which is a function of the vehicle’s weight and the distribution of that weight over the vehicle’s axles.
It is important to note that heavier vehicles have more impact on pavement and have a higher vehicle loading ESAL value. It is also important to note that ESAL values are associated with vehicle loading only, and not the speed of the vehicle; it is therefore assumed that relative ESAL values between vehicle types are based on vehicles travelling at the same rate of speed.
For this analysis, R3 used the vehicle categories and average ESAL values shown in Table 5, below. Table 5 explains and cites supporting information for how the ESAL for each vehicle type was determined.
Table 5: ESAL Value Assumptions by Vehicle Type
Vehicle Type ESAL
Value Source
Automobiles (Passenger Cars) 0.0008
AASHTO (American Association of State Highway and
Transportation Officials) Design Guide with ESALs by
Vehicle Type
Average of All Other Trucks5 0.0171
Calculated Value Using AASHTO Design Guide with
ESALs by Vehicle Type, Federal Highway Administration
ESALs by Vehicle Type, Comparative Traffic Counts
Solid Waste Vehicle (Garbage) 1.0000
Calculated Values by Type Using Example Axle Weights
and AASHTO Axle Load Equivalency Factors Solid Waste Vehicle (Organics) 1.0000 Solid Waste Vehicle (Recycling) 0.7500
2 The City’s current P-TAP report dated April 26, 2023, was prepared by Adhara Systems, Inc., a consulting firm with expertise in pavement engineering. Broadly speaking, a P-TAP is designed to provide objective information and useful data for analysis so that managers can make more consistent, cost-effective, and defensible decisions related to the preservation of a pavement network. 3 Deferred maintenance is planned maintenance that gets delayed and backlogged because of a lack of funding.
Deferred maintenance costs remain on the books until they are funded and the work is completed and recategorized in the City’s P-TAP.
4 Our analysis assumes funding based on the City’s budgeted pavement maintenance costs as presented in the PTAP under Scenario 2 “Maintaining PCI 62”. 5 “All other trucks” means all vehicles with high loading and impact on street pavement other than solid waste vehicles.
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 12 of 19 Given the assumed ESAL values in Table 5, a solid waste vehicle collecting garbage has 1,250 times the impact of an automobile. We are aware of other research concluding that the impacts of solid waste collection vehicles may be as high as 8,000-9,000 times the impact of passenger cars; thus, our assumed ESAL of “1” for garbage collection vehicles is on the low end of the reasonable range of ESALs for such vehicles.
Speed Impact
Impacts to flexible pavements (which are typical for residential streets) are also influenced by vehicle speeds, with impacts being exponentially higher when a load carrying vehicle is moving at a very slow speed.6 This is demonstrated in Chart 1, below.
Chart 1: Exponential Relationship Between Speed and Pavement Impacts Unlike typical traffic on residential streets, which tends to travel at or near the posted speed limit (25 miles per hour [mph] in the City), solid waste vehicles slow and stop for collection in front of each household, averaging approximately 4 mph to 8 mph.7 At these low speeds, and as shown in Chart 1, vehicles have approximately 2.2 to 2.6 times the impact to the pavement than they would travelling only at the 25 mph speed limit.
In this Study we conservatively assume that solid waste vehicles in the City may be travelling at a faster 10 mph average speed, and we thus assume that the relative impact of speed is a factor of 2, not the higher
2.2 to 2.6 factors corresponding with slower speeds as noted above. We apply this speed factor of 2 as a multiplier to the ESAL loading for solid waste collection vehicles in our analysis of impacts to residential streets only; the factor is not applied to the ESAL loading for arterial and collector streets, as those streets are not typically comprised of flexible pavements, solid waste collection vehicles stop less frequently on those streets (and thus have a higher average speed).
6 Effect of truck speed on the response of flexible pavement systems to traffic loading; International Journal of Pavement Engineering, July 2020; Michael R. S. Mshali and Wynand JvdM. Steyn. 7 Real-world activity, fuel use, and emissions of heavy-duty compressed natural gas refuse trucks; Science of the Total Environment 761, 2021; Gurdas S. Sandhu, H. Christopher Frey, Shannon Bartelt-Hunt, Elizabeth Jones.
0.00 0.50
1.00 1.50
2.00 2.50
3.00 3.50
0 2 4 6 8 10 12 14 16 18 20 22 24 26
Relative Impact
Average Speed (MPH)
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 13 of 19 Vehicle Passes Per Day
By estimating the number and type of vehicles (i.e., solid waste collection vehicles, automobiles, and all other trucks) that travel on a street, and the average pavement impacts (measured in ESAL loading) associated with each vehicle type (described in the prior subsection), the total impacts that the pavement will experience can be estimated in a mathematical calculation. Our analysis makes informed assumptions about the number of vehicle passes (meaning trips down streets) by type for the two major types of streets identified by the City in its P-TAP. Those two types of streets are: high-traffic-volume streets (namely arterial and collector streets) and low-traffic-volume streets (residential streets). Specific data for the City relating to the number of vehicle passes per day and the proportion of those passes that are comprised of trucks was not available for this Study.
For the low-traffic residential streets, we used an estimate of 1,500 vehicle passes per day. We also estimated that 5% of residential traffic trips were made by trucks. For arterial and collector streets, we used an estimate of 15,000 passes per day. The 1,500 passes per day for residential streets and 15,000 passes per day for arterial and collector streets figures are conservative. In other comparative communities the actual passes per day are less than these figures. For example, in the County of Sonoma, the values are 784 passes on residential streets (approximately one half of the values assumed in this Study) and 3,980 passes on commercial and arterial streets (less than one third of the values in this Study). On the other end of the range, in the City of Anaheim, which is much larger than the City and with high levels of tourism, has approximately 3,000 passes on residential streets (twice the assumptions used in this Study), and 25,000 passes on commercial and arterial streets (less than twice the assumptions used in this Study). With these known data points, and given the size, demographics and geographics of the City, we conclude that, were specific vehicle traffic counts available for City streets, the actual vehicle passes would be less than the assumptions used in this Study. In that case, the outcome would be a greater proportionate impact from solid waste collection vehicles than calculated via this Study.
For the percentage of those trips that are trucks, we used a calculated value based on comparative traffic counts from the City of Torrance in 2023 and which is the same dataset that we used to estimate the average ESAL for “All other trucks” in Table 5. That dataset calculates the average daily traffic counts for all vehicles on commercial streets in that city, with 87.7% of the average daily traffic count being comprised of passenger cars and motorcycles and the remaining 12.3% being comprised of trucks.
For the purposes of this Study, we have assumed an even higher percentage of arterial and collector street traffic being trucks, at 15% of the average daily traffic. As with the prior assumptions, this value is conservative in that it returns a low proportionate value for the impacts to streets from the Contractor’s solid waste vehicles. Table 6, below, is a summary of the assumptions used in this Study related to average daily vehicles passes and the percentage that are trucks assumptions used in this Study.
Table 6: Vehicle Passes Per Day by Street Type
Street Type Vehicle Passes Per Day Percentage of Vehicle Passes That Are Trucks
Residential 1,500 5%
Arterial and Collector 15,000 15%
Vehicle Passes By Vehicle Type
The variables described in the prior subsection provide the overall number of vehicle passes per day, and the percentage of those passes that are trucks. To isolate the vehicle loading impacts to pavement associated with solid waste collection vehicles, we need to determine the number of passes that those Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 14 of 19 vehicles make per day. This is a relatively simple calculation based on the weekly schedule of collections for solid waste collection services.
For the low-traffic residential streets, solid waste collection operations are on a weekly schedule. Since weekly collections are on both sides of the street, each street is driven twice (once in each direction) by a minimum of one of each type of solid waste collection vehicle. For the purposes of this Study, we assume that each solid waste collection and vehicle makes two passes per week, or 0.286 passes per day, on residential streets. This value does not account for the fact that some streets are driven on during nonroute days so that collection vehicles can access streets on a given route, meaning that the actual average passes per week in the City must be higher than stated above.
Using the lower passes per week is conservative in that it returns a lower result for the street impacts from the Contractor’s solid waste vehicles. For the high-traffic arterial and collector streets, which are primarily commercial, the schedule for solid waste collection can vary. Solid waste collection services may be provided up to five or six times a week for larger waste generators and may be as low as weekly for smaller generators. Additionally, because solid waste generators in commercial areas are not all on the same collection schedules as residential accounts are, vehicles in commercial areas pass over the same streets multiple times to serve accounts with different collection schedules.
For the purposes of this Study, for arterial and collector streets, we assume that solid waste collection vehicles collecting garbage for landfill disposal pass over each street two times per day (once in each direction), while solid waste collection vehicles for organics and recycling pass over each street once per day (one half in each direction). Total passes for organics and recycling collection vehicles are less because it is generally the case that service levels for garbage are at least twice those of the corresponding organics or recycling service level. As with the number of passes on residential streets, this value does not account for the fact that some streets are driven on during non-route days so that collection vehicles can access streets on a given route, meaning that the actual average passes per week in the City must be higher than stated above. Using the lower passes per week is conservative in that it returns a lower result for the pavement impacts from the Contractor’s solid waste vehicles.
The number of passes per day for the remaining vehicle types – automobiles and other trucks – are simply calculated as a function of the total number of daily passes, the total number of those that are trucks (based on the percentages discussed in the prior section), and the number of passes for solid waste collection vehicles. For example, for the City’s residential streets, given the assumed 1,500 passes per day and 5% (75) of those being trucks, there are 1,425 automobile passes per day (1,500 x 95%).
With three types of solid waste collection vehicles each passing 0.286 times per day (as described above), the total passes per day are 0.857 (3 x 0.286). The number of passes for all other trucks is
74.143 (150 minus 0.857). Table 7, below, provides a summary of vehicle passes per day by street type.
Table 7: Vehicle Passes Per Day by Vehicle Type and Street Type Vehicle Type Residential Streets Arterial and Collector Streets Automobiles (Passenger Cars) 1,425.000 12,750.000
Average of All Other Trucks 74.143 2,247.433
Solid Waste Vehicle (Garbage) 0.286 1.429
Solid Waste Vehicle (Organics) 0.286 0.714
Solid Waste Vehicle (Recycling) 0.286 0.714
Total 1,500 15,000
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 15 of 19 Percentage of Streets by Type
A final variable that needs to be addressed in the percentage of streets by type. This information is included in the City’s P-TAP, including the relative area by street type, as shown in Table 8, on the following page.
Table 8: Percentage of Streets by Type
Street Type Area (Square Yards) Percentage of Area
Residential 3,807,281 63.0%
Arterial 1,060,472 17.5%
Collector 1,180,217 19.5%
Total 6,047,970 100%
Analysis
Percentage Impact for Solid Waste & Street Sweeping Vehicles by Street Type With the variables for ESAL by vehicle type, the multiplication factor for the relative impacts of speed for solid waste collection vehicles on residential streets, and the number of passes by vehicle type established, we then calculate the relative percentage impact associated with each vehicle type. This is calculated as a function of ESAL multiplied by speed factor (residential streets only) multiplied by the number of weekly passes, multiplied by ESAL, with the product being the total vehicle loading pavement impact by vehicle type per week.
Totaling the weekly total vehicle loading by vehicle types yields the total estimated loading experienced by each street type (residential vs. arterial and collector). From there, we calculate the percentage contribution to total vehicle loading for solid waste collection vehicles, which is the total weekly ESAL loading associated with solid waste collection vehicles divided by the total ESAL loading for the street.
Table 9, below, and Table 10, on the following page, show these calculations and the results.
Table 9: Calculation of Solid Waste Pavement Impacts – Residential Streets
A B C D E F
Vehicle Type
Average
ESAL /
Vehicle
(Per Table
5)
Relative
Impact
from
Speed
Passes /
Day /
Vehicle
Type
(Per Table
7)
Passes /
Week /
Vehicle
Type
(C x 7)
Total
Weekly
ESAL
Loading
(A x B x D)
Percent of
Total
ESAL
Loading
(E / 27.85)
Automobiles 0.0008 1x 1,425.000 9,975 7.98 28.65%
All Other Trucks 0.0171 1x 74.143 519 8.87 31.86%
Garbage Vehicles 1.0000 2x 0.286 2 4.00 14.36%
Organic Material Vehicles 1.0000 2x 0.286 2 4.00 14.36% Recycling Vehicles 0.7500 2x 0.286 2 3.00 10.77%
Total 1,500 10,500 27.85 100%
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 16 of 19 As shown in Table 9, for the City’s residential streets we calculated the percentage impacts for solid waste vehicles to be 39.49% of total impacts to residential street pavement (14.36% times 2 plus 10.77%).
Table 10: Calculation of Solid Waste Pavement Impacts – Arterial and Collector Streets
A B C E F
Vehicle Type
Average
ESAL /
Vehicle
(Per Table 5)
Passes /
Day /
Vehicle Type
(Per Table 7)
Passes /
Week /
Vehicle Type
(B x 7)
Total Weekly
ESAL
Loading
(A x C)
Percent of
Total ESAL
Loading
(E / 359.13)
Automobiles 0.0008 12,750.00 88,250 71.40 19.88%
All Other Trucks 0.0171 2,247.143 15,730 268.98 74.90%
Garbage Vehicles 1.0000 1.429 10 10.00 2.78%
Organic Material Vehicles 1.0000 0.714 5 5.00 1.39%
Recycling Vehicles 0.7500 0.714 5 3.75 1.04%
Total 15,000 105,000 359.13 100%
For the City’s arterial and collector streets, Table 10 calculates the percentage impact from solid waste vehicles to be 5.22% of the total impacts (2.78% plus 1.39% plus 1.04%).
Average Annual Pavement Expenses
Per the P-TAP report, the City is projected to spend on average $193K per year on pavement repair, maintenance, and rehabilitation.
Average Annualized Deferred Maintenance
In addition to contributing to annual pavement maintenance and rehabilitation costs, solid waste vehicles also contribute to deferred maintenance. The P-TAP report projects that deferred maintenance will increase by $1.4 million from 2024 to 2026, which is $723,068 annually.
Reduction for Pavement Subsurface Impacts
Expenditures for pavement maintenance repair impacts to pavement caused by vehicles, trench cutting, and subsurface activities, as well as the environmental impacts associated with those same sources of primary impacts. We roughly estimate the impacts of trench cutting and subsurface activities on the City’s streets to be 10% of all pavement repair, maintenance, and rehabilitation costs. This leaves 90% of the average annual pavement management costs and average annualized deferred maintenance needs associated with vehicle impacts.
This is demonstrated in Table 11, on the following page.
Agenda Item #8.1:
Methodology & Calculations
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 17 of 19 Table 11: Average Annual Pavement Impacts from Vehicles Category Amount of Impacts
from All Sources
Reduction for
Subsurface Activities
Amount of Impacts
from Vehicles
Average Annual
Pavement Expenses $193,800 -10% $174,420
Average Annualized
Deferred Maintenance $723,068 -10% $650,761
Total $916,868 -10% $825,181
Table 12, below, shows the breakdown of the average annual pavement impacts from all vehicles by street type, using the total from Table 11.
Table 12: Total Pavement Impacts from Vehicles by Street Type Variable Residential Arterial and Collector Total
Percentage of Streets
by Type (From Table 8) 63% 37% 100%
Total $519,463 $305,718 $825,181
Total Annual Pavement Impacts
Calculating the total annual Pavement Impacts using the variables, estimates, and assumptions from the prior section is a function of multiplication, as shown in Table 13, below.
Table 13: Calculation of Total Pavement Impacts from Contractor’s Vehicles Variables Residential Arterial and Collector
Grand Total
Annual Pavement Impacts
from Vehicles (From Table
12)
$519,463 $305,718
Percentage Impacts from
Contractor’s Vehicles
(From Tables 9 and 10)
39.49% 5.22%
Total $205,138 $15,961 $221,099
Agenda Item #8.1:
3. FINDINGS & CONCLUSIONS
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 18 of 19 Franchise Fee
The FY 2022-23 Franchise Fee paid to the City was $254,522 and the projection for FY 2023-24 is $286,342. The projection for FY 2024-25 is $343,610.
R3 calculated reasonable estimates of the City’s Costs and Property Use Charges based on actual and estimated cost information provided by the City, and with reasonable and conversative assumptions for estimated values.
The sum of FY 2023-24 annual City’s Costs of $390,346 and Property Use Charges of $204,415 for a combined total of $594,761.
The calculated amounts bear a reasonable relationship to the Contractor’s burdens on the City resulting from the management and administration of the Agreement and the sanitation system, and the reasonable value of the Contractor’s use of the public right-of-way. The City’s Costs have been reviewed and confirmed by City staff as being representative of the actual time and costs incurred for these activities. The amount of Property Use Charges are proportionately allocated to the Contractor with due recognition of the realities of the Contractor’s operations.
The amounts calculated in this Study are $251,150 (73%) higher than the projected FY 2024- 25 Franchise Fee payments. It is highly unlikely, given the justification provided herein, that FY 2024-25 Franchise Fee payments will exceed the amounts calculated in this Study.
The projected FY 2024-25 Franchise Fee is less than would be justified by the calculations in this Study (as was the FY 2023-24 Franchise Fee).
The Franchise Fee therefore is not more than necessary to cover the City’s reasonable costs incurred in managing and administering the Agreement and the sanitation system plus the reasonable value of the Contractor’s use of the public right-of-way.
Pavement Impacts
R3 calculated reasonable estimates of the Pavement Impacts from Contractor’s solid waste collection vehicles based on quantifiable impacts from such vehicles.
The annual amount of Pavement Impacts calculated in this Study is $221,099.
The amount calculated Pavement Impacts bear a reasonable relationship to the Contractor’s burdens on the City resulting from the pavement impacts caused by Contractor’s solid waste collection vehicles. Calculations of Pavement Impacts have been proportionately allocated to the Contractor with due recognition of the impacts from loading, speed, number of trips, and other causes of pavement repair, maintenance, and rehabilitation needs.
The City is not compensated for Pavement Impacts currently and R3 does not recommend including such funding of the Franchise Fee at this time.
Agenda Item #8.1:
4. RECOMMENDATIONS
City of Sonoma | Solid Waste Franchise Fee Study – R3 Report 19 of 19 Annual Adjustments
Given that the City’s Costs, Property Use Charges, and Pavement Impacts will all tend to change over time in response to changing staffing, benefits, and other costs, it would be appropriate for the City to implement an annual adjustment to the Franchise Fee.
R3 recommends the City consider including an automatic annual adjustment that would change the fees in proportion to the percentage change in the Consumer Price Index (CPI).
We recommend the CPI for All Urban Consumers (CPI-U) for the San Francisco Bay Area (U.S. Bureau of Labor Statistics series ID: CUURS49BSA0).
Sources and Uses Accounting
Currently, the City’s Costs and Property Use Charges are not tied to Franchise Fee revenues in the City’s accounting system. The City could implement project code accounting and/or enterprise fund accounting for the Franchise Fee to better track source revenues and their uses. In either case, allocated and/or direct staffing and other costs could be tied to source revenues, while the Property Use Charges could be transferred out for general use.
R3 recommends the City consider implementing sources and uses accounting practices for Franchise Fee revenues, City’s Costs, and Property Use Charges.
Periodic Recalculation
Over time, the City’s Costs associated with the Agreement and the sanitation system, the value of Property Use Charges for use of the public right-of-way, and the annualized costs associated with Pavement Impacts from the Contractor’s solid waste collection vehicles may change in ways that vary from the annual change in the CPI. Additionally, changes in City policies, programs, procedures, organization, geopolitical boundaries, laws, regulations, court rulings, and/or other factors may also trigger a need for recalculating fees.
R3 recommends the City consider updating this Study periodically (e.g., every five years) or more frequently if needed to recalculate fees in response to other factors.
Agenda Item #8.1:
City of Sonoma
Agenda Item Summary
Meeting: City Council - 19 Jun 2024
Department
Administration
Staff Contact
Rebekah Barr, MMC, City Clerk
Agenda Item Title
Appointment to the Design Review & Historic Preservation Commission Summary
All City Commissions are fully seated, with the exception of one At-Large position on the Design Review & Historic Preservation Commission. This At-Large seat can be filled by either a City or Valley resident. These seats are appointed by a majority vote of the Council.
The following applications were received or on file *:
NAME RESIDENCY
Steve Caniglia * Valley
Susan Bugatto * City
Scott Cohen * Valley
Daniel Sohn Valley
Recommended Council Action
Make one appointment by majority vote of the City Council.
Alternative Actions
Council discretion.
Financial Impact
There is no financial impact resulting from this action.
Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Applications
Agenda Item #9.1:
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THIS DOCUMENT AND ALL ATTACHMENTS ARE AVAILABLE FOR PUBLIC INSPECTION City of Sonoma
COMMISSION APPLICATION
Received Date: June 6, 2024
Application Type: Design Review and Historic Preservation Commission- At- Large Commission Seat
CA-24-18
NAME: Daniel H. Sohn
ADDRESS:
PHONE:
EMAIL ADDRESS:
EDUCATIONAL BACKGROUND: (High School, College, Professional, Vocational, or other Schools Attended. Please include Major or Field of Study, Dates attended, Degree and date of Degree) • Bachelor of Applied Science: Supervision & Management Broward College, Davie FL
• Diversity, Equity & Inclusion Certificate
University of South Florida, Tampa, FL
• Institute of Elected Municipal Officials Certificate
Florida State University: John Scott Dailey Florida Institute of Gov., Tallahassee, FL • Certified Human Rights Consultant
U.S. Institute of Diplomacy & Human Rights, Washington, D.C.
COMMUNITY INVOLVEMENT: • President- Elect, UNA-USA of Sonoma County • Fmr. Board Member | State of California, U.S. Selective Service System • Fmr. President/ CEO, Antioch Chamber of Commerce
• Fmr. President/ CEO, Antioch Convention & Visitors Bureau • Fmr. CEO, Sonoma County Alliance
• Fmr. Interim CEO, El Centro Chamber of Commerce & Visitors Bureau • Fmr. CEO, Imperial Valley Regional Chamber of Commerce • Fmr. City Councilmember, Town of Haverhill, FL
• Fmr. Committee Member, Florida League of Cities, Land Use & Economic Development Policy Committee
GENERAL QUESTIONS:
Have you ever attended a meeting of the Commission to which you are applying? If so, how many? • Yes, 1.
What is your understanding of the role and responsibility of this Commission? • The Design Review and Historic Preservation Commission aims to protect Sonoma's architectural heritage and promote excellent town design by reviewing proposed projects and developments.
Eligible for At-Large Agenda Item #9.1: