Thousand Oaks City Council
March 24, 2026

Agenda Related Items - Meeting of March 24, 2026
Supplemental Packet Date: March 24, 2026

THOUSAND OAKS CITY COUNCIL
Supplemental
Information
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4:30 p.m.

Supplemental Information:

Any agenda related public documents received and distributed to a majority of the City Council after the Agenda Packet is printed are included in Supplemental Packets. Supplemental Packets are produced as needed, typically a minimum of two—one available on the Thursday preceding the City Council meeting and the second on Tuesday at the meeting. The Supplemental Packet is available for public inspection on the City’s website at toaks.org/agendas or by contacting the City Clerk Dept at (805) 449-2151 during normal business hours [main location pursuant to the Brown Act, G.C. 54957.5(2)].

To: Andrew P. Powers, City Manager
From: Laura B. Maguire, City Clerk
Date: March 24, 2026
Subject: Agenda Item 9.H. – League of Women Voters Primary Election Candidate Forums
The staff report for this item inadvertently identified the incorrect election races for which the candidate forums will be held, if approved. The staff report mentioned the races for Congressional and State Assembly seats; however, as stated in the League of Women Voters’ request letter that was included as Attachment #1, the candidate forums will be for Assembly District 42, Ventura County Supervisor District 2, and one countywide, nonpartisan race (potentially).

Recommendation #1 in the staff report has been modified to allow whichever race is able to participate in the forum, as included below:

RECOMMENDATION:

1. Approve League of Women Voters’ request to use the Scherr Forum Theatre and Thousand Oaks Television (TOTV) for televised Primary Election Candidate Forums on April 30, 2026.

2. Approve budget appropriation from A/C #001-0000-311-1000 (General Fund - Fund Balance) to A/C #001-2110-611-6910 (General Fund - Election Costs).

3. Authorize expenditure of $3,200 in FY 2025-26 from A/C #001-2110-611-6910 (General Fund - Election Costs).

4. Find that this is not a project as defined by the California Environmental Quality Act.

CCD:630-20\lm\H:\COMMON\Elections\2026\Staff Rpts\03242026 LWV Forum Supplemental Memo.docx 1 THE FOLLOWING
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RELATED TO ITEM

12.A.

March 24, 2026
Via Electronic Submission Only
[email protected]
Honorable Mayor Taylor
Honorable Members of the City Council
City of Thousand Oaks, City Hall
2100 Thousand Oaks Blvd.

Thousand Oaks, CA 91362
Re: Agenda Item No. 12(A) - Notice of Exemption for the Exclusive Solid Waste Franchise Agreement with Arakelian Enterprises, Inc., dba Athens Services (Athens)
Dear Honorable Mayor Taylor and Honorable City Councilmembers:

On behalf of G.I. Industries dba Waste Management (G.I.), and for the reasons detailed herein and supported by the documents accompanying this letter, G.I. respectfully urges the City Council to exercise its discretion to reject the exemptions previously relied on in 2021 for purposes of awarding the Franchise Agreement (FA or Project) to Arakelian Enterprises Inc. dba Athens Services (Athens), and instead to direct staff to identify what form of environmental review is most appropriate to comply with the California Environmental Quality Act (CEQA) (Pub. Resources Code, § 21000 et seq.). G.I. specifically urges the Council to adopt recommendation number 3 with specific direction to staff to require environmental review of the FA.

Delegating the CEQA exemption determination to staff as contemplated under the staff report’s option 2 would be unwise and inconsistent with the Court of Appeal’s prior direction in the multi-year litigation that has led the City Council to the new hearing on the applicability of CEQA to the FA. This Court of Appeal direction includes the 2022 opinion overruling the trial court’s judgment granting the demurrer filed by the City and Athens (collectively Respondents) to G.I.’s Petition for Writ of Mandate filed pursuant to the Ralph M. Brown Act (Brown Act).

As noted by the Court, “[a] finding that a project is exempt from CEQA is not a minor matter. Such a finding forecloses any analysis of the project’s environmental impact.” (See Exhibit 34, at p. 11 [first Appellate Opinion ruling in G.I.’ favor].) The Court of Appeal also found that:

Andrea K. Leisy
[email protected]
Nathan O. George
[email protected]
1 Honorable Mayor Taylor
Honorable City Councilmembers
Item No. 12(A)
March 24, 2026

. . . the lead agency has the duty to determine whether a project qualifies for a CEQA exemption. (Guidelines, § 15061(a).) Here the City, as the only agency involved in approving the [FA] contract, is the lead agency.

The City can delegate its duty to its staff to determine whether a CEQA exemption applies. (Guidelines, §§ 15025(a)(1), 15356.) But the delegation only goes so far. The legislative body of the local agency retains the inherent power to overrule its staff’s determination. Thus, the local agency makes the ultimate decision whether a CEQA exemption applies.

The City cannot avoid the Brown Act [here] simply by delegating its duty to its staff. Where a local agency at a regular meeting approves a project that is subject to a staff’s determination of a CEQA exemption, it must give notice of the CEQA exemption on its agenda.
(See Exhibit 34, at pp. 12-13; Exhibit 35 [November 22, 2022, Order Modifying Opinion and Denying Rehearing requested by Respondents], emphasis added.) 1 Under the present circumstances, in which the Court of Appeal has specifically required the City Council to notify the public that it is considering whether the FA is exempt from CEQA, it is the City Council that must make the final CEQA determination for the FA approval at a public hearing. The Court of Appeal reiterated this expectation in its November 7, 2025 order dismissing as moot G.I.’s appeal on the merits of G.I.’s parallel lawsuit raising CEQA issues. (G.I. raised Brown Act and CEQA issues in two separate, but parallel lawsuits.) In the order dismissing G.I.’s appeal in the CEQA litigation, the Court of Appeal stated that “[d]ismissal of this appeal will not preclude judicial review of the project, in the event the City Council finds the project exempt from CEQA, after complying with the disposition in the related [Brown Act] appeal[.]” (Exhibit 37, p. 3.) In other words, the Court of Appeal recognized that the City Council’s decision(s), if any, following the mandatory hearing on the CEQA exemptions would be subject to judicial review, if litigation followed.

Importantly, counsel for both the City and Athens have also gone on record to opine that the City Council must act on the CEQA exemptions. (See Exhibit 59, p. 2 [Joint Letter from the City and Benjamin Shatz, Manatt, Phelps, Phillips to the Court of Appeal dated October 13, 2025, stating, “it is not known what action the City council will take in connection with the public hearing on the CEQA exemption and whether the City council’s future hearing will result in different CEQA issues or not”].) The Court of Appeal’s requirement to notify members of the public that they can testify to the City Council about the potential applicability of the exemptions presupposes 1 Although later unpublished, the opinion remains the law of the case and reflects how the Court of Appeal views delegation under circumstances associated with the FA. 2 Honorable Mayor Taylor
Honorable City Councilmembers
Item No. 12(A)
March 24, 2026

that the City Council is the final decisionmaker with respect to the exemptions. In short, to be compliant with CEQA, the Court of Appeal’s prior opinion, and the Brown Act, the City Council may not lawfully delegate the CEQA exemption determination to staff for final approval as contemplated in option 2 of the staff report.

For the reasons detailed herein, the most legally defensible approach would be for the City Council to direct staff to find that the Class 1, Class 8 and “common sense” exemptions are inapplicable on their face and are not supported by substantial evidence.

The Class 1 and Class 8 exemptions, even if applicable, would in any event be subject to “exceptions” that would preclude the City from relying on the exemptions. (CEQA Guidelines, §§ 15301, 15308, 15061, subd. (b)(3).) Rather than relying on any of these exemptions, the Council should instead vote to direct staff to require environmental review of the FA as originally approved for 15-years (from January 1, 2022, through December 31, 2036) and as subsequently amended, and to determine the appropriate form of the environmental review after consideration of all the issues raised in this letter and the corresponding documents submitted into the City’s record.

Over the past five years, as detailed in Section III below, evidence has emerged demonstrating that Athens misrepresented itself in its response to the City’s Request for Proposal (RFP) as transmitted to the City Council for the FA in 2020-2021. Additional evidence seems to show a pattern and practice by Athens of cutting corners to save time and money, including with respect to environmental permitting, compliance, and the proper treatment and disposal of collected material.

The additional evidence submitted with this letter was not previously included as part of the CEQA record of proceedings. It was therefore not considered by the trial court or the Court of Appeal. As evidenced by the numerous new cases filed over Athens’s alleged illegal dumping, G.I. is also not the only one with ongoing substantive concerns over Athens’s practices. (Exhibits 39-42.)
I. Background
a. Summary of Illegal dumping by Athens, including dumping of material collected from Thousand Oaks under the Franchise Agreement Athens has been named in the following four lawsuits alleging that they are illegally dumping organic matter throughout Southern California:
(1) Blenkhorn v. Arakelian Enterprises, Inc., et al., Kern County Superior Court, Case No. BCV-20-102652-TSC. Complaint filed Nov. 10, 2020. Jury trial scheduled for April 27, 2026.

(2) Brown v. Arakelian Enterprises, Inc. dba Athens Services, et al., Los Angeles Superior Court, Case No. 24STCV33877. Complaint filed December 23, 2024. 3 Honorable Mayor Taylor
Honorable City Councilmembers
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(3) Mroz v. Arakelian Enterprises, Inc. dba Athens Services, et al., Los Angeles Superior Court, Case No. 25STCV02747. Complaint filed January 31, 2025. (4) Brown, et al. v. Arakelian Enterprises, Inc., et al., United States District Court for the Central District of California, Case No. 2:25-cv-2855. Complaint filed April 3, 2025.

Each of the complaints specifically refers to Athens’ Crown facility, which is where, in its 2022-2024 Annual Reports, Athens reported it was taking Thousand Oaks’ mixed organics waste. (See Exhibits 39-41.) From Crown, Athens transports mixed organics waste to its American Organics facility in Victorville, CA, which Thousand Oaks City Staff toured in connection with evaluating Athens’ RFP proposal pursuant to Athens’ representations that it would be taking mixed organics to its “state of the art” American Organics facility.

Crown’s LA Sanitation certification reports confirm that, at minimum, between May 2023 – February 2024, Crown sent all of its mixed organics to American Organics. [Exhibits 43-52 [Monthly Reports for May 2023-February 2024].) As recently as June 11, 2024, Athens represented to the City that some organics material is transferred from Crown to American Organics.

American Organics, however, has been found to have illegally dumped. [Exhibit 53, pp. 1-18 [San Bernardino County Case Summary Report], p. 44 [Notice of Violation (NOV)]. On May 2, 2024, San Bernardino County Code Enforcement issued a Notice of Violation to American Organics stating: “The indicated violation(s) of the international property maintenance code and/or the San Bernardino County Code were observed on the subject property during an inspection conducted on 03/19/2024.” The violation cited is “28.0804 (a) Illegal Dumping.” The Notice of Violation further states:

Corrective Measures: Cease illegally dumping waste matter, or causing, maintaining and/or permitting waste matter to be illegally dumped on this vacant parcel. All illegally dumped material must be removed from the property unless a land use permit is obtained.
(Exhibit 53, p. 44 [NOV].)
As the Court in the above-referenced L.A. case noted when it denied Athens’s attempts to dismiss the Plaintiffs’ unjust enrichment claims via demurrer, Athens’ illegal dumping activity benefitted them by allowing them to “avoid[] tipping fees and associated costs” for the waste it illegally dumped. [Exhibits 55 & 56 [Demurrer Orders].

Athens’ alleged cost-saving illegal dumping activity in 2023-2024 described above (during which time Athens hauled T.O.’s organic waste from Crown to American 4 Honorable Mayor Taylor
Honorable City Councilmembers
Item No. 12(A)
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Organics, and continues to do today) is even more relevant to Thousand Oaks when viewed in light of the fact that “Athens reportedly has lost $16.8 million just in the first two years of the” T.O. contract [i.e., 2022-2023]. [Exhibit 54 [MSJ Order].) The City Council should require staff to consider the existing and future foreseeable significant adverse environmental effects of Athens’s illegal dumping of the City’s waste as part of any future environmental review that it may require here. (Exhibits 30-33.)
b. Athens’s First Amendment to the Franchise Agreement may also cause air emissions to increase over the life of the FA and which have not been identified or considered.

In July 2024, the City adopted the First Amendment to the FA. The first sentence of Section 16.01.3 [Collection Vehicles] of the originally approved FA was changed to read:

Contractor must use new Collection Vehicles at the start of this Agreement and may not use any Collection Vehicle that is more than fifteen (15) ten (10) years old during the term of the Agreement. (See Exhibit 57; AR 249.)

By extending the life of the Collection Vehicles Athens may use to service the FA - for the entire initial life of the FA - the City will not realize emission reductions from Athens’s purchase of cleaner future vehicles in year 10. This change is inconsistent with the FA’s Collection Service Operations Plan (Exhibit 13) which stated that: “Contractor shall procure the latest in low- or zero-emission collection vehicles, utilizing state-of-theart vehicle monitoring technology, while applying the most stringent vehicle maintenance program in the industry.” (AR 178.)
Any environmental review required to be conducted under CEQA by Athens should include this change when considering the potential short- and long-term air quality impacts of the FA as amended. If significant adverse air quality impacts are found, the City may impose mitigation measures under CEQA. c. Relevant Summary of the Court of Appeal Proceedings.

After five years of litigation, the City Council is asked tonight to accept public comment and reconsider its compliance with CEQA for the FA. That may occur tonight or at a future public hearing as explained above.

After reversing the trial court’s eventual decision granting the third demurrer filed by Athens and the City against G.I.’s petition in 2022, the Court of Appeal ruled in G.I.’s favor on the merits finding that the City Council did, in fact, violate the Brown Act because its agenda for the 2021 City Council hearing on the FA did not provide 72 5 Honorable Mayor Taylor
Honorable City Councilmembers
Item No. 12(A)
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hours’ notice of the specific CEQA exemptions adopted. The Court found that the City Council had thereby deprived the public of an opportunity to comment on the CEQA exemptions. The Court found the City Council’s 2021 action on the CEQA exemption determination null and void. (Exhibit 36 [G.I. Industries v. City of Thousand Oaks et al. (August 5, 2025, B337103)].) The City Council must therefore take new action to comply with CEQA.

The Brown Act case has been remanded back to the trial court to decide the matter of attorneys’ fees. That hearing is scheduled for this Thursday, March 26, 2026. Athens claims it “is not (and cannot be) either directly or indirectly liable for any attorneys’ fees or costs in this Brown Act case.” (Exhibit 60 [Athens’ Notice of Joinder in City’s Opposition to Motion for Attorneys’ Fees (March 9, 2026)].) Athens therefore seeks to potentially leave the City holding the bag for fees G.I. incurred due, in large part, to Athens’ aggressive and preferred litigation tactics.

II. The City Council should require Athens to conduct environmental review and mitigate all significant impacts of the FA under CEQA. a. The City must use baseline conditions as they existed in 2020—before the FA became effective—to identify and consider the FA’s foreseeable and potentially significant adverse environmental impacts under CEQA.

CEQA requires a complete description of the existing physical environment from which the potentially significant adverse environmental impacts of the Project must be measured.2 Such a baseline and comparison is necessary to inform the decisionmakers and the public of a project’s potential significant environmental impacts, as CEQA mandates.3 As explained by the Court of Appeal:

Our Supreme Court has recognized that to achieve CEQA’s goal of informing decision makers and the public of any significant environmental effects a project is likely to have, the environmental disclosure document (such as an EIR) “must delineate environmental conditions prevailing absent the project, defining a baseline against which predicted effects can 2 CEQA Guidelines, §§ 15125, subd. (a), 15063, subd. (d). 3 See Taxpayers for Accountable School Bond Spending v. San Diego Unified School Dist. (2013) 215 Cal.App.4th 1013, 1037; POET, LLC v. State Air Resources Bd. (2017) 12 Cal.App.5th 52, 79-81. It is the City’s responsibility to find this information and use it to inform its decision. (Gentry v. City of Murrieta (1995) 36 Cal.App.4th 1359, 1378–1379 [“CEQA places the burden of environmental investigation on government rather than the public.”]; Sundstrom v. County of Mendocino (1988) 202 Cal.App.3d 296, 311 [“The agency should not be allowed to hide behind its own failure to gather relevant data”].)
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Honorable City Councilmembers
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be described and quantified.” (Citation.) Thus, the concept of a baseline is a key component in identifying and quantifying a project's environmental effects.4
Here, the baseline for the City’s CEQA compliance for the FA is the physical environment as it existed before the FA approval in March 2021 and January 1, 2022, effective date. This would include, for example, trucks traveling to and from G.I.’s existing Simi Valley hauling yard and Simi Valley landfill at that time, rather than any conditions that arose as a result of the City’s approval of the FA and subsequent implementation. For example, the appropriate pre-2021 baseline would not include Athens’s use of its Sun Valley storage yard and hauling facility to service the FA, in the interim, before construction and use of the subsequently approved but then (2021-2022) secret Conejo Property as a local Athens truck storage and maintenance facility. Use of only a 2026 baseline would foreclose the City’s ability to consider any of the potentially significant (short and long term) adverse environmental impacts of the FA and would be inappropriate under CEQA.

In 2021, Douglas E. Corcoran, then Vice President of G.I. Industries, outlined some of the then existing baseline conditions in his declarations submitted during litigation in G.I. Industries v. City of Thousand Oaks et al., Case No. 56-2021- 00553340-CU-WM-VTA.5
Specifically, prior to the March 2021 approval of the FA and January 2022 effective date, collection trucks used to service the City were stored, maintained, and refueled at G.I.’s Collection Operations Yard in Simi Valley, approximately 10.6 miles from Thousand Oaks’s City Center.6 Collected waste materials were directed to the Simi Valley Landfill and Recycling Center (Simi Valley Landfill), approximately 10.3 miles from Thousand Oaks’s City Center.7
4 POET, LLC v. State Air Resources Bd. (2017) 12 Cal.App.5th 52,78; see also Bloom v. McGurk (1994) 26 Cal.App.4th 1307, 1315 [baseline for exemption determination was environment as it existed “at the time of the agency’s determination”]. 5 See Exhibit 4 [Sept. 2, 2021 Declaration of Douglas E. Corcoran in support of Petitioner’s Motion for Preliminary Injunction]; Exhibit 6 [Sept. 20, 2021 Supplemental Declaration of Douglas E. Corcoran in support of Petitioner’s Motion for Preliminary Injunction]; Exhibit 7 [Oct. 15, 2021 Declaration of Douglas E. Corcoran in support of Motion to Set Aside Order Denying Petitioner’s Motion for Preliminary Injunction]. 6 Exhibit 4, ¶ 6.
7 Exhibit 4, ¶¶ 7, 30.
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Honorable City Councilmembers
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Once collected, G.I. processed the materials at the Simi Valley Landfill and transferred some materials to the appropriate facility—including G.I.’s Sun Valley Recycling Park, the Gold Coast Recycling and Transfer Station in Ventura, and a composting facility in Ventura County.8 This initial consolidation of waste materials at the Simi Valley Landfill before transferring processed materials to the appropriate secondary facility avoided collection trucks travelling on SR-119 and I-5, among other congested routes as what later occurred under the FA with Athens.9 The City Council’s approval of the FA resulted in the use of different hauling routes from these baseline conditions under G.I.’s operations and, accordingly, caused approximately a half million additional miles travelled each year by Athens’s trucks.10 Those trips were never analyzed or mitigated under CEQA.

Mr. Corcoran also declared that prior to the approval of the FA, Athens only used a one-acre site in Santa Paula and did not own or control any property within the City of Thousand Oaks or the immediately surrounding area that could be used to store and refuel the collection trucks necessary to service the City pursuant to the terms of the FA.11 This fact has been undisputed by Athens and City staff. Accordingly, any expansion or change that Athens planned to make, including construction of the Conejo Property, as a consequence of the FA required consideration under CEQA against the then existing environmental baseline conditions.12
b. The 2021 CEQA exemptions are inapplicable to the FA.

The Class 1, Class 8, and “common sense” exemptions do not apply to the FA either on their face or after consideration of the evidence contained in the accompanying documents to this letter. An agency’s reliance on CEQA exemptions must be narrowly construed to afford the fullest possible environmental protection and should not be expanded beyond the “reasonable scope of their statutory language.” 13 Moreover, “exceptions” to the categorical exemptions apply here, rendering the Class 1 and Class 8 categorical exemptions inapplicable. The City cannot defensibly rely on the exemptions to determine that the FA is exempt from CEQA. 8 Exhibit 4, ¶¶ 7-9.
9 Exhibit 4, ¶¶ 7-10; Exhibit 6, ¶ 22.
10 Exhibit 6, ¶¶ 23-27.
11 Exhibit 7, ¶¶ 8, 10.
12 Exhibit 7, ¶¶ 13-17.
13 Save Our Carmel River v. Monterey Peninsula Water Management Dist. (2006) 141 Cal.App.4th 694, 697.
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Honorable City Councilmembers
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i. The Class 1 exemption does not apply to the FA.

The plain language of the Class 1 exemption limits its application to the “operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing ... structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.”14 This language refers to the approval of minor physical changes to existing structures.15 The rationale for the existing facilities exemption is that the environmental effects of the operation of such facilities must already have been considered.16
The Class 1 exemption does not apply to the FA on its face because the FA is a contract, not an existing structure or facility.17 As noted above, the exemption applies to the use of existing facilities, not the approval of contracts that result in foreseeable adverse environmental impacts from the use of different facilities and different streets and highways, for example.18
In contrast to the plain language of the exemption, the FA created a new contract requiring the use of different facilities, the effects of which have yet to be analyzed. Worse yet, the FA also caused the need for Athens to construct a new local truck hauling, office and CNG refueling facility, including for truck storage, maintenance and dispatch, at 14 CEQA Guidelines, § 15301, emphasis added. 15 See, e.g., id., listing examples for use of the Class 1 exemption in subds. (a) [minor alterations to partitions, plumbing, and electrical conveyances], (b) [existing publiclyowned utilities], (c) [existing highways, streets, sidewalks, gutters, and trails], (d) [restoration of deteriorated structures], (e) [limited additions to existing structures], (l) [demolition and removal of small structures], (n) [conversion of existing single family residence to office use], (p) [use of an existing single family residence as a small family day care home]. 16 Azusa Land Reclamation Co. v. Main San Gabriel Basin Watermaster (1997) 52 Cal.App.4th 1165, 1195.
17 Los Angeles Department of Water and Power v. County of Inyo (2021) 67 Cal.App.5th 1018, 1036-1041 [county’s reliance on existing facilities exemption was an abuse of discretion as a matter of law where court found the county misconstrued the scope of the exemption].
18 See, e.g., World Business Academy v. State Lands Com. (2018) 24 Cal.App.5th 476 [upholding application of the Class 1 exemption to a contractual lease extension for an existing nuclear powerplant]; North Coast Rivers Alliance v. Westlands Water Dist. (2014) 227 Cal.App.4th 832, 867-868 [upholding application of the Class 1 exemption to water purchase contracts that involved a continuation “without any changes” of the use of existing facilities]; City of Pasadena v. State of California (1993) 14 Cal.App.4th 810 [upholding application of the Class 1 exemption to the lease of an existing office building].
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Honorable City Councilmembers
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2498 Conejo Center Drive, Thousand Oaks (the Conejo Property) which, again, has never been analyzed in conjunction with the impacts of the FA.

The new facility at the Conejo Property was not disclosed by Athens or city staff in 2021, despite knowledge of Athens’s need for the Property to service the FA and the then active negotiations to acquire the Property with the Conejo Unified School District. (See Exhibits 8, 9, 10, 11, 12, 13 [emails between ARC Investments/Athens, City staff and school district].) Instead, in 2021, Athens vaguely represented that it would pursue a property in Santa Paula or elsewhere.19
New and different collection and long haul truck trips are therefore ongoing from those that were previously needed to service the City and which have never been subject to environmental review. The construction and operation of the Athens Services’ Conejo Center Truck Yard Project (DP 2021-70408 and PTP 2022-70370) has also never been subject to environmental review.20 The FA and 2021 reliance on the CEQA exemptions did not consider this information, in part, because it was not disclosed to the City Council or the public at the time. Instead, there was a lot of confusion about what, exactly, the FA would require. The City Council may now require this information to be considered as part of its compliance with CEQA. The Class 1 exemption is simply inapplicable.21
ii. CEQA’s Class 8 categorical exemption also does not apply to the FA.

The Class 8 categorical exemption applies to “actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. Construction activities and relaxation of standards allowing environmental degradation are not included in this exemption.”22 This exemption also does not apply to the FA.

First, Athens admitted at the March 9, 2021 City Council hearing that the FA award would result in the “immediate expansion” of the SP Yard or the use of “other 19 See AR 178-193[Executed FA, Exh. 13]; AR 968-973 [March 9, 2021 City Council Hearing Transcript].
20 Exhibit 1[NOE]; AR 922-926, 968-973, 991-992 [trips to/from Sun Valley v. Simi]; AR 1382-1383 [Athens’s RFP Response Site Plans].
21 Pub. Resources Code, § 21084, subd. (a); cf. AR 1621-1622, 1682, 1707, 1812 [G.I.’s RFP Response, noting existing facilities used to service the City at the time of the initial RFP award and exemption].
22 CEQA Guidelines, § 15308, italics added.
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Honorable City Councilmembers
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[unidentified] options,” which included new construction at the Conejo Property.23 Several Councilmembers’ questions focused on Athens’s ability to establish and use a local truck storage and maintenance yard to service the FA.24 Athens and the City understood that Athens did not have a local truck yard, and that servicing the City would require Athens to construct such a facility—either by expanding the SP Yard or building a new facility at the Conejo Property. As noted above, the City was aware of Athens’s intended construction and use of the Conejo Property as a truck yard to service the FA.25 Accordingly, both City staff and Athens knew that future construction activities were necessary to implement the FA. Such “immediate expansion” (or entirely new construction), by its very nature, include construction activities, among other impacts which preclude reliance on the Class 8 exemption.

Second, in awarding the FA, the City did not act as a regulatory agency “authorized by state or local ordinance” to maintain or protect the environment. Rather, the Council approved a contract with a private company for the provision of waste services. As such, no regulatory process or action authorized by state or local ordinance applies.

The FA was also not entered into pursuant to an ordinance, rule, or regulation.

Nor was it entered into exclusively—or even primarily—to benefit the environment, as compared with 2021 existing baseline conditions.26 Compliance with existing State laws listed in the City’s NOE regarding the collection, diversion, processing and disposal, among other actions, of municipal solid waste, recyclables, and organics is compulsory.

The City also did not take a new action, as a regulatory agency, to adopt an ordinance pursuant to a regulatory process with more stringent requirements than those that already exist.
23 See AR 989-991, 998-999, 1009; AR 1279, 1287-1288 [Athens’s RFP Response, admitting local SP Yard would reduce truck traffic, wear and tear on roadways and emissions as opposed to using Sun Valley]; AR 1382-1384. 24 AR 922-926, 985, 991-992, 1007-1010. 25 See Exhibit 12 [Mar. 24, 2021 Email from Stephen Kearns to Cesar Torres]; Exhibit 11 [Mar. 15, 2021 Email from Jason Morgan to Victor Hayek]; Exhibit 13 [June 25, 2021 Email from Nick Caniglia to the City Planning Department and Patrick Dominque].
26 Save Our Big Trees v. City of Santa Cruz (2015) 241 Cal.App.4th 694, 710-712 (Save Our Big Trees) [exemption does not apply where an ordinance has many protective aspects but loosens existing protections in a few instances]; cf. Magan v. County of Kings (2002) 105 Cal.App.4th 468, 476-477 (Magan) [ordinance regulating sewage sludge upheld under Class 8 exemption because the agency provided substantial evidence that “the ordinance was adopted for the maintenance, enhancement, and protection of the environment”].
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Honorable City Councilmembers
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The FA simply does not constitute the type of environmentally beneficial regulatory action that the Class 8 exemption was intended to address, such as approving an ordinance to create a wildlife mitigation corridor or banning single-use plastic bags.27 iii. Exceptions to the categorical exemptions apply to the FA.

Even if the Class 1 and Class 8 categorical exemptions applied (they do not), exceptions to the exemptions would prevent reliance on the exemptions for purposes of the FA approval and, accordingly, would render the exemptions inapplicable.28 Pursuant to CEQA Guidelines section 15300.2, subdivision (c), categorical exemptions “shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances.” An unusual circumstance may exist, for example, where a project “has some feature that distinguishes it from others in the exempt class, such as its size or location.”29
Athens’s need to construct a local truck yard to fulfill its obligations under the FA is (and was) an unusual circumstance that prevents reliance on the Class 1 and Class 8 exemptions. This circumstance distinguishes it from other projects that fall within the exemptions because the full scope of the Project will result in significant effects on the environment due to unusual circumstances. Moreover, and relatedly, Athens’s failure to definitively identify the location for its local truck yard—and any associated construction—in its RFP Response or during the March 9, 2021 hearing is also an unusual circumstance. The ambiguous nature of the FA resulting from this omission makes it distinct from other projects in the Class 1 and Class 8 categories.

The lack of this fundamental information in the FA, and the lack of candor from the private party that would benefit from the FA, made it impossible for the public and decisionmakers to accurately consider the potentially significant construction and operational environmental impacts that foreseeably resulted from the FA. Without a full 27 See California Construction and Industrial Materials Assoc. v. County of Ventura (2023) 97 Cal.App.5th 1, 12-13 [upholding county ordinance creating wildlife migration corridor under Class 7 and 8 exemptions]; Save the Plastic Bag Coalition v. City and County of San Francisco (2013) 222 Cal.App.4th 863, 876 (Save the Plastic Bag Coalition) [Class 7 and 8 exemptions apply where agency is acting in a regulatory capacity, such as the passage of an ordinance to promote the general welfare by banning single-use plastic bags]; Mountain Lion Foundation v. Fish & Game Com. (1997) 16 Cal.4th 105, 125 [delisting of protected species did not fall within Class 7 or 8 exemptions because delisting “withdraws a number of statutory protections”]; see also Pub. Resources Code, § 21084, subd. (a).
28 Pub. Resources Code, § 21084; CEQA Guidelines, § 15300. 29 Berkeley Hillside Preservation v. City of Berkeley (2015) 60 Cal.4th 1086, 1105. 12 Honorable Mayor Taylor
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project description, for example, and without knowing where those facilities would be located and where Athens’s trucks need to travel, it is not possible to analyze the changes in vehicle miles traveled (VMT) or noise resulting from Athens’s new hauling routes and facilities compared to the 2021 existing conditions prior to approval of the FA. Due to these unusual circumstances, there remains a fair argument that the FA had, and continues to have, significant effects on the environment from increased noise, air quality/GHG, traffic safety hazards, and VMT.30 The construction of a new facility and generation of different truck trips and routes, with the attendant noise, air, biological resource and GHG emissions, among other impacts, make the categorical exemptions— which are intended to apply only to “projects that have been determined not to have a significant effect on the environment”—inapplicable.31
In addition, under CEQA Guidelines section 15300.2, subdivision (b), all categorical exemptions “are inapplicable when the cumulative impact of successive projects of the same type in the same place, over time is significant.” By nature of using different facilities from those used by G.I., including use of congested highways with existing significant amounts of truck traffic, the FA foreseeably results in new potentially significant cumulative noise, air quality, and traffic safety impacts.32 The FA has resulted in, and will continue to result in, unstudied cumulative impacts from noise, air quality/GHG, traffic safety hazards, and VMT. As a result of these reasonably foreseeable cumulative impacts, the categorical exemptions that the City relied on in 2021 are inapplicable.

Furthermore, as mentioned above and discussed in greater detail below, Athens is credibly accused of illegally dumping hazardous waste disguised as green and organics waste from its Sun Valley (Crown) Facility and American Organics Facility. This is an 30 See Voices for Rural Living v. El Dorado Irrigation Dist. (2012) 209 Cal.App.4th 1096, 1109-1110 [unusual circumstances exception found to apply to agency’s reliance on exemption for water service agreement that significantly expanded water use]; see also Save the Plastic Bag Coalition, supra, 222 Cal.App.4th at p. 878 [“‘“The Guidelines do not define the term ‘unusual circumstances.’” … [A]n unusual circumstance refers to “some feature of the project that distinguishes it” from others in the exempt class”’”].) 31 Pub. Resources Code, § 21084, subd. (a); see AR 1621-1622, 1682, 1707, 1812 [existing facilities used to service the City at the time of the initial RFP award and exemption]; Exhibit 17; Exhibit 18.
32 See Exhibit 4, ¶ 10; Exhibit 6, ¶¶ 22-27 [explaining why the FA will result in nearly half a million additional miles traveled each year by Athens’s trucks to transport nonmunicipal solid waste to Athens’s Sun Valley material recovery facility (MRF) for processing, and approximately 160,000 additional VMT per year for MSW collection vehicles when based at the location of Athens’s facility in Sun Valley]; see also Protect Niles v. City of Fremont (2018) 25 Cal.App.5th 1129, 1149-1152 [EIR required where substantial evidence, including comments from nearby residents, supports a fair argument that new intersection would create traffic safety impacts]; Exhibit 18. 13 Honorable Mayor Taylor
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additional unusual circumstance that distinguishes the approval of the FA from the Class 1 and Class 8 categories. Thus, Athens has not only displayed a lack of candor in representing how it will provide waste management services to Thousand Oaks, but also may be guilty of illegal actions adversely affecting the environment. For all of these reasons, including unusual circumstances due to apparently bad behavior by Athens, the City cannot rely on the Class 1 or Class 8 categorical exemptions under CEQA for the FA, and it must undergo some form of environmental review to comply with CEQA. iv. The “common sense” exemption does not apply to the FA.

The FA also conflicts with the plain language of the “common sense” exemption.

CEQA Guidelines section 15061, subdivision (b)(3) provides that “[a] project that qualifies for neither a statutory nor a categorical exemption may nonetheless be found exempt under . . . the ‘common sense’ exemption, which applies ‘[w]here it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment’ (CEQA Guidelines, § 15061, subd. (b)(3)).”33 The FA falls outside the plain language of the “common sense” exemption because there is at least a possibility that it would have a significant effect on the environment due to: (1) changes in facilities and truck travel routes used by Athens as opposed to G.I. and Harrison in 2020-2021; and (2) the then-proposed expansion of the SP Yard—or, as later came to light—the planned construction of the Conejo Property.

While, under the FA, Athens services the same City public and private customers, Athens uses different facilities and routes.34 Athens’s construction of the Conejo Property and use of different streets, hauling routes and facilities causes different and new noise, air quality, GHG, VMT, and traffic safety impacts. Athens’s collection truck trips are also less efficient than those occurring in 2021.35 The fact that Athens provides services similar to those provided by G.I. and Harrison does not amount to substantial evidence that it can be seen with certainty that there is no possibility that the FA has significant effects on the environment.

As transportation expert Neal Liddicoat concluded, there is “a reasonable potential for significant impacts … in the areas of vehicle-miles-traveled and traffic 33 Muzzy Ranch Co. v. Solana County Airport Land Use Com. (2017) 41 Cal.4th 372, 380, emphasis added.) In other words, this exemption does not apply “‘to activities which have the potential for causing environmental effects.’” (Davidon Homes v. City of San Jose (1997) 54 Cal.App.4th 106, 113.
34 See Exhibit 1. 35 Exhibit 4, pp. 3-4; Exhibit 6, pp. 7-9 [estimating that Athens’s vehicles will travel approximately an additional 160,000 miles based on its proposed Sun Valley location]; AR 1683, 1712.
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safety.”36 Specifically, Mr. Liddicoat estimated that, based on Athens’s use of its Sun Valley facility—regardless of whether it uses the SP Yard or Conejo Property for its truck hauling yard, the FA “will result in an additional 174,720 vehicle-miles of truck travel” compared to existing conditions prior to approval of the FA, and, “assuming the Conejo [Property] facility is constructed, … will generate an additional 260,160 vehicle-miles of truck travel each year” compared to conditions prior to approval of the FA.37 G.I. was unable to produce this evidence to the Council in 2021 because it was deprived of notice. The trial court therefore did not consider it in its prior judgment of the CEQA case which was dismissed on appeal as moot.

The FA also resulted in impacts to biological resources that have yet to be studied.

As biological resources expert Scott Cashen explained, “at least five special-status plants have the potential to occur” at the Conejo Property which would “most likely … be negatively impacted by construction and operation of the waste hauling operations center” for the FA.38 Moreover, two special-status animal species listed as California Species of Special Concern “have the potential to occur at the [Conejo Property]” and would be impacted by “habitat loss” and “would be subject to being crushed by vehicles during construction and operation of the waste hauling operations center” on the site.39 In addition, a special-status species listed as federally threatened—the coastal California gnatcatcher—“is known to occur in coastal sage scrub habitat immediately east of the [Conejo Property]” and therefore “is likely to occur in any coastal sage scrub habitat that occurs at the [Conejo Property],” and any impacts to such habitat at the Conejo Property “would be significant under CEQA.”40
Therefore, because there is at least a possibility that the FA has, and had, a potentially significant effect on the environment, the City cannot exempt the FA from CEQA under the plain language of the “common sense” exemption.41 c. The City must consider the potential environmental effects of the whole Project.

The City’s approval of the FA required Athens to construct a local truck storage and maintenance facility to service the City (i.e. the Conejo Property). Prior to the City’s FA award, Athens lacked any agreements with other cities or counties that would warrant a new refueling, maintenance and dispatch facility. That fact has never been disputed with any evidence from Athens.
36 Exhibit 18, p. 8.
37 Exhibit 18, pp. 2, 4.
38 Exhibit 17, p. 2.
39 Exhibit 17, p. 4.
40 Exhibit 17, pp. 4-5.
41 CEQA Guidelines, § 15061, subd. (b)(3).
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Athens’s then “immediate” construction/expansion and use of the Conejo Property was therefore a reasonably foreseeable consequence of the approval of the FA award to Athens.42 Accordingly, the City must consider, even retroactively, the potential environmental effects of these aspects of the FA together with the approval of the FA itself, because they are foreseeable consequences of the FA under CEQA.43 III. Athens’s history of misleading the public
a. The City’s RFP for the FA required bidders to disclose the facilities that they intended to use—including any unbuilt or proposed facilities; Athens failed to comply with this requirement.

The City issued its Request for Proposals (RFP) for the FA in July 2020.44 The RFP required all proposers to attest to the truthfulness provided in their responses to the RFP, and to complete “all due diligence” to verify that information.45 The RFP also required all proposers to (i) use low-carbon “alternative” fuels” in its trucks, (ii) disclose any “unbuilt/proposed” facilities anticipated to be used to service the FA, while refraining from relying solely on future facilities or risk disqualification for doing so, (iii) to include an Operations Plan identifying the facilities proposed for use and agree to be bound to use of only those facilities in the FA, if awarded, (iv) to provide the City with maps precisely defining collection routes, and (v) to commit to replace any vehicle that breaks down within one hour.46
Despite Athens explicitly attesting that it had conducted “all due diligence necessary to confirm” that it was in compliance with all of these requirements by signing the certification, Athens was not in compliance with several of these requirements at the time of signing and submitting its RFP Response.47 As a result of Athens’s misleading actions—namely regarding the facilities it would use to service the FA—the City was 42 See Banning Ranch Conservancy v. City of Newport Beach (2012) 211 Cal.App.4th 1209, 1222-1223 [Improper segmentation may exist where “the reviewed project legally compels or practically presumes completion of another action”]. 43 See Laurel Heights Improvement Assn. v. Regents of University of California (1988) 47 Cal.3d 376, 396 [a CEQA determination “must include a[n] analysis of the environmental effects of future expansion or other action if: (1) it is a reasonably foreseeable consequence of the initial project; and (2) the future expansion or action will be significant in that it will likely change the scope or nature of the initial project or its environmental effects].
44 See AR 12; AR 1030. 45 See AR 1092 [RFP, Form I]; AR 1472 [Athens’s executed Form I]. 46 AR 1048, 1059-1060, 1080, 1095, 1150, 1162, 1204.
47 See AR 1433.
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unable to consider the various reasonably foreseeable adverse environmental effects that would result from awarding the FA to Athens.48
As explained above, Athens needed a new local yard to service the FA. The Conejo Property was never mentioned or publicly disclosed. b. Athens misled the City Council and the public regarding its intent to expand its Santa Paula yard to service the FA.

At the time of Athens’s RFP Response—on October 15, 2020—the only City that Athens serviced in Ventura County was Santa Paula.49 Consequently, Athens identified several different proposed primary facilities outside the City of Thousand Oaks, including: Athens’s Sun Valley Material Recovery Facility (MRF) for the processing of mixed recyclables, Athens’s Crown Recycling Services (Sun Valley) for processing mixed food waste, green waste, and construction debris, American Organics in Victorville for organics, and the Calabasas Landfill in Agoura Hills for disposal.50 Sun Valley is approximately 38 miles (each way) from the City Center.

Lacking a local truck storage and maintenance yard, Athens emphasized its plan to purchase and expand the SP Yard off Corporation Street. Athens’s Executive Vice President, Gary Clifford, stated in the cover letter of its RFP Response that “we are currently in negotiations to expand our Santa Paula operations to include a transfer station and a compressed natural gas (CNG) fueling station.”51 Athens’s included a subsection entitled: “Expanding Athens’ Santa Paula Facility” in both the Executive Summary and Operations Plan sections of the RFP Response. These sections explained that Athens “currently leases a hauling facility in Santa Paula,” that it has the right of first refusal to purchase the property,52 and that the property has a conditional use permit (CUP) “to develop a transfer station at the location[.]”53 Its RFP Response also referenced the Mitigated Negative Declaration [MND] for the Santa Paula CUP.54 The RFP Response described Athens’s plan for the SP Yard expansion and that the City of Santa Paula had approved a CUP for the “Santa Paula Hauling Yard” on Corporation Street (PROJECT NO.2012-CUP-03), the MND prepared and adopted for that approval, however, stated that no new construction would occur, that the project 48 See Exhibit 1.
49 AR 19. 50 See AR 1374-1375, 1381-1382, 1385-1386, 1462-1467; AR 355-370 [Executed FA, Exh. 13 – Facilities Tables].
51 AR 1279-1280. 52 Neither counsel for Athens or the City were able to produce the right of first refusal or option agreement for the record of proceedings in the CEQA case. It simply did not exist. 53 AR 1287-1288, 1381[citing CUP PROJECT NO. 2012-CUP-03]. 54 AR 1287, 1381.
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would generate limited vehicle trips, and that additional CEQA review would be required for any future development.55 The limitations of the SP Yard’s prior approvals were not disclosed by Athens. It was only after approval of the FA that G.I. was able to obtain a copy of the MND and CUP from the City of Santa Paula that this information became known.

Athens’s plan for the SP Yard, as stated in the RFP Response, nevertheless included “parking for the Thousand Oaks Collection Vehicles[,]” a maintenance building, “CNG fueling stations for Athens’ near-zero emissions trucks, and potentially a public CNG fueling facility.”56 Athens illustrated these plans with a detailed conceptual site plan for a “Hauling and Processing Facility” off Corporation Street, which included square footage estimates for construction of a new Processing/Transfer Facility, maintenance building, Office/Parts/Dispatch Building, and a Collection Truck Parking Area with 81 parking spaces, as well as a new CNG refueling station.57 Signaling its intention to expand the SP Yard, Athens identified $9 million for “Facility Expansion” in the “Startup Capital Expenses” worksheet it submitted to the City.58 Further obscuring its plans and intentions, Athens also referred to a roughly 1.2-acre site located at 121 N.

Ojai Street as the “Santa Paula Hauling Yard”59—plans for which were never pursued.

At the March 9, 2021, City Council hearing, the City Council considered Athens’s ability to establish and use a local hauling yard to park its collection trucks and fuel them with CNG.60 Athens, however, did not disclose its negotiations with the Conejo Valley Unified School District (CVUSD) to purchase 2498 Conejo Center Drive (the Conejo Property), as discussed in detail below. Instead, in response to a pointed question from Councilmember Al Adam on whether Athens would store its trucks in Santa Paula or Sun Valley, Athens’s Executive Vice President, Cesar Torres, stated:
“[we] have the option to expand immediately in Santa Paula, and we will be doing that after this contract is awarded.”61
After Mr. Torres reassured Councilmember Adam that he felt “confident” Athens could “house the trucks in Santa Paula,” Councilmember Adam stated that Santa Paula 55 See Exhibit 23 [Resolution No. 3701, including Exhibit A, entitled “A Resolution of the Santa Paula Planning Commission Approving a Conditional Use Permit to Allow a Recycling Facility Use On Property Located at 901-911 Corporation Street (APN 099-0- 040-625) (Project No. 2012-CUP-03)]; Exhibit 61. 56 AR 1279, 1381. 57 AR 1382. 58 See AR 1578 [Athens’s Maximum Service Rates (Form I), Startup Capital Expenses Table].
59 AR 355-370; AR 990-992. 60 AR 932, 984, 1008
61 AR 990 [also stating “if we are awarded this contract … we will pursue infrastructure in Ventura County”]; see also AR 989-991, 998-999.
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would be “an obvious plus over Sun Valley.” Mr. Clifford echoed Mr. Torres, explaining that “[o]ur idea in Santa Paula is solid” and that Athens also has the “Sun Valley yard if we need to use that, and we have other options.”62 Athens also did not identify the precise location of the necessary and allegedly then-available local refueling facility, of which there were none adequate to refuel Athens’s trucks, leaving Sun Valley as the only real refueling option. At other times during the hearing, Athens representatives also stated that the company’s local truck storage and maintenance yard might be located in Santa Paula, Sun Valley, or even “other options.”63
In addition to the City Councilmembers focused on Athens’s ability to establish and use the SP Yard as a local hauling yard, numerous public speakers expressed concern and confusion about the precise location and impacts of a new or expanded SP Yard.64 Concerns included the unstudied noise, GHG emissions, and air quality impacts to Santa Paula’s disadvantaged low-income communities.65 Others observed—rightly—that the SP Yard was not permitted for the use(s) Athens proposed.66 Another public commenter, Len Harrison of Harrison, also noted the congested highways to/from the City and Sun Valley, the need for Athens to store, maintain, and refuel its roughly 40 collection trucks in Sun Valley absent a local yard, and the potential for a round-trip to take between two to five hours depending on traffic.67
c. Athens misled the City Council and the public regarding its intent to develop the Conejo Property to service the FA.

Despite the City Council’s clear interest in Athens developing a local facility, Athens did not disclose its then ongoing negotiations with the CVUSD to purchase the Conejo Property. Athens did, in fact, purchase the Conejo Property in June 2021 for development and use as a local hauling yard to service the FA.68 The purchase 62 AR 1009. 63 AR 1007-1008, 923-926, 989-992, 998-999. 64 AR 922-924, 931-932. 65 AR 968-973. 66 AR 923-924. 67 AR 925-926, 938, 941-942, 944. 68 See Exhibit 29 [Oct. 7, 2021 Acorn Newspaper Article, reporting that Athens purchased the Conejo Property “to secure a local site to park its trucks before Jan[uary] 1, when it will start providing trash and recycling services to the city”]. 19 Honorable Mayor Taylor
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agreement,69 dated June 15, 2001 (amended on October 5, 2021), states: “Buyer intends to use the Property for, among other things, a waste hauling operations center[.]”70 On October 8, 2021, G.I. served Public Records Act (PRA) requests on the City and the Conejo Valley Unified School District (CVUSD) attempting to obtain additional information related to the Conejo Property.71
Documents obtained by G.I. from the CVUSD reflect that negotiations with ARC (Athens’s purchasing agent)72 began in early January 2021, well before the Council’s March 2021 FA award. The CVUSD agendas and minutes relating to the negotiation and sale of the Conejo Property were either treated as closed session items or consent items, without substantive staff presentation or public discussion, which did not disclose Athens’s intention to use the property as its hauling, parking, storage, and refueling yard for the FA.73 Athens pursued the site under the veil of “ARC Investments.” The CVUSD’s PRA production included an email dated January 7, 2021 (approximately 67 days prior to FA approval), stating that ARC/Athens’s had completed its due diligence and wished to “expediently proceed with the purchase of the Property without any due diligence-related contingencies for an amount equal to $9,651,330.”74 The CVUSD also produced an email dated February 26, 2021, from Athens’s representative in response to a question from the CVUSD Board, that stated “[i]f ARC 69 The CVUSD’s Agenda for its October 5, 2021, Board meeting identified Perspective Law Group, P.C. (PLG) as the negotiating party to advance the close of escrow on behalf of ARC “and other potential parties to be determined.” (Exhibit 62, p. 3.) Based on information available at the Secretary of States’s website, ARC and PLG acted on behalf of Athens to purchase the Property. (Exhibits 26 & 27.) 70 Conejo Valley Unified School District Reso. No. 20/21-43 Authorizing the Sale of District Real Property Located at 2498 Conejo Center Drive, Thousand Oaks, CA to ARC Investment Group, LLC, Exh. B, p. 1.
71 See Exhibits 25 & 26 [PRA request letters]. 72 Exhibits 27 & 28. 73 See, e.g., Exhibit 20 [Jan. 26, 2021 CVUSD Board Meeting Agenda, listing negotiation conference regarding price and terms for the Conejo Property as a closed session item; Mar. 16, 2021 CVUSD Board Meeting Agenda, listing the continued negotiations regarding price and terms for the Conejo Property as a closed session item; June 1, 2021 CVUSD Board Meeting Agenda, listing the same; Oct. 5, 2021 CVUSD Board Meeting Agenda, listing the approval of the resolution authorizing the purchase and sale of the Conejo Property as a consent item].
74 Exhibit 8 [Jan. 7, 2021 Electronic Mail Letter from Jason R Morgan, Perspective Law Group, P.C. to Dr. Victor P. Hayek, Deputy Superintendent, CVUSD re: That certain real property commonly known as 2498 Conejo Center Drive, Newbury Park, CA 91320].
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is able to acquire the property, it will likely be used by Athens Services pursuant to a long-term waste hauling franchise contract with the City of Thousand Oaks.” 75 The City also produced an email exchange between senior level City staff dated January 20, 2021, regarding the “Parcel at 2498 Conejo Center Drive.” The email was sent by Helen Cox (Sustainability Division Manager) to Haider Alawami (Economic Development Manager), with cc’s to Kelvin Parker (Community Development Director), Cliff Finley (Public Works Director), Nader Heydari (Deputy Public Works Director/City Engineer), and Stephen Kearns (Planning Division Manager). In the email, Cox stated that “[o]ne of the proposers on the City’s new waste hauling contract is interested in buying/leasing the two parcels for a fleet storage/service yard and is inquiring whether that would be a permitted use. Below are the parcel maps.”76 A March 24, 2021, email from City Planning Division Manager Stephen Kearns to Athens’s Executive Vice President Cesar Torres thanked Torres for “following up” and explaining that Kearns had “completed the research” needed to provide direction to Athens to continue processing its proposed uses for the Property.77 On March 23, 2022, the City filed a NOE for “Athens Services’ Conejo Center Truck Yard Project” at 2498 Conejo Center Drive in Thousand Oaks, pursuant to the Class 32 In-Fill exemption,78 for use as a CNG filling station, truck repair, office, and associated parking for truck and passenger vehicles. ARC is listed as the Project Applicant.79
75 Exhibit 10 [Feb. 26, 2021 Email Correspondence from Jason Morgan, Partner, Perspective Law Group to Dr. Victor Hayek, Deputy Superintendent CVUSD]. 76 Exhibit 9 [Jan. 20, 2021 Email Correspondence Between Helen Cox and Haider Alawami re: Parcel at 2198 Conejo Center Drive].
77 See Exhibit 12 [Mar. 24, 2021 Email Correspondence from Stephen Kearns, Planning Division Manager, Community Development Department, to Cesar Torres, Athens Services re: “School dist site”]; Exhibit 11 [Mar. 15, 2021 Email Correspondence from Jason Morgan, Perspective Law Group, to Victor Hayek re: 2498 Conejo Center Drive, noting that Perspective Law Group’s “client’s affiliated company’s proposed use of the property is currently being reviewed by the City”]; Exhibit 15 [June 25, 2021 Email Correspondence from Nick Caniglia, JRMA Architects, to the City Planning Department, and including Mr. Patrick Dominque of Athens re: submission of a preapplication to the City, including development application and redacted architectural plans]; Exhibit 2 [Sept. 30, 2021 executed contract (“On Call Agreement Task Order”) with consultant Envicom Corporation to prepare an MND for Athens’s Conejo Property].
78 CEQA Guidelines, § 15332.
79 Exhibit 24 [NOE filed with the Ventura County Clerk-Recorder, on behalf of ARC Investments, for DP 2021-70408, for the “construction and operation of maintenance and dispatch building for a truck hauling facility used by Athens Services. Uses include 21 Honorable Mayor Taylor
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While Athens, its agents ARC/Perspective Law Group, the CVUSD, and City staff were aware of Athens’s plan to acquire, develop and use the Conejo Property for its local truck yard to service the terms of the FA, this plan was never publicly disclosed until the purchase was approved by the CVUSD Board on its consent calendar on June 15, 2021.80
No media coverage of the purchase occurred until the Acorn published an article on October 7, 2021.81 The potential purchasers identified in the CVUSD agendas and minutes were not Athens, but agents for Athens (ARC) with different names. Similarly, the public agency with whom the unknown affiliate of Athens and its attorney were negotiating was not the City, but rather the CVUSD. While Athens’s desired to use the Conejo Property as its local truck yard was known by Athens’s ARC counsel, the CVUSD, and some City staff, their communications were not public and the negotiations with the CVUSD were conducted in closed session.

A reasonable person with only the publicly available information and representations, exercising ordinary prudence, simply would not have connected the potential purchase with Athens’s bidding on the FA. This information, discovered by G.I. after filing its CEQA petition was not admitted by the trial court for consideration.

IV. Athens’s other ongoing and past improper activities related to the FA, including alleged temporary activities within the City on W. Hillcrest Drive On July 21, 2022, our client submitted a letter to the City and various resource agencies regarding the various unpermitted activities by Athens at 225 W. Hillcrest Dr. in Thousand Oaks (the Hillcrest Yard). These activities occurred between 2021-2024, before Athens acquired and developed the Conejo Property.

Our clients’ concern about the scope and nature of Athens’ activities arose because Athens’ refuse collection vehicles were regularly observed traveling between 6:00 am and 8:00 am from the City area to offload trash at the Simi Valley Landfill. Because the FA with the City, as well as the City’s municipal code, prohibited collection of trash before 7:00 am, our client had reason to believe that Athens’ collections vehicles were either violating the City municipal code or its agreement or, alternatively, parking overnight at a office, truck dispatch, truck major repair, truck wash, compressed natural gas [CNG] filling station, and associated parking for truck and passenger vehicles”; the listed address of the truck hauling facility is 2498 Conejo Center Drive, Thousand Oaks, California]. 80 See Exhibit 21, p. 4 [June 15, 2021 CVUSD Board Meeting Agenda]. 81 See Exhibit 29 [Oct. 7, 2021 article published by the City of Thousand Oak’s newspaper, The Acorn, entitled “Huge haul: Trash company to pay CVUSD $9.5M for surplus land” “Athens needs place to park trucks.”].
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hauling yard in the City without first dumping its trash load. 82 Furthermore, many of the Athens’ vehicles were observed traveling with lowered “tag axles.” “Tag axles” are deployed when trucks are fully loaded to comply with California axle weight limitations for heavy duty trucks.

At numerous public hearings, Athens had stated that they were using Athens’ MRF and hauling yard located in Sun Valley to service the City, because it had no such facilities in or around the City. As shown in the photographs submitted with the letter, Athens was not simply using the Hillcrest Yard for temporary container and vehicle storage pursuant to the serial temporary use permits (TUPs) issued by City staff.

Rather, Athens was conducting activities normally done at a “hauling yard,” such as vehicle maintenance, unpermitted container and truck washing and operations potentially resulting in illegal discharge of industrial wastewater, and improper storage of hazardous waste and e-waste on site, all presumably without any of the requisite permits or permissions from agencies such as the Regional Water Quality Control Board, among others. In addition, it appeared that Athens was also operating an unpermitted limited volume transfer operation.

Lastly, as noted above and supported by the enclosed documents, Athens has continued to engage in misleading practices and activities that are not in compliance with applicable law, local land use requirements, or the FA. Athens, for example, is allegedly and illegally dumping hazardous waste disguised as green and organics waste from their Sun Valley (Crown) Facility.83
V. Conclusions
As demonstrated by the above-described evidence discovered by G.I. through the Public Records Act after Athens was awarded the Franchise Agreement in March 2021, which was omitted from consideration by the trial court in the prior CEQA court proceedings, the City must independently verify all representations and information provided by Athens, even when provided under oath.
82 See Thousand Oaks Municipal Code § 6-2.601; AR 236 [Executed FA, 8.01.3 – Hours of Collection].
83 Exhibits 39-41 [illegal dumping lawsuits], Exhibit 32 [LAist Article, “Diapers, concrete and acres of construction debris — how illegal dumping in the desert got so bad” (May 19, 2025)]; Exhibit 33 [LA Times Article, “Despite record amounts of trash, some Angelenos are optimistic we’ll dig our way out” (Aug. 10, 2025)]; Exhibit 31 [LA Times Article, “Antelope Valley residents say they are fed up with rampant dumping, official inaction” (May 11, 2025)]; Exhibit 30 [Spectrum News 1 Article, “Major trash haulers accused of illegal dumping at a dozen Southern California sites: Investigation” (Apr. 3, 2025)].
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Under the unique procedural circumstances now facing the City after five years of litigation, the Council may, and should, vote to require environmental review of the FA to ensure that the potentially significant adverse environmental impacts of the FA are disclosed and mitigated to the extent feasible as required by CEQA. Such environmental review would also benefit the City by providing it with a more defensible legal position in light of the additional evidence, including expert evidence, that is now part of the City’s record on the CEQA exemptions and that was not previously known or able to be presented because of the City’s prior lack of proper Brown Act notice.

Thank you in advance for your consideration of these comments and the accompanying documents.

Very truly yours,
Andrea K. Leisy

Encl.
24 AR000001
State of California - Department of Fish and Wildlife
2021 ENVIRONMENTAL FILl~FEE CASH RECEIPT
. cornp:cte the information and submit .lh each set of documents presented for filing. Please provide an original set and (3) three sets of copies for filing.

LEAD AGENCY
City of Thousand Oaks

COUNTY/STATE AGENCY OF FILING
I

LEADAGENCY EMAIL
[email protected]
/ . ) 1111111111111111111111111111111111111111111111
p
20210315-10003523-0 1/1
Ventura County Clerk and Recorder
MARK A. LUNN
03/16/2021 04:37:06 PM
1783816 $60 .00 AR
RECEIPT NUMBER:

STATE CLEARINGHOUSE NUMBER (If applicable)
DATE
3/15/2021

DOCUMENT NUMBER
City of Thousand Oaks' Approval of Exclusive Franchise Agreement with Arakelian Enterprises, Inc., dba Athens Services

PROJECT TITLE
Arakelian Enterprises, Inc. dba Athens Services

PROJECT APPLICANT NAME PROJECT APPLICANT EMAIL PHONE NUMBER Arakelian Enterprises, Inc. dba Athens Services [email protected] 818) 485-8152 PROJECT APPLICANT ADDRESS CITY !STATE ZIP CODE 14048 Valley Blvd. City of Industry CA 91746 PROJECT APPLICANT (Check appropriate box)
IR] Local Public Agency D School District D Other Special District D State Agency D Private Entity CHECK APPLICABLE FEES:

O Environmental Impact Report (EIR) $3,445.25
$2,480.25
$1,171 .25
$ _________ _
0 Mitigated/Negative Declaration (MND)(ND) $ _ ___ _ ____ _ 0 Certified Regulatory Program document (CRP) $ _________ _ IRl Exempt from fee
IR] Notice of Exemption (attach)
0 CDFW No Effect Detenmination (attach)
O Fee previously paid (attach previously issued cash receipt copy) O Water Right Application or Petition Fee (State Water Resources Control Board only) IR] County documentary handling fee
0 Other
PAYMENT METHOD:
$850.00
$50.00
O Cash D Credit IR] Check O Other TOT AL RECEIVED
$
$ 50.00
$
$

SIGNATURE GENCY OF FILING PRINTED NAME AND TITLE
Helen Cox, Sustainability Div Manager
Date
March 15, 2021
Telephone Number
805-449-2471

DO NOT WRITE BELOW THIS LINE
The following will be completed by the County Clerk's Office ,ignature of person receiving EUZAeETH ARANT L-, > o o payment: ______________ ,Total Recieved: $ c;µ· Deputy County Clerk Posted: __ M_A_R_1 _5_2_02_l __ through _______ _
ni::11111,r f\1 tf\1 /?f\'>1
25 AR000002
' I Notice of Exemption Appendix E
To: Office of Planning and Research
P .0. Box 3044, Room 113
Sacramento, CA 95812-3044
From: (Public Agency): City of Thousand Oaks
2100 E. Thousand Oaks Blvd.

County Clerk Thousand Oaks, California 91362
County of: _v_e_n_tu_ra _ ____ _ (Address)
800 S. Victoria Avenue
Ventura.California 93009
Project Title: City of Thousand Oaks' Approval of Exclusive Franchise Agreement with Arakelian Enterprises, Inc., dba Athens Services Project Applicant: Arakelian Enterprises, Inc., dba Athens Services Project Location - Specific:

Agreement for the collection and hauling of solid waste in Thousand Oaks, CA.

Project Location - City: Thousand Oaks Project Location - County: _V_e_n_tu_r_a _ ____ _ Description of Nature, Purpose and Beneficiaries of Project:

Award of exclusive franchise agreement for the collection and hauling of solid waste, recyclable materials, and organic waste from commercial and residential units within the City of Thousand Oaks Name of Public Agency Approving Project: _C_it_y_o_f_T_h_o_u_s_a_n_d_O_a_k_s ____ _____ ____ _ Name of Person or Agency carrying out Project: Arakelian Enterprises, Inc., dba Athens Services Exempt Status: (check one):
□ Ministerial (Sec. 21080(b)(1 ); 15268);
D Declared Emergency (Sec. 21080(b)(3); 15269(a));
D Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
~ Categorical Exemption. State type and section number: _s_ec_Ho_n_1s_30_1 _<c_1as_s_1)_, 1_sJ_os_cc_1._ss_a_), •_nd_S_•c_1io_n_1s_oa_1,_co_m_mo_n_s•_ns_•l D Statutory Exemptions. State code number: _________ __________ _ Reasons why project is exempt:

The project qualifies for a Class 1 Categorical Exemption pursuant lo Section 15301 or the CEQA Guidelines. Class 1 includes the operation, repair, maintenance, permitting, leasing, licensing, or mlhor alteration of exlsling public or private s1ructures, facilities, mechanical equipment, or lopogrephlcal features, Involving negligible or no expansion of existing or former use. The key oonsideratiOh under a Class 1 exemption is whether the project Involves negligible or no expansion of use, For this project, no modifications to any buildings or other facilities are being made. The waste coliecllon service Is already being provided and awarding the new Franchise Agreement to a different operator does not expand or materially change the current operation. Because this project meets the above criteria, Ii is exempt from CEQA. (See additional reasons on Attachment 1 to this NOE.) Lead Agency
Contact Person: Helen Cox ----- -------- Area Code/Telephone/Extension: 449-2471 If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a No;icr f Exemption been filed by the public agency approving the project~ ~es . No Signature: {,//4 ~ Date: 03/10/2021 Title: Sustainability Div Manager • Signed by Lead Agency Signed by Applicant
Authority cited: Sections 21083 and 2111 O, Public Resources Code. Reference: Sections 211 OB, 21152, and 21152.1, Public Resources Code.

Date Received for filing at QPR: _ ____ _
FILED ..... _
DATE: MAR 1 5 207 ........ c
MARI< A. LUNN
Ventura County Clerk and Recorder;·
By: ELIZABETH ARAN,t,eputy
POSTED
MARl 1 5 ~021 __ l_L-.

MARK A. LUNN ' Ventura county Clerk and Recorder
~y: _________ , Deputy Revised 2011
26 AR000003
Attachment 1 to City of Thousand Oaks' Notice of Exemption Project Title: City of Thousand Oaks Approval of Exclusive Franchise Agreement with Arakelian Enterprises, Inc., dba Athens Services
Project Applicant: Arakelian Enterprises, Inc., dba Athens Services Additional reasons why project is exempt:

In addition, the project qualifies for a Class 8 Categorical Exemption pursuant to Section 15308 of the CEQA Guidelines. Class 8 includes actions taken by a regulatory agency, as authorized by state and local ordinances, to assure the maintenance, restoration, enhancement, or protections of the environment where the regulatory process involves procedures for the protection of the environment. The California Integrated Solid Waste Management Act of 1989 (AB 939) requires cities to permit and regulate solid waste handling and declares that there is an urgent need for regulation to avoid an adverse environmental impact from the amount of waste generated in the state. Several subsequent bills have been passed to address other environmental issues including AB 341 (Chesbro, Chapter 4 76, Statutes of 2011 ), AB 1826 (Chesbro, Chapter 727, Statutes of 2014), AB 1594 (Williams, Chapter 719, Statutes of 2014) and SB 1383 (Lara, Chapter 395, Statutes of 2016), and the California Electronic Waste Recycling Act of 2003 (SB 20, Sher, Chapter 526, Statutes of 2003). The Franchise Agreement requires the franchisee to comply with both State and local regulations for hauling and disposing of waste. The City's action assures the protection of the environment since the Agreement contains several regulatory mandates for complying with state law for the disposal of multiple waste streams in a manner that ensures the protection of the environment.

The third applicable exemption is the "common sense" exemption found in State CEQA Guideline Section 15061 (b)(3). The collection and disposal of solid waste is mandated and regulated by state law. Under Section 15061 (b)(3), activities of the City that will not result in direct or indirect physical changes in the environment may be exempt under the common sense exemption. The City is awarding a service contract to operate the City's waste collection and hauling services and such services already exist. Any selected franchise operator will be required to comply with the terms of this new Franchise Agreement and provide nearly identical services to those currently required. The selected franchise operator will serve the same public and private facilities. The operator will be also be required to comply with State and City regulations already established for the collection and hauling of waste. The selection of the franchise operator is not an activity that would have a significant effect on the environment and, therefore, the activity is not subject to CEQA.
27 TO: Andrew P. Powers, City Manager
FROM: Clifford G. Finley, Public Works Director
DATE: July 7, 2020
SUBJECT: Solid Waste Franchise - Request for Proposals/Qualifications RECOMMENDATION:

Authorize staff to issue Request for Proposals/Qualifications (RFP/Q) for the City’s solid waste franchise.

FINANCIAL IMPACT:

No Additional Funding Requested. Cost of staff time to prepare the staff report and conduct RFP/Q process is included in the Adopted FY 2020-21 Solid Waste Fund Budget.

BACKGROUND:

The City utilizes exclusive and non-exclusive franchise agreements for collecting and processing trash, recyclables, organic waste, and to provide street sweeping services. Residential services are currently provided through exclusive franchise agreements with two waste haulers: USA Waste of California (Waste Management or “WM”) and Newbury Disposal Company (Harrison and Sons or “Harrison”), each serving distinct geographical areas of Thousand Oaks. Commercial service is provided exclusively by WM. The existing solid waste franchise agreements expire on December 31, 2021.

On January 28, 2020, City Council directed staff to issue notices of non-extension to both WM and Harrison to avoid automatic extension of the existing franchise agreements, and also authorized staff to work with a consultant to initiate an RFP/Q for residential and commercial solid waste services.

On March 31, 2020, City Council approved a professional consulting services agreement with R3 Consulting Group, Inc. (R3) to assist with the RFP/Q process.

Item No. 9A
AR000004
City of
Thousan
Public Works Department

STAFF REPORT
2100 Thousand Oaks Boulevard • Thousand Oaks, CA 91362
Phone 805/ 449.2400 • Fax 805 / 449.2475 • www.toaks.org 28 Solid Waste Franchise RFP/Q
July 7, 2020

DISCUSSION/ANALYSIS:

Since the existing hauler agreements went into effect in 1998 and 1999, the State legislature has passed several laws that significantly affect the processing of trash, recyclables, and organic waste. These include AB 341 which requires all businesses to recycle, and jurisdictions to implement, a commercial solid waste recycling program; AB 1826 which requires each jurisdiction to implement an organic waste recycling program for eligible businesses and multi-family dwellings; and most recently, SB 1383 (2016), designed to keep organics from all businesses and residents out of the landfills. This latest mandate, with an attainment target of a 50 percent reduction in organic waste disposal by 2020 and 75 percent by 2025, takes effect on January 1, 2022, the same date that the City’s new franchise agreement will go into effect. This is to the City’s advantage as many of the significant changes in waste handling, monitoring, and reporting that will be required will be incorporated into the new agreement. These include the provision of organics services to all residents and businesses, securement of access to recycling and organics processing capacity, compliance and contamination monitoring, site visits, education and outreach.

These regulations, and other recent recycling market challenges have led to increased costs associated with the handling and processing of solid waste, which have been reflected in additional increases in the City’s solid waste rates above the Consumer Price Index (CPI) in the past two years. When SB 1383 regulations take effect, solid waste rates are likely to continue to rise to reflect increased costs in program implementation. These cost increases are being felt by agencies across the industry.

Staff and R3 have drafted the terms of an RFP/Q and accompanying solid waste franchise agreement that reflect full compliance with State mandates, the use of technology to monitor, track and report compliance, clean fuel vehicles to minimize environmental pollution, and an outreach program that informs and educates the community.

The RFP/Q includes bundled service (garbage, recyclables, and organics collection) for both residents and businesses, with options to modify service to meet specific needs. Street sweeping service is included in the RFP/Q together with the regularly scheduled trash service, and options are included for a household hazardous waste home collection service, and storm drain trash cleanout service should the City wish to include these in the final agreement.

Prospective service providers will submit their proposals and rates to the City in late September/early October and a team of evaluators made up of staff from the Item No. 9A
AR000005
29 Solid Waste Franchise RFP/Q
July 7, 2020

City and R3 will conduct evaluations and negotiations in Fall/Winter in preparation for bringing a recommendation to City Council in Spring 2021.

COUNCIL GOAL COMPLIANCE:

Meets City Council Goals B and E:

B. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.

E. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.

PREPARED BY: Helen Cox, Sustainability Division Manager DPW: 600-35\hc\etm\Council\2020\070720\Solid Waste Franchise RFP/Q staff report.docx Item No. 9A
AR000006
30 City Council

REGULAR MEETING - TELECONFERENCE/VIDEO CONFERENCE
Tuesday, March 9, 2021, 6:00 P.M.

Andrew P. Fox City Council Chambers
Public advisory: The City Council facilities are closed to the public.

You may view the City Council meeting broadcast live on TV (Frontier Channel 3, Spectrum Channel 10), the City's website (www.toaks.org/TOTV), and YouTube (CTO Meetings).

Pursuant to the Governor’s Executive Order N-29-20, City Councilmembers will be participating via teleconference and/or video conference.

You may participate in the meeting by submitting written comments or requesting to speak no later than 5:00 p.m. the day of the meeting.

If you would like to submit a written comment, please complete the online Comment Form.

Please see page two for more information.

If you would like to speak on an agenda item, please complete the online Speaker Form.

Please see page two for more information.

Pursuant to the Executive Order, and in compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in the City Council meeting, please contact the City Clerk Department (805) 449-2151 within 48 hours of the meeting.

Claudia Bill-de la Peña, Mayor
Bob Engler, Mayor Pro Tem
Al Adam, Councilmember
Ed Jones, Councilmember
Kevin McNamee, Councilmember
Executive Team
Andrew P. Powers, City Manager Tracy M. Noonan, City Attorney Ingrid Hardy, Assistant City Manager Gary Rogers, Deputy City Manager Kelvin Parker, Community Development Director Jaime Boscarino, Finance Dir./City Treasurer Cynthia M. Rodriguez, City Clerk Clifford G. Finley, Public Works Director Jonathan Serret, Cultural Affairs Director Tim Giles, Human Resources Director Jim Friedl, General Manager, CRPD Heather Cousin, Library Director John Spykerman, Fire Chief Jim Fryhoff, Police Chief
MISSION STATEMENT:

Extraordinary Service to the Citizens We Serve is Our Purpose AR000007
C ity of
Thousand
1:1>\ ,11ous,.," ~ ~
...
!::: ::.-::: • ~ cl>
''"
AGENDA
2100 Thousand Oaks Boulevard • Thousand Oaks, CA 91362
Phone 805/ 449.2151 • Fax 805/ 449.2150 • www.toaks.org toaks.org
31 The following is provided to assist with public participation:

Agenda Availability: The City Council Agenda is posted at the entry to the Civic Arts Plaza/City Hall, 2100 E. Thousand Oaks Boulevard, Thousand Oaks [main posting location pursuant to the Brown Act, G.C. 54954.2(a)]. Agenda packet and “Live and Archived” meetings and minutes are available on the City’s website at www.toaks.org. Televised City Council Meetings are re-broadcast Thursday and Sunday (following meeting) at 10:00 a.m. and 6:00 p.m. on TV (Frontier Channel 3, Spectrum Channel 10).

Public Input: To allow adequate time to provide your comments to the City Councilmembers please submit your comments via the online Comment Form no later than 5:00 p.m. the day of the meeting. If you would like to speak on an agenda item during the meeting, please complete the online Speaker Form no later than 5:00 p.m. the day of the meeting. If you would like to speak during the meeting, you will be asked to provide an email address and/or telephone number where you may be reached when the item is being discussed at the City Council meeting. Persons addressing the City Council are requested to state their name and community of residence for the record. If you need further assistance, please email the City Clerk Department at [email protected] or call (805) 449-2151.

Please be advised that communications directed to the City Council are public records and are subject to disclosure pursuant to the California Public Records Act and Brown Act unless exempt from disclosure under the applicable law. Communications will NOT be edited for redactions; will be printed/posted as submitted.

Special Meeting Public Input: Only issues listed on a special meeting agenda may be addressed pursuant to the Brown Act/Special Meetings.

Consent Calendar: Matters listed on Consent Calendar that do not require significant reporting and/or discussion for decision or considered to be routine, will be approved by one motion as recommended. There will be no separate discussion unless Councilmember or staff member requests separate discussion prior to approval.

Supplemental Information: Any agenda related information received and distributed to the City Council after the Agenda Packet is produced is included in Supplemental Packets.

Supplemental Packets are produced as needed, typically a minimum of two—one available on the Thursday preceding the City Council meeting and the second on Tuesday at the meeting. Both the Thursday and Tuesday Supplemental Packets are available for public review on the City’s website.

Judicial Review: Any legal action by an applicant seeking to obtain a judicial review of the City Council’s decision on a Hearing or issue listed on this Agenda may be subject to the 90- day filing period, of and governed by, Code of Civil Procedure Section 1094.6. Also refer to TOMC Section 1-4.05.

AR000008
32 CITY OF THOUSAND OAKS CITY COUNCIL AGENDA
Thousand Oaks, California 3 March 9, 2021
RES. NO. 2021-007
ORD. NO. 1684-NS

1. CALL TO ORDER: 6:00 p.m.

2. PLEDGE OF ALLEGIANCE:

3. ROLL CALL: Councilmembers Adam, Jones, McNamee, Engler, and Mayor Billde la Peña

4. REQUESTS FOR CONTINUANCE OF ANY PUBLIC HEARING OR AGENDA ITEM:

5. SPECIAL PRESENTATIONS AND ANNOUNCEMENTS:

A. COVID-19 Update

6. PUBLIC COMMENTS:

7. CONSENT CALENDAR: None

8. PUBLIC HEARING: None

9. DEPARTMENT REPORTS:

A. Solid Waste Franchise Agreement Award

RECOMMENDATION: Approve Exclusive Solid Waste Franchise Agreement (Agreement) with Arakelian Enterprises, Inc. dba Athens Services (Athens), City of Industry, CA, for residential and commercial solid waste, recyclable materials, and organic waste collection services for a 15- year term from January 1, 2022 through December 31, 2036

10. COMMITTEE/COMMISSION/BOARD REPORTS: None

11. CITY COUNCIL AS SUCCESSOR AGENCY TO THOUSAND OAKS
REDEVELOPMENT AGENCY REPORTS: None

12. COUNCIL ISSUES/RECOMMENDATIONS:

A. Follow-up reports on meetings/conferences attended by Councilmembers AR000009
33 CITY OF THOUSAND OAKS CITY COUNCIL AGENDA
Thousand Oaks, California 4 March 9, 2021

13. CITY MANAGER:

A. Follow-up items
B. Announcements and upcoming issues

14. CLOSED SESSION: None

15. PUBLIC NOTICES: None

16. ADJOURNMENT:

Adjourn in memory of:
o Richard Rosiejka, former Planning Commissioner
to Regular Meeting March 16, 2021
Agenda Post Date/Time: March 1, 2021, 8:30 p.m.

CCD:610-40\h:\common\agenda\2021\03-09-21.docx
AR000010
34 TO: Andrew P. Powers, City Manager
FROM: Clifford G. Finley, Public Works Director
DATE: March 9, 2021
SUBJECT: Solid Waste Franchise Agreement Award
RECOMMENDATION:

Approve Exclusive Solid Waste Franchise Agreement with Arakelian Enterprises, Inc. dba Athens Services (Athens), City of Industry, CA, for residential and commercial solid waste, recyclable materials, and organic waste collection services for a 15-year term from January 1, 2022 through December 31, 2036.

FINANCIAL IMPACT:

No Additional Funding Requested. Cost of consultant to assist with Request for Proposals (RFP) and evaluation process was included in the Adopted FY 2020-21 Solid Waste Fund Budget and will be reimbursed by Athens. Associated staff time was included in the Adopted FY 2020-21 Solid Waste Fund Budget.

The Franchise Fee rate will remain at nine percent. The revenue is estimated at $2.0 million annually in the General Fund and will be included in the upcoming biennial budget.

The Solid Waste Management Fee remains at 8.25 percent for commercial service and is adjusted to 10.25 percent for residential service. The estimated revenue is $1.8 million annually in the Solid Waste Fund, which supports the City’s solid waste program administration and services.

BACKGROUND:

The City utilizes exclusive franchise agreements for the regularly scheduled collection and processing of trash, recyclables, and organic waste, and street sweeping services. Residential services are currently provided through exclusive franchise agreements with USA Waste of California (Waste Management) and Newbury Disposal Company, E.J. Harrison and Sons, Inc. (Harrison), which serve two distinct geographic areas of Thousand Oaks. Commercial service is provided AR000011
City of
Thousand Oaks
Public Works Department

STAFF REPORT
2100 Thousand Oaks Boulevard • Thousand Oaks, CA 91362
Phone 805 / 449.2400 • Fax 805 / 449.2475 • www.toaks.org 35 Solid Waste Franchise Agreement Award
March 9, 2021

by Waste Management through its exclusive franchise agreement with the City.

Exclusive franchise agreements have been in place with Waste Management and Harrison in various forms since 1998.

Existing agreements with both companies were scheduled to expire on June 30, 2021, requiring that they be extended, renegotiated with the current haulers, or the solid waste service opened to an RFP process. To assist with negotiation of new solid waste franchise agreements and rate analyses for residential and commercial collection services, on December 18, 2018, City Council approved a professional consulting services agreement with R3 Consulting Group Inc. (R3). Throughout 2019, staff and R3 met with Waste Management and Harrison to discuss and negotiate the terms and associated rates for new solid waste agreements that would maintain compliance with State regulations, provide excellent service to residents and businesses, and minimize rates.

On May 21, 2019, City Council extended the hauler agreement expiration dates to December 31, 2021, to allow time to continue the negotiation process and develop Memoranda of Understanding (MOUs).

On December 10, 2019, City Council received and considered a staff report with options, including the negotiated MOUs for the provision of exclusive franchise solid waste service in the City. After deliberation, City Council requested a postponement of their decision. On January 28, 2020, City Council rejected the terms of the MOUs negotiated with Waste Management and Harrison, authorized staff to issue notices of non-extension of the existing agreements to Waste Management and Harrison, and directed staff to begin the RFP process for selection of exclusive solid waste hauler services. The City had not previously ever issued an RFP or initiated a bidding process for an exclusive solid waste franchise to operate in Thousand Oaks.

On March 31, 2020, City Council approved a professional consulting services agreement with R3 in the amount of $134,500, to provide assistance with the solid waste franchise RFP process. On July 7, 2020, City Council authorized staff to issue the RFP for the City’s exclusive solid waste franchise.

Solid Waste Regulations
Since the existing hauler agreements went into effect, the State legislature has passed several laws that significantly affect the processing of trash, recyclables, and organic waste. In 2011, the State adopted AB 341, requiring all businesses to recycle and jurisdictions to implement a commercial solid waste recycling program.

This Bill also established a goal of a 75 percent recycling rate (diversion) by 2020.

AR000012
36 Solid Waste Franchise Agreement Award
March 9, 2021

Additionally, the State passed laws that affect organic solid waste handling. AB 1826 (2014) requires each jurisdiction to implement an organic waste recycling program to divert from the landfill organic waste from businesses and multi-family dwellings. Businesses meeting specific solid waste generation thresholds are required to arrange for organic waste recycling services. Organic waste includes food waste, green (landscaping/yard) waste, non-hazardous wood waste, and food-soiled paper waste that is mixed in with food waste.

In 2016, an additional State law (SB 1383), designed to keep organics out of the landfills, was passed. SB 1383 requires a 50 percent reduction in organic waste disposal by 2020 and 75 percent by 2025. Final rulemaking was completed in November 2020 with regulations to go into effect January 1, 2022. Under the new law, jurisdictions are required to provide organics services to all residents and businesses, establish an edible food recovery program, procure recyclable and recovered organic products, secure access to organics recycling capacity, monitor compliance, and conduct enforcement.

Existing Solid Waste Service
Residential solid waste collection is provided through a bundled three-bin weekly service, which includes a 64-gal garbage cart, 64-gal recycling cart, and 96-gal green waste cart. Limited service is available for residents with less garbage, and those with no yard waste, who for example reside in some multi-family units. The 2021 basic residential service rate is $36.73 per month.

Regularly scheduled commercial solid waste service is available for trash, recycling, and food waste (organics). Commercial green (landscaping) waste collection is available only on demand. Commercial trash and recycling service is available in a number of different cart and bin sizes from 64-gal to six yds, with additional options for larger roll-offs and compactors. In addition, collection can be scheduled from once to six times per week. (Please note: throughout this document report “yd” is used to denote volume in cubic yards, and “gal” is used for gallons.)
The most common commercial service in the City is a once-a-week collection service for a three-yd garbage bin and a three-yd recycling bin and currently costs $237.09 per month.

DISCUSSION/ANALYSIS:

In accordance with Government Code section 4526 and Thousand Oaks Municipal Code section 3-10.401, staff solicited a formal Request for Proposals for Residential and Commercial Solid Waste, Recyclable Material, and Organic Waste Collection Services. Unlike the low bid requirements of the Public Contract Code, AR000013
37 Solid Waste Franchise Agreement Award
March 9, 2021

contracts for professional, management, general, or special services should only be awarded to firms or persons who have demonstrated an adequate level of experience, competence, training, credentials, resources, staffing, and other professional qualifications necessary for more than a satisfactory performance of the services solicited.

The award of an RFP is based upon a variety of factors that demonstrate best value to the agency for the solicited scope of service. The cost of the service may be considered as one of those factors; however, the lowest cost is not the sole factor in deciding who will be awarded the contract. The waste hauler RFP was published on July 16, 2020 in the Thousand Oaks Acorn, and from this effort, four proposals were received.

Proposal evaluations
The terms of the new Agreement (Attachment #1) were specified in the RFP, and all interested haulers submitted their proposals and service rates in response to the conditions specified therein. Proposals from the following four entities were received:
• American Reclamation, Inc., Los Angeles
• Arakelian Enterprises, Inc. dba Athens Services, City of Industry • E.J. Harrison and Sons, Inc., Ventura
• G.I. Industries dba Waste Management, Simi Valley
Proposals were evaluated based on the following criteria as specified in the RFP document:

1. Qualifications, Experience and Reputation of Contractor, and SubContractors in Providing Solid Waste Services

2. Financial Qualifications of Contractor and Sub-Contractors

3. Technical Approach

4. Sustainability, Diversion, and Outreach

5. Customer Service

6. Maximum Service Rates
A five-person Review Committee comprised of City and consultant staff independently scored each of the proposals on each of the first five criteria. These scores were averaged across committee members and weighted according to their significance. A separate evaluation of proposed rates was conducted through direct rate comparison. Based on the evaluation scoring, three finalists were selected and invited to make a presentation to the Review Committee and answer questions about their proposals.

AR000014
38 Solid Waste Franchise Agreement Award
March 9, 2021

The finalists - Athens, Harrison, and Waste Management - were interviewed by the Review Committee between December 2 and December 4, 2020. Subsequently, committee members unanimously ranked Athens highest overall. Additionally, Athens ranked highest in an evaluation of service rates, offering significantly lower rates than the competing haulers for both residential and commercial service.

For the basic residential cart service, utilized by more than 95 percent of currentlyserviced residents, a comparison of proposed rates is shown in the table below.

Also shown are the proposed rates for the most utilized commercial bundled service comprising once-a-week collection of a three-yd garbage bin, three-yd recycling bin, and 96-gal organics cart.

Service Athens EJH WM
Basic residential cart service
(64-gal garbage, 64-gal recycling,
96-gal organics)
$24.36 $33.54 $33.75
Basic commercial bundle
(3-yd garbage, 3-yd recycling,
96-gal organics; once per week)
$174.99 $317.00 $290.34
The rate differences shown here are reflective of those overall. A complete comparison of all proposed rates is provided in Attachment #2.

Athens proposes to use the following facilities for waste processing and disposal:

Solid Waste: Calabasas Landfill
Recyclables: Sun Valley Materials Recovery Facility
Green and Organic Waste: American Organics (Victorville) Provisions of new Agreement
The new Agreement was developed to ensure compliance with recent State legislation. Commercial service has been designed to operate as a bundled service much like the existing residential service, whereby separate garbage, recycling, and organics containers will be provided to customers in one bundled package.

Commercial customers will select their garbage container size and frequency, and as part of the bundled package, will receive an equivalent volume of recycling service and organics service calculated as one 32-gal organic waste cart per twoyds of total weekly trash (garbage plus recycling). For example, commercial customers subscribing to a once-a-week three-yd garbage bin service would receive a three-yd recycling bin and a 96-gal organics cart in their bundled service.

Customers will have the ability to increase recycling and organics collection volume as needed. New green (landscaping) waste-only and food waste-only scheduled collection services will also be available.

AR000015
39 Solid Waste Franchise Agreement Award
March 9, 2021

The new Agreement includes a 15-year term, chosen to allow the hauler to spread the significant capital costs of new vehicles, containers, and infrastructure over their lifetimes, and thus ensure the lowest rates for service recipients.

A new service to provide quarterly collection of household hazardous waste (HHW) from homes has been included as a convenience to residents. The City’s permanent HHW Facility will remain open for drop off on Fridays and Saturdays.

Key provisions of the new Agreement include:
• Start date of January 1, 2022.
• 15-year term with provision for two five-year extensions at the option of the City.
• SB 1383 compliance.
• Bundled commercial and residential service (all recipients receive garbage, recycling, and organics service). Residents to add food waste to green waste cart.
• Cash reimbursement to the City by contractor for cost of consultant. • HHW Home Collection Service (quarterly).
• Street sweeping service to continue to be provided by waste hauler. • New provisions for multi-family and mixed-use developments that include large item disposal and use of “scout” truck to retrieve containers in difficultto-access areas such as underground garages. • Three (3) free landfill disposal days a year, each allowing residents to drop off up to two vehicle loads of trash at no charge.
• Two (2) times per year bulky item waste (large item) pickup. • Expanded service of up to 150 public area garbage and recycling waste containers, an increase from the current 70 garbage and 35 recycling containers now.
• All new clean-fuel vehicles (vehicles to be powered with renewable natural gas or electric).
• All residential carts to be new, with correct usage labelling meeting CalRecycle requirements.
• Commercial bins to be new, or if in good condition, freshly painted. • All collection containers to utilize standard colors: blue for recycle, black/charcoal for garbage, green/brown for yard waste/mixed organics, and green with yellow lid or yellow for food waste only – and with correct usage labelling that meets CalRecycle requirements.
• Contractor to offer employment to displaced workers at equal or greater salary.
• Compliance tracking and reporting through online Waste Reporting System. • Performance metrics, accountability, and penalties.

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• Annual rate increases limited to any increase in the annual Consumer Price Index (CPI) and capped at four percent.

The Agreement was designed to meet the requirements of the State’s recycling mandates and to be appropriate for the capabilities and capacities of available recycling and organics processing facilities at the start of this Agreement. The capabilities and capacities of such facilities may change during the term of the Agreement; as such the City may redirect materials to alternate facilities in the future with allowance for adjustments to Maximum Service Rates to reflect any additional costs borne by Athens.

Benefits to the Community
In addition to the provisions of the Agreement as specified in the RFP, Athens included the following benefits to the City as part of their proposal. The benefits were incorporated in the proposed Agreement:
• $200,000 per year in community benefit grant support to the Thousand Oaks community for the term of the Agreement.
• A walk-in customer service center located in Thousand Oaks. • Forty-five (45) recycling coordinators to meet with businesses and facilitate the transition process in the six months prior to the Agreement start date. • A live dashboard for the public to view waste hauler truck locations in realtime. • Dashboard of service account information available to the City for customer service and compliance purposes.

Residents: Under the new Agreement with Athens, residents would see an approximately 34 percent reduction in their current monthly trash bill, from $36.73 to $24.36 per month. Residents receiving limited service will receive even larger percentage savings. In addition, residents in multi-family dwellings will now have access to free large-item disposal service. A new quarterly HHW Home Collection service will be available at no charge to all residents. On average, residential households will save $150 annually relative to current charges, a total annual savings to residents across the City of $4.7 million. If future annual CPI increases average 2.5 percent (the average for the past twenty years), residential rates will be less at the end of the fifteen-year contract than they are currently.

Businesses: Commercial customers will be impacted by both new regulations and service rates. Currently all commercial customers who generate four-yds or more of solid waste per week are required to subscribe to recycling services. Effective September 2020, all commercial customers who generate two-yds or more of solid waste per week were also required to subscribe to organics recycling services.

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Because the addition of organics collection and processing services is inherently challenging, the roll-out of the organics program has been slow in the City and throughout the State. As a result, last Fall the California Department of Resources Recycling and Recovery (CalRecycle) required the City to submit an action plan for compliance with the organics mandate. This plan included the distribution of compliance notices to all businesses at the end of 2020, and the inclusion of organics service to all residents and businesses in the new Franchise Agreement.

To ensure compliance with State mandates, the new Agreement will require businesses to subscribe to a bundled service as described herein. Rates for this new service are not directly comparable to existing rates because (i) most businesses do not yet receive organics service; and (ii) their current recycling service has historically been lower volume than their current garbage service.

The two most common existing commercial services are once-a-week service for bins of varying size, and four-yd bin service at varying collection frequency. The 2022 Athens rates for these bundled services under the new proposed Agreement are shown below together with rates for a combined garbage service and equal volume recycling service under the current service agreement.

Once-a-week bundled service
(Equal-sized garbage + recycling + min. organics)
Bin size: 2-yd 3-yd 4-yd
2022 rate $157.96 $174.99 $278.09
Equal-sized garbage + recycling
Current rate $178.97 $237.09 $306.59
3-yd bundled service
(3-yd garbage + 3-yd recycling + 96-gal organics)
Frequency: 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week
2022 rate $174.99 $305.52 $472.95 $613.50 $778.69 $943.89 3-yd garbage + 3-yd recycling
Current rate $237.09 $299.49 $423.89 $548.29 $672.69 $797.09 Even with the addition of organics recycling service, small businesses with oncea-week service will save on their solid waste costs. Businesses with a more frequent service will likely see increased costs, but the increases are substantially less than what would have occurred under the negotiated MOU or under the AR000018

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competing proposals, and were anticipated as a result of recent increased recycling costs and the implementation of AB 1826 and SB 1383.

Businesses that utilize roll-offs and compactors to meet higher volume needs will see reduced rates, with the hauling rates for servicing these reduced to $210 for roll-offs and $295 for compactors regardless of container size. These amount to reductions of up to 22 percent over current rates.

To minimize impacts on commercial customers, Athens will deploy a team of fortyfive (45) recycling coordinators to meet one-on-one with businesses to assess their solid waste needs and develop a service plan that meets these needs while minimizing costs and maintaining regulatory compliance. In many cases, it is anticipated that businesses will require the same total weekly volume of solid waste service as now, but that their collection containers will need to be reconfigured so that waste is distributed into the appropriate stream.

Athens Services
Athens is a family-owned and -operated company, which currently provides waste, recycling, and organics collections services to forty-one communities in Southern California. Arakelian Enterprises, Inc. is the successor to Athens Disposal Company, which commenced operations in 1957. Athens corporate headquarters are located in the San Gabriel Valley in the City of Industry, but they will conduct business in the City from their local Sustainability Center located in Thousand Oaks. Athens currently provides solid waste services in the cities of Los Angeles, Beverly Hills, Whittier, San Gabriel, Sierra Madre, Santa Paula, Monrovia, West Hollywood, Pasadena, Glendora, Redondo Beach, and many others.

Staff contacted references in a number of cities and received positive recommendations. Athens was praised in particular for their customer service, outreach and education programs.

Community Outreach: As part of the Agreement, extensive community outreach is planned prior to and during the transition to the new hauler. Exhibit 10 of the Agreement details Athens’ transition plan including the plan for education and outreach which begins in June 2021, six months prior to the start of service. Cityspecific supporting material will be developed and distributed to all service recipients in the latter half of this year, explaining the new service. A dedicated website for Thousand Oaks residents and businesses will be developed by Athens, town hall meetings will be hosted, a Sustainability Center located opposite City Hall will be utilized for walk-in service, and site assessments will be scheduled individually with businesses.

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This City Council item meets City Council Priority #8: “Promote environmental sustainability efforts through Sustainability Strategic Plan.” COUNCIL GOAL COMPLIANCE:

Meets City Council Goals B and E:

B. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.

E. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.

PREPARED BY: Helen Cox, Sustainability Division Manager Attachments:

Attachment #1 – Agreement with Arakelian Enterprises, Inc. dba Athens Services
Attachment #2 – Comparison of proposals submitted
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1 COLLECTION SERVICES AGREEMENT
2 FOR THE PROVISION OF
3 4 RESIDENTIAL AND COMMERCIAL SOLID WASTE,
5 RECYCLABLE MATERIALS AND ORGANIC WASTE
6 COLLECTION SERVICES
7 8 Executed Between the
9 City of Thousand Oaks and Arakelian Enterprises, Inc. 10 d/b/a Athens Services
11 This 1st 12 day of January 2022
13 14
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16 TABLE OF CONTENTS
17 Collection Services Agreement
18 19 Article 1. Definitions................................................................................................................ 5 20 Article 2. Term of Agreement.................................................................................................16 21 Article 3. Conditions Governing Services Provided by Contractor..........................................16 22 Article 4. Billing, Charges and Rates..............................................................................26 23 Article 5. Diversion Requirements..................................................................................29 24 Article 6. Service Unit Types..........................................................................................32 25 Article 7. SFD Service....................................................................................................33 26 Article 8. Commercial Service........................................................................................38 27 Article 9. Multi- Family Dwelling Service with Individual Carts (MFD-I)...........................45 28 Article 10. Multi-Family Dwelling with Centralized Bin Service (MFD-C)...........................45 29 Article 11. Mixed Use Dwelling Service (MXD).................................................................46 30 Article 12. City Services...................................................................................................46 31 Article 13. Additional Services .........................................................................................48 32 Article 14. Collection Routes............................................................................................49 33 Article 15. Minimum Performance and Diversion Standards ............................................49 34 Article 16. Collection Equipment ......................................................................................51 35 Article 17. Contractor’s Office ..........................................................................................54 36 Article 18. Contractor Support Services ...........................................................................55 37 Article 19. Emergency Service.........................................................................................60 38 Article 20. Record Keeping and Reporting Requirements ................................................60 AR000022
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39 Article 21. Nondiscrimination ...........................................................................................65 40 Article 22. Service Inquiries and Complaints....................................................................65 41 Article 23. Quality of Performance of Contractor..............................................................66 42 Article 24. Performance Bond ..........................................................................................67 43 Article 25. Insurance........................................................................................................68 44 Article 26. Hold Harmless and Indemnification.................................................................70 45 Article 27. Default of Agreement ......................................................................................73 46 Article 28. Modifications to the Agreement.......................................................................75 47 Article 29. Legal Representation......................................................................................76 48 Article 30. Conflict of Interest ...........................................................................................76 49 Article 31. Contractor's Personnel....................................................................................77 50 Article 32. Exempt Waste.................................................................................................77 51 Article 33. Independent Contractor ..................................................................................77 52 Article 34. Laws to Govern...............................................................................................78 53 Article 35. Consent to Jurisdiction....................................................................................78 54 Article 36. Assignment .....................................................................................................78 55 Article 37. Compliance with Laws ....................................................................................79 56 Article 38. Permits and Licenses......................................................................................79 57 Article 39. Ownership of Written Materials .......................................................................79 58 Article 40. Waiver.............................................................................................................79 59 Article 41. Prohibition Against Gifts..................................................................................79 60 Article 42. Point of Contact ..............................................................................................80 61 Article 43. Notices............................................................................................................80 AR000023
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62 Article 44. Transition to Next Contractor ..........................................................................80 63 Article 45. Contractor’s Records ......................................................................................81 64 Article 46. Entire Agreement ............................................................................................82 65 Article 47. Severability .....................................................................................................82 66 Article 48. Right to Require Performance.........................................................................82 67 Article 49. All Prior Agreements Superseded ...................................................................82 68 Article 50. Headings.........................................................................................................82 69 Article 51. Exhibits ...........................................................................................................82 70 Article 52. Attorney’s Fees...............................................................................................82 71 Article 53. Effective Date..................................................................................................83 72 Article 54. Signatures.......................................................................................................83 73 74 This Agreement is effective as of January 1, 2022 (“Effective Date”), and is between the City of Thousand 75 Oaks, a general law city of the State of California, referred to as "City" and Arakelian Enterprises, Inc. d/b/a 76 Athens Services referred to as "Contractor".
77 Now, therefore, in consideration of the mutual covenants, agreements and consideration contained in this 78 Agreement, City and Contractor agree as follows:
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80 Article 1. Definitions
81 For the purpose of this Collection Services Agreement, referred to as "Agreement", the definitions contained 82 in this Article apply unless otherwise specifically stated. When not inconsistent with the context, words used 83 in the present tense include the future, words in the plural include the singular, and words in the singular 84 include the plural. Use of the masculine gender includes the feminine gender. The meaning of terms or 85 words not defined in this Article will be as commonly understood in the solid waste collection services 86 industry when the common understanding is uncertain. 87 1.01 AB 341. “AB 341” means State of California Assembly Bill No. 341 approved October 5, 88 2011. AB 341 requires businesses, defined to include commercial or public entities that generate more 89 than 4 cubic yards of commercial solid waste per week or multifamily residential dwellings of 5 units or 90 more, to arrange for recycling services and requires jurisdictions to implement a commercial solid waste 91 recycling program.
92 1.02 AB 827. “AB 827” means State of California Assembly Bill No. 827 approved October 02, 93 2019. AB 827 requires businesses that are mandated to recycle under AB 341 (“MCR”) and/or mandated 94 to recycle organics under AB 1826 (“MOR”) or SB 1383 and that provide customers access to the business, 95 to provide customers with a recycling bin and/or organics collection bin for those waste streams that is 96 visible, easily accessible, and adjacent to each bin or container for trash. 97 1.03 AB 939. “AB 939” or “The Act” means “The California Integrated Waste Management Act 98 of 1989” codified in part in Public Resources Code §§ 40000 et seq, as it may be amended and as 99 implemented by the regulations of the California Department of Resources Recycling and Recovery 100 (CalRecycle), or its successor agency.
101 1.04 AB 1594. “AB 1594” means State of California Assembly Bill No. 1594 approved 102 September 28, 2014. AB 1594 provides that as of January 1, 2020, the use of green material as Alternative 103 Daily Cover does not constitute diversion through recycling and would be considered disposal. 104 1.05 AB 1699. “AB 1669” means State of California Assembly Bill No. 1669 approved 105 September 30, 2016 which amends California Labor Code Sections 1070 through 1076 with respect to the 106 hiring of displaced employees under service contracts for the collection and transportation of solid waste. 107 1.06 AB 1826. “AB 1826” means State of California Assembly Bill No. 1826 approved 108 September 28, 2014. AB 1826 requires each jurisdiction, on and after January 1, 2016, to implement an 109 organic waste recycling program to divert from the landfill organic waste from businesses. Each business 110 meeting specific organic waste or solid waste generation thresholds phased in from April 1, 2016 to 111 January 1, 2020, is required to arrange for organic waste recycling services. 112 1.07 AB 3036. “AB 3036” means State of California Assembly Bill No. 3036 approved 113 September 27, 2018. AB 3036 prohibits a County, City, District, or local government agency from 114 subjecting the hauling of certain byproducts from the processing of food or beverages to an exclusive 115 franchise, contract, license, or permit.
116 1.08 Agreement. “Agreement” means the written agreement between the City and the 117 Contractor covering the work to be performed and all contract documents attached to the agreement and 118 made a part thereof.

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119 1.09 Agreement Administrator. The City Manager, or his or her designee, designated to 120 administer and monitor the provisions of the Agreement.

1.10 Agreement Year. Agreement year means each twelve (12) month period from January 1 121 st to December 31st 122 during the term of this Agreement. 123 1.11 Applicable Law. “Applicable Law” means all laws, regulations, rules, orders, judgments, 124 decrees, permits, approvals, or other requirement of any federal, state, county, city, and local 125 governmental agency having jurisdiction over the collection and disposition of Solid Waste, including 126 Recyclable Materials, Organic Waste, and Construction and Demolition Waste. 127 1.12 Best Management Practice. Best Management Practice means the collection of written 128 activities, practices, policies and procedures prepared and proposed by a responsible party, and then 129 approved by the Director, to prevent or reduce, to the maximum extent that is technologically and 130 economically feasible, the discharge of pollutants to the storm drain system which might be generated 131 from any site in the City.
132 1.13 Bin. “Bin” means a metal or plastic waste container designed or intended to be 133 mechanically serviced by a commercial front-end loader vehicle. It shall be designed to hold from one (1) 134 to six (6) cubic yards of material with the lid properly closed. The specifications for Contractor-provided 135 Bins are set forth in Exhibit 4.
136 1.14 Biohazardous or Biomedical Waste. Any waste which may cause disease or reasonably 137 be suspected of harboring pathogenic organisms; included is waste resulting from the operation of medical 138 clinics, hospitals, and other facilities processing wastes which may consist of, but are not limited to, human 139 and animal parts, contaminated bandages, pathological specimens, hypodermic needles, sharps, 140 contaminated clothing and surgical gloves.
141 1.15 Brown Goods. Electronic equipment such as stereos, televisions, computers, VCR’s and 142 other similar items collected from SFD Service Units. 143 1.16 Business Day. Any Monday through Friday, excluding any holidays as defined in Section 144 3.07.
145 1.17 Calendar Year. Each twelve (12) month period from January 1 to December 31. 146 1.18 Cart. “Cart” means a heavy plastic receptacle with a rated capacity of at least twenty (20) 147 and not more than one-hundred (100) gallons, having a hinged tight-fitting lid and wheels, that is provided 148 by the Exclusive Franchise Solid Waste Contractor, approved by the City, and used by Service Recipients 149 for collection, accumulation, and removal of solid waste from commercial, industrial, or residential 150 premises in connection with Exclusive Franchise Collection Services. The specifications for Contractor151 provided Carts are set forth in Exhibit 3. 152 1.19 CERCLA. The Comprehensive Environmental Response, Compensation and Liability Act 153 of 1980, 42 U.S.C. Sections 9601 and following, as may be amended and regulations promulgated 154 thereunder.
155 1.20 Change in Law. Change in Law means any of the following events or conditions which has 156 a material and adverse effect on the performance by the parties of their respective obligations under this AR000026
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157 Agreement (except for payment obligations), or on the siting, design, permitting, acquisition, construction, 158 equipping, financing, ownership, possession, management operation or maintenance of the operating 159 assets or providing the franchise service or other matters to which Applicable Law applies:
160 A. the enactment, adoption, promulgation, issuance, modification, or written change 161 of or in Applicable Law, including but not limited to new or increased fees and charges imposed by the State 162 of California or the U.S. Federal government, directly related to the collection, handling, processing, 163 recycling or disposal of Solid Waste, or the enactment, adoption, promulgation, issuance, modification, or 164 written change in administrative or judicial interpretation on or after Effective Date of any Applicable Law; 165 B. the order or judgment of any Governmental Body, on or after the Effective Date, to 166 the extent such order or judgment is not the result of willful or negligent action, error or omission or lack of 167 reasonable diligence of the City or of the Contractor, whichever is asserting the occurrence of a Change in 168 Law; provided, however, that the contesting in good faith or the failure in good faith to contest any such 169 order or judgment shall not constitute or be construed as such a willful or negligent action, error or omission 170 or lack of reasonable diligence; or
171 C. the denial of an application for, delay in the review, issuance or renewal of, 172 suspension, termination, interruption or imposition of a new or more stringent condition in connection with 173 the issuance, renewal or failure of issuance or renewal on or after the Effective Date of any Legal 174 Entitlement to the extent that such denial, delay, suspension, termination, interruption, imposition or failure 175 materially and adversely interferes with the performance of this Agreement, of and to the extent that such 176 denial, delay, suspension, termination, interruption, imposition or failure is not the result of willful or 177 negligent action, error or omission or a lack of reasonable diligence of the City or of the Contractor, 178 whichever is asserting the occurrence of a Change of Law; provided, however, that the contesting in good 179 faith or failure in good faith to contest any such denial, delay, suspension, termination, interruption, 180 imposition or failure shall not be construed as such a willful or negligent action, error or omission or lack of 181 reasonable diligence.
182 1.21 City. The City of Thousand Oaks, California.
183 1.22 City Collection Service. City Solid Waste Collection Service, City Organic Waste Collection 184 Service, and City Recycling Service.
185 1.23 City Facility. City Facility(ies) means any building or other site owned or leased by the City 186 or used regularly and significantly and the space therein occupied by more than seventy-five percent (75%) 187 by employees or Contractors of the City.
188 1.24 City Manager. City Manager means the City Manager of the City of Thousand Oaks, or his 189 or her designated representative, or any employee of the City who succeeds to the duties and 190 responsibilities of the City Manager.
191 1.25 Code. Code means the City of Thousand Oaks Municipal Code. 192 1.26 Collection. The process whereby Residential, Commercial, and City Solid Waste are 193 removed and transported to a Disposal Facility, Organic Waste Processing Facility or Materials Recycling 194 (or Recovery) Facility as appropriate.

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195 1.27 Collection Container. A Bin, Cart, or Roll-Off Container that is approved by the Agreement 196 Administrator for use by Service Recipients for Collection Services under this Agreement. 197 1.28 Collection Services. “Collection Services” means Residential Collection Service, 198 Commercial Collection Service, and City Collection Service. 199 1.29 Commercial Collection Service. Commercial Garbage Collection Service, Commercial 200 Organic Waste Collection Service, and Commercial Recycling Service. Specifically includes the following:
201 A. Commercial Garbage Collection Service. The Collection of Commercial Garbage 202 by Contractor, from Commercial Service Units in the Service Area and the delivery of that Commercial 203 Garbage to a Disposal Facility.
204 B. Commercial Organic Waste Collection Service. The Collection of Organic Waste, 205 by Contractor, from Commercial Service Units in the Service Area, the delivery of those Organic Waste 206 materials to an Organic Waste Processing Facility and the processing and marketing of those Organic 207 Waste materials, and the disposal of all Commercial Organic Waste Processing Residue. 208 C. Commercial Recycling Collection Service. The Collection of Recyclable Materials, 209 by Contractor, from Commercial Service Units in the Service Area, the delivery of those Recyclable 210 Materials to a Materials Recovery Facility and the processing and marketing of those Recyclable Materials, 211 and the disposal of all Commercial Recyclable Materials Processing Residue. 212 1.30 Collection Vehicle. A licensed vehicle that is approved by the Agreement Administrator for 213 use by Contractor for the collection and hauling of Solid Waste. 214 1.31 Compactor. Any Roll-Off Container which has a compaction mechanism, whether 215 stationary or mobile.
216 1.32 Complete Sweep. Sweeping along all curbs including Median Islands and the corners from 217 any cross street intersecting the subject street. Does not include additional passes down the middle of 218 lanes except to clean around Median Islands.
219 1.33 Compost. “Compost” means the product resulting from the controlled biological 220 decomposition of Organic Wastes that are source separated from the municipal waste stream, or which 221 are separated at a centralized facility. Compost may also include the product of anaerobic digestion or 222 other conversion technologies.
223 1.34 Composting. “Composting” means the controlled and monitored process of converting 224 Organic Waste into Compost.
225 1.35 Construction and Demolition waste. “Construction and Demolition waste” or “C & D” means 226 Solid Waste consisting of building materials, packaging and rubble resulting from construction, remodeling, 227 repair, and demolition operations on pavement, residential, commercial or industrial premises, buildings, 228 and other structures, and land clearing operations. 229 1.36 Consumer Price Index (CPI). The index sets published by the Unites States Bureau of 230 Labor Statistics. The CPI set used to calculate the Maximum Service Rates is All Urban Consumers (CPI231 U), Los Angeles-Long Beach-Anaheim.

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232 1.37 Contaminant. Any material that is placed in a waste stream intended for recycling, including 233 organics, that cannot be recycled or reclaimed within the waste stream in which it is placed. A Contaminant 234 of the Recycling stream is any material placed in that waste stream that cannot be recycled or reclaimed 235 after processing. A Contaminant of the Green Waste stream is any material not normally produced from 236 gardens or landscapes such as, but not limited to, brick, rocks, gravel, large quantities of dirt, concrete, 237 sod, non-organic wastes, oil and wood or wood products, including but not limited to, stumps, diseased 238 elms, and other diseased trees. A Contaminant of the Food Waste stream is any non-Food Waste material 239 placed in that waste stream.
240 1.38 Contractor. The entity that has obtained from the City this Agreement to provide Collection 241 Services.
242 1.39 County. Ventura County, California.
243 1.40 Curb Miles. Distance along one side of paved street. 244 1.41 Director. Director means the Public Works Director of the City or his or her designated 245 representative, or any employee of the City who succeeds to the duties and responsibilities of the Public 246 Works Director.
247 1.42 Dispose or Disposal. “Disposal” or “Dispose” means the final disposition of Solid Waste at 248 a permitted Landfill or other permitted Solid Waste disposal facility, as defined in California Public 249 Resources Code 40192.
250 1.43 Disposal Facility. “Disposal Facility” means the facility or such place or places specifically 251 designated by the City for the disposal, or processing as appropriate, of Residential Waste and 252 Commercial Waste and other materials as appropriate and acceptable. 253 1.44 Downtown Area. The City’s downtown is that area so designated in the Thousand Oaks 254 Downtown Core Master Plan and comprises the area between Erbes Road to the west and Conejo School 255 Road to the east, the 101 Freeway to the south and the northern property line of those properties bordering 256 Thousand Oaks Blvd on its north side.
257 1.45 Dwelling Unit. Any individual living unit in a single-family dwelling, condominium, or town 258 home (SFD), MFD Units, MXD residential units, or building intended for, or capable of, being utilized for, 259 residential living.
260 1.46 Edible Food Recovery. “Edible Food Recovery” means the practice of gleaning or 261 recovering edible food for human consumption that would otherwise go to waste from places such as, but 262 not limited to, restaurants, grocery stores, produce markets, school cafeterias, or dining facilities and 263 distributing it to local emergency food programs
264 1.47 Effective Date. “Effective Date of Agreement” means the date designated in the Agreement 265 as the effective date. If no such date is indicated, it shall mean the date on which the Agreement is signed 266 and delivered by the last of the parties to sign and deliver. 267 1.48 Exempt Waste. Biohazardous or Biomedical Waste, Hazardous Waste, Sludge, 268 automobiles, automobile parts, boats, boat parts, boat trailers, internal combustion engines, lead-acid 269 batteries, dead animals, and those wastes under the control of the Nuclear Regulatory Commission.

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270 1.49 Food Waste. “Food Waste” means all putrescible solid, semisolid, and liquid food, such as, 271 fruit, vegetables, cheese, meat, bones, poultry, seafood, bread, rice, pasta, and oils; coffee grounds and 272 filters and tea bags; and any putrescible matter produced from human or animal food production, 273 preparation, and consumption activities.
274 1.50 Franchised Diversion. Franchised Diversion means the rate of diversion that Contractor is 275 responsible to achieve as defined and calculated Section 5.02.1. 276 1.51 Franchise Fee. A fee established by resolution by City Council in consideration of Exclusive 277 Franchise.
278 1.52 Garbage. All putrescible and non-putrescible solid, semi-solid and associated liquid waste, 279 as defined in California Public Resources Code section 40191. Garbage does not include Recyclable 280 Materials, Organic Waste, Large Items, or Exempt Waste. Garbage must be generated by and at the 281 Service Unit wherein the Garbage is Collected.
282 1.53 Green Waste. “Green Waste” means Solid Waste consisting of any vegetative waste 283 generated from the maintenance or alteration of residential, commercial, or industrial premises including, 284 but not limited to, grass clippings, leaves, tree trimmings, prunings, brush, weeds, flowers, herbs, and 285 holiday trees
286 1.54 Gross Revenue. All monetary amounts actually collected or received by Contractor for the 287 provision of Franchise services pursuant to this Agreement. Gross Revenue shall include all receipts from 288 customers including late charges, contamination charges etc., including Solid Waste Management Fees 289 and Franchise Fees. The term Gross Revenues, for purposes of this Agreement, does not include any 290 revenues generated from the sale of Recyclable Material, compost product or energy, grants, cash awards 291 or rebates resulting from the performance of this Agreement. 292 1.55 Hazardous Waste. “Hazardous Waste” means a waste, or combination of wastes as 293 defined by Code of Federal Regulations, Title 40.
294 1.56 Holiday. “Holiday” means a day of the year designated by Contractor on which waste 295 Collection Service will not be provided until the following day, excluding Sunday. 296 1.57 Home Compost Bin. A portable durable container purchased by the City, and sold to SFD 297 or MFD/MXD Service Recipients at a discounted rate, and stored and distributed by the Contractor to SFD 298 or MFD/MXD Service Recipients for use by those Service Recipients to compost Organic Waste at their 299 premises.
300 1.58 Household Hazardous Waste. “Household Hazardous Waste” means that waste resulting 301 from products purchased by the general public for household use which, because of its quantity, 302 concentration or physical, chemical or infectious characteristics, may pose a substantial known or potential 303 hazard to human health or the environment when improperly treated, disposed or otherwise managed, or, 304 in combination with other Solid Waste, may be infectious, explosive, poisonous, caustic, toxic, or exhibit 305 any of the characteristics of ignitability, corrosivity, reactivity, or toxicity as per California Code of 306 Regulations Title 22, Division 4.5, Chapter 11, Section 66261.3 307 1.59 Large Green Waste. Oversized Green Waste such as tree trunks and branches with a 308 diameter of not less than six (6) inches and not more than two (2) feet and a length of not more than five AR000030
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309 (5) feet in its longest dimension, which are attributed to the normal activities of an SFD Service Unit. Large 310 Green Waste must be generated by and at the SFD Service Unit where the Large Green Waste is 311 Collected.
312 1.60 Large Items. “Large Items” or “Bulky Waste” means Solid Waste consisting of discarded 313 white goods, furniture, tires, carpets, mattresses, and similar large items which do not fit in a regular 314 Collection Container and require special handling due to their size but can be collected and transported 315 without the assistance of special loading equipment (such as forklifts or cranes) and without violating 316 vehicle load limits. It does not include abandoned automobiles and other vehicles, nor does it include items 317 defined as Exempt Waste.
318 1.61 Materials Recovery Facility. Materials Recovery Facility (MRF) means a facility to which 319 commingled Solid waste, Organic waste and Recyclable Materials are brought for separation into 320 marketable Recyclables.
321 1.62 Materials Recycling Facility. Same as Materials Recovery Facility. 322 1.63 Maximum Service Rate. The maximum amount that Contractor may charge Service 323 Recipients for Collection Services, as listed in Exhibit 1, and as may be adjusted in accordance with the 324 provisions of this Agreement.
325 1.64 Median Islands. The area between opposing lanes of traffic defined by a curb or road 326 markings.
327 1.65 Multi-Family Dwelling (MFD) Collection Service. MFD Solid Waste Collection Service 328 serves an apartment, townhome or condominium complex, and specifically includes the following, MFD 329 Garbage Collection Service, MFD Large Item Collection Service, MFD Organic Waste Collection Service, 330 and MFD Recycling Service:
331 A. MFD Garbage Collection Service. The Collection of Residential Garbage, by 332 Contractor, from MFD Service Units in the Service Area and the delivery of that Residential Garbage to a 333 Disposal Facility.
334 B. MFD Large Item Collection Service. The periodic on-call Collection of Large Items, 335 by Contractor, from MFD Service Units in the Service Area and the delivery of those Large Items to a 336 Disposal Facility, Materials Recovery Facility or such other facility as may be appropriate under the terms of 337 this Agreement. MFD Large Item Collection Service may include the Collection of Large Items using Roll338 Off Containers. 339 C. MFD Organic Waste Collection Service. The Collection of Organic Waste, by 340 Contractor, from MFD Service Units in the Service Area, the delivery of those Organic Waste materials to 341 an Organic Waste Processing Facility and the processing and marketing of those Organic Waste materials, 342 and the disposal of all MFD Organic Waste Processing Residue. 343 D. MFD Recycling Service. The Collection of Recyclables Materials by the Contractor 344 from MFD Service Units in the Service Area, the delivery of those Recyclable Materials to a Materials 345 Recovery Facility and the processing and marketing of those Recyclable Materials, and the disposal of all 346 MFD Recyclables Materials Processing Residue.

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347 1.66 Multi-Family Dwelling - Centralized (MFD-C) Collection Service. MFD-C Solid Waste 348 Collection Service that is centralized for the apartment, townhome or condominium complex, and 349 specifically includes the following: MFD-C Garbage Collection Service (as defined in 1.62A), MFD-C Large 350 Item Collection Service (as defined in 1.62B), MFD-C Organic Waste Collection Service (as defined in 351 1.62C), and MFD-C Recycling Service (as defined in 1.62D). 352 1.67 Multi-Family Dwelling - Individual (MFD-I) Collection Service. MFD-I Solid Waste Collection 353 Service where units have individual carts within the apartment, townhome or condominium complex and 354 specifically includes the following: MFD-I Garbage Collection Service (as defined in 1.62A), MFD-I Large 355 Item Collection Service (as defined in 1.62B), MFD-I Organic Waste Collection Service (as defined in 356 1.62C), and MFD-I Recycling Service (as defined in 1.62D). 357 1.68 Non-Collection Notice. A form developed and used by Contractor, as approved by City, to 358 notify Service Recipients of the reason for non-collection of materials set out by the Service Recipient for 359 Collection by Contractor pursuant to this Agreement. 360 1.69 Non-putrescible Material. “Non-putrescible Material” means Solid Waste consisting of 361 waste which is not organic and not subject to decomposition by microorganisms. 362 1.70 Organic Waste. “Organic Waste” means Food Waste, Green Waste, nonhazardous wood 363 waste, and food-soiled paper waste that is mixed in with Food Waste. 364 1.71 Organic Waste Collection Service. The Collection of Organic Waste from Service Units and 365 processing at an Organic Waste Processing Facility, and the disposal of all Organic Waste Processing 366 Residue.
367 1.72 Organic Waste Processing Facility. “Organic Waste Processing Facility” means a State 368 permitted commercial Solid Waste facility which accepts and processes Organic Materials. 369 1.73 Overage. Overage means excess Solid Waste, Organic Waste and Recyclable Materials 370 (i) placed inside a Container that prevents the lid on the Container from being completely closed (i.e., lid 371 remains open greater 45-degrees) or excess materials placed on top of or around a Container and (ii) 372 could potentially result in excess materials spilling/dislodging during collection activity by Contractor’s 373 vehicles.
374 1.74 Premises. “Premises” means any land or building in the City where waste is generated or 375 accumulated.
376 1.75 Putrescible Material. “Putrescible Material” means Solid Waste consisting of waste which 377 is organic and subject to decomposition by microorganisms. 378 1.76 Quarter. Period of three (3) months with first quarter the months of January through March, 379 second quarter April through June, third quarter July through September, and fourth quarter October 380 through December.
381 1.77 Recyclable Materials. “Recyclable Materials” means Solid Waste consisting of any material 382 which retains useful properties and can be reclaimed after the production or consumption process.

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383 1.78 Recycling. “Recycling” means the process of collecting, sorting, cleansing, treating and/or 384 marketing Recyclable Materials that would otherwise be disposed of in a landfill. The collection, 385 transportation or disposal of Solid Waste not intended for, or capable of, reuse is not Recycling. 386 1.79 Residential Collection Service. “Residential Collection Service” means ongoing regularly 387 scheduled collection of Residential Solid Waste by an Exclusive Franchise from Residential Service Units 388 and the delivery of that Residential Solid Waste to a Disposal Facility, Recycling Facility, and/or Organics 389 Processing Facility.
390 1.80 Residential Garbage. “Residential Garbage” means Garbage originating from Residential 391 Premises.
392 1.81 Residential Premises. “Residential Premises” means a Premises used for residential 393 purposes.
394 1.82 Residential Solid Waste. “Residential Solid Waste” means Solid Waste originating from 395 Residential Premises.
396 1.83 Residual or Residuals. Residual or Residuals means Solid Waste that is not diverted from 397 landfill disposal after it has been delivered to an Organic Waste Processing Facility or a Recyclables 398 Processing Facility for processing for diversion from landfill disposal. Residual does not include Recyclable 399 Materials or Organic Material that is processed for diversion but has no available markets. 400 1.84 Roll-Off Container. A metal container with a capacity of ten (10) or more cubic yards that 401 is normally loaded onto a specialized Collection Vehicle and transported to an appropriate facility. 402 1.85 SB 1383. “SB 1383” means State of California Senate Bill 1383, which mandates a fifty 403 (50) percent reduction in disposal of Organic Materials from the 2014 levels by 2020 and seventy-five (75) 404 percent reduction by 2025. Further, SB 1383 requires jurisdictions to implement Edible Food Recovery 405 Programs designed to recover edible food that is currently landfilled by twenty (20) percent by 2025. 406 1.86 Service Area. That area within the city limits of the City of Thousand Oaks designated by 407 City as the Service Area.
408 1.87 Service Recipient. An individual or company receiving SFD Collection Service, Commercial 409 Collection Service, MFD or MXD Collection Service.
410 1.88 Service Unit. SFD Service Units, MFD Service Units, MXD Service Units, City Service Units 411 or Commercial Service Units. Service Unit specifically includes the following:
412 A. City Service Unit. City Facility(ies) that utilize a Bin, Cart, or Roll-Off Container(s) 413 for the accumulation and set-out of Solid Waste.
414 B. Commercial Service Unit. All retail, professional, wholesale and industrial facilities, 415 and other commercial enterprises offering goods or services to the public that utilize a Garbage Bin, 416 Cart, Compactor, Roll-Off Container for the accumulation and set-out of Commercial Solid Waste. 417 C. MFD-C Service Unit. Five (5) or greater Dwelling Units in the Service Area utilizing 418 a centralized Cart or Bin, or any combination of MFD Dwelling Units sharing Collection Containers for 419 the accumulation of and set out of Residential Solid Waste.

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420 D. MFD-I Service Unit. Five (5) or greater Dwelling Units in the Service Area each 421 utilizing a Cart, or individual units of MFD/MXD Dwelling Units each served by Carts, for the 422 accumulation and set out of Residential Solid Waste. 423 E. MXD (Mixed-use Development) Service Unit. A mix of Commercial Service Units 424 and five (5) or greater Dwelling Units in the Service Area utilizing any combination of Collection 425 Containers for the accumulation of and set out of Solid Waste. 426 F. SFD Service Unit. Any Single-Family Dwelling Unit in the Service Area utilizing a 427 Cart for the accumulation and set out of Residential Solid Waste. 428 1.89 SFD Collection Service. SFD Garbage Collection Service, SFD Recycling Service, SFD 429 Organic Waste Collection Service, SFD Large Item Collection Service, SFD Used Oil Collection Service 430 and SFD Manure Collection Service.
431 A. SFD Garbage Collection Service. The Collection of Residential Garbage, by 432 Contractor, from SFD Service Units in the Service Area and the delivery of that Residential Garbage to a 433 Disposal Facility.
434 B. SFD Large Item Collection Service. The periodic on-call Collection of Large Items, 435 by Contractor, from SFD Service Units in the Service Area and the delivery of those Large Items to a 436 Disposal Facility, Materials Recovery Facility or other such facility as may be appropriate under the terms 437 of this Agreement. SFD Large Item Collection Service does not include the Collection of Large Items using 438 Roll-Off Containers.
439 C. SFD Organic Waste Collection Service. The Collection of Organic Waste, by 440 Contractor, for SFD Service Units in the Service Area, the delivery of those Organic Waste Materials to an 441 Organic Waste Processing Facility and the processing and marketing of those Organic Waste materials, 442 and the disposal of all SFD Organic Waste Processing Residual. 443 D. SFD Recycling Service. The Collection of Recyclable Materials by the Contractor 444 from SFD Service Units in the Service Area, the delivery of those Recyclable Materials to a Materials 445 Recovery Facility and the processing and marketing of those Recyclable Materials. 446 1.90 Single-family Dwelling or SFD. “Single-family/duplex dwelling” or “SFD” means a single 447 detached dwelling unit, and/or a duplex structure of two (2) single attached dwelling units, each designed 448 for use by one bona fide housekeeping group.
449 1.91 Sludge. The accumulated solids, residues, and precipitates generated as a result of waste 450 treatment or processing, including wastewater treatment, water supply treatment, or operation of an air 451 pollution control facility, and mixed liquids and solids pumped from septic tanks, grease traps, privies, or 452 similar disposal appurtenances or any other such waste having similar characteristics or effects. 453 1.92 Solid Waste. “Solid Waste” means all putrescible and non-putrescible solid, semisolid, and 454 liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and 455 construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, 456 dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable 457 or animal solid and semisolid wastes, and other discarded solid and semisolid wastes, as set forth in AR000034
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458 California Public Resources Code Section 40191(a)(b), as amended from time to time, and includes Brown 459 Goods, Commercial Solid Waste, Construction and Demolition Debris, Food Waste, Garbage, Green 460 Waste, Large Green Waste, Large Items, Organic Waste, Recyclable Materials, White Goods. 461 1.93 Solid Waste Management Fee. Administrative costs of managing the City’s solid waste 462 program paid for by Contractor.
463 1.94 Source separated. “Source separated” means the segregation, by the waste generator, of 464 materials designated for separate collection for some form of materials recovery or special handling. 465 1.95 Split-bin. A single Collection Container divided into two separate compartments, with 466 individual lids for each compartment, to allow for separation of two waste streams. 467 1.96 SRRE (Source Reduction and Recycling Element). A formal planning document prepared 468 and adopted by a California jurisdiction, and submitted to the California Department of Resources 469 Recycling and Recovery (CalRecycle), that demonstrates how the jurisdiction will comply with the 470 California Integrated Waste Management Acts (AB 939) diversion goals. The jurisdiction’s SRRE must 471 include specific components, as defined in Public Resources Code sections 41003 and 41303. 472 1.97 Limited Franchise Agreement. Formerly “Non-exclusive Franchise Agreement”, a separate 473 agreement with the City which permits a contractor on a non-exclusive basis to provide for service to 474 collect solid waste, organics, construction and demolition debris, and/or recyclable materials on a 475 temporary basis.
476 1.98 Term. “Term” means the time period or duration of an Exclusive Franchise or Limited 477 Franchise or Permit.
478 1.99 Transfer station. “Transfer station” means those facilities utilized to receive Solid Waste, 479 and temporarily store and transfer such waste directly from smaller to larger vehicles for transport 480 1.100 Unicycling. A method of separating trash and recyclable materials in a single Collection 481 Container. Trash materials are collected in bags and deposited into the Collection Container and 482 recyclable materials are deposited into the Collection Container loose and unbagged. 483 1.101 Universal Waste or U-Waste. E-Waste, dry-cell batteries, non-empty aerosol cans, 484 fluorescent lamps, and fluorescent bulbs, mercury thermostats, and other mercury containing equipment. 485 1.102 Waste. “Waste” means the useless, unused, unwanted or discarded material and debris 486 resulting from normal residential and commercial activity or materials which, by their presence, may 487 injuriously affect the health, safety, and comfort of persons or depreciate property values in the vicinity 488 thereof.
489 1.103 Waste diversion. “Waste diversion” means to divert Solid Waste, in accordance with all 490 applicable Federal, State, and local requirements, from disposal at landfills or transformation facilities 491 through source reduction, composting or recycling.
492 1.104 Waste generator. “Waste generator” means any person, as defined by the most current 493 version of the Public Resources Code, whose act or process produces solid waste as defined in that same 494 code, or whose act first causes solid waste to become subject to regulation.

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495 1.105 Waste Reporting System (WRS). An online/digital data system designated by the City for 496 recording and documenting outreach, customer service, site visits, weights and volumes by waste stream, 497 and field issues for compliance, customer service, and reporting purposes. 498 1.106 White goods. “White goods” means enamel-coated major appliances, such as washing 499 machines, clothes dryers, hot water heaters, stoves, and refrigerators. 500 1.107 Work Day. Any day, Monday through Saturday, that is not a holiday as set forth in Article 501 3.07 of this Agreement.
502 1.108 Wood waste. “Wood waste” means Solid Waste consisting of stumps, large branches, tree 503 trunks, and wood pieces or particles that are generated from the manufacturing or production of wood 504 products, harvesting, processing or storage of raw wood materials, or construction and demolition 505 activities.
506 Article 2. Term of Agreement
507 2.01 Initial Term. The initial term of this Agreement will be for fifteen (15) year period beginning 508 January 1, 2022 and terminating on December 31, 2036. 509 2.02 Extension of Term. Contractor may request up to two, five (5) year term extensions to the 510 Initial Term, and at City’s sole option, City may grant Contractor’s request to extend the term. Under no 511 circumstances will City be obligated to extend the term. Contractor must request the first five (5) year 512 extension by December 31, 2034 in order to be eligible for the first term extension, and the second by 513 December 31, 2039 in order to be eligible for the second term extension. 514 2.03 Performance Review Prior to Five (5) Year Extension. A billing audit and performance 515 review shall be conducted two years prior to the end of the Initial Term (i.e. during 2034, and to be 516 completed by December 31, 2034) as described in Section 15.02. The cost of the review shall be paid as 517 specified in that Section. In order to be eligible for an Extension of the Term of the Agreement under Section 518 2.02, Contractor must meet billing and performance standards to the satisfaction of the City. In the event 519 Contractor fails to meet the minimum service and diversion requirements set forth in Section 5.01, this 520 Agreement will terminate on December 31, 2036 as set forth in Section 2.01 of this Agreement. 521 Article 3. Conditions Governing Services Provided by Contractor 522 3.01 Grant of Exclusive Agreement. City hereby grants to Contractor, on the terms and 523 conditions set forth herein, the Exclusive Franchise, right and privilege to collect, remove and dispose of, in 524 a lawful manner, Solid Waste, Recyclable Materials, and Organic Materials accumulating in the City’s 525 Service Area that are required to be accumulated and offered for collection to the Contractor in accordance 526 with the City’s Municipal Code, for the Term of and within the scope set forth in this Agreement. 527 3.02 Grant of Limited Franchise Waste Hauling Agreement. City also hereby grants to 528 Contractor the right to enter into, without a separate application, a Limited Franchise Waste Hauling 529 Agreement with the City, subject to the terms and conditions set forth in that agreement, which provides the 530 right and privilege to collect, remove and dispose of, in a lawful manner, Solid Waste, Recyclable Materials, 531 and Organic Materials on a temporary basis. The right to an award of a Limited Franchise Waste Hauling AR000036
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532 Agreement without a separate application shall continue for the term of the Exclusive Agreement provided 533 that its conditions, and those of the Exclusive Agreement herein, are met. 534 3.03 Recyclable Materials Organic Waste, and Bulky Waste Discarded by Service Recipients. 535 This Agreement shall not prohibit any person from selling Recyclable Materials or Organic Waste or giving 536 Recyclable Materials or Organic Waste away to persons or entities other than Contractor. However, in either 537 instance: (1) the Recyclable Materials or Organic Waste must be source separated from and not mixed with 538 other Solid Waste; and (2) the seller/donor may not pay the buyer/donee any consideration for collecting, 539 processing or transporting such Recyclable Materials or Organic Waste. A discount or reduction in the price 540 for collection, disposal and/or recycling services for any form of un-segregated or segregated Solid Waste 541 is not a sale or donation of Recyclable Materials or Organic Waste and such Solid Waste does not qualify 542 for this exception. However, once the Recyclable Materials or Organic Waste have been placed in the 543 Collection Container and the Container set out for Collection, the Recyclable Materials or Organic waste 544 become the property of Contractor.
545 3.04 Exclusions to Exclusivity.
546 3.04.1 Specialized Recyclable Materials. If Contractor is unable or unwilling to collect and 547 process for diversion specialized materials, including, but not limited to, organics, metals, construction and 548 demolition debris, laboratory waste, pallets and others, and which a third party is able to re-use or recycle, 549 Service Recipients shall have the right to engage the third-party recycler to collect and recycle those source550 separated Recyclable Materials provided that the diversion is verified by the City and the third party obtains 551 a City recycling permit.
552 3.04.2 Recyclable Materials Sold By Commercial Generator. If the waste generator at a 553 Commercial Service Unit has source separated Recyclable Material, the generator is entitled to sell that 554 Recyclable Material or be otherwise compensated in a manner resulting in a net positive payment to the 555 generator, when such collector is permitted as appropriate under the City Municipal Code. 556 3.04.3 Byproducts of Food and Beverage Processing. Under AB 3036 (2018), certain 557 byproducts from the processing of food or beverages from agricultural or industrial sources, provided they 558 are source-separated and used as animal feed, are exempted from this Exclusive Franchise Agreement. 559 Entities requesting exemption must apply to the City and be any of the following: registered pursuant to 560 Section 110460 of the Health and Safety Code, or be exempted from registration pursuant to Section 110480 561 of the Health and Safety Code, or be a beer manufacturer as defined in Section 23012 of the Business and 562 Professions Code, or a distilled spirits manufacturer, as defined in Section 23015 of the Business and 563 Professions Code.
564 3.04.4 Donated Solid Waste. Recyclable Materials, Organic Waste, or Large Items which 565 is source separated at any premises by the waste generator and donated to youth, civic or charitable 566 organizations qualified as such pursuant to Federal law. 567 3.04.5 Gardening or Landscape Services. Green Waste removed from a premises by a 568 gardening, landscaping, or tree trimming company as an incidental part of a total service offered by that 569 company rather than as a hauling service;
570 3.04.6 Temporary Services. Temporary Collection services for Solid Waste and 571 Construction and Demolition Debris is covered under the City’s Limited Franchise Agreement and Contractor AR000037
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572 must abide by terms of that agreement for collection and processing and diversion of Construction and 573 Demolition Debris.
574 3.05 Responsibility for Service Billing and Collection. Contractor is responsible for the billing 575 and collection of payments for Collection Services within the Service Area. 576 3.06 Contractor’s Payments to City.
577 3.06.1 Reimbursement for the Cost of Procurement Process. Contractor shall reimburse 578 the City for the cost of the Franchise Agreement solicitation, evaluation and award process up to but no 579 more than One Hundred and Fifty Thousand Dollars ($150,000). This one-time payment is due within thirty 580 (30) days of the Effective Date of the Agreement.
581 3.06.2 Solid Waste Management Fee. In consideration of the administrative costs of 582 managing the City’s solid waste program, Contractor shall pay City a Solid Waste Management Fee as a 583 percent of the Gross Revenue received by the Contractor from Franchise services provided in the City 584 pursuant to this Agreement. The City Council may adjust the Solid Waste Management Fee by resolution, 585 in which case Contractor shall be entitled to a rate adjustment as a City-directed change in accordance with 586 Section 28.01. The Solid Waste Management Fee for the Agreement Year and thereafter shall be eight-and587 one-quarter (8.25) percent of Gross Revenue from Commercial, MFD-C, and MXD Service Recipients and 588 ten-and-one-quarter (10.25) percent of Gross Revenue from SFD and MFD-I Service Recipients. 589 3.06.3 Franchise Fee. In consideration of the Exclusive Franchise provided for in Section 590 3.01 of this Agreement, Contractor shall pay the City a Franchise Fee as a percent of the Gross Revenue 591 received by the Contractor from Franchise services provided in the City pursuant to this Agreement. The 592 Franchise Fee shall reflect a reasonable estimate of the value of the franchise and shall be established and 593 adjusted as necessary by City Council by resolution. If adjusted during the term of this Agreement, 594 Contractor shall be entitled to a rate adjustment as a City-directed change in accordance with Section 28.01. 595 The Franchise Fee for the Agreement Year and thereafter shall be nine (9) percent of Gross Revenue. 596 3.06.4 Reimbursement for the Annual Subscription Cost for Waste Reporting System. 597 Contractor shall reimburse City annually for cost of subscription to Waste Reporting System software 598 services, not-to-exceed $25,000 per year annually adjusted for CPI. Payment is due within thirty (30) days 599 of receipt of invoice.
600 3.06.5 Community Program Support. Contractor shall provide support to City schools and 601 the community in the amount of $200,000 per year for life of the Agreement, including any extension of the 602 Term in accordance with Section 2.02.
603 3.06.6 Time and Method of Payment; Late Fees. Solid Waste Management Fees and 604 Franchise Fees shall be computed and paid based on Gross Revenue received each calendar month for 605 services rendered. Contractor shall prepare and mail such remittance on a quarterly basis to the Finance 606 Director, and such remittance must be hand-delivered or postmarked no later than the last business day of 607 the month following the end of each quarter. For hand-delivered remittance, the Contractor must request 608 and receive a receipt or time stamp with the exact date remittance is received by the City Finance Director 609 or designee.

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610 3.06.7 The remittance will be accompanied by a report, prepared in a format acceptable 611 to City Manager or designee, setting forth the basis, and calculations used for computing the amount due. 612 The figures used shall be taken from the general books of account of the Contractor. All supporting 613 documentation must be retained by the Contractor in accordance with the records retention requirements in 614 Section 45.01.
615 3.06.8 If the Contractor fees to the City are not paid by the date set by this Agreement, 616 then in addition to the fees, the Contractor shall pay a penalty as specified in Exhibit 9, except to the extent 617 that such lateness is due to extenuating circumstances. 618 3.06.9 In addition, the Contractor shall pay interest on all unpaid fees at the rate of six (6) 619 percent per annum or the prime (lending) rate, whichever is higher but not to exceed the legal rate, from the 620 date the fees were due and payable to the date actually paid. 621 3.06.10 If the delay is due to extenuating circumstances, Contractor must request approval 622 in writing from the City Manager or designee at least five (5) business days prior to the date on which fees 623 and reports are due. City shall contact Contractor within three (3) business days of receiving request for 624 submission delay as to whether delay shall be permitted. 625 3.06.11 Taxes and Utility Charges. The Contractor shall pay all Taxes lawfully levied or 626 assessed upon or in respect of the Operating Assets or the Franchise Services, or upon any part thereof of 627 upon any revenues necessary for the operation of the Operating Assets and the provision of the Franchise 628 Services, when the same shall become due.
629 3.06.12 Disputes. In the event of any disputes between the Contractor and the City with 630 respect to the fees described in Section 3, the City shall provide the Contractor with written objection within 631 180 days of the receipt of the report described in Section 3.06.7, indicating the position of the report that is 632 disputed and providing all reason then known to the City for its objection to or disagreement with such 633 amount. If any such amount is adjusted in the City’s favor pursuant to agreement, mediation, legal 634 proceeding, or otherwise, the Contractor shall pay the amount of such adjustment to the City, with interest 635 thereof at the Overdue Rate from the date such disputed amount was due the City to date of payment in full 636 of such amount. Nothing contained in this subsection shall limit the authority of any authorized office of the 637 City or any other governmental agency to raise a further objection to any amount billed by the Contractor 638 pursuant to an audit conducted pursuant to Applicable Law. If the Contractor prevails in the dispute, the 639 Contractor shall have the right to recover from the City its reasonable costs incurred in connection with the 640 dispute resolution procedure.
641 3.07 Service Standards. Contractor must perform all Collection Services under this Agreement 642 in a thorough and professional manner as described in Section 23, while meeting the minimum performance 643 and diversion standards listed in Section 15 according to the Sustainability and Compliance Plan (Exhibit 644 12) developed by the Contractor and approved by the City. 645 3.08 Labor and Equipment. Contractor must provide and maintain all labor, equipment, tools, 646 facilities, and personnel supervision required for the performance of Contractor’s obligations under this 647 Agreement. Contractor must always have sufficient backup equipment and labor to fulfill Contractor’s 648 obligations under this Agreement. No compensation for Contractor’s services or for Contractor’s supply of AR000039
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649 labor, equipment, tools, facilities or supervision will be provided or paid to Contractor by City or by any 650 Service Recipient except as expressly provided by this Agreement. 651 3.09 Holiday Service. The City observes New Year’s Day, Memorial Day, Independence Day, 652 Labor Day, Thanksgiving Day, and Christmas Day as legal holidays. Contractor is not required to provide 653 Collection Services or maintain office hours on the designated holidays. In any week in which one of these 654 holidays falls on a Work Day, SFD Collection Services for the holiday and each Work Day thereafter will be 655 delayed one Work Day for the remainder of the week with normally scheduled Friday SFD Collection 656 Services being performed on Saturday. Commercial Collection Services will be adjusted as set forth in Article 657 8 but must meet the minimum frequency requirements of one (1) time per week. Collection Services will not 658 take place on Sundays.
659 3.10 Inspections. The City has the right to inspect Contractor’s facilities or Collection Vehicles 660 and their contents used to provide services pursuant to this Agreement at any reasonable time while 661 operating inside or outside the City.
662 3.11 Commingling of Materials.
663 3.11.1 SFD Materials Collected in Thousand Oaks. Contractor may not at any time 664 commingle any SFD materials Collected pursuant to this Agreement with any other material Collected by 665 Contractor inside or outside the City of Thousand Oaks without the express prior written authorization of the 666 Agreement Administrator.
667 3.11.2 Commercial Materials Collected in Thousand Oaks. Contractor may commingle 668 Commercial materials collected pursuant to this Agreement with other materials collected outside the City 669 of Thousand Oaks, provided that Contractor tracks the tonnage of Commercial material collected inside the 670 City of Thousand Oaks separately using a City-approved allocation methodology. Changes to the allocation 671 methodology may only be made with the express prior written authorization of the Agreement Administrator. 672 3.11.3 Recyclable Materials. Subject to Sections 7.07.2 and 8.03.4, Contractor may not 673 at any time commingle SFD or Commercial Recyclable Materials Collected pursuant to this Agreement with 674 any other material type Collected by Contractor without the express prior written authorization of the 675 Agreement Administrator.
676 3.11.4 Organic Waste. Subject to Sections 7.08.4 and 8.04.5, Contractor may not at any 677 time commingle SFD or Commercial Organic Waste Collected pursuant to this Agreement with any other 678 material type Collected by Contractor, without the express prior written authorization of the Agreement 679 Administrator.
680 3.11.5 Commingled Garbage and Recyclables. Only in special circumstances in which 681 separate Collection Containers pose a challenge due to space or logistical constraints, and with prior written 682 authorization of the Agreement Administrator, Contractor will Collect Commercial Garbage and Recyclable 683 Materials in the same Collection Container, using a Split-bin or Unicycling, for the purposes of processing 684 Recyclable Materials for diversion.
685 3.12 Recyclable Materials and Organic Waste Contamination. Contractor must offer the Service 686 Recipients the correct combination of Cart and Bin sizes and collection frequency beyond the minimum 687 bundled service requirements as necessary, that matches their unique service needs to reduce AR000040
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688 contamination of Recyclable Materials and Organic Waste, and provide service at least cost to Service 689 Recipient. To support City’s diversion goals and Contractor’s Diversion Requirements as set forth in Article 690 5.01, Contractor is only required to collect and process Recyclable Materials if they have been separated by 691 the Service Recipient from Garbage and Organic Waste and is only be required to collect Organic Waste if 692 it has been separated by the Service Recipient from Garbage and Recyclable Materials. 693 3.12.1 As part of Contractor’s Public Education Services under Article 18.01, Contractor 694 has agreed to provide outreach and support to Service Recipients as described in the Contractor’s 695 Sustainability and Compliance Plan provided as Exhibit 12. Additionally, Contractor’s route collection 696 personnel will report to Contractor’s supervisors if they observe potential contamination problems, and/or 697 insufficient collection capacity. For purposes of determining if Recyclable Materials or Organic Waste are 698 deemed to be contaminated, if, by visual or digital inspection, Recyclable Materials are commingled with ten 699 percent (10%) by weight or volume of Garbage or Organic Waste, or if, by visual inspection, Organic Waste 700 is commingled with three percent (3%) by volume of Garbage or Recyclable Materials, then Recyclable 701 Materials and/or Organic Waste will be deemed to be contaminated and Contractor may take the following 702 steps:
703 3.12.2 Violations by SFD Service Recipients.
704 1. First and Second Occurrence. For the first and second occurrence within 705 any one Calendar Year of contamination for a particular container (i.e., Recyclable Materials or Organic 706 Waste), Contractor must collect the contaminated container (as Solid Waste) and must affix a Contamination 707 Violation Notice to the contaminated container which contains instructions on the proper procedures for 708 sorting Recyclable Materials or Organic Waste, and must notify the Service Recipient by phone, U.S. mail, 709 e-mail, or in person (which may be a container tag), that for the third and subsequent incidents of excess 710 contamination, the Service Recipient may be charged a contamination fee for the contaminated container, 711 and Contractor may increase the Collection Container size, or require an additional Collection Container. 712 Contractor’s representative must also contact the Service Recipient by phone, U.S. mail, e-mail, or in person 713 (which may be a container tag) to ensure that they have the appropriate level of service for proper collection 714 of Recyclable Materials and/or Organic Waste. Contractor must also document the contamination issue in 715 the Waste Reporting System provide digital/visual documentation to the Service Recipient that clearly 716 documents the Service Recipient’s on-going contamination problems. 717 2. Third and Subsequent Occurrence. For the third or subsequent 718 occurrence within any one Calendar Year of contamination for a particular container (i.e., Recyclable 719 Materials or Organic Waste), Contractor must collect the contaminated Container (as Solid Waste) and must 720 charge the Service Recipient a contamination fee as set forth in Exhibit 1. Contractor must continue providing 721 the Recyclable Materials or Organic Waste Collection Services. Contractor must provide (or have provided) 722 digital/photographic documentation to the Service Recipient that clearly documents the Service Recipient’s 723 on-going contamination problems and written Notices of contamination as described above. Contractor may 724 increase the Container size or collection frequency and impose a contamination surcharge on the account 725 for a period of six months or until the Service Recipient has demonstrated no contamination for a period of 726 three consecutive months. Contractor must document contamination issue and surcharge in Waste 727 Reporting System and notify City within five (5) Business Days if Contractor increases the Container size or 728 collection frequency for excessive contamination or imposes the contamination surcharge to the account.

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729 City will consult with Contractor and consider, and pursue as applicable, appropriate legal remedies against 730 offending Service Recipients in order to secure discontinuance of the contamination. 731 3.12.3 Violations by Commercial and MFD/MXD Service Recipients. The following 732 provisions will apply to all Commercial and MFD/MXD Service Recipients except those eligible for temporary 733 treatment pursuant to Section 3.09.3.
734 1. First and Second Occurrence. For the first and second occurrences within 735 any one Calendar Year of contamination for a particular container (i.e., Recyclable Materials or Organic 736 Waste), Contractor must collect the contaminated container (as Solid Waste) and must affix a Contamination 737 Violation Notice to the contaminated container which contains instructions on the proper procedures for 738 sorting Recyclable Materials or Organic Waste, and must notify the Service Recipient by phone, U.S. mail, 739 e-mail, or in person (which may be a container tag), that for the third and subsequent incidents of 740 contamination, the Service Recipient will be charged a contamination fee for the contaminated container, 741 and Contractor may increase the Container size, require locking Bins, increase collection frequency, and 742 impose a contamination surcharge on the account for a period of six months or until the Service Recipient 743 has demonstrated no contamination for a period of three consecutive months. Contractor’s representative 744 must also contact the Service Recipient by phone, U.S. mail, e-mail, or in person (which may be a container 745 tag) to ensure that they have the appropriate level of service for proper collection of Recyclable Materials 746 and/or Organic Waste. Contractor must also provide digital/visual documentation to the Service Recipient 747 that clearly documents the Service Recipient’s contamination problem and document in the Waste Reporting 748 System.
749 2. Third and Subsequent Occurrence. For the third and subsequent 750 occurrence within any one Calendar Year of contamination for a particular container (i.e., Recyclable 751 Materials or Organic Waste), Contractor will provide a Contamination Violation Notice that contains 752 instructions on the proper procedures for setting out Recyclable Materials or Organic Waste, and Contractor 753 must collect the contaminated Container (as Solid Waste) and will charge the Service Recipient a 754 contamination fee as set forth in Exhibit 1. For any contamination fee charge being assessed, Contractor 755 must provide digital/visual documentation to the Service Recipient that clearly documents the Service 756 Recipient’s on-going contamination problems. Contractor may increase the Container size, require locking 757 Bins, or increase collection frequency, and impose a contamination surcharge on the account for a period 758 of six months or until the Service Recipient has demonstrated no contamination for a period of three 759 consecutive months. Contractor must document contamination issue and surcharge in the Waste Reporting 760 System and notify City within five (5) Business Days if Contractor increases the Container size, require 761 locking Bins, increase collection frequency for excessive contamination, or imposes the contamination 762 surcharge to the account. City will consider, and pursue as applicable, appropriate legal remedies against 763 offending Service Recipients in order to secure discontinuance of the contamination 764 3.12.4 Tracking Occurrences of Contamination. Regarding Articles 3.12.2 – 3.12.3, each 765 Contamination occurrence is tracked annually per Calendar Year, and resets at the start of each Calendar 766 Year if contamination occurrences are not active and consecutive. Where contamination is occurring, and 767 occurrences are consecutive and unremedied their count shall continue across Calendar Years until remedy 768 occurs. In this case, once the Service Recipient has demonstrated no contamination for a period of three 769 consecutive months the tracking calendar will reset.

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770 3.12.5 Disputes Over Excess Contamination Charges. If Service Recipient disputes a 771 contamination charge (which must be within 30 days of them being assessed), Contractor will temporarily 772 halt any contamination charge and/or increased Maximum Service Rate resulting from increasing the 773 Collection Container size, or collection frequency, and Contractor may request a ruling by the City Manager 774 to resolve the dispute. During the pendency of any request, Contractor may restore Container size or 775 number, or collection frequency to the prior levels. A request by Contractor to the City Manager to rule on 776 any such dispute must be filed within ten (10) Business Days of Contractor’s halting of contamination charge, 777 or increased Maximum Rate, and must include written documentation and digital/visual evidence of ongoing 778 overall problems. The City Manager may request a meeting (in person or phone) with both the Service 779 Recipient and Contactor to resolve the dispute. Following such a meeting, the City Manager will rule on the 780 dispute within ten (10) Business Days, and the City Manager’s decision on resolving the dispute between 781 and Service Recipient will be final. If the City Manager rules in favor of the Service Recipient, Contractor will 782 credit the disputed contamination charges or increased Maximum Service Rate. If the City Manager rules in 783 favor of Contractor, Contractor may charge Service Recipient the prior halted contamination charge and/or 784 increased Maximum Service Rate resulting from increasing the Collection Container size or collection 785 frequency and may follow the steps in Article 4.04 for collection of delinquent accounts. 786 3.13 Container Overage and Correction Procedures. If a Customer is found to habitually 787 overflow their Collection Container(s), i.e. lid will not close, Contractor may take the steps as listed below to 788 correct Customers’ on-going overflow of material.
789 Customers receiving Residential, Commercial or Multi-Family services will be notified of Collection 790 overages. The process for customer overages, is as follows:
791 3.13.1 Garbage Overage and Correction Procedures.
792 1. Contractor shall provide the Service Recipients the correct combination of 793 Collection Containers and collection frequency that matches each Service Recipient’s unique service needs 794 to enable clean, efficient, and cost-effective collection of Solid Waste, Recyclable Materials, and Organic 795 Waste. City and Contractor agree that overflow of Solid Waste that is not properly in the Service Recipient’s 796 Solid Waste Collection Containers may negatively impact public health and safety. Contractor has also 797 agreed to conduct recycling audits and provide outreach and support to Service Recipient accounts receiving 798 the correct service level. However, if Service Recipients are found to habitually overflow their Solid Waste 799 Collection Containers, Contractor may take the steps as listed below to correct Service Recipient’s on-going 800 overflow of Solid Waste.
801 2. Prior Arrangements For Collection. If the Service Recipient has made prior 802 arrangements with Contractor for collection of Solid Waste Overages, Contractor must collect such overages 803 as arranged, and may charge the Service Recipient the Solid Waste Overage fee (prior arrangement) rate 804 set forth in Exhibit 1.
805 3. No Prior Arrangements. If the Service Recipient has not made prior 806 arrangements with Contractor for collection of Solid Waste Overage, (i) Contractor may collect such Solid 807 Waste Overage at no additional charge as a courtesy, (ii) Contractor may not collect the Solid Waste 808 Overage and leave a Non-Collection Notice explaining the reason for non-collection of the Solid Waste 809 Overage, (iii) Contractor may collect the Solid Waste Overage (up to two lifts) and charge the Service AR000043
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810 Recipient the Solid Waste Overage fee (no prior arrangement) rate set forth in Exhibit 1 as provided below, 811 or increase the capacity or frequency of collection of the existing Collection Container(s) to match 812 documented service needs as provided below. In managing Solid Waste Overages, the following apply:
813 3.13.2 SFD Service Recipients.
814 1. Each Occurrence. For each occurrence Contractor will not collect the Solid 815 Waste Overage if the Collection Container could not be serviced by normal operating procedures or cause 816 spillage upon servicing and Contractor must provide the following written notice via e-mail, U.S. mail, or in 817 person (which may be by Non-Collection Notice) to the Service Recipient: (i) the date, description and 818 photograph of the Solid Waste Overage and document in the Waste Reporting System. Contractor’s Non819 Collection Notice for SFD Service Recipients shall also contain instructions on (a) how to schedule a Large 820 Item Collection or (b) request an additional Collection Container to eliminate future Overages. 821 3.13.3 Commercial and MFD/MXD Service Recipients.
822 1. Each Occurrence. Contractor must provide a written notice on the 823 Container and may provide a copy of the notice via e-mail, U.S. mail, or in person (which may be by Non824 Collection Notice) to the Service Recipient with the date, description and photograph of the Solid Waste 825 Overage. Contractor may collect the Solid Waste Overage and may charge the Service Recipient a Solid 826 Waste Overage fee as set forth in Exhibit 1, and increase the capacity, or collection frequency of the 827 Collection Container to match documented service needs. At least ten (10) Business Days prior to increasing 828 the Collection Container size, or frequency of Collection, Contractor’s representative must also contact the 829 Service Recipient by phone, U.S. mail, e-mail or in person (which may be by Non-Collection Notice) to 830 ensure that Service Recipient has the appropriate level of service. Contractor must document overage issue 831 in the Waste Reporting System and notify City within ten (10) Business Days of any changes in Service 832 Recipient’s Collection Container size or collection frequency. The increased capacity or collection frequency 833 will remain in effect until Contractor determines that it is no longer needed to prevent overages, which may 834 be longer than the one Calendar Year stated above. Such determination will be in Contractor’s sole but 835 reasonable discretion and will be subject to the dispute resolution procedure set forth below. City will 836 consider, and pursue as applicable, appropriate legal remedies against offending Service Recipients in order 837 to secure discontinuance of the overages.
838 3.13.4 Tracking Occurrences of Solid Waste Overage. Regarding Articles 3.13.1 – 3.13.3, 839 after twelve (12) months have passed from the last applicable Solid Waste Overage occurrence, the next 840 Solid Waste Overage occurrence will be deemed a first Solid Waste Overage occurrence. 841 3.13.5 Disputes Over Container Overflow Charges. If Service Recipient disputes a Solid 842 Waste Overage charge or container size or collection frequency change within 30 days of the disputed 843 action, Contractor must temporarily halt Solid Waste Overage charge and/or increased Maximum Service 844 Rate resulting from increasing the Collection Container size or collection frequency, and Contractor may 845 request a ruling by the City Manager to resolve the dispute. During the pendency of any request, Contractor 846 may restore Container size or number, or collection frequency, to the prior levels. A request by Contractor 847 to the City Manager to rule on any such dispute must be filed within ten (10) Business Days of Contractor’s 848 halting of Solid Waste Overage charge, or increased Maximum Rate, and must include written 849 documentation and digital/visual evidence of ongoing overall problems. The City Manager may request a AR000044
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850 meeting (in person or phone) with both the Service Recipient and Contractor to resolve the dispute. 851 Following such a meeting, the City Manager will rule on the dispute within ten (10) Business Days, and the 852 City Manager’s decision on resolving the dispute between and Service Recipient will be final. If the City 853 Manager rules in favor of the Service Recipient, Contractor must credit the disputed charge or increased 854 Maximum Service Rate. If the City Manager rules in favor of Contractor, Contractor may charge Service 855 Recipient the prior halted Solid Waste Overage charge and/or increased Maximum Service Rate resulting 856 from increasing the Solid Waste Collection Container size or collection frequency and may follow the steps 857 in Article 4.04 for collection of delinquent accounts. 858 3.14 Ownership of Materials. Except as provided otherwise under Applicable Law, title to 859 Residential Waste, Commercial Solid Waste, Recyclable Materials, and Organic Waste will pass to 860 Contractor at such time as said materials are set out for Collection. 861 3.15 Spillage and Litter. Contractor may not litter premises in the process of providing Collection 862 Services or while its vehicles are on the road. Contractor must transport all materials Collected under the 863 terms of this Agreement in such a manner as to prevent the spilling or blowing of such materials from 864 Contractor's vehicles. Contractor must exercise all reasonable care and diligence in providing Collection 865 Services so as to prevent spilling or dropping of Residential Waste, Commercial Solid Waste, Recyclable 866 Materials, or Organic Materials and must immediately, at the time of occurrence, clean up such spilled or 867 dropped Residential Waste, Commercial Solid Waste, Recyclable Materials, or Organic Materials. 868 3.15.1 Except as provided in Article 8.02.3, Contractor is not responsible for cleaning up 869 sanitary conditions caused by the carelessness of the Service Recipient; however, Contractor must clean 870 up any material or residue that is spilled or scattered by Contractor or its employees. 871 3.15.2 Equipment oil, hydraulic fluids, spilled paint, or any other liquid or debris resulting 872 from Contractor’s operations or equipment repair must be covered immediately with an absorptive material 873 and removed from the street surface. Contractor must document spillage in the Waste Reporting System 874 and notify City’s stormwater compliance coordinator within two (2) hours of any spills resulting from 875 Contractor’s operations or equipment. When necessary, Contractor must apply a suitable cleaning agent 876 and cleaning technique to the street surface to provide adequate cleaning as approved by the City’s 877 stormwater compliance coordinator to be compliant with the City’s stormwater permit. 878 3.15.3 The above paragraphs notwithstanding, Contractor must clean up any spillage or 879 litter caused by Contractor within two (2) hours upon notice from the City. If City deems necessary, 880 Contractor must engage third-party environmental clean-up specialist to remove any equipment oil, hydraulic 881 fluids, or any other liquid or debris that remains on street after Contractor’s own clean-up efforts. If clean-up 882 is not conducted to satisfaction of City, City has right to engage environmental clean-up specialist to perform 883 additional clean-up work at the expense of Contractor. 884 3.15.4 In the event where damage to City streets is caused by a hydraulic fluid spill (i.e., 885 any physical damage in excess of a simple cosmetic stain caused by the spill), Contractor shall be 886 responsible for all repairs to return the street to the same condition as that prior to the spill. Contractor shall 887 be responsible for all clean-up activities related to the spill. Repairs and clean-up shall be performed in a 888 manner satisfactory to the City and at no cost to the City.

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889 3.15.5 To facilitate immediate cleanup, Contractor’s vehicles must always carry sufficient 890 quantities of petroleum absorbent materials along with a broom and shovel. 891 3.16 Green and Organic Waste Capacity. Contractor shall guarantee capacity for all City Green 892 and Organic Waste collected by Contractor for the term of the Agreement using a facility listed in Exhibit 893 13.
894 3.17 Regulations and Record Keeping. Contractor must comply with emergency notification 895 procedures required by applicable laws and regulatory requirements. All records required by regulations 896 must be maintained at Contractor’s facility. These records must include waste manifests, waste inventories, 897 waste characterization records, inspection records, incident reports, and training records. 898 3.18 Simi Valley Landfill Agreement. The City is party to that certain Waste Disposal Agreement 899 dated July 27, 1999 between the City and Waste Management of California, Inc. (“Landfill Agreement”) 900 permitting the City and its franchise haulers to dispose Solid Waste at the Simi Valley Landfill & Recycling 901 Center located in Simi Valley, California (“Simi Valley Landfill”). City shall take all actions necessary to 902 enforce or exercise the expressed and implied rights, remedies and benefits conferred to City and 903 Contractor under the Landfill Agreement, including but not limited to the right of Contractor to pay the lowest 904 permissible Tipping Fee under the Landfill Agreement, if Contractor elects to dispose Solid Waste at the 905 Simi Valley Landfill. Contractor shall provide reasonable assistance to City to apply for and secure the 906 lowest permissible Tipping Fee under the Landfill Agreement. For the purposes of this provision, “Tipping 907 Fee” shall mean the per-ton rate for the acceptance and disposal of Solid Waste charged by Waste 908 Management of California, Inc. or its affiliates, successors, or assigns to Contractor, pursuant to the terms 909 and conditions of Section 4.1 of the Landfill Agreement. 910 Article 4. Billing, Charges and Rates
911 4.01 Collection Services. Contractor is responsible for the billing and collection of payments for 912 all Collection Services. Contractor must charge Service Recipients the Maximum Service Rates established 913 in Exhibit 1 and such rates may be adjusted under this Agreement. 914 4.02 Partial Month Service. If, during a month, a Service Unit is added to or deleted from 915 Contractor’s Service Area, Contractor’s Billing will be pro-rated based on the weekly service rate (i.e. the 916 service rate established in Exhibit 1 divided by four (4) times the number of actual weeks in the month that 917 service was provided to the Service Unit).
918 4.03 Production of Invoices. At the City’s direction, the Contractor shall prepare, mail or 919 electronically transmit, and collect bills (or shall issue written receipts for cash payments) for Franchise 920 services provided by Contractor under this Agreement in advance but no less than six (6) times per year. 921 Billing shall not be permitted more than 15 days prior to the initiation of collection service period. Bills shall 922 not be subject to late notification or charges until 30 days following the closing day of the service period. If 923 made by mail, Billings shall be placed in an envelope at least 22 square inches in size and shall include a 924 return envelope for each billing period. Contractor shall include e-mail address on all billing notices and 925 shall accept payment by check, credit card or ACH debit. Billings shall include sufficient space on the 926 statement to accommodate up to 20 typed characters as specified by the City. City shall have the right to 927 revise the billing format, provided that reasonable notice is given. City may assume billing responsibilities 928 by providing no less than 180 days’ written notice to Contractor. Any direction of the City to undertake billing AR000046
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929 shall constitute a change in scope pursuant to Article 28.01. Where it has been determined that a Service 930 Recipient has overpaid for service for any reason, Contractor must provide the Service Recipient a credit 931 against future invoices or a refund (where the account is closing or as selected by the Service Recipient, 932 and where the refund amount exceeds the lesser of the regular invoicing amount or $200) within thirty (30) 933 days of such determination.
934 4.04 Delinquent Service Accounts. Through the Waste Reporting System, Contractor must 935 report to the Agreement Administrator, monthly, all Service Recipients who have received Collection 936 Service and whose account is over ninety (90) days past due. The provisions of Code Section 6-2.401(C) 937 and Exhibit 1 shall apply to billing generally, including penalties for late payments and collection of 938 delinquent accounts. The Contractor may discontinue service to a Customer who is delinquent in paying 939 for services rendered no earlier than 60 days after the last day of the billing period or that date on which 940 the billing for the service period is delivered to the customer, whichever is later. For this purpose, delivery 941 of the billing shall include the date such billing is deposited by to Contractor into the U.S. Mail or delivered 942 electronically. The Contractor shall notify the Customer and the City Manager or designee in writing of its 943 intent to discontinue service not less than 10 business days before such discontinuation shall occur. 944 4.05 Adjustments to Maximum Service Rates using Consumer Price Index (CPI). Beginning on 945 January 1, 2023, and annually thereafter, Contractor shall, subject to compliance with all provisions of this 946 Section, receive an annual adjustment to the Maximum Service Rates as set forth in Exhibit 1 to this 947 Agreement.
948 4.05.1 Annual CPI Calculation. The Maximum Service Rate adjustment shall be 949 calculated using the percentage change in the CPI between the base year, which shall be the prior 950 preceding 12-month period ending July 31, and the preceding 12-month period ending July 31. Therefore, 951 the first annual CPI adjustment (effective January 1, 2023) will be based on the percentage change between 952 the CPI for the base year, August 1, 2020 through July 31, 2021 (the prior preceding 12-month period), and 953 the CPI for the period of August 1, 2021 through July 31, 2022 (the preceding 12-month period). 954 4.05.1.1 CPI Financial Information. On or before September 15, 2022, and 955 annually thereafter on September 15 during the Term of this Agreement, Contractor shall deliver to City 956 financial information, including calculated CPI and adjusted rates, for the specific services performed under 957 this Agreement for the preceding Agreement Year. Such financial information shall be in the format as may 958 be mutually agreed on between the City and Contractor. Contractor’s failure to provide the financial 959 information shall not preclude the City from applying the CPI using the prior year’s financial data, or pro 960 forma data if no prior year financial data is available, if that application would result in a negative CPI. If 961 Contractor fails to submit the financial information required by September 15, the City at its sole and 962 reasonable discretion, may consider a late request for the annual CPI rate adjustment provided that 963 Contractor’s late request does not delay the City’s ability to adjust customer rates billed by City the 964 subsequent January 1st.
965 4.05.2 Rounding. Adjustments to the overall Maximum Service Rates shall be made only 966 in units of one cent ($0.01). Fractions of less than one cent ($0.01) shall not be considered in making 967 adjustments. All CPI indices shall be rounded at two (2) decimal places for the adjustment calculations.

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968 4.06 City Approval of Maximum Service Rates. On or before November 1, 2022, and annually 969 thereafter during the term of this Agreement, the City Representative shall notify Contractor of the CPI adjustments to the affected Maximum Service rates to take place on the subsequent January 1st 970 . City shall 971 take action on any changes in the Maximum Service Rates in accordance with the City’s Municipal Code. 972 4.07 Contractor payment for CPI review. Contractor shall be responsible for paying the cost of 973 reviewing or correcting the annual CPI adjustment if the City determines that Contractor has made 974 substantial errors and has not properly submitted or correctly calculated the CPI adjustment. 975 4.08 Annual Rate Cap on Maximum Service Rates. In any Calendar year that the calculation of 976 the CPI exceeds four percent (4.00%) or is between zero and one percent (1.00%), the total adjustment for 977 that year will equal four percent (4.0%) or one percent (1.0%), respectively, and no rollover amount will be 978 added to or subtracted from the rate adjustment percentage in the following year, or any subsequent year. 979 If the CPI is negative there will be no CPI adjustment for that year. 980 4.09 Extraordinary Adjustment to Maximum Service Rates. 981 4.09.1 If a Material Change in Law occurs after the date hereof, then CITY and 982 CONTRACTOR shall negotiate in good faith a reasonable and appropriate adjustment to Maximum Service 983 Rates sufficient to offset CONTRACTOR’s increased allowable costs of operation or reduced Gross Billings 984 resulting from the Material Change in Law. As an exception to the preceding sentence, CONTRACTOR 985 shall not be entitled to an adjustment in Maximum Service Rates with respect to the first 0.5% of annual 986 revenue in increased costs or decreased revenues incurred by CONTRACTOR resulting from the Material 987 Change in Law.
988 4.09.2 The Parties may negotiate and agree on the amount of any Maximum Service Rate 989 adjustment pursuant to this Section 4.09 without a detailed rate review. CONTRACTOR shall bear the 990 burden of justifying to CITY any adjustment due to a Material Change in Law and shall bear its own costs 991 of preparing its request for an adjustment and supporting documentation. CITY may request from 992 CONTRACTOR such further information as it reasonably deems necessary to fully evaluate 993 CONTRACTOR’S request and make its determination whether CONTRACTOR has satisfied its burden, 994 which determination shall not be unreasonably withheld. CITY shall notify CONTRACTOR of its 995 determination within ninety (90) calendar days of receipt of the written request and all other additional 996 information reasonably requested by CITY. Any such change will be implemented on the following January 997 1st, or within any other time frame agreed upon between CITY and CONTRACTOR. The adjustment in 998 Maximum Service Rates shall be approved by the City Council and memorialized in a written amendment 999 to this Agreement.
1000 4.10 Performance Standards for Adjustments to Rates. To be eligible for a CPI adjustment 1001 under Article 4.06 or an extraordinary adjustment under Article 4.10, Contractor must cure any material 1002 default under Article 23 of this Agreement for which City has provided notice to Contractor. 1003 4.11 Procedures in Event of Invalidation of Rate Adjustment. In the event that City is unable by 1004 operation of Applicable Law to approve or implement a rate increase under this Article 4, or some or all of 1005 the Maximum Service Rates are disallowed by operation of Applicable Law, Contractor will have the right, 1006 within thirty (30) days after notice of any such inability to approve or invalidation of an approved rate 1007 increase, to request, in writing, that City negotiate in good faith regarding reductions in programs, services, AR000048
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1008 or fees to compensate for any negative impact from the unapproved or invalidated rate increase. If City fails 1009 to commence negotiations in good faith or negotiations are not completed within forty-five (45) days 1010 following the date of receipt of Contractor’s request, either party may terminate this Agreement no earlier 1011 than one hundred and eighty (180) days after written notice to the other. 1012 Article 5.Diversion Requirements
1013 5.01 Minimum Requirements. City requires Contractor to achieve a minimum annual franchised 1014 diversion rate and CalRecycle diversion standards as described in Article 5.02 and 5.03 below. Contractor 1015 must provide documentation to City within forty-five (45) days of the end of each calendar year stating and 1016 supporting that calendar year's diversion rate as set forth in Section 20.04. 1017 5.01.1 On or about January 1, 2023, and not more often than once every two (2) years, 1018 Contractor may request waiver or revision of Franchised Diversion requirements. The parties agree to meet 1019 and confer, and negotiate in good faith regarding adjustments to the minimum diversion requirement based 1020 on waste characterization data provided by Agreement, trends in source reduction, the availability of 1021 permitted facilities that are capable of processing material to achieve the required levels of diversion, the 1022 availability of commercially viable markets for Recyclable Materials or Organic Waste, transportation 1023 constraints, embargoes, the impact of scavenging, the number and extent of exempt Organic Waste 1024 customers pursuant to Section 3.04.3 (AB 3606), increasing producer responsibility requirements, 1025 restrictions on single-use plastics, and the passage of any other legislation that significantly impacts the 1026 waste stream mix. City may not unreasonably withhold approval of the waiver or revision provided that 1027 Contractor has presented sufficient documentation for its request and the waiver does not result in the 1028 City’s non-compliance with State diversion mandates. 1029 5.01.2 If City fails to comply with CalRecycle diversion standards due to Contractor’s 1030 failure to implement the diversion and public education programs provided for in this Agreement, Contractor 1031 is subject to an Administrative Charge as specified in Exhibit 9 and Contractor must submit a corrective 1032 action plan to assist City to comply with Public Resources Code Section 41780 and other Applicable Laws by March 15th 1033 following the year the diversion requirements were not met. Contractor’s corrective action 1034 plan is subject to approval by the Agreement Administrator, and to be approved, must constitute a good 1035 faith corrective action plan to allow City to comply with Public Resources Code section 41780 and other 1036 Applicable Laws. Implementation of the corrective action plan will be at Contractor’s sole cost and expense. 1037 If Contractor fails to submit or implement a corrective action plan acceptable to the City, Contractor may be 1038 subject to both an Administrative Charge and an Administrative Penalty as specified in Exhibit 9. 1039 5.01.3 If Contractor fails to achieve a minimum annual Franchised Diversion Rate as 1040 described in Section 5.03, Contractor is subject to an Administrative Charge specified in Exhibit 9 and must submit a corrective action plan by March 15th 1041 following the year the diversion requirements were not met. 1042 Contractor’s corrective action plan is subject to approval by the Agreement Administrator, and to be 1043 approved, must constitute a good faith corrective action plan to meet the Franchised Diversion Rate. 1044 Implementation of the corrective action plan will be at Contractor’s sole cost and expense. If Contractor 1045 fails to submit or implement a corrective action plan acceptable to the City, Contractor may be subject to 1046 both an Administrative Charge and an Administrative Penalty as specified in Exhibit 9. Provided that 1047 Contractor has implemented all required Contractor diversion and public education programs required AR000049
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1048 under this Agreement and has submitted and implemented a corrective action plan acceptable to the City, 1049 Contractor’s failure to meet the Franchised Division requirements shall not constitute an event of default 1050 under this Agreement.
1051 5.01.4 If Contractor fails to meet its Franchised Diversion requirements or if City fails to 1052 comply with CalRecycle diversion standards, and Contractor has implemented all required Contractor 1053 diversion programs, the City may direct Contractor to modify its programs or implement new diversion 1054 programs. Any such modification of Contractor’s existing diversion programs or addition of new diversion 1055 programs done at the City’s request would be in accordance with Section 28.01. 1056 5.01.5 Notwithstanding any other provision of this Agreement to the contrary, where 1057 CalRecycle has determined that there are no commercially viable markets for a specific type of Recyclable 1058 Material(s), or with written notice to City, Contractor is unable to identify a market for one or more Recyclable 1059 Material(s) despite the exercise of commercially reasonable efforts to process and market the material, and 1060 determines, in the interest of safeguarding public health, to dispose of the Recyclable Material(s), such a 1061 determination shall not constitute a failure to implement service, a failure to implement a program, or an 1062 event of default hereunder.
1063 5.02 Diversion Rate Calculation.
1064 5.02.1 Franchised Diversion Rate Calculation. For purposes of determining whether 1065 Contractor has met its Franchised Diversion requirements under this Agreement, City and Contractor agree 1066 the annual Franchised Diversion rate will be calculated using the following formula: “the tons of materials 1067 Collected by Contractor from Collection Services in City that are delivered to a Materials Recovery Facility, 1068 Organic Waste Processing Facility, or any other processing facility approved by City, or that are otherwise 1069 handled in a manner that counts as diversion under applicable CalRecycle regulations (in each case, net 1070 of all residue from processing and net of materials processed for diversion but landfilled as a result of 1071 unavailable markets), divided by the total tons of materials Collected in the City by Contractor from the 1072 provision of Collection Services in each Calendar Year.” 1073 5.02.2 CalRecycle Diversion Requirement Calculation. For purpose of determining 1074 whether Contractor has met its CalRecycle diversion requirements under this Agreement, City and 1075 Contractor agree the CalRecycle diversion requirement rate will be calculated using the following formula:
1076 “Disposal Rate = City’s Pounds Per Person Per Day generated disposal divided by two times CalRecycle’s 1077 Target disposal rate for the City (Pounds Per Person Per Day). CalRecycle’s Diversion Rate = 1 – Disposal 1078 Rate.”
1079 5.03 Contractor’s Diversion Requirements. For purposes of Article 5, Contractor’s Franchised 1080 Diversion requirements are:
1081 5.03.1 For Calendar Years 2022, 2023, and 2024, the minimum annual Franchised 1082 Diversion Rate requirement will be fifty percent (50%) and CalRecycle Diversion standards will be fifty-five 1083 percent (55%).
1084 5.03.2 For Calendar Years 2025 and 2026, the minimum annual Franchised Diversion 1085 Rate requirement will be fifty-five percent (55%) and CalRecycle Diversion standards will be sixty-five 1086 percent (65%).

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1087 5.03.3 For Calendar Years 2027 and 2028, the minimum annual Franchised Diversion 1088 rate requirement will be sixty percent (60%) and CalRecycle Diversion standards will be seventy percent 1089 (70%). For Calendar Years 2029, and for each Calendar Year thereafter during the term of this Agreement, 1090 the minimum annual Franchised Diversion rate requirement will be sixty percent (60%) and CalRecycle 1091 Diversion standards will be seventy-five percent (75%). 1092 5.04 Warranties and Representations. Contractor warrants that it is aware of and familiar with 1093 City's waste stream, and that it has the ability to and will provide sufficient programs and services designed 1094 to ensure City will meet or exceed the diversion requirements as set forth in this Article 5, as well as the 1095 diversion requirements of the Applicable Laws (including, without limitation, amounts of Solid Waste to be 1096 diverted, time frames for diversion, and any other requirements) (including AB 939, AB 341, AB 1826, AB 1097 1594, SB 1016, and SB 1383, and all amendments and related subsequent legislation), and that it will do 1098 so without imposing any costs or fees other than those set forth on Exhibit 1, except as provided in Section 1099 28.01.1.
1100 5.05 Mutual Cooperation. City and Contractor will reasonably cooperate in good faith with all 1101 efforts by each other to meet City's diversion and other compliance requirements imposed by AB 939, AB 1102 341, AB 1826, AB 1594, SB 1016, and SB 1383 and other Applicable Laws, and to meet Contractor’s 1103 obligations under this Article 5. In this regard, City's obligations include, without limitation, making such 1104 petitions and applications as may be reasonably requested by Contractor for time extensions in meeting 1105 diversion goals, or other exceptions from the terms of Applicable Laws, and to agree to authorize such 1106 changes to Contractor’s Recycling, Organic Waste, or Solid Waste programs as may be reasonably 1107 requested by Contractor in order to achieve the minimum requirements of this Article 5. 1108 5.06 Guarantee. Except for programs currently required by Applicable Law but not set forth in 1109 this Agreement, or programs Contractor is expressly instructed by City not to implement, or services which 1110 a Service Recipient refuses to accept, Contractor shall implement the diversion programs set forth in this 1111 Agreement such that: (i) Contractor and City will at all times be in compliance with the requirements of the 1112 Applicable Laws applicable to them including specifically AB 939, AB 341, AB 1826, AB 1594, SB 1016, 1113 and SB 1383, and (ii) City will meet or exceed the diversion requirements (including, without limitation, 1114 amounts of Solid Waste to be diverted, time frames for diversion, and any other requirements) set forth in 1115 this Article 5 and the Applicable Laws including AB 939, AB 341, AB 1826, AB 1594, SB 1016, and SB 1116 1383, and all amendments thereto (subject to Section 28.01.1). In this regard Contractor agrees that it will, 1117 in addition to any other Agreement requirement, at its sole cost and expense:
1118 5.06.1 Assist City in responding to inquiries from CalRecycle or any other regulatory 1119 agency;
1120 5.06.2 Assist City in preparing for, and participating in, CalRecycle’s biannual review of 1121 City's SRRE pursuant to Public Resources Code section 41825; 1122 5.06.3 Assist City in applying for any extension, including under Public Resources Code 1123 section 41820, if so directed by City;
1124 5.06.4 Assist City in any hearing conducted by CalRecycle, or any other regulatory 1125 agency, relating to City's compliance with the Applicable Laws including AB 939, AB 341, AB 1826, AB 1126 1594, SB 1016, and SB 1383;
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1127 5.06.5 Assist City with the development of and implement a public awareness and 1128 education program that is consistent with City's SRRE and Household Hazardous Waste Element, as well 1129 as any related requirements of the Applicable Laws; 1130 5.06.6 Provide City with Recycling, source reduction, and other technical assistance as 1131 may be needed to comply with the Applicable Laws including AB 939, AB 341, AB 1826, AB 1594, SB 1016, 1132 and SB 1383;
1133 5.06.7 Be responsible for and pay, any fees, penalties or other costs imposed against City 1134 by CalRecycle, and indemnify and hold harmless City from and against any fines, penalties, or other 1135 liabilities, levied against it for violation of the diversion requirements, set forth in the Applicable Laws, 1136 including AB 939, AB 341, AB 1826, AB 1594, SB 1016, and SB 1383, or for violation of any other provision 1137 of the Applicable Laws, arising from or in any way related to Contractor's performance of its obligations 1138 under this Agreement.
1139 Article 6.Service Unit Types
1140 6.01 Service Units. Service Units include all the following categories of premises which are in 1141 the Service Area as of January 1, 2022 and all such premises which may be added to the Service Area by 1142 means of annexation, new construction, or as otherwise set forth in this Agreement during term of this 1143 Agreement:
1144 6.01.1 SFD Service Units. Services are specified in Section 7 below. 1145 6.01.2 MFD and Mixed-use Development (MXD) Service Units. Where individual units 1146 within an MFD are each served by Carts, services are defined under Section 9 (MFD-I Service) below. 1147 Where the MFD complex is served by centralized Collection Containers, service is defined under Section 1148 10 (MFD-C) below. MFX complex service is defined under Section 11. 1149 6.01.3 Commercial Service Units
1150 6.01.4 City Service Units
1151 6.01.5 Any question as to whether a premise falls within one of these categories will be 1152 determined by the Agreement Administrator and the determination of the Agreement Administrator will be 1153 final.
1154 6.02 Service Unit Changes. City and Contractor acknowledge that during the term of this 1155 Agreement it may be necessary or desirable to add or delete Service Units for which Contractor will provide 1156 Service.
1157 6.02.1 Additions and Deletions. Contractor must provide services described in this 1158 Agreement to new Service Units in Contractor’s Service Area within five (5) Work Days of receipt of notice 1159 from City or the new Service Unit to begin such Service. 1160 6.03 Annexation. If during term of the Agreement, additional territory within or adjacent to the 1161 Contractor’s Service Area is acquired by City through annexation, subject to the requirements of Public 1162 Resources Code section 49520, Contractor agrees to provide Collection Services in such annexed area in 1163 accordance with the provisions and Maximum Service Rates set forth in this Agreement. Such Collection AR000052
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1164 Services must begin within five (5) Work Days of receipt of written notice from City. Contractor may not 1165 begin Collection Service without written authorization from City. 1166 6.04 Route Map Update. Contractor must revise the Service Unit route maps to show the 1167 addition of Service Units added due to annexation and must provide such revised maps to the Agreement 1168 Administrator as requested.
1169 Article 7. SFD Service
1170 7.01 SFD Conditions of Service. Except as set forth below, Contractor must provide SFD 1171 Collection Services to all SFD Units in the Service Area including MFD-I. The SFD Services are governed 1172 by the following terms and conditions:
1173 7.01.1 Curb Service. Contractor must provide SFD Collection Service to all SFD Service 1174 Units in the Service Area whose SFD Solid Waste is properly containerized in Garbage Carts, Recyclable 1175 Materials are properly containerized in Recycling Carts, except as set forth in Section 7.03.1; Organic 1176 Wastes are properly containerized in Organic Waste Carts, except as set forth in Sections 7.04.3 and 1177 7.04.4, where the Garbage, Recycling, and Organic Waste carts have been placed within three (3) feet 1178 of the curb, swale, paved surface of the public roadway, closest accessible roadway, or other such 1179 location agreed to by Contractor and Service Recipient, that will provide safe and efficient accessibility to 1180 Contractor's Collection crew and vehicle.
1181 7.01.2 Bundled SFD Service. A weekly Bundled SFD Solid Waste Collection Service 1182 system will be utilized with one (1) 64-Gallon Garbage Cart (with the option to downsize to a 32- or upsize 1183 to a 96-Gallon Garbage Cart), one (1) 64-Gallon Recycling Cart (with the option to downsize to upsize to 1184 a 96-Gallon Recycling Cart), and one (1) 96-Gallon Organic Waste Cart as part of the base SFD Solid 1185 Waste Collection Service. Pricing for upsizing or downsizing Carts, and additional Carts, relative to the 1186 base Bundled Service are included in Exhibit 1. SFD Service Recipients may add Green Waste only Bins 1187 to their SFD Service at pricing included in Exhibit 1. The actual configuration of Garbage, Recycling and 1188 Organic Waste Cart sizes shall be at the option of the Service Recipient. 1189 7.01.3 On-Premises Service. Notwithstanding any term or definition set forth in this 1190 Agreement, Contractor must provide Collection of SFD Solid Waste, Recyclable Materials, and Organic 1191 Waste on the SFD Service Recipients premises to an SFD Service Unit as follows. 1192 At no additional cost to the SFD Service Unit:
1193 7.01.3.1 SFD Service Units where all adult Service Recipients residing therein have 1194 disabilities that prevent them from setting their Garbage, Recycling or Organic Waste Cart at the curb for 1195 Collection, and if a request for on-premises service has been made. 1196 7.01.3.2 SFD Service Units where topography, steep driveways, below grade 1197 dwellings, or limited access to public streets that prevents the SFD Service Recipient from setting their 1198 Garbage, Recycling or Organic Waste Cart at the curb for Collection, as determined by the City and agreed 1199 by the Contractor, and if a request for on-premises service has been made. 1200 At an additional cost to the SFD Service Unit:

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1201 7.01.3.3 SFD Service Units inaccessible by standard 3 or 4 axel Collection Vehicles 1202 as determined by the Contractor and agreed by the City. Stinger/scout truck services shall be provided for 1203 the retrieval of Collection Containers from locations with accessibility constraints that make Containers 1204 difficult or impossible to access using regular trash collection trucks. 1205 7.01.3.4 Contractor must offer “push services” to SFD Service Recipients other 1206 than those listed above on a subscription basis upon request for the Service Rate set forth in Exhibit 1. Push 1207 services include, but are not limited to, dismounting from the Collection Vehicle, moving the Collection 1208 Containers from their storage location for Collection and returning the Collection Containers back to their 1209 storage location.
1210 Contractor must provide on-premises Collection Service on the same Work Day that curbside 1211 Collection would otherwise be provided to the SFD Service Unit. 1212 7.01.4 Frequency and Scheduling of Service. Except as set forth in Section 7.10, SFD 1213 Collection Service must be provided one (1) time per week on a scheduled route basis. SFD Collection 1214 Service must be scheduled so that all Service Units receive Solid Waste Collection Service, Recycling 1215 Collection Service, and Organic Waste Collection Service on the same Work Day. SFD Collection Service 1216 must be provided, commencing no earlier than 7:00 a.m. and terminating no later than 7:00 p.m., Monday 1217 through Friday, except for Holidays in accordance with Section 3.09. The hours, day, or both of Collection 1218 may be extended due to extraordinary circumstances or conditions with the prior verbal or written consent 1219 of the Agreement Administrator.
1220 7.01.5 Manner of Collection. The Contractor must provide Collection Service with as 1221 little disturbance as possible and must leave any Garbage, Recycling or Organic Waste Cart in an upright 1222 position at the same point it was Collected without obstructing alleys, roadways, driveways, sidewalks or 1223 mail boxes. Contractor’s employees providing Collection Service must follow the regular walk for 1224 pedestrians while on private property and may not trespass nor cross property to the adjoining premises 1225 unless the occupant or owner of both properties has given permission. Care should be taken to prevent 1226 damage to property, including flowers, shrubs, and other plantings. 1227 7.01.6 Replacement of Carts. Contractor’s employees must take care to prevent 1228 damage to Carts by unnecessary rough treatment. However, any Cart damaged by the Contractor must 1229 be replaced by Contractor, at Contractor's expense, within five (5) Work Days at no cost or inconvenience 1230 to the Service Recipient.
1231 7.01.6.1 Upon notification to Contractor by City or a Service Recipient that the 1232 Service Recipient’s Cart(s) has been stolen or damaged beyond repair through no fault of Contractor, 1233 Contractor must deliver a replacement Cart(s) to such Service Recipient within five (5) Work Days. 1234 Contractor must maintain records documenting all Cart replacements occurring and report through the 1235 Waste Reporting System monthly.
1236 7.01.6.2 Each Service Recipient is entitled to the replacement of one (1) lost, 1237 destroyed, or stolen Cart every ten (10) years during the life of this Agreement at no cost to the Service 1238 Recipient. Except in the case of a Cart that must be replaced because of damage caused by Contractor or 1239 in the case where Contractor elects to replace a Cart rather than repair it on-site, Contractor will be 1240 compensated for the cost of those replacements in excess of one (1) per type of Cart per Service Recipient AR000054
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1241 during the term of the Agreement, in accordance with the “Cart Exchange” Service Rate set forth in Exhibit 1242 1, or as may be adjusted by the City from time to time as provided under this Agreement. 1243 7.01.6.3 Contractor understands and agrees that this provision is intended to be 1244 applied on a per Cart type, individual Service Recipient basis and accordingly each Service Recipient could 1245 receive up to three (3) replacement Carts, one (1) of each type, every ten (10) years during the term of the 1246 contract.
1247 7.01.6.4 New carts. At the start of this Agreement, Contractor must supply new 1248 carts which comply with Collection Container specifications in Exhibit 3. If any changes to these 1249 specifications are adopted after the Effective Date that results in Contractor being required to replace 1250 Collection Containers before they have been fully depreciated, Contactor will be eligible for additional 1251 compensation in accordance with Section 4.09.
1252 7.01.6.5 Repair of Garbage, Recycling and Organic Waste Carts. Contractor is 1253 responsible for the repair of Carts, including but not be limited to, hinged lids, wheels and axles. Within five 1254 (5) Work Days of notification by the City or a Service Recipient of the need for such repairs, Contractor must 1255 repair the Cart or if necessary, remove the Cart for repairs and deliver a replacement Cart to the Service 1256 Recipient.
1257 7.01.6.6 Cart Exchange. Upon notification to Contractor by City or a Service 1258 Recipient that a change in the size of a Cart is requested, Contractor must deliver such Cart to such Service 1259 Recipient within five (5) Work Days. Each SFD Service Unit is eligible to receive one (1) free Cart exchange 1260 per Calendar Year during the term of this Agreement for moving to a larger Cart size. Each SFD Service 1261 Unit is eligible to receive unlimited Cart exchanges per Calendar Year during the term of this Agreement for 1262 moving to a smaller Cart size. Accordingly, Contractor will be compensated only for the cost of those 1263 exchanges in excess of one (1) per Calendar Year for those Service Units receiving larger Cart sizes, in 1264 accordance with the “Cart Exchange” service rate as set forth in Exhibit 1 or as may be adjusted this 1265 Agreement.
1266 7.01.6.7 Additional Cart Request. Upon notification to the Contractor by City or a 1267 Service Recipient that additional Carts for Garbage, Recyclable Materials, or Organic Waste are requested, 1268 Contractor shall deliver such Carts to such Service Recipient within five (5) Work Days, at the rate set forth 1269 in Exhibit 1.
1270 7.01.6.8 Ownership of Carts. Ownership of Carts is vested in the Contractor. 1271 7.02 SFD Solid Waste Collection Service. This service is governed by the following terms and 1272 conditions:
1273 7.02.1 Non-Collection. Contractor is not required to Collect any Residential Garbage 1274 that is not placed in a Garbage Cart. In the event of non-collection, Contractor will follow the steps set 1275 forth in Section 3.13.
1276 7.02.2 Disposal Facility. Except as set forth below, all Residential Solid Waste Collected 1277 as a result of performing Solid Waste Collection Services must be transported to, and disposed of, at the 1278 Disposal Facility. In the event the Disposal Facility is closed on a Work Day, Contractor must transport 1279 and dispose of the Residential Solid Waste at another legally permitted disposal facility. Failure to comply AR000055
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1280 with this provision will result in the levy of a penalty as specified in Exhibit 9 and may result in Contractor 1281 being in default under this Agreement. City has the right to designate Disposal Facility and agrees to 1282 adjust Maximum Service Rates to reflect City’s exercise of flow control rights. 1283 7.03 SFD Recycling Service. This service is governed by the following terms and conditions:
1284 7.03.1 Overages. Corrugated cardboard that will not fit inside the Recycling Cart may be placed beside the Recycling Cart if flattened during the three-week period beginning December 26 1285 th 1286 each year during the term of this Agreement.
1287 7.03.2 Recycling - Improper Procedure. The Contractor is not required to Collect 1288 Recyclable Materials if the Service Recipient does not segregate the Recyclable Materials from Solid 1289 Waste or Organic Waste. Furthermore, Contractor is not required to Collect Recyclable Materials that are 1290 contaminated through commingling with Solid Waste or Organic Waste. To address contamination, 1291 Contractor must follow the steps set forth in Section 3.12. 1292 7.03.3 Materials Recovery Facility. Except as provided in Section 3.12, all Recyclable 1293 Materials collected as a result of performing recycling services must be delivered to the Materials 1294 Recovery Facility. Failure to comply with this provision will result in the levy of a penalty as specified in 1295 Exhibit 9 and may result in Contractor being in default under this Agreement. All expenses related to 1296 materials processing and marketing will be the sole responsibility of Contractor. City has the right to 1297 designate Materials Recovery Facility and agrees to adjust Maximum Service Rates to reflect City’s 1298 exercise of flow control rights.
1299 7.03.4 Move In/Out Collection Service. Within three (3) months of opening a new 1300 account, at no additional charge, each SFD customer may request that Contractor provide one on-call 1301 Move-In/Out Recyclable Material Collection Service for recyclable packaging materials such as flattened 1302 cardboard boxes, and bundled newspaper and packaging foam. This will be offered as a one-time service 1303 for each new account. This service shall only include Recyclable Materials, and in the event that the 1304 Service Recipient includes Garbage in the materials set out for Collection by Contractor, this service shall 1305 be counted as one of the SFD Service Recipient’s free annual Large Item Collections as set forth in 1306 Section 7.05.
1307 7.03.5 Recycling - Changes to Services. Should changes in Applicable Law arise that 1308 necessitate any additions or deletions to the services described in this Section 7.03, including the type of 1309 items included as Recyclable Materials, the parties will negotiate any necessary cost changes and will 1310 enter into an Agreement amendment covering such modifications to the services to be performed and 1311 the compensation to be paid in accordance with Section 28.01.1 before undertaking any changes or 1312 revisions to such services.
1313 7.04 SFD Organic Waste Collection Service. This service is governed by the following terms 1314 and conditions:
1315 7.04.1 Organic Waste Processing Services. Contractor must ensure that all Organic 1316 Waste Collected pursuant to this Agreement is diverted from the landfill in accordance with AB 939, AB 1317 1826, AB 1594, SB 1016 and SB 1383, and any subsequent or other Applicable Law. Contractor must 1318 ensure that the Organic Waste Collected pursuant to this Agreement is not disposed of in a landfill, except AR000056
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1319 for residue resulting from processing. If the organics processing facility accepts bagged organic waste 1320 (where bags are biodegradable or otherwise), then Contractor is obligated to accept bagged Organic 1321 Waste.
1322 7.04.2 Organic Waste Processing Facility. Contractor must deliver all Collected Organic 1323 Waste to a fully permitted Organic Waste Processing Facility or a fully permitted Organic Waste transfer 1324 station, that has been agreed upon by the City. All expenses related to Organic Waste processing and 1325 marketing will be the sole responsibility of Contractor. Failure to comply with this provision will result in 1326 the levy of a penalty as specified in Exhibit 9 and may result in Contractor being in default under this 1327 Agreement. City has the right to designate Organic Waste Processing Facility and agrees to adjust 1328 Maximum Service Rates to reflect City’s exercise of flow control rights. 1329 7.04.3 Holiday Tree Collection. Contractor must Collect Holiday Trees set out at the curb for Collection during the three-week period beginning December 26th 1330 each year during the term of 1331 this Agreement. Contractor must deliver the Collected Holiday Trees to an appropriate facility for 1332 processing. This annual service will be provided at no additional charge to the Service Recipient. 1333 Contractor is not required to divert Holiday Trees with tinsel, flocking or ornaments. 1334 7.04.4 Non-Collection. Contractor is not required to Collect Organic Waste if the Service 1335 Recipient does not segregate the Organic Waste from Solid Waste or Recyclable Materials. Furthermore, 1336 Contractor is not required to Collect Organic Wastes that are contaminated through commingling with 1337 Solid Waste or Recyclable Materials. Contractor will address contamination in accordance with Section 1338 3.12.
1339 7.04.5 Home Compost Bins. Contractor shall store, promote, and distribute a maximum 1340 of 500 home compost bins per Calendar Year to be used by Service Recipients to compost Organic 1341 Waste. City is responsible for purchase of home compost bins delivered to Contractor’s place of storage. 1342 7.05 SFD Large Item Collection Service. This service is governed by the following terms and 1343 conditions:
1344 7.05.1 Conditions of Service. Contractor must provide Large Item Collection Service to 1345 all SFD Service Units in the Service Area whose Large Items have been placed within three (3) feet of 1346 the curb, swale, paved surface of the public roadway, closest accessible roadway, or other such location 1347 agreed to by Contractor and Service Recipient, that will provide safe and efficient accessibility to 1348 Contractor's Collection crew and vehicle. Up to two (2) times per Calendar Year each Service Recipient 1349 is entitled to receive large item disposal amounting to a combined annual maximum of the equivalent of 1350 (a) 1.5 cubic yards of uncontainerized Solid Waste, or (b) six (6) large items, or (c) ten (10) 32-gallon 1351 bags at no additional cost and expense. For subsequent collection in any Calendar Year, the Contractor 1352 shall receive compensation from the customer at the rate for such service as set in Exhibit 1. 1353 7.05.2 Frequency of Service. Large Item Collection Service will be provided on the next 1354 regular Collection day if the request is received at least two (2) Work Days in advance of the next regular 1355 Collection day. The Service Recipient may not intentionally commingle residential Large Items with other 1356 Residential Waste.

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1357 7.05.3 Large Items Containing Freon. In the event Contractor Collects Large Items that 1358 contain Freon, Contractor must handle such Large Items in a manner such that the Large Items are not 1359 subject to regulation as hazardous waste under applicable State and Federal laws or regulations. 1360 7.05.4 Maximum Reuse and Recycling. Contractor must dispose of Large Items 1361 collected from Service Units pursuant to this Agreement in accordance with the following hierarchy:
1362 7.05.4.1 Reuse as is (where energy efficiency is not compromised) 1363 7.05.4.2 Disassemble for reuse or Recycling
1364 7.05.4.3 Recycle
1365 7.05.4.4 Disposal
1366 7.05.5 Disposal of Large Items. Contractor may not landfill such Large Items unless the 1367 Large Items cannot be reused or recycled.
1368 7.05.6 City Direction of Large Items. City reserves the right to direct Contractor to take 1369 specific types of Large Items Collected pursuant to this Section to designated sites not more than twenty 1370 (20) miles from City Hall for the purpose of reuse or recycling at no cost. Contractor has no obligation to 1371 dispose of the Large Item residue remaining at the directed site or sites after scavengers and recyclers 1372 have removed reusable or recyclable Large Items.
1373 Article 8. Commercial Service
1374 8.01 Commercial Conditions of Service. Except as set forth below, Contractor must provide 1375 Commercial Collection Services to all Commercial Service Units in the Service Area, including MFD-C and 1376 MXD Service Units and City Service Units. This service is governed by the following terms and conditions:
1377 8.01.1 Provision of Service. Contractor must provide Commercial Solid Waste Collection 1378 Service, Commercial Recycling Service and Commercial Organic Waste Collection Service to all 1379 Commercial Service Units Service Units in the Service Area whose Solid Waste, Recyclable Materials, and 1380 Organics Waste are properly containerized in Collection Containers as appropriate where the Collection 1381 Containers are accessible as set forth in Section 8.01.4. Contractor must offer Solid Waste, Recyclable 1382 Materials, and Organic Waste Carts in 32, 64, and 96-gallon sizes. Contractor must offer Solid Waste and 1383 Recyclable Materials Bins in 1, 2, 3, 4, and 6-cubic yard sizes (stab only, no wheels or maneuvering required 1384 for 6 cubic yard sized Bins) and 1, 1.5, 2, 3 and 4-cubic yard sizes for Organic Waste Bins. Contractor must 1385 offer Roll-off Containers in 10, 20, 30, and 40-cubic yard sizes, and Compactors. The size of the container 1386 and the frequency (above the minimum) of collection will be determined between the Service Recipient and 1387 Contractor. However, the size and frequency must be sufficient to provide that no Solid Waste, Recyclable 1388 Materials, or Organic Waste need be placed outside the Collection Container. The base Solid Waste 1389 Collection Service will include Commercial Recycling Service as described in Section 8.03.2 below, and 1390 Commercial Organic Waste Collection Service as described in Section 8.04.2 below. 1391 8.01.2 Bundled Service. For the Commercial Solid Waste Collection Service system, the 1392 City wishes to utilize Garbage Bins as requested by the Commercial Service Recipient, and including at no 1393 additional cost the equivalent volume of recycling, and one (1) 32-Gallon Organic Waste Cart per 2 cu yd 1394 of weekly trash (garbage plus recycling) service as part of the base bundled Commercial Collection Service.

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1395 The actual configuration of Recycling and Organic Waste Cart and/or Bin sizes shall be based on the total 1396 equivalent volume and configured in a manner determined by the Service Recipient in consultation with the 1397 Contractor. Additional services may be requested by the Commercial Service Recipient. To be exempted 1398 from Commercial Recycling Service or Commercial Organic Waste Collection Service, Service Recipient 1399 must apply for exemption to the Contractor. All such exemption applications must be reported in the Waste 1400 Reporting System and approved by the City.
1401 8.01.3 Hours of Collection. Commercial Collection Service must be provided, 1402 commencing no earlier than 7:00 a.m., and terminating no later than 7:00 p.m., Monday through Saturday, 1403 except for Holidays. There will be no Commercial Collection Service on Sundays. The hours, day, or both 1404 of Collection may be extended due to extraordinary circumstances or conditions with the prior verbal or 1405 written consent of the Agreement Administrator.
1406 8.01.4 Accessibility. Contractor must Collect all Collection Containers that are readily 1407 accessible to Contractor's crew and vehicles and not blocked. However, Contractor must provide “push 1408 services” and “stinger/scout truck services” as necessary upon request during the provision of Commercial 1409 Collection Services for the Service Rate set forth in Exhibit 1. Push services include, but are not limited to, 1410 dismounting from the Collection Vehicle, moving the Collection Containers from their storage location for 1411 Collection and returning the Collection Containers back to their storage location. Stinger/scout truck 1412 services provide for the retrieval of Collection Containers from locations with accessibility constraints that 1413 make Containers difficult or impossible to access using regular trash collection trucks. 1414 8.01.5 Manner of Collection. Contractor must provide Commercial Collection Service with 1415 as little disturbance as possible and must leave any Collection Container at the same point it originally 1416 located without obstructing alleys, roadways, driveways, sidewalks or mail boxes. 1417 8.01.5.1 Purchase and Distribution of Collection Containers for New 1418 Commercial Service Units. Contractor must also distribute newly-painted Collection Containers as specified 1419 in Exhibit 4 to new Commercial and MFD/MXD Service Units that are added to Contractor’s Service Area 1420 during the term of this Agreement. The size and mix of the Collection Containers will be in accordance with 1421 the service agreement obtained by Contractor as set forth in this Agreement and the distribution must be 1422 completed within five (5) Work Days of receipt of the request for service. 1423 8.01.6 Replacement of Collection Containers. Contractor’s employees must avoid 1424 damage to Collection Containers by unnecessary rough treatment. Any Collection Container damaged by 1425 the Contractor must be replaced by Contractor, at Contractor's expense, within five (5) Work Days at no 1426 cost or inconvenience to the Service Recipient.
1427 8.01.6.1 Each Commercial Service Unit is entitled to the replacement of 1428 one (1) lost, destroyed, or stolen Garbage, Recycling, and Organic Collection Container during the initial 1429 term of this Agreement at no cost to the Service Unit. Accordingly, Contractor will be compensated for the 1430 cost of those replacements in excess of one (1) Garbage, Recycling, and Organic Collection Container per 1431 Commercial Service Unit during the initial term of the Agreement, in accordance with the “Collection 1432 Container Exchange” Service Rate, as appropriate, set forth in Exhibit 1. Contractor must deliver a 1433 replacement Collection Container to such Service Unit within five (5) Work Days.

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1434 8.01.7 Repair of Collection Containers. Contractor is responsible for repair of Collection 1435 Containers. Within five (5) Work Days of notification by City or a Service Recipient of the need for such 1436 repairs, Contractor must repair the Collection Container or if necessary, remove the Collection Container 1437 for repairs and deliver a replacement Collection Container to the Service Recipient. Collection Container 1438 repair also includes the removal of graffiti from the Collection Container. 1439 8.01.8 Collection Container Exchange. Upon notification to Contractor by City or a Service 1440 Recipient that a change in their Collection Containers is required, Contractor must deliver such Collection 1441 Containers to such Service Recipient within five (5) Work Days. Each Commercial Service Unit is eligible 1442 to receive one (1) free Collection Container exchange per Calendar Year during the term of this Agreement. 1443 Contractor is allowed to charge the Service Unit for the cost of those exchanges in excess of one (1) 1444 Collection Container exchange per Calendar Year, in accordance with the appropriate “Collection Container 1445 Exchange” service rate set forth in Exhibit 1 as may be adjusted by City under this Agreement. Additional 1446 Collection Containers or different size Collection Containers are subject to the applicable Service Rate set 1447 forth in Exhibit 1.
1448 8.01.9 Newly painted Bins and Roll-off Containers. At the start of this Agreement, 1449 Contractor must supply newly-painted Bins and Roll-off Containers in good condition which comply with 1450 Collection Container specifications in Exhibit 4. If any changes to these specifications are adopted after the 1451 Effective Date that results in Contractor being required to replace Collection Containers before they have 1452 been fully depreciated, Contactor will be eligible for additional compensation in accordance with Section 1453 28.01.1.
1454 8.01.10 Ownership of Collection Containers. Ownership of Collection Containers 1455 distributed by Contractor is vested in Contractor. 1456 8.01.11 Cleaning of Collection Containers. Once each Calendar Year, if requested by the 1457 Commercial Service Unit, Contractor must clean all Collection Containers at the Commercial Service Unit’s 1458 premises or must replace the dirty Collection Containers with clean Collection Containers. Any Collection 1459 Container cleanings must be done in such a manner that results in no water entering the City’s storm drain 1460 system. This service must be provided at no charge to the Service Unit, so long as the service is not 1461 requested more than once per Calendar Year. In addition, regardless of whether or not this cleaning is 1462 requested by the Service Unit, Contractor will ensure that all Collection Containers are cleaned on an as1463 needed basis so as to maintain a clean appearance and proper function. Additional cleanings beyond once 1464 each Calendar Year will be subject to the Service Rate set forth in Exhibit 1. 1465 8.02 Commercial Solid Waste Collection Service.
1466 8.02.1 Conditions of Service. Contractor must provide Commercial Garbage Collection 1467 Service to all Commercial Service Units in the Service Area whose Solid Waste is properly containerized 1468 in Garbage Collection Containers, where the Garbage Collection Containers are accessible. 1469 8.02.2 Size and Frequency of Service. This service must be provided as deemed 1470 necessary and determined between Contractor and the Commercial Service Unit, but such service must 1471 be received no less than one (1) time per week with no exception for holiday(s) as set forth herein, except 1472 that Collection service scheduled to fall on a holiday may be rescheduled as determined between the 1473 Service Unit and Contractor as long as the minimum frequency requirement is met. The size of the container AR000060
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1474 and the frequency (above the minimum) of Collection will be determined between the Commercial Service 1475 Unit and Contractor. However, size and frequency must be sufficient to provide that no Solid Waste need 1476 be placed outside the Collection Container. Contractor must provide containers as part of the Commercial 1477 Collection Maximum Service Rates set forth in Exhibit 1. Service Recipients may own and provide their own 1478 Compactor provided that the Service Recipient is completely responsible for its proper maintenance, and 1479 such Compactor is of a type that is compatible with Contractor's equipment. All other Collection Containers 1480 used by Service Recipients must be owned and supplied by Contractor. 1481 8.02.3 Non-Collection. Contractor is not required to Collect any Commercial Solid Waste 1482 that is not placed in a Garbage Collection Container unless such Commercial Solid Waste is outside the 1483 Garbage Collection Container because of overflow. In the event of non-collection or overflow, Contractor 1484 must follow the steps as set forth in Section 3.13. 1485 8.02.4 Disposal Facility. All Solid Waste collected as a result of performing Commercial 1486 Solid Waste Collection Services must be transported to, and disposed of, at the Disposal Facility. In the 1487 event the Disposal Facility is closed on a Work Day, Contractor must transport and dispose of Solid Waste 1488 at another legally permitted disposal facility. Failure to comply with this provision will result in the levy of a 1489 penalty as specified in Exhibit 9 and may result in Contractor being in default under this Agreement. City 1490 has the right to designate Disposal Facility and agrees to adjust Maximum Service Rates to reflect City’s 1491 exercise of flow control rights.
1492 8.03 Commercial Recycling Service. This service is governed by the following terms and 1493 conditions:
1494 8.03.1 Conditions of Service. Contractor must provide Commercial Recycling Service to 1495 all Commercial Service Units in the Service Area whose Recyclable Materials are properly containerized in 1496 Recycling Collection Containers except as set forth below, where the Recycling Collection Containers are 1497 accessible. The Maximum Service Rates for Contractor’s Commercial Recycling Services are set forth in 1498 Exhibit 1.
1499 8.03.2 Base Commercial Recycling Service. All Commercial Service Recipients 1500 subscribing to Commercial Solid Waste Collection Service must receive weekly collection of Recycling 1501 Materials with a minimum of at least one 96-gallon Recycling Cart per Service Recipient and included in 1502 the Bundled Rate set forth in Exhibit 1. The actual configuration of Recycling Collection Container sizes to 1503 be provided will be based on the total equivalent volume and configured in a manner determined by the 1504 Service Recipient in consultation with Contractor. 1505 8.03.3 Size and Frequency of Service. This service will be provided as deemed necessary 1506 and determined between Contractor and the Service Recipient, but such service must be received no less 1507 than one (1) time per week with no exception for holiday(s) as set forth herein, except that Collection service 1508 scheduled to fall on a holiday may be rescheduled as determined between the Service Recipient and 1509 Contractor as long as the minimum frequency requirement is met. Service may be provided by Collection 1510 Container at the option of the Service Recipient. The size of the Collection Container and the frequency 1511 (above the minimum) of Collection will be determined between the Service Recipient and Contractor. 1512 However, size and frequency must be sufficient to provide that no Recyclable Materials need be placed 1513 outside the Collection Container. Contractor may charge for Commercial Recycling Services above the AR000061
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1514 weekly trash volume equivalent and must provide Recycling Collection Containers as a part of the Bundled 1515 Service with rates set forth in Exhibit 1. Service Recipients may own and provide their own Compactor 1516 provided that the Service Recipient is completely responsible for its proper maintenance, and such 1517 Compactor is of a type that is compatible with Contractor's equipment. All other Collection Containers used 1518 by Service Recipients must be owned and supplied by Contractor. 1519 8.03.4 Recycling - Improper Procedure. Contractor is not required to Collect Recyclable 1520 Materials if the Service Recipient does not segregate the Recyclable Materials from Commercial Solid 1521 Waste and Organic Waste. Furthermore, Contractor is not required to collect Recyclable Materials that are 1522 contaminated through commingling with Solid Waste or Organic Waste. To address contamination, 1523 Contractor must follow the steps as set forth in Section 3.12. 1524 8.03.5 Materials Recovery Facility. All Recyclable Materials Collected as a result of 1525 performing Recycling Services must be delivered to the Materials Recovery Facility. Failure to comply with 1526 this provision will result in the levy of a penalty as specified in Exhibit 9 and may result in Contractor being 1527 in default under this Agreement. All expenses related to materials processing and marketing will be the sole 1528 responsibility of Contractor. City has the right to designate Materials Recovery Facility and agrees to adjust 1529 Maximum Service Rates to reflect City’s exercise of flow control rights. 1530 8.03.6 Recycling - Changes to Work. Should changes in law arise that necessitate any 1531 additions or deletions to the work described herein including the type of items included as Recyclable 1532 Materials, the parties will negotiate any necessary cost changes and will enter into an Agreement 1533 amendment covering such modifications to the work to be performed and the compensation to be paid in 1534 accordance with Section 28.01.1 before undertaking any changes or revisions to such work. 1535 8.03.7 Compliance with AB 341. Contractor will develop and maintain its Commercial 1536 Recycling Service in a manner designed to assist City and the Service Recipients to achieve and maintain 1537 compliance with AB 341 and AB 1826. Contractor will notify Commercial Service Recipients of the requirements to comply with the laws starting January 1, 2022, and each January 1st 1538 thereafter. Contractor 1539 must provide the necessary volume of collection service to Commercial Service Units in order to be in full 1540 compliance with the law. In conjunction with the City’s ordinance supporting full compliance with AB 341 1541 and AB 1826 by Commercial Service Units (i.e., “generators”), Contractor will conduct in-person outreach 1542 to all non-participating commercial covered generators a minimum of once per calendar year. Failure to 1543 conduct such outreach will result in a penalty as specified in Exhibit 9. 1544 8.03.8 Additional Recycling Collection containers. Contractor must provide additional 1545 Recycling Collection Containers to Commercial Service Recipients above the minimum requirements within 1546 five (5) days of request and may charge for such additional capacity set forth in Exhibit 1 provided that 1547 additional Collection Containers are used by Service Recipients for the purposes of setting out additional 1548 Recyclable Materials for regular weekly Commercial Recycling Service. 1549 8.04 Commercial Organic Waste Collection Service. This service is governed by the following 1550 terms and conditions:
1551 8.04.1 Conditions of Service. Contractor must provide Commercial Organic Waste 1552 Collection Service to all non-exempt (Section 3.04.3; AB 3036) Commercial Service Units in the Service 1553 Area whose Organic Waste is properly containerized in Organic Collection Containers, except as set forth AR000062
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1554 below in Section 8.04.5, where the Organic Waste Collection Containers are accessible. Contractor will 1555 conduct a site visit with each non-exempt Service Recipient to determine the specific materials to be included 1556 the Service Recipient’s Organic Waste Collection (i.e., Food Waste, Green Waste, combined Food and 1557 Green Waste). Contractor will charge for collection of Organic Waste within the Bundled Service rate 1558 specified in Exhibit 1. For Organic Waste collected in Collection Containers beyond the size specified in the 1559 Bundled Service rate, Contractor will charge at the rate set forth in Exhibit 1. Contractor agrees that not all 1560 Service Units will elect to receive Organic Waste Collection Service in Carts, and that Contractor will provide 1561 Organic Waste Collection Bins upon request and as necessary. Service Recipients may elect to add Green 1562 Waste only Collection Bins to their service at pricing included in Exhibit 1. Contractor will provide a sufficient 1563 number of Collection Containers and at a collection frequency to allow for any such Service Unit to utilize 1564 the collection of Organic Waste. Commercial Organic Waste Collection will occur Monday through Saturday 1565 upon request and as necessary. City shall provide Contractor a list of the names and addresses of 1566 Commercial Service Units that are approved by City for exemption from Organic Waste Collection. 1567 8.04.2 Organic Waste Processing Services. Contractor must ensure that all Organic 1568 Waste Collected pursuant to this Agreement is diverted from the landfill in accordance with AB 939, AB 1569 1826, AB 1594, SB 1016 and SB 1383, and any subsequent or other Applicable Law. Contractor must 1570 ensure that the Organic Waste Collected pursuant to this Agreement is not disposed of in a landfill, except 1571 for residue resulting from processing. If the organics processing facility accepts bagged organic waste, then 1572 Contractor is obligated to accept bagged Organic Waste. 1573 8.04.3 Organic Waste Processing Facility. Contractor must deliver all Collected Organic 1574 Waste to a fully permitted Organic Waste Processing Facility or a fully permitted Organic Waste transfer 1575 station, that has been agreed upon by the City. Failure to comply with this provision will result in the levy of 1576 a penalty as specified in Exhibit 9 and may result in Contractor being in default under this Agreement. All 1577 expenses related to Organic Waste processing and marketing will be the sole responsibility of Contractor. 1578 City has the right to designate Organic Waste Processing Facility and agrees to adjust Maximum Service 1579 Rates to reflect City’s exercise of flow control rights. 1580 8.04.4 Organic Waste Collection Frequency. Contractor must comply with CalRecycle 1581 collection frequency requirements as they may apply during the term of this Agreement. If any such changes 1582 to collection frequency are adopted after Effective Date that result in Contractor being allowed to reduce 1583 the frequency of Garbage or Organic Waste Collection, or otherwise cause Contractor to reduce its 1584 collection costs as a result in a change in Garbage or Organic Waste collection frequency, Contractor must 1585 provide City with its estimate of reduced its costs and shall make adjustments to the Maximum Service 1586 Rates.
1587 8.04.5 Base Commercial Organic Waste Service. All Commercial Service Recipients 1588 subscribing to Commercial Garbage Collection Service must receive weekly collection of the equivalent 1589 volume of at least one (1) 32-gallon Organic Waste Cart per Service Recipient included in the Bundled 1590 Service rate. The actual configuration of Organic Waste Collection Container sizes to be provided will be 1591 based on the total equivalent volume and configured in a manner determined by the Service Recipient in 1592 consultation with Contractor. Contractor may charge for Commercial Organic Waste Collection as set forth 1593 in Exhibit 1 for Commercial Organic Waste Service greater than the base 32-gallon Organic Waste Cart.

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1594 8.04.6 Size and Frequency of Service. This service will be provided as deemed necessary 1595 and determined between Contractor and the Service Recipient, but such service must be received no less 1596 than one (1) time per week with no exception for holiday(s) as set forth herein, except that Collection service 1597 scheduled to fall on a holiday may be rescheduled as determined between the Service Recipient and 1598 Contractor as long as the minimum frequency requirement is met. Service may be provided by Bin or Cart 1599 at the option of the Service Recipient. The size of the container and the frequency (above the minimum) of 1600 Collection will be determined between the customer and Contractor. However, size and frequency must be 1601 sufficient to provide that no Organic Waste needs be placed outside the Collection Container. Service 1602 Recipients may own and provide their own Compactor provided that the Service Recipient is completely 1603 responsible for its proper maintenance, and such Compactor is of a type that is compatible with Contractor's 1604 equipment. All other Collection Containers used by Service Recipients must be owned and supplied by 1605 Contractor.
1606 8.04.7 Organic Waste - Improper Procedure. Contractor is not required to Collect Organic 1607 Waste if the Service Recipient does not separate the Organic Waste from Solid Waste and Recyclable 1608 Materials. Furthermore, Contractor is not required to collect Organic Waste that is contaminated through 1609 commingling with Solid Waste or Recyclable Materials. To address contamination, Contractor must follow 1610 the steps set forth in Section 3.12.
1611 8.04.8 Organic Waste Processing Facility. Subject to Section 8.04.3, all Organic 1612 Waste Collected as a result of performing Organic Waste Collection Services must be delivered to the 1613 Organic Waste Processing Facility. Failure to comply with this provision will result in the levy of an 1614 administrative charge as specified in this Agreement and may result in Contractor being in default under 1615 this Agreement.
1616 8.04.9 Organic Waste - Changes to Services. Should changes in law arise that 1617 necessitate any additions or deletions to the services described in this Section 8.04 including the type of 1618 items included as Organic Waste, the parties will negotiate any necessary cost changes and will enter into 1619 an Agreement amendment covering such modifications to the services to be performed and the 1620 compensation to be paid in accordance with Section 28.01.1 before undertaking any changes or revisions 1621 to such services.
1622 8.04.10 Compliance with AB 1826 and SB 1383. Contractor will develop and maintain its 1623 Commercial Organic Waste Collection Service in a manner designed to assist City and Service Recipients 1624 to achieve and maintain compliance with AB 1826 and SB 1383. Contractor will notify non-exempt covered 1625 businesses of the requirements to comply with the law annually starting January 1, 2022. Contractor will 1626 offer to provide the volume of collection service that covered businesses require to be in compliance with 1627 the law. In conjunction with the City’s ordinance supporting full compliance with AB 341, SB 1383 and AB 1628 827 by Commercial Service Units (i.e., “generators”), Contractor will conduct in-person outreach to all non1629 participating non-exempt commercial covered generators as specified in Section 18.02. Failure to conduct 1630 such outreach will result in a penalty as specified in Exhibit 9. 1631 8.04.11 Additional Organic Waste Collection Containers. Contractor must provide 1632 additional Organic Waste Collection Containers to Service Recipients at the rates listed in Exhibit 1 provided 1633 that additional Collection Containers are used by Service Recipients for the proposes of setting out 1634 additional Organic Waste materials for regular weekly Organic Waste Collection Service AR000064
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1635 Article 9.Multi- Family Dwelling Service with Individual Carts (MFD-I) 1636 9.01. Conditions of Service. As in Section 7.01.
1637 9.01.1. MFD-I Curb Service. As in 7.01.1
1638 9.01.2. MFD-I Bundled Service. A weekly Bundled MFD-I Solid Waste Collection Service 1639 system will be utilized with either one (1) 64-Gallon Garbage Cart (with the option to downsize to a 32- or 1640 upsize to a 96-Gallon Garbage Cart), one (1) 64-Gallon Recycling Cart (with the option to downsize to 1641 upsize to a 96-Gallon Recycling Cart), and one (1) 96-Gallon Organic Waste Cart as part of the base MFD1642 I Solid Waste Collection Service; or for those MFD-I complexes without need for individual yard waste 1643 containers, one (1) 64-Gallon Garbage Cart (with the option to downsize to a 32- or upsize to a 96-Gallon 1644 Garbage Cart), one (1) 64-Gallon Recycling Cart (with the option to downsize to upsize to a 96-Gallon 1645 Recycling Cart), and one (1) 32-Gallon Organic Waste Cart (with the option to upsize to a 64- or 96-Gallon 1646 Organics Cart) as part of the base MFD-I Solid Waste Collection Service. Pricing for upsizing or downsizing 1647 Carts, and additional Carts, relative to the base Bundled Service are included in Exhibit 1. The actual 1648 configuration of Garbage, Recycling and Organic Waste Cart sizes shall be at the option of the Service 1649 Recipient. MFD-I complexes which lack storage space for an Organics Waste Cart at each individual site 1650 may substitute a 2-bin service (Garbage Cart and Recycling Cart) provided that the Facility’s management 1651 subscribe to service of centralized Organic Waste Collection Containers. 1652 9.01.3. MFD-I On-Premises Service. Refer to 7.01.3 1653 9.01.4. MFD-I Frequency and Scheduling of Service. Refer to 7.01.4 1654 9.01.5. MFD-I Manner of Collection. Refer to 7.01.5. 1655 9.01.6. MFD-I Replacement of Carts. Refer to 7.01.6. 1656 9.02. MFD-I Solid Waste Collection Service. Refer to 7.02. 1657 9.03. MFD-I Recycling Service. Refer to 7.03.
1658 9.04. MFD-I Organic Waste Collection Service. Refer to 7.04. 1659 9.05. MFD-I Large Item Collection Service. Refer to 7.05. 1660 Article 10. Multi-Family Dwelling with Centralized Bin Service (MFD-C) 1661 10.01. MFD-C Collection Service. As in Section 8.01. 1662 10.02. MFD-C Solid Waste Collection Service. As in Section 8.02. 1663 10.03. MFD-C Recycling Service. As in Section 8.03. 1664 10.03.01. MFD-C Move In/Out Collection Service. Within three (3) months of opening a new 1665 account, at no additional charge, each MFD-C customer may request that Contractor provide one on-call 1666 Move-In/Out Recyclable Material Collection Service for recyclable packaging materials such as flattened 1667 cardboard boxes, and bundled newspaper and packaging foam. This will be offered as a one-time service 1668 for each new account. This service shall only include Recyclable Materials, and in the event that the Service 1669 Recipient includes Garbage in the materials set out for Collection by Contractor, this service shall be AR000065
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1670 counted as one of the MFD-C Service Recipient’s free annual Large Item Collections as set forth in Section 1671 10.06.
1672 10.04. MFD-C Organic Waste Collection Service. As in Section 8.04 1673 10.05. MFD-C Large Item Collection Services. This service is governed by the following terms 1674 and conditions:
1675 10.05.01. Conditions of Service. Contractor shall provide Large Item Collection 1676 service to MFD-C Service Units (subject to permission from each MFD-C Service Unit owner or property 1677 manager), by providing such Collection one (1) time per month on a designated date, at a designated 1678 location within the MFD-C Service Unit. Contractor shall work with the owner or property manager of each 1679 MFD-C Service Unit to arrange for a monthly Large Item Collection date. On each such Collection date, 1680 Contractor shall Collect all Large Items placed for Collection at the designated location at no charge. 1681 10.05.02. Frequency of Service. As set forth in Section 10.05.01. 1682 10.05.03. Large Items Containing Freon. As set forth in Section 7.05.3. 1683 10.05.04. Maximum Reuse and Recycling. As set forth in Section 7.05.4. 1684 10.05.05. Disposal of Large Items. As set forth in Section 7.05.5. 1685 10.05.06. City Direction of Large Items. As set forth in Section 7.05.6. 1686 Article 11. Mixed Use Dwelling Service (MXD)
1687 11.01. MXD Collection Service. As in Section 10.01. 1688 11.02. MXD Solid Waste Collection Service. As in Section 10.02. 1689 11.03. MXD Recycling Service. As in Section 10.03. 1690 11.03.01. MXD Move In/Out Collection Service. As in Section 10.03.1 1691 11.04. MXD Organic Waste Collection Service. As in Section 10.04 1692 11.05. MXD Large Item Collection Services. As in Section 10.05 1693 Article 12. City Services
1694 12.01 City Collection Conditions of Service. City Collection Services shall be governed by the 1695 following terms and conditions:
1696 12.01.1 Contractor shall provide Garbage, Recyclable Material, and Organic Waste 1697 Collection Services to all City Service Units (and where applicable, subject to the conditions in this section), 1698 where the Containers are not blocked and are accessible by Contractor’s Collection Vehicles. The 1699 frequency of collection may be designated by the City, but not to exceed six (6) times per week per 1700 container. City may change the City Service Units receiving service, and the container volume and 1701 collection frequency provided to any City Service Unit. Contractor shall provide this service and charge the 1702 City in accordance with the Commercial Service Recipient Rates set forth in Exhibit 1.

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1703 12.01.2 Contractor shall receive written permission from the City before placing any 1704 Collection Containers on City owned property for service. 1705 12.01.3 Contractor shall limit the number of trips and the path of travel for Collection 1706 Vehicles in City parking lots.
1707 12.01.4 Municipal Service Center
1708 1. Contractor shall collect and dispose of Solid Waste and collect and 1709 process Green Waste and Recyclable Materials generated at the City’s Municipal Service Center, currently 1710 located at 1993 Rancho Conejo Blvd. in Newbury Park and charge the City in accordance with the Service 1711 Recipient Rates as set forth in Exhibit 1. Contractor shall also collect and process Green Waste and 1712 Recyclable Materials brought to the City’s Municipal Service Center by City or City-contracted personnel. 1713 Contractor shall provide hauling for Roll-off Containers and Bins outside the Municipal Service Center and 1714 used by City street maintenance and landscape crews and shall charge the City in accordance with the 1715 Service Recipient Rates as set forth in Exhibit 1 for disposal or processing from such sources. 1716 2. Contractor shall provide a liaison staff to meet twice each calendar year 1717 with Municipal Service Center personnel managing solid waste collection at the MSC. Contractor staff shall 1718 provide education information, including staff training sessions, to maximize source separation and material 1719 recovery opportunities at the MSC.
1720 12.02 City Clean-Up Services.
1721 12.02.1 City’s Enforcement Clean-Up Services. Within one (1) Work Day of a request from 1722 the Agreement Administrator, Contractor shall provide Roll-off Containers to support City’s Enforcement 1723 Clean-Up Services in the Service Area. City shall be responsible for loading or arranging for loading of each 1724 Roll-off Container. Contractor shall collect, transport and deliver City Code Enforcement Clean-Up Services 1725 Garbage, Recyclable Material, and Organic Waste to a Disposal Facility, the Materials Recovery Facility, or 1726 Organics Processing Facility, as appropriate given the characteristics of the load. Contractor shall deliver, 1727 and collect, transport and process the City’s Enforcement Clean-Up Services waste from up to ten (10) Roll1728 off Containers each Agreement Year at no charge to the City. Contractor shall be entitled to charge the City 1729 for collected materials exceeding ten (10) collections per Agreement Year in accordance with the Service 1730 Recipient Rates as set forth in Exhibit 1.
1731 12.02.2 City’s clean-up and removal of downed trees. Within four (4) hours of a request 1732 from the Agreement Administrator, Contractor shall provide Roll-off Containers to support City’s clean-up 1733 and removal of downed trees that result from natural events (storms, high winds etc.) in the Service Area. 1734 City shall be responsible for loading or arranging for loading of each Roll-off Container. Contractor shall 1735 collect, transport and deliver said Organic Waste to an Organics Processing Facility for recycling. Contractor 1736 shall deliver, and collect, transport and process organic material from up to ten (10) Roll-off Containers each 1737 Agreement Year at no charge to the City. Contractor shall be entitled to charge the City for Roll-Off Service 1738 exceeding ten containers per Agreement Year in accordance with the Service Recipient Rates as set forth 1739 in Exhibit 1
1740 12.02.3 Abandoned Waste/Illegal Dumping Reporting. When conducting service within the 1741 City, Contractor shall direct its Collection Vehicle drivers to report to Contractor sightings of illegal dumping 1742 of Waste by recording: (i) the addresses of any Service Area where Garbage, Recyclable Material, and/or AR000067
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1743 Organics Waste is accumulating; and (ii) the address, or other location description at which Garbage, 1744 Recyclable Material, and/or Organics Waste has been dumped. Contractor shall report to the City sightings 1745 and the recorded address within three (3) Work Days. 1746 12.02.4 Abandoned Waste/Illegal Dumping Clean-up. At City’s direction, Contractor shall 1747 collect, transport and process dumped items from up to fifty (50) illegal dumping clean-up requests per year 1748 at no additional charge to City. Contractor shall be entitled to charge the City for requests in excess of fifty 1749 (50) collections per Agreement Year in accordance with the Service Recipient Rates as set forth in Exhibit 1750 1.
1751 12.03 City-Sponsored Events Service. Upon request by the City, Contractor shall provide 1752 Containers, Collection Services, and Street Sweeping Services at up to five (5) City-Sponsored Events 1753 annually, including but not limited to those specified in Exhibit 2, at no cost to the City. 1754 12.04 Large Item Collection Service. Contractor shall collect Large Items, including E-Waste and 1755 Universal Waste, from City Services Units on an on-call basis on the same terms and conditions as are 1756 provided to SFD Service Units per Section 7.05 at rates specified in Exhibit 1. 1757 Article 13. Additional Services
1758 13.01 Free Landfill Days. SFD and MFD, MFD-C, MFD-I and MXD Service Recipients are 1759 allowed to utilize the designated landfill site (Simi Valley, Calabasas, Toland Road Landfills or such other 1760 mutually agreeable site) at no cost to the Service Recipient, up to three (3) times each Calendar Year on 1761 designated Free Landfill and Recycling Days at specified hours. Service Recipients must present evidence 1762 of home address within the City to the landfill at the entrance gate and be prepared to unload their own 1763 materials. No commercial vehicles or commercial waste will be accepted, nor will waste or materials from 1764 landscaping companies. Residents can bring up to two loads per event, using a vehicle no larger than a five 1765 (5) passenger automobile or a pickup truck. Hazardous materials, electronic waste, liquids and 1766 medical/biological waste are not accepted. Contractor is responsible for coordinating and facilitating Free 1767 Landfill Days with the designated landfill, including paying all costs associated with advertising, and disposal 1768 of all materials.
1769 13.02 Public Area Waste Collection. At no additional cost or expense to the City, Contractor shall 1770 provide Garbage and Recyclable Material Collection Service from Collection Containers placed at up to 150 1771 public-right-of-way locations designated by the City. City to provide containers. Garbage and Recyclable 1772 Material Collection Containers shall be serviced on a regular schedule of no less than two days per week, 1773 and three days per week for high usage areas, or as-needed basis as directed by the City, to avoid any 1774 overflow of materials. Total Collection Container service shall not exceed the equivalent of 150 locations at 1775 120 gallons per location collected two days per week. There will be flexibility in collection capacity at each 1776 location.
1777 13.03 Street Sweeping Services. Contractor shall perform street sweeping services as described 1778 in Exhibit 7. The designated parking areas for weekly street sweeping are listed in Exhibit 7. 1779 13.04 Household Hazardous Waste Home Collection Service. Contractor shall provide 1780 Household Hazardous Waste Home Collection Service as described in Exhibit 8.

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1781 Article 14. Collection Routes
1782 14.01 Service Routes. Contractor must provide City with maps precisely defining Collection 1783 routes, together with the days and the times at which Collection will regularly commence. 1784 14.02 Service Route Changes. Contractor must submit to City, in writing, any proposed route 1785 change (including maps thereof) not less than sixty (60) calendar days prior to the proposed date of 1786 implementation. Contractor may not implement any route changes without the prior review of the Agreement 1787 Administrator. If the change will change the Collection day for a Service Recipient, Contractor must notify 1788 those Service Recipients in writing of route changes not less than thirty (30) days before the proposed date 1789 of implementation.
1790 14.02.1 Collection Route Audits. City reserves the right to conduct audits of Contractor’s 1791 Collection routes. Contractor must cooperate with City in connection therewith, including permitting City 1792 employees or agents, designated by the Agreement Administrator, to ride in the Collection Vehicles to 1793 conduct the audits. Contractor has no responsibility or liability for the salary, wages, benefits or worker 1794 compensation claims of any person designated by the Agreement Administrator to conduct such audits. 1795 Article 15. Minimum Performance and Diversion Standards 1796 15.01 Agreement Extension. In order to receive the Agreement term extension offer set forth in 1797 Article 2 of this Agreement, Contractor must meet or exceed the following annual minimum performance and 1798 diversion standards in each Calendar Year beginning January 2023. 1799 15.01.1 Performance Standards. Assessment of penalties and charges, as set forth in 1800 Exhibit 9 of this Agreement, totaling less than $50,001 in any one (1) Calendar Year. 1801 15.01.2 Minimum Diversion Standards. Contractor must meet the requirements set forth in 1802 Article 5.
1803 15.01.3 No Current Default. Contractor is not currently in default of the Agreement. 1804 15.02 Billing/Financial Audit and Performance Reviews 1805 15.02.1 Contractor shall review its billings to all Customers. The purpose of the review is 1806 to determine that the amount which the Contractor is billing each Customer is correct with regard to the level 1807 of service (i.e., frequency of collection, size of container, location of container) at the rates approved by City 1808 Council resolution. The Contractor shall review Customer accounts not less than annually and provide a 1809 written certification to the City that all such billing is correct. The documentation of the review, as well as 1810 verification that any errors have been corrected should be provided to the City annually. 1811 15.02.2 Selection and Cost. City may conduct billing audit, financial audit and performance 1812 reviews (together, “reviews”) of Contractor’s performance during the term of this Agreement. The reviews 1813 will be performed by the City or a qualified firm under contract to City. City will have the final responsibility 1814 for the selection of the firm. City may conduct reviews at any time during the term of the Agreement. City 1815 and Contractor agree to each pay fifty-percent (50%) of the cost of the audits and performance reviews 1816 provided for under Section 15.02.

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1817 1. Full Reviews During Initial Term. City may conduct three (3) full reviews 1818 with costs apportioned as stated in 15.02.2 during the Initial Term of this Agreement. The purpose of these 1819 full reviews will be as described in Section 15.02.3 below. 1820 2. Full Review During Extension Period. In the event that Contractor is 1821 granted an extension to the term of this Agreement as described in Section 2.02, City may conduct one (1) 1822 additional full review during each of the five (5) year extension periods. The purpose of this full review is 1823 described in Section 15.02.3. For each of these full review costs will be apportioned as stated in 15.02.2. 1824 15.02.3 Purpose. The reviews will be designed to verify that customer billing rates have 1825 been properly calculated and they correspond to the level of service received by the customer, verify that 1826 Contractor is correctly billing for all services provided, Franchise Fees, Solid Waste Management Fees and 1827 other fees required under this Agreement have been properly calculated and paid to City, verify Contractor’s 1828 compliance with the reporting requirements and performance standards of this Agreement, verify the 1829 diversion percentages reported by Contractor, and verify any other provisions of the Agreement. City (or its 1830 designated consultant) may utilize a variety of methods in the execution of this review, including, but not 1831 limited to, analysis of relevant documents, on-site and field observations, and interviews. City (or its 1832 designated consultant) will review and document the items in the Agreement that require Contractor to meet 1833 specific performance standards, submit information or reports, perform additional services, or document 1834 operating procedures, that can be objectively evaluated. This information will be documented and be 1835 formatted in a “compliance checklist” with supporting documentation and findings tracked for each of the 1836 identified items. The review will specifically include a determination of Contractor’s compliance with the 1837 diversion requirements of Article 5, and the public outreach and education requirements of Article 18. City 1838 (or its designated consultant) may review the customer service functions and structure utilized by Contractor. 1839 This may include Contractor’s protocol for addressing customer complaints and service interruption 1840 procedures. Complaint logs may be reviewed, along with procedures and systems for tracking and 1841 addressing complaints. On-site and field observations by City (or its designated consultant) may include, but 1842 are not necessarily limited to:
1843 1. Interviews and discussions with Contractor’s administration and management 1844 personnel;
1845 2. Review and observation of Contractor’s customer service functions and 1846 structure;
1847 3. Review of public education and outreach materials; 1848 4. Interviews and discussions with Contractor’s financial and accounting 1849 personnel;
1850 5. Interviews with route dispatchers, field supervisors and managers; 1851 6. Interviews with route drivers;
1852 7. Interviews with vehicle maintenance staff and observation of maintenance 1853 practices; and
1854 8. Review of on-route Collection Services, including observation of driver 1855 performance and collection productivity and visual inspection of residential 1856 routes before and after collection to evaluate cart placement and cleanliness 1857 of streets.

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1858 15.02.4 Contractor’s Cooperation. Contractor shall cooperate fully with the review and 1859 provide all requested data, including operational data, financial data of the type described in Section 15.01.1, 1860 and other data reasonably requested by City within fifteen (15) Work Days of the request. 1861 15.02.5 Additional Billing/Financial Audit and Performance Review. In the event that the 1862 Billing/Financial Audit and Performance Review concludes that Contractor is not in compliance with all terms 1863 and conditions of this Agreement and such non-compliance is material, Contractor is subject to 1864 administrative fees and penalties as described in Exhibit 9 as well as reimbursement to the City for the full 1865 cost of the audit plus any underpayments discovered during the Audit. Additionally, City may conduct an 1866 Additional Billing Audit and Performance Review beyond the three specified in Section 15.02.02, to ensure 1867 that Contractor has cured any such area of non-compliance. Contractor will be responsible for the cost of 1868 any such Additional Billing/Financial Audit and Performance Review for a maximum cost of One-hundred Twenty Thousand Dollars ($120,000) (starting on January 1, 2022 and each January 1st 1869 thereafter, with the 1870 maximum cost for the review adjusted annually by the change in the CPI). For the purposes of a 1871 determination of non-compliance under this Agreement, Audit findings which result in underpayments of 1872 $100,000 or more shall be deemed material.
1873 15.02.6 City Requested Program Review. City reserves the right to require Contractor to 1874 periodically conduct reviews of the SFD and Commercial Garbage, Recyclable Materials, and Organic Waste 1875 collection programs, provided that such reviews are reasonable and can be accomplished at no additional 1876 cost to Contractor and without interfering with Contractor’s operations. Such reviews could assess one or 1877 more of the following performance indicators: average volume of Recyclable Materials per setout per 1878 customer, average volume of Organic Waste per setout per customer, participation level, contamination 1879 levels, etc. Prior to the program evaluation review, City and Contractor will meet and discuss the purpose of 1880 the review and agree on the method, scope, and data to be provided by Contractor. 1881 15.03 Cooperation with Other Program Reviews. Contractor shall cooperate with City and/or its 1882 agent(s) as reasonably requested to collect program data, perform field work, conduct route audits to 1883 investigate customer participation levels and setout volumes and/or evaluate and monitor program results 1884 related to Garbage, Recyclable Materials and Organic Waste collected in City by Contractor, provided that 1885 such cooperation can be accomplished at no additional cost to Contractor and without interfering with 1886 Contractor’s operations.
1887 Article 16. Collection Equipment
1888 16.01 Equipment Specifications.
1889 16.01.1 General Provisions. All equipment used by Contractor in the performance of 1890 services under this Agreement must be of a high quality and meet all Federal, State, and local regulations 1891 and air quality standards, including all applicable provisions of Ventura County Air Pollution Control District. 1892 Collection vehicles must be designed and operated so as to prevent collected materials from escaping from 1893 the vehicles. Hoppers must be closed on top and on all sides with screening material to prevent collected 1894 materials from leaking, blowing or falling from the vehicles. All trucks and containers must be watertight and 1895 must be operated so that liquids do not spill during Collection or in transit.

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