Agenda packet, regular meeting — Union City City Council, May 27, 2025 (part 1 of 4)

AGENDA

CITYOF UNION CITY/

SUCCESSOR AGENCYTO THE REDEVELOPMENT AGENCYMEETING
GARYSINGH, Mayor
SCOTT SAKAKIHARA, Vice Mayor (District 4)
LANCE NISHIHIRA, Councilmember (District 1)
JAIME PATIÑO,Councilmember (District 2)
JEFF WANG, Councilmember (District 3)
Tuesday, May 27, 2025
7:00 PM
CityHall - Council Chamber
34009Alvarado-Niles Road Union City, CA94587
NOTICE OF REMOTE PARTICIPATION: Councilmember Wang will participate in the meeting via teleconference fromthe site listed below. The meeting agenda will be posted on the teleconference site, which is accessible to the public.Anyone wishing to address the Council fromthe teleconference site will be provided with an opportunity to do so. Location: Renaissance Nanjing (Lobby) Olympic Centre 139Aoti Street, Jianye District, Nanjing, Jiangsu, China 210019

1. CALL TO ORDER

1.1. Pledge ofAllegiance

1.2. Roll Call

2. UNFINISHED BUSINESS - None

3. PROCLAMATIONS AND PRESENTATIONS

3.1. Proclamation Recognizing June 2025 as LGBTQ+ Pride Month

3.2. Proclamation Recognizing May 2025 as Mental HealthAwareness Month

4. ORAL COMMUNICATIONS
An individual speaker shall have three minutes to address the Council on non-agenda items under the Oral Communications section of the agenda. The Chair may, in their discretion, lower the time limit to less than three minutes based on the number of speakers and/or business to be conducted by the City Council. Members of the public who wish to speak to the Council under the first Oral Communications section are requested to complete a speaker card, giving their name and city of residence. If a speaker wants further notification from the City, the speaker may include a mailing address. Neither a speaker card or identification of name, city of residence or mailing address are required to provide public comment but are requested for record keeping purposes.

5. CONSENT CALENDAR
All matters listed on the Consent Calendar are considered routine in nature and will be enacted by one motion. If discussion is required on a specific item, it will be removed from the Consent Calendar and considered separately.

City Council/RSA Agenda 1 Tuesday, May 27, 2025

5.1. Approve the May 13, 2025 City Council Special Closed SessionAction Minutes

5.2. Approve the May 13, 2025 City Council Regular MeetingAction Minutes

5.3. Approve the May 20, 2025 City Council Special MeetingAction Minutes

5.4. Adopt a Resolution RequiringAnnualApproval of Commission Meeting Calendars

5.5. Adopt a Resolution Appointing Members to the Sales Tax and Utility Users’ Tax Committee andApproving Structural and Term Modifications

5.6. Adopt a ResolutionAuthorizing the Formation of a ClimateAction Plan Task Force

5.7. Adopt a Resolution Approving the Redistribution of Unspent and Relinquished Funds for the City Council’s Travel and Training Budget in FY 2024-2025, in Addition to Returning Unused Funds to the General Fund

5.8. Adopt a Resolution Authorizing the Filing of an Application for Funding Assigned by MTC and Committing Any Necessary Matching Funds and Stating Assurance to Complete the Block 5 Mobility Hub Project, City Project No. 25-22 -

5.9. Adopt a ResolutionAuthorizing the City Manager to Execute the Third Amendment to the Consulting Services Agreement with Richard K. Tanaka, in the Amount of $30,000, for a Total Not-To-Exceed Contract Amount of $354,800, for Project Management Services for the Union City Boulevard Bike Lanes Project, City Project No. 17-29

6. PUBLIC HEARINGS - None

7. CITYMANAGER REPORTS

7.1. Adopt a Resolution Authorizing the City Manager to Execute the First Amendment to the Agreement Between the City of Union City and Alameda County Fire Department for Fire and Emergency Response Services

7.2. Adopt Resolutions Approving and Authorizing the City Manager to Execute an Amended and Restated Franchise Agreement for Landfill, Compost, and Recycle Collection Services with Republic Services for an Additional Ten-year Term Commencing July 1, 2025 Through June 30, 2035 and an Amended and Restated Franchise Agreement for Recycle Collection and Processing Services with Tri-City Economic Development Corporation (Tri-CED) for an Additional Ten-year Term Commencing July 1, 2025 Through June 30, 2035

7.3. Adopt Two Resolutions: 1) Approving the Annual Engineer's Report for the Landscape and Lighting Maintenance District (LLAD) No. 3; and 2) Declaring the City Council's Intent to Levy and Collect Assessments, Setting June 24, 2025, as the Public Hearing Date

7.4. Waive Full Reading and Introduce by Title Only an Ordinance of the City Council of the City of Union City Designating Local Responsibility Area Fire Hazard Severity Zones

8. SUCCESSOR AGENCYTO REDEVELOPMENT AGENCY- None

9. AUTHORITIES AND AGENCIES - None

10. CITYCOMMISSION / COMMITTEE REPORTS - None

11. ITEMS REFERRED BYCOUNCIL

12. GOOD OF THE ORDER

13. CLOSED SESSION - None

14. ADJOURNMENT

MEETING INFORMATION
Regular City Council meetings are held in person on the second and fourth Tuesday of each month at 7:00 City Council/RSA Agenda 2 Tuesday, May 27, 2025
p.m. in the Council Chambers, City Hall, 34009 Alvarado-Niles Road, Union City, CA 94587.

Meetings can also be observed via Zoom: http://citycouncil-live.unioncity.org Meetings are broadcast live on UCTV Channel 15 and live-streamed on the City's website:
https://www.unioncity.org/199/City-Meetings-Video.

Public Comment: Members of the public cannot provide comments via Zoom unless specifically permitted, as detailed below. Remote access is subject to technical availability. If the Zoom platform or other technology fails, the City Council will proceed with the meeting in person unless prohibited by law.

Public Records: Documents related to agenda items are available for review on the City's website (https://www.unioncity.org) or during business hours at the City Clerk's Office, 34009 Alvarado-Niles Road, Union City, CA 94587.

Accessibility: If you require special assistance to participate in the meeting, please contact the City Clerk's Office at (510) 675-5448 at least 72 hours before the meeting. Closed captioning is available for all regular City Council meetings.

ADDRESSING THE CITY COUNCIL
In-Person Public Comment:

Members of the public may address the Council on any agenda item or during the Public Input portion of the meeting. To speak, please fill out a speaker card with your name and city of residence. If you would like a follow-up from the City, you may also provide your mailing address. Completing a speaker card and providing your name, city, or mailing address are not required to make a public comment but are requested for record-keeping purposes.

Written Comment:

To submit written comments on an agenda item or during Public Comment, please email:
[email protected]. Include "public comment" in the subject line and reference the agenda item number. Written comments will be forwarded to the City Council and made publicly available.

Public Comment via Zoom:

As noted above, the public may not address the Council via Zoom unless required by AB 2449. If the City is required to provide this opportunity, the Mayor will announce it at the beginning of the meeting. If allowed, raise your virtual hand on Zoom to indicate that you would like to speak on a specific agenda item.

CITY COUNCIL NORMS AND GUIDELINES
(Resolution No. 6129-23; Adopted May 23, 2023)
The Union City Council abides by the following norms:

1. We conduct ourselves in a professional manner, treat everyone with respect, and act with high integrity, always putting the interests of the City of Union City ahead of self-interests in accordance with our code of ethics.

2. We respect the Council-Manager form of government, and do not interfere with the City Manager's role or any professional duties of City staff.

3. We recognize that matters of confidential nature are to be kept private and undisclosed.

4. We respect each other's opinions and are supportive of each other's work advocating for the City, and we ensure that all voices are heard. We do not criticize others for having a different point of view, and we agree to disagree respectfully.

5. We understand that the City Council acts as a body, all members are equal, and policy direction is only given by a majority vote of the City Council. Once a decision is made, all members of the City City Council/RSA Agenda 3 Tuesday, May 27, 2025
Council must respect the City Council's direction.

6. We will be prepared for City Council meetings and ask our questions of the City Manager in advance so we can avoid surprising City staff at meetings.

7. We do not criticize City staff publicly or to others and will refrain from directing them. Instead, we will take our concerns and questions privately to the City Manager.

8. We will govern on an at-large basis, although elected by districts. We will maintain a citywide perspective and consider the needs and interests of the entire community.

9. We will continue to allocate resources based on long-term strategic priorities and efforts, with consideration of citywide service levels and financial capacity.

10. We understand customer service is the priority and each member of the City Council will help constituents regardless of the district in which they reside or from which a Councilmember themselves is elected.

11. We recognize the significant importance of attendance and participation at City Council meetings in proceeding with City business. All members of the City Council should endeavor to miss no more than two regular meetings per calendar year absent extraordinary circumstances. Members of the City Council should, absent unforeseen circumstances, provide a minimum of sixty days' notice to the City Council of planned absences during the Good of the Order or Items Referred by Council portion of the City Council agenda, as appropriate.

May these Council Norms be administered and enforced in the following manner:

1. Councilmembers have the primary responsibility to assure that ethical standards are understood and met by the Council, and that the public can continue to have full confidence in the integrity of government.

2. The Mayor and the Council have the responsibility to intervene when action of its members are in violation of Council Norms.

3. The City Council can review and revise the Council Norms as needed.

4. During City Council discussions, deliberations, and proceedings, the Mayor is designated with the primary responsibility to ensure that Councilmembers adhere to the Council Norms.

CERTIFICATION OF MEETING NOTICE AND AGENDA POSTING
This notice and agenda were posted on the City's website and the City Hall bulletin board at least 72 hours prior to the meeting date, in compliance with the Ralph M. Brown Act. /s/Thai Nam Pham, MMC, CPMC
City Clerk/Secretary to the City of Union City Successor Agency City Council/RSA Agenda 4 Tuesday, May 27, 2025
Agenda Item
ATTACHMENTS:

Description Type
Proclamation Attachment
City Council/RSA Agenda 5 Tuesday, May 27, 2025

In Recognition of June 2025 as LGBTQ+ Pride Month

WHEREAS, the City of Union City values the dignity, visibility, and inclusion of all its residents and proudly recognizes the Lesbian, Gay, Bisexual, Transgender, Queer, and other gender-diverse (LGBTQ+) members of our community; and WHEREAS, Pride Month is held each June to honor the 1969 Stonewall Uprising in New York City, a pivotal moment that helped spark the LGBTQ+ civil rights movement in the United States and around the world; and WHEREAS, LGBTQ+ individuals have made lasting contributions to the cultural, economic, and civic life of our city and nation, helping build a more vibrant and compassionate society; and
WHEREAS, Union City reaffirms its commitment to standing against hate and discrimination, and remains dedicated to fostering a welcoming and supportive community for people of all sexual orientations, gender identities, and gender expressions; and
WHEREAS, the Pride Flag is a symbol of hope, unity, and strength, and flying it during the month of June reflects our shared commitment to equality and respect for all.

NOW, THEREFORE, I, Gary Singh, Mayor of the City of Union City, and on behalf of the entire City Council, do hereby proclaim the month of June 2025 as LGBTQ+ Pride Month in the City of Union City, will raise the Pride Flag, flying it throughout June, and call upon all residents to join in celebrating the ongoing efforts toward equality, dignity, and inclusion.

DATED: May 27, 2025
GARY SINGH, Mayor
SCOTT SAKAKIHARA, Vice Mayor
LANCE NISHIHIRA, Councilmember
JAIME PATIÑO, Councilmember
JEFF WANG, Councilmember
City Council/RSA Agenda 6 Tuesday, May 27, 2025
Agenda Item
ATTACHMENTS:

Description Type
Proclamation Attachment
City Council/RSA Agenda 7 Tuesday, May 27, 2025

In Recognition of May 2025 as National Mental Health
Awareness Month

WHEREAS, mental health is essential to overall health and well-being, and affects how people think, feel, act, handle stress, relate to others, and make choices; and
WHEREAS, one in five adults in the United States experiences a mental health condition in any given year, and many children and youth also face mental health challenges that can impact their development, education, and relationships; and WHEREAS, mental health conditions are common and treatable, but too often stigma and lack of access prevent people from seeking the help they need; and WHEREAS, the City of Union City supports efforts to increase awareness, education, and access to mental health services so that all people, especially those who are most vulnerable, can live full and healthy lives; and WHEREAS, National Mental Health Awareness Month provides an opportunity to break the silence, promote compassion and understanding, and uplift those affected by mental health challenges.

NOW, THEREFORE, I, Gary Singh, Mayor of the City of Union City, and on behalf of the entire City Council, do hereby proclaim May 2025 as National Mental Health Awareness Month in Union City, and encourage all residents to support mental health education and advocate for policies that promote well-being for all.

Description Type
Action Minutes Attachment
City Council/RSA Agenda 9 Tuesday, May 27, 2025
May 13, 2025 | 5:45 PM Page 1 of 2
City Council
Special Closed Session Minutes

MINUTES

CITY OF UNION CITY

CITY COUNCIL SPECIAL CLOSED SESSION
GARY SINGH, Mayor
SCOTT SAKAKIHARA, Vice Mayor (District 4)
LANCE NISHIHIRA, Councilmember (District 1)
JAMIE PATIÑO, Councilmember (District 2)
JEFF WANG, Councilmember (District 3)
Tuesday, May 13, 2025 | 5:45 PM
City Hall - City Council Conference Room
34009 Alvarado-Niles Road
Union City, CA 94587

1. CALL TO ORDER
Mayor Singh called the meeting to order at 5:47 PM.

2. ROLL CALL
Attendee Name Present
Councilmember Nishihira
Councilmember Patiño
Councilmember Wang
Vice Mayor Sakakihara
Mayor Singh
Yes
Yes
Yes
Yes
Yes

3. ORAL COMMUNICATIONS
Mayor Singh opened Public Comment. There being no speakers, Mayor Singh closed Public Comment.

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4. CLOSED SESSION

4.1. Public Employee Appointment Pursuant to Government Code § 54957 Title: Community & Recreation Services Director
The City Council voted unanimously (5-0) to appoint Laura Buzo as the next Community and Recreation Services Director.

4.2. CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6
Agency Designated Representatives:

Joan Malloy, City Manager
Jason Castleberry, Human Resources Director
Jeff Bailey, IEDA Labor Negotiator
Employee Organizations:

OE3 Management and OE3 Professionals
No reportable action.

5. REPORT OUT OF CLOSED SESSION
Mayor Singh reported on the above items at the May 13, 2025, City Council Regular Meeting.

6. ADJOURNMENT
Mayor Singh adjourned the meeting at 6:55 PM.

Description Type
Action Minutes Attachment
City Council/RSA Agenda 12 Tuesday, May 27, 2025

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MINUTES

CITY OF UNION CITY / SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

REGULAR MEETING
GARY SINGH, Mayor
SCOTT SAKAKIHARA, Vice Mayor (District 4)
LANCE NISHIHIRA, Councilmember (District 1)
JAMIE PATIÑO, Councilmember (District 2)
JEFF WANG, Councilmember (District 3)
Tuesday, May 13, 2025 | 7:00 PM
City Hall – Tom Kitayama City Council Chambers
34009 Alvarado-Niles Road, Union City, CA 94587

1. CALL TO ORDER

1.1. Pledge of Allegiance
Mayor Singh called the meeting to order at 7:05 PM.

1.2. Roll Call
Attendee Name Present
Councilmember Nishihira
Councilmember Patiño
Councilmember Wang
Vice Mayor Sakakihara
Mayor Singh
Yes
Yes
Yes
Yes
Yes
Mayor Singh reported out of Closed Session that was conducted prior to the regular meeting. he reported on Item 4.1. - Public Employee Appointment Pursuant to Government Code § 54957 - Title: Community & Recreation Services Director, the Council voted unanimously, 5-0, to appoint Laura Buzo as the next Union City Community and Recreation Services Director.

2. UNFINISHED BUSINESS
There were none.

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3. PROCLAMATIONS AND PRESENTATIONS

3.1. Proclamation Recognizing May 2025 as Asian American, Native Hawaiian, and Pacific Islander Heritage Month
Mayor Singh read the proclamation aloud and presented it to Rosalinda Canlas who provided brief remarks afterward.

3.2. Proclamation Recognizing May 11–17, 2025, as National Police Week Mayor Singh read the proclamation aloud and presented it to Police Chief Rinetti and UCPD officers. He briefly made remarks afterward.

3.3. Proclamation Recognizing May 18–24, 2025, as National Public Works Week "People, Purpose, Presence"
Mayor Singh read the proclamation aloud and presented it to Public Works Director Ayupan and her staff. Public Works Grounds Supervisor Banuelos then made brief remarks afterward.

3.4. Presentation Recognizing New Haven School Foundation’s 2025 Earth Day Poster Contest Winners
2025 NHSF Poster Contest Chairs Michael Ritchie and Shruti Kumar presented the winners of this year’s Earth Day Poster Contest. The Council then proceeded to take photos with the winners.

4. ORAL COMMUNICATIONS
Mayor Singh opened Oral Communications. Wendy Huang spoke during Oral Communications. There being no further speakers, Mayor Singh Closed Oral Communications.

5. CONSENT CALENDAR
Motion: Approve the Consent Calendar.

RESULT: Pass
MOVER: Councilmember Wang
SECONDER:Councilmember Nishihira
AYES: Councilmembers Nishihira, Patiño, Wang, Vice Mayor Sakakihara, and Mayor Singh
NOES: None
ABSENT: None

5.1. Approve the April 22, 2025 City Council Regular Meeting Action Minutes A motion was made to approve the minutes.

5.2. Approve the April 29, 2025 City Council Special Study Session Action Minutes
A motion was made to approve the minutes.

5.3. Approve the May 6, 2025 City Council Special Study Meeting Action Minutes A motion was made to approve the minutes.

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5.4. Adopt a Resolution Authorizing the Reallocation of the City's Cash Investment Portfolio
A motion was made to adopt the resolution.

Enactment No.: Resolution No. 2025-056

5.5. Adopt a Resolution Approving an Extension of the Exclusive Negotiating Agreement with City Ventures Homebuilding LLC, for the Sale and Development of a Portion of the Gateway Property
A motion was made to adopt the resolution.

Enactment No.: Resolution No. 2025-057

5.6. Adopt a Resolution Authorizing the City Manager to Enter into an Agreement with Golden State Fire Apparatus for the Purchase of One (1) Pierce Manufacturing, Inc. Enforcer 1500 GPM Type 1 Engine in the Amount of $1,214,277.65
A motion was made to adopt the resolution.

Enactment No.: Resolution No. 2025-058

5.7. Adopt a Resolution Approving the Purchase of Door Access Equipment, Software, and Professional Services for the City Hall Building Through Portola, for a Not-to-Exceed Contract Amount of $175,166.93, and Authorizing the City Manager to Execute the Agreement
A motion was made to adopt the resolution.

Enactment No.: Resolution No. 2025-059

5.8. Adopt a Resolution Declaring Its Intention to Renew the Union Landing Property and Business Improvement District and to Levy and Collect Assessments Within Such District Pursuant to the Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the California Streets and Highways Code, Calling an Assessment Ballot Proceeding, and Establishing a Time and Place for a Public Hearing
A motion was made to adopt the resolution.

Enactment No.: Resolution No. 2025-060

5.9. Adopt a Resolution Accepting a Grant from the U.S. Department of Energy's (DOE) Energy Efficiency and Conservation Block Grant (EECBG) Program, in the Amount of $128,020, Increasing the Revenue Projections in the Fleet Replacement Fund by $128,020, and Appropriating $128,020 to the Fleet Replacement Fund for Purchase of Three Hybrid Vehicles
A motion was made to adopt the resolution.

Enactment No.: Resolution No. 2025-061

5.10. Adopt a Resolution Accepting a Donation from the Fremont Bank Foundation, in the Amount of $35,000, Increasing the Revenue Projections in the Park In-Lieu Fund by $35,000, and Appropriating the $35,000 to the Park In-Lieu Fund for the Heritage Oak Park Playground Replacement Project, City Project No. 24-28
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A motion was made to adopt the resolution.

Enactment No.: Resolution No. 2025-062

5.11. Adopt a Resolution Authorizing the City Manager to Execute a Consulting Services Agreement with MNS Engineers, Inc., in the Amount of $624,532, for Construction Management Services for the At-Grade Pedestrian Crossing at BART Project, City Project No. 14-14
A motion was made to adopt the resolution.

Enactment No.: Resolution No. 2025-063

5.12. Adopt a Resolution Authorizing the City Manager to Execute a Consulting Services Agreement with Gates + Associates, in the Amount of $299,010, for the Parks and Recreation Master Plan, City Project No. 24-20 A motion was made to adopt the resolution.

Enactment No.: Resolution No. 2025-064

6. PUBLIC HEARINGS

6.1. Presentation Adhering to AB 2561 Requirements for Reporting on Vacancy Rates and Recruitment and Retention Efforts
Human Resources Director Castleberry provided staff presentation and responded to questions from council members.

Mayor Singh opened the Public Hearing at 7:45 PM. Police Officers' Association Ian Hobson spoke during the Public Hearing. Seeing no further speakers, Mayor Singh closed Public Comment at 7:49 PM.

Council received the report.

7. CITY MANAGER REPORTS

7.1. Adopt a Resolution Approving the 2025 State and Federal Legislative Platform for the City of Union City and Authorizing the Mayor or City Manager to Sign Position Letters on Behalf of the City
Deputy City Manager Phan and Townsend Public Affairs' Niccolo De Luca provided their presentation to the Council and responded to questions from council members.

Mayor Singh opened Public Comment. Seeing no speakers, Mayor Singh closed Public Comment.

Motion: Adopt a resolution approving the 2025 State and Federal Legislative Platform for the City of Union City and authorizing the Mayor or City Manager to sign position letters on behalf of the city.

RESULT: Pass
MOVER: Councilmember Patiño
SECONDER:Councilmember Wang
AYES: Councilmembers Nishihira, Patiño, Wang, Vice Mayor Sakakihara, and Mayor Singh
NOES: None
City Council/RSA Agenda 16 Tuesday, May 27, 2025
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ABSENT: None

Enactment No.: Resolution No. 2025-065

7.2. Adopt a Resolution Amending the Policy Governing Expenses for the City Council
City Attorney Kokotaylo provided staff presentation.

Mayor Singh opened Public Comment. Seeing no speakers, Mayor Singh closed Public Comment.

Motion: Adopt a resolution amending the Policy Governing Expenses for the City Council.

RESULT: Pass
MOVER: Councilmember Nishihira
SECONDER:Vice Mayor Sakakihara
AYES: Councilmembers Nishihira, Patiño, Wang, Vice Mayor Sakakihara, and Mayor Singh
NOES: None
ABSENT: None

Enactment No.: Resolution No. 2025-066

7.3. Adopt a Resolution Authorizing the City Manager to Enter Into a Consulting Services Agreement, in a Form Approved by the City Attorney, With Ascent Environmental, Inc. in the Not-to-Exceed Amount of $394,202 for the Preparation of the City’s Climate Action Plan Update; and Adopt a Resolution Authorizing the Formation of an Ad Hoc Committee for the Climate Action Plan Update
Senior Planner Patel provided staff presentation. He along with Economic and Community Development Director Campbell responded to questions from council members.

Mayor Singh opened Public Comment. Seeing no speakers, Mayor Singh closed the Public Comment Period.

The City Council provided direction to the staff that the composition of a subcommittee in support of the Climate Action Plan Update will be a Brown Act body and, thereby, staff will return at a future date with an amended resolution for the City Council to consider.

Motion: Adopt a resolution authorizing the City Manager to enter into a Consulting Services Agreement, in a form approved by the City Attorney, with Ascent Environmental, Inc. in the Not-to-Exceed amount of $394,202 for the preparation of the City’s Climate Action Plan Update.

RESULT: Pass
MOVER: Vice Mayor Sakakihara
SECONDER:Councilmember Wang
AYES: Councilmembers Nishihira, Patiño, Wang, Vice Mayor Sakakihara, and Mayor Singh
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NOES: None
ABSENT: None

Enactment No.: Resolution No. 2025-067

8. SUCCESSOR AGENCY TO REDEVELOPMENT AGENCY
There were none.

9. AUTHORITIES AND AGENCIES
There were none.

10. CITY COMMISSION / COMMITTEE REPORTS
There were none.

11. ITEMS REFERRED BY COUNCIL
Councilmember Nishihira reported attending the Joint NHUSD-City Subcommittee Meeting on May 5, 2025, and the Human Relations Committee Meeting on April 23, 2025.

Councilmember Wang attended the League of California Cities City Leaders Summit on April 23 and 24, 2025, the Economic Development Advisory Team Meeting on May 1, 2025, and the Joint NHUSD-City Subcommittee Meeting on May 5, 2025.

Vice Mayor Sakakihara attended the Parks and Recreation Commission Meeting on April 9, 2025, and Ava Community Energy Board of Directors and Financial, Administrative and Procurement Subcommittee meetings on April 16 and May 8, 2025, respectively.

Councilmember Patiño attended the League of California Cities City Leaders Summit from April 23 to April 25, 2025, and participated in the League of California Cities Board of Directors Meeting.

Mayor Singh reported attending the League of California Cities City Leaders Summit, the Economic Development Advisory Team Meeting on May 1, 2025, and the Alameda CTC Programs and Projects Committee Meeting in Oakland on May 5, 2025.

12. GOOD OF THE ORDER
Councilmember Patiño reported attending the Chabot College Scholarship Luncheon on May 2, 2025, where he joined Councilmember Emeritus Pat Gacoscos and former Mayor Dutra-Vernaci, representing Friends of Chabot College. He also attended the National Association of Latino Elected Officials (NALEO) Economic Success Seminar in Los Angeles on May 6-7, 2025, which focused on shaping economic success for Latinas and featured participation from major financial institutions and policy think tanks. On May 8, 2025, he attended the Tri-CED 45th Anniversary Gala at the Masonic Homes, where he had the opportunity to reconnect with community leaders, including Jaime Jaramillo from Centro de Servicios. On May 9, 2025, he met with city staff, residents, and contractors to discuss safety concerns at the intersection of Delores Drive and Union City Boulevard. He also announced his acceptance into the WELL UnTapped Fellowship Program, focused on water policy, and will be traveling to Oregon to celebrate his grandmother’s sister’s 100th birthday.

Vice Mayor Sakakihara reported attending the 20th Anniversary New Haven Vaisakhi Event, hosted by the NHUSD Punjabi Parent Advisory Group, at James Logan High School on May 3, 2025. The event highlighted the contributions of the Punjabi community in Union City Council/RSA Agenda 18 Tuesday, May 27, 2025
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City. He also attended the Tri-CED 45th Anniversary Gala on May 8, 2025, celebrating the organization’s longstanding commitment to recycling and community service.

Councilmember Wang reported attending the New Haven Vaisakhi Event hosted by the NHUSD Punjabi Parent Advisory Group on May 3, 2025. He also participated in the Bay Area Asian American Story Awards celebration on May 4, 2025, which honored Asian American leaders and storytellers. He noted that he will be attending the final Youth Commission meeting of the school year on May 15, 2025. He suggested that the City improve online accessibility for Youth Commission applications to encourage greater participation.

Councilmember Nishihira reported attending the New Haven Schools Foundation Fun Run on April 26, 2025, followed by the New Haven Vaisakhi Event hosted by the NHUSD Punjabi Parent Advisory Group on May 3, 2025. On May 6, 2025, he attended the New Haven Schools Foundation Scholarship Luncheon at James Logan High School, where over $255,000 in scholarships were awarded to graduating seniors. On May 10, 2025, he participated in the Alameda Creek Cleanup event alongside his daughter, joining efforts organized by the Alameda County Clean Water Program & California Trout. He noted that both Supervisor Marquez’s office and East Bay Regional Park District partners were in attendance. Earlier today, he attended the New Haven Schools Foundation Grant Presentation, where more than $126,000 in classroom grants were awarded to district teachers. He also plans to attend the Hillview Crest Elementary School Robotics and STEM Magnet Showcase on May 15, 2025.

Mayor Singh expressed his gratitude to Alameda County Board of Supervisors Elisa Márquez and David Haubert, the Alameda County Transportation Commission staff, Mayor Mike Hannon of Newark, and Mayor Karla Brown of Pleasanton for their support of the Quarry Lakes Parkway Project. He noted that their assistance was instrumental in helping the City successfully navigate through key project milestones. He expressed optimism that the project would continue to advance smoothly to the next phase.

13. CLOSED SESSION
There were none.

14. ADJOURNMENT
Mayor Singh adjourned the meeting at 8:58 PM.

Description Type
Action Minutes Attachment
City Council/RSA Agenda 20 Tuesday, May 27, 2025

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MINUTES

CITY OF UNION CITY

SPECIAL MEETING
GARY SINGH, Mayor
SCOTT SAKAKIHARA, Vice Mayor (District 4)
LANCE NISHIHIRA, Councilmember (District 1)
JAMIE PATIÑO, Councilmember (District 2)
JEFF WANG, Councilmember (District 3)
Tuesday, May 20, 2025 | 5:00 PM
City Hall – City Council Conference Room
34009 Alvarado-Niles Road, Union City, CA 94587

1. CALL TO ORDER
Mayor Singh called the meeting to order at 5:00 PM.

2. ROLL CALL
Attendee Name Present
Councilmember Nishihira
Councilmember Patiño
Councilmember Wang
Vice Mayor Sakakihara
Mayor Singh
Yes
Yes
Yes
Yes
Yes

3. ORAL COMMUNICATIONS
Mayor Singh opened Oral Communications. Since there were no speakers, Mayor Singh closed Oral Communications.

4. BOARD AND COMMISSION INTERVIEWS

4.a. Update on Current and Upcoming Board and Commission Vacancies and Recommended Recruitment Schedule
City Clerk Pham provided a staff presentation on current and upcoming board and commission vacancies, including a proposed recruitment timeline. The City City Council/RSA Agenda 21 Tuesday, May 27, 2025
May 20, 2025 | 5:00 PM Page 2 of 2
City Council
Special Meeting Minutes
Council concurred with the City Clerk’s recommendation to begin recruitment on June 3, 2025, with interviews scheduled for the week of July 15, 2025, and to conduct fall recruitment starting September 2, 2025, with interviews scheduled for the week of October 7, 2025.

4.b. Continuation of Interviews for Open Seats on the Sales Tax and Utility Users’ Tax Oversight Committee and Discussion of Potential Appointments The Council interviewed the following applicants:

Sunil Varghese
Raymond Gonzalez
Victor Pulido Lopez
The Council deliberated to fill the vacancies on the Sales Tax and Utility Users’ Tax Oversight Committee. Appointments will be made on May 27, 2025.

14. ADJOURNMENT
Mayor Singh adjourned the meeting at 6:38 PM.

I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Union City on May 27, 2025. /s/Thai Nam Pham, MMC, CPMC
City Clerk
City Council/RSA Agenda 22 Tuesday, May 27, 2025
Agenda Item
DATE: 5/27/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT ARESOLUTION REQUIRINGANNUALAPPROVAL OF COMMISSION MEETING CALENDARS

EXECUTIVE SUMMARY
This report proposes the formal adoption of a policy requiring all City Commissions to establish and adopt their regular meeting calendars for the upcoming calendar year no later than the final meeting of the current calendar year. This policy is intended to promote transparency, support effective governance, and ensure accurate calculation of commissioner attendance in accordance with the Union City Municipal Code and recent updates to the Commission Norms and Guidelines. Adoption of regular calendars will also allow the public and staff to plan for and participate in commission meetings more effectively.

For City Boards and Committees, the adoption of regular meeting calendars will be determined by the City Clerk on a case-by-case basis, taking into consideration the operational needs and frequency of meetings of each body.

STRATEGIC PLAN ALIGNMENT
This action supports the following goals of the City’s Strategic Plan:

Goal B - Governance and Organization Effectiveness: This policy formalizes meeting planning processes, clarifies commissioner expectations, and improves governance practices across all commissions. By establishing meeting calendars in advance, the City promotes efficiency and accountability in public meeting operations.

Goal E – Communication and Outreach: Establishing regular meeting calendars in advance improves transparency and ensures that meeting information is accessible to the public. This fosters greater civic engagement and trust in local government decision-making processes.

BACKGROUND
At its April 28, 2025, meeting, the Legislation and Policy Committee discussed the importance of standardizing meeting scheduling practices to improve public transparency, support staff planning, and clarify attendance expectations for Commissioners. Establishing regular meeting calendars in advance will also assist in accurately calculating commissioner attendance compliance on a calendar year basis as outlined in UCMC Section 2.20.040 and recently adopted Ordinance No. 2025-001.

Currently, while many commissions informally plan their meetings, there is no formal requirement for them to adopt and publish a meeting calendar prior to the start of each year.

DISCUSSION
The proposed policy will require all City Commissions to formally adopt a regular meeting calendar for the upcoming year no later than their final meeting of the current year. This will ensure that commissioners, staff, and the public are aware of the regular meeting schedule in advance and City Council/RSA Agenda 23 Tuesday, May 27, 2025
that attendance calculations are based on a clearly defined set of scheduled meetings.

For City Boards and Committees, the City Clerk will determine the necessity of adopting a formal calendar based on each body's meeting frequency, statutory or policy requirements, and operational needs.

This policy supports the City’s goals of enhancing governance transparency, promoting accountability, and improving operational efficiency.

FISCAL IMPACT
There is no fiscal impact associated with this action.

RECOMMENDATION
Staff recommends that the City Council adopt a resolution requiring all City Commissions to establish and adopt their regular meeting calendars for the upcoming calendar year no later than the last regular meeting of the current calendar year. For City Boards and Committees, the adoption of regular meeting calendars will be determined on a case-by-case basis by the City Clerk in consultation with the relevant staff liaisons.

Prepared by:

Thai Nam Pham, City Clerk
Submitted by:

Thai Nam Pham, City Clerk
ATTACHMENTS:

Description Type
Draft Resolution Resolution
City Council/RSA Agenda 24 Tuesday, May 27, 2025
RESOLUTION NO. 2025-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

ESTABLISHING A POLICY FOR THE ADOPTION OF ANNUAL

REGULAR MEETING CALENDARS BY CITY COMMISSIONS
WHEREAS, the City Council recognizes the importance of promoting good governance, transparency, and accountability in the scheduling of commission meetings; and
WHEREAS, there is a need for clearly defined regular meetings to calculate attendance compliance and promote public access to commission proceedings; and WHEREAS, the City Council desires to formalize the practice of adopting regular meeting calendars for the upcoming calendar year to provide certainty and improve administrative planning.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Union City as follows:

1. All City Commissions shall formally adopt a regular meeting calendar for the upcoming calendar year no later than the last regular meeting held in the current calendar year.

2. City Boards and Committees shall determine whether to adopt a regular meeting calendar on a case-by-case basis as determined by the City Clerk in consultation with the staff liaison.

City Council/RSA Agenda 25 Tuesday, May 27, 2025
Resolution No. 2025-XXX
Adoption of Annual Meeting Calendar for City Commissions

Page 2 of 2 ends

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 27th day of May 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
City Council/RSA Agenda 26 Tuesday, May 27, 2025
Agenda Item
DATE: 5/27/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT A RESOLUTION APPOINTING MEMBERS TO THE SALES TAX AND UTILITY USERS’ TAX

COMMITTEE AND APPROVING STRUCTURALAND TERM MODIFICATIONS

EXECUTIVE SUMMARY
Staff has prepared a resolution for the Mayor’s appointments, subject to City Council approval, to fill vacancies and expiring terms on the Sales Tax and Utility Users’ Tax Committee. This report also outlines proposed modifications to the committee structure, including:

1. Transitioning the committee from designated commission representatives to at-large members

2. Extending the term length from two years to four years

3. Implementing staggered terms to ensure continuity and provide the City Council with ongoing appointment opportunities If approved, the initial terms will be staggered as follows:

Three (3) members will serve an incomplete term ending December 31, 2025, then transition into a full four-year term from January 1, 2026, to December 31, 2029
Two (2) members will serve an incomplete term ending December 31, 2027, then transition into a full four-year term from January 1, 2028, to December 31, 2031
These changes align with Resolution No. 2025-029, which standardizes appointment and expiration dates for all City boards, commissions, and committees.

STRATEGIC PLAN ALIGNMENT
Goal E. Communication and Outreach: Build strong connections with community partners, residents and employees.

BACKGROUND
On March 23, 2021, the City Council adopted Resolution No. 5735-21, forming the Sales Tax and Utility Users’ Tax Oversight Committee (Oversight Committee) to ensure transparency and accountability regarding the allocation of revenues from the voter-approved half-cent sales tax (MeasureAA) and the utility users’ tax (Measure WW). The committee is responsible for reviewing revenue and expenditures and reporting its findings annually to the City Council.

Currently, the committee is composed of designated representatives from various Union City commissions, including:

One member from the Human Relations Commission
One member from the Planning Commission
One member from the Parks and Recreation Commission
One member from the Senior Commission
One at-large citizen member
City Council/RSA Agenda 27 Tuesday, May 27, 2025
However, the proposed appointments modify the composition of the committee to consist entirely of at-large members. Under this proposed change, members of other Union City commissions and committees would still be eligible to serve but would not be required to represent a specific commission. This change broadens the pool of applicants and allows greater flexibility in the appointment process.

Additionally, the current two-year term for committee members is proposed to be extended to four years to align with other City boards and commissions. However, to ensure that the City Council continues to have appointment opportunities on an ongoing basis, terms will be staggered as follows:

Three (3) members will serve an incomplete term ending December 31, 2025, then transition into a full four-year term from January 1, 2026, to December 31, 2029.

Two (2) members will serve an incomplete term ending December 31, 2027, then transition into a full four-year term from January 1, 2028, to December 31, 2031.

This staggered approach ensures continuity while giving future City Councils the opportunity to appoint new members at regular intervals.

DISCUSSION
Pursuant to California Government Code § 40605, the Mayor has the authority to appoint members to boards, commissions, and committees, subject to City Council approval.

Following the recruitment process, the Mayor has nominated the following individuals for appointment to the Sales Tax and Utility Users’ Tax Committee:

Name Initial Term Ends Full Term Begins Full Term Ends
Raymond Gonzalez December 31, 2027 January 1, 2028 December 31, 2031 Albert Chin December 31, 2027 January 1, 2028 December 31, 2031 Sunil Varghese December 31, 2025 January 1, 2026 December 31, 2029 Santiago Gonzalez December 31, 2025 January 1, 2026 December 31, 2029 Jasbir Kaur December 31, 2025 January 1, 2026 December 31, 2029 The City Council conducted interviews on April 1, 2025, and May 20, 2025, to evaluate candidates for appointment. If approved, new committee members will begin their staggered terms immediately.

FISCAL IMPACT
There is no fiscal impact associated with this item. The administrative costs related to recruitment, processing applications, and conducting interviews are covered within the existing budget of the City Clerk’s Office.

RECOMMENDATION
Staff recommends that the City Council consider the Mayor's appointments to the Sales Tax and Utility Users’ Tax Committee, and if approved, adopt the attached resolution to:

1. Confirm the appointments, which are members at-large,

2. Approve the extension of committee member terms from two years to four years, and

3. Approve the implementation of staggered terms to provide ongoing appointment opportunities.

Prepared by:

Thai Nam Pham, City Clerk
Submitted by:

Thai Nam Pham, City Clerk
ATTACHMENTS:

Description Type
City Council/RSA Agenda 28 Tuesday, May 27, 2025
Draft Resolution Resolution
City Council/RSA Agenda 29 Tuesday, May 27, 2025
RESOLUTION NO. 2025-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY APPOINTING INDIVIDUALS TO THE SALES TAX AND UTILITY USERS’

TAX COMMITTEE, APPROVING THE TRANSITION TO AT-LARGE

MEMBERS, AND ESTABLISHING STAGGERED TERMS
WHEREAS, the City of Union City established the Sales Tax and Utility Users’ Tax Oversight Committee (the “Committee”) under Resolution No. 5735-21 to ensure transparency and accountability in the allocation of revenues from Measure AA (Sales Tax) and Measure WW (Utility Users’ Tax); and
WHEREAS, the Committee is currently composed of designated representatives from various City commissions, including the Human Relations Commission, Planning Commission, Parks and Recreation Commission, and Senior Commission, along with one at-large citizen member; and
WHEREAS, staff has proposed transitioning the Committee to consist entirely of at-large members to expand participation and increase flexibility in the appointment process while still allowing members of other Union City commissions and committees to serve; and
WHEREAS, the City Council wishes to extend Committee member terms from two years to four years to ensure greater continuity and institutional knowledge; and WHEREAS, the City Council also seeks to implement staggered terms to provide for ongoing appointment opportunities and maintain a balance of experienced and new members on the Committee; and
WHEREAS, per Resolution No. 2025-029, all new appointments to City boards, commissions, and committees shall align with the calendar year, commencing on January 1 and expiring on December 31 of the final year of their term.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Union City as follows:

SECTION 1. The City Council approves the transition of the Sales Tax and Utility Users’ Tax Oversight Committee to an at-large membership format, eliminating the requirement for designated representatives from specific commissions.

SECTION 2. The City Council extends the term length for Committee members from two years to four years, aligning with the structure of other City boards and commissions.

City Council/RSA Agenda 30 Tuesday, May 27, 2025
Resolution No. 2025-XXX
Appointing Members to the Sales Tax and Utility Users’ Tax Committee and Establishing Staggered Terms

Page 2 of 2 ends

SECTION 3. The City Council establishes staggered terms as follows:

Name Initial Term Ends Full Term
Begins
Full Term Ends
Raymond
Gonzalez
December 31,
2027
January 1, 2028 December 31,
2031
Albert Chin December 31,
2027
January 1, 2028 December 31,
2031
Sunil Varghese December 31,
2025 January 1, 2026 December 31, 2029
Santiago
Gonzalez
December 31,
2025 January 1, 2026 December 31, 2029
Jasbir Kaur December 31,
2025
January 1, 2026
December 31,
2029
SECTION 4. The City Clerk is directed to ensure that all new appointments comply with the staggered term structure and update City records accordingly.

SECTION 5. This resolution shall take effect immediately upon adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on this 27th day of May 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
City Council/RSA Agenda 31 Tuesday, May 27, 2025
Agenda Item
DATE: 5/27/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT ARESOLUTION AUTHORIZING THE FORMATION OF ACLIMATE ACTION PLAN TASK FORCE

EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the attached Resolution (Attachment 1), authorizing the formation of a Climate Action Plan Task Force. This staff report outlines the structure and membership composition for the Task Force, which will play an advisory role in guiding the development of the updated Climate Action Plan. The formation of the Task Force is in response to the direction provided by the City Council at its regular meeting held on May 13, 2025.

STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with the following:

Goal D, Strategy 8. Update the Climate Action Plan and also include regional goals in the plan. (Council Priority)

BACKGROUND
The City’s Climate Action Plan (CAP), adopted in 2010, included the establishment of a Climate Protection Task Force, a 16-member committee authorized by City Council Resolution 4063-10. The mandate of that Task Force was to “...represent the diverse interests of Union City throughout the [CAP] process, and to provide comments on the draft CAP.” The composition of the Task Force encompassed representation from the City Council, Planning Commission, Union Sanitary District Board, New Haven Unified School District, Chamber of Commerce, and citizen representatives. Over a 10-month period, the Task Force convened five meetings to deliberate on key sectors and identify potential mitigation measures relevant to Union City.

In preparation for the CAP Update, a key component of the planning process involves the creation of an advisory body, much like the 2010 Task Force, to provide guidance and feedback at critical milestones in the process. At its regular meeting on February 11, 2025, the City Council voted 4-1 to place on a future agenda the consideration of forming anAd Hoc Committee to support the CAP Update.

DISCUSSION
At its regular meeting on May 13, 2025, the City Council considered staff’s recommendation to adopt a Resolution authorizing the formation of anAd Hoc Committee to advise on the Climate Action Plan (CAP) Update. During the meeting, the CityAttorney advised the Council that the proposed composition of the Ad Hoc Committee would not comply with the BrownAct. Specifically, the inclusion of individuals outside the City Council would result in the committee being classified as a legislative body, thereby subjecting it to the full requirements of the BrownAct.

In light of this, staff has revised the proposed structure to ensure compliance with applicable open meeting laws while maintaining the City’s commitment to public engagement and transparency. The proposed structure is also informed by the direction provided by the City Council its May 13, 2025 meeting.

Task Force Composition and Selection Process
Staff recommends the formation of a Climate Action Plan Task Force composed of the following members:

Two City Councilmembers;
City Council/RSA Agenda 32 Tuesday, May 27, 2025
One member from the Planning Commission;
One member from the Human Relations Commission;
One member from the Parks and Recreation Commission; and Two community members.

The proposed Task Force will consist of seven members to ensure effective deliberation and timely input, while still reflecting a diversity of perspectives.

To identify the community members, staff will publicize the opportunity using the City’s outreach platforms. Interested individuals will be invited to submit applications and interviews may be held depending on the number of applications received. Staff will review all submissions and forward candidates to the Mayor for consideration subject to City Council approval. City Councilmembers serving on the Task Force will be selected by the Mayor subject to City Council approval. Similarly, each of the respective Commissions listed above will be asked to recommend one representative for consideration by the Mayor subject to City Council approval.

FISCAL IMPACT
There is no impact to the General Fund.

RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution, authorizing the formation of a Climate Action Plan Task Force.

Prepared by:

MAYANK PATEL, SENIOR PLANNER
Submitted by:

CARMELA CAMPBELL, ECONOMIC AND COMMUNITYDEVELOPMENT DIRECTOR ATTACHMENTS:

Description Type
Draft Resolution Resolution
City Council/RSA Agenda 33 Tuesday, May 27, 2025
RESOLUTION NO. 2025-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

AUTHORIZING THE FORMATION OF A TASK FORCE FOR THE

CLIMATE ACTION PLAN UPDATE
WHEREAS, the State of California, through legislation such as Assembly Bill 32, Executive Order B-30-15, Senate Bill 32, and Executive Order N-79-20, has established ambitious goals for the reduction of greenhouse gas (GHG) emissions to mitigate the impacts of climate change; and
WHEREAS, the City of Union City (City) is committed to addressing climate change and reducing its contribution to GHG emissions in alignment with state goals and local priorities; and
WHEREAS, the City adopted its Climate Action Plan (CAP) in 2010 and set a GHG reduction target of 20 percent below 2005 levels by 2020; and WHEREAS, the City recognizes the need to update its CAP to respond to state mandates, implement best practices, and identify local strategies that are actionable and cost-effective in addressing climate change; and
WHEREAS, the City Council’s Strategic Plan identifies Goal D, Strategy 8, which calls for the CAP Update as a Council priority; and
WHEREAS, a collaborative and inclusive process that engages residents, businesses, community organizations, and other stakeholders is crucial for the successful development and adoption of a CAP that reflects the unique needs and priorities of Union City; and
WHEREAS, at its Regular Meeting on February 11, 2025, the City Council voted 4-1 to agendize consideration of an advisory committee for the CAP Update; and WHEREAS, the role of the advisory committee will be to provide feedback on the CAP Update at various milestones in the update process.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Union City hereby forms the Climate Action Plan Update Task Force, subject to the Brown Act, consisting of the following:
 Two (2) City Council Members;
 One (1) member from the Planning Commission;
 One (1) member from the Human Relations Commission;
 One (1) member from the Parks and Recreation Commission; and  Two (2) community members; and
City Council/RSA Agenda 34 Tuesday, May 27, 2025
Resolution No. 2025-XXX
Task Force for the Climate Action Plan Update

Page 2 of 2 ends

BE IT FURTHER RESOLVED that the Climate Action Plan Update Task Force members shall be appointed by the Mayor, subject to City Council approval pursuant to the following process:
 City Council Representatives. Councilmembers will be appointed by the Mayor subject to Council approval.
 Commission Representatives. The Planning, Human Relations, and Parks and Recreation Commissions will recommend one representative.  Community Representatives. City staff will publicize the opportunity through the City’s communication platforms (e.g., website, social media, and community networks) to invite interested individuals to submit an application.

City staff will review all submissions to the Mayor for consideration.  Final Appointments and Confirmation. All appointments will be made by the Mayor subject to City Council approval; and
BE IT FURTHER RESOLVED that once the CAP Update concludes, the Task Force will dissolve.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on this 27th day of May 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
City Council/RSA Agenda 35 Tuesday, May 27, 2025
Agenda Item
DATE: 5/13/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT A RESOLUTION APPROVING THE REDISTRIBUTION OF UNSPENT AND RELINQUISHED FUNDS FOR THE CITY COUNCIL’S TRAVEL AND TRAINING BUDGET IN FY 2024-2025, IN ADDITION TO RETURNING

UNUSED FUNDS TO THE GENERAL FUND

EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the attached resolution approving the redistribution of unspent and relinquished funds for the City Council’s Travel and Training Budget in Fiscal Year 2024-2025, in addition to returning unused funds to the General Fund.

STRATEGIC PLAN ALIGNMENT
This agenda item is not identified in the City Council Strategic Plan nor is it directly correlated to a specific priority or goal.

BACKGROUND
On November 28, 2023, via Resolution No. 6234-23, the City Council amended its Policy Governing Expenses for the City Council (“Policy”).

The Policy provides that the Travel and Training Budget be established in a set amount per Councilmember during the biennial budget process.

For Fiscal Year 2024-2025, the total budget allocation is $30,000 distributed as follows: $10,000 for the Mayor and $5,000 for each City Councilmember.

In its latest revision to the Policy, on May 13, 2025 the City Council adopted Resolution No. 2025-066. The amendments to the Policy were as follows: 1) remove the $2,000 cap on redistribution; 2) eliminate the provided examples for per diem reimbursements but make no substantive revision to the Policy in this regard; 3) remove the cash advance provision; 4) increase the days for submitting for an expense reimbursement from 30 to 45 days; and 5) add clarifying language regarding access to IT equipment.

Under Section III of the Policy, it outlines the process by which Councilmembers that do not intend to expend their budgeted funds during the remainder of the fiscal year may voluntarily elect to relinquish those funds. The decision by a Councilmember to relinquish funds is entirely voluntary, but is final and irrevocable. Annually at the first meeting in May, any relinquished funds will be evenly distributed to Councilmembers that have elected to not relinquish their funds for the remainder of the fiscal year. The relinquished funds will continue to be evenly distributed until outstanding expenses have been reimbursed for each Councilmember that has elected to not relinquish their funds and shall continue to be distributed until there are no outstanding expenses left or until the relinquished funds have been completely exhausted.

DISCUSSION
The attached resolution for this item would approve the redistribution of unspent and relinquished funds for the City Council’s Travel and Training Budget in Fiscal Year 2024-2025.

Vice Mayor Scott Sakakihara has voluntarily elected to relinquish $815.00 of his unspent funds. Per the Policy, these relinquished funds are to be City Council/RSA Agenda 36 Tuesday, May 27, 2025
evenly redistributed to the Councilmembers who have not relinquished any funds but that have outstanding expenses. This includes Councilmember Jaime Patiño and Councilmember Jeff Wang. The adjusted budget allocation for each Councilmember’s Travel and Training Budget for FY2024-2025 is as follows:

COUNCILMEMBER ADJUSTED BUDGET FOR FY2024-2025
Mayor Gary Singh $10,000.00
Vice Mayor Scott Sakakihara $4,185.00
Councilmember Lance Nishihira $5,000.00
Councilmember Jaime Patiño $5,407.50
Councilmember Jeff Wang $5,407.50
The total budget for City Council’s Travel and Training in FY2024-2025 is $30,000.00 as adopted during the budget process.

FISCAL IMPACT
The fiscal impact of City Council taking the recommended action is a redistribution of funds within the City Council’s overall Travel and Training Budget. Any unused funds at the end of the fiscal year will be returned to the General Fund.

RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution approving the redistribution of unspent and relinquished funds for the City Council’s Travel and Training Budget in Fiscal Year 2024-2025, in addition to returning unused funds to the General Fund.

Prepared by:

Jennifer Phan, Deputy City Manager
Submitted by:

Jennifer Phan, Deputy City Manager
ATTACHMENTS:

Description Type
Draft Resolution Resolution
Resolution No. 2025-066 - Policy Governing Expenses of the City Council Attachment Desk Item- Total Expenditures Submitted to Date Attachment City Council/RSA Agenda 37 Tuesday, May 27, 2025
RESOLUTION NO. 2025-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

APPROVING THE REDISTRIBUTION OF UNSPENT AND
RELINQUISHED FUNDS FOR THE CITY COUNCIL’S TRAVEL AND
TRAINING BUDGET IN FY 2024-2025, IN ADDITION TO RETURNING

UNUSED FUNDS TO THE GENERAL FUND
WHEREAS, the City of Union City is committed to fiscal prudence and being responsible stewards over the use of public resources; and WHEREAS, Councilmembers in their official capacity and as representatives of the City may participate in regional, state, and national organizations whose activities affect the City, as well as attend conferences and events related to the City, that may serve or benefit its residents; and
WHEREAS, on May 13, 2025, the City Council adopted Resolution No. 2025-066 approving amendments to the Policy Governing Expenses for the City Council (“Policy”), which provides standards on the use and expenditure of City resources in accordance with the requirements of Government Code Sections 53232.2 and 53233.3; and WHEREAS, the Policy set forth a process for annual reporting and redistribution of unspent funds related to travel; and
WHEREAS, Councilmembers who do not intend to expend their budgeted funds during the remainder of the fiscal year may voluntarily elect to relinquish those funds; and WHEREAS, annually at the first meeting in May, any relinquished funds will be evenly distributed to Councilmembers who have elected not to relinquish their funds for the remainder of the fiscal year; and
WHEREAS, the relinquished funds will continue to be evenly distributed until outstanding expenses have been reimbursed for each Councilmember that has elected not to relinquish their funds and shall continue to be distributed until there are no outstanding expenses left or until the relinquished funds have been completely exhausted; and
WHEREAS, the decision by a Councilmember to relinquish funds is entirely voluntary, but is final and irrevocable, and any unused funds at the end of the fiscal year would be returned to the General Fund; and
WHEREAS, for FY 2024-2025, Vice Mayor Scott Sakakihara has voluntarily elected to relinquish $815.00 of his unspent funds; and WHEREAS, in accordance with the Policy, these relinquished funds are to be evenly redistributed in the amount of $407.50 per individual to Councilmember Jaime Patiño and Councilmember Jeff Wang, who have not relinquished any funds and have outstanding expenses.

City Council/RSA Agenda 38 Tuesday, May 27, 2025
Resolution No. 2025-XXX
Approving Redistribution of Travel Funds

Page 2 of 2 ends

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby approves the redistribution of unspent and relinquished funds for the City Council’s Travel and Training Budget in FY 2024-2025, in addition to any unused funds at the end of the fiscal year to be returned to the General Fund.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on this 27th day of May 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
City Council/RSA Agenda 39 Tuesday, May 27, 2025
RESOLUTION NO. 2025-066

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

AMENDING THE POLICY GOVERNING EXPENSES FOR THE CITY

COUNCIL
WHEREAS, the City of Union City takes its stewardship over the use of its limited public resources seriously; and
WHEREAS, public resources should only be used when there is a substantial benefit to the City; and
WHEREAS, such benefits include participation in regional, state and national organizations whose activities affect the City, as well as attendance at conferences and events related to the City and its residents; and
WHEREAS, Councilmembers sometimes participate, in their official capacity, as a representative of the City at events benefitting civic, cultural, charitable and educational organizations that serve or benefit City residents; and WHEREAS, Councilmembers’ attendance at these types of events provides a substantial benefit to the City; and
WHEREAS, the City Council previously adopted a policy to provide standards on the use and expenditure of City resources in accordance with the requirements of Government Code sections 53232.2 and 53233.3; and
WHEREAS, in 2025, the City Council referred consideration of the City Council travel and expense budget to the Legislation & Policy Committee; and WHEREAS, the Legislation & Policy Committee considered the City Council travel and expense budget and now recommends an amendment to the Policy Governing Expenses of the City Council.

NOW, THEREFORE BE IT RESOLVED THAT the City Council of the City of Union City hereby approves an amendment to the Policy Governing Expenses of the City Council attached hereto as Exhibit A, with revisions reflected in strikethrough and underline for reference, in accordance with Government Code sections 53232.2 and 53233.3.

BE IT FURTHER RESOLVED THAT the policy contained in Exhibit A shall supersede and control over any previously adopted policy regarding the same matters.

Docusign Envelope ID: 5F2AF622-25DA-4002-A2AB-10DBBBF3A7D1 City Council/RSA Agenda 40 Tuesday, May 27, 2025
Resolution No. 2025-066
Amending the Policy Governing Expenses for the City Council

Page 2 of 2 ends

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 13th day of May 2025 by the following vote:

AYES: Councilmembers Nishihira, Patiño, Wang, Vice Mayor Sakakihara, and Mayor Singh
NOES: None
ABSENT: None
ABSTAIN: None
APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
Attachments:

1. Exhibit A – Amended Policy Governing Expenses of the City Council Docusign Envelope ID: 5F2AF622-25DA-4002-A2AB-10DBBBF3A7D1 5/15/2025
City Council/RSA Agenda 41 Tuesday, May 27, 2025

CITY COUNCIL POLICY
Subject: Policy Governing Expenses of the City Council
Adopted: May 13, 2025
I. PURPOSE
a. City Councilmembers must incur miscellaneous expenses in fulfilling the responsibilities of an elected official. This policy establishes the guidelines and standards regarding miscellaneous expenditures incurred by members of the City Council for all travel, education, training, communications, and all out-of-pocket expenses. b. Out-of-pocket expenses incurred by a Councilmember in the performance of their official duties as a representative of the City are eligible for reimbursement as provided in this policy. The guidelines established in this policy are to ensure that travel expenses serve a public purpose and benefit to the City.

II. AUTHORIZED EXPENSES.
a. City funds, equipment, supplies including letterhead, titles, and staff time must only be used for authorized City business. Expenses incurred in connection with the following types of activities generally constitute authorized expenses, as long as the other requirements of this policy are met:

1. Communicating with representatives of regional, state and national government on City adopted policy positions;

2. Attending educational seminars designed to improve officials' skill and information levels;

3. Participating in regional, state and national organizations whose activities affect the City's interests; and

4. Attending City events.

All other expenditures require prior approval by the City Council. In addition, expenses for international travel requires prior City Council approval. b. State law prohibits personal use of public resources. Examples of personal expenses that the City will not reimburse include, but are not limited to:

1. The personal portion of any trip;

2. Political or charitable contributions or events;

3. Family expenses, including partner's expenses when accompanying official on agencyrelated business, as well as children- or pet-related expenses;

4. Entertainment expenses, including theater, movies (either in-room or at the theater), sporting events (including gym, massage and/or golf related expenses), or other cultural events;
Docusign Envelope ID: 5F2AF622-25DA-4002-A2AB-10DBBBF3A7D1 City Council/RSA Agenda 42 Tuesday, May 27, 2025

5. Non-mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline; and

6. Personal losses incurred while on City business.

Expenses for which City Councilmembers receive reimbursement from another agency are not reimbursable under this Policy. Any questions regarding the propriety of a particular type of expense should be resolved by the City Manager before the expense is incurred.

III. BUDGET.
a. Councilmembers shall not incur more expenses per year than budgeted. These amounts will be established in a set amount per Councilmember during the biennial budget process.

Annually, at the first regular City Council meeting in May, any Councilmember that does not intend to expend their budgeted travel funds during the remainder of the fiscal year may voluntarily elect to relinquish those funds. The decision to relinquish funds is final and irrevocable. Relinquished funds will be evenly distributed to Councilmembers that have elected to not relinquish their funds for the remainder of the fiscal year. The relinquished funds will continue to be evenly distributed until outstanding expenses have been reimbursed for each Councilmember that has elected to not relinquish their funds and shall continue to be distributed until there are no outstanding expenses left or until the relinquished funds have been completely exhausted. In no event will the redistributed amount be greater than an additional amount of $2,000 per Councilmember. City Councilmembers are not eligible to receive additional budget except through the process outlined in this subsection. b. Councilmembers who incur expenses greater than the maximum permitted by this policy shall be responsible for the excess expenses.

IV. COST CONTROL.

To conserve City resources and keep expenses within community standards for public officials, expenditures should adhere to the following guidelines. In the event that expenses are incurred which exceed these guidelines, the cost borne or reimbursed by the City will be limited to the costs that fall within the guidelines.
a. Transportation. The most economical mode and class of transportation reasonably consistent with scheduling needs and cargo space requirements must be used, using the most direct and time-efficient route. Government and group rates must be used when available.

1. Airfare. Airfares that are equal or less than those available through the Enhanced Local Government Airfare Program offered through the League of California Cities (www.cacities.org/travel) and the State of California are presumed to be the most economical and reasonable for purposes of reimbursement under this policy. Receipts are required for payment or reimbursement of airfare.

2. Automobile. Automobile mileage is reimbursed at the Internal Revenue Service rate in effect at the time of travel. The reimbursement rate is designed to compensate the driver Docusign Envelope ID: 5F2AF622-25DA-4002-A2AB-10DBBBF3A7D1 City Council/RSA Agenda 43 Tuesday, May 27, 2025
for gasoline, insurance, maintenance, and other expenses associated with operating the vehicle. This amount does not include bridge and road tolls, which are also reimbursable.

3. Car Rental. Car rental rates that are equal or less than those available through the State of California's website (http://www.catravelsmart.com/default.htm) shall be considered the most economical and reasonable for purposes of reimbursement under this policy.

Receipts are required for payment or reimbursement of car rental expenses.

4. Taxis/Shuttles. Taxis, shuttles, or rideshare trips (such as Lyft/Uber) fares may be reimbursed, including a 15 percent gratuity per fare, when the cost of such fares is equal or less than the cost of car rentals, gasoline and parking combined, or when such transportation is necessary for time-efficiency.
b. Lodging. Lodging expenses will be reimbursed or paid for when travel on official City business reasonably requires an overnight stay. Receipts are required for payment or reimbursement of lodging expenses.

1. Conferences/Meetings. If such lodging is in connection with a conference, lodging expenses must not exceed the group rate published by the conference sponsor for the meeting in question if such rates are available at the time of booking. If the group rate is not available, see next section.

2. Other Lodging. Travelers must request government rates, when available. A listing of hotels offering government rates in different areas is available at http://www.catravelsmart.com/lodguideframes.htm. Lodging rates that are equal or less than government rates are presumed to be reasonable and hence reimbursable for purposes of this policy.

If lodging rates exceed the government rate for the area, actual lodging costs may be reimbursed conditioned upon performance of a good faith effort evidenced by documentation (e.g., internet search or phone calls) that demonstrate an attempt to find median-priced lodging.
c. Meals. Meal expenses and associated gratuities will be reimbursed up to the regular federal M&IE per diem rate established for Oakland, California, in effect at the time the meal expenses are incurred. The regular federal M&IE per diem rate for Oakland at the time of the adoption of this policy allocated by meal is as follows:

1. Breakfast: $16

2. Lunch: $17

3. Dinner: $28

4. Incidental Expenses: $5

5. Total: 66
The City will not pay for alcohol/personal bar expenses or for meal expenses for third parties.

Docusign Envelope ID: 5F2AF622-25DA-4002-A2AB-10DBBBF3A7D1 City Council/RSA Agenda 44 Tuesday, May 27, 2025
d. Airport Parking. Long-term parking must be used for travel exceeding 24 hours. Receipts are required for payment or reimbursement of parking expenses.

V. CASH ADVANCES.RESERVED.
a. From time to time, it may be necessary for an official to request a cash advance to cover anticipated expenses while traveling or doing business on the City's behalf. Such request for an advance should be submitted to the City Manager ten (10) days prior to the need for the advance with the following information:

1. The purpose of the expenditure(s);

2. The benefits of such expenditure to the residents of the City;

3. The anticipated amount of the expenditure(s) (for example, hotel rates, meal costs, and transportation expenses); and

5. The dates of the expenditure(s).
b. Any unused advance must be returned to the City within seven (7) days of the official's return, along with a City expense report and receipts documenting how the advance was used in compliance with this expense policy.
c. In the event the City Manager is uncertain as to whether a request complies with this policy, such individual must seek resolution from the City Council.

VI. EXPENSE REPORT CONTENT AND SUBMISSION DEADLINE.

All cash advance expenditures expense reimbursement requests must be submitted on an expense report form provided by the City. Councilmembers must submit their expense reports within 45 30 days of an expense being incurred, accompanied by receipts documenting each expense.

Inability to provide such documentation in a timely fashion will result in the expense being borne by the official. Expenses for which no receipt is provided shall not be eligible for reimbursement.

At the request of the City Manager, a Councilmember shall submit additional information explaining how the incurred expense complied with this policy.

VII. ELECTRONIC EQUIPMENT
a. Computers. Councilmembers are required to have certain types of office equipment to discharge their functions and communicate with staff. Accordingly, Councilmembers will be provided with a laptop, tablet, or similar device to assist with carrying out their duties.

Councilmembers will also be provided with reasonable IT support to ensure the security and functionality of the device.
b. Cell Phone. As a representative of the City, the Mayor communicates frequently with constituents, community groups and other regional leaders. To facilitate this communication on behalf of the City, the Mayor shall be provided a cellular telephone. c. Requirements. The City’s IT Manager Director will provide the City Council with technology options for selection and use be responsible for selecting the equipment to be Docusign Envelope ID: 5F2AF622-25DA-4002-A2AB-10DBBBF3A7D1 City Council/RSA Agenda 45 Tuesday, May 27, 2025
provided to Councilmembers pursuant to this section. Any electronic equipment provided to a Councilmember shall be used exclusively for City business reasonable necessary to discharge the duties of office and shall be immediately returned to the City upon the Councilmembers leaving office
VIII. AUDITS OF EXPENSE REPORTS.

All expenses are subject to verification that they comply with this policy.

IX. REPORTS TO CITY COUNCIL.

At the following City Council meeting, each official shall briefly report orally or in writing on meetings attended at Council expense. If multiple officials attended, a joint report may be made.

X. COMPLIANCE WITH LAWS.

City Councilmembers should keep in mind that some expenditures may be subject to reporting under the Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under the Public Records Act.

XI. VIOLATION OF THIS POLICY.

Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the following: (a) loss of reimbursement privileges; (b) a demand for restitution to the City; (c) the City's reporting the expenses as income to the elected official to state and federal tax authorities; (d) civil penalties of up to $1,000 per day and three times the value of the resources used; and (e) prosecution for misuse of public resources.

Docusign Envelope ID: 5F2AF622-25DA-4002-A2AB-10DBBBF3A7D1 City Council/RSA Agenda 46 Tuesday, May 27, 2025
Mayor Singh
Vice-Mayor
Sakakihara
Council Member
Nishihira
Council
Member Patiño
Council Member
Wang
TOTAL SUBMITTED EXPENDITURES (AS OF MAY 23, 2025) $6,588.33 $0.00 $1,819.01 $8,782.85 $10,777.11 $27,967.30FY 2024-2025 BUDGET $10,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $30,000.00 FY 2024-2025 AMENDMENTS (IF ANY) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 FY 2024-2025 AMENDED BUDGET $10,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $30,000.00 FY 2024-2025 REMAINING BUDGET $3,411.67 $5,000.00 $3,180.99 ($3,782.85) ($5,777.11) $2,032.70 City of Union City
Travel Expenses - City Council
FY 2024-2025 - $30,000

COUNCIL MEMBER
May 27, 2025 City Council Regular Meeting
Desk Item - Agenda Item # 5.7
City Council/RSA Agenda 47 Tuesday, May 27, 2025
Agenda Item
DATE: 5/27/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR FUNDING ASSIGNED BY

MTC AND COMMITTING ANY NECESSARY MATCHING FUNDS AND STATING ASSURANCE TO COMPLETE THE BLOCK 5 MOBILITYHUB PROJECT, CITYPROJECT NO. 25-22

EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution approving local support for the filing of an application to the Metropolitan Transportation Commission (MTC) for a discretionary funding allocation from the Regional Mobility Hubs Program, in the amount of $2,259,000, for the Block 5 Mobility Hub Project, City Project No. 25-22.

STRATEGIC PLAN ALIGNMENT
This is an efficiency and safety improvement project and is aligned with the following:

Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s capital improvement plan.

BACKGROUND
The Metropolitan Transportation Commission’s regional One Bay Area Grant Program (OBAG 3) includes funding for several initiatives to support local implementation of key Plan Bay Area 2050 (PBA 2050) strategies. At the September 2024 meeting of the Joint MTC Planning and Association of Bay Area Governments (ABAG) Administrative Committee, the agenda focused on a coordinated call for projects to be released that would support capital expenses related to implementation of parking management plans, mobility hub elements, charging infrastructure for electric vehicles, and technical assistance to support construction of active transportation projects on MTC’s Active Transportation Network.

On September 30, 2024, MTC staff released the coordinated call for projects for Transportation-Oriented Communities (TOC) Policy planning and capital investments, with $15 million in total available funding for Regional Mobility Hubs. Project applications were due December 20, 2024.

On December 20, 2024, staff submitted an application requesting $3 million for the Regional Mobility Hubs Program funding for the Block 5 Mobility Hub Program.

DISCUSSION
The Capital Implementation Grant Awards were announced at the MTC Planning Committee meeting on March 14, 2025. There were four applications for Regional Mobility Hubs funding and Union City’s application was selected for an award in the amount of $2,259,000 (Exhibit A).

As part of the requirements for the federal funds to be officially obligated, staff is tasked with completing the following steps:

Present the Complete Streets Checklist for the Block 5 Mobility Hub Project to the Bicycle and Pedestrian Advisory Committee (BPAC)
City Council/RSA Agenda 48 Tuesday, May 27, 2025
Adopt a Resolution of Local Support
Submit a Carbon Reduction Program (CRP) alignment form
Add the project to MTC’s Fund Management System (FMS)
Obligate funds through Caltrans
At the April 16, 2025, BPAC meeting, staff presented the Complete Streets Checklist for the Block 5 Mobility Hub Project. Staff requests the adoption of the attached Resolution of Local Support to satisfy the second requirement and will submit all remaining requirements to secure the Regional Mobility Hubs Program funding for the Block 5 Mobility Hub Program.

FISCAL IMPACT
There are no fiscal implications at this time. Union City will coordinate with MTC staff to finalize the allocation request package. Once the City receives the award, staff will request the City Council accept the $2,259,000 of federal funding and increase the Public Improvements Fund budget for the Block 5 Mobility Hub Project, City Project No. 25-22, in the amount of $2,259,000. Staff will also request the City Council authorize the allocation of the required local matching funds, which usually amounts to approximately 11.5% of the grant amount, which would be $259,785.

There is no impact to the General Fund.

RECOMMENDATION
Staff recommends that the City Council adopt a resolution approving local support for the filing of an application to the Metropolitan Transportation Commission (MTC) for a discretionary funding allocation from the Regional Mobility Hubs Program, in the amount of $2,259,000, for the Block 5 Mobility Hub Project, City Project No. 25-22.

Prepared by:

Trieu Tran, Civil Engineer III
Submitted by:

MarilouAyupan, Public Works Director
ATTACHMENTS:

Description Type
Attachment 1 - Presentation to BPAC Attachment
Attachment 2 - MTCComplete Streets Checklist Attachment Draft Resolution Resolution
ExhibitA - MTCMeetingAgenda Item7a Exhibit
City Council/RSA Agenda 49 Tuesday, May 27, 2025
Block 5 Parking Mobility Hub (Station
District Area) and
MTC Complete Streets Checklist
Wednesday, April 16, 2025 - Special BPAC Meeting
Item 6d.

Marilou R. Ayupan, Public Works Director
City Council/RSA Agenda 50 Tuesday, May 27, 2025
2 MTC Capital Grant Opportunities (December 2024)
City Council/RSA Agenda 51 Tuesday, May 27, 2025
3 What is a Regional Mobility Hub?
Mobility Hubs are places in the
local community that bring
together public transit, bike share,
car share and other ways for
people to get where they need to
go.

Built around active communities,
the Mobility Hub offer safe,
comfortable, convenient, and
accessible space to seamlessly
connect from one mode of
transportation to another for all
ages and ability.

City Council/RSA Agenda 52 Tuesday, May 27, 2025
4 Mobility Hub Components
Refresh signs at Union City Intermodal BART Station
Components incl. Bay Area regional
standard transit signs for wayfinding,
stations and transit information (how to get
a clipper card). Other improvements
include transit plaza, bike lockers, seating,
trees, lighting and local landmarks
directions.

City Council/RSA Agenda 53 Tuesday, May 27, 2025
5 Station District Area and New BART Ped Crossing
* Block 5 Parking Mobility Hub
I ST. AT-GRADE

CROSSING
(CLOSURE)

DECOTO ROAD

PEDESTRIAN CROSSING

IMPROVEMENTS

NEW BART

PEDESTRIAN

AT-GRADE XING
City Council/RSA Agenda 54 Tuesday, May 27, 2025
6 Union City BART Station (Today)
City Council/RSA Agenda 55 Tuesday, May 27, 2025
7 MTC Capital Grant Recommendation (March 2025)
City Council/RSA Agenda 56 Tuesday, May 27, 2025
8 Block 5 Parking Mobility Hub
MTC Complete Street Checklist Requirement
City Council/RSA Agenda 57 Tuesday, May 27, 2025
Contact Name Trieu Tran
Email Address [email protected]
Contact Phone Number 510-675-5301
City/Jurisdiction/Agency
(If your option is not
listed, select "Other")
Union City
County Alameda
Is your project seeking
regional discretionary
funds or an
endorsement?
Regional discretionary funding
Please include the name
of the regional
discretionary funding
program that this
project is seeking.

Regional Mobility Hubs Program
Project Name/Title Union City Station District Mobility Hub Project Area/ Location 11th Street @ Duncan Way
Project Description
(2000 character limit).

You may also attach
additional project
documents, cross
sections, plan views or
other supporting
materials.

In the application package, include an existing conditions summary (e.g., surveys, aerial photos, existing condition plans). Summary should include identification of existing services.

Proposed Mobility Hub is located on the currently vacant Block 5, on the east side of the existing Union City Intermodal Station which is comprised of Bart station, sixteen bus bays with service provided by AC Transit, Union City Transit and
Dumbarton as well as the paratransit and taxis. There is currently no direct connection between Block 5 and the
Intermodal Station. However, with the upcoming construction of the UPRR at-grade pedestrian crossing (Bid Documents are completed and will be advertised in early 2025) and opening of the new east entry and free passage through the Bart station (construction completed, awaiting the opening of the ped crossing), and the planned SJRR station and service
connecting to the Central Valley, Block 5 will become the second front door to the Intermodal Station, and a key link providing connections for regional transit as well as direct access both to transit and to retail, hospitality and other services for several high density residential neighborhoods.

The area is connected to the wider bicycle network by bike lanes on 11th Street, Union Square and Decoto Road.

City Council/RSA Agenda 58 Tuesday, May 27, 2025
Please choose the
project phase(s).

Planning
PE
ENV
CON
Do you think your
project qualifies for a
Statement of Exception?
No
Topic: Bicycle, Pedestrian and Transit Planning
Does the project
implement relevant
plans, or other locally
adopted
recommendations?
Yes
Please provide details
on plan
recommendations
affecting the project
area, if any, with Plan
adoption date. If the
project is inconsistent
with adopted plans,
please provide
explanation.

Project follows City General 2040 Plan + Union City Station District Strategic Plan (2020). The proposed mobility hub will fulfill various elements called out in the 2021 adopted Bicycle & Pedestrian Master Plan, ADA transition plan, and various other agency plans/policies.

Does the project area
contain segments of the
regional Active
Transportation (AT)
Network? [See MTC's AT
Network map here]
Yes
If yes, describe the how
project adheres to the
National Association of
City Transportation
Official's (NATCO's)
"Designing for All Ages
& Abilities Contextual
Guidance for HighComfort Bicycle
Facilities" and/or the
Architectural and
Transportation Barriers
Compliance Board's
"Accessibility
Guidelines for
Pedestrian Facilities in
the Public Right-ofWay."
This mobility hub will accommodate all alternate modes of travel, servicing bicyclists, pedestrians, ADA travelers, transit riders (local bus & regional rail). Proposed are bike lockers, charging and repair stations, wide open walkways with
appropriate ADA transitions and access.

City Council/RSA Agenda 59 Tuesday, May 27, 2025
Is the the project on a
known High Injury
Network (HIN) or has a
local traffic safety
analysis found a high
incidence of bicyclist/
pedestrian-involved
crashes within the
project area?
No
Does the the project
seek to improve
conditions for people
biking, walking and/or
rolling? If the project
includes a bikeway, was
a Level of Traffic Stress
(LTS), or similar user
experience analysis
conducted?
No
Describe how project
seeks to provide lowstress transportation
facilities or reduce a
facility’s LTS.

This a mobility hub project, it is meant for transfer of trips or change in mode of travel.

A. Are there existing
public transit facilities
(stop or station) in the
project area?
Yes
If yes, list transit
facilities (stop, station,
or route) and all affected
agencies.

Union City Transit will expand routes to services this new mobility hub. A parallel project to the mobility hub proposed site, the BART At-Grade Crossing Project will provide access to the east side of the BART station will be in construction in the near future.

B. Have all potentially
affected transit
agencies had the
opportunity to review
this project? If yes,
please save the email
from transit operator(s)
below.

Yes
City Council/RSA Agenda 60 Tuesday, May 27, 2025
Please save the file with
the project name and
the jurisdiction
submitting checklist.

Add the name of the file
being uploaded below.

Then Click Here to
upload your file.

Project still in planning stages, City is & will be communicating with stakeholders.

C: Is there a MTC
Mobility Hub (map)
within the project area?
Yes
If yes, please describe
outreach to mobility
providers, and the
project’s Hubsupportive elements.

Please view the Mobility
Hubs Playbook Play 1.

This is a proposed mobility hob location, City is at the preliminary planning stages.

If applicable, please
describe the pedestrian
focused improvements
and cite the design
standards used (links to
standards are not
needed).

Transit shelters, designated transit/ride hailing areas, green space, pedestrian level lighting, street furniture, and open space.

If applicable, please
provide the class
designation for
bikeways included in
the project and cite the
design standards used.

This is not an on-street bicycle facility, however the hub will have bike amenities such as bike lockers, parking, charging, and repair stations.

Will the project improve
active transportation in
an Equity Priority
Community (EPC)?
No
Please list census tracts
that are designated as
EPCs and affected by
this project.

This area has no equity priority community
Has a local (city is
preferred and county is
an option) Bicycle and
Pedestrian Advisory
Commission (BPAC)
reviewed this Checklist?
The Checklist will begin
MTC review once the
The submission of this checklist will be reviewed by the BPAC.

This option exists to use this CS Checklist submission (pdf emailed to you) for the BPAC review.

City Council/RSA Agenda 61 Tuesday, May 27, 2025
BPAC meeting has
occurred.

Please provide the
meeting date(s). BPAC
meeting date should
occur before the grant
funding request
application or
endorsement is
submitted.

Next scheduled 2025
Compliance and Exemption
Please check below if
Yes. If no, complete the
Statement of Exception.

If Yes, this Checklist is
complete and the rest of
the form can be
skipped. If No, please fill
out the Statement of
Exception section.

Yes
Has a local (city or
county) Bicycle and
Pedestrian Advisory
Commission (BPAC)
reviewed this Checklist?
The CS Checklist will
begin review once the
BPAC meeting notes are
included in this form.

The Checklist is being submitted to send to the BPAC for review.

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City Council/RSA Agenda 62 Tuesday, May 27, 2025
RESOLUTION NO. 2025-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

AUTHORIZING THE FILING OF AN APPLICATION FOR FUNDING

ASSIGNED BY MTC AND COMMITTING ANY NECESSARY MATCHING
FUNDS AND STATING ASSURANCE TO COMPLETE THE BLOCK 5
MOBILITY HUB PROJECT, CITY PROJECT NO. 25-22
WHEREAS, the City of Union City (herein referred to as APPLICANT) is submitting an application to the Metropolitan Transportation Commission (MTC) for $2,259,000 in funding assigned to MTC for programming discretion, which includes federal funding administered by the Federal Highway Administration (FHWA) and federal or state funding administered by the California Transportation Commission (CTC) such as Surface Transportation Block Grant Program (STP) funding, Congestion Mitigation and Air Quality Improvement Program (CMAQ) funding, Carbon Reduction Program (CRP) funding, Transportation Alternatives (TA) set-aside/Active Transportation Program (ATP) funding, and Regional Transportation Improvement Program (RTIP) funding (herein collectively referred to as REGIONAL DISCRETIONARY FUNDING) for the Block 5 Mobility Hub Project (herein referred to as PROJECT) for the Regional Mobility Hubs Program (herein referred to as PROGRAM) (see Exhibit A); and
WHEREAS, the United States Congress from time to time enacts and amends legislation to provide funding for various transportation needs and programs, (collectively, the FEDERAL TRANSPORTATION ACT) including, but not limited to the Surface Transportation Block Grant Program (STP) (23 U.S.C. § 133), the Congestion Mitigation and Air Quality Improvement Program (CMAQ) (23 U.S.C. § 149), the Carbon Reduction Program (CRP) (23 U.S.C. § 175), and the Transportation Alternatives (TA) set-aside (23 U.S.C. § 133); and
WHEREAS, state statutes, including California Streets and Highways Code §182.6, §182.7, and §2381(a)(1), and California Government Code §14527, provide various funding programs for the programming discretion of the Metropolitan Planning Organization (MPO) and the Regional Transportation Planning Agency (RTPA); and WHEREAS, pursuant to the FEDERAL TRANSPORTATION ACT, and any regulations promulgated thereunder, eligible project sponsors wishing to receive federal or state funds for a regionally-significant project shall submit an application first with the appropriate MPO, or RTPA, as applicable, for review and inclusion in the federal Transportation Improvement Program (TIP); and
WHEREAS, MTC is the MPO and RTPA for the nine counties of the San Francisco Bay region; and
WHEREAS, MTC has adopted a Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) that sets out procedures governing the application and use of REGIONAL DISCRETIONARY FUNDING; and
WHEREAS, APPLICANT is an eligible sponsor for REGIONAL DISCRETIONARY FUNDING; and
City Council/RSA Agenda 63 Tuesday, May 27, 2025
Resolution No. 2025-XXX
Resolution of Local Support for MTC Regional Mobility Hubs Program

Page 2 of 5 ends

WHEREAS, as part of the application for REGIONAL DISCRETIONARY FUNDING, MTC requires a resolution adopted by the responsible implementing agency stating the following:
 the commitment of any required matching funds; and
 that the sponsor understands that the REGIONAL DISCRETIONARY FUNDING is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with additional REGIONAL DISCRETIONARY FUNDING; and
 that the PROJECT will comply with the procedures, delivery milestones and funding deadlines specified in the Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised); and
 the assurance of the sponsor to complete the PROJECT as described in the application, subject to environmental clearance, and if approved, as included in MTC's federal Transportation Improvement Program (TIP); and  that the PROJECT will have adequate staffing resources to deliver and complete the PROJECT within the schedule submitted with the project application; and
 that the PROJECT will comply with all project-specific requirements as set forth in the PROGRAM; and
 that APPLICANT has assigned, and will maintain a single point of contact for all FHWA- and CTC-funded transportation projects to coordinate within the agency and with the respective County Transportation Agency (CTA), MTC, Caltrans, FHWA, and CTC on all communications, inquires or issues that may arise during the federal programming and delivery process for all FHWA- and CTC-funded transportation and transit projects implemented by APPLICANT; and
 in the case of a transit project, the PROJECT will comply with MTC Resolution No. 3866, revised, which sets forth the requirements of MTC’s Transit Coordination Implementation Plan to more efficiently deliver transit projects in the region; and
 in the case of a highway project, the PROJECT will comply with MTC Resolution No. 4104, which sets forth MTC’s Traffic Operations System (TOS) Policy to install and activate TOS elements on new major freeway projects; and
 in the case of an RTIP project, state law requires PROJECT be included in a local congestion management plan, or be consistent with the capital improvement program adopted pursuant to MTC’s funding agreement with the County Transportation Agency (CTA); and
WHEREAS, that APPLICANT is authorized to submit an application for REGIONAL DISCRETIONARY FUNDING for the PROJECT; and
WHEREAS, there is no legal impediment to APPLICANT making applications for the funds; and
City Council/RSA Agenda 64 Tuesday, May 27, 2025
Resolution No. 2025-XXX
Resolution of Local Support for MTC Regional Mobility Hubs Program

Page 3 of 5 ends

WHEREAS, there is no pending or threatened litigation that might in any way adversely affect the proposed PROJECT, or the ability of APPLICANT to deliver such PROJECT; and
WHEREAS, APPLICANT authorizes its Executive Director, General Manager, or designee to execute and file an application with MTC for REGIONAL DISCRETIONARY FUNDING for the PROJECT as referenced in this resolution; and WHEREAS, MTC requires that a copy of this resolution be transmitted to the MTC in conjunction with the filing of the application.

NOW, THEREFORE, BE IT RESOLVED that the APPLICANT is authorized to execute and file an application for funding for the PROJECT for REGIONAL DISCRETIONARY FUNDING under the FEDERAL TRANSPORTATION ACT or continued funding; and be it further
RESOLVED that APPLICANT will provide any required matching funds; and be it further
RESOLVED that APPLICANT understands that the REGIONAL
DISCRETIONARY FUNDING for the project is fixed at the MTC approved programmed amount, and that any cost increases must be funded by the APPLICANT from other funds, and that APPLICANT does not expect any cost increases to be funded with additional REGIONAL DISCRETIONARY FUNDING; and be it further
RESOLVED that APPLICANT understands the funding deadlines associated with these funds and will comply with the provisions and requirements of the Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) and APPLICANT has, and will retain the expertise, knowledge and resources necessary to deliver federally-funded transportation and transit projects, and has assigned, and will maintain a single point of contact for all FHWA- and CTC-funded transportation projects to coordinate within the agency and with the respective County Transportation Agency (CTA), MTC, Caltrans, FHWA, and CTC on all communications, inquires or issues that may arise during the federal programming and delivery process for all FHWA- and CTC-funded transportation and transit projects implemented by APPLICANT; and be it further RESOLVED that PROJECT will be implemented as described in the complete application and in this resolution, subject to environmental clearance, and, if approved, for the amount approved by MTC and programmed in the federal TIP; and be it further RESOLVED that APPLICANT has reviewed the PROJECT and has adequate staffing resources to deliver and complete the PROJECT within the schedule submitted with the project application; and be it further
RESOLVED that PROJECT will comply with the requirements as set forth in MTC programming guidelines and project selection procedures for the PROGRAM; and be it further
City Council/RSA Agenda 65 Tuesday, May 27, 2025
Resolution No. 2025-XXX
Resolution of Local Support for MTC Regional Mobility Hubs Program

Page 4 of 5 ends

RESOLVED that, in the case of a transit project, APPLICANT agrees to comply with the requirements of MTC’s Transit Coordination Implementation Plan as set forth in MTC Resolution No. 3866, revised; and be it further
RESOLVED that APPLICANT is an eligible sponsor of REGIONAL DISCRETIONARY FUNDING-funded projects; and be it further RESOLVED that APPLICANT is authorized to submit an application for REGIONAL DISCRETIONARY FUNDING for the PROJECT; and be it further RESOLVED that there is no legal impediment to APPLICANT making applications for the funds; and be it further
RESOLVED that there is no pending or threatened litigation that might in any way adversely affect the proposed PROJECT, or the ability of APPLICANT to deliver such PROJECT; and be it further
RESOLVED that APPLICANT authorizes its Executive Director, General Manager, City Manager, or designee to execute and file an application with MTC for REGIONAL DISCRETIONARY FUNDING for the PROJECT as referenced in this resolution; and be it further
RESOLVED that a copy of this resolution will be transmitted to the MTC in conjunction with the filing of the application; and be it further RESOLVED that the MTC is requested to support the application for the PROJECT described in the resolution, and if approved, to include the PROJECT in MTC's federal TIP upon submittal by the project sponsor for TIP programming.

City Council/RSA Agenda 66 Tuesday, May 27, 2025
Resolution No. 2025-XXX
Resolution of Local Support for MTC Regional Mobility Hubs Program

Page 5 of 5 ends

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 27th day of May 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
Attachments:

1. Exhibit A – MTC Planning Committee Agenda Item 7a
City Council/RSA Agenda 67 Tuesday, May 27, 2025
MTC Planning Committee
March 14, 2025 Page 1 of 8
Attachment B
Agenda Item 7a
Total Budget $40,000,000
Total funding request received: $50,451,000
Total recommended funding request:1 $40,650,000
Table 1. Summary of Award Recommendations by Capital Program County Project Sponsor Charging
Infrastructure
Parking
Management Regional Mobility Hubs
Active Transportation
Capital Design
Technical Assistance
Total No. of Awards
Regional Bay Area Rapid Transit (BART) $3,776,000 $300,000 $4,076,000 2 Alameda City of Alameda $1,237,000 $300,000 $1,537,000 2 Alameda City of Albany $300,000 $300,000 1
Alameda City of Oakland $300,000 $300,000 1
Alameda City od San Leandro $100,000 $100,000 1
Alameda City of Union City $2,259,000 $2,259,000 1
Contra Costa City of Concord $500,000 $500,000 1
Contra Costa City of Lafayette $300,000 $300,000 1
Contra Costa City of Richmond $150,000 $150,000 1
Contra Costa Contra Costa Transportation Authority (CCTA) $3,343,000 $3,343,000 1 Contra Costa City of Pinole $952,000 $952,000 1
Marin City of Mill Valley $1,351,000 $1,351,000 1
Marin City of Sausalito $500,000 $500,000 1
Napa City of Napa $974,000 $500,000 $1,474,000 2
San Francisco San Francisco Municipal Transportation Agency (SFMTA) $2,254,000 $2,254,000 1
San Mateo City of East Palo Alto $581,000 $581,000 1
San Mateo City of San Carlos $523,000 $523,000 1
San Mateo City of South San Francisco $300,000 $300,000 1 San Mateo Town of Colma $300,000 $300,000 1
San Mateo Town of Portola Valley $317,000 $317,000 1
San Mateo City of Half Moon Bay $829,000 $829,000 1
San Mateo City of Menlo Park $2,297,000 $2,297,000 1
Santa Clara City of Gilroy $527,000 $527,000 1
Santa Clara City of Morgan Hill $1,052,000 $1,052,000 1 Santa Clara City of Palo Alto $2,855,000 $2,855,000 1
Santa Clara City of San José $2,495,000 $2,000,000 $4,495,000 2 Santa Clara County of Santa Clara $1,756,000 $300,000 $2,056,000 2 Capital Grants Recommended Awards Summary
City Council/RSA Agenda 68 Tuesday, May 27, 2025
MTC Planning Committee
March 14, 2025 Page 2 of 8
Attachment B
Agenda Item 7a
County Project Sponsor Charging
Infrastructure
Parking
Management Regional Mobility Hubs
Active Transportation
Capital Design
Technical Assistance
Total No. of Awards
Santa Clara Santa Clara Valley Transportation Authority (VTA) $4,800,000 $4,800,000 1
Solano Solano County $250,000 $250,000 1
Capital Program Technical
Assistance2 $72,000
Totals $20,250,000 $3,500,000 $14,178,000 $2,650,000 $40,650,000 29 34
Jurisdictions/Agencies Total Awards
2 Funded with the $822,000 balance in the Regional Mobility Hubs category. The funding will provide technical assistance to the awarded projects to position them for success and alignment with program objectives. This includes consultation on design drawings, evaluation, funding obligation, and other assistance grant recipients may need Count 16 4 4 10
1 The call for projects was released with $2 million available for Active Transportation Capital Design Technical Assistance. Given the significant oversubscription of this program component, staff recommend programming a remaining $650,000 OBAG3 active transportation implementation balance to award three projects at their full request (instead of a partial award) and fund two additional projects. This raised the total funding amount available to $40.7M
City Council/RSA Agenda 69 Tuesday, May 27, 2025
MTC Planning Committee
March 14, 2025 Page 3 of 8
Attachment B
Agenda Item 7a
Total Budget $20,000,000
Total funding request received: $26,171,000
Total recommended funding request:1 $20,250,000
Table 4. Recommended Awards for Charging Infrastructure County Project Sponsor Project Title TOC and/or EPC2 Requested Award Recommended Award Alameda City of Alameda3, 4 Alameda Public EV Charging Program EPC $1,237,000 $1,237,000 Contra Costa City of Pinole3 Expanding Electric Vehicle Charging in Pinole, CA None $952,000 $952,000
Marin City of Mill Valley The Southern Marin Vehicle Charging Consortium (SMVCC) None $1,351,000 $1,351,000
Napa City of Napa Equity Focused EV Charging in Downtown Napa EPC $974,000 $974,000
San Francisco
San Francisco Municipal
Transportation Agency
(SFMTA)3
Expanding Charging Access in San Francisco’s
Equity Priority Communities TOC and EPC $2,254,000 $2,254,000 San Mateo City of East Palo Alto
City of East Palo Alto, San Mateo County
Regional EV Charging: Scaling Accessible and
Sustainable Solutions
EPC $581,000 $581,000
San Mateo City of Half Moon Bay3
City of Half Moon Bay, San Mateo County
Regional EV Charging: Scaling Accessible and
Sustainable Solutions
None $829,000 $829,000
San Mateo City of Menlo Park3 City of Menlo Park Long Term EV Charging Infrastructure Project TOC and EPC $2,297,000 $2,297,000 San Mateo Town of Portola Valley
Town of Portola Valley, San Mateo County
Regional EV Charging: Scaling Accessible and
Sustainable Solutions
None $317,000 $317,000
San Mateo City of San Carlos
City of San Carlos, San Mateo County Regional
EV Charging: Scaling Accessible and
Sustainable Solutions
TOC $523,000 $523,000
Santa Clara City of Gilroy Gilroy Public Library EV Chargers TOC and EPC $527,000 $527,000 Santa Clara City of Morgan Hill City of Morgan Hill Transit Hub Charging Stations TOC $1,052,000 $1,052,000
Charging Infrastructure Award Recommendations
City Council/RSA Agenda 70 Tuesday, May 27, 2025
MTC Planning Committee
March 14, 2025 Page 4 of 8
Attachment B
Agenda Item 7a
County Project Sponsor Project Title TOC and/or EPC2 Requested Award Recommended Award Santa Clara City of Palo Alto Palo Alto School-Community Partnership EV Charging Infrastructure Project None $2,855,000 $2,855,000 Santa Clara City of San Jose3,4 San José Community EV Charging Access Project TOC and EPC $2,495,000 $2,495,000
Santa Clara County of Santa Clara County of Santa Clara TOC EV Charging Project TOC $4,427,000 $1,756,000 Solano County of Solano5 Solano 360 Mobility Hub EPC $500,000 $250,000 Totals 16 $23,171,000 $20,250,000
1 Supplemented with $822,000 balance in the Regional Mobility Hubs category Table 5. Applications Not Recommended for Charging Infrastructure Funding this Cycle County Project Sponsor Project Title TOC and/or EPC1 Requested Award Evaluation Alameda City of Union City Union City Mobility Hub EV Chargers TOC $3,000,000 Recommended for
Mobility Hubs Grant.

Lower ranked project.

Staff will work with the
project sponsors to
assist in the
development of an
application for the next
round of funding.

Totals 1 $3,000,000 1 TOC = Transit Oriented Community Policy; EPC = Equity Priority Community 2 TOC = Transit Oriented Community Policy; EPC = Equity Priority Community 3 Revised Requests.
4 Multiple locations, not all chargers will be located in a TOC or EPC Staff recommends conditioning all recommended awards on the Bicycle Pedestrian Advisory Committee’s (BPAC) review of the Complete Streets Checklist 5 Funded with $250,000 from the $822,000 balance in the Regional Mobility Hubs category City Council/RSA Agenda 71 Tuesday, May 27, 2025
MTC Planning Committee
March 14, 2025 Page 5 of 8
Attachment B
Agenda Item 7a
Total Budget $3,000,000
Total funding request received: $4,622,216
Total recommended funding request:1 $3,500,000
County Project Sponsor Project Title TOC and/or EPC2 Requested Award Recommended Award Contra Costa City of Concord
Downtown Concord Parking Technology
Innovation & Implementation
TOC and EPC $750,000 $500,000
Marin City of Sausalito3
Sausalito Capital Parking Improvements
Project TOC $929,565 $500,000
Napa City of Napa Park Napa EPC $500,000 $500,000
Santa Clara City of San José Advancing Curb Management ProjectTOC and EPC $2,000,000 $2,000,000 Totals 4 $4,179,565 $3,500,000
2 TOC = Transit Oriented Community Policy; EPC = Equity Priority Community Table 7. Applications Not Recommended for Parking Management Funding this Cycle County Project Sponsor Project Title TOC and/or EPC1 Requested Award Evaluation San Mateo Millbrae
Downtown Millbrae Parking Management
Program Implementation TOC $442,651
Received Transit Oriented
Communities (TOC) Parking
Planning award in February
2025.

Lower ranked project.

Staff will work with the
project sponsors to assist in
the development of an
application for the next round
of funding.

Totals 1 $442,651
1 TOC = Transit Oriented Community Policy; EPC = Equity Priority Community Parking Management Capital Award Recommendations
Table 6. Recommended Awards for Parking Management
3 Funded with $500,000 from the $822,000 balance in the Regional Mobility Hubs category 1 Supplemented with $822,000 balance in the Regional Mobility Hubs category Staff recommends conditioning all recommended awards on the Bicycle Pedestrian Advisory Committee’s (BPAC) review of the Complete Streets Checklist City Council/RSA Agenda 72 Tuesday, May 27, 2025
MTC Planning Committee
March 14, 2025 Page 6 of 8
Attachment B
Agenda Item 7a
Total Budget $15,000,000
Total funding request received: $14,178,000
Total recommended funding request: $14,178,000
Balance1 $822,000
Table 8. Recommended Awards for Regional Mobility Hubs Award Recommendations County Project Sponsor Project Title TOC and/or EPC2 Requested Award Recommended Award
Alameda City of Union City3 Union City Intermodal Station Mobility Hub at Union City BART TOC $2,259,000 $2,259,000 Contra Costa Contra Costa Transportation
Authority (CCTA)4
Walnut Creek BART Station
Shared Mobility Hub TOC $3,343,000 $3,343,000
San Mateo Bay Area Rapid Transit
District (BART)
Daly City BART Station
Mobility Hub TOC and EPC $3,776,000 $3,776,000
Santa Clara
Santa Clara Valley
Transportation Authority
(VTA)
VTA Blossom Hill Light Rail
Station Mixed-Use Housing &
Mobility Hub
TOC $4,800,000 $4,800,000
Totals 4 $14,178,000 $14,178,000
2 TOC = Transit Oriented Community Policy; EPC = Equity Priority Community 3 Revised Request
Regional Mobility Hubs Capital Award Recommendations
4 Revised Request
1 Remaining balance recommended to partially fund Sausalito Parking Management Project ($500,000), and Technical Assistance ($72,000) Staff recommends conditioning all recommended awards on the Bicycle Pedestrian Advisory Committee’s (BPAC) review of the Complete Streets Checklist
City Council/RSA Agenda 73 Tuesday, May 27, 2025
MTC Planning Committee
March 14, 2025 Page 7 of 8
Attachment B
Agenda Item 7a
Total Budget $2,000,000
Total funding request received: $5,480,000
Total recommended funding request:1 $2,650,000
Table 2. Recommended Awards for Active Transportation Capital Design Technical Assistance County Project Sponsor Project Title TOC and/or EPC2 Requested Award Recommended Award Alameda City of Alameda Willie Stargell Ave Safety Improvements Project TOC and EPC $300,000 $300,000
Alameda City of Albany Pierce-Cleveland Bikeway Connection Project None $300,000 $300,000 Alameda Bay Area Rapid Transit (BART)
Coliseum BART Bicycle and Pedestrian
Preferred Path of Travel Improvements
Project
TOC and EPC $300,000 $300,000
Alameda City of Oakland Fruitvale Connections TOC and EPC $300,000 $300,000 Alameda City of San Leandro Hesperian Boulevard Bike Lane Gap Closure TOC $100,000 $100,000 Contra Costa City of Lafayette Lafayette EBMUD Aqueduct Pathway Project TOC $300,000 $300,000 Contra Costa City of Richmond Richmond Wellness Trail TOC and EPC $150,000 $150,000 San Mateo Town of Colma El Camino Real Bicycle and Pedestrian Improvement Project (Segment A) TOC $300,000 $300,000
San Mateo City of South San Francisco SF El Camino Real Bicycle and Pedestrian Improvement Project (Segment C) TOC $300,000 $300,000
Santa Clara County of Santa Clara San Tomas Trail Extension TOC $300,000 $300,000 Totals 10 $2,650,000 $2,650,000
Active Transportation Capital Design Technical Assistance Award Recommendations 2 TOC = Transit Oriented Community Policy; EPC = Equity Priority Community 1 The call for projects was released with $2 million available for Active Transportation Capital Design Technical Assistance. Given the significant oversubscription of this program component, staff recommend programming a remaining $650,000 OBAG3 active transportation implementation balance to award three projects at their full request (instead of a partial award) and fund two additional projects. This raised the total funding amount available to $2.7 million City Council/RSA Agenda 74 Tuesday, May 27, 2025
MTC Planning Committee
March 14, 2025 Page 8 of 8
Attachment B
Agenda Item 7a
Table 3. Applications Not Recommended for Active Transportation Capital Design Technical Assistance Funding this Cycle County Project Sponsor Project Title TOC and/or EPC1 Requested Award Evaluation Alameda Union City Old Alameda Creek Trail Improvements None $125,000 Contra Costa Contra Costa County San Pablo Dam Road Complete Street None $300,000 Contra Costa City of Richmond McBryde Avenue Safe Routes to Parks EPC $300,000 Contra Costa City of Walnut Creek Protected Intersection Design at Ygnacio Valley Road and California Boulevard TOC $215,000
Marin TAM North South Greenway Southern Segment TOC $300,000 San Mateo City of Belmont Design Technical Assistance for Alameda de las Pulgas Corridor Improvement Project None
$290,000
Santa Clara City of Los Altos Safety Improvement of Homestead Rd/Grant/Foothill Expressway Intersection None $250,000 San Mateo City of Millbrae Broadway Avenue Pedestrian Improvements Project TOC $250,000
San Mateo City of San Bruno Active Transportation for All in San Bruno TOC $200,000 San Mateo City of San Carlos Pedestrian and Bike Enhancements for San Carlos Avenue TOC $300,000
Sonoma City of Petaluma Petaluma River Trail - US-101 and Rail Undercrossings Project None $300,000
Totals 11 $2,830,000 1 TOC = Transit Oriented Community Policy; EPC = Equity Priority Community Lower ranked projects.

Staff will work with the
project sponsors to
assist in the
development of an
application for the next
round of funding.

City Council/RSA Agenda 75 Tuesday, May 27, 2025
Agenda Item
DATE: 5/27/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE THIRD AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH RICHARD K. TANAKA, IN THE AMOUNT OF $30,000, FOR A TOTAL NOT-TO-EXCEED CONTRACT AMOUNT OF $354,800, FOR PROJECT MANAGEMENT SERVICES FOR THE UNION CITYBOULEVARD BIKE LANES PROJECT, CITYPROJECT NO. 17-29

EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the Third Amendment to the Consulting Services Agreement with Richard K. Tanaka, in the amount of $30,000, for a total not-to-exceed contract amount of $354,800, for Project Management Services for the Union City Boulevard Bike Lanes Project, City Project No. 17-29.

STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:

Goal D, Strategy 1: Environmental Sustainability and Infrastructure - Continue the build-out of the City’s Bicycle and Pedestrian network, with an emphasis on closing gaps, addressing safety concerns, and increasing connectivity to the Station District.

Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s capital improvement plan

BACKGROUND
The Union City Boulevard Bike Lanes Project, City Project No. 17-29, will complete over a two (2) mile gap with buffer Class II bikes lanes along Union City Boulevard (UCB) from the Alameda County Flood Control Channel (Fremont) to Smith Street and will serve as the San Francisco Bay Trail in Union City. The improvements also include the rehabilitation of the pavement within the project limits. The project will include “Complete Street” improvements at all intersections including traffic signal modifications, a new multi-purpose trail along UCB adjacent to Delaine Eastin Elementary School, providing direct access for students who bike or walk to school and a right-turning lane into the school, streetlight modifications, roadway drainage improvements and landscape improvements at various locations.

On October 15, 2021, the City Manager entered into a Consulting Services Agreement, with Richard K. Tanaka, C5801, in the amount of $70,000, for Project Management Services for the Union City Boulevard Bike Lanes Project, City Project No. 17-29, assisting Public Works with managing and coordinating the Kimley-Horn and Associates’ Consulting Services Agreement for the engineering design services.

On October 11, 2022, the City Council adopted Resolution No. 6020-22, authorizing the City Manager to execute the First Amendment to the Consulting Services Agreement with Richard K. Tanaka, C5801b, in the amount of $125,000, for a total contract amount of $195,000 for the Union City Boulevard Bike Lanes Project, City Project No. 17-29.

On July 25, 2023, the City Council adopted Resolution No. 6172-23, authorizing the City Manager to execute a Consulting Services Agreement with Park Engineering, Inc., for Construction Management Services to assist with the bidding process and to manage the construction of the Union City Boulevard Bike Lanes Project, City Project No. 17-29, in the amount of $2,000,000.

City Council/RSA Agenda 76 Tuesday, May 27, 2025
On August 8, 2023, the City Council adopted Resolution No. 6180-23, authorizing the City Manager to execute the Second Amendment to the Consulting Services Agreement with Richard K. Tanaka, C5801c, in the amount of $129,800, for a total contract amount of $324,800, to continue to provide Project Management Services during the construction phase of the Union City Boulevard Bike Lanes Project, City Project No. 17-29.

On February 27, 2024, the City Council adopted Resolution No. 6261-24, awarding the construction contract for the Union City Boulevard Bike Lanes Project, City Project No. 17-29, to Bay Cities Paving & Grading, in the amount of $17,049,000. The construction began in late Spring 2024, with a groundbreaking ceremony on June 28, 2024. Construction progress is on track for completion in late Fall 2025.

DISCUSSION
Staff continues to be satisfied with the level of project management services provided by Richard K. Tanaka. The Third Amendment to the Consulting Services Agreement, in the amount of $30,000, will ensure continuity in the provision of Project Management Services for the completion of construction followed by project closeout of the Union City Boulevard Bike Lanes Project, including such tasks as ongoing coordination with Kimley-Horn and Associates, Inc. and Park Engineering for oversight during the remainder of construction, managing project scope and budgets of consultants, assisting the City with any dispute resolutions and public inquiries and project closeout, including final reporting and reviewing As-Built Plans.

FISCAL IMPACT
The total cost of the Third Amendment to the Consulting Services Agreement with Richard K. Tanaka, for Project Management Services for the Union City Boulevard Bike Lanes Project, City Project No. 17-29, is $30,000, and will be funded with $25,000 of Measure BB Bike and Ped funds (Account Number 26791729-54110) and $5,000 of Gas Tax funds (Account Number 25091729-54110), which are available in the approved Biennial Budget for Fiscal Year 2023-2024 and Fiscal Year 2024-2025.

RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the Third Amendment to the Consulting Services Agreement with Richard K. Tanaka, in the amount of $30,000, for a total not-to-exceed contract amount of $354,800, for Project Management Services for the Union City Boulevard Bike Lanes Project, City Project No. 17-29.

Prepared by:

MarilouAyupan, Public Works Director
Submitted by:

MarilouAyupan, Public Works Director
ATTACHMENTS:

Description Type
Attachment 1 - CSA Attachment
Draft Resolution Resolution
City Council/RSA Agenda 77 Tuesday, May 27, 2025

THIRD AMENDMENT TO THE
CONSULTING SERVICES AGREEMENT (C5801)
THIS THIRD AMENDMENT is effective as of this 27th day of May 2025 by and between THE CITY OF UNION CITY, a municipal corporation, (“City”) and RICHARD K. TANAKA, ("Consultant"), collectively referred to as the "Parties".

W I T N E S S E T H:

WHEREAS, on October 15, 2021, the Parties entered into a Consulting Services Agreement, C5801 (“Agreement”) wherein the Consultant will provide the City with project management services for the Union City Boulevard Bike Lanes Project, City Project No. 17-29; and WHEREAS, on October 11, 2022, the Parties entered into a First Amendment to the Consulting Services Agreement, C5801b, to expand the scope of services and increase the compensation (“First Amendment”); and
WHEREAS, on August 8, 2023, the Parties entered into a Second Amendment to the Consulting Services Agreement, C5801c, to extend the term of services, increase the compensation, and amend the scope of work (“Second Amendment”); and
WHEREAS, the Parties desire to amend the Agreement to include additional scope of services to be provided by the Consultant; and
WHEREAS, the City and Consultant desires to enter into this Third Amendment.

NOW, THEREFORE, the Parties hereto do mutually agree as follows:

1. The “TERM OF SERVICES” as set forth in the first sentence of Section 1.1, is hereby extended to June 30, 2026.

2. The first sentence of Section 2 "COMPENSATION" of the Agreement is hereby amended to reflect payment based upon a sum increase of Thirty Thousand Dollars ($30,000), as set forth is Exhibit B of this Third Amendment. The total compensation under the Agreement including this Amendment shall not exceed a total contract amount of Three Hundred Fifty-Four Thousand Eight Hundred Dollars ($354,800). The first sentence shall now read:

City hereby agreesto pay Consultant a sum not to exceed Three Hundred FiftyFour Thousand Eight Hundred Dollars ($354,800) notwithstanding any contrary indicationsthat may be contained in Consultant' s proposal, for services to be performed and reimbursable costs incurred under this Agreement.

City Council/RSA Agenda 78 Tuesday, May 27, 2025
Third Amendment of the Consulting Services Agreement
City of Union City and Richard K. Tanaka

Page 2 of 3 ends

3. The “COST PROPOSAL” as set forth in EXHIBIT B of the Agreement, is hereby amended to include the information contained in Exhibit B of this Third Amendment, attached hereto and incorporated herein by reference.

4. All other provisions of the Agreement, as previously amended by the First and Second Amendment, remain unchanged except as modified by this Third Amendment.

IN WITNESS WHEREOF, the City and the Consultant have executed this Third Amendment effective as of the date hereinabove written.

THE CITY OF UNION CITY RICHARD K. TANAKA
By By
Joan Malloy Richard K. Tanaka
City Manager Owner
Attest:
___________________________
Thai Nam N. Pham
City Clerk
Approved as to Form:
____________________________
Kristopher J. Kokotaylo
City Attorney

4. All other provisions of the Agreement, as previously amended by the First and Second Amendments, remain unchanged except as modified by this Third Amendment.

City Council/RSA Agenda 79 Tuesday, May 27, 2025
Third Amendment of the Consulting Services Agreement
City of Union City and Richard K. Tanaka

Page 3 of 3 ends

EXHIBIT B

COST PROPOSAL
(Include Hourly Rate Schedule)
Task Scope Hours Hourly
Rates
Total Fee
2 Project Management Services during Construction 109 $275.00 $29,975.00 Reimbursables $25.00
TOTAL $30,000.00
City Council/RSA Agenda 80 Tuesday, May 27, 2025
RESOLUTION NO. 2025-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

AUTHORIZING THE CITY MANAGER TO EXECUTE THE THIRD

AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH
RICHARD K. TANAKA, IN THE AMOUNT OF $30,000, FOR A TOTAL NOT-TO-EXCEED CONTRACT AMOUNT OF $354,800, FOR PROJECT

MANAGEMENT SERVICES FOR THE UNION CITY BOULEVARD BIKE
LANES PROJECT, CITY PROJECT NO. 17-29
WHEREAS, the Union City Boulevard Bike Lanes Project, City Project No. 17-29, will complete over a two (2) mile gap with buffer Class II bikes lanes along Union City Boulevard (UCB) from the Alameda County Flood Control Channel (Fremont) to Smith Street and will serve as the San Francisco Bay Trail in Union City; and WHEREAS, on October 15, 2021, the City Manager entered into a Consulting Services Agreement, with Richard K. Tanaka, C5801, in the amount of $70,000, for Project Management Services for the Union City Boulevard Bike Lanes Project, City Project No. 17-29, assisting Public Works with managing and coordinating the KimleyHorn and Associates’ Consulting Services Agreement for the engineering design services; and
WHEREAS, on October 11, 2022, the City Council adopted Resolution No. 6020- 22, authorizing the City Manager to execute the First Amendment to the Consulting Services Agreement with Richard K. Tanaka, C5801b, in the amount of $125,000, for a total contract amount of $195,000 for the Union City Boulevard Bike Lanes Project, City Project No. 17-29; and
WHEREAS, on July 25, 2023, the City Council adopted Resolution No. 6172-23, authorizing the City Manager to execute a Consulting Services Agreement with Park Engineering, Inc., for Construction Management Services to assist with the bidding process and to manage the construction of the Union City Boulevard Bike Lanes Project, City Project No. 17-29, in the amount of $2,000,000; and WHEREAS, on August 8, 2023, the City Council adopted Resolution No. 6180-23, authorizing the City Manager to execute the Second Amendment to the Consulting Services Agreement with Richard K. Tanaka, C5801c, in the amount of $129,800, for a total contract amount of $324,800, to continue to provide Project Management Services during the construction phase of the Union City Boulevard Bike Lanes Project, City Project No. 17-29; and
WHEREAS, on February 27, 2024, the City Council adopted Resolution No. 6261- 24, awarding the construction contract for the Union City Boulevard Bike Lanes Project, City Project No. 17-29, to Bay Cities Paving & Grading, in the amount of $17,049,000; and
WHEREAS, staff continues to be satisfied with the level of project management services provided by Richard K. Tanaka; and
City Council/RSA Agenda 81 Tuesday, May 27, 2025
Resolution 2025-XXX
Approve Third Amendment to CSA with Richard K. Tanaka

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WHEREAS, the Third Amendment to the Consulting Services Agreement, in the amount of $30,000, will ensure continuity in the provision of Project Management Services related to the completion and closeout of the Union City Boulevard Bike Lanes Project, including such tasks as ongoing coordination with Kimley-Horn and Associates, Inc. and Park Engineering for oversight during the remainder of construction, managing project scope and budgets of consultants, assisting the City with any dispute resolutions and public inquiries and project closeout, including final reporting and reviewing As-Built Plans; and
WHEREAS, the total cost of the Third Amendment to the Consulting Services Agreement with Richard K. Tanaka, for Project Management Services for the Union City Boulevard Bike Lanes Project, City Project No. 17-29, is $30,000, and will be funded with $25,000 of Measure BB Bike and Ped funds (Account Number 26791729-54110) and $5,000 of Gas Tax funds (Account Number 25091729-54110), which are available in the approved Biennial Budget for Fiscal Year 2023-2024 and Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby authorizes the City Manager to execute the Third Amendment to the Consulting Services Agreement with Richard K. Tanaka, in the amount of $30,000, for a total not-to-exceed contract amount to $354,800, for Project Management Services for the Union City Boulevard Bike Lanes Project, City Project No. 17-29.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 27th day of May 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
City Council/RSA Agenda 82 Tuesday, May 27, 2025
Agenda Item
DATE: 5/27/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO

THE AGREEMENT BETWEEN THE CITY OF UNION CITYAND ALAMEDA COUNTY FIRE DEPARTMENT FOR

FIRE AND EMERGENCYRESPONSE SERVICES

EXECUTIVE SUMMARY
The Alameda County Fire Department (ACFD) has been providing high-quality fire and emergency response services to the City of Union City since 2010. The current agreement, Contract No. C5708, executed in February 2021 (Attachment 1), is set to expire on June 30, 2025, and includes an option to extend the terms for an additional five years. There are no significant staffing or service changes proposed by this contract extension.

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the First Amendment to the Agreement with the Alameda County Fire Department for continued fire and emergency services.

STRATEGIC PLAN ALIGNMENT
No specific strategies are associated with the extension of this agreement.

BACKGROUND
The Alameda County Fire Department (ACFD) was established in 1993 to provide fire protection and emergency services to the unincorporated areas of Alameda County. ACFD is governed by the Alameda County Board of Supervisors, which serves as its Board of Directors. Since its formation, five cities and two laboratories—San Leandro, Dublin, Newark, Union City, Emeryville, Lawrence Berkeley National Laboratory, and Lawrence Livermore National Laboratory—have contracted with ACFD. Union City first entered into a five-year service agreement withACFD in 2010.

Union City previously contracted with the City of Fremont for fire services from 1994 to 2001. The Union City Fire Department was reestablished for nine years from 2001 to 2010 and in 2010 the City entered into a contract with ACFD for fire and emergency response services. The primary motivation for Union City to transition to ACFD was cost savings and an expanded service network.

The initial contract with ACFD covered 2010-2015. As the City approached the 2015 renewal, an evaluation of fire service was prepared.

While it was evident that ACFD was providing excellent service, certain administrative concerns remained, specifically:
1) Governance: the need for mechanisms that allowed contract cities to provide input and influence decision-making by the Alameda County Board of Supervisors.
2) Unfunded Liabilities of Retiree Healthcare: retired ACFD employees, with at least five years of service, are provided with healthcare benefits for themselves and their families.

To evaluate alternative service models and ensure continued alignment with the City’s best interests, the City Council authorized an agreement City Council/RSA Agenda 83 Tuesday, May 27, 2025
with Citygate Associates to conduct a Fire Services Alternatives Study. The study evaluated other potential service models and concluded that remaining with ACFD was the most beneficial option for the City. Based on these findings, the City Council directed staff to negotiate a new agreement withACFD that addressed the identified concerns.

The ACFD contract was extended for an additional five years from 2015-2020. In 2018 the City Council engaged the Center for Public Safety Management (CPSM) to evaluate the delivery of fire services in Union City. The purpose of the analysis was to review the effectiveness of the fire services and consider modifications to the ACFD contract to reduce costs while providing a high level of service.

CPSM reviewed data from ACFD and, as a result of CPSM’s evaluation, the City Council voted to amend the ACFD contract to close Station

30. One of the primary factors in the City Council’s decision was the conclusion of the CPSM report that Station 30 handled 1.7 runs per day with a total deployment time of 33.2 minutes per day. The CPSM report indicated that Station 30 could close, and the remaining three stations would provide acceptable levels of service to the residents. Another significant factor was that the closure of the station would save the City $3.2 million annually (now equivalent to $4.462 million in 2024). Station 30 closed in January 2020 and an updated contract with ACFD was fully executed in February 2021 reflecting that change. Fire equipment and apparatus from Fire Station 30 were dispersed to other stations in Union City.

Today, Station 30 is used for maintenance and storage of the emergency mobile command unit and as a layover station for Falck Ambulance.

The facility is also used as a voting station, a community meeting space, and project management offices for City construction projects.

DISCUSSION
Overview of Services
Section 3 of the contract defines the scope of services, which will remain unchanged. The City is responsible for the three fire station facilities and equipment and ACFD provides the staffing under the contract. There are three companies in Union City, with three personnel at each station that provide 24/7 coverage. In total there are 27 firefighters assigned to Union City across three shifts. Union City shares fifty percent of the cost for three battalion chiefs for Battalion 7 and also pays the proportional share of Deputy Chief Thomas and Chief McDonald.

Fire Station 31
3355 Central Avenue
1 Quint Company 3 Personnel
Fire Station 32
31600 Alvarado Boulevard
1 Engine Company 3 Personnel
Fire Station 33
33942 7
th Street
1 Engine Company 3 Personnel
ACFD also provides Fire Prevention services including one Fire Marshal (shared allocation among cities), one Deputy Fire Marshal (full-time), and one code compliance officer (full-time). The City provides office space and clerical support for filing, records requests, record keeping, scheduling, and billing, among other administrative tasks. The Fire Prevention staff provide:

Fire code administration
Fire inspections
General inspections
Mandated inspections
Construction inspections
Operational permit inspections
Business inspections (including fireworks)
Pre-development review
Plan review (plan check)
Weed abatement, and
Fire investigations
Modifications toAgreement
Modifications to the agreement include:

Exhibit 3A, Updates the Union City Fire Apparatus, Vehicle and Equipment Inventory.

Exhibit 5A, Updates the Union City 5-year Cost Projections Provided by ACFD.

Exhibit 6A, Updates the actuarial valuation with June 30, 2023 GASB 75 Actuarial Valuation” Section 5(a)(3): Replaces “Local 55A and 55B” with “Local 55A, 55B, and 55C” to reflect the inclusion of Fire Dispatchers, a newly represented employee group under Alameda County Firefighters Local 55.6.

Section 5.b.4.D: Updates the reference from “GASB 43” to “GASB 75,” aligning with The anticipated cost of fire services under the First City Council/RSA Agenda 84 Tuesday, May 27, 2025
Amendment is included in the 2024–2026 Biennial Budget within the General Fund – Fire Services appropriation.

Qualityof Services Report
As part of the contract update, ACFD provided a Quality of Services report that includes a summary of services and response times, as well as a summary of the cost for services (see Attachment 2).

FISCAL IMPACT
There is no impact to the City’s FY2025-2026 and FY2026-2027 Biennial Budget. The projected costs, as noted below, have been included in the proposed budget.

FY2025-2026: $15,338,949
FY2026-2027: $15,823,295
FY2027-2028: $16,512,026
FY2028-2029: $17,200,541
FY2029-2030: $17,743,084
The projected costs of the entire five-year contract are expected to increase from $14,479,895 at the end of FY2024-2025 to $17,743,084 in FY 2029-2030, an increase of $3,263,189 over the five-year contract. These costs will be incorporated into the City's long-range financial forecast.

RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the First Amendment to the Agreement with the Alameda County Fire Department for fire and emergency services.

Prepared by:

Joan Malloy, City Manager
Submitted by:

Joan Malloy, City Manager
ATTACHMENTS:

Description Type
Attachment 1 - 2001Agreement withAlameda County Fire Department Attachment Attachment 2 - Quality of Service Report Attachment
Draft Resolution Resolution
ExhibitA - FirstAmendment toAgreement Exhibit
ExhibitA -Amended Exhibit 3A toAgreement -Apparatus, Equipment, Vehicles Exhibit ExhibitA -Amended Exhibit 5A toAgreement - Cost for Service Projections Exhibit ExhibitA - UpdatedGASB75Actuarial Valuation Exhibit
PowerPoint Presentation Attachment
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1 QUALITY OF SERVICES REPORT

CITY OF UNION CITY
December 2024

STATION LOCATION AND STAFFING
Alameda County Fire Department (ACFD) staffs and operates three fire stations within the City limits. Station 31 is located at 3355 Central Ave and is staffed with a three person crew: fire captain, engineer, and firefighter. Truck 31 is a specialized type of fire apparatus termed “quint” that combines the capabilities of an engine (fire pump, water tank, and fire hose) with the complement of ground ladders, tools and equipment of a fire truck and an aerial ladder device.

Station 32 is located at 31600 Alvarado Blvd and Station 33 is located at 33942 7th Street. Both Station 32 and 33 operates one engine company with a minimum staffing of three personnel each.

All ACFD fire companies in the City of Union City are staffed with three firefighters: one paramedic and two emergency medical technicians. Each engine and truck/quint company within the City of U n i o n C i t y is capable of providing advanced life support (paramedic) services. ACFD utilizes a constant staffing model as a department standard; this means that the appropriate number of personnel are available to fill all positions at each station on a daily basis.

ACFD utilizes a constant staffing model as a department standard; this means that the appropriate number of personnel are available to fill all positions at each station on a daily basis. Each engine and Quint company within the City of Union City is capable of providing advanced life support (paramedic) services. All ACFD apparatus have a minimum of three firefighters with at least one paramedic. All ACFD firefighters are at least emergency medical technicians.

RESPONSE TIMES
The response time standard requires that the first fire unit arrive on scene within 8-1/2 minutes or less of dispatch 90% of the time for emergency incidents. The chart below shows the response details from fiscal years 2021/2022, 2022/2023 and 2023/2024.

RESPONSE DETAILS
Year Percentage of All Emergency
Calls
< 8-1/2-minute response
Total Amount of Calls for
service (Emergency and NonEmergency)
2021-2022 93.2 6144
2022-2023 93.9 6323
2023-2024 97.0 6293
ACFD met or exceeded the response time standard for first alarm assignments within 20-1/4 minutes of dispatch 90% of the time. These response times represent calls where each apparatus (3 Engines, 1 Truck, and 1 Battalion Chief) arrived on scene and the incident was confirmed at the specified location.

City Council/RSA Agenda 183 Tuesday, May 27, 2025
2 FIRST ALARM RESPONSE TIMES
Fiscal Year First Alarms
< 20-1/4-minutes
First Alarms
> 20-1/4-minutes
Percentage
2021-2022 13 13 100
2022-2023 15 16 93.8
2023-2024 15 15 100

ADEQUACY OF SERVICES PROVIDED
A. Fire Protection/Response Services

EMERGENCY MEDICAL RESPONSE
ACFD provides a minimum of one paramedic on all fire apparatus in the City of Union City at all times. To date, the response times to EMS calls within the City have complied with the County EMS contractual requirement of 8-1/2 minutes or less 90% of the time for medical priority dispatch system (MPDS) “Priority 1-3”. In addition, ACFD provides medical oversight and a comprehensive quality improvement program as required by the City's First Responder Advance Life Support (FRALS) Agreement. ACFD has been in compliance with all applicable county and state data and certification/licensure requirements.

HAZARDOUS MATERIALS RESPONSE
ACFD has maintained a fully functioning hazardous materials team for the term of the City's contract. The team is equipped and trained to handle a variety of hazardous materials incidents including, radiological and biological incidents. The team is classified a Type I as defined by the California Office of Emergency Services. It responds and functions from specially equipped hazardous materials response units. ACFD is part of the Alameda County Mutual Aid Plan, which ensures the appropriate response to incidents that would otherwise overwhelm the fire resources in Union City/ACFD.

B. Fire Prevention Services

FIRE PREVENTION SERVICES
Staffing for the City of Union City Fire Prevention Bureau consists of one Deputy Fire Marshal, and one Fire Code Compliance Officer. The on-site Deputy Fire Marshal provides coordination of daily activities for Fire Prevention personnel assigned to the City. The Fire Marshal is also available to attend planning and development meetings as needed and provides general oversight for the ACFD Fire Prevention activities.

Fire Investigation - ACFD provides fire investigation services to determine origin and cause. Fire Investigators are called by operational personnel when the need arises.

Plan Review - Fire Prevention Staff review and approve plans routed by Community Development Staff. This includes building and planning referrals.

City Council/RSA Agenda 184 Tuesday, May 27, 2025
3 Fiscal Year Plan Checks
2020-2021 222
2021-2022 245
2022-2023 172
2023-2024 151
Development Inspection - Development Inspections are performed at a number of stages during development process. Fire Prevention personnel inspect the water supply, fire sprinklers, hydrants, and alarm systems prior to issuing a temporary or final certificate of occupancy by the Building Department.

Post Occupancy Inspections - Fire Prevention and Operation personnel perform a variety of post occupancy inspections including state mandated inspections.

COMMUNITY EDUCATION
The Alameda County Fire Department Public Education Unit coordinates community relations and public education requests and services. There are a variety of educational and training programs provided to the City of Union City. The following is a brief list of the programs offered.  Station Tours and Apparatus Visits
 Personnel Emergency Preparedness (PEP) Presentations
 Community Emergency Response Team (CERT) Training
 Community CPR (Hands-Only CPR)
 Career Day Speakers
 Public Information Notifications via Social Media & AC Alert  Community Festival/Fair Participation

COST OF SERVICES
The ACFD annual budget submission to the City has followed the internal timelines and deadlines established by the City throughout the term of the contract. The annual budget submission (both narrative and budget data) is prepared in a format that corresponds to the City's budget document. Fire Department Staff and City Staff have worked cooperatively during each year's budget development process to ensure that all questions and issues are resolved to the satisfaction of the City.

The chart below summarizes the ACFD contract and budget variance over the last contract period.

City Council/RSA Agenda 185 Tuesday, May 27, 2025
4 ACFD CONTRACT BUDGET VS ACTUAL FOR THE LAST CONTRACT PERIOD Fiscal Year Budget Actual Variance, $ Variance, %
2020-21 11,477,623 11,249,567 228,056 2%
2021-22 11,650,394 11,755,313 104,919 0.9%
2022-23 12,266,612 12,261,110 (5,502) (0.04%)
2023-24 13,640,799 13,741,088 100,289 0.7%

COST ANALYSIS
As a contract service provider to the City of Union City, the ACFD understands the importance of ensuring services are being delivered in the most cost effective and efficient manner possible.

To demonstrate the value of the contract for service between the City of Union City and the ACFD, a comparison to a like-size agency for cost per FTE and cost per company is provided in the following two tables using FY 2022-2023 adopted fire services operating budget.

Both comparisons demonstrate the benefits of contracting for service with the Alameda County Fire Department.

Operating
Budget* # of FTE† Cost Per FTE
City of Union City $13,387,264.00 27 $495,824.59
City of Fremont $75,349,000.00 136 $554,036.76
City of Hayward $48,867,915.00 115 $424,938.39
Livermore-Pleasanton Fire
Department** $52,230,799.00 102 $512,066.66
Operating
Budget*
# of
Companies
Cost Per
Company
City of Union City $13,387,264.00 3 $4,462,421.33
City of Fremont $75,349,000.00 13 $5,796,076.92
City of Hayward $48,867,915.00 11 $4,442,537.73
Livermore-Pleasanton Fire
Department** $52,230,799.00 10 $5,223,079.90
* Operating Budget adopted 2023-24 - General Fund
**Operating Budget Projected data 2023-24
†# of FTE includes Firefighters, Engineers and Captains Only Source: City Budget Reports
This assessment doesn't consider the enhanced services provided by the ACFD that Fremont, Hayward, or Livermore-Pleasanton doesn't offer. Enhanced services include a hazardous materials team, urban search and rescue company, bulldozer, water rescue and immediate access to any ACFD resources. The overall cost and resource benefit of the contract clearly demonstrates an advantage to the City of Union City. ACFD provides a unified response to emergency, centralized management of resources, reduction of duplication, "economies of scale" which improve cost containment, the ability to provide specialized services and retention of local control through a well-structured contract.

City Council/RSA Agenda 186 Tuesday, May 27, 2025
5 REPORTS AND RECORDS
County Audit - ACFD is audited on an annual basis by an independent financial auditor.

Additionally, the Alameda County Auditor-Controller's Office conducts periodic audits of ACFD’s specific operational and/or fiscal areas (i.e., fixed assets audit, payroll audit, etc.) City Staff has reviewed the most recent ACFD financial audit as part of the contract review.

Fire Department Complaints - All complaints received by the ACFD are forwarded to a Deputy Fire Chief. Each complaint is reviewed, investigated, and documented by the Deputy Chief handling the complaint. It is ACFD policy that the City Manager would be fully informed about any complaints and subsequent remedies.

ACFD Fire Advisory Commission - The ACFD Fire Advisory Commission meets on a quarterly basis, typically, the third Thursday of February, May, September & November. The City of Union City holds a seat on the Commission with an opportunity for an alternate Commissioner as well.

The Union City Council appoints the representative to the Commission from among current councilmembers.

FACILITIES
Buildings and Real Property- Fire Stations 31, 32 and 33 are owned and maintained by the City of Union City. ACFD has worked cooperatively with City staff to establish the annual budget for facility maintenance and capital projects. Day-to-day maintenance is handled by ACFD.

All work in excess of routine cleaning, light repairs and light maintenance shall require approval from the City prior to the performance of work.

Apparatus and Equipment - Apparatus and equipment within the City are owned by the City of Union City. Maintenance of fire apparatus is provided by ACFD mechanics and billed to the City at a rate of $186.00 per hour plus parts. An inventory of each apparatus, with its associated value, is maintained by ACFD and forwarded to the City of Union City as described above.

Payment for Services- The existing contract language specifies that ACFD, on a quarterly basis, will provide the City an expenditure breakdown and invoice for current services.

Evidence of Insurance- Staff has reviewed the evidence of insurance and self- insurance certificate that reflects the County of Alameda's self-insured liability and workers compensation policy limits.

DISPATCH
The ACFD’s Alameda County Regional Emergency Communications Center (ACRECC), a nationally accredited and distinguished Center of Excellence, has served as the Alameda County regional fire and emergency services (EMS) dispatch center since 2002. County EMS Agency, the Cities of Alameda, Livermore, Pleasanton, and Fremont, as well as Camp Parks, are also participants in ACRECC. The Alameda County's private ambulance provider, Falck Northern California, LLC, is also dispatched out of ACRECC. Dispatching fire, EMS, and ambulance calls from the same center provides for better coordination and quicker response times to emergency incidents.

City Council/RSA Agenda 187 Tuesday, May 27, 2025
6 The chart below summarizes the cost per call for the term of the contracts with ACFD.

Fiscal Year Cost per call
2020-21 $44.22
2021-22 $45.40
2022-23 $46.78
2023-24 $50.02
The cost per call for ACRECC is significantly lower than for comparable communication centers. ACFD is continuously working on exploring opportunities for integrating other fire departments into ACRECC with the goal of ensuring high quality, cost-effective fire dispatch services, state of the art emergency medical dispatch, and excellent customer service.

City Council/RSA Agenda 188 Tuesday, May 27, 2025
RESOLUTION NO. 2025-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST

AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND

ALAMEDA COUNTY FIRE DEPARTMENT FOR FIRE AND EMERGENCY

RESPONSE SERVICES
WHEREAS, the City of Union City (“City”) has been receiving fire and emergency response services from the Alameda County Fire Department (“ACFD”) since May 18, 2010 (C3306); and
WHEREAS, the 2010 agreement was extended to June 23, 2015 (C5268); and WHEREAS, the City and ACFD entered into an agreement on December 15, 2020 (C5708), to provide fire and emergency response services; and WHEREAS, ACFD has continuously provided excellent service to the City; and WHEREAS, ACFD and City staff have prepared Amendment No. 1 for City Council consideration that would extend the contract through June 30, 2030; and WHEREAS, the proposed Amendment includes non-substantive administrative updates; and
WHEREAS, the proposed amendment will not result in any unanticipated fiscal impacts to the City, as the associated costs of this Amendment are included in the Fiscal Year 2025-2026 and 2026-2027 Biennial Budget and are consistent with the City’s financial forecast; and
WHEREAS, the proposed Amendment ensures the City will continue to receive uninterrupted, high-quality fire and emergency response services.

NOW THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the City Manager to execute Amendment No. 1 to the Agreement with ACFD for fire and emergency response services in a form approved by the City Attorney.

City Council/RSA Agenda 189 Tuesday, May 27, 2025
Resolution No. 2025-XXX
1 st Amendment with the Alameda County Fire Department for Fire and Emergency Response Services

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PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 27th day of May 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
City Council/RSA Agenda 190 Tuesday, May 27, 2025

Page 1 of 3 ends

FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF UNION CITY AND THE ALAMEDA

COUNTY FIRE DEPARTMENT REGARDING FIRE AND EMERGENCY SERVICES This is the First Amendment (“Amendment”) to that certain agreement, effective February 20, 2021, between the ALAMEDA COUNTY FIRE DEPARTMENT, a dependent fire district formed under the Fire Protection District Law of 1987 (Health and Safety Code Sections 13800 et. seq.) and governed by the Board of Supervisors of the County of Alameda as its Board of Directors (“ACFD”) and the CITY OF UNION CITY (“City”), a municipal corporation (the “Parties”), for fire and emergency services (“the Agreement”) (ACFD Contract No. C-2020-186) (Union City Contract No. C5708).

RECITALS
WHEREAS, ACFD and the City previously entered into a contract for fire and emergency response services on or about July 1, 2010; and
WHEREAS, on or about February 20, 2021, ACFD and the City entered into the Agreement, which currently expires on June 30, 2025; and
WHEREAS, Section 9, subdivision a of the Agreement provides that the Agreement may be extended for one five-year term by mutual written agreement of the parties, provided the extension is fully executed at least nine months before the then-effective termination date, unless the Parties agree otherwise; and WHEREAS, the Parties desire, and herein agree, to extend the Agreement for one five-year extension term, even though the date is currently within nine months of the otherwise applicable termination date; and
WHEREAS, the Parties also wish to update certain outdated provisions of the Agreement; and WHEREAS, the Parties wish to extend the Agreement on the same terms and conditions as set forth in the Agreement, except as specifically amended herein.

In consideration of the mutual promises contained in the Agreement and herein, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. This Amendment will be effective at 12:00 a.m. on the date after it is executed by ACFD (“Effective Date”).

2. The Parties agree to extend the Agreement by five years, pursuant to Section 9, subdivision a, of the Agreement. As a result, as of the Effective Date, the term of the Agreement, which would otherwise expire at 11:59 p.m. on June 30, 2025, is extended through 11:59 p.m. on June 30, 2030.

3. Exhibit 3A, “2025 City of Union City Fire Apparatus, Vehicle and Equipment Inventory,” as attached to this Amendment, shall be added to Exhibit 3 of the Agreement and shall apply during the extended term.

4. Pursuant to Section 9, subdivision a, Exhibit 5A “Updated 5-Year Cost Projection Provided by ACFD,” as attached to this Amendment, shall be added to Exhibit 5 of the Agreement, and shall apply during the extended term.

City Council/RSA Agenda 191 Tuesday, May 27, 2025

Page 2 of 3 ends

5. Exhibit 6A, “June 30, 2023 GASB 75 Actuarial Valuation,” attached to this Amendment, shall be added to Exhibit 6 of the Agreement as of the Effective Date.

6. Section 5, subdivision a, subpart 3 of the Agreement is amended by the deletion of the phrase “Local 55A and 55B,” which is hereby replaced with the phrase “Local 55A, 55B, and 55C.”

7. Section 5, subdivision b, subpart 4, subsection D is amended by the deletion of the phrase “GASB 43,” which is hereby replaced with the phrase “GASB 75.”

8. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same agreement. The signatories warrant they have authority to execute this Amendment on behalf of each Party.

9. The Parties agree that digital signatures of the Parties included in this Amendment have the same force and effect as manual signatures when provided in compliance with both Parties’ signature policy requirements, if any.

10. Except as expressly modified by this Amendment, the terms and conditions of the Agreement are and remain in full force and effect.
[SIGNATURE PAGE FOLLOWS]
City Council/RSA Agenda 192 Tuesday, May 27, 2025

Page 3 of 3 ends

IN WITNESS WHEREOF, the Parties have executed this Amendment as of this ___ day of __________________, 20___.

ALAMEDA COUNTY FIRE DEPARTMENT, a
dependent fire protection district
By: ______________________________
William McDonald, Fire Chief
Date: ___________________________
CITY OF UNION CITY, a Municipal Corporation
By: _____________________________
Joan Malloy, City Manager
Date: ___________________________
Approved as to Form:

Donna R. Ziegler, County Counsel
By: ________________________
Kathy Lee, Deputy County Counsel
City Council/RSA Agenda 193 Tuesday, May 27, 2025
Unit number Unit type City ALCO Identifer Make Model VIN Year License # Station Department Status 223UC Type 3 (4x4) Union City E333 International 7400 4X4 1HTWEADN23J069443 1/1/2002 1126288 33 Apparatus Line 234UC Type 3 (4x4) Union City E332 International 7400 4X4 1HTWEADN83J069446 1/1/2002 1126287 32 Apparatus Line 237UC Engine Union City E532 Pierce DASH 2000 4P1CP02594A000644 1/1/2000 1066903 32 Apparatus Reserve 238UC Truck Union City T531 Pierce DASH 4P1CT025XYA000667 1/1/2000 1066901 31 Apparatus Reserve 239UC Truck Union City T31 Pierce ARROW XT 4P1BCAGF7KA019889 1/24/2019 1464582 31 Apparatus Line 242UC Engine Union City E32 Pierce DASH 2000 4P1CD01H27A007419 1/1/2007 1272221 32 Apparatus Line 243UC Engine Union City E531 Pierce ARROW XT 4P1CD01H97A007420 1/1/2007 1272222 31 Apparatus Reserve 244UC Engine Union City E33 Pierce ARROW XT 4P1BAAGF9GA016344 4/26/2016 1471014 33 Apparatus Line 42224 Staff Vehicle Union City FP17 Ford ESCAPE 1FMCU9GNXRUA54334 1/1/2024 1688024 0 Fire Prevention Line 42424 Staff Vehicle Union City FP11 Ford ESCAPE 1FMCU9GN8RUA53571 1/1/2024 1688502 0 Fire Prevention Line City of Union City: Exhibit 3A - Apparatus and Equipment Inventory City Council/RSA Agenda 194 Tuesday, May 27, 2025
Exhibit 5A
City Council/RSA Agenda 195 Tuesday, May 27, 2025
City Council/RSA Agenda 196 Tuesday, May 27, 2025
City Council/RSA Agenda 197 Tuesday, May 27, 2025
City Council/RSA Agenda 198 Tuesday, May 27, 2025

ALAMEDA COUNTY FIRE DEPARTMENT

RETIREE HEALTHCARE PLAN
June 30, 2023 Actuarial Valuation
Doug Pryor, ASA, EA, MAAA
Catherine Wandro, ASA, MAAA
Katherine Moore, ASA, MAAA
Foster & Foster, Inc.

February 27, 2024

l:\alamedacofdep(acfd)\opeb\2023_val\reports\f&f_alamedacofdep(acfd)_24-02-27_opeb_23-06-30_report_final.docx

CONTENTS
Topic Page
Benefit Summary 1
Implied Subsidy 5
Data Summary 7
Actuarial Assumption Highlights 9
Actuarial Methods 15
Assets 17
Results 21
Side Fund Calculations 33
Actuarial Certification 49
Exhibits
Premiums E - 1
Participant Statistics E - 3
Actuarial Assumptions E - 14
Definitions E - 24
Exhibit 6A
City Council/RSA Agenda 199 Tuesday, May 27, 2025

February 27, 2024 1

BENEFIT SUMMARY
Eligibility Service or disability retirement under CalPERS Medical
Benefit
Full monthly premium up to cap1:

OPEB
Tier
Retirement
Date2
Hire
Date Cap
Vesting
Schedule
1 < 6/30/22
< 4/1/09 100% of Kaiser
Region 1 Premium
Single, 2-Party, or Family
No
2 4/1/09-
12/31/14
Yes
3 > 1/1/15
90% of Kaiser
Region 1 Premium
Single or 2-Party
4 > 6/30/22 All
90% of Kaiser
Region 1 Premium
Single, 2-Party, or Family
(2-Party Post-Medicare)
Yes
Kaiser cap varies by medical coverage and Medicare eligibility 1 For special Safety group of retirees, cap is $164.94/month single or $250.85/month 2-Party. 2 November 3, 2022 for unrepresented employees.

February 27, 2024 2

BENEFIT SUMMARY
GrandFathered
Eligibility
for Tier 4
Grandfathered eligibility:

Hired before 4/1/09 with 14 years ACFD service on 6/30/22 vesting schedule does not apply
Hired 4/1/09 to 6/30/22 years of service for vesting schedule is based on total CalPERS service
Vesting
Schedule
Vesting % based on service, minimum of 5 years ACFD service:

Service Vesting % Service Vesting %
<10 PEMHCA Min 15 75%
10 50% 16 80%
11 55% 17 85%
12 60% 18 90%
13 65% 19 95%
14 70% 20+ 100%
Based on CalPERS service for retirees before 6/30/22 and grandfathered participants hired 4/1/09 to 6/30/22
Based on ACFD service for hires after 6/30/223
100% vesting with disability retirement 3
Includes prior service with an agency that has contracted with ACFD.

City Council/RSA Agenda 200 Tuesday, May 27, 2025

February 27, 2024 3

BENEFIT SUMMARY
Employee
Contrib.
1/1/21 through 6/20/22: 5.25% of base pay
6/30/22 and later: 4% of Firefighter annual top step base pay4 Surviving
Spouse
100% of retiree benefit continues to surviving spouse if retiree elects survivor annuity under CalPERS retirement plan
Other No dental, vision, life, or Medicare Part B reimbursements. 4 For non-safety, 4% of employees base pay if less than Firefighter top step base pay.

February 27, 2024 4

BENEFIT SUMMARY
Pay-AsYou-Go
Costs
(amounts in $ millions)
Contract
Agencies
Costs allocated to contract agencies based on agencies cost allocation percentage with ACFD
$1.3 $1.4 $1.6 $1.8 $1.9 $2.1 $2.5 $2.8 $3.2 $3.5 $3.9 $4.1 $4.2 $4.4 $4.5 $4.5 $-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
Cash Implied Subsidy
City Council/RSA Agenda 201 Tuesday, May 27, 2025

February 27, 2024 5

IMPLIED SUBSIDY
For PEMHCA, employer cost for allowing retirees to participate at active rates.

General trend:

Sample active age 40, retiree age 60:

Premiums PEMHCA Cost of
Benefits
$600 Active
$1,200
$500 Active
$600 Retiree $700 Retiree
25 30 35 40 45 50 55 60 64 Blended Premium 600 600 600 600 600 600 600 600 600 Cost by Age 400 420 460 500 550 600 640 700 800 $300 $400 $500 $600 $700 $800

February 27, 2024 6

IMPLIED SUBSIDY
GASB 75 defers to actuarial standards of practice.

Actuarial Standards Board ASOP 6 (May 2014):

Requires implied subsidy valued for community rated plans such as PEMHCA.

Timing: effective with all valuations on or after March 31, 2015 Valuations on and after June 30, 2015 include the PEMHCA implied subsidy.

City Council/RSA Agenda 202 Tuesday, May 27, 2025

February 27, 2024 7

DATA SUMMARY
Historical Participant Statistics
6/30/15 6/30/17 6/30/19 6/30/21 6/30/23
Actives:

Count 421 419 426 426 415
Average:

Age 42.6 41.7 41.7 42.0 43.4
ACFD Service 8.3 8.6 9.3 9.9 11.3
CalPERS Service 13.0 12.1 12.3 12.6 13.8
Salary $115,500 $120,600 $130,300 $ 140,700 $155,200
Total Salary (000s) $48,607 50,541 55,516 59,923 64,418 Retirees:

Count 246 292 308 331 336
Average:

Age 64.1 63.9 64.1 65.2 66.3
Retirement Age
Service 54.4 54.6 54.6 54.8 55.0
Disability 52.5 53.1 53.3 53.3 53.4

February 27, 2024 8

DATA SUMMARY
Participant Reconciliation
Actives Retirees Disabled
Surviving
Spouses Total
June 30, 2021 Valuation 426 206 100 25 757
New Hires 22 - - - 22
Terminations (18) - - - (18)
New Service Retirements (11) 11 - - -
New Disability Retirements (4) - 4 - -
Death with Survivor - (4) (1) 5 -
Death w/o Survivor or Cancelled - (2) (1) (7) (10)
Data Adjustments - (1) 1 - - June 30, 2023 Valuation 415 210 103 23 751

City Council/RSA Agenda 203 Tuesday, May 27, 2025

February 27, 2024 9

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
CERBT Investment Options
2018 Asset Allocation
Strategy 1 Strategy 2 Strategy 3
Global Equity 59% 40% 22%
Fixed Income 25% 43% 49%
TIPS 5% 5% 16%
Commodities 3% 4% 5%
REITs 8% 8% 8%
Total 100% 100% 100%
2022 Asset Allocation (approved March 14, 2022)
Strategy 1 Strategy 2 Strategy 3
Global Equity 49% 34% 23%
Fixed Income 23% 41% 51%
TIPS 5% 5% 9%
Commodities 3% 3% 3%
REITs 20% 17% 14%
Total 100% 100% 100%

February 27, 2024 10

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
Discount Rate
Future expected returns
Stochastic simulations of geometric average returns over 20 years 5,000 trials

2.50% inflation assumption
Projections based on 8 independent Investment Advisors 2021 10-year Capital Market Assumptions and where available, investment advisors long-term trends Confidence levels (based on 2022 asset allocations):

Strategy 1 Strategy 2 Strategy 3
50% Confidence Level 6.25% 5.75% 5.25%
55% Confidence Level 6.00% 5.50% 5.00%
60% Confidence Level 5.75% 5.25% 4.75%
ACFD currently in Strategy 1.

Separate sub-accounts for each contracting agency.

Recommend 6.25% for full-funding discount rate

City Council/RSA Agenda 204 Tuesday, May 27, 2025

February 27, 2024 11

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2021 Valuation June 30, 2023 Valuation
Valuation
Date
June 30, 2021
2022/23 and 2023/24 ADC
June 30, 2023
2024/25 and 2025/26 ADC
General
Inflation

2.50%
Used for economic assumptions
Same
Payroll
Increases
Aggregate Increases 2.75%
Merit Increases CalPERS
2000-2019 Experience Study
Same
Mortality,
Termination,
Disability,
Retirement
CalPERS 2000-2019 Experience
Study
Mortality projected with Scale
MP-2021
Same

February 27, 2024 12

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
Discount
Rate

4.87% - approx. blended rate
determined by allocating
liabilities to agencies based on
estimated pre-funding policies:

6.25% - full pre-funding rate
used for Dispatch, City of
Dublin, and LLNL

5.00% - partial pre-funding
rate (50% to 60% of ADC less
paygo) used for ALCO, City
of Newark, City of Emeryville,
Union City, and LBNL

4.00% - employee
contributions only (20% of
ADC less paygo) for City of
San Leandro

6.25% - side fund calculations,
CERBT Strategy #1

6.25% - CERBT Strategy #1
Based on GASBS 75 crossover
test methodology for the plan as
a whole
City Council/RSA Agenda 205 Tuesday, May 27, 2025

February 27, 2024 13

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2021 Valuation June 30, 2023 Valuation
Medical
Trend
Increase from Prior Year Calendar
Year PreMedicare
PostMedicare
Kaiser PostMedicare Other 2021 Actual 2021 Premiums
2022 Actual 2022 Premiums*
2023 6.50% 4.60% 5.65%
2024 6.25% 4.45% 5.45%
2025 6.00% 4.35% 5.25%
2026 5.75% 4.25% 5.05%
2027 5.55% 4.20% 4.90%
2028 5.35% 4.15% 4.75%
2029 5.15% 4.10% 4.60%
2030 4.95% 4.05% 4.45%
2031-35 4.80% 4.00% 4.35%
2036-45 4.65% 3.95% 4.25%
2046-55 4.50% 3.90% 4.20%
2056-65 4.35% 3.85% 4.15%
2066-75 4.05% 3.80% 3.95%
2076+ 3.75% 3.75% 3.75%
*Medical premiums after 2022 and estimated claims
after 2021 do not take into account buy-downs
(CalPERS subsidizations of premium rates from
reserves).

Increase from Prior Year Calendar
Year PreMedicare
PostMedicare
Kaiser PostMedicare Other 2021 n/a
2022 n/a
2023 Actual 2023 Premiums
2024 Actual 2024 Premiums
2025 8.50% 6.25% 7.50%
2026 7.90% 5.65% 6.90%
2027 7.35% 5.45% 6.50%
2028 6.75% 5.25% 6.10%
2029 6.20% 5.05% 5.70%
2030 5.60% 4.85% 5.25%
2031 5.05% 4.56% 4.85%
2032-38 4.45% 4.45% 4.45%
2039-40 4.35% 4.35% 4.35%
2041 4.30% 4.30% 4.30%
2042-44 4.25% 4.25% 4.25%
2045-47 4.20% 4.20% 4.20%
2048-50 4.15% 4.15% 4.15%
2076+ 3.45% 3.45% 3.45%

February 27, 2024 14

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2021 Valuation June 30, 2023 Valuation
PEMHCA
Minimum
Increases
Year PEMHCA Min
2021 $143.00
2022 $149.00
2023 $151.00
2024+ 4.00%/yr. increase
Year PEMHCA Min
2023 $151.00
2024 $157.00
2025+ 3.50%/yr. increase
City Council/RSA Agenda 206 Tuesday, May 27, 2025

February 27, 2024 15

ACTUARIAL METHODS
June 30, 2021 Valuation June 30, 2023 Valuation
Cost Method Entry Age Normal
Normal Cost is a level percent
of payroll
Same
Funding
Policy
Partial pre-funding, varies by
agency
Employees also contribute
Same
Amortization
Method
Level percent of payroll Same
Amortization
Periods
20-year, 25-year, and 28-year
UAAL amortization shown for
unfunded side fund liabilities
20-year UAAL amortization for
ADCs
18-year, 23-year, and 26-year
UAAL amortization shown for
unfunded side fund liabilities

February 27, 2024 16

ACTUARIAL METHODS
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City Council/RSA Agenda 207 Tuesday, May 27, 2025

February 27, 2024 17
ASSETS
Market Value of Plan Assets (MVA)5
(Amounts in $000s)
2021/22 2022/23
Projected
2023/24
Market Value
(Beginning of Year) $46,847 $44,963 $51,317
Contributions Employer 2,270 1,800 2,000
Contributions Employee 3,007 2,086 2,186
Disbursements (525) (529) (500)
Administrative Expenses (23) (23) (26)
Investment Expense (17) (17) -
Investment Return (6,595) 3,037 3,320
Market Value
(End of Year) 44,963 51,317 58,297
Approximate Annual Return (13.5%) 6.6% 6.25% 5
Market value of assets from the CERBT quarterly statements.

February 27, 2024 18
ASSETS
Actuarial Value of Plan Assets (AVA)
(Amounts in $000s)
2021/22 2022/23
Projected
2023/24
Actuarial Value
(Beginning of Year) $41,895 $48,488 $54,195
Contributions 5,277 3,886 4,186
Benefit Payment/Disbursements (525) (529) (500)
Administrative Expenses (23) (23) (26)
Expected Investment Return 2,745 3,093 3,500
Expected AVA (End of Year) 49,369 54,915 61,355
MVA (End of Year) 44,963 51,317 58,297
1/5 of (MVA - Expected AVA) (881) (720) (612)
Preliminary AVA 48,488 54,195 60,743
Minimum AVA (80% of MVA) 35,971 41,053 46,637
Maximum AVA (120% of MVA) 53,956 61,580 69,956
Actuarial Value
(End of Year) 48,488 54,195 60,743
Approximate AVA Return 4.2% 4.8% 5.2%
City Council/RSA Agenda 208 Tuesday, May 27, 2025

February 27, 2024 19
ASSETS
Historical Asset Changes
(Amounts in $000s)
13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Net Return - 22 229 1,460 1,413 1,510 1,050 9,423 (6,636) 2,997 Benefits Paid - - - - - - - - (525) (529)
ER Contributions - 2,563 9,200 1,171 2,041 1,997 1,693 1,553 2,270 1,800 EE Contributions 326 526 682 1,241 1,631 2,030 2,484 2,602 3,007 2,086 $(10,000)
$(8,000)
$(6,000)
$(4,000)
$(2,000)
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000

February 27, 2024 20
ASSETS
Annualized Asset Returns
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23
Market Value 1.2% 2.9% 10.2% 7.3% 6.2% 3.5% 26.7% -13.5% 6.6% Expected Return 7.25% 7.25% 7.25% 6.75% 6.75% 6.75% 6.75% 6.25% 6.25% Actuarial Value 6.0% 6.1% 7.2% 6.9% 6.7% 6.1% 10.2% 4.2% 4.8% (20%)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
30%
City Council/RSA Agenda 209 Tuesday, May 27, 2025

February 27, 2024 21

RESULTS
Actuarial Obligations
(Amounts in $000s)
6/30/21
Valuation
6/30/23
Valuation
Discount Rate 4.87% 6.25%
Present Value of Benefits Actives $ 116,268 $100,897
Retirees 71,713 64,555
Total 187,981 165,452
Actuarial Accrued Liability Actives 55,838 57,760
Retirees 71,713 64,555
Total 127,551 122,315
Actuarial Value of Assets (41,895) (54,195)
Unfunded AAL 85,656 68,120
Funded Ratio 32.8% 44.3%
Pay-As-You-Go (22/23 & 24/25) 5,948 6,211

February 27, 2024 22

RESULTS
Historical Actuarial Accrued Liability
(Amounts in $000s)
0% 0% 0% 0% 3%
13%
19%
33%
44%
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
1/1/08 1/1/10 6/30/11 6/30/13 6/30/15 6/30/17 6/30/19 6/30/21 6/30/23 Retiree pay-go Retiree AAL less pay-go Active AAL AVA MVA X% Funded Ratio
City Council/RSA Agenda 210 Tuesday, May 27, 2025

February 27, 2024 23

RESULTS
Actuarial Gains & Losses
(Amounts in $000s)
AAL
6/30/21 Actual $127,551
6/30/23 Expected 138,918
Experience (Gains)/Losses:

Premiums/Claims Different than Expected (1,959)
Demographic & Other (2,537)
Assumption Changes:

Healthcare & PEMHCA Minimum Trend 9,643
Discount Rate (4.87% to 6.25%) (21,750)
Total Changes (16,603)
6/30/23 Actual 122,315

February 27, 2024 24

RESULTS
Actuarially Determined Contribution (ADC)
(Amounts in $000s)
2024/25 2025/26
ADC - $ Normal Cost $4,715 $4,848
UAAL Amortization6 4,869 5,003
Total ADC 9,584 9,851
Employee Contributions7 (2,246) (2,308)
Employer ADC 7,338 7,544
Projected Payroll 68,010 69,880
ADC - %Pay Normal Cost 6.9% 6.9%
UAAL Amortization 7.2% 7.2%
Total ADC 14.1% 14.1%
Employee Contributions (3.3%) (3.3%)
Employer ADC 10.8% 10.8% 6
Based on 20-year amortization periods. 7
Estimated employee contributions for 23/24 provided by ACFD; projected to 2024/25 and 2025/26 based on payroll increase assumption.

City Council/RSA Agenda 211 Tuesday, May 27, 2025

February 27, 2024 25

RESULTS
Actuarial Obligations by Pre/Post Medicare
(Amounts in $000s)
6/30/23 Valuation
Pre
Medicare
Results
Post
Medicare
Results Total
Present Value of Benefits Actives $73,109 $27,788 $100,897 Retirees 28,719 35,837 64,555
Total 101,828 63,625 165,452
Actuarial Accrued Liability Actives 41,219 16,541 57,760 Retirees 28,719 35,837 64,555
Total 69,938 52,378 122,315
Actuarial Value of Assets8(30,988) (23,208) (54,195)
Unfunded AAL 38,950 29,170 68,120
Funded Ratio 44.3% 44.3% 44.3% 8
Assets allocated to Pre/Post Medicare based on AAL.

February 27, 2024 26

RESULTS
Schedule of Funding Progress
(Amounts in $000s)
Actuarial
Valuation
Date
Actuarial
Value of
Assets
(a)
Entry Age
Actuarial
Accrued
Liability
(b)
Unfunded
Actuarial
Accrued
Liability
(b-a)
Funded
Ratio
(a/b)
Payroll
(c)
UAAL as
Percentage
of Payroll
((b-a)/c)
1/1/08 $ 0 $ 60,663 $ 60,663 0.0% $ 46,446 130.6%
1/1/10 0 77,388 77,388 0.0% 46,942 164.9%
6/30/11 0 91,574 91,574 0.0% 48,377 189.3%
6/30/13 0 111,712 111,712 0.0% 50,708 220.3%
6/30/15 3,528 126,879 123,351 2.8% 50,186 245.8%
6/30/17 17,434 137,238 119,804 12.7% 52,057 230.1%
6/30/19 28,091 145,153 117,062 19.4% 55,516 210.9%
6/30/21 41,895 127,551 85,656 32.8% 59,923 142.9%
6/30/23 54,195 122,315 68,120 44.3% 64,418 105.7%
City Council/RSA Agenda 212 Tuesday, May 27, 2025

February 27, 2024 27

RESULTS
Actuarial Obligations by Cash/Implied Subsidy
6/30/23 Valuation
(Amounts in $000s)
Cash
Subsidy
Implied
Subsidy Total
Present Value of Benefits Actives $86,203 $14,694 $100,897 Retirees 56,621 7,935 64,555
Total 142,824 22,629 165,452
Actuarial Accrued Liability Actives 49,191 8,569 57,760 Retirees 56,621 7,935 64,555
Total 105,812 16,504 122,315
Actuarial Value of Assets9(46,883) (7,313) (54,195)
Unfunded AAL 58,929 9,191 68,120
Funded Ratio 44.3% 44.3% 44.3%
2024/25 Pay-As-You-Go 5,182 1,028 6,211 9
Assets allocated to Cash/Implied Subsidy based on AAL.

February 27, 2024 28

RESULTS
Actuarially Determined Contribution (ADC) by Cash/Implied Subsidy 2024/25 Fiscal Year
(Amounts in $000s)
Cash
Subsidy
Implied
Subsidy Total
ADC - $ Normal Cost $4,055 $660 $4,715
UAAL Amortization10 4,219 650 4,869
Total ADC 8,274 1,310 9,584
Employee Contributions (2,246) - (2,246)
Employer ADC 6,028 1,310 7,338
Projected Payroll 68,010 68,010 68,010
ADC - %Pay Normal Cost 6.0% 1.0% 6.9%
UAAL Amortization 6.2% 1.0% 7.2%
Total ADC 12.2% 1.9% 14.1%
Employee Contributions (3.3%) (0.0%) (3.3%)
Employer ADC 8.9% 1.9% 10.8% 10 Based on 20-year amortization periods.

City Council/RSA Agenda 213 Tuesday, May 27, 2025

February 27, 2024 29

RESULTS
Actuarial Obligations by Group
6/30/23 Valuation
(Amounts in $000s)
Miscellaneous
Safety Non-Dispatch Dispatch Total
Present Value of Benefits Actives $92,213 $5,220 $3,464 $100,897 Retirees 62,118 2,057 381 64,555
Total 154,331 7,277 3,845 165,452
Actuarial Accrued Liability Actives 53,779 2,353 1,627 57,760 Retirees 62,118 2,057 381 64,555
Total 115,897 4,410 2,008 122,315
Actuarial Value of Assets11 (49,032) (1,866) (3,297) (54,195) Unfunded AAL 66,865 2,544 (1,289) 68,120
Funded Ratio 42.3% 42.3% 164.2% 44.3%
2024/25 Pay-As-You-Go 6,018 166 26 6,211 11 Actual Dispatch assets, with Safety/Misc assets allocated on AAL.

February 27, 2024 30

RESULTS
Actuarially Determined Contribution (ADC) by Group
2024/25 Fiscal Year
(Amounts in $000s)
Miscellaneous
Safety Non-Dispatch Dispatch Total
ADC - $ Normal Cost $4,238 $311 $167 $4,715
UAAL Amortization12 4,775 191 (97) 4,869
Total ADC 9,013 502 70 9,584
Employee Contributions (1,904) (203) (139) (2,246)
Employer ADC 7,109 298 (69) 7,338
Projected Payroll 60,309 4,264 3,436 68,010
ADC - %Pay Normal Cost 7.0% 7.3% 4.9% 6.9%
UAAL Amortization 7.9% 4.5% (2.8%) 7.2%
Total ADC 14.9% 11.8% 2.0% 14.1%
Employee Contributions (3.2%) (4.8%) (4.0%) (3.3%)
Employer ADC 11.8% 7.0% (2.0%) 10.8% 12 Based on 20-year amortization periods.

City Council/RSA Agenda 214 Tuesday, May 27, 2025

February 27, 2024 31

RESULTS
Benefit Payment Projection by Cash/Implied Subsidy
(Amounts in $000s)
Fiscal
Year
Cash
Subsidy
Implied
Subsidy Total
2024/25 $5,182 $1,028 $6,211
2025/26 5,621 1,101 6,722
2026/27 6,124 1,246 7,371
2027/28 6,495 1,267 7,762
2028/29 6,936 1,342 8,277
2029/30 7,282 1,360 8,641
2030/31 7,482 1,265 8,747
2031/32 7,789 1,252 9,041
2032/33 8,143 1,277 9,420
2033/34 8,665 1,403 10,068

February 27, 2024 32

RESULTS
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City Council/RSA Agenda 215 Tuesday, May 27, 2025

February 27, 2024 33

SIDE FUND CALCULATIONS
Side Funds Purpose
Allow each agency in ACFD the choice of pre-funding their OPEB benefit independent of the pre-funding choice of other agencies in ACFD Side Funds are established for each agency within ACFD based on the full prefunding discount rate They represent the amount of unfunded liability for each agency due to past service, based on ACFD retiree medical benefit
Each agency decides how much, if any, of its own side fund to pre-fund If paid off would fully pre-fund past-service liability for agency

February 27, 2024 34

SIDE FUND CALCULATIONS
Side Funds Methodology
Initial side fund determined as of 6/30/08, or when joining ACFD if later, for each agency in ACFD.

Yearly side fund calculation:

Allocate years full pre-funding Normal Cost to each participating agency based on FTE, remaining is allocated based on allocation % of shared positions.

Each agency side fund will change:
(Beginning of year side fund with interest to end of year) + (Allocated portion of full pre-funding NC)
(Allocated benefit payments with interest to end of year) Difference between total side fund amount and full pre-funding AAL is allocated to each agency based on FTE, remaining based on allocation % of shared positions.

Each agency determines whether to make a pre-funding contribution to their CERBT sub-account or not, agency side fund is adjusted by any assets in sub-account:
(End of year side fund)
(End of year assets in CERBT sub-account)

City Council/RSA Agenda 216 Tuesday, May 27, 2025

February 27, 2024 35

SIDE FUND CALCULATIONS
Side Fund Analysis and 6/30/22 Adjustment
Side Funds were set up in 2008 to enable agencies to pre-fund OPEB benefits independent of the pre-funding choice of other agencies in ACFD.

After 2008, Side Funds are projected forward based on a cost (liability) allocation methodology, with subsequent side funds set up for new agencies (Newark, Union City, Emeryville).

While Side Fund liabilities generally seem reasonable, the LLNL Side Fund was in an overfunded position as of June 30, 2021 despite only employee contributions having been paid to CERBT trust.

Main driver for LLNL anomaly is side fund liability set up in 2008 was not based on demographics of LLNL participants.

Adjusted side funds - Recalculated the LLNL initial side fund amount based on LLNL demographics when joining ACFD, rolled-forward to June 30, 2022, and allocated a credit back to the other 4 agencies who were with ACFD at the time LLNL joined (ACFD, San Leandro, Dublin, and LBNL).

This approach provides reasonable Side Funds for all agencies including LLNL.

There would be no change to the side fund amounts for the cities of Newark, Union City, and Emeryville since their initial side funds were based on their demographics.

February 27, 2024 36

SIDE FUND CALCULATIONS
Summary of Adjustments to LLNL Initial Side Fund Liability (SFL) and Original Agencies (Amounts in $millions)
Dispatch ACFD San
Leandro Dublin LBNL LLNL Newark Union City Emeryville Total Prior Calculation of 6/30/22 Side Funds without Adjustment SFL $1.9 $52.3 $29.6 $12.8 $1.6 $0.1 $5.2 $6.6 $2.9 $113.1 Assets 3.0 17.0 3.3 14.8 0.9 1.6 4.2 2.5 1.2 48.5
Unfunded (1.1) 35.3 26.3 (2.0) 0.7 (1.5) 1.0 4.1 1.7 64.6 New Calculation of 6/30/22 Side Funds based on Adjustment to Initial Agencies Side Funds13 Orig SFL $1.9 $52.3 $29.6 $12.8 $1.6 $0.1 $5.2 $6.6 $2.9 $113.1 Revise for
LLNL
- (3.2) (1.8) (0.8) (0.1) 6.0 - - - - Revised
SFL 1.9 49.1 27.7 12.0 1.5 6.1 5.2 6.6 2.9 113.1
Assets 3.0 17.0 3.3 14.8 0.9 1.6 4.2 2.5 1.2 48.5
Revised
Unfunded (1.1) 32.1 24.4 (2.8) 0.6 4.5 1.0 4.1 1.7 64.6 13 Revised LLNL side fund on 6/30/22 if initial 6/30/08 side fund had been based on hire dates of the 33 initial LLNL firefighters under age 50 (consistent with methodology for subsequent joining agencies). Agencies existing at LLNL entry (ACFD, San Leandro, Dublin, and LBNL) revised proportionately. Remaining agencies side funds are unchanged.

City Council/RSA Agenda 217 Tuesday, May 27, 2025

February 27, 2024 37

SIDE FUND CALCULATIONS
Actuarial Obligations for Side Fund Calculations
Full Funding Discount Rate
(Amounts in $000s)
6/30/21 Valuation 6/30/23 Valuation
6/30/21
Projected
6/30/22 6/30/23
Projected
6/30/24
Full Funding Discount Rate 6.25% 6.25%
Present Value of Benefits $148,385 $165,452
Actuarial Accrued Liability Safety $102,697 $106,917 $115,897 $121,564 Misc Non Dispatch 3,854 4,235 4,410 4,857
Misc Dispatch 1,710 1,913 2,008 2,246
Total 108,261 113,065 122,315 128,667
Actuarial Value of Assets (41,895) (48,488) (54,195) (60,743) Unfunded AAL 66,366 64,577 68,120 67,924
Normal Cost n/a 4,190 n/a 4,715
Pay-As-You-Go 5,579 5,948 5,665 6,211

February 27, 2024 38

SIDE FUND CALCULATIONS
Actuarially Determined Contribution (ADC) for Side Fund Calculations 6/30/21 Valuation 6/30/23 Valuation
2022/23 2023/24 2024/25 2025/26

6.25% 6.25%
ADC - $ Normal Cost $4,190 $4,308 $4,715 $4,848
UAAL Amortization14 4,628 4,755 4,869 5,003
Total ADC 8,818 9,063 9,584 9,851
Employee Contributions15 (2,088) (2,146) (2,246) (2,308) Employer ADC 6,730 6,917 7,338 7,544
Projected Payroll 63,264 65,004 68,010 69,880
ADC - %Pay Normal Cost 6.6% 6.6% 6.9% 6.9%
UAAL Amortization 7.3% 7.3% 7.2% 7.2%
Total ADC 13.9% 13.9% 14.1% 14.1%
Employee Contributions (3.3%) (3.3%) (3.3%) (3.3%)
Employer ADC 10.6% 10.6% 10.8% 10.8% 14 Based on 20-year amortization periods. 15 Actual 2022/23 and projected 23/24 employee contributions provided by ACFD; projected to 2024/25 and 2025/26 based on payroll increase. assumption.

City Council/RSA Agenda 218 Tuesday, May 27, 2025

February 27, 2024 39

SIDE FUND CALCULATIONS
CERBT Sub-Accounts and AVA Calculation
Fiscal Year 2022/23
(Amounts in $000s)
Dispatch ALCO San
Leandro Dublin LBNL LLNL Newark
Union
City
Emeryville Total
MVA 6/30/22 $2,802 $15,757 $3,091 $13,726 $865 $1,471 $3,855 $2,300 $1,095 $44,963 EE Contrib. 135 593 402 229 76 191 172 172 115 2,086
ER Contrib. - 1,800 - - - - - - - 1,800
Disbursements - - - (529) - - - - - (529)
Inv. Earnings 186 1,057 217 927 59 103 256 156 76 3,037 Admin. Exp. (1) (8) (2) (7) (0) (1) (2) (1) (1) (23)
Invest. Exp. (1) (6) (1) (5) (0) (1) (1) (1) (0) (17)
MVA 6/30/23 3,122 19,194 3,707 14,341 1,000 1,764 4,280 2,626 1,284 51,317 AVA Ratio 16 105.61%
AVA 6/30/23 3,297 20,270 3,915 15,145 1,056 1,863 4,520 2,773 1,356 54,195 16 Ratio of valuation 6/30/23 Actuarial Value of Assets ($54,195) to Market Value of Assets ($51,317) = 105.61%.

February 27, 2024 40

SIDE FUND CALCULATIONS
CERBT Sub-Accounts and AVA Calculation
Estimated Fiscal Year 2023/24
(Amounts in $000s)
Dispatch ALCO San
Leandro Dublin LBNL LLNL Newark
Union
City
Emeryville Total
MVA 6/30/23 $3,122 $19,194 $3,707 $14,341 $1,000 $1,764 $4,280 $2,626 $1,284 $51,317 EE Contrib. 135 624 422 241 80 201 181 181 121 2,186
ER Contrib. - 2,000 - - - - - - - 2,000
Disbursements - - - (500) - - - - - (500)
Inv. Earnings 199 1,281 245 888 65 116 273 170 84 3,320 Admin. Exp. (2) (10) (2) (7) (1) (1) (2) (1) (1) (26)
Invest. Exp. - - - - - - - - - - MVA 6/30/24 3,454 23,088 4,372 14,963 1,145 2,081 4,731 2,975 1,488 58,297 AVA Ratio 17 104.20%
AVA 6/30/24 3,599 24,058 4,555 15,590 1,193 2,168 4,930 3,100 1,550 60,743 17 Ratio of valuation projected 6/30/24 Actuarial Value of Assets ($60,743) to projected Market Value of Assets ($58,297) = 104.20%.

City Council/RSA Agenda 219 Tuesday, May 27, 2025

February 27, 2024 41

SIDE FUND CALCULATIONS
Side Fund Liability (SFL) Calculations
2022/23 Fiscal Year 6.25% Discount Rate
Based on Adjusted 6/30/22 Side Fund Amounts
(Amounts in $000s)
Dispatch ALCO San
Leandro Dublin LBNL LLNL Newark
Union
City
Emeryville Total
Allocation % 0.00% 30.41% 20.59% 11.76% 3.92% 9.80% 8.82% 8.82% 5.88% 100.00% Side Fund BOY $1,912 $49,086 $27,718 $12,017 $1,484 $6,117 $5,185 $6,633 $2,913 $113,065 Pool NC18 154 1,190 750 436 140 349 332 332 227 3,909
BP (50) (1,700) (1,164) (665) (222) (554) (499) (499) (332) (5,685) Invest. Return 128 3,090 1,743 758 95 387 329 420 186 7,136 Exp. SFL EOY 2,143 51,666 29,048 12,546 1,497 6,299 5,347 6,886 2,993 118,425 (Gains)/Losses19 (135) 1,245 818 471 154 385 356 356 240 3,890 Side Fund EOY 2,008 52,911 29,866 13,017 1,651 6,684 5,703 7,242 3,233 122,315 AVA EOY (3,297) (20,270) (3,915) (15,145) (1,056) (1,863) (4,520) (2,773) (1,356) (54,195) Unfunded SFL (1,289) 32,641 25,951 (2,128) 595 4,821 1,183 4,469 1,877 68,120 Unfunded SFL
on MVA basis (1,114) 33,717 26,159 (1,324) 651 4,920 1,423 4,616 1,949 70,998 18 Allocated based on FTE first, and then allocation % of shared positions, except for Dispatch which is based on actual Dispatch valuation results. 19 Difference between expected 6/30/23 side fund amounts and actual based on the 6/30/23 OPEB valuation results.

February 27, 2024 42

SIDE FUND CALCULATIONS
Side Fund Liability (SFL) Calculations
Estimated 2023/24 Fiscal Year 6.25% Discount Rate
Based on Adjusted 6/30/22 Side Fund Amounts
(Amounts in $000s)
Dispatch ALCO San
Leandro Dublin LBNL LLNL Newark
Union
City
Emeryville Total
Allocation % 0.00% 30.41% 20.59% 11.76% 3.92% 9.80% 8.82% 8.82% 5.88% 100.00% Side Fund BOY $2,008 $52,911 $29,866 $13,017 $1,651 $6,684 $5,703 $7,242 $3,233 $122,315 Pool NC20 152 1,306 825 480 153 384 365 365 249 4,279
BP (47) (1,708) (1,157) (661) (220) (551) (495) (495) (330) (5,665) Invest. Return 134 3,336 1,883 823 106 425 364 460 207 7,738 Exp. SFL EOY 2,246 55,846 31,417 13,659 1,690 6,942 5,936 7,571 3,360 128,667 (Gains)/Losses21 - - - - - - - - - - Side Fund EOY 2,246 55,846 31,417 13,659 1,690 6,942 5,936 7,571 3,360 128,667 AVA EOY (3,599) (24,058) (4,555) (15,590) (1,193) (2,168) (4,930) (3,100) (1,550) (60,743) Unfunded SFL (1,353) 31,788 26,862 (1,931) 497 4,774 1,006 4,471 1,810 67,924 Unfunded SFL
on MVA basis (1,208) 32,758 27,045 (1,304) 545 4,861 1,205 4,596 1,872 70,370 20 Allocated based on FTE first, and then allocation % of shared positions, except for Dispatch which is based on actual Dispatch valuation results. 21 No (gains)/losses since estimated 6/30/24 SFL is calculated based on expected (not actual) benefit payments and investment return.

City Council/RSA Agenda 220 Tuesday, May 27, 2025

February 27, 2024 43

SIDE FUND CALCULATIONS
Side Fund Liability Balances
(Amounts in millions)
$0
$10
$20
$30
$40
$50
$60
6/30/20 Side Fund Balance
6/30/21 Side Fund Balance
6/30/22 Side Fund Balance
6/30/23 Side Fund Balance

February 27, 2024 44

SIDE FUND CALCULATIONS
CERBT Sub-Account Assets (AVA)
(Amounts in millions)
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
$22
6/30/20 CERBT Sub-Account Assets
6/30/21 CERBT Sub-Account Assets
6/30/22 CERBT Sub-Account Assets
6/30/23 CERBT Sub-Account Assets
City Council/RSA Agenda 221 Tuesday, May 27, 2025

February 27, 2024 45

SIDE FUND CALCULATIONS
Unfunded Side Fund Liability (Unfunded SFL)
Side Fund Balance less CERBT Sub-Account Assets
(Amounts in millions)
-$5
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
6/30/20 Unfunded Side Fund Balance
6/30/21 Unfunded Side Fund Balance
6/30/22 Unfunded Side Fund Balance
6/30/23 Unfunded Side Fund Balance

February 27, 2024 46

SIDE FUND CALCULATIONS
Sample 2024/25 ADCs at Varying UAAL Amortization Periods

6.25% Discount Rate
(Amounts in $000s)
Dispatch ALCO San
Leandro Dublin LBNL LLNL Newark
Union
City
Emeryville Total
18-Year UAAL Amortization
2024/25 ADC Normal Cost $167 $1,437 $910 $529 $170 $423 $402 $402 $275 $4,715 UAAL Amort (105) 2,457 2,076 (149) 38 369 78 346 140 5,250 Total ADC 62 3,894 2,986 380 208 792 480 748 415 9,965
23-Year UAAL Amortization
2024/25 ADC Normal Cost $167 $1,437 $910 $529 $170 $423 $402 $402 $275 $4,715 UAAL Amort (88) 2,071 1,750 (126) 32 311 66 291 118 4,425 Total ADC 79 3,508 2,660 403 202 734 468 693 393 9,140
26-Year UAAL Amortization
2024/25 ADC Normal Cost $167 $1,437 $910 $529 $170 $423 $402 $402 $275 $4,715 UAAL Amort (81) 1,914 1,617 (116) 30 287 61 269 109 4,090 Total ADC 86 3,351 2,527 413 200 710 463 671 384 8,805

City Council/RSA Agenda 222 Tuesday, May 27, 2025

February 27, 2024 47

SIDE FUND CALCULATIONS
Sample 2024/25 Trust Contributions at Varying UAAL Amortization Periods

6.25% Discount Rate
(Amounts in $000s)
Dispatch ALCO San
Leandro Dublin LBNL LLNL Newark
Union
City
Emeryville Total
18-Year UAAL Amortization
2024/25 ADC $62 $3,894 $2,986 $ 380 $208 $792 $480 $748 $415 $9,965 Minus BP (26) (1,881) (1,273) (727) (242) (606) (546) (546) (364) (6,211) Minus EE Cont. (224) (712) (468) (267) (89) (223) (200) (200) (134) (2,517) Trust Contrib. (188) 1,301 1,245 (614) (123) (37) (266) 2 (83) 1,237 23-Year UAAL Amortization
2024/25 ADC $79 $3,508 $2,660 $403 $202 $734 $468 $693 $393 $9,140 Minus BP (26) (1,881) (1,273) (727) (242) (606) (546) (546) (364) (6,211) Minus EE Cont. (224) (712) (468) (267) (89) (223) (200) (200) (134) (2,517) Trust Contrib. (171) 915 919 (591) (129) (95) (278) (53) (105) 412 26-Year UAAL Amortization
2024/25 ADC $86 $3,351 $2,527 $413 $200 $710 $463 $671 $384 $8,805 Minus BP (26) (1,881) (1,273) (727) (242) (606) (546) (546) (364) (6,211) Minus EE Cont. (224) (712) (468) (267) (89) (223) (200) (200) (134) (2,517) Trust Contrib. (164) 758 786 (581) (131) (119) (283) (75) (114) 77

February 27, 2024 48

SIDE FUND CALCULATIONS
Historical Contributions and Full Pre-Funding ADCs22
(Amounts in $000s)
22 20-year UAAL amortization.
69% 133% 62% 79% 86% 85% 90% 120% 103%
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Net Benefit Pmts - Cash Benefit Pmts - IS
ER Trust Contribution EE Trust Contribution
Total ADC (including EE Contrib)
Percentage of ADC Contributed
City Council/RSA Agenda 223 Tuesday, May 27, 2025

February 27, 2024 49

ACTUARIAL CERTIFICATION
This report presents the Alameda County Fire Department Retiree Healthcare Plan (Plan) June 30, 2023 actuarial valuation.

The purpose of this valuation is to:

Determine the June 30, 2023 Benefit Obligations,
Determine the Plans June 30, 2023 Funded Status, and
Calculate the June 30, 2023 Side Funds Balances and 2024/25 Actuarially Determined Contributions.

The report provides information intended for funding the Plan, but may not be appropriate for other purposes. Information provided in this report may be useful for the Plans financial management. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as: plan experience differing from that anticipated by the assumptions; changes in assumptions; changes expected as part of the natural progression of the plan; and changes in plan provisions or applicable law. Actuarial models necessarily rely on the use of estimates and are sensitive to changes. Small variations in estimates may lead to significant changes in actuarial measurements. Due to the limited scope of this assignment, we did not perform an analysis of the potential range of such measurements.

The valuation is based on Plan provisions, participant data, and asset information provided by the Department as summarized in this report, which we relied on and did not audit. We reviewed the participant data for reasonableness.

To the best of our knowledge, this report is complete and accurate and has been conducted using generally accepted actuarial principles and practices. As members of the American Academy of Actuaries meeting the Academy Qualification Standards, we certify the actuarial results and opinions herein.

Respectfully submitted,
Doug Pryor, ASA, EA, MAAA
Foster & Foster, Inc
February 27, 2024.

Catherine A. Wandro, ASA, MAAA
Foster & Foster, Inc.

February 27, 2024
Katherine Moore, ASA, MAAA
Foster & Foster, Inc.

February 27, 2024

February 27, 2024 50

ACTUARIAL CERTIFICATION
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City Council/RSA Agenda 224 Tuesday, May 27, 2025

February 27, 2024 E-1

EXHIBITS - PREMIUMS
2023 PEMHCA Monthly Medical Premiums
Region 1
Non-Medicare Eligible Medicare Eligible
Medical Plan Single 2-Party Family Single 2-Party Family Anthem Select $1,128.83 $2,257.66 $2,934.96 $413.59 $827.18 $1,240.77 Anthem Traditional 1,210.71 2,421.42 3,147.85 413.59 827.18 1,240.77 Blue Shield Access+ 1,035.21 2,070.42 2,691.55 361.90 723.80 1,085.70 Blue Shield Trio 888.94 1,777.88 2,311.24 361.90 723.80 1,085.70 Health Net SmartCare 1,174.50 2,349.00 3,053.70 n/a n/a n/a Kaiser 913.74 1,827.48 2,375.72 283.25 566.50 849.75
Kaiser Summit n/a n/a n/a 336.29 672.58 1,008.87
UnitedHealthcare Alliance 1,044.07 2,088.14 2,714.58 n/a n/a n/a UnitedHealthcare Group n/a n/a n/a 299.68 599.36 899.04 UnitedHealthcare Edge n/a n/a n/a 357.70 715.40 1,073.10 Western Health Advantage 760.17 1,520.34 1,976.44 331.11 662.22 993.33 PERS Platinum 1,200.12 2,400.24 3,120.31 420.02 840.04 1,260.06 PERS Gold 825.61 1,651.22 2,146.59 392.71 785.42 1,178.13 PORAC 825.00 1,875.00 2,300.00 465.00 1,030.00 1,395.00

February 27, 2024 E-2

EXHIBITS - PREMIUMS
2024 PEMHCA Monthly Medical Premiums
Region 1
Non-Medicare Eligible Medicare Eligible
Medical Plan Single 2-Party Family Single 2-Party Family Anthem Select $1,138.86 $2,277.72 $2,961.04 $405.83 $811.66 $1,217.49 Anthem Traditional 1,339.70 2,679.40 3,483.22 405.83 811.66 1,217.49 Blue Shield Access+ 1,076.84 2,153.68 2,799.78 392.68 785.36 1,178.04 Blue Shield Trio 946.84 1,893.68 2,461.78 392.68 785.36 1,178.04 Kaiser 1,021.41 2,042.82 2,655.67 324.79 649.58 974.37
Kaiser Summit n/a n/a n/a 386.55 773.10 1,159.65
UnitedHealthcare Alliance 1,091.13 2,182.26 2,836.94 n/a n/a n/a UnitedHealthcare Harmony 937.39 1,874.78 2,437.21 n/a n/a n/a UnitedHealthcare Group n/a n/a n/a 341.72 683.44 1,025.16 UnitedHealthcare Edge n/a n/a n/a 366.01 732.02 1,098.03 Western Health Advantage 807.23 1,614.46 2,098.80 268.62 537.24 805.86 PERS Platinum 1,314.27 2,628.54 3,417.10 448.15 896.30 1,344.45 PERS Gold 914.82 1,829.64 2,378.53 406.60 813.20 1,219.80 PORAC 931.00 2,117.00 2,651.00 465.00 1,030.00 1,395.00 City Council/RSA Agenda 225 Tuesday, May 27, 2025

February 27, 2024 E-3
EXHIBITS PARTICIPANT STATISTICS
Participant Statistics
June 30, 2023
Miscellaneous
Safety Non-Dispatch Dispatch Total
Actives:

Count 337 46 32 415
Average Age 43.1 47.9 39.3 43.4
Average Service
ACFD 12.2 7.6 7.5 11.3
CalPERS 15.0 9.1 8.3 13.8
Average 22/23 Salary $169,500 $87,800 $101,700 $155,200 Total 22/23 Salary (000s) 57,124 4,039 3,255 64,418
Retirees:

Count 317 13 6 33623
Average Age 66.2 68.0 67.4 66.3
Average Retirement Age
Service Retirement 54.5 61.6 59.5 55.0
Disability Retirement 53.4 54.2 n/a 53.4
23 Includes 23 retirees who waive medical coverage.

February 27, 2024 E-4
EXHIBITS PARTICIPANT STATISTICS
Participant Statistics
June 30, 2021
Miscellaneous
Safety Non-Dispatch Dispatch Total
Actives:

Count 347 42 37 426
Average Age 41.8 47.2 37.8 42.0
Average Service ACFD 10.6 7.9 5.9 9.9
CalPERS 13.5 9.8 6.9 12.6
Average 20/21 Salary $150,500 $99,400 $95,200 $140,700
Total 20/21 Salary (000s) 52,226 4,173 3,523 59,923
Retirees:

Count 314 11 6 33124
Average Age 65.1 68.0 65.6 65.2
Average Retirement Age Service Retirement 54.3 61.9 59.2 54.8 Disability Retirement 53.3 54.2 n/a 53.3
24 Includes 23 retirees who waive medical coverage.

City Council/RSA Agenda 226 Tuesday, May 27, 2025

February 27, 2024 E-5
EXHIBITS PARTICIPANT STATISTICS
Medical Plan Participation
Medical Plan Actives
Retirees
Pre-65 Post-65 Total
Anthem Select 0% 3% n/a 1%
Anthem Traditional 1% 0% n/a 0%
Blue Shield Access+ 1% 5% n/a 2%
Blue Shield Trio 0% 1% n/a 0%
Health Net SmartCare 0% 0% n/a 0%
Kaiser 64% 39% 45% 42%
UnitedHealthcare 1% 0% 10% 6%
Western Health Adv. 1% 1% 0% 1%
PERS Platinum 3% 9% 25% 18%
PERS Gold 1% 1% 2% 1%
PORAC 28% 41% 14% 27%
Anthem Medicare Preferred n/a n/a 3% 2%
Blue Shield Medicare n/a n/a 1% 0%
Total 100% 100% 100% 100%

February 27, 2024 E-6
EXHIBITS PARTICIPANT STATISTICS
Current Active Medical Plan Coverage
Medical Plan Single 2-Party Family Waived Total
Anthem Select 2 - - - 2
Anthem Traditional - - 3 - 3
Blue Shield Access+ - - 4 - 4
Blue Shield Trio - - 2 - 2
Health Net SmartCare - - 2 - 2
Kaiser 65 36 147 - 248
UnitedHealthcare Alliance - - 3 - 3
Western Health Advantage - - 2 - 2
PERS Platinum 3 2 5 - 10
PERS Gold - 1 3 - 4
PORAC 17 15 76 - 108
Waived - - - 27 27
Total 87 54 247 27 415
City Council/RSA Agenda 227 Tuesday, May 27, 2025

February 27, 2024 E-7
EXHIBITS PARTICIPANT STATISTICS
Retiree Medical Plan Coverage - Pre 65
Medical Plan Single 2-Party Family Waived Total
Anthem Select - 1 3 - 4
Blue Shield Access+ - 5 2 - 7
Blue Shield Trio - 1 - - 1
Kaiser 7 30 20 - 57
Western Health Adv. 1 1 - - 2
PERS Platinum 3 6 5 - 14
PERS Gold - 1 1 - 2
PORAC 6 32 23 - 61
Waived - - - 11 11
Total 17 77 54 11 159

February 27, 2024 E-8
EXHIBITS PARTICIPANT STATISTICS
Retiree Medical Plan Coverage - Post 65
Medical Plan Single 2-Party Family Waived Total
Anthem Medicare 1 4 - - 5
Blue Shield Medicare - 1 - - 1
Kaiser 30 41 3 - 74
Kaiser Summit - 1 - - 1
UnitedHealthcare Group 9 7 - - 16
UnitedHealthcare Edge 1 - - - 1
PERS Platinum 16 25 1 - 42
PERS Gold - 2 - - 2
PORAC 5 14 4 - 23
Waived - - - 12 12
Total 62 95 8 12 177
City Council/RSA Agenda 228 Tuesday, May 27, 2025

February 27, 2024 E-9
EXHIBITS PARTICIPANT STATISTICS
Retirees Medical Plan Coverage by Age
Medical Coverage
Age Single 2-Party Family Waived Total
Under 50 - 1 2 3 6
50-54 - 4 5 2 11
55-59 1 20 27 1 49
60-64 16 52 20 5 93
65-69 25 34 5 6 70
70-74 19 30 1 3 53
75-79 10 29 1 2 42
80-84 8 2 1 1 12
85 & Over - - - - - Total 79 172 62 23 336
Average Age 70.3 67.0 59.8 64.4 66.3

February 27, 2024 E-10
EXHIBITS PARTICIPANT STATISTICS
Actives by Age and Service Safety
ACFD Service
Age < 1 1-4 5-9 10-14 15-19 20-24 25 Total
< 25 - 2 - - - - - 2
25-29 - 14 1 - - - - 15
30-34 - 20 33 1 - - - 54
35-39 - 8 30 19 4 - - 61
40-44 - 2 19 17 26 9 - 73
45-49 - 2 2 14 17 16 - 51
50-54 - - 1 21 9 12 1 44
55-59 - - 1 13 4 2 4 24
60-64 - - 1 3 4 - 4 12
65 - 1 - - - - - 1
Total - 49 88 88 64 39 9 337
City Council/RSA Agenda 229 Tuesday, May 27, 2025

February 27, 2024 E-11
EXHIBITS PARTICIPANT STATISTICS
Actives by Age and Service Miscellaneous (Non-Dispatch) ACFD Service
Age < 1 1-4 5-9 10-14 15-19 20-24 25 Total
< 25 - - - - - - - - 25-29 - - - - - - - - 30-34 1 2 1 - - - - 4 35-39 1 - 3 - - - - 4
40-44 - 4 5 1 - - - 10
45-49 3 1 4 1 - 1 - 10
50-54 - 1 4 - 2 - - 7
55-59 2 - 2 - - - 1 5
60-64 - - 1 1 2 - 1 5
65 - - - 1 - - - 1
Total 7 8 20 4 4 1 2 46

February 27, 2024 E-12
EXHIBITS PARTICIPANT STATISTICS
Actives by Age and Service Miscellaneous (Dispatch)

ACFD Service
Age < 1 1-4 5-9 10-14 15-19 20-24 25 Total
< 25 - - - - - - - - 25-29 - 3 - - - - - 3
30-34 1 6 1 - - - - 8
35-39 - 2 3 1 - - - 6
40-44 - 1 4 1 2 - - 8
45-49 - 1 - 1 1 - - 3
50-54 - - - - 3 - - 3
55-59 - - - - 1 - - 1
60-64 - - - - - - - -
65 - - - - - - - - Total 1 13 8 3 7 - - 32
City Council/RSA Agenda 230 Tuesday, May 27, 2025

February 27, 2024 E-13
EXHIBITS PARTICIPANT STATISTICS
Actives by Age and Service Total
ACFD Service
Age < 1 1-4 5-9 10-14 15-19 20-24 25 Total
< 25 - 2 - - - - - 2
25-29 - 17 1 - - - - 18
30-34 2 28 35 1 - - - 66
35-39 1 10 36 20 4 - - 71
40-44 - 7 28 19 28 9 - 91
45-49 3 4 6 16 18 17 - 64
50-54 - 1 5 21 14 12 1 54
55-59 2 - 3 13 5 2 5 30
60-64 - - 2 4 6 - 5 17
65 - 1 - 1 - - - 2
Total 8 70 116 95 75 40 11 415

February 27, 2024 E-14

EXHIBITS - ACTUARIAL ASSUMPTIONS
June 30, 2021 Valuation June 30, 2023 Valuation
Valuation
Date
June 30, 2021
2022/23 and 2023/24 ADC
June 30, 2023
2024/25 and 2025/26 ADC
General
Inflation

2.50%
Used for economic assumptions
Same
Payroll
Increases
Aggregate Increases 2.75%
Merit Increases CalPERS 2000-
2019 Experience Study
Same
Admin.

Expenses

0.25% of retiree PEMHCA
premiums

0.05% of CERBT Assets
Added to Normal Cost
Same
PEMHCA
Minimum
Increases
Year PEMHCA Min
2021 $143.00
2022 $149.00
2023 $151.00
2024+ 4.00%/yr. increase
Year PEMHCA Min
2023 $151.00
2024 $157.00
2025+ 3.50%/yr. increase
City Council/RSA Agenda 231 Tuesday, May 27, 2025

February 27, 2024 E-15

EXHIBITS - ACTUARIAL ASSUMPTIONS
June 30, 2021 Valuation June 30, 2023 Valuation
Discount
Rate

4.87% - approx. blended rate
determined by allocating
liabilities to agencies based on
estimated pre-funding policies:

6.25% - full pre-funding rate
used for Dispatch, City of
Dublin, and LLNL

5.00% - partial pre-funding rate
(50% to 60% of ADC less
paygo) used for ALCO, City of
Newark, City of Emeryville,
Union City, and LBNL

4.00% - employee
contributions only (20% of
ADC less paygo) for City of
San Leandro

6.25% - side fund calculations,
CERBT Strategy #1

6.25% - CERBT Strategy #1
Based on GASBS 75 crossover
test methodology for the plan as a
whole

February 27, 2024 E-16

EXHIBITS - ACTUARIAL ASSUMPTIONS
June 30, 2021 Valuation June 30, 2023 Valuation
Medical
Trend
Increase from Prior Year Calendar
Year PreMedicare
PostMedicare
Kaiser PostMedicare Other 2021 Actual 2021 Premiums
2022 Actual 2022 Premiums*
2023 6.50% 4.60% 5.65%
2024 6.25% 4.45% 5.45%
2025 6.00% 4.35% 5.25%
2026 5.75% 4.25% 5.05%
2027 5.55% 4.20% 4.90%
2028 5.35% 4.15% 4.75%
2029 5.15% 4.10% 4.60%
2030 4.95% 4.05% 4.45%
2031-35 4.80% 4.00% 4.35%
2036-45 4.65% 3.95% 4.25%
2046-55 4.50% 3.90% 4.20%
2056-65 4.35% 3.85% 4.15%
2066-75 4.05% 3.80% 3.95%
2076+ 3.75% 3.75% 3.75%
*Medical premiums after 2022 and estimated claims after 2021 do not take into account buy-downs (CalPERS
subsidizations of premium rates from reserves).

City Council/RSA Agenda 232 Tuesday, May 27, 2025

February 27, 2024 E-17

EXHIBITS - ACTUARIAL ASSUMPTIONS
June 30, 2021 Valuation June 30, 2023 Valuation
Unit 002
Cap Incr.
0% Same
Age-related
Claims
Costs for
Medicare
Advantage
Plans
Due to age-risk adjusted federal
subsidies, no age-based claims
costs were included for Medicare
Advantage plans.

Same
Mortality,
Termination,
Disability,
Retirement
CalPERS 2000-2019 Experience
Study
Mortality projected with Scale
MP-2021
CalPERS 2000-2019 Experience
Study
Mortality projected with Scale
MP-2021
Waived
Retirees
Pre 65: 10% re-elect at age 65
Post 65: 0% re-elect
Same

February 27, 2024 E-18

EXHIBITS - ACTUARIAL ASSUMPTIONS
June 30, 2021 Valuation June 30, 2023 Valuation
Medical
Plan at
Retirement
Currently covered: same as
current medical plan
Currently waived: Kaiser Region 1
Same
Participation
at
Retirement
Hired before 4/1/09:

Currently covered - 100%
Currently waived - 90%
Hired on or after 4/1/09:

Service Participation
< 10 60%
10-14 90%
15-19 95%
20 100%
Same
City Council/RSA Agenda 233 Tuesday, May 27, 2025

February 27, 2024 E-19

EXHIBITS - ACTUARIAL ASSUMPTIONS
June 30, 2021 Valuation June 30, 2023 Valuation
Medicare
Eligibility
Actives and pre-65 retirees: 100%
Post-65 retirees: Current
Medicare status
Everyone eligible for Medicare
will elect Part B coverage
Same
Marital
Status at
Retirement
Actives:

Currently covered - current
marital status
Currently waived - 80%
married
Retirees - current marital status
Same
Spouse Age Actives: Males 3 years older than
females
Retirees: Males 3 years older
than females if spouse birth date
not available
Same

February 27, 2024 E-20

EXHIBITS - ACTUARIAL ASSUMPTIONS
June 30, 2021 Valuation June 30, 2023 Valuation
Dependents
at
Retirement
% electing family coverage at
retirement
Misc: 10%
Safety: 30%
No family coverage 65
Same
Actuarial
Models
Our valuations were performed using and relying on ProVal, an actuarial model leased from Wintech. Our use of ProVal is consistent with its intended purpose. We have reviewed and understand ProVal and its operation, sensitivities and dependencies.

Data
Quality
Our valuations used census data provided by ACFD. We reviewed the data for reasonableness and resolved any questions with ACFD. We believe the resulting data can be relied on for all purposes of this valuation without limitation
COVID-19 No adjustments to the assumptions have been made for COVID-19 since there is not yet enough data to evaluate the future impacts City Council/RSA Agenda 234 Tuesday, May 27, 2025

February 27, 2024 E-21

EXHIBITS - ACTUARIAL ASSUMPTIONS
June 30, 2023 Valuation
HMO
Medical
Claims Cost
2024
Sample estimated monthly claims costs:

Region 1 - HMO
Anthem
Select
Anthem
Traditional
Blue Shield
Access+ Kaiser
United
Healthcare
Alliance
Age M F M F M F M F M F
25 $413 $682 $486 $803 $391 $645 $371 $612 $396 $654
35 543 955 639 1,124 513 903 487 857 520 915
45 776 1,034 913 1,216 734 978 696 927 743 991
55 1,220 1,333 1,435 1,569 1,154 1,261 1,094 1,196 1,169 1,278 60 1,535 1,545 1,805 1,817 1,451 1,461 1,376 1,386 1,470 1,480 64 1,824 1,760 2,146 2,071 1,725 1,664 1,636 1,579 1,748 1,687

February 27, 2024 E-22

EXHIBITS - ACTUARIAL ASSUMPTIONS
June 30, 2023 Valuation
PPO
Medical
Claims Cost
2024
Sample estimated monthly claims costs:

Region 1 Medicare Eligible
PERS Platinum PERS Gold PORAC
Age M F M F M F
25 $443 $722 $307 $499 $362 $603
35 578 1,005 399 694 478 846
45 819 1,086 565 750 686 917
55 1,279 1,396 883 964 1,083 1,184
60 1,605 1,616 1,107 1,115 1,364 1,373
64 1,905 1,839 1,314 1,269 1,622 1,566
65 447 428 370 354 408 391
70 484 463 401 384 442 423
75 516 495 427 410 471 452
80 532 514 440 425 486 469
85 526 512 435 424 480 468
City Council/RSA Agenda 235 Tuesday, May 27, 2025

February 27, 2024 E-23

EXHIBITS - ACTUARIAL ASSUMPTIONS
June 30, 2023 Valuation
Basis for
Assumptions
CalPERS 2021 experience study based on 2000 to 2019 demographic experience
Mortality improvement based on Society of Actuaries table Inflation based on our estimate for the Plans long time horizon Capital market assumptions based on 2021 Foster & Foster stochastic analysis, taking into account capital market assumptions of investment advisory firms
Age-based claims were based on demographic data provided by CalPERS and Society of Actuaries studies.

Participation and coverage assumptions based in part on Plan experience Medical trends were based on expectations over the short term blended into long term medical trends developed using the Society of Actuaries Getzen Model of Long-Run Medical Cost Trends.

February 27, 2024 E-24

EXHIBITS - DEFINITIONS
OPEB
Actuarial
Valuation
Project future employer-provided benefit cash flows for current active employees and current retirees
Discount projected cash flow to valuation date using discount rate (assumed return on assets used to pay benefits) and other actuarial assumptions to determine present value of projected future benefits (PVB) Allocate PVB to past, current, and future periods using the actuarial cost method
Actuarial cost method used for this valuation is the Entry Age Normal Cost method which determines Normal Cost as a level percentage of payroll (same method used by CalPERS)
Normal Cost is amount allocated to current fiscal year
Actuarial Accrued Liability (AAL) is amount allocated to prior service with employer
Unfunded AAL (UAAL) is AAL less plan assets pre-funded in a segregated and restricted trust
PayGo Cost Cash subsidy is the pay-as-you-go employer benefit payments for retirees Implied subsidy is the difference between the actual cost of retiree benefits and retiree premiums subsidized by active employee premiums City Council/RSA Agenda 236 Tuesday, May 27, 2025

February 27, 2024 E-25

EXHIBITS - DEFINITIONS
Present Value of Benefits

February 27, 2024 E-26

EXHIBITS - DEFINITIONS
Acronyms
Used in
Report
AAL - Actuarial Accrued Liability
ADC - Actuarially Determined Contribution
AVA - Actuarial Value of Assets
BP - Benefit Payments
EAN - Entry Age Normal Cost Method
GASBS 75 - Governmental Accounting Standards Board Statement No. 75
NC - Normal cost
OPEB - Other (than pensions) Post Employment Benefits
SFL -Side Fund Liability
PVB - Present Value of Projected Benefits
UAAL - Unfunded Actuarial Accrued Liability
City Council/RSA Agenda 237 Tuesday, May 27, 2025
First Amendment to the Agreement
Between Union City and Alameda
County Fire Department for Fire and
Emergency Response Services
City Council Meeting
May 27, 2025
Agenda Item 7.1
City Council/RSA Agenda 238 Tuesday, May 27, 2025
2 Background – ACFD
• ACFD established in 1993
• Over 400 personnel
• Governed by the Board of Supervisors
• Provides Service:
• San Leandro
• Dublin
• Newark
• Union City
• Emeryville
• Lawrence Berkeley National Laboratory
• Lawrence Livermore National Laboratory
City Council/RSA Agenda 239 Tuesday, May 27, 2025
3 Background – Union City
• Contracted with ACFD in 2010 with 4 Fire Stations
• Renewed in 2015 for additional 5 years
• 2018 - City engaged CPSM to evaluate delivery service • Results of analysis concluded
• Low calls for service for Fire Station 30
• Significant budget savings
• City Council closed Fire Station 30
• 2021 new ACFD contract signed
• City Council considering 5-year renewal
City Council/RSA Agenda 240 Tuesday, May 27, 2025
4 Fire and Emergency Response Services
Fire Station 31
3355 Central Avenue 1 Quint Company 3 Personnel
Fire Station 32
31600 Alvarado Boulevard 1 Engine Company 3 Personnel
Fire Station 33
33942 7th Street 1 Engine Company 3 Personnel
• 27 Firefighters – 3 shifts
• 3 Battalion Chiefs
• Deputy Chief (portion)
• Fire Chief (portion)
• City provides admin staff
support
City Council/RSA Agenda 241 Tuesday, May 27, 2025
5 Fire and Emergency Response Services
Fire Prevention
Services
• Fire code administration
• Fire inspections
• Pre-development review
• Plan review (plan check)
• Weed abatement, and
• Fire investigations
Staff
• Fire Marshal (portion)
• Deputy Fire Marshal
• Fire Inspector
City Council/RSA Agenda 242 Tuesday, May 27, 2025
6 Modifications to Agreement
• Update to Fire Apparatus, Vehicle and
Equipment Inventory (Exhibit 3A)
• Update to 5-Year Cost Projections (Exhibit 5A)
• Update to Actuarial Valuation for retirement
obligations (Exhibit 6A)
• Language Change to reflect Fire Dispatchers as
represented group
• Update Language to reflect new actuarial for
OPEB obligations (GASB 75)
City Council/RSA Agenda 243 Tuesday, May 27, 2025
7 Fiscal Impacts
No impact to FY 2025-2026 and
FY 2026-2027 Biennial Budget
FY 2025-2026: $15,338,949
FY 2026-2027: $15,823,295
FY 2027-2028: $16,512,026
FY 2028-2029: $17,200,541
FY 2029-2030: $17,743,084
City Council/RSA Agenda 244 Tuesday, May 27, 2025
8 Recommendation
Authorize the City Manager to execute
the First Amendment to the Agreement
with Alameda County Fire Department
for fire and emergency services
City Council/RSA Agenda 245 Tuesday, May 27, 2025
Agenda Item
DATE: 5/27/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT RESOLUTIONS APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDED

AND RESTATED FRANCHISE AGREEMENT FOR LANDFILL, COMPOST, AND RECYCLE COLLECTION SERVICES WITH REPUBLIC SERVICES FOR AN ADDITIONAL TEN-YEAR TERM COMMENCING JULY1, 2025 THROUGH JUNE 30, 2035 AND AN AMENDED AND RESTATED FRANCHISE AGREEMENT FOR RECYCLING

COLLECTION AND PROCESSING SERVICES WITH TRI-CITY COMMUNITY DEVELOPMENT CORPORATION (TRI-CED) FOR AN ADDITIONAL TEN-YEAR TERM COMMENCING JULY1, 2025 THROUGH JUNE 30, 2035

EXECUTIVE SUMMARY
Staff recommends that the City Council adopt resolutions authorizing the City Manager to execute an Amended and Restated Franchise Agreement for Landfill, Compost, and Recycle Collection Services with Republic Services, and an Amended and Restated Franchise Agreement with Tri-CED, both for additional ten-year terms commencing July 1, 2025 through June 30, 2035 (New Agreements). The New Agreements establish the rates charged to the City’s ratepayers commencing in FY 2025-2026 on July 1, 2025 and the methodology for future annual changes to the compensation paid to Republic Services and Tri-CED and the rates charged to fund the cost for services provided.

STRATEGIC PLAN ALIGNMENT
This report is in alignment with the following City Council priority:

Goal D: Environmental Sustainability and Infrastructure Strategy 12: Coordinate with City departments, commercial and residential customers to implement the requirements of state organics and food recovery legislation.

BACKGROUND
The City executed an eight (8) year extension to the Franchise Agreement for Landfill, Compost and Recycle Collection Services with Republic Services in 2017, and concurrently a ten (10) year extension to the Franchise Agreement for Recycling Collection and Processing Services with Tri-CED. The term of the Franchise Agreements with both Republic Services and Tri-CED expire on June 30, 2025. On June 13, 2023, the City Council provided staff direction to proceed with implementing a one-year extension to the Franchise Agreements and to negotiate a ten-year extension.

On March 26, 2024, the City Council provided staff direction to continue negotiating a ten-year extension to the Franchise Agreements and to explore additional cost savings. The New Agreements establish the compensation paid to the companies and the rates charged to ratepayers for service commencing FY 2025-2026 on July 1, 2025.

DISCUSSION
The City and its franchise collection services partners, Republic Services and Tri-CED, commenced ten (10) year contract extension discussions in October 2023 and concluded these negotiations recently. The City received cost proposals from the companies that address several program and service needs that were deficient in the current contracts. These needs include providing new residential carts to customers and repainting the commercial bins to ensure color-coding compliance with SB 1383. For example, SB 1383 requires recycling containers to be City Council/RSA Agenda 246 Tuesday, May 27, 2025
blue, therefore the City’s prior gray residential containers and white commercial containers were considered non-compliant. Similarly, SB 1383 requires landfill containers to be gray or black; however, the City’s landfill containers were blue.

As part of the New Agreements, both companies are requiring significant cost increases in current services provided, such as compost processing (Republic Services - 107.0% increase, but spread over two-years (FY2024-2025 and FY2025-2026) to reduce the rate impact) and recycling processing (Tri-CED, 117.9% increase commencing FY 2024-2025), as well as ample compensation to provide other new programs and services. These cost increases for both Republic Services and Tri-CED commenced in FY 2024-2025 with a 7.29% increase from Republic Services and a 24.95% increase from Tri-CED. The additional cost increase commencing in FY2025-26 will be 11.43% increase for Republic Services and a 5.87% increase for Tri-CED.

New Programs, Services and Contract Terms
The New Agreements include a variety of changes and improvements to services and contract terms compared with the prior Agreements.

These changes improve the services provided to residents and businesses, ensure the City’s compliance with State mandates, and mitigate the potential for high rate increases for the ten-year term of the NewAgreements.

Below is a list of the key programs and service enhancements that are included in the NewAgreements:

Blue residential recycling carts (Tri-CED)
Green residential compost carts (Republic Services/Tri-CED) Gray residential landfill carts (Republic Services)
Blue commercial bins (repainted) (Republic Services)
Gray commercial bins (repainted) (Republic Services)
Additional public education and outreach staffing (Tri-CED) Ensuring capacity of compost processing capacity (Republic Services) Recycling processing facility equipment improvements (Tri-CED) Providing compost carts and service to parcelized residential customers (Republic Services/Tri-CED) Providing residential customers direct billing Services (Republic Services – will commence in June 2025 for FY 2025-2026 services beginning on July 1, 2025; replacing billing for these services through the property tax assessment) Providing 400 tons of compost material to the City for use at the Community Compost Hub or for spreading on City turf fields (Republic Services)
SB 1383 Compliance Route Audits (Republic Services and Tri-CED) Providing a 15.0% discount to eligible senior and low-income households New Compensation and Rate Setting Methodology
The New Agreements prescribe a substantively different and improved approach to adjusting both Republic Services and Tri-CED’s compensation and the rates charged to residents and businesses commencing in FY2026-2027, compared to the process included in the prior Agreements. The prior Agreements allowed for an annual increase in the company’s compensation and rates charged to ratepayers based on changes in several indices (index-based) and a second process whereby the changes in indices were also coupled with a true-up of the company’s revenue and expenses (cost-based). The cost-based approach included a 6.0% cap and was applied every third year of the term and the index-based also included a 6.0% cap and was applied the two years in between the cost-based.

The New Agreements greatly simplify the compensation and rate setting methodology commencing in FY 2026-2027 by relying on the annual change in a single index or CPI, the Bay Area Sewer-Water-Trash Index, in lieu of using several indices to adjust labor, fuel, medical benefits, etc. In addition, there is an annual 5.0% cap on the compensation and rate increase that will be considered for approval, with any percentage above 5.0% rolled over to the next fiscal year.

The compensation and rate adjustment for FY 2025-2026 primarily relies on the cost-based adjustment methodology prescribed in the prior Franchise Agreements due to the one-year extension to the Agreements granted by the City Council. This is because the last cost-based adjustment was employed three-years ago for FY 2022-2023 and the one-year extension resulted in allowing the companies to submit another “true-up” cost-based compensation application for FY 2025-2026. Therefore, the compensation adjustment applications submitted by both companies included an adjustment to expenses not associated with new negotiated items per the cost-based methodology and it also includes the new negotiated costs.

FY2025-26 Compensation and Rates
The proposed compensation increase for Republic Services and Tri-CED and the associated proposed rate increases are included in the New Agreements. The compensation details are provided as Exhibit 11.1.A in the Republic Services Franchise Agreement and in Exhibit G in the Tri-CED Franchise Agreement. The proposed rates are provided as Exhibit 16 in the Republic Services Franchise Agreement, and in Exhibit P in the Tri-CED Franchise Agreement.

City Council/RSA Agenda 247 Tuesday, May 27, 2025
Both Republic Services and Tri-CED submitted compensation (and rate) adjustment applications in April, 2025, as required in the Franchise Agreements. Both applications followed the cost-based adjustment methodology prescribed in the current Franchise Agreements, and included costs associated with the recently negotiated programs and services in the New Agreements. The City’s review of the applications conducted with support from R3 Consulting, Inc. resulted in substantive decreases in the proposed compensation and rate increases. The following provides the results of the City’s review which both Republic Services and Tri-CED have agreed to:

Proposed Compensation Increases for FY2025-2026

11.43% for Republic Services ($17,788,653 Total Compensation)

5.87% for Tri-CED ($3,652,173 Total Compensation)
Due to the change from billing residential customers via the property tax assessment to direct billing by Republic Services, and potentially continuing the City’s preferred practice to collect its existing Stormwater Compliance Fee through the property tax roll, the effective rate increase for Residential customers is different than the actual compensation increase for Republic Services. The rates charged by Republic Services will no longer include the City’s existing Stormwater Compliance Fee and the City Council will consider continuing to collect this Fee ($80.31 per property per year) through the property tax roll at a later date. Since the City’s existing Stormwater Compliance Fee will no longer be collected through the landfill, compost and recycle collection rates charged by Republic Services, the effective rate increase for FY 2025-2026 will be as follows:

Proposed Rate Increases for FY2025-2026

4.92% Combined for Single-Family Customers

35.50% for Parcelized Multi-Family Customers (now receiving compost collection service)

4.48% for Multi-family and Commercial Customers
Therefore, the current rates will be adjusted based on these effective rate increases in order to generate adequate compensation for Republic Services, Tri-CED and the City Fees pursuant to the NewAgreements.

Table 1 below provides a comparison of the approved FY2023-2024, FY2024-25 and the proposed FY2025-2026 compensation and rate increases. It is important to note that the Combined Single-Family rate increase of 5.92% does not include the City’s existing Stormwater Compliance Fee which will no longer be collected through the landfill, compost and recycle rates. In addition, the Combined Parcelized MultiFamily rate increase of 35.50% is the result of providing these customers weekly compost collection service which has not been provided prior to FY2025-2026.

Residential Collection Service Rates
Union City homeowners currently pay for curbside collection of landfill, compost, and recycle collection services by way of special assessments applied to annual property tax statements issued by the Alameda Tax Collector. Commencing in FY2025-2026, the cost for landfill, compost, and recycle collection services will no longer be included in the property tax assessment and Republic Services will bill customers directly. The new bills will be issued quarterly and will commence in June 2025 for service provided beginning July 1, 2025.

The fees for basic service are based on weekly servicing of a 35-gallon landfill cart, a 96-gallon organics cart, and a 64-gallon recycling cart.

The proposed annual rates for FY 2025-2026 for single-family households with 3-cart weekly service is $564.94 for landfill and compost collection, and $264.12 for recycle collection, for a total of $829.07, or an increase of $38.87 (4.92%) per year compared to the annual combined rate for FY 2024-2025. The City’s existing Stormwater Compliance Fee of $80.31 annually will be collected separately. Table 2 provides the annual rates that were approved for FY2024-2025 and the proposed rates for FY2025-2026 for Single-Family customers.

City Council/RSA Agenda 248 Tuesday, May 27, 2025
The proposed combined monthly expense for FY 2025-2026 for single-family households with standard 3-cart weekly service is $69.09 per month, or an increase of $3.24 per month compared to the monthly combined rate for FY2024-2025. Table 2.A below provides the monthly rates that were approved FY2024-2025 and the proposed rates for FY2025-2026 for Single-Family customers.

SB 1383, the Alameda County Organics Recycling Ordinance and the City’s Organics Recycling Ordinance (Union City Municipal Code Chapter 7.24) require that all customers are provided compost collection service in addition to the landfill and recycle collection services. While single-family residential customers already have this 3-cart service, most townhome and condominium properties (“Parcelized Multi-Family” properties) do not. Commencing July 1, 2025, these previously underserved properties will be provided compost collection service. New Compost carts will be delivered during the last week of June, 2025, for collection service beginning on July 1, 2025.

For these parcelized parcels, the proposed annual rate for FY 2025-2026 is $564.94 for landfill and compost collection and $264.12 for recycle collection. This is the same rate charged to Single-Family customers. Table 3 below provides the annual rates that were approved FY 2024- 2025 and the proposed rates for FY2025-2026 for Parcelized Multi-Family customers.

City Council/RSA Agenda 249 Tuesday, May 27, 2025
The proposed monthly expense for FY2025-2026 for Parcelized Multi-Family parcels with 3-cart weekly collection service (i.e., landfill, recycle and new compost) is $69.09 per month, or an increase of $18.10 per month compared to the monthly combined rate for FY2024-2025, which did not include compost service. Table 3.A below provides the monthly rates that were approved for FY2024-2025 and the proposed rates for FY 2025-2026 for Parcelized Multi-Family customers.

Commercial Collection Service Rates
An increase of 4.48% in commercial rates for landfill (solid waste), compost (organics waste), and recycle collection services is proposed for FY 2025-2026. For a standard three cubic yard landfill bin serviced one time per week, the increase amounts to $21.98 per month. The City encourages commercial customers to reduce waste by offering recycle and compost collection services with rates that are 40% less than comparable landfill rates. For example, the proposed monthly rate for weekly collection of a three-cubic yard landfill bin is $512.54 per month, whereas the rate is $307.51 a month for either recycle or compost collection service.

Businesses can realize additional savings by downsizing their landfill service levels through increased recycling and composting. Commercial customers are currently already billed directly on a monthly basis by Republic Services. Table 4 below provides examples of the monthly rates that were approved FY2024-2025 and the proposed FY2025-2026 rates for Commercial customers.

City Council/RSA Agenda 250 Tuesday, May 27, 2025

FISCAL IMPACT
The adjustment to Republic Services and Tri-CED’s compensation prescribed in the Franchise Agreement and the results of negotiations to extend both Franchise Agreements for an additional ten-year term contributes to the generation of City fees totaling $7,077,666 in FY 2025- 2026. Approximately $6,230.770 through Republic Services and $846,896 from Tri-CED will be accrued under the proposed rate schedules. It is important to note that these are unaudited, preliminary revenue figures based on comparisons of proposed past revenues and are therefore subject to change and City Council approval of the final rates to become effective July 1, 2025.

RECOMMENDATION
Staff recommends that the City Council proceed as follows:

1. Adopt a resolution approving and authorizing the City Manager to execute an Amended and Restated Franchise Agreement for Landfill, Compost, and Recycle collection services with Republic Services for an additional ten-year term from July 1, 2025 through June 30, 2035 and approve the proposed fees and rates for landfill, compost, and recycle collection services.

2. Adopt a resolution approving and authorizing the City Manager to execute an Amended and Restated Franchise Agreement for Recycle Collection and Processing Services with Tri-City Community Economic Development Corporation (Tri-CED) for an additional ten-year term from July 1, 2025 through June 30, 2035 and approve the proposed fees and rates for recycle collection and processing services.

Prepared by:

Cliff Feldman, Recycling and Solid Waste Program Manager Submitted by:

Jennifer Phan, Deputy City Manager
ATTACHMENTS:

Description Type
Draft Resolution - New Republic Services FranchiseAgreement and FY 2025-2026 Rates Resolution ExhibitA -Amended and Restated Republic Services FranchiseAgreement and FY 2025- 2026 Rates
Exhibit
Draft Resolution - New Tri-CEDFranchiseAgreement and FY 2025-2026 Rates Resolution ExhibitA -Amended and Restated Tri-CEDFranchiseAgreement and FY 2025-2026 Rates Exhibit PowerPoint Presentation Resolution
City Council/RSA Agenda 251 Tuesday, May 27, 2025
RESOLUTION NO. 2025-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE

AN AMENDED AND RESTATED FRANCHISE AGREEMENT WITH

REPUBLIC SERVICES FOR LANDFILL, COMPOST, AND RECYCLE

COLLECTION SERVICES WITH REPUBLIC SERVICES FOR AN
ADDITIONAL TEN-YEAR TERM COMMENCING JULY 1, 2025,
THROUGH JUNE 30, 2035
WHEREAS, the City executed a Franchise Agreement (“Agreement”) with Republic Services (formerly Allied Waste Services) to provide landfill (solid waste), compost (organic waste), and recycling collection and processing service (the “Services”) dated June 27, 2017; and
WHEREAS, the term of the Agreement with Republic Services expires on June 30, 2025; and
WHEREAS, under the terms of the Agreement, Republic Services and the City may explore extending the Agreements based on mutually agreed terms and conditions, including the duration of an Agreement extension; and
WHEREAS, the City and Republic Services have agreed to the terms, conditions, and costs to provide the Services for an additional ten (10) years that will commence on July 1, 2025 through June 30, 2035 (the “New Agreement”); and WHEREAS, the City and Republic Services have concluded good faith negotiations and completed their respective review of the draft Amended and Restated Franchise Agreement, attached hereto and incorporated herein by reference as Exhibit A, and have committed to executing the Amended and Restated Franchise Agreement timely with the City in order to ensure no interruption in the service delivery and all other terms and conditions prescribed in said New Agreement commencing in FY 2025-26.

NOW, THEREFORE, BE IT RESOLVED that the recitals above are hereby incorporated herein by reference; and
BE IT FURTHER RESOLVED that the City Council of the City of Union City hereby approves and authorizes the City Manager to execute the Amended and Restated Franchise Agreement for Landfill, Compost, and Recycle Collection Services with Republic Services for an additional ten-year term commencing July 1, 2025, through June 30, 2035, in a form approved by the City Attorney; and
BE IT FURTHER RESOLVED that, in accordance with the Amended and Restated Franchise Agreement for Landfill, Compost, and Recycle Collection Services with Republic Services, the fees and rates charged by Republic Services for landfill, compost and recycle collection services shall not exceed that established in Exhibit 16 of said Agreement, attached hereto and incorporated herein by reference, which is made a part hereof as though set forth at length; and
City Council/RSA Agenda 252 Tuesday, May 27, 2025
Resolution No. 2025-XXX
Approving Republic Service Franchise Agreement

Page 2 of 2 ends

BE IT FURTHER RESOLVED that the City Manager is authorized to take all actions necessary and execute all documents necessary, in a form approved by the City Attorney, to effectuate the intent of this Resolution.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 27th day of May 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
Attachment:

1. Exhibit A – Amended and Restated Franchise Agreement City Council/RSA Agenda 253 Tuesday, May 27, 2025

AMENDED AND RESTATED

FRANCHISE AGREEMENT

BETWEEN

THE CITY OF UNION CITY
AND

ALLIED WASTE SERVICES OF NORTH AMERICA, LLC
FOR

SOLID WASTE, RECYCLABLE MATERIALS, AND

ORGANIC MATERIALS COLLECTION SERVICES
July 1, 2025 through June 30, 2035
City Council/RSA Agenda 254 Tuesday, May 27, 2025
i City of Union City/Republic
5/27/2025 Franchise Agreement
Table of Contents
RECITALS.............................................................................................................................................. 1 ARTICLE 1. DEFINITIONS ...................................................................................................................... 3 ARTICLE 2. REPRESENTATIONS AND WARRANTIES OF THE CONTRACTOR........................................... 16

2.1 Corporate Status......................................................................................................................... 16

2.2 Corporate Authorization............................................................................................................. 16

2.3 Agreement will Not Cause Breach.............................................................................................. 16

2.4 No Litigation ............................................................................................................................... 17

2.5 No Adverse Judicial Decisions..................................................................................................... 17

2.6 No Legal Prohibition ................................................................................................................... 17

2.7 Contractor’s Statements............................................................................................................. 17

2.8 Contractor’s Investigation .......................................................................................................... 17

2.9 Ability to Perform ....................................................................................................................... 17

2.10 Voluntary Use of Designated Transfer Station ........................................................................... 17

2.11 Obligation to Provide Service ..................................................................................................... 18 ARTICLE 3. TERM OF AGREEMENT ...................................................................................................... 19

3.1 Effective Date and Commencement Date .................................................................................. 19

3.2 Conditions to Effectiveness of Agreement................................................................................. 19

3.3 Term............................................................................................................................................ 20

3.4 Option to Extend Term ............................................................................................................... 20 ARTICLE 4. SCOPE OF AGREEMENT ..................................................................................................... 20

4.1 Scope of Agreement ................................................................................................................... 20

4.2 Limitations to Scope ................................................................................................................... 22

4.3 Subcontracting............................................................................................................................ 24

4.4 Ownership of Materials.............................................................................................................. 25

4.5 City-Directed Changes to Scope ................................................................................................. 26

4.6 City’s Right to Perform Services and Possess Equipment........................................................... 27

4.6.1 General.................................................................................................................................. 27

4.6.2 Duration of City's Possession ................................................................................................ 29

4.6.3 Condemnation....................................................................................................................... 29

4.7 Transition to Next Contractor at End of Agreement .................................................................. 29

4.8 City Free to Negotiate with Third Parties................................................................................... 29 ARTICLE 5. COLLECTION SERVICES ...................................................................................................... 29

5.1 Solid Waste Collection................................................................................................................ 29

5.1.1 General.................................................................................................................................. 29

5.1.2 Single-Family Premises.......................................................................................................... 30

5.1.3 Parcelized Multi-Family Premises ......................................................................................... 30

5.1.4 Non-Parcelized Multi-Family Premises ................................................................................. 30

5.1.5 Commercial Premises............................................................................................................ 31

5.1.6 Discounted Rates................................................................................................................... 32

5.2 Recyclable Materials Collection.................................................................................................. 32

5.3 Organic Materials Collection ...................................................................................................... 33

5.3.1 General.................................................................................................................................. 34 City Council/RSA Agenda 255 Tuesday, May 27, 2025
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5.3.2 Single-Family Premises.......................................................................................................... 34

5.3.3 Parcelized Multi-Family Premises ......................................................................................... 34

5.3.4 Non-Parcelized Multi-Family Premises ................................................................................. 35

5.3.5 Commercial Premises............................................................................................................ 35

5.4 Reporting and Assistance with Surveys and Studies.................................................................. 37

5.5 Single-Family and Parcelized Multi-Family Clean-Up Event Services.........................................38

5.6 Non-Parcelized Multi-Family Clean-Up Event Services .............................................................. 39

5.7 City COMMUNITY Compost HuB ................................................................................................ 41

5.8 Holiday Tree Collection............................................................................................................... 41

5.9 Collection from City Facilities..................................................................................................... 42

5.10 Collection from Special Events ................................................................................................... 42

5.11 Multi-Family Organics Collection Program................................................................................. 43

5.12 Abandoned Waste Notification and Collection .......................................................................... 43 ARTICLE 6. PROCESSING AND DISPOSAL ............................................................................................. 44

6.1 Recyclable Materials Processing................................................................................................. 44

6.2 Organic Materials Processing ..................................................................................................... 47

6.3 Solid Waste, Bulky Item, Major Appliance Transfer and Disposal..............................................51

6.4 Residue and Contamination related to Processing Activities..................................................... 51

6.5 Contractor Ownership and/or Operation of Designated Transfer Station.................................53

6.6 Materials Characterization Studies............................................................................................. 54 ARTICLE 7. OTHER SERVICES............................................................................................................... 55

7.1 Public Education and Technical Assistance ................................................................................ 55

7.2 Billing .......................................................................................................................................... 57

7.3 Administration of Service Location Exemption Program ........................................................... 61

7.4 Customer Service Program......................................................................................................... 61

7.4.1 Program Requirements......................................................................................................... 61

7.4.2 Service Complaints................................................................................................................ 63

7.5 Provision of Emergency Services................................................................................................ 63

7.6 Crime Prevention........................................................................................................................ 63

7.7 Sharps Mail-Back Program.......................................................................................................... 63

7.8 Community Engagement............................................................................................................ 64

7.9 Construction and Demolition Debris.......................................................................................... 65

7.10 Programs to Support City’s High Diversion Goals....................................................................... 65

7.10 AB 939, AB 341, AV 1826, SB 1383, SB 54, Alameda County Mandatory Recycling Compliance and City Recycling Compliance............................................................................................................... 65

7.12 Cooperation with City and StopWaste ....................................................................................... 66 ARTICLE 8. STANDARDS AND REQUIREMENTS FOR SERVICES, EQUIPMENT, AND PERSONNEL ............ 66

8.1 Operating Hours and Schedules................................................................................................. 67

8.2 Collection Standards................................................................................................................... 68

8.2.1 Implementation of Services .................................................................................................. 68

8.2.2 Servicing Containers.............................................................................................................. 68

8.2.3 Collection with Materials from Other Jurisdictions.............................................................. 68

8.2.4 Instructions to Customer....................................................................................................... 68

8.2.5 Overages................................................................................................................................ 69

8.2.6 Care of Private Property........................................................................................................ 70

8.2.7 Litter Abatement................................................................................................................... 70 City Council/RSA Agenda 256 Tuesday, May 27, 2025
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8.2.8 Noise...................................................................................................................................... 71

8.3 Vehicle Requirements................................................................................................................. 71

8.3.1 General.................................................................................................................................. 71

8.3.2 Specifications ........................................................................................................................ 71

8.3.3 Vehicle Identification ............................................................................................................ 71

8.3.4 Inventory ............................................................................................................................... 72

8.3.5 Cleaning and Maintenance ................................................................................................... 72

8.3.6 Operation .............................................................................................................................. 73

8.4 Container Requirements ............................................................................................................ 74

8.5 Personnel.................................................................................................................................... 75

8.6 Hazardous Waste Inspection and Handling................................................................................ 78

8.7 Non-Discrimination..................................................................................................................... 79

8.8 Communication and Cooperation with City ............................................................................... 79

8.9 Communication and Coordination with City’s Recyclable Materials Cart Contractor ...............79 ARTICLE 9. RECORD KEEPING AND REPORTING................................................................................... 80

9.1 General Record Keeping Provisions............................................................................................ 80

9.1.1 Maintenance of Records....................................................................................................... 80

9.1.2 Retention of Records............................................................................................................. 81

9.1.3 Inspection of Records............................................................................................................ 81

9.1.4 Record Security ..................................................................................................................... 81

9.2 Record Keeping Requirements................................................................................................... 82

9.2.1 Financial and Operational Records ....................................................................................... 82

9.2.2 Collection Service Records.................................................................................................... 82

9.2.3 Transfer, Processing, Diversion, and Disposal Records......................................................... 83

9.2.4 Other Programs Records....................................................................................................... 83

9.2.5 Customer Service Records..................................................................................................... 83

9.2.6 CERCLA Defense Records ...................................................................................................... 83

9.3 General Reporting Requirements............................................................................................... 84

9.4 Monthly Reports......................................................................................................................... 84

9.5 Quarterly Reports....................................................................................................................... 86

9.6 Annual Reports........................................................................................................................... 87

9.6.1 Quarterly Report Data........................................................................................................... 87

9.6.2 Contractor Officers and Board Members.............................................................................. 87

9.6.3 Financial Information ............................................................................................................ 87

9.6.4 Related-Party Entities............................................................................................................ 87

9.6.5 Operational Information ....................................................................................................... 88

9.6.6 Customer Account Information ............................................................................................ 89

9.6.7 Materials Characterization Report........................................................................................ 89

9.6.8 Annual Public Education Plan................................................................................................ 89

9.6.9 Public Education and Information Activities Summary Report.............................................89

9.6.10 CalRecycle/StopWaste Reports ........................................................................................ 90

9.7 Event-Specific Report ................................................................................................................. 90 ARTICLE 10. FRANCHISE FEES AND OTHER FEES .................................................................................. 91

10.1 General ....................................................................................................................................... 91

10.2 Franchise Fee.............................................................................................................................. 91

10.3 Other City Fees ........................................................................................................................... 92 City Council/RSA Agenda 257 Tuesday, May 27, 2025
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10.4 Agreement Extension Fee........................................................................................................... 92

10.5 Payment Schedule and Late Fees............................................................................................... 92 ARTICLE 11. CONTRACTOR'S COMPENSATION AND CUSTOMER RATES............................................... 93

11.1 Overview..................................................................................................................................... 93

11.2 Rate-Setting Process................................................................................................................... 93

11.3 Rate Application Process............................................................................................................ 94

11.4 Extraordinary Adjustments......................................................................................................... 95

11.5 Rates for Changes in Scope......................................................................................................... 97

11.6 Notice of Rate Adjustments........................................................................................................ 98 ARTICLE 12. INDEMNITY, INSURANCE, AND PERFORMANCE BOND..................................................... 98

12.1 Indemnification........................................................................................................................... 98

12.2 Insurance .................................................................................................................................. 100

12.2.1 Minimum Scope of Insurance ......................................................................................... 100

12.2.2 Minimum Limits of Insurance ......................................................................................... 100

12.2.3 Deductibles and Self-Insured Retentions ....................................................................... 101

12.2.4 Other Insurance Provisions............................................................................................. 101

12.2.5 Acceptability of Insurers................................................................................................. 101

12.2.6 Verification of Coverage ................................................................................................. 101

12.2.7 Required Endorsements ................................................................................................. 101

12.2.8 Delivery of Proof of Coverage......................................................................................... 102

12.2.9 Other Insurance Requirements....................................................................................... 102

12.3 Performance Assurance............................................................................................................ 103

12.4 Guaranty Agreement................................................................................................................ 103 ARTICLE 13. DEFAULT AND REMEDIES .............................................................................................. 103

13.1 Events of Default ...................................................................................................................... 103

13.2 Right to Terminate upon Default.............................................................................................. 104

13.3 Possession of Property upon Termination ............................................................................... 105

13.4 City's Remedies Cumulative; Specific Performance ................................................................. 105

13.5 Liquidated Damages................................................................................................................. 105

13.6 Excuse from Performance ........................................................................................................ 107

13.7 Right to Demand Assurances of Performance.......................................................................... 108 ARTICLE 14. OTHER AGREEMENTS OF THE PARTIES .......................................................................... 108

14.1 Relationship of Parties.............................................................................................................. 108

14.2 Compliance with Law................................................................................................................ 109

14.3 Governing Law.......................................................................................................................... 109

14.4 Jurisdiction................................................................................................................................ 109

14.5 Binding on Successors............................................................................................................... 109

14.6 Assignment ............................................................................................................................... 109

14.7 Parties in Interest ..................................................................................................................... 111

14.8 Waiver....................................................................................................................................... 111

14.9 Notice Procedures .................................................................................................................... 111

14.10 Representatives of the Parties ................................................................................................. 112

14.11 Criminal Activity of Contractor................................................................................................. 112

14.11.1 Criminal Activity.............................................................................................................. 112

14.11.2 Notice.............................................................................................................................. 113 City Council/RSA Agenda 258 Tuesday, May 27, 2025
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14.11.3 Contractor’s Cure............................................................................................................ 113

14.11.4 Transfer and Hiring ......................................................................................................... 113

14.11.5 City’s Remedy ................................................................................................................. 113

14.12 Public Hearing on Contractor’s Performance........................................................................... 113

14.13 Performance Review................................................................................................................. 114

14.14 Iran Contracting Act Certification............................................................................................. 114 ARTICLE 15 RESOLUTION OF DISPUTES............................................................................................. 114

15.1 Informal Resolution .................................................................................................................. 114

15.2 Mediation ................................................................................................................................. 114

15.3 Valuation Items......................................................................................................................... 115

15.4 Binding Arbitration ................................................................................................................... 115

15.5 Pendency of Dispute................................................................................................................. 116 ARTICLE 16. MISCELLANEOUS AGREEMENTS .................................................................................... 116

16.1 Entire Agreement ..................................................................................................................... 116

16.2 Section Headings ...................................................................................................................... 116

16.3 References to Laws................................................................................................................... 116

16.4 Interpretation ........................................................................................................................... 116

16.5 Amendment.............................................................................................................................. 116

16.6 Severability ............................................................................................................................... 117

16.7 Counterparts............................................................................................................................. 117

16.8 Exhibits...................................................................................................................................... 117

16.9 Precedence ............................................................................................................................... 117 City Council/RSA Agenda 259 Tuesday, May 27, 2025
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List of Exhibits
Exhibit 1 RESERVED
Exhibit 2.2 Corporate Secretary’s Certificate
Exhibit 5.9 City Service Locations
Exhibit 5.13 Waste Reduction Chapter from City’s Climate Action Plan Exhibit 5.16 Example Web-Based Reporting for Contractor’s Customer Service and Billing System Exhibit 6.4 Characterization and Management of Contamination Exhibit 7.1 Public Education and Technical Assistance
Exhibit 8.4 Cart Specifications
Exhibit 11.1.A Basis for Rate Year Twenty-One Rates
Exhibit 11.1.B Operating Statistics and Processing Costs Exhibit 11.2.B Index-Based Rate Adjustment Methodology
Exhibit 11.2.C RESERVED
Exhibit 12.3 Performance Bond
Exhibit 12.4 Guaranty Agreement
Exhibit 13.5 Schedule for Liquidated Damages
Exhibit 14.14 Iran Contracting Certification
Exhibit 15 Bad Debt Recovery Escalation Plan
Exhibit 16 Rate Year Twenty-One Rates
City Council/RSA Agenda 260 Tuesday, May 27, 2025
May 27, 2025 Page 1 Union City/Republic
Franchise Agreement
1 AMENDED AND RESTATED
2 FRANCHISE AGREEMENT
3 BETWEEN
4 THE CITY OF UNION CITY
5 AND
6 ALLIED WASTE SERVICES OF NORTH AMERICA, LLC
7 FOR SOLID WASTE, RECYCLABLE MATERIALS
8 AND ORGANIC MATERIALS COLLECTION SERVICES
9 10 THIS AMENDED AND RESTATED FRANCHISE AGREEMENT is made and entered into as of 11 ________________, 2025, by and between the City of Union City, a municipal corporation, (hereinafter 12 "the City") and ALLIED WASTE SERVICES OF NORTH AMERICA, LLC, a Delaware corporation (hereinafter 13 referred to as the "Contractor").
14 RECITALS
15 This Agreement is entered into with reference to the following facts and circumstances:
16 17 WHEREAS; the Legislature of the State of California, by enactment of the California Integrated Waste 18 Management Act of 1989 (“AB 939”) and subsequent additions and amendments (codified at California 19 Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and 20 require local agencies to make adequate provisions for Solid Waste Collection within their jurisdiction; 21 and,
22 23 WHEREAS; the State of California has found and declared that the amount of Solid Waste generated in 24 California, coupled with diminishing landfill space and potential adverse environmental impacts from 25 landfilling and the need to conserve natural resources, have created an urgent need for State and local 26 agencies to enact and implement an aggressive integrated waste management program. The State has, 27 through enactment of AB 939, directed the responsible State agency, and all local agencies, to promote 28 Disposal Site Diversion and to maximize the use of feasible Solid Waste reduction, re-use, Recycling, and 29 Composting options in order to reduce the amount of Solid Waste that must be Disposed of in Disposal 30 sites; and,
31 32 WHEREAS; under Chapter 7.04.110 of the City’s Municipal Code, the City has the authority to issue a 33 franchise to a contractor to provide for the Collection of Solid Waste and Organic Materials; and 34 35 WHEREAS; pursuant to California Public Resources Code Section 40059(a) as may be amended from time 36 to time, the City has determined that the public health, safety, and well-being require that an exclusive 37 right be awarded to a qualified contractor to provide for the Collection of Solid Waste, Recyclable 38 Materials, and Organic Materials, except for Collection of materials excluded in the City’s Municipal Code, 39 and other services related to meeting Diversion goals and other requirements of AB 939, AB 341, AB 1826, 40 AB 1526, SB 1383, and Alameda County Waste Management Authority Ordinance 2012-1; and, City Council/RSA Agenda 261 Tuesday, May 27, 2025
May 27, 2025 Page 2 Union City/Republic
Franchise Agreement
41 42 WHEREAS; on September 8, 2004, BFI Waste Systems of North America (“BFI”) submitted a proposal in 43 response to the City’s May 2004 Request for Proposals for Collection and Disposal Services; and 44 45 WHEREAS; on January 11, 2005, after a competitive procurement process for such Collection Services, the 46 City Council approved Resolution No. 2808-05, which awarded an exclusive franchise agreement to BFI 47 for Solid Waste, Recyclable Materials, and Organic Materials Collection Services dated January 6, 2005, 48 for the period from July 1, 2005 through June 30, 2015 (“2005 Franchise Agreement”) (“2005 Franchise 49 Agreement”); and
50 51 WHEREAS; in 2005, BFI subsequently assigned its interests in the 2005 Franchise Agreement to Allied 52 Waste Services of North America, LLC (“Allied”), who is the Contractor under this Agreement; and 53 54 WHEREAS; on July 14, 2009, the 2005 Franchise Agreement was amended to implement Commercial Food 55 Scraps Collection and Processing services; and
56 57 WHEREAS; pursuant to Section 3.4 of the Franchise Agreement, as amended, the City may renegotiate 58 the terms and conditions of said Franchise Agreement with the Contractor at the end of the Franchise 59 Agreement’s term, or select another means to procure or provide Collection services; and 60 61 WHEREAS; the City Council has found and determined that the Contractor, by demonstrated experience, 62 reputation, and capacity, is qualified to provide Solid Waste, Recyclable Materials, and Organic Materials 63 Collection Services within the corporate limits of the City, and desires that the Contractor continue to 64 provide such services for the City; and
65 66 WHEREAS; on November 25, 2014, in Resolution 4665-14, the City Council directed City staff to 67 renegotiate with the Contractor an extension of the 2005 Franchise Agreement through June 30, 2025, 68 and without competitive bidding; and
69 70 WHEREAS; in January 2015, City staff and the Contractor entered negotiations as directed by the City 71 Council; and
72 73 WHEREAS; the 2005 Franchise Agreement was extended for two years ending June 30, 2017 pursuant to 74 Section 3.4 of the 2005 Franchise Agreement; and
75 76 WHEREAS; the Parties submitted an Amended and Restated Franchise Agreement for the City Council’s 77 consideration; and
78 79 WHEREAS; the City Council authorized the City to execute this Amended and Restated Franchise 80 Agreement with a term ending June 30, 2025 (“Agreement”); and 81 82 WHEREAS; in June 2023, City staff and the Contractor entered negotiations as directed by the City Council; 83 and
84 85 WHEREAS; the Parties submitted an Amended and Restated Franchise Agreement for the City Council’s 86 consideration; and
87 City Council/RSA Agenda 262 Tuesday, May 27, 2025
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Franchise Agreement
88 WHEREAS; the City Council authorized the City to execute this Amended and Restated Franchise 89 Agreement with a term ending June 30, 2035 (“Agreement”); and 90 91 WHEREAS; this Agreement supersedes any and all prior agreements and understandings between the 92 Parties, including the 2005 Franchise Agreement and the 2017 Franchise Agreement; and 93 94 WHEREAS; the City further declares its intent to approve Contractor’s Compensation and the associated 95 Maximum Rates established by Contractor that may are charged to Customers for the Collection, 96 Transportation, Processing, Recycling, Composting, and/or Disposal of Solid Waste, Recyclable Materials, 97 and Organic Materials; and
98 99 WHEREAS; the Maximum Rates that Contractor may charge are competitive for the industry based on the 100 substantial array of services provided and are reasonably related to the cost of providing such services; 101 and
102
103 WHEREAS, this Agreement has been developed by and is satisfactory to the Parties; and 104
105 WHEREAS, the City Council of City duly approved this Agreement per Resolution No. ________, together 106 with the Franchise Fee, Contractor payments to City, and other City-imposed fees provided for in the 107 Agreement (collectively “City Fees”), and found and determined that such City Fees were both necessary 108 and reasonably reflect, or are less than, the actual costs City that will incur in the administration of the 109 contracted services, compliance with mandatory state laws and regulations related to the contracted 110 services, and to mitigate the impacts contracted services will have on City infrastructure. 111
112 Now, THEREFORE, in consideration of the mutual promises, covenants, and conditions contained in this 113 Agreement and for other good and valuable consideration, the Parties agree as follows:
114 ARTICLE 1.
115 DEFINITIONS
116
117 For purposes of this Agreement, unless a different meaning is clearly required, the following words and 118 phrases shall have the following meanings respectively ascribed to them by this Article and shall be 119 capitalized throughout this Agreement:
120
121 “2005 Franchise Agreement” means the exclusive franchise agreement to BFI Waste Systems of North 122 America for Solid Waste, Recyclable Materials, and Organic Materials Collection Services dated January 6, 123 2005, for the period from July 1, 2005 through June 30, 2015, which was extended by the City for up to 124 one year or for a period that expires the day prior to the Commencement Date of this Agreement, 125 whichever date shall occur earlier.
126
127 “AB 32” means the California Global Solutions Act of 2006 (Division 25.5 of the California Health and Safety 128 Code), also commonly referred to as “AB 32,” as amended, supplemented, superseded, and replaced from 129 time to time.
130
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131 “AB 341” means the California Jobs and Recycling Act of 2011 (Chapter 476, Statues of 2011 [Chesbro, AB 132 341]), also commonly referred to as “AB 341”, as amended, supplemented, superseded, and replaced 133 from time to time. AB 341 requires businesses, defined to include commercial or public entities that 134 generate more than 4 cubic yards of commercial Solid Waste per week or multifamily residential dwellings 135 of 5 units or more, to arrange for Recycling services and requires jurisdictions to implement a commercial 136 Solid Waste Recycling program.
137
138 “AB 827” means State of California Assembly Bill No. 827 approved October 02, 2019. AB 827 requires 139 businesses that are mandated to recycle under AB 341 (“MCR”) and/or mandated to recycle Organic 140 Waste under AB 1826 (“MORe”) or SB 1383 and that provide customers access to the business, to provide 141 customers with a Recyclable Materials bin and/or Organic Waste Collection bin for those waste streams 142 that is visible, easily accessible, and adjacent to each Bin or Container for trash. 143
144 “AB 939” means the California Integrated Waste Management Act of 1989 codified in part in Public 145 Resources Code Sections 40000 et seq., and such regulations adopted by California Department of 146 Resources Recycling and Recovery (CalRecycle) for implementation of the Act, or its successor agency, 147 including but not limited to, the Jobs and Recycling Act of 2011 (AB 341), SB 1016 (Chapter 343, Statues 148 of 2008 [Wiggins, SB 1016]), and the Mandatory Commercial Organics Recycling Act (AB 1826). 149
150 “AB 1594” means the 2014 act to amend Sections 40507 and 41781.3 of the Public Resources Code, 151 relating to solid waste (Chapter 719, Statues of 2014 [Williams, AB 1594), also commonly referred to as 152 “AB 1594”, as amended, supplemented, superseded, and replaced from time to time. 153
154 “AB 1826” means the Organic Waste Recycling Act of 2014 (Chapter 727, Statues of 2014 [Chesbro, AB 155 1826]), also commonly referred to as “AB 1826”, as amended, supplemented, superseded, and replaced 156 from time to time. AB 1826 requires each jurisdiction, on and after January 1, 2016, to implement an 157 Organic Waste Recycling program to Divert from the landfill Organic Waste from businesses. Each 158 business meeting specific Organic Waste or Solid Waste generation thresholds phased in from April 1, 159 2016, to January 1, 2020, is required to arrange for Organic Waste Recycling services. 160
161 “Adequate Commercial Recycling Program” means the definition and process used by the Alameda 162 County Waste Management Authority/Alameda County Source Reduction and Recycling Board to assess 163 the existence of an “adequate commercial recycling program” for the purpose of determining municipal 164 eligibility to receive per capita Recycling Fund monies beginning July 1, 2013. The policy adopted by the 165 Alameda County Source Reduction and Recycling Board on November 8, 2012 is included as Exhibit 1. 166
167 “Affiliate” means all businesses (including corporations, limited and general partnerships and sole 168 proprietorships) which are directly or indirectly related to Contractor by virtue of any percentage of direct 169 or indirect Ownership interest or common management. An Affiliate shall include a business in which 170 Contractor has a direct or indirect Ownership interest; a business which has a direct or indirect Ownership 171 interest in Contractor; and/or a business which is also Owned, controlled or managed by any business or 172 individual which has a direct or indirect Ownership interest in Contractor. For the purposes of this 173 definition, “Ownership” means ownership as defined in the constructive ownership provisions of Section 174 318(a) of the Internal Revenue Code of 1986, as in effect on the date here, provided that 10 percent shall 175 be substituted for 50 percent in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and Section 176 318(a)(5)(C) shall be disregarded.
177
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178 “Agreement” means this Agreement between the City and Allied Waste Services of North America, LLC 179 for Collection of Solid Waste and Transportation of Solid Waste to the Designated Transfer Station, and 180 Collection, Transportation, and Processing of Recyclable Materials and Organic Materials, including all 181 exhibits, and any future amendments hereto.
182
183 “Alternative Daily Cover (ADC)” means cover material used to cover compacted Solid Wastes in a Disposal 184 Site, other than Organic Materials and other than at least six (6) inches of earthen material, placed on the 185 surface of the active face of the refuse fill area at the end of each operating day to control vectors, fires, 186 odors, blowing litter, and scavenging, as defined in Section 20164 of the California Code of Regulations as 187 may be amended from time to time.
188
189 “Alternative Intermediate Cover (AIC)” means CalRecycle-approved materials other than soil used at a 190 landfill on all surfaces of the fill where no additional Solid Waste will be deposited within one hundred 191 eighty (180) days. Generally, these materials must be processed so that they do not allow gaps in the face 192 surface, which would provide breeding grounds for insects and vermin. 193
194 “Applicable Law” means all Federal, State, and local laws, regulations, rules, orders, judgments, decrees, 195 permits, approvals, or other requirements of any governmental agency having jurisdiction over an aspect 196 of this Agreement that are in force on the Effective Date, and as may be enacted, issued, or amended 197 thereafter, including, without limitation, the City’s Municipal Code, the California Integrated Waste 198 Management Act of 1989 (Public Resources Code Sections 40000 et seq.) as amended as of the Effective 199 Date, inclusive (without exclusion to other amendments not referenced here) of AB 939, AB 341, AB 1826, 200 AB 1594, SB 1383, and inclusive of all regulations implementing the same. It shall also include SB 54, the 201 Plastic Pollution Prevention and Packaging Producer Responsibility Act, and the California Air Resources 202 Board Advanced Clean Fleets regulations (2023).
203
204 “Approved Composting Site” means the Newby Island Composting site on Dixon Landing Road in San Jose, 205 California, which was selected by Contractor, and approved by the City Manager, and which is approved 206 for Composting of Organic Materials.
207
208 “Approved Recyclable Materials Processing Site” means the Newby Island Recyclery on Dixon Landing 209 Road in San Jose, California, which was selected by Contractor, and approved by the City Manager, which 210 is approved for Processing Recyclable Materials.
211
212 “Beneficial Reuse Purposes” means use of material for beneficial reuse at a Disposal Site, which shall 213 include, but not be limited to, the following: Alternative Daily Cover, Alternative Intermediate Cover, final 214 cover foundation layer, liner operations layer, leachate and landfill gas collection system, construction fill, 215 road base, wet weather operations pads and access roads, and soil amendments for erosion control and 216 landscaping.
217
218 “Billings” means any and all statements of charges for services rendered, howsoever made, described or 219 designated by Contractor, or made by other for City or Contractor, presented to Customers served by 220 Contractor for the Collection of Solid Waste, Recyclable Materials, and Organic Materials in the City. 221
222 “Bin” means a Container with capacity of approximately one to eight cubic yards, with a hinged lid, and 223 with wheels, typically serviced by a front-loading Collection vehicle. 224
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225 “Bulky Items” means large discarded items including, but not limited to, Major Appliances, furniture, tires, 226 carpets, mattresses, and other oversize materials whose large size precludes or complicates their handling 227 by normal Collection, Processing, or Disposal methods. Bulky Items do not include abandoned 228 automobiles, or large auto parts or Construction and Demolition Debris or Electronic Waste, the latter of 229 which is regarded as Universal Waste and the Disposal of which is governed by the Department of Toxic 230 Substances Control.
231
232 “Business Days” mean Mondays through Fridays, excluding Holidays. 233
234 “Cart” means a plastic Container with a hinged lid and wheels that is serviced by an automated or semi235 automated Collection vehicle. A Cart has capacity of 20, 35, 64, or 96 gallons. 236
237 “Change in Law” means any of the following events or conditions which has a material and adverse effect 238 on the performance by the Parties of their respective obligations under this Agreement (except for 239 payment obligations):
240
241 a. The enactment, adoption, promulgation, issuance, modification, or written change in 242 administrative or judicial interpretation on or after the Effective Date of any Applicable Law; 243 or
244
245 b. The order or judgment of any governmental body, on or after the Effective Date, to the 246 extent such order or judgment is not the result of willful or negligent action, error or omission 247 or lack of reasonable diligence of the City or of the Contractor, whichever is asserting the 248 occurrence of a Change in Law; provided, however, that the contesting in good faith or the 249 failure in good faith to contest any such order or judgment shall not constitute or be 250 construed as such a willful or negligent action, error or omission or lack of reasonable 251 diligence.
252
253
254 “Characterization” means a process of manually and/or mechanically sorting by material type samples of 255 Source Separated Recyclable Materials, Source Separated Organic Materials, or Source Separate Food 256 Scraps to determine the types and amounts of various material types in the sample and the Contamination 257 Level of the sample.
258
259 “City” means the City of Union City, a municipal corporation, and all the territory lying within the 260 municipal boundaries of the City as presently existing or as such boundaries may be modified during the 261 Term. Unless otherwise specified in this Agreement, any action authorized or required by the City may 262 be taken by the City Council or by an agent designated by the City Council. 263
264 “City’s Municipal Code” means the City of Union City Municipal Code. 265
266 “Clean-Up Event” or “Clean-Up” means an activity, in addition to its regularly scheduled Collection 267 services, in which an Owner or Occupant of a Single-Family, Parcelized Multi-Family Premises, and Non268 Parcelized Multi-Family Premises can present for Collection non-putrescible Solid Waste, Yard Trimmings, 269 Traditional Recyclable Materials, Salvageable Materials, and Bulky Items for Collection, Processing, and 270 Disposal.
271
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272 “Collection (or variation thereof)” means the act of collecting Solid Waste, Recyclable Materials, Organic 273 Materials, and other material at the place of generation in the City. 274
275 “Commencement Date” means the date specified in Section 3.1 when Collection, Transportation, 276 Processing, Composting, and Disposal services required by this Agreement shall be provided. 277
278 “Commercial” shall mean of, from or pertaining to non-Residential Premises where business activity is 279 conducted, including, but not limited to, retail sales, services, wholesale operations, manufacturing and 280 industrial operations, but excluding businesses conducted upon Residential property which are permitted 281 under applicable zoning regulations and are not the primary use of the property. 282
283 “Compactor” means a mechanical apparatus that compresses materials and/or the Container that holds 284 the compressed materials. Compactors include Bin compactors of any size serviced by front-loading 285 Collection vehicles and Drop Box Compactors of any size serviced by Drop-Box Collection vehicles. 286
287 “Complaint” means written or orally communicated statements made by members of the public, 288 Customers, Owners, or Occupants of properties served by Contractor, or officers, employees or agents of 289 City alleging non-performance or deficiencies in Contractor’s performance, or otherwise alleging a 290 violation by Contractor of the provisions of this Agreement. 291
292 “Composting (or Compost)” includes a controlled biological decomposition of organic materials yielding 293 a safe and nuisance free Compost Product.
294
295 “Compost Product” means the product resulting from the controlled biological decomposition of Organic 296 Materials that are Source Separated from the municipal Solid Waste stream, or which are separated at a 297 centralized facility.
298
299 “Composting Site” means any plant, facility, or site used for the Processing and Composting of Organic 300 Materials for the purpose of making Compost, mulch, or other marketable material. 301
302 “Construction and Demolition Debris” includes discarded materials removed from Premises, resulting 303 from construction, renovation, remodeling, repair, deconstruction, or demolition operations on any 304 pavement, house, commercial building, or other structure or from landscaping. Such materials include, 305 but are not limited to: “inert wastes” as defined in Public Resources Code Section 41821.3(a)(1) (rock, 306 concrete, brick, sand, soil, ceramics and cured asphalt); gravel; plaster; gypsum wallboard; aluminum; 307 glass; plastic pipe; roofing material; carpeting; wood; masonry; trees; remnants of new materials, 308 including paper, plastic, carpet scraps, wood scraps, scrap metal, building materials, and packaging; and 309 rubble resulting from construction, remodeling, renovation, repair and demolition operations on 310 pavements, houses, commercial buildings, and other structures. 311
312 “Contaminant” means any material or substance in a Container that is not included in the definition of 313 the material targeted for collection in said Container. 314
315 “Contamination” means any of the following, but does not include Organic Material specifically allowed 316 for Collection in a Container that is required to be transported to a high Diversion Organic Material 317 processing facility if the waste is specifically identified as acceptable for Collection in that Container in a 318 manner that complies with the requirements of 14 CCR Section 18984.1, 18984.2, or 18984.3: (A) Non319 Organic Waste placed in a Container designated for Organic Waste provided pursuant to 14 CCR Sections City Council/RSA Agenda 267 Tuesday, May 27, 2025
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320 18984.1 or 18984.2; (B) Organic Wastes that are carpet, hazardous wood waste, or non-compostable 321 paper placed in the Container that is part of an Organic Waste Collection Service provided pursuant to 14 322 CCR Section 18984.1 or 18984.2; (C) Organic Wastes placed in a Container designated for Garbage, that 323 pursuant to 14 CCR Section 18984.1 or 18984.2 were intended to be Collected separately in a Container 324 designated for Organic Waste or Recyclable Materials; (D) Organic Wastes placed in the Container 325 designated for Recyclable Materials shall be considered Prohibited Container Contaminants when those 326 wastes were specifically identified in this Agreement, or through local ordinance for Collection in the 327 Container designated for Organic Waste, or mutually agreed to and promulgated by the City and 328 Contractor. Paper products, printing and writing paper, wood, and dry lumber may be considered 329 acceptable and not considered Prohibited Container Contaminants if they are placed in Container 330 designated for Recyclable Materials; and (E) exempt waste placed in any Container. 331
332 “Contamination Level” means the percentage equal to the weight of the materials categorized as 333 Contamination in the sample tested divided by weight of the sample tested. The Contamination Level shall 334 be calculated separately for various material streams and Customer subsets pursuant to Exhibit 6.4. 335
336 “Container” means a Bin, Cart, Compactor, and/or Drop Box. 337
338 “Contractor” means Allied Waste Services of North America, LLC, a corporation organized and operating 339 under the laws of the State of Delaware and its officers, directors, employees, agents, companies, and 340 Subcontractors to whom the City by virtue of this Agreement has been granted a Franchise for the services 341 described in Section 4.1. Contractor is a wholly-owned subsidiary of Republic Services, Inc., the Guarantor. 342
343 “Contractor’s Compensation” means the monetary compensation received by Contractor in return for 344 providing services in accordance with this Agreement as described in Article 11. 345
346 “Contractor Party(ies)” shall mean Contractor, officers, directors, or management or fiscal employees 347 (where “management employee” means any employee with direct or indirect responsibility for direction 348 and control over the Contractor’s activities under this Agreement and “fiscal” employee means an 349 employee with direct or indirect responsibility and control duties relating to financial matters under this 350 Agreement).
351
352 “Contractor’s Proposal” means the proposal submitted by Contractor and received on September 8, 2004 353 by the City in response to the City’s May 2004 Request for Proposals for Collection and Disposal Services 354 and certain supplemental written materials incorporated by reference, and the proposal documents and 355 supplemental information submitted by Contractor to the City commencing in November 2023 through 356 April 2024.
357
358 “CPI” means the consumer price index and shall be the series CUSR0000SEHG, Water and Sewer and 359 Trash Collection Services in U.S. City Average, all urban consumers, seasonally adjusted. compiled and 360 published by the U.S. Department of Labor, Bureau of Labor Statistics or its successor agency. 361 “Criminal Activity” means those activities described in Section 14.11.1. 362
363 “Curb (or Curbside)” means the location of a Container for pick-up, where such Container is placed on the 364 street or alley against the face of the curb, or where no curb exists, the Container is placed not more than 365 five feet from the outside edge of the street or alley nearest the property’s entrance. 366
367 “Customer” means the Person who voluntarily orders, receives, and pays for services from Contractor.

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368
369 “Delivery” means placement of Solid Waste, Recyclable Materials, or Organic Materials by a Generator in 370 a receptacle and/or at a location that is designated for Collection pursuant to the City's Municipal Code. 371
372 “Designated Transfer Station” means the Fremont Recycling and Transfer Station at 41149 Boyce Road, 373 Fremont, California unless the City Manager designates in writing a different transfer station or Disposal 374 Site in accordance with Section 4.5. At a minimum, the Designated Transfer Station shall serve as a location 375 for the receipt and transfer of Solid Waste, Bulky Items, and Major Appliances. 376
377 “Designated Waste” means non-Hazardous Waste which may pose special Disposal problems because of 378 its potential to contaminate the environment and which may be Disposed of only in Class II Disposal Sites 379 or Class III Disposal Sites pursuant to a variance issued by the California Department of Health Services. 380 Designated Waste consists of those substances classified as Designated Waste by the State of California, 381 in California Code of Regulations Title 23, Section 2522 as may be amended from time to time. 382
383 “Discarded Materials” means Solid Waste, Recyclable Materials, Organic Materials, Bulky Items, or 384 Construction and Demolition Debris placed by a Generator in a receptacle and/or at a location that is 385 designated for Collection pursuant to the City's Municipal Code. 386
387 “Disposal or Dispose (or variation thereof)” means the final disposition of Solid Waste at a Disposal Site. 388
389 “Disposal Site” means a facility for ultimate Disposal of Solid Waste. 390
391 “Diversion” means activities that reduce or eliminate the amount of Solid Waste or Discarded Materials 392 from Disposal including, but not limited to, Recycling and Composting. 393
394 “Diversion Level” means the percentage equal to the Tonnage Diverted by Contractor divided by the 395 Tonnage Collected by Contractor, which reflects the accomplishments of the Contractor’s Diversion 396 programs.
397
398 “Drop Box” means an open-top or covered Container with a typical capacity of 6 to 50 cubic yards that is 399 serviced by a roll-off Collection vehicle.
400
401 “Edible Food” has the same meaning as found in Chapter 7.24.020 of the Union City Municipal Code. 402 Edible Food means food intended for human consumption. For purposes of this Agreement, Edible Food 403 is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement requires or authorizes 404 the recovery of food that does not meet the food safety requirements of the California Retail Food Code. 405
406 “Edible Food Recovery” means the actions to Collect and distribute Edible Food and distributing it to local 407 food recovery organizations from places where it would otherwise go to waste, such as, but not limited 408 to, restaurants, grocery stores, produce markets, school cafeterias, or dining facilities. 409
410 “Effective Date” means the date on which the latter of the two Parties signs the Agreement and the date 411 on which Contractor may begin to take actions and incur costs in preparation to provide Collection, 412 Transportation, Processing, and Disposal services required by this Agreement. 413
414 “Equivalent Residue” means Residue that is produced at the Approved Recyclable Materials Processing 415 Site and Approved Composting Site from the Processing of Recyclable Materials, Organic Materials, and City Council/RSA Agenda 269 Tuesday, May 27, 2025
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416 Food Scraps Collected under the terms of this Agreement. Where the actual Residue from Processing 417 materials Collected in the City at these Approved Processing Site(s) cannot be specifically segregated from 418 Residue from Processing materials generated by parties, an equivalent amount of Residue Tonnage will 419 be segregated in its place and thereafter handled in accordance with the terms of this Agreement. 420
421 “E-Scrap Items” means discarded electronic equipment such as, but not limited to, television sets, 422 computer monitors, central processing units (CPUs), laptop computers, external computer hard drives, 423 computer keyboards, computer mice, computer printers, DVDs, and VCRs. 424
425 “Federal” means belonging to or pertaining to the national government of the United States; or founded 426 on or organized under the constitution of the United States. 427
428 “Food Scraps” means pre- and/or post-consumer Organic Material consisting primarily of food scraps such 429 as those Discarded Organic Materials that will decompose and/or putrefy including (i) all kitchen and table 430 food waste, and animal or vegetable waste that attends or results from the storage, preparation, cooking 431 or handling of food stuffs, and (ii) food-soiled paper. Food Scraps is a subset of Organic Materials. 432
433 “Franchise” is the exclusive right and privilege of Contractor to Collect, Transport, and Process Solid 434 Waste, Recyclable Materials, and Organic Materials in accordance with the terms and conditions of this 435 Agreement.
436
437 “Franchise Fee” or “City Fee” means a payment that the Contractor has voluntarily agreed to pay to City 438 in consideration of the exclusive rights granted by the City under this Agreement. City and Contractor 439 acknowledge and agree that the amount of the Franchise Fee is the result of bona fide, arms-length 440 negotiations between City and Contractor. Contractor further acknowledges and agrees that the amount 441 of the Franchise Fee represents Contractor’s independent determination of the market value of the 442 exclusive rights granted by City under this Agreement. Contractor is not required by this Agreement or 443 any City ordinance, resolution, or regulation to charge the Franchise Fee to Customers. Because the 444 Franchise Fee represents a cost to Contractor in performing services pursuant to this Agreement, 445 Contractor may, in its sole discretion, include an amount equal to the Franchise Fee in Contractor’s 446 compensation.
447
448 “Generator” means any Person as defined by the Public Resources Code, whose act or process produces 449 Solid Waste, Recyclable Materials, or Organic Materials as defined in the Public Resources Code, or whose 450 act first causes Solid Waste to become subject to regulation. 451
452 “Gross Rate Revenue” means the actual monies remitted to Contractor by Customers and actual property 453 tax roll revenues distributed to Contractor by City, and shall be determined in accordance with Generally 454 Accepted Accounting Principles.
455
456 “Guarantor” means Republic Services, Inc.
457
458 “Guaranty Agreement” is the agreement attached as Exhibit 12.4 that is executed by the Guarantor 459 guaranteeing the timely and full performance of Contractor’s obligations. 460
461 “Hazardous Substance” means any of the following: (a) any substances defined, regulated or listed 462 (directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Wastes", "toxic 463 waste", "pollutant" or "toxic substances" or similarly identified as hazardous to human health or the City Council/RSA Agenda 270 Tuesday, May 27, 2025
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464 environment, in or pursuant to (i) the Comprehensive Environmental Response, Compensation and 465 Liability Act (CERCLA) of 1980, 42 USC §9601 et seq. (CERCLA); (ii) the Hazardous Materials Transportation 466 Act, 49 USC §1802, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) 467 the Clean Water Act, 33 USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8, 468 25281, and 25316; (vi) the Clean Air Act, 42 USC §7901 et seq.; and (vii) California Water Code §13050; (b) 469 any amendments, rules or regulations promulgated there under to such enumerated statutes or acts 470 currently existing or hereafter enacted; and (c) any other hazardous or toxic substance, material, 471 chemical, waste or pollutant identified as hazardous or toxic or regulated under any other Applicable Law 472 currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated 473 biphenyl’s ("PCBs"), petroleum, natural gas and synthetic fuel products, and by-products. 474
475 “Hazardous Waste” means all substances defined as Hazardous Waste, acutely Hazardous Waste, or 476 extremely Hazardous Waste by the State of California in Health and Safety Code §25110.02, §25115, and 477 §25117 or in the future amendments to or recodifications of such statutes or identified and listed as 478 Hazardous Waste by the U.S. Environmental Protection Agency (EPA), pursuant to the Federal Resource 479 Conservation and Recovery Act (42 USC §6901 et seq.), all future amendments thereto, and all rules and 480 regulations promulgated thereunder.
481
482 “Holidays” are defined as New Year’s Day, Thanksgiving Day, and Christmas Day. 483
484 “Household Hazardous Waste” means that waste resulting from products purchased by the general 485 public for household use which, because of its quantity, concentration, or physical, chemical or infectious 486 characteristics, may pose a substantial known or potential hazard to human health or the environment 487 when improperly treated, Disposed, or otherwise managed, or, in combination with other Solid Waste, 488 may be infectious, explosive, poisonous, caustic, or toxic, or exhibit any of the characteristics of 489 ignitability, corrosivity, reactivity, or toxicity as per California Code of Regulations Title 22, Division 4.5, 490 Chapter 11, Section 66261.3 .
491
492 “Infectious Waste” means biomedical waste generated by a Person or at hospitals, public or private 493 medical clinics, dental offices, research laboratories, pharmaceutical industries, blood banks, mortuaries, 494 veterinary facilities, and other similar establishments that are identified in Health and Safety Code Section 495 25117.5 as may be amended from time to time.
496
497 “Kitchen Pail” means the Container provided to Residential and Multi-Family Customers to consolidate 498 and transfer food scraps and other Organic Materials generated by the Premises to Contractor’s Organic 499 Materials cart for Collection. The “Kitchen Pail” is not intended to be used by Customer to set-out Organic 500 Materials for Collection by Contractor.
501
502 “Liquidated Damages” means the amounts owed by Contractor to City for failure to meet specific 503 quantifiable standards of performance as described in Section 13.5 and Exhibit 13.5. 504
505 “Major Appliances” means any discarded Residential device, including, but not limited to, washing 506 machines, clothes dryer, hot water heaters, dehumidifiers, conventional ovens, microwave ovens, stoves, 507 refrigerators, freezers, air conditioners, trash compactors, and residential furnaces discarded by 508 Residential Generators.
509
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510 “Maximum Rates” means those rates or charges established by Contractor and approved from time-to511 time by the City Council, which set forth the maximum amount that Contractor may charge Customer for 512 services provided pursuant to this Agreement.
513
514 “Mixed Materials” or “Mixed Waste” means materials placed in Solid Waste Containers for Collection 515 that may include a combination of Recyclable Materials and non-Recyclable Materials. 516
517 “Non-Parcelized Multi-Family” means, notwithstanding any contrary definition in the City’s Municipal 518 Code, any Residential Premises with more than one unit used for Residential purposes regardless of 519 whether residence therein is transient, temporary or permanent, which receive centralized, communal 520 Collection service for all units on the Premises which are billed to one Customer at one address, excluding 521 hotels (which shall be considered Commercial Premises), Single-Family Premises, and Parcelized Multi522 Family Premises; however, those Parcelized Multi-Family Premises that receive centralized, communal 523 Collection service shall be considered Non-Parcelized Multi-Family Premises. 524
525 “Occupant” means the Person who occupies a Premises. 526
527 “Organic Materials” (or “Organic Waste” as defined in Chapter 7.24.020 of the Union City Municipal 528 Code) means those materials that will decompose and/or putrefy and include Yard Trimmings and Food 529 Scrap such as, but are not limited to, green trimmings, grass, weeds, leaves, prunings, branches, dead 530 plants, brush, tree trimmings, dead trees, small wood pieces, other types of organic yard waste, vegetable 531 waste, fruit waste, grain waste, dairy waste, meat waste, fish waste, waxed cardboard, paper 532 contaminated with Food Scraps or otherwise not accepted in the Recyclable Materials Collection program, 533 pieces of unpainted and untreated wood, and pieces of unpainted and untreated wallboard. 534
535 “Overage” events shall mean the following: (i) Solid Waste, Recyclable Materials or Organic Materials 536 included for collection by Customer exceed the intended capacity of the Container such that the 537 Container’s lid is lifted by at least six (6) inches; or, (ii) Solid Waste, Recyclable Materials or Organic 538 Materials are placed on top of or in the immediate vicinity of the Container by Customer and result in 539 precluding collection service of said Container without the intervention of the collection service vehicle 540 operator to remove the excessive materials in order to provide safe and litter free collection service. 541
542 “Owner” means the Person holding legal title to the land or building. 543
544 “Parcelized Multi-Family” means any attached home, townhouse, condo or residence designated or used 545 for occupancy by one family, , excluding those Premises that receive centralized, communal Collection 546 (which shall be considered Non-Parcelized Multi-Family Premises). 547
548 “Parent Company” refers to a company owning more than 50% of the shares of another company 549 (subsidiary) or a company that has management control over such subsidiary. 550
551 “Party or Parties” refers to the City and Contractor, individually or together. 552
553 “Pass-Through Cost(s)” means Disposal costs, interest expense, and other costs that are included as part 554 of Contractor’s Compensation but for which Contractor does not receive profit or any additional mark-up, 555 expense, or administrative charge.
556
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557 “Permanent Drop Boxes” means Drop Boxes that are used by Customers subscribing to weekly (or more 558 frequent) Collection services.
559
560 “Person(s)” means any individual, firm, association, organization, partnership, corporation, business trust, 561 joint venture, the United States, the State of California, the County of Alameda, and special purpose 562 districts.
563
564 “Premises” means any land or building in the City where Solid Waste, Recyclable Materials, or Organic 565 Materials are generated or accumulated.
566
567 “Processing” means to prepare, treat, or convert through some special method. 568
569 “Processing Site” means any plant or site used for the purpose of sorting, cleansing, treating or 570 reconstituting Recyclable Materials for the purpose of making such material available for reuse. 571
572 “Rate” means the dollar unit to be charged a Customer by Contractor for providing Solid Waste Collection 573 and Disposal, Recyclable Materials Collection and Processing services, Organic Materials Collection and 574 Processing services, and other services provided by Contractor pursuant to this Agreement. 575
576 “Rate Year” means a 12-month period, commencing July 1 and concluding June 30 for which Contractor’s 577 Compensation is calculated. Rate Years are numbered consecutively starting with Rate Year Twenty-One 578 (July 1, 2025 to June 30, 2026), thus reflecting a continuation from the 2005 and 2017 Franchise 579 Agreement “Rate Periods,” Rate Years or rate years. 580
581 “Recyclable Materials” means those Discarded Materials, by-products, or components of such materials 582 that are set aside, handled, or packaged for the purpose of being Recycled. 583
584 “Recyclable Materials Cart Contractor” means Tri-City Economic Development Corporation (Tri-CED), 585 located at 33377 Western Avenue, Union City, California that entered into an exclusive franchise 586 agreement with the City for the Collection and Processing of Recyclable Materials from Residential 587 Customers and from Commercial Customers subscribing to Recyclable Materials Collection services in the 588 City using Carts.
589
590 “Recycle” or “Recycling” means the process of sorting, cleansing, treating and reconstituting, at a 591 Recyclable Materials Processing Site, materials that would otherwise be Disposed of at a landfill for the 592 purpose of returning such materials to the economy in the form of raw materials for new, reused or 593 reconstituted products. “Recycling” does not include transformation as defined in Public Resources Code 594 Section 40201. Paper products and printing and writing paper, each as defined in SB 1383, may be placed 595 in either the Recyclable Materials Container or the Organic Waste Container. Carpet and textiles, as well 596 as compostable plastic materials, may not be placed in either the Recyclable Materials Container or the 597 Organic Waste Container.
598
599 “Related-Party Entity” means any Affiliate that has financial transactions with Contractor pertaining to 600 this Agreement.
601
602 “Residential” shall mean of, from, or pertaining to a Single-Family Premises, Parcelized Multi-Family 603 Premises, or Non-Parcelized Multi-Family Premises including single-family homes, apartments, City Council/RSA Agenda 273 Tuesday, May 27, 2025
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604 condominiums, townhouse complexes, mobile home parks, cooperative apartments, and yacht harbors 605 and marinas where residents live aboard boats.
606
607 “Residue” or “Residual” (or a variation thereof) means material remaining, if any, after Processing of 608 Recyclable Materials or Organic Materials that require Disposal. 609
610 “Residue Level” means the percentage equal to the Tonnage of Residue Disposed by Contractor divided 611 by Tonnage Collected by Contractor, which reflects the amount of Residue. The Residue Level shall be 612 calculated separately for Recyclable Materials, Residential Organic Materials, and Commercial Organic 613 Materials.
614
615 “Re-use Vendor” means a vendor (e.g., St. Vincent DePaul, Goodwill Industries, or other non-profit or for616 profit organizations) that will collect used furniture and other re-usable items for purposes of reuse rather 617 than Disposal.
618
619 “Revenue Requirement” means the total amount of Contractor’s Compensation, City Fees, and 620 compensation for the Recyclable Materials Cart Contractor that the City directs Contractor to include in 621 the Maximum Rates it establishes and bills to Customers. 622
623 “Salvageable Material” means those Discarded Materials that may be reused in their existing form or may 624 be reused after some form of Processing including, but not limited to, Organic Materials and Recyclable 625 Materials.
626
627 “SB 54” means the Packaging Pollution Prevention and Packaging Producer Responsibility Act of 2022 628 (Chapter 75, Statutes of 2022 [Allen, et al., SB 54]), also commonly referred to as “SB 54”, as amended, 629 supplemented, superseded, and replaced from time to time. 630
631 “SB 1383” means the Short-lived Climate Pollutants: Methane Emissions: Dairy And Livestock: Organic 632 Waste: Landfills Act of 2016 (Chapter 395, Statues of 2016 [Lara, SB 1383]), also commonly referred to as 633 “SB 1383”, as amended, supplemented, superseded, and replaced from time to time. Of particular 634 significance to the Collection services provided under the terms of this Agreement, SB 1383 establishes 635 State-wide targets for the reduction of Organic Materials Disposal. 636
637 “Service Type” refers separately to the following types of Solid Waste, Recyclable Materials and Organic 638 Materials Collection services for each of the following types of services: Single-Family, Parcelized Multi639 Family, Non-Parcelized Multi-Family, Commercial, Drop Box, Single-Family and Parcelized Multi-Family 640 Clean-Up Event services, and Non-Parcelized Multi-Family Clean-Up Event service. 641
642 “Single-Family” means, notwithstanding any contrary definition in the City’s Municipal Code, any 643 detached house or residence designed or used for occupancy by one family, provided that Collection 644 service feasibly can be, and is, provided to such Premises as an independent unit. 645
646 “Solid Waste” means solid waste as defined in California Public Resources Code, Division 30, Part 1, 647 Chapter 2, §40191 and regulations promulgated thereunder that the City Code requires Generators within 648 the City to set out for Collection. Excluded from the definition of Solid Waste are Construction and 649 Demolition Debris, Hazardous Waste, Infectious Waste, Designated Waste, Source Separated Recyclable 650 Materials, Source Separated Organic Materials, and radioactive waste. Notwithstanding any provision to 651 the contrary, “Solid Waste” may include de minimis volumes or concentrations of waste of a type and City Council/RSA Agenda 274 Tuesday, May 27, 2025
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652 amount normally found in Residential Solid Waste after implementation of programs for the safe 653 collection, recycling, treatment and disposal of Household Hazardous Waste in compliance with Section 654 41500 and 41802 of the California Public Resources Code as may be amended from time to time. 655
656 Solid Waste includes Salvageable Materials, Mixed Materials, Recyclable Materials, and Organic Materials 657 only when such materials are not Source Separated and are included for Collection in a Solid Waste 658 Container.
659
660 “Source Separated” means the segregation, by the Generator, of materials designated for separate 661 Collection for some form of Recycling, Composting, recovery, or reuse. 662
663 “Specialty Recyclable Material” means Recyclable Materials that are not specified as Traditional 664 Recyclable Materials that can be Collected for purposes of Recycling by any Person operating under a valid 665 permit issued by the City. Such Specialty Recyclable Material includes, but is not limited, to scrap metal 666 weighing more than 10 pounds, mattresses, Construction and Demolition Debris, pallets, and plastic film. 667 Specialty Recyclable Materials do not include Source Separated Organic Materials or Source Separated 668 Recyclable Materials set out for Collection by Single-Family, Parcelized Multi-Family, Non-Parcelized 669 Multi-Family, Commercial, and Drop Box Customers.
670
671 “State” means the State of California.
672
673 “Subcontractor” means a party who has entered into a contract, express or implied, with the Contractor 674 for the performance of an act that is necessary for the Contractor’s fulfillment of its obligations under this 675 Agreement and approved by the City in accordance with Section 4.3 of this Agreement for services such 676 as, but not limited to, Collection, Transportation, Processing, Diversion, sales or marketing of Recyclable 677 Materials or Organic Materials, staffing, public education, customer service, and billing, or other service 678 whose cost is a substantial portion of the Contractor’s total annual cost. 679
680 “Term” means the Term of this Agreement, including extension periods if granted, as provided for in 681 Article 3.
682
683 “Ton (or Tonnage)” means a unit of measure for weight equivalent to 2,000 standard pounds where each 684 pound contains 16 ounces.
685
686 “Traditional Recyclable Materials” shall include, but not be limited to: newspaper (including inserts, 687 coupons, and store advertisements); mixed paper (including office paper, computer paper, magazines, 688 junk mail, catalogs, brown paper bags, brown paper, paperboard, paper egg cartons, telephone books, 689 grocery bags, colored paper, construction paper, envelopes, legal pad backings, shoe boxes, cereal and 690 other similar food boxes); shredded paper (placed by Generator in clear plastic bags); chipboard; 691 corrugated cardboard; paper milk cartons; glass containers of any color (including brown, clear, and green 692 glass bottles and jars); aluminum (including beverage containers, foil, food containers, small pieces of 693 scrap metal); small pieces of scrap metal weighing less than 10 pounds and fitting into the Recyclable 694 Materials Container; steel, tin or bi-metal cans; plastic containers (no. 1 to 7); plastic bags and shrink wrap 695 (placed by Generator in plastic bags); and aseptic beverage boxes. 696
697 “Transportation” means the act of transporting or state of being transported. 698
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699 “Unacceptable Spillage” means any Solid Waste, Bulky Items, Recyclable Materials or Organic Materials 700 spilled or left at established Collection sites by Contractor after Collection, except that small particles of 701 grass clippings and leaves of the size and volume (that can be collected by regular street sweeping 702 operations) may be left behind.
703
704 “Vehicle Impact Fee” means the fee paid by Contractor to reimburse the City for street maintenance costs 705 incurred because of Collection Vehicles traveling on City streets. 706
707 “Yard Trimmings” means those Discarded Materials that will decompose and/or putrefy, including, but 708 not limited to, green trimmings, grass, weeds, leaves, prunings, branches, dead plants, brush, tree 709 trimmings, dead trees, small pieces of unpainted and untreated wood, and other types of organic waste. 710 Yard Trimmings are a subset of Organic Materials. Yard Trimmings placed for Collection may not exceed 711 six inches in diameter and five feet in length.
712 ARTICLE 2.
713 REPRESENTATIONS AND
714 WARRANTIES OF THE
715 CONTRACTOR
716 The Contractor, by acceptance of this Agreement, represents and warrants the conditions presented in 717 this Article.
718
719 2.1 CORPORATE STATUS
720 Contractor is a corporation duly organized, validly existing and in good standing under the laws of the 721 State. It is qualified to transact business in the State and has the power to own its properties and to carry 722 on its business as now owned and operated and as required by this Agreement. 723
724 2.2 CORPORATE AUTHORIZATION
725 Contractor has the authority to enter this Agreement and perform its obligations under this Agreement. 726 The Board of Directors of Contractor (or the shareholders, if necessary) has taken all actions required by 727 law, its articles of incorporation, its bylaws, or otherwise, to authorize the execution of this Agreement. 728 The Person signing this Agreement on behalf of Contractor represents and warrants that they have 729 authority to do so and the Corporate Secretary’s Certificate in Exhibit 2.2 confirms this. This Agreement 730 constitutes the legal, valid, and binding obligation of the Contractor. 731
732 2.3 AGREEMENT WILL NOT CAUSE BREACH
733 To the best of Contractor's knowledge after reasonable investigation, the execution or delivery of this 734 Agreement or the performance by Contractor of its obligations hereunder does not conflict with, violate, 735 or result in a breach (i) of any law or governmental regulation applicable to Contractor; or (ii) any term or 736 condition of any judgment, order, or decree of any court, administrative agency or other governmental 737 authority, or any Agreement or instrument to which Contractor is a party or by which Contractor or any 738 of its properties or assets are bound, or constitutes a default thereunder. 739
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740 2.4 NO LITIGATION
741 To the best of Contractor's knowledge after reasonable investigation, there is no action, suit, proceeding 742 or investigation, at law or in equity, before or by any court or governmental authority, commission, board, 743 agency or instrumentality decided, pending or threatened against Contractor wherein an unfavorable 744 decision, ruling or finding, in any single case or in the aggregate, would:
745
746 A. Materially adversely affect the performance by Contractor of its obligations hereunder; 747
748 B. Adversely affect the validity or enforceability of this Agreement; or 749
750 C. Have a material adverse effect on the financial condition of Contractor, or any surety or entity 751 guaranteeing Contractor's performance under this Agreement. 752
753 2.5 NO ADVERSE JUDICIAL DECISIONS
754 To the best of Contractor’s knowledge after reasonable investigation, there is no judicial decision that 755 would prohibit this Agreement or subject this Agreement to legal challenge. 756
757 2.6 NO LEGAL PROHIBITION
758 To the best of Contractor’s knowledge after reasonable investigation, there is no Applicable Law in effect 759 on the date Contractor signed this Agreement that would prohibit the Contractor’s performance of its 760 obligations under this Agreement and the transactions contemplated hereby. 761
762 2.7 CONTRACTOR’S STATEMENTS
763 The Contractor’s Proposal and any other supplementary information submitted to the City, which the City 764 has relied on in awarding and entering this Agreement, do not: (i) contain any untrue statement of a 765 material fact, or (ii) omit to state a material fact that is necessary in order to make the statements made, 766 in light of the circumstances in which they were made, not misleading. 767
768 2.8 CONTRACTOR’S INVESTIGATION
769 Contractor has made an independent investigation (satisfactory to it) of the conditions and circumstances 770 surrounding the Agreement and the work to be performed hereunder. Contractor has taken such matters 771 into consideration in entering this Agreement to provide services in exchange for the compensation 772 provided for under the terms of this Agreement.
773
774 2.9 ABILITY TO PERFORM
775 Contractor possesses the business, professional, and technical expertise to Collect, Transport, and Process 776 the Solid Waste, Recyclable Materials, and Organic Materials generated in the City. Contractor possesses 777 the equipment, facility(ies), and employee resources required to perform its obligations under this 778 Agreement.
779
780 2.10 VOLUNTARY USE OF DESIGNATED TRANSFER STATION
781 Except as provided in Section 6.5, Contractor, without constraint and as a free-market business decision 782 in accepting this Agreement, agrees to use the Designated Transfer Station for the purposes of 783 transferring and Disposing of all Solid Waste, Bulky Items, and Major Appliances Collected in the City.

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784 Such decision by Contractor in no way constitutes a restraint of trade notwithstanding any Change in Law 785 regarding flow control limitations or any definition thereof. 786
787 2.11 OBLIGATION TO PROVIDE SERVICE
788 The City and Contractor agree, as more fully set forth in the Recitals to this Agreement, that proper 789 Collection, transfer, Transport, Processing, Diversion, and Disposal of materials Collected by Contractor is 790 fundamental to the protection of the public health, safety and the well-being of the City’s residents and 791 businesses. The City’s responsibility for ensuring the adequacy of these services in part provides the 792 justification for the granting of a Franchise to Contractor. This Franchise creates an obligation that such 793 services continue to be provided even under difficult, adverse, or unforeseeable circumstances, such as 794 but not limited to, natural disaster, labor unrest, and any period where legal actions, future judicial 795 interpretations of current law, or new laws or regulations impact the effectiveness of portions of this 796 Agreement. In such an event, it shall be the responsibility of Contractor to mitigate any potential damages 797 to other services being provided as much as possible. For example:
798
799 A. Should a court of competent jurisdiction or other regulatory agency set aside, invalidate or stay 800 all or a portion of the Maximum Rates approved by the City, Contractor agrees to continue to 801 perform its obligations as otherwise set forth herein, and the City and/or Contractor shall take 802 such urgency actions necessary to facilitate Contractor’s continuation of service. 803
804 B. Should there be a Change in Law or a new judicial interpretation of Applicable Law, including, but 805 not limited to, Articles XIII C and D of the California Constitution which impacts the Maximum 806 Rates for the Collection services established in accordance with this Agreement, Contractor 807 agrees to meet and confer with the City to discuss the impact of such Change in Law on either 808 Party’s ability to perform under this Agreement. Should a court of competent jurisdiction 809 determine that the Contractor cannot charge and/or increase its Rates for charges related to 810 Franchise Fees and governmental fees and charges, Contractor shall reduce the Rates it charges 811 Customers a corresponding amount, providing said fees, Rates and/or charges disallowed by the 812 court are not related to the cost of providing service hereunder and had been incorporated in the 813 Rates charged by Contractor to its Customers. Nothing herein is intended to imply that California 814 Constitution, Articles XIIIC or XIIID, apply to the Maximum Rates established for services provided 815 under this Agreement; rather this Section is provided merely to allocate risk of an adverse judicial 816 interpretation between the Parties. This provision will survive the expiration or earlier 817 termination of this Agreement and shall not be construed as a waiver of rights by City to 818 contribution or indemnity from third parties.
819
820 C. If, as a result of a legal action, Contractor is unable to include Franchise Fees, other City fees or 821 expenses, governmental fees or charges in the Rates it charges Customers for its services, then 822 Contractor agrees, upon direction from the City, to reduce its Rates in an amount corresponding 823 to the disallowed fee or charge, and shall thereafter not be required to remit the amount of the 824 disallowed fee or charge, provided it is not collected from Customers. 825
826 1. Nothing herein is intended to imply that California Constitution Articles XIII(C) or (D) apply to 827 the Maximum Rates established for services provided under this Agreement. The foregoing 828 paragraphs are merely intended as a contractual allocation of risks between the Parties. 829
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830 2. This Section shall survive the expiration or earlier termination of this Agreement and shall 831 not be construed as a waiver of rights by the City to contribution or indemnity from third 832 parties.
833
834 3. This provision is intended to be consistent with and limited by California Public Resources 835 Code Section 40059.2.
836
837 D. Allocation of Risk. Neither the City nor Contractor shall have the right to obtain payment from 838 the other Party for losses either may sustain due to a court of competent jurisdiction or other 839 regulatory agency invalidating, setting aside, or staying the collection of all or a portion of the 840 Maximum Rates authorized hereunder. Contractor shall bear the risk of any lost profits or losses 841 associated with the cost of providing continued service as a result of such a legal action or ruling, 842 and similarly the City shall bear the loss of payments to the City during any period where 843 Contractor cannot lawfully collect those payment amounts from Customers. 844 ARTICLE 3.
845 TERM OF AGREEMENT
846
847 3.1 EFFECTIVE DATE AND COMMENCEMENT DATE
848 The Effective Date of this Agreement shall be the date the latter of the two Parties signs the Agreement. 849
850 The Commencement Date shall be July 1, 2025 and shall be the date on which Contractor initiates 851 provision of Collection, Transportation, and Processing services required by this Agreement. 852
853 Between the Effective Date and Commencement Date, Contractor shall perform all activities necessary to 854 prepare itself to start Collection, Transportation, and Processing services required by this Agreement on 855 the Commencement Date. Such activities shall allow Contractor to transition Customers and services from 856 the collection contractor providing services prior to the Commencement Date to Contractor. 857
858 3.2 CONDITIONS TO EFFECTIVENESS OF AGREEMENT
859 The obligation of City to permit this Agreement to become effective and to perform its undertakings 860 provided for in this Agreement is subject to the satisfaction of all the conditions below, each of which may 861 be waived, in written form, in whole or in part by the City. 862
863 A. Accuracy of Representations. The representations and warranties made in Article 2 of this 864 Agreement are true and correct on and as of the Effective Date. 865
866 B. Absence of Litigation. There is no litigation pending on the Effective Date in any court challenging 867 the award or execution of this Agreement or seeking to restrain or enjoin its performance. 868
869 C. Furnishings of Insurance, Performance Bond, and Guaranty Agreement. Contractor has 870 furnished evidence of the insurance and executed Guaranty Agreement required by Article 12 City Council/RSA Agenda 279 Tuesday, May 27, 2025
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871 that is satisfactory to the City and provided evidence of its ability to secure the performance bond 872 required by Article 12 that will be effective on the Commencement Date of the Agreement 873
874 D. Effectiveness of City Council Action. The City Council shall have taken action approving this 875 Agreement and all Parties shall have signed the Agreement pursuant to Applicable Law prior to or 876 on the Effective Date, provided that no restraining order of any kind has been issued. 877
878 3.3 TERM
879 The initial Term of this Agreement shall continue in full force from 12:01 a.m. on July 1, 2025 880 (Commencement Date) to midnight June 30, 2035, unless the Agreement is extended by City pursuant to 881 Section 3.4 or terminated in accordance with Section 13.2. 882
883 3.4 OPTION TO EXTEND TERM
884 At the City’s sole discretion, the City shall have the option to extend this Agreement on one or more 885 occasions provided that the combined extension period does not exceed five (5) years or extend beyond 886 June 30, 2040. If the City extends the Agreement, it shall give written notice to Contractor one hundred 887 eighty (180) calendar days prior to the initial expiration date or extended expiration date of this 888 Agreement. The City’s written notice shall specify the number of months by which it elects to extend the 889 Term of this Agreement and the revised expiration date of the Agreement. At the end of the Term, the 890 City may renegotiate the terms and conditions of the Agreement with the Contractor or select another 891 means to procure or provide collection services. The City has no obligation to renegotiate, renew or 892 extend the rights granted to Contractor beyond the initial Term of the Agreement defined in Section 3.3. 893
894 It is the City’s intent to conduct a detailed review of the Contractor’s performance and Contractor’s cost 895 of operations during Rate Year 27 (July 1, 2031 through June 30, 2032) to determine Contractor’s 896 Compensation and Maximum Rates for Rate Year 28 (July 1, 2032 through June 30, 2033) and to determine 897 if the City is interested in extending the Agreement an additional period of time beyond the initial Term 898 defined in Section 3.3. During this detailed review, the City would consider the capital requirements such 899 as replacement of Collection vehicles and Containers that may be necessary to continue service through 900 the extension period.
901 ARTICLE 4.
902 SCOPE OF AGREEMENT
903
904 4.1 SCOPE OF AGREEMENT
905 This Franchise granted to Contractor shall be exclusive with regard to Collection, Transporting, and 906 Processing of Solid Waste and Organic Materials generated in the City by Residential Premises, Parcelized 907 and Non-Parcelized Multi-Family Premises and Commercial Premises and Recyclable Materials generated 908 in the City by Parcelized Multi-Family Premises, Non-Parcelized Multi-Family Premises, and Commercial 909 Premises that use Bins or Drop Boxes for Recyclable Materials Collection, except as described in Section 910 4.2 or except where otherwise precluded by Applicable Law. 911
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912 The Contractor, or its Subcontractor(s), shall be responsible for the following, as responsibilities may be 913 limited by Section 4.2 or precluded by Applicable Law:
914
915 A. Collecting all Solid Waste and Organic Materials generated in the City and placed by Generator 916 for Collection.
917
918 B. Collecting all Source Separated Recyclable Materials Generated by Parcelized Multi-Family 919 Premises, Non-Parcelized Multi-Family Premises, and Commercial Premises that subscribe to Bin 920 or Drop Box Recyclable Materials Collection services. 921
922 C. Collecting Solid Waste, Recyclable Materials (limited to Recyclable Materials placed in Bins), and 923 Organic Materials from City facilities (as identified in Section 5.9 and Exhibit 5.9 of this Agreement) 924 and at special events (as defined in Section 5.10 of this Agreement) and Collecting Solid Waste 925 from public litter Containers (as identified in Exhibit 5.9 of this Agreement). 926
927 D. Transporting Collected materials to the Designated Transfer Station, Approved Composting Site, 928 or Approved Recyclable Materials Processing Site as specified in Article 6. 929
930 E. Processing and marketing, or arranging for Processing and marketing of Recyclable Materials and 931 Organic Materials Collected in the City by Contractor. 932
933 F. Providing public education to residents, businesses, and schools located in the City. 934
935 G. Providing customer service and billing service as necessary to fulfill its obligations under this 936 Agreement.
937
938 H. Implementing all services in accordance with requirements and timeframes specified in the 939 Agreement.
940
941 I. Furnishing all labor, supervision, vehicles, Containers, other equipment, materials, supplies, and 942 all other items and services necessary to perform its obligations under this Agreement. 943
944 J. Paying all expenses related to provision of services required by this Agreement including, but not 945 limited to, taxes, regulatory fees, Pass-Through Costs, utilities, etc. 946
947 K. Performing or providing all other services necessary to fulfill its obligations under this Agreement. 948
949 L. Providing all services required by this Agreement in a thorough and professional manner so that 950 residents, businesses, and the City are provided timely, reliable, courteous and high-quality 951 service at all times.
952
953 M. Performing all services in substantial accordance with the Contractor’s Proposal and in full 954 accordance with this Agreement at all times using best industry practice for comparable 955 operations. If the Contractor’s Proposal and Agreement conflict, the Agreement shall prevail. 956
957 N. Complying with Applicable Law.
958
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959 O. Performing all invoicing, billing and revenue collection services from Customers provided services 960 pursuant to this Agreement and the City’s agreement with the Recyclable Materials Cart 961 Contractor.
962
963 The enumeration and specification of particular aspects of service, labor, or equipment requirements shall 964 not relieve Contractor of the duty of accomplishing all other aspects necessary to fulfill its obligations 965 under this Agreement whether such requirements are enumerated elsewhere in the Agreement or not, 966 unless excused in accordance with Section 13.6.
967
968 4.2 LIMITATIONS TO SCOPE
969 The materials listed in this Section may be collected and transported by Persons other than the Contractor 970 provided that such Persons do so in accordance with the City’s Municipal Code. 971
972 A. Construction and Demolition Debris. Construction and Demolition Debris generated in the City 973 and hauled by a Person operating under a permit or franchise for the collection and processing of 974 Construction and Demolition Debris issued by the City pursuant to the Chapter 7.04.150 of the 975 City’s Municipal Code.
976
977 B. Specialty Recyclable Materials Hauled by City-Permitted Companies. Specialty Recyclable 978 Materials generated at Residential or Commercial Premises, including City facilities, hauled by a 979 Person operating under a permit or franchise for the collection and processing of Recyclable 980 Materials issued by the City pursuant to the Chapter 7.04 of the City’s Municipal Code. 981
982 C. Materials for which Generator is Compensated. Recyclable Materials and Organic Materials 983 generated by Commercial businesses, including City facilities, which are Collected by a Person 984 (operating under a permit or franchise for the collection and processing of Recyclable Materials 985 issued by the City pursuant to the Chapter 7.04 of the City’s Municipal Code) through a private 986 arrangement with the Generator, and the Generator is compensated by such Person for the 987 materials Collected such that there is no net cost to the Generator for removal or delivery of 988 material to an alternative location. (Net cost shall be the amount resulting from the calculation of 989 the sum of the Generator’s payments for the cost of hauling, collection, or other services less any 990 rebates or payments received by the Generator for or related to those the services.) 991
992 D. Source Separated Recyclable Materials Generated at Residential Premises and City Facilities in 993 Carts. Source Separated Recyclable Materials generated at Residential Premises and City facilities 994 placed for Collection in Carts.
995
996 E. Source Separated Recyclable Materials Generated by Commercial Premises and Collected in 997 Carts. Source Separated Recyclable Materials generated at Commercial Premises and placed for 998 Collection in Carts.
999
1000 F. Source Separated E-Scrap Items. Source Separated E-Scrap Items Generated in the City and 1001 hauled by a Person operating under a permit or franchise for the collection and processing of such 1002 material issued by the City pursuant to the Chapter 7.04 of the City’s Municipal Code. 1003
1004 G. Materials Hauled by Owner or Occupant, or its Contractor. Solid Waste, Recyclable Materials, 1005 Organic Materials, Construction and Demolition Debris, E-Scrap Items, and Specialty Recyclable City Council/RSA Agenda 282 Tuesday, May 27, 2025
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1006 Materials that are removed from any Premises and are Transported to a transfer station, materials 1007 recovery facility, Disposal Site, or Processing Site by (i) the Owner or Occupant of such Premises, 1008 (ii) the full-time employee of Owner or Occupant of such Premises that uses the Owner’s or 1009 Occupant’s equipment to transport materials; or (iii) by a contractor whose removal of the Solid 1010 Waste, Recyclable Materials, Organic Materials and/or Construction and Demolition Debris are 1011 incidental to the service being performed and such contractor removes materials at no additional 1012 or separate fee. The determination of whether removal of material is incidental to the services 1013 being performed may, for example, be based on whether fees are charged on a volume or hourly 1014 basis, and the reasonableness of those fees relative to those charged by third parties for 1015 comparable services.
1016
1017 H. Donated Materials. Recyclable Materials, Organic Materials, and Specialty Recyclable Materials 1018 Generated in the City that are donated by the Generator to youth, civic, charitable, or other not1019 for-profit organizations. 1020
1021 I. Beverage Containers. Containers delivered for Recycling under the California Container Recycling 1022 Litter Reduction Act, Section 14500, et. seq. California Public Resources Code as may be amended 1023 from time to time.
1024
1025 J. Organic Materials Composted On-Site. Organic Materials Composted on a Residential Premises. 1026
1027 K. Animal, Grease Waste, and Used Cooking Oil. Animal waste and remains from slaughterhouse 1028 or butcher shops, grease waste, or used cooking oil. 1029
1030 L. Sewage Treatment By-Product. By-products of sewage treatment including sludge, sludge ash, 1031 grit, and screenings.
1032
1033 M. Hazardous Wastes and Infectious Waste. Household Hazardous Waste, Hazardous Waste, 1034 Infectious Waste, and Designated Waste regardless of its source. 1035
1036 N. Materials Generated by Public School, County, and Federal Facilities. Materials generated by 1037 public schools, county, and Federal facilities located in the City provided that the generator has 1038 arranged services with other Persons or has arranged services with the Contractor through a 1039 separate agreement.
1040
1041 O. Edible Food for Human Consumption. Edible food that is Collected by a Person through a private 1042 arrangement with the Generator for the purpose of providing to other Persons for human 1043 consumption (which may involve some type of preparation, cooking, or processing). Contractor 1044 will, at no additional cost to the City, support the City’s Edible Food Recovery program as required 1045 under SB 1383 pursuant to Contractor’s obligations prescribed in Article 7.1 and Exhibit 7.1 of this 1046 Agreement. Contractor support may include educating commercial Edible Food generators, 1047 providing records of site visits, conducting education efforts, providing lists of food recovery 1048 organizations, and coordinating with the City. Contractor will assist the City in conducting Food 1049 Scraps and Organic Materials surveys and Diversion programs by providing accurate and timely 1050 service data, conducting site visits, and distributing materials. 1051
1052 P. Byproducts of Food and Beverage Processing. Under AB 3036 (2018), certain byproducts from 1053 the processing of food or beverages from agricultural or industrial sources, provided they do not City Council/RSA Agenda 283 Tuesday, May 27, 2025
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1054 include animal, including fish, processing byproducts, they are Source-Separated, they are not 1055 discarded (meaning the generator may not pay the recipient any consideration, or accept a 1056 discount or reduction in price for Collecting, processing, or transporting such material), and they 1057 are used as animal feed, are exempted from this Exclusive Franchise Agreement. Entities 1058 requesting exemption must apply to the City and be any of the following: registered pursuant to 1059 Section 110460 of the Health and Safety Code or be exempted from registration pursuant to 1060 Section 110480 of the Health and Safety Code or be a beer manufacturer as defined in Section 1061 23012 of the Business and Professions Code, or be a distilled spirits manufacturer, as defined in 1062 Section 23015 of the Business and Professions Code. 1063
1064 Q. Materials Generated or Accumulated During an Emergency or Disaster. During a declared State 1065 or Federal emergency or disaster, City may enlist additional contractors or other entities in the 1066 Collection, transportation, and/or Disposal of any and all types of materials that are generated or 1067 accumulated. In particular, the City may choose to pursue reimbursement of disaster services 1068 through the Federal Emergency Management Agency (FEMA), which would require that the 1069 associated disaster services be secured via a competitive bidding process. Contractor shall not be 1070 prohibited by any part of this Agreement from participating in this competitive bidding process, 1071 but City shall be free to put services associated with declared disasters out to bid in accordance 1072 with FEMA requirements and enlist additional contractors based on the results of that process. 1073
1074 Contractor acknowledges and agrees that the City may permit other Persons besides the Contractor to 1075 Collect any and all types of materials excluded from the scope of this Franchise, as set forth above, without 1076 seeking or obtaining approval of Contractor. If Contractor can produce evidence that other Persons are 1077 servicing Containers or are Collecting and Transporting Solid Waste, Recyclable Materials, and/or Organic 1078 Materials in a manner that is not consistent with the City’s Municipal Code, it shall report the location, 1079 the name and phone number of the Person or company to the City along with Contractor’s evidence of 1080 the violation of the exclusiveness of this Franchise. 1081
1082 The scope of this Franchise shall be interpreted to be consistent with Applicable Law, now and during the 1083 Term of the Agreement. If future judicial interpretations of current law or new laws, regulations, or 1084 judicial interpretations limit the ability of the City to lawfully provide for the scope of services as 1085 specifically set forth herein, Contractor agrees that the scope of the Agreement will be limited to those 1086 services and materials which may be lawfully provided and that the City shall not be responsible for any 1087 lost profits or losses claimed by Contractor to arise out of limitations of the scope of the Agreement set 1088 forth herein. In such an event, it shall be the responsibility of Contractor to minimize the financial impact 1089 of such future judicial interpretations or new laws. 1090
1091 4.3 SUBCONTRACTING
1092
1093 A. Approval by City. Contractor shall not engage any Subcontractors for Collection, Transportation, 1094 Processing, or Disposal of Solid Waste, Recyclable Materials, or Organic Materials services without 1095 the prior written consent of the City.
1096
1097 B. Approval of Recyclable Materials Cart Contractor as a Subcontractor. As of the Effective Date of 1098 this Agreement, the City has approved Contractor’s use of the Recyclable Materials Cart 1099 Contractor, for the performance of the services listed below. 1100
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1101 1. Collection of Organic Materials from Single-Family and Parcelized Multi-Family Premises in 1102 Carts described in Section 5.3.2 and 5.3.3;
1103 2. Collection of Organic Materials from Non-Parcelized Multi-Family and Commercial Premises 1104 described in Sections 5.3.4 and 5.3.5, with the limitation that Recyclable Materials Cart 1105 Contractor Organic Collection services are limited to those Customers using Carts for Organic 1106 Materials Collection;
1107 3. Distribution of kitchen pails described in Section 5.3.2; and, 1108 4. Collection of holiday trees described in Section 5.8. 1109
1110 Contractor’s obligation to Subcontract these services to Recyclable Materials Cart Contractorshall 1111 be limited to the Collection of Organic Materials from Single-Family and Parcelized Multi-Family 1112 Premises using Carts unless Recyclable Materials Cart Contractor chooses not to provide these 1113 services. At its option, Contractor may Subcontract the Organic Materials services listed in Section 1114 4.3.B.2 through 4.3.B.5.
1115
1116 C. Approval of Subcontractor for Sharps Mail-In Program. As of the Effective Date of this 1117 Agreement, the City grants the Contractor the right to provide the Sharps mail-back program 1118 required by Section 7.7 using a Subcontractor selected by Contractor, Guarantor, or other 1119 Affiliate. City acknowledges that such Subcontractor may change from time-to-time and does not 1120 require Contractor to seek City’s approval thereof. 1121
1122 D. Subcontracting Agreement. For Subcontractor arrangements, Contractor shall enter into an 1123 agreement with its Subcontractor to define the terms and conditions between it and its 1124 Subcontractor related to the provision of services approved under this Section. The Contractor 1125 shall prepare and negotiate a comprehensive subcontracting agreement, which includes 1126 provisions such as, but not limited to: duration of the agreement, description of services and 1127 performance obligations, insurance and indemnification requirements, Billing arrangements, and 1128 compensation and compensation adjustment procedures. The City’s expectation is that the 1129 Subcontractor’s compensation will be adjusted annually in accordance with the procedures 1130 described in Article 11 and that City approved changes in Contractor’s Compensation and 1131 Maximum Rates shall be passed onto the Subcontractor in the form of increased compensation. 1132 Prior to execution of any Subcontract agreement by the Contractor and its Subcontractor(s), 1133 Contractor shall provide the City with the subcontract agreement for review, and the City may 1134 provide comments to the Contractor for consideration. 1135
1136 4.4 OWNERSHIP OF MATERIALS
1137 Once Solid Waste, Recyclable Materials, and Organic Materials are placed in Containers and at the 1138 Collection location, ownership and the right to possession of such materials shall transfer directly from 1139 the Generator to Contractor. Once Solid Waste, Recyclable Materials, or Organic Materials are deposited 1140 by Contractor at a Disposal Site, transformation site, transfer station, Composting Site, or Processing Site, 1141 such materials shall become the property of the owner or operator of the facility. 1142
1143 City may obtain ownership or possession of Solid Waste, Recyclable Materials, or Organic Materials placed 1144 for Collection upon written notice to Contractor of its intent to do so. However, nothing in this Agreement 1145 shall be construed as giving rise to any inference that City has such ownership or possession unless such 1146 written notice has been given to Contractor.
1147
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1148
1149 4.5 CITY-DIRECTED CHANGES TO SCOPE
1150
1151 A. Types of Changes. City may, by written notice, direct Contractor to perform additional services 1152 or modify existing services. For example, and without limitation, the City may request the 1153 following:
1154
1155 1. Collection of certain materials, which were originally Solid Waste, but during the Term can, 1156 in the reasonable opinion of the City, be economically Recycled or Composted; 1157 2. Inclusion of new Diversion programs;
1158 3. Expansion of public education activities;
1159 4. Elimination of programs;
1160 5. Modification of the manner in which Contractor performs existing services; 1161 6. Performance of pilot programs;
1162 7. Implementation of innovative services, which may entail new Collection methods, targeted 1163 routing, different kinds of services, different types of Collection vehicles or Containers, 1164 and/or new requirements for Generators;
1165 8. Transportation of materials to a Designated Transfer Station, Approved Composting Site, or 1166 Approved Recyclable Materials Processing Site other than that specified on the Effective 1167 Date;
1168 9. Collection of C&D in the event the City desires that C&D Collection becomes part of the 1169 exclusive scope of the Contractor’s service;
1170 10. Capital requirements related to an extension of the initial Term of the Agreement as defined 1171 in Section 3.3; and,
1172 11. Implementation of one or more programs to support the waste reduction goals of City’s 1173 Climate Action Plan and Diversion, program, and reporting requirements of Applicable Law. 1174
1175 B. Procedure for Making Changes in Scope. Contractor shall present, within thirty (30) calendar 1176 days of the City’s written request, a written proposal to perform additional services or modify 1177 existing services. Contractor shall not be compensated for the proposal preparation costs or costs 1178 incurred during the negotiation of its proposal for the change in scope of such services. At a 1179 minimum, the proposal shall contain a complete description of the following:
1180
1181 1. Collection methodology to be employed (equipment, manpower, etc.). 1182 2. Equipment to be used (vehicle number, types, capacity, age, etc.). 1183 3. Labor requirements (number of employees by classification). 1184 4. Type of materials to be Collected and Containers to be used. 1185 5. Provision for program publicity/education/marketing. 1186 6. Five-year projection of the financial results of the program's operations in a balance sheet 1187 and operating statement format including documentation of the key assumptions underlying 1188 the projections and the support for those assumptions, giving full effect to the savings or 1189 costs to existing services.
1190 7. Plans and schedule for implementing the service change. 1191
1192 The City shall review the Contractor’s proposal for the change in scope of services. The City may 1193 negotiate with the Contractor to amend the Agreement to reflect the change in scope or the City 1194 may choose not to negotiate with the Contractor.

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1195
1196 If the City chooses to negotiate with the Contractor and the Contractor and City cannot agree on 1197 terms and conditions of such services in one hundred twenty (120) calendar days from the date 1198 when City first requests a proposal from Contractor to perform such services, Contractor 1199 acknowledges and agrees that City may permit other Persons besides Contractor to provide 1200 additional Solid Waste, Recyclable Materials, and Organic Materials Collection and Diversion 1201 services not otherwise contemplated.
1202
1203 C. Adjustment to Contractor’s Compensation. If the City directs a change in scope or Designated 1204 Transfer Station, Approved Recyclables Processing Site, or Approved Composting Site, Contractor 1205 may be entitled to an adjustment in its compensation in accordance with Sections 4.5 and 11.4. 1206 Contractor shall not be compensated for the proposal preparation costs or costs incurred during 1207 the negotiation of its proposal for the change in scope of such services. 1208
1209 D. Implementation of New Services. The Contractor’s implementation of the new services, 1210 modification to existing service, or change in the Designated Transfer Station, Approved 1211 Recyclable Materials Processing Site, or Approved Composting Site shall occur in a timely, smooth, 1212 and seamless manner such that Customers and/or Generators do not experience disruption in 1213 Collection services. Contactor shall be responsible for managing the implementation of new or 1214 modified Collection services or change in the Designated Transfer Station, Approved Recyclable 1215 Materials Processing Site, or Approved Composting Site and other related services and shall do so 1216 in accordance with an implementation plan that has been approved by the City. 1217
1218 E. Monitoring and Evaluation of Changes in Scope. At the City’s request, the Contractor shall meet 1219 with the City to describe the progress of implementing the change in scope. If applicable, the 1220 Contractor shall document the results of the new or modified services on a monthly basis, 1221 including, at a minimum, the Tonnage Diverted by material type, the end use or processor of the 1222 Diverted materials, the cost per Ton for Transporting and Processing each type of material, and 1223 other such information requested by the City that is necessary to evaluate the performance of 1224 each program change.
1225
1226 At each status meeting, the City and Contractor shall have the opportunity to revise the program 1227 or services based on mutually agreed upon terms in accordance with provisions of this Section. 1228 The City shall have the right to terminate a program if, in its sole discretion, the Contractor is not 1229 cost effectively achieving the program’s goals and objectives. Before such termination, the City 1230 shall meet and confer with the Contractor for a period not to exceed ninety (90) calendar days to 1231 resolve the City’s concerns. Thereafter, the City may utilize a third party to perform these services 1232 if the City reasonably believes the third party can improve on Contractor’s performance and/or 1233 cost. Notwithstanding these changes, Contractor shall continue the program during the meet and 1234 confer period and, thereafter, until the third party takes over the program. 1235
1236 4.6 CITY’S RIGHT TO PERFORM SERVICES AND POSSESS EQUIPMENT 1237
1238 4.6.1 General
1239 The City, in its sole discretion, may determine a period of emergency if both of the following conditions 1240 occur: (i) Contractor, for any reason whatsoever, fails, refuses, or is unable to perform its Collection, 1241 Processing, and Disposal obligations, at the time and in the manner provided in this Agreement, for a City Council/RSA Agenda 287 Tuesday, May 27, 2025
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1242 period of more than 48 hours, and (ii) the City finds that such failure, refusal, or inability endangers or 1243 menaces the public health, safety, or welfare. If the City determines a period of emergency, then the City 1244 shall have the right during the period of such emergency to (i) perform, or cause to be performed, such 1245 services with its own or other personnel without liability to Contractor; and/or (ii) take possession of and 1246 use any or all of Contractor's land, equipment, and other property used or useful in providing the 1247 Collection, Transportation, Processing, and Disposal services under this Agreement. If the City chooses to 1248 exercise such rights, the City shall provide written notice to the Contractor 24 hours prior to its plans to 1249 exercise its rights. The City agrees that it assumes responsibility for the proper and normal use of such 1250 equipment and facilities while in its possession and that it shall attempt to avoid interrupting the 1251 Contractor’s services to other parties.
1252
1253 The City shall provide oral notice (by telephone or in Person) to Contractor of the Contractor's failure, 1254 refusal, or inability to perform its Collection obligations and of the City’s intent to perform Collection 1255 services and/or possess Contractor’s equipment. The City shall send written confirmation of such oral 1256 notification to Contractor, by certified mail, within 24 hours of the oral notification, unless the 24-hour 1257 deadline ends on a Sunday, City holiday, or U.S. Postal Service holiday, then confirmation of such notice 1258 shall be sent on the day following such day.
1259
1260 Contractor agrees that in such event:
1261
1262 A. It will take direction from the City to effect the transfer of possession of property to the City for 1263 City's use.
1264
1265 B. It will, if City so requests, keep in good repair and condition all of such property, provide all motor 1266 vehicles with fuel, oil and other service, and provide such other service as may be necessary to 1267 maintain said property in satisfactory operational condition. 1268
1269 C. Subject to provisions of any labor agreements then in effect, Contractor shall provide the services 1270 of all or any personnel necessary or useful for the Collection, Transportation, Processing, and 1271 Disposal operations including, if City so desires, employees then employed by Contractor. 1272 Contractor further agrees, if City so requests, to furnish City the services of any or all management 1273 or office personnel employed by Contractor whose services are necessary or useful for Collection, 1274 Transportation, Processing, and Disposal operations and for the Billing and collection of fees for 1275 these services subject to the provisions of Section 14.1. 1276
1277 If the interruption or discontinuance of service is caused by any of the reasons listed in Section 13.6, the 1278 City shall pay to Contractor $100 per day for use of each Collection vehicle and the reasonable rental value 1279 of other equipment and facilities, possession of which is taken by the City, for the period of the City's 1280 possession, if any, which extends beyond the period of time for which Contractor has rendered bills to 1281 Customers in advance of service.
1282
1283 Except as otherwise expressly provided in the previous paragraph, the City's exercise of its rights under 1284 this Article: (i) does not constitute a taking of private property for which compensation must be paid; (ii) 1285 will not create any liability on the part of City to Contractor; and (iii) does not exempt Contractor from the 1286 indemnity provisions of Article 12, which are meant to extend to circumstances arising under this Section, 1287 provided that Contractor is not required to indemnify City against claims and damages arising from the 1288 sole negligence of City officers, employees, and agents in the operation of Collection vehicles during the 1289 time the City has taken possession of such vehicles.

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1290
1291 4.6.2 Duration of City's Possession
1292 City has no obligation to maintain possession of Contractor's property and/or continue its use in 1293 Collection, Transportation, Processing, and Disposal operations for any period of time and may, at any 1294 time, in its sole discretion, relinquish possession to the Contractor. 1295
1296 The City's right to retain temporary possession of Contractor's property, and to provide Collection 1297 services, shall continue until Contractor can demonstrate to the City's satisfaction that it is ready, willing, 1298 and able to resume such services or for one hundred eighty (180) calendar days, whichever occurs first. 1299
1300 4.6.3 Condemnation
1301 The City fully reserves the rights to acquire the Contractor's property utilized in the performance of this 1302 Agreement, by purchase or through the exercise of the right of eminent domain. 1303
1304 4.7 TRANSITION TO NEXT CONTRACTOR AT END OF AGREEMENT 1305 If applicable, before expiration or earlier termination of this Agreement, Contractor will take direction 1306 from the City and subsequent contractor to assist in a timely and orderly transition of services from 1307 Contractor to subsequent contractor. In response to the City’s direction, Contractor shall provide then1308 current route maps and route lists, which identify each Customer on the route, each Customer’s service 1309 level (number of Containers, Container sizes, frequency of Collection, scheduled Collection day), and any 1310 special Collection notes, and detailed then-current Customer account and Billing information. Contractor 1311 may, but shall not be obliged to, sell Collection vehicles, equipment, or facilities to the next contractor. 1312
1313 4.8 CITY FREE TO NEGOTIATE WITH THIRD PARTIES
1314 The City may investigate all options for Collection, Transportation, Processing, and Disposal services that 1315 will be scheduled to commence after the expiration of the Term or earlier termination of this Agreement. 1316 Without limiting the generality of the foregoing, the City may solicit proposals from Contractor and from 1317 third parties for the provision of Collection, Transportation, Processing, or Disposal of Solid Waste, 1318 Recyclable Materials, and Organic Materials services, and any combination thereof. The City may 1319 negotiate and execute agreements for such services that will take effect upon the expiration or earlier 1320 termination of this Agreement.
1321 ARTICLE 5.
1322 COLLECTION SERVICES
1323
1324 5.1 SOLID WASTE COLLECTION
1325
1326 5.1.1 General
1327 Contractor shall Collect Solid Waste from Residential and Commercial Premises as described in this Section 1328 5.1 and from City facilities as described in Section 5.9. Contractor acknowledges that the City is committed 1329 to Diverting materials from Disposal through the implementation of source reduction, reuse, Recycling, 1330 and Composting programs, and that the City may at some time in the future implement, in accordance City Council/RSA Agenda 289 Tuesday, May 27, 2025
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1331 with Section 4.5, new programs that may impact the overall quantity or composition of Solid Waste to be 1332 Collected by Contractor.
1333
1334 5.1.2 Single-Family Premises
1335 Contractor shall Collect Solid Waste from Single-Family Premises once per week from Contractor-provided 1336 Carts. Contractor shall provide each Customer with a new gray colored Solid Waste Cart with a capacity 1337 of- 20-, 35-, 64-, or 96-gallons that is the same size as the Cart currently used by Customer. The new Solid 1338 Waste Carts shall be provided to all Customers during Rate Year 21 and the Carts currently in service shall 1339 be removed from all Single-Family Premises when the new Carts are delivered. Contractor shall deploy 1340 the replacement Solid Waste Carts during the spring of 2025, and Contractor shall schedule said 1341 deployment of new Carts for March and April 2025. The new Carts shall be delivered to all Single-Family 1342 Premises in no longer than a six (6) consecutive week duration, and Contractor shall make reasonable 1343 efforts to conclude delivery of new Carts to all Customers within four (4) weeks. 1344
1345 Contractor shall Collect Carts from the Curb unless the Occupant is physically unable to place the 1346 Container Curbside. In such case, Contractor shall Collect Carts from an alternative service location (such 1347 as the side yard or backyard).
1348
1349 Contractor shall offer three-day rentals of six-cubic-yard Bins to Single-Family Customers for Solid Waste 1350 Collection when Customers are remodeling, cleaning their property, or performing other home projects. 1351 Contractor shall charge Customers for this service at Rates not to exceed City-approved Maximum Rates. 1352
1353 5.1.3 Parcelized Multi-Family Premises
1354 Contractor shall provide Solid Waste Collection services to Parcelized Multi-Family Premises in the same 1355 manner it provides Solid Waste Collection services to Single-Family Premises with the additional 1356 requirement that Carts shall be Collected from the Curb, at a location adjacent to each premises, or at 1357 another location agreed to by the Contractor and Customer. In the event, the property manager or home 1358 owners’ association representing a group of Parcelized Multi-Family Premises chooses to receive 1359 Collection services in the same manner as Non-Parcelized Multi-Family Premises, Contractor shall provide 1360 such services in the manner requested.
1361
1362 Contractor shall provide each Customer with a new gray colored Solid Waste Cart with a capacity of- 20-, 1363 35-, 64-, or 96-gallons that is the same size as the Cart currently used by Customer. The new Solid Waste 1364 Carts shall be provided to all Customers during Rate Year 21 and the Carts currently in service shall be 1365 removed from all Parcelized Multi-Family Premises when the new Carts are delivered. Contractor shall 1366 deploy the replacement Solid Waste Carts during the spring of 2025, and Contractor shall schedule said 1367 deployment of new Carts for March and April 2025. The new Carts shall be delivered to all Single-Family 1368 Premises in no longer than a six (6) consecutive week duration, and Contractor shall make reasonable 1369 efforts to conclude delivery of new Carts to all Customers within four (4) weeks. 1370
1371 5.1.4 Non-Parcelized Multi-Family Premises
1372 Contractor shall Collect Solid Waste from Non-Parcelized Multi-Family Premises as frequently as 1373 scheduled by Customer up to five (5) days per week (Monday through Friday), but not less than once per 1374 week with the exception that Contractor shall continue to provide any Customer that subscribes to 1375 Saturday Collection service as of the Commencement Date with Saturday Collection until Customer 1376 voluntarily adjusts service. Contractor shall allow Non-Parcelized Multi-Family Premises to use Carts or 1377 Bins for Solid Waste Collection that are shared by the Occupants of the Premises. Contractor shall provide 1378 one or more Carts or Bins to such Premises as requested by Customer provided that no less than 96 gallons City Council/RSA Agenda 290 Tuesday, May 27, 2025
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1379 of Container capacity are provided for every four dwelling units in the Premises. Contractor shall provide 1380 each Customer with a choice of one or more Carts with capacities ranging from 20 to 96 gallons or Bins 1381 with capacity ranging from 1 to 8 cubic yards. Contractor shall Collect Solid Waste from Carts and Bins at 1382 a location selected by Customer and approved by the City. 1383
1384 Contractor shall provide each Customer with a new gray colored Solid Waste Cart with a capacity of- 35- 1385 gallons that is the same size as the Cart currently used by Customer. The Solid Waste Carts shall be gray 1386 in color, with the specific color and layout of hot stamp content and signs approved by the City in advance 1387 in writing. Contractor shall provide a new Cart that is the same size as the Customer’s current Cart in 1388 service. The new Solid Waste Carts shall be provided to all Customers during Rate Year 21 and the Carts 1389 currently in service shall be removed from all Non-Parcelized Multi-Family Premises when the new Carts 1390 are delivered. Contractor shall deploy the replacement Solid Waste Carts during the spring of 2025, and 1391 Contractor shall schedule said deployment of new Carts for March and April 2025. The new Carts shall be 1392 delivered to all Single-Family Premises in no longer than a six (6) consecutive week duration, , and 1393 Contractor shall make reasonable efforts to conclude delivery of new Carts to all Customers within four 1394 (4) weeks. Contractor shall ensure that Customers subscribed to level of collection service remains 1395 uninterrupted during the recovery and deployment of refurbished Bins. 1396
1397 5.1.5 Commercial Premises
1398 Contractor shall Collect Solid Waste from Commercial Premises as frequently as scheduled by the 1399 Customer up to six (6) days per week (Monday through Saturday), but not less than once per week. 1400 Contractor shall only be obligated to provide Customer(s) with Saturday Collection service if the 1401 Customer(s) cannot be accommodated through service level changes (mutually agreed to by the 1402 Customer(s)) to schedule Collections on Mondays through Fridays. Contractor shall Collect Solid Waste 1403 from Carts, Bins, and Drop Boxes at a location selected by the Customer and approved by the City. 1404 Contractor shall allow each Commercial Customer to select a Collection service methodology that best 1405 suits the needs of its Premises. Specifically, the Contractor shall offer the following Collection service 1406 methodologies to Commercial Customers:
1407
1408 A. Individual Cart or Bin Service. Contractor shall allow each Commercial Premises to use Carts or 1409 Bins for Solid Waste Collection. Contractor shall provide each Customer with a choice of one or 1410 more Carts with capacities of 35-, 64-, or 96-gallons or Bins with capacity ranging from 1 to 8 cubic 1411 yards.
1412
1413 B. Centralized Bin or Cart Service. Contractor shall allow each Commercial Premises to use Carts or 1414 Bins for Solid Waste Collection that are shared by the Occupants of two or more adjacent 1415 Commercial Premises. In such case, Contractor shall provide one or more Carts or Bins as 1416 requested by Customer(s) provided that no less than 96 gallons of Container capacity is provided 1417 for every four Commercial Premises. Contractor shall provide each Customer with a choice of one 1418 or more Carts with capacities ranging from 35 to 96 gallons or Bins with capacity ranging from 1 1419 to 8 cubic yards.
1420
1421 C. Permanent Drop Boxes and Compactors. Contractor shall allow a Customer to use a Drop Box or 1422 Compactor for Solid Waste Collection to meet the Customer’s permanent Disposal needs. In such 1423 case, Contractor shall provide Customer with a choice of Container capacities ranging from 10 to 1424 50 cubic yards. Contractor shall offer Customers the option to purchase or lease Compactors 1425 through either the Contractor or an outside vendor. 1426
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1427 D. New Carts and Refurbished Bins Contractor shall provide each Customer that subscribes to Cart 1428 collection service with a new 20-, 35-, 64-, or 96-gallon Cart as requested by the Customer. The 1429 Solid Waste Carts shall be gray in color, with the specific color and layout of hot stamp content 1430 and signs approved by the City in advance in writing. Contractor shall provide a new Cart that is 1431 the same size as the Customer’s current Cart in service at the time of delivery. The new Solid 1432 Waste Carts shall be provided to all Customers commencing in April 2025 and shall be completed 1433 by November 14, 2025, and the Carts currently in service shall be removed from all Commercial 1434 Premises when the new Carts are delivered. Contractor shall refurbish (new paint, new signs, etc.) 1435 all Bins. The refurbished Bins shall be gray in color, with the specific color and layout of stenciling 1436 and signs approved by the City in advance in writing. Contractor shall ensure that Customers 1437 subscribed to level of collection service remains uninterrupted during the recovery and 1438 deployment of the refurbished Bins.
1439
1440 5.1.6 Discounted Rates
1441
1442 E. Low Income (Life-Line) Rates. Contractor shall provide Residential Collection of Solid Waste at a 1443 Rate that is fifteen percent (15.0%) less than the Rate it charges other Single-Family Customers 1444 for comparable level of service for eligible, low income subscribers demonstrating that they 1445 receive assistance under PG&E's California Alternate Rates for Energy (“CARE”) ratepayer 1446 assistance program. Contractor shall determine who is eligible for this Rate. Contractor shall 1447 require that life-line Customers submit applications annually to Contractor, and Contractor shall 1448 verify continued eligibility each year by review of applications. The Contractor’s Life-Line Rate 1449 shall not exceed the Maximum Rate approved by the City. 1450
1451 F. Senior Rates. Contractor shall bill Customers whose heads of household qualify as Seniors 1452 (meaning that they are 65 or more years of age) at a Rate that is fifteen percent (15%) less than 1453 the Rate it charges other Single-Family Customers for comparable level of service. Contractor 1454 shall verify Customer’s eligibility for the Senior discount using driver’s license or birth certificate. 1455 Contractor shall require that Customers with Senior 1456
1457 Discounted rates eligibility requirements are only intended to apply to current residents of the 1458 Dwelling.
1459
1460
1461 5.2 RECYCLABLE MATERIALS COLLECTION
1462 Collection of Recyclable Materials will be performed by the Recyclable Materials Cart Contractor for (i) all 1463 Single-Family Premises, and (ii) Parcelized Multi-Family Premises, Non-Parcelized Multi-Family Premises, 1464 Commercial Premises, and City facilities that subscribe to Cart Recyclable Materials Collection service. 1465 Parcelized Multi-Family Premises, Non-Parcelized Multi-Family Premises, and Commercial Customers shall 1466 have the option of subscribing to Recyclable Materials Bin or Drop Box Collection services, and Contractor 1467 shall charge the Customers for such service at Rates not to exceed City-approved Maximum Rates. 1468 Contractor shall Collect Traditional Recyclable Materials Generated at Parcelized Multi-Family Premises, 1469 Non-Parcelized Multi-Family Premises, and Commercial Premises provided that the Customer has Source 1470 Separated the Recyclable Materials from Solid Waste and subscribed to Bin or Drop Box Recyclable 1471 Materials Collection service.
1472
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1473 In accordance with Section 4.5, the City may request Contractor to modify its scope of service to include 1474 Collection of additional types of Recyclable Materials beyond those materials specified in the definition 1475 of Traditional Recyclable Materials in Article 1. If the City requests Collection of additional Recyclable 1476 Materials, the Contractor shall not receive additional compensation for Collection service if the Recyclable 1477 Materials are placed by Generator in the Recyclable Materials Container, unless Contractor can 1478 demonstrate that Collection of the additional material(s) requires modifications to Collection routes to 1479 accommodate the additional volume of the material(s). An adjustment to Contractor’s Compensation 1480 may be made for changes in such Collection and Processing costs in accordance with Sections 4.5 and 1481 11.4.
1482
1483 Contractor shall Collect Recyclable Materials from Parcelized Multi-Family Premises, Non-Parcelized 1484 Multi-Family Premises, and Commercial Premises (that subscribe to Bin or Drop Box service) as frequently 1485 as scheduled by Customer up to six (6) days per week (Monday through Saturday), but not less than once 1486 per week. Contractor shall only be obligated to provide Customer(s) Saturday Collection service if the 1487 Customer(s) cannot be accommodated through service level changes (mutually agreed to by the 1488 Customer(s)) to schedule Collections on Mondays through Fridays. Contractor shall allow Parcelized 1489 Multi-Family Premises, Non-Parcelized Multi-Family Premises, and Commercial Customers to select a 1490 Collection service method that best suits the needs of its Premises. Specifically, the Contractor shall offer 1491 the following choices to Parcelized Multi-Family Premises, Non-Parcelized Multi-Family Premises, and 1492 Commercial Customers:
1493
1494 A. Bin service. Contractor shall allow Customers to use Bin(s) for Recyclable Materials Collection. 1495 Contractor shall provide each Customer with a choice of one or more Bins with capacity ranging 1496 from 1 to 8 cubic yards.
1497
1498 B. Centralized Bin service. Contractor shall allow Customers to use Bin(s) for Recyclable Materials 1499 Collection that are shared by the Occupants of two or more Commercial Premises. In such case, 1500 Contractor shall provide one or more Bins to such Premises as requested by Customer(s). 1501
1502 C. Drop Boxes and Compactors. Contractor shall allow Customers to use Drop Boxes or Compactors 1503 for Recyclable Materials. In such case, Contractor shall provide Customers with a choice of 1504 Container capacities ranging from 6 to 40 cubic yards. Contractor shall offer Customers the option 1505 to purchase or lease Compactors through Contractor or an outside vendor. 1506
1507 D. Refurbished Bins. Contractor shall refurbish (new paint, new signs, etc.) all Bins in service for 1508 Recyclable Materials collection The refurbished Recyclable Materials Bins shall be blue in color, 1509 with the specific color and layout of stenciling and signs approved by the City in advance in writing. 1510 Contractor shall ensure that Customers subscribed to level of collection service remains 1511 uninterrupted during the recovery and deployment of refurbished Bins. The Recyclable Materials 1512 Bins shall be blue in color, with the specific color and layout of stenciling and signs approved by 1513 the City in advance in writing.
1514
1515 Contractor shall commence the Bins refurbishment in April 2025 and shall ensure that all Bins in 1516 service and in inventory shall be refurbished no later than November 14, 2025. 1517
1518 5.3 ORGANIC MATERIALS COLLECTION
1519
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1520 5.3.1 General
1521 Contractor shall Collect Organic Materials generated by Residential and Commercial Premises and placed 1522 in the Customer’s Organic Materials Container provided that the Customer has Source Separated the 1523 Organic Materials from Solid Waste. The Organic Materials Collection services shall include Collection of 1524 Yard Trimmings and Food Scraps from Residential and Commercial Premises on the Commencement Date 1525 of the Agreement. At a minimum, Contractor shall accept the following materials as Food Scraps:
1526
1527 • All kitchen and table food waste, and animal or vegetable waste that attends or results from 1528 the storage, preparation, cooking or handling of food stuffs; 1529 • All vegetables and fruit materials;
1530 • All meat, poultry, fish and shellfish scraps (including bones); 1531 • All organic bakery, pasta, beans, rice, egg shells, and cheese products and by-products; 1532 • Coffee filters and grounds;
1533 • Napkins;
1534 • Paper towels;
1535 • Paper plates and paper cups;
1536 • Pizza boxes;
1537 • All waxed cardboard; and,
1538 • All wooden crates used in the foodservice industry. 1539
1540 In addition to Food Scraps and Yard Trimmings, Contractor shall Collect wood pallets and sawdust 1541 (untreated/unpainted) as part of the Organic Materials Collection program. 1542
1543 5.3.2 Single-Family Premises
1544
1545 Contractor shall Collect Source Separated Organic Materials from Single-Family Premises once every 1546 week. The Organic Materials shall include both Yard Trimmings and Food Scraps. 1547
1548 Contractor shall provide each Customer with one Cart to be used for storage and Collection of Yard 1549 Trimmings and Food Scraps. The Contractor shall provide each Customer a 96-gallon Cart unless the 1550 Customer requests a smaller Cart size, in which case, the Contractor shall provide a 20-, 35-, or 64-gallon 1551 Cart. Customers shall have the option of subscribing to additional Organic Materials Cart(s), and 1552 Contractor shall charge the Customers for such service at Rates not to exceed City-approved Maximum 1553 Rates. Contractor shall Collect Carts from the Curb unless Occupant is physically unable to place the 1554 Container at the Curb. In such event, Contractor shall Collect Carts from an alternative service location 1555 (such as the side yard or backyard).
1556
1557 Contractor shall provide each new Single-Family Customer with a Kitchen Pail for use in the kitchen 1558 suitable for the collection and storage of Food Scraps. In addition, Contractor shall provide a replacement 1559 Kitchen Pail upon Customer’s request for a lost or broken pail, provided that Customers are only entitled 1560 to one replacement every two years. The Kitchen Pail shall have a capacity of 1.5 to 2.5 gallons, a plastic 1561 swing handle and hinged lid, Contractor must submit Kitchen Pail order (including material and design 1562 specifications, colors and identification marks) to City for City’s written approval prior to submitting the 1563 order to the manufacturer.
1564
1565 5.3.3 Parcelized Multi-Family Premises
1566
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1567 Contractor shall provide the Collection services described in this Section 5.3.3 no later than July 1, 2025 1568 to all Parcelized Multi-Family Premises. Contractor shall Collect Source Separated Organic Materials from 1569 Parcelized Multi-Family Premises once every week on the same Collection day as Solid Waste Collection. 1570
1571 Contractor shall provide each Customer with one (1) Cart to be used for storage and Collection of Source 1572 Separated Organic Materials. Contractor shall provide each Customer a 35-gallon Cart unless the 1573 Customer requests a smaller or larger Cart size, in which case, the Contractor shall provide a 20-, 64- or - 1574 96 gallon Cart. Customers shall have the option of subscribing to additional Organic Materials Cart(s), and 1575 Contractor shall charge the Customers for such service at Rates not to exceed City-approved Maximum 1576 Rates. Contractor shall Collect Carts from the Curb unless Occupant is physically unable to place the 1577 Container at the Curb. In such event, Contractor shall Collect Carts from an alternative service location 1578 (such as the side yard or backyard). Contractor shall Collect Source Separated Organic Materials from 1579 Parcelized Multi-Family Premises weekly on the same collection day as Solid Waste Collection. Contractor 1580 shall Collect Organic Materials at the designated location agreed upon by Contractor and Customer. 1581
1582 Contractor shall provide each new Parcelized Multi-Family Customer with a Kitchen Pail when new Carts 1583 are delivered to commence Collection services. City shall be responsible for purchasing the Kitchen Pails 1584 that will be provided to each Parcelized Multi-Family Premise by Contractor when new Carts are delivered. 1585
1586 Contractor shall be responsible for purchasing replacement Kitchen Pails and Contractor shall provide a 1587 replacement Kitchen Pail upon Customer’s request for a lost or broken pail, once every two (2) years, 1588 unless City authorizes distribution of additional replacements. The Kitchen Pails procured and distributed 1589 by Contractor shall be approved in advance by the City in writing. 1590
1591 5.3.4 Non-Parcelized Multi-Family Premises
1592
1593 A. General. Contractor acknowledges that it shall provide Organic Materials Collection services for 1594 all Non-Parcelized Multi-Family Customers.
1595
1596 B. Minimum Collection Requirements. Contractor shall provide the Collection services described in 1597 this Section 5.3.3.C no later than January 1, 2026. Non-Parcelized Multi-Family Customers shall 1598 have the option of subscribing to Organic Materials Collection services, and Contractor shall 1599 charge Customers for such service at Rates not to exceed City-approved Maximum Rates. 1600 Contractor shall Collect Source Separated Organic Materials from Non-Parcelized Multi-Family 1601 Premises that have subscribed to Organic Materials Collection service as frequently as scheduled 1602 by Customer up to five (5) days per week (Monday through Friday), but not less than once every 1603 week. The Organic Materials shall include both Yard Trimmings and Food Scraps. Contractor shall 1604 provide each Customer with a choice of a 20-, 35- or 64-gallon Cart, or Bins with capacities ranging 1605 from 1 to 3 cubic yards, as requested by Customer (where the 20-gallon Cart is only available for 1606 Parcelized Multi-Family Premises in which each unit has individual service). Contractor shall 1607 Collect Organic Materials at the designated location agreed upon by Contractor and Customer. 1608
1609 5.3.5 Commercial Premises
1610
1611 A. General. Contractor acknowledges that it shall comply with requirements of SB 1383 and the 1612 Alameda County Waste Management Authority Ordinance 2021-01 (StopWaste Organics 1613 Reduction and Recycling - ORRO), and City of Union City Municipal Code Section 7.24 (Organics 1614 Reduction and Recycling Ordinance - ORRO). Contractor shall be prepared to provide Organic City Council/RSA Agenda 295 Tuesday, May 27, 2025
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1615 Materials Collection services for Commercial Customers that must comply with SB 1383, 1616 StopWaste ORRO, and City ORRO.
1617
1618 B. Requirements. Commercial Customers shall have the option of subscribing to Organic Materials 1619 Collection services, and Contractor shall charge Customers for such service at Rates not to exceed 1620 City-approved Maximum Rates. Contractor shall Collect Organic Materials from Commercial 1621 Premises that have subscribed to Organic Materials Collection service as frequently as scheduled 1622 by Customer, but not less than once per week. As of the Commencement Date, Contractor shall 1623 offer to Customers and provide Food Scraps Collection services up to six (6) days per week 1624 Mondays through Saturday. Contractor may require that Customers must subscribe to a 1625 minimum service level of five (5) times per week Collection in order to be eligible for Collection 1626 on Saturday. Upon City request, Parties shall meet and confer to discuss Customer service levels 1627 and potential need to expand Collection service to six (6) days per week. 1628
1629 The Contractor shall provide Organic Materials Collection services to any Commercial Premises 1630 that requests services. Contractor shall allow Commercial Customers to select a Collection service 1631 method that best suits the needs of its Premises. Specifically, the Contractor shall offer the 1632 following choices to Commercial Customers:
1633
1634 1. Cart or Bin service. Contractor shall allow Commercial Premises to use Cart(s) or Bin(s) for 1635 Organic Materials Collection. Contractor shall provide each Customer with a choice of one 1636 or more 64-gallon Carts or Bins with capacity ranging from 1 to 3 cubic yards. 1637
1638 2. Centralized Cart or Bin service. Contractor shall allow Commercial Premises to use Cart(s) 1639 or Bin(s) for Organic Materials Collection, which are shared by the Occupants of two or more 1640 Commercial Premises. In such case, Contractor shall provide one or more Carts or Bins to 1641 such Premises as requested by Customer(s) provided that no less than 96 gallons of Container 1642 capacity for Organic Materials is provided for every four Commercial Premises. 1643
1644 3. Permanent Drop Boxes and Compactors. Contractor shall allow Premises to use Drop Boxes 1645 or Compactors for Organic Materials Collection to meet Customer’s permanent needs. In 1646 such case, Contractor shall provide Premises with a choice of Container capacities ranging 1647 from 6 to 40 cubic yards. Contractor shall offer Customers the option to purchase or lease 1648 Compactors through Contractor or an outside vendor. 1649
1650 4. New Carts and Refurbished Bins. Contractor shall provide each Customer that subscribes to 1651 Cart collection service with a new 20-, 35-, 64-, or 96-gallon Cart as requested by the 1652 Customer. The Organic Materials Carts shall be green in color, with the specific color and 1653 layout of hot stamp content and signs approved by the City in advance in writing Contractor 1654 shall provide a new Cart that is the same size as the Customer’s current Cart in service, unless 1655 the Customer requests a different Cart size. The new Organic Materials Carts shall be 1656 provided to all Customers commencing April 2025 and be completed by November 14, 2025, 1657 and the Carts currently in service shall be removed from all Commercial Premises when the 1658 new Carts are delivered. Contractor shall refurbish (new paint, new signs, etc.) all Bins. The 1659 refurbished Organic Materials Bins shall be green in color, with the specific color and layout 1660 of stenciling and signs approved by the City in advance in writing. Contractor shall ensure 1661 that Customers subscribed to level of collection service remains uninterrupted during the 1662 recovery and deployment of the refurbished Bins.

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1663
1664 C. Program Promotion/Sales. Contractor agrees to use its Commercial sales staff to make initial 1665 Customer contacts to promote the Commercial Organic Materials Collection service to new 1666 participants. If the City, Recyclable Materials Cart Contractor or a third-party acting as an agent 1667 of the City recruits new participants in accordance with the terms of this Agreement, Contractor 1668 agrees to use its best efforts to start new services or to implement service level adjustments 1669 within five (5) business days of receipt of the request. 1670
1671 D. Program Marketing and Outreach to Customers. Contractor shall promote the Commercial 1672 Organics Materials program with the objective of subscribing all Customers as required by SB 1673 1383. Contractor’s recycling coordinator shall seek to identify new Customers to commence 1674 Organics collection service through constant account profiling, driver referrals, business referrals, 1675 new Solid Waste service start referrals, review of Commercial Solid Waste service volumes, and 1676 StopWaste and City referrals.
1677
1678
1679 Shortly before and following the start of Organic Materials Collection service for a new Customer, 1680 Contractor shall provide an average of three training appointments per Customer, including one 1681 initial program orientation and two follow-up appointments. Contractor plans an average of four 1682 hours per Customer for new participants. The recycling coordinator shall follow through during 1683 all facets of the program promotion/sales, education, and on-going service of the participating 1684 Customers.
1685
1686 Contractor shall plan and implement an aggressive, multi-faceted outreach program to educate 1687 Commercial Customers and encourage Customer participation in the Organic Materials Collection 1688 program. Exhibit 7.1, Public Education and Technical Assistance, provides additional information 1689 on Contractor’s outreach and education program.
1690
1691 5.4 REPORTING AND ASSISTANCE WITH SURVEYS AND STUDIES 1692
1693 A. Reporting. In addition to the monthly reporting requirements specified in Sections 9.4.C and 1694 9.4.G, the City may request the following information from the Contractor and Contractor agrees 1695 to provide such information within thirty (30) days of City request:
1696
1697 • Types and weight of Contamination in the Organic Materials; 1698 • Notes reasonably discussing other issues and relevant features of the Parcelized Multi1699 Family, Non-Parcelized Multi-Family, and Commercial Organics Materials Collection 1700 program; and,
1701 • Recommendations to the City for additions or changes to the Parcelized Multi-Family, Non1702 Parcelized Multi-Family, and/or Commercial Organic Materials Collection program. 1703
1704 B. Surveys and Studies. The City may request, and the Contractor shall reasonably facilitate 1705 arrangement for surveys of incoming Organic Materials to determine the Contamination Levels 1706 and percentages of material bagged by Customers, and perform waste composition analysis 1707 relevant to the program.
1708
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1709 5.5 SINGLE-FAMILY AND PARCELIZED MULTI-FAMILY CLEAN-UP EVENT SERVICES 1710 Contractor shall provide each Single-Family and Parcelized Multi-Family Customer with two on-call Clean1711 Up Events per year. Each Customer shall place all Yard Trimmings, Traditional Recyclable Materials, 1712 Salvageable Materials, and Bulky Items to be Collected by Contractor Curbside, and each Customer shall 1713 be limited to placing no more than four cubic yards of materials per event Curbside for Collection. 1714 Contractor will schedule a Clean-Up Event for a given Customer on that Customer’s regularly scheduled 1715 Collection day, no more than twenty-one (21) calendar days from the Customer’s request for a Clean-Up 1716 Event. Contractor may provide additional Clean-Up or Bulky Item Pick-Up Events for a Customer beyond 1717 two per year, and in such event shall be entitled to charge the Customer for such service at a Rate not to 1718 exceed City-approved Maximum Rate. In the event Contractor fails to comply with the Bulky Item Pick1719 Up scheduling requirements in this Section, the City may assess Liquidated Damages in accordance with 1720 Section 13.5.
1721
1722 A. General Requirements. Contractor shall provide each Single-Family Premises and Parcelized 1723 Multi-Family Premises with two on-call Clean-Up Events per year. The Contractor shall promote, 1724 manage, staff, and operate the Clean-Up Events.
1725
1726 The City shall approve all advertisements or public announcements related to the Clean-Up 1727 Events. Contractor shall promote the events through the following methods: (i) mailing outreach 1728 materials to the Customers and/or promoting the events through the quarterly Residential 1729 newsletters required in Exhibit 7.1; (ii) advertising in a minimum of two local area newspapers; 1730 and (iii) advertising or promoting through social media and electronic publications. 1731
1732 B. Accepted Materials. During each Clean-Up Event, Single-Family and Parcelized Multi-Family 1733 Customers may deliver and Contractor shall accept the items listed below:
1734
1735 1. Major Appliances limited to no more than one of each type per event; 1736 2. Bulky Items provided that tires shall be limited to four tires per event; 1737 3. Yard Trimmings including branches and clean unfinished wood that are bagged or boxed; 1738 4. Traditional Recyclable Materials that are bagged or boxed; 1739 5. Salvageable Materials for donation, which are clean and in good condition, including: wood 1740 furniture, dishes, pots and pans, toys, books, cell phones, and small appliances and 1741 electronics that work;
1742 6. E-Scrap; and,
1743 7. Non-putrescible Solid Waste.
1744
1745 Contractor may reject: Liquids or sludges, materials which exceed five feet in length; painted or 1746 stained wood; Construction and Demolition Debris; Hazardous Waste; or Infectious Waste. 1747 Contractor may reject a single item that weights more than 150 pounds (excluding Major 1748 Appliances) unless Customer has paid an additional fee for service (at a Rate not to exceed City1749 approved Maximum Rates), and may reject un-containerized Discarded Materials. 1750
1751 C. Participants. Contractor shall verify that the Person requesting the service is the Customer or 1752 Customer’s tenant at a Single-Family and Parcelized Multi-Family Premises in the City. 1753
1754 D. Recycling and Reuse. Contractor shall separate E-Scrap, Salvageable Materials, Traditional 1755 Recyclable Materials, and Yard Trimmings during Collection to allow for reuse, Recycling, or 1756 Processing. Customers may designate materials as donation items, which when appropriate and City Council/RSA Agenda 298 Tuesday, May 27, 2025
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1757 feasible shall be brought by Contractor to Contractor’s corporation yard. Contractor will work 1758 with Goodwill Industries or another non-profit organization to select and sort out Recyclable and 1759 Salvageable Materials from items brought to Contractor’s corporation yard. Marketing of 1760 Salvageable Materials that are designated for reuse by the non-profit organization will include 1761 clothing, toys, housewares, linens, wood furniture, tables, chairs, and books. Contractor shall 1762 transport materials that are not desired by the non-profit organization to the Designated Transfer 1763 Station for transfer, recovery, Processing, and/or Disposal. Due to the unknown quantities of E1764 Scrap, Salvageable Materials, Traditional Recyclable Materials, and Yard Trimmings Collected as 1765 well as the types of items community organizations and others will take for reuse or Recycling at 1766 any point in time, the Contractor shall use reasonable business efforts to maximize Diversion of 1767 material Collected during the Clean-Up Events.
1768
1769 E. Handling Major Appliances. Major Appliances shall be delivered to the Designated Transfer 1770 Station. Major Appliances shall be handled in accordance with Applicable Law. Any changes to 1771 such regulations made after the Effective Date shall be addressed as though they are a Change in 1772 Law in accordance with Section 11.4.
1773
1774 F. Collection Method. Contractor shall use two Collection vehicles to Collect materials during Clean1775 Up Events with the purpose of providing one flat-bed Collection vehicle for Collection of Major 1776 Appliances, E-Scrap, Salvageable Materials, Recyclable Materials, Yard Trimmings, and hard-to1777 handle materials, and one rear-loading packer Collection vehicle for Collection of Solid Waste. 1778
1779 G. Facilities. Except as provided in Sections 5.5.D and 6.5, Contractor shall deliver all Solid Waste, 1780 Bulky Items, E-Scrap, and Major Appliances Collected during the Clean-Up Events to the 1781 Designated Transfer Station. Contractor shall deliver Recyclable Materials and Yard Trimmings to 1782 the Approved Recyclable Materials Processing Site and to the Approved Composting Site, 1783 respectively. Contractor shall deliver Salvageable Materials to a Re-Use Vendor or other party 1784 approved by the City.
1785
1786 5.6 NON-PARCELIZED MULTI-FAMILY CLEAN-UP EVENT SERVICES 1787
1788 A. General. Contractor shall provide Non-Parcelized Multi-Family Premises, upon Customer request, 1789 with Clean-Up Event services including Collection of Bulky Items. Contractor shall focus on 1790 educating the property manager about strategies for Diverting Salvageable Materials through 1791 services of Re-Use Vendors, offer Bins and Drop Boxes for Collection of Recyclable Materials (such 1792 as cardboard and E-Scrap), and offer Drop Boxes for Solid Waste and Bulky Item Collection. 1793 Contractor shall charge Customers for the Clean-Up Events at Rates not to exceed City-approved 1794 Maximum Rates for temporary Bin and/or Drop Box service. 1795
1796 B. Promotion of Re-use Opportunities. When Contractor receives a request for Clean-Up Services 1797 from a Non-Parcelized Customer, Contractor’s Customer service representative shall educate the 1798 Customer about options available for Diverting Salvageable Materials and strategies for working 1799 with tenants and Re-use Vendors. Contractor shall provide Customer with contact information 1800 for local Re-Use Vendors so that Customer can arrange for the Re-Use Vendor to Collect 1801 Salvageable Material.
1802
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1803 C. Collection of Recyclable Materials. Contractor’s Customer service representative shall work with 1804 the Customer to structure a Clean-Up Event that allows for tenants to Source Separate Recyclable 1805 Materials for separate Collection in a Bin or Drop Box. Contractor shall Collect the Recyclable 1806 Materials and transport the materials to the Approved Recyclable Materials Processing Site. 1807
1808 D. Collection of Solid Waste, Bulky Items, Major Appliances. Contractor shall provide a Drop Box 1809 at the Multi-Family Premises for Solid Waste and Bulky Items. Contractor shall Collect the Solid 1810 Waste and Bulky Items and Transport all Collected materials to the Designated Transfer Station, 1811 except as provided in Section 6.5. Customer may place Major Appliances adjacent to the Drop 1812 Box and Contractor shall Collect the appliances with a flat-bed truck and deliver the appliances to 1813 the Designated Transfer Station, except as provided in Section 6.5. 1814
1815 E. Containers. Within seven (7) Business Days of Customer request, Contractor shall provide one 1816 20- or 30-cubic yard capacity Drop Box for Solid Waste and Bulky Item Collection to each Non1817 Parcelized Multi-Family Customer and one Drop Box or Bin for Recyclable Materials Collection. 1818 Contractor shall place the Containers on Customer’s property at a Customer-selected location, 1819 which is accessible by Contractor’s vehicle, or, Contractor shall place Containers Curbside if the 1820 property manager has secured a permit from the City approving such placement for special 1821 circumstances. The Container placement location shall be mutually agreed upon by Non1822 Parcelized Multi-Family Customer and Contractor. The Containers provided for the purpose of 1823 the Clean-Up Event shall be covered and locking when Container inventory permits and when 1824 Customer requests this type of Container. Contractor shall remove Containers from the premises 1825 within three (3) Business Days of delivery or less subject to mutual agreement by Contractor and 1826 the Customer. In the event Contractor fails to comply with the Bulky Item Pick-Up Container 1827 delivery and pick-up requirements in this Section, the City may assess Liquidated Damages in 1828 accordance with Section 13.5.
1829
1830 F. Service Frequency. Contractor shall provide the Clean-Up Event services as frequently as 1831 requested by Customer.
1832
1833 G. Costs. Contractor shall bill the Non-Parcelized Multi-Family Customers for each Drop Box 1834 delivered to the Customer for the Drop Box Clean-Up service at Rates not to exceed City-approved 1835 Maximum Rates, which include a Maximum Rate for open-top Drop Boxes and for covered, locking 1836 Drop Boxes.
1837
1838 H. Accepted Materials. Customers shall be permitted to place the following material types in the 1839 Drop Boxes: non-putrescible Solid Waste, Source Separated Recyclable Materials, Source 1840 Separated Organic Materials, and Bulky Items. Contractor may reject: E-Scrap Items, liquids or 1841 sludges, materials of any length provided they fit inside the Container; painted or stained wood; 1842 Construction and Demolition Debris; Hazardous Waste; or Infectious Waste. Contractor may 1843 reject Major Appliances unless Customer has paid an additional fee for service at a Rate not to 1844 exceed City-approved Maximum Rates.
1845
1846 I. Other Requirements.
1847 1. Contractor shall provide the service to the Customer within seven (7) Business Days of 1848 Customer request. Actual date of service shall be mutually agreed upon by Customer and 1849 Contractor.

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1850 2. Contractor shall provide Customers with brochures listing accepted and prohibited materials 1851 in sufficient quantity for distribution to each tenant unit on the premises. The brochure shall 1852 be made available by Contractor by mail, email, or via Contractor’s website. 1853 3. Contractor shall promote the availability of Clean-Up Collection service on its website, twice 1854 per year in quarterly newsletters and in Multi-Family manager informational packets. 1855 4. On a monthly basis, Contractor shall report the number of Non-Parcelized Multi-Family 1856 Clean-Up Events and Tons Collected at each event.
1857
1858 J. Tenant Notification. Non-Parcelized Multi-Family Customers will be responsible for 1859 communicating clean-up dates, location, and distributing brochures with a list of accepted and 1860 prohibited items to tenants.
1861
1862 5.7 CITY COMMUNITY COMPOST HUB
1863 Contractor shall annually deliver to the City’s Community Compost a minimum of four-hundred (400) tons 1864 of SB 1383 compliant compost at no additional cost to the City per Rate Year upon request by City. 1865 Contractor’s annual four-hundred (400) ton compost delivery obligation shall accrue annually if the City 1866 orders less than four-hundred (400) tons in any year. City shall provide Contractor notice of the volume 1867 of compost required for each delivery and the date of delivery. City shall provide Contractor two (2) 1868 business days notice for each requested delivery of compost. At the City’s sole discretion, it may direct 1869 Contractor to deliver compost to a location different than the Community Compost Hub within Union City 1870 for the purpose of the City’s Public Works Department to spread the compost at that location. The City 1871 may purchase additional tons of compost exceeding the four-hundred (400) tons each rate year at an 1872 initial cost of forty-eight dollars ($48.00) per ton which includes delivery. The cost of the supplemental 1873 compost purchased will be increased or decreased annually as necessary to reflect a reasonable market 1874 rate for the compost material and transportation based on a survey of three (3) compost producers agreed 1875 to by City and Contractor.
1876
1877 Contractorshall directly invoice City for compost exceeding the annual four-hundred (400) tons allocation, 1878 unless the City’s accrual of past compost that was not requested is used. Contractor shall be responsible 1879 for all aspects of coordinating the delivery of compost and shall provide to the City within two (2) business 1880 days after the delivery of compost the SB 1383 required documentation of said compost delivery, 1881 including but not limited to, a document certifying that the compost delivered was SB 1383 compliant, 1882 the specific compost product specifications, and the volume and weight of the compost delivered. 1883
1884 5.8 HOLIDAY TREE COLLECTION
1885 Annually, for a three (3) week duration commencing on the next regular service day after December 25, 1886 Contractor shall provide Curbside Collection of holiday trees for all Residential Premises as part of the 1887 Organic Materials Collection services required under Section 5.3. This obligation shall extend to holiday 1888 trees, which are flocked or heavily tinseled which shall be treated as Solid Waste. Contractor shall also 1889 accept holiday trees delivered by City Residents and Multi-Family property owners to a drop-off location 1890 at the Recyclable Materials Cart Contractor’s facility, 33377 Western Avenue, Union City, California, or 1891 another location approved by the City.
1892
1893 Contractor shall Transport Holiday trees to, and Process trees at, the Approved Composting Site, with the 1894 exception of flocked or heavily tinseled trees that Contractor shall Transport to the Designated Transfer City Council/RSA Agenda 301 Tuesday, May 27, 2025
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1895 Station for Disposal. All holiday trees shall be processed for use as Compost, mulch, or soil amendment 1896 and none shall be deposited for Disposal or used for Beneficial Reuse Purposes. 1897
1898 5.9 COLLECTION FROM CITY FACILITIES
1899
1900 A. General. Contractor shall Collect Solid Waste and Organic Materials from City locations and at 1901 the service levels identified in Exhibit 5.9 and shall Collect Traditional Recyclable Materials from 1902 City locations using Bins at the service levels identified in Exhibit 5.97. In addition, Contractor 1903 shall Collect Solid Waste from public litter cans along City streets as identified in Exhibit 5.9. 1904 Contractor shall also Collect bagged Solid Waste pulled from public litter cans from collection 1905 points in City parks Mondays, Wednesdays, and Fridays as identified in Exhibit 5.9. Prior to 1906 Contractor’s Collection of the bagged Solid Waste in City parks, the City shall be responsible for 1907 removing the bagged solid waste from each public litter can on Mondays, Wednesdays, and 1908 Fridays, inserting an empty plastic bag into each public litter can, and placing the bagged Solid 1909 Waste at one collection point in the park for the Contractor’s removal. Contractor shall provide 1910 and maintain Containers for the City’s use with the exception of the public litter cans that shall be 1911 provided and maintained by the City. Note that the City may choose to use Carts for Recyclable 1912 Materials Collection service, and, in such case, the Recyclable Materials will be Collected by the 1913 Recyclables Materials Cart Contractor.
1914
1915 B. City Right to Modify Service Levels. During the Term of the Agreement, the City reserves the 1916 right to add or remove City facilities in Exhibit 5.9 and to change the service level requirements 1917 identified in Exhibit 5.9. In addition, the City reserves the right to require that Contractor Collects 1918 Traditional Recyclable Materials from public recycling cans if the City locates public Recycling cans 1919 along City streets or in City parks during the Term of the Agreement. 1920
1921 C. Tonnage Allocation. Contractor may integrate Collection of Solid Waste and Organic Materials 1922 from City facilities with other Collection services, provided that Contractor attributes Tonnage 1923 Collected from City facilities separately from other Customers. 1924
1925 D. Cost of Service. Contractor shall provide the services required by this Section at no additional 1926 cost to the City.
1927
1928 5.10 COLLECTION FROM SPECIAL EVENTS
1929 Contractor provide to the City at no additional cost 30-cubic-yard (or other size Drop Boxes as requested 1930 by the City) Drop Boxes for special events and Collect Solid Waste, Recyclable Materials, and/or Organic 1931 Materials deposited in such Drop Boxes. The special events shall be as selected by the City, and the 1932 Contractor’s annual service obligation for the delivery and collection of the Drop Boxes for special events 1933 does not exceed thirty (30) Drop Box pulls per year. Contractor shall have employee(s) at each event to 1934 keep all Collection points tidy, to empty or exchange Containers as the need arises, and to respond to 1935 overages or spills. Contractor shall prepare and distribute information to the public during such events 1936 describing the Collection options available and promoting Recycling. The Contractor shall document the 1937 Tonnage of material Collected during each event and report it to the City upon the City’s written request. 1938
1939 Contractor shall use reasonable business efforts to provide covered, locking Drop Boxes to fulfill the 1940 special event requirements in this Section 5.10.

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1941
1942 Contractor shall provide the services required by this Section at no additional cost to the City. 1943
1944 5.11 MULTI-FAMILY ORGANICS COLLECTION PROGRAM
1945 All Multi-Family Premises receiving Solid Waste collection service must receive weekly collection of the 1946 equivalent volume of at least one (1) thirty-two (32) gallon Organic Materials Cart per Customer included 1947 in the service rate. The actual configuration of Organic Materials container sizes to be provided will be 1948 based on the total equivalent volume and configured in a manner determined by the Customer in 1949 consultation with Contractor. Contractor may charge for Organic Materials Collection as set forth in Rates 1950 approved by the City for Multi Family Organic Materials service greater than the base thirty-two (32) 1951 gallon Organic Materials Cart.
1952
1953 This service will be provided as deemed necessary and determined between Contractor and the Customer, 1954 but such service must be received no less than one (1) time per week with no exception for Holiday(s) as 1955 set forth herein, except that collection service scheduled to fall on a Holiday may be rescheduled within 1956 forty eight (48) hours as long as the minimum frequency requirement is met. Service may be provided by 1957 Bin or Cart at the option of the Customer. The size of the Container and the frequency (above the 1958 minimum) of Collection will be determined between the customer and Contractor. However, size and 1959 frequency must be sufficient to provide that no Organic Material needs to be placed outside the 1960 Container. Customers may own and provide their own Compactor provided that the Customer is 1961 completely responsible for its proper maintenance, and such Compactor is of a type that is compatible 1962 with Contractor's equipment. All other Containers used by Customers must be owned and supplied by 1963 Contractor.
1964
1965 5.12 ABANDONED WASTE NOTIFICATION AND COLLECTION
1966 Contractor shall direct its Collection vehicle drivers to note (i) the addresses of any Premises at which the 1967 driver observes that Solid Waste, Recyclable Material, and/or Organic Material is accumulating; and (ii) 1968 the address, or other location description, at which Solid Waste, Recyclable Material, and/or Organic 1969 Material has been dumped in an apparently unauthorized manner. Contractor shall deliver the address 1970 or description to City within five (5) Business Days of such observation. 1971
1972 In response to the City’s request, Contractor shall Collect abandoned Solid Waste, Recyclable Materials, 1973 and/or Organic Materials at locations specified by the City. Such service shall be provided by Contractor 1974 at no charge to the City for up to twenty-four (24) instances per Rate Year, where an instance involves 1975 Collection of an average of ten (10) cubic yards per pick-up location. If the City wants more than twenty1976 four (24) instances to be serviced per Rate Year, the City and Contractor shall meet and confer to discuss 1977 the additional service needs. In the event the City requests that Contractor provide collection service for 1978 fewer than twenty-four (24) abandoned waste collection events in a calendar year, the remaining balance 1979 shall accrue to the following year and this balance shall continue to accrue up to a maximum of forty-eight 1980 (48) collections services.
1981
1982 Contractor shall provide the services required by this Section at no additional cost to the City..

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1983 ARTICLE 6.
1984 PROCESSING AND DISPOSAL
1985 6.1 RECYCLABLE MATERIALS PROCESSING
1986 A. Approved Recyclable Materials Processing Site. Contractor shall Transport and deliver all 1987 Recyclable Materials it Collects in the City to the Approved Recyclable Materials Processing Site, 1988 except as otherwise provided in Section 6.1.B. Contractor shall pay all costs associated with 1989 Transporting to and Processing Recyclable Materials at the Approved Recyclable Materials 1990 Processing Site. Below is information about the Approved Recyclable Materials Processing Site 1991 selected by the Contractor:
1992
1993 • Facility Name: Newby Island Recyclery
1994 • Owner: Browning-Ferris Industries of California, Inc. 1995 • Operator: Browning-Ferris Industries of California, Inc. 1996 • Address: 1601 Dixon Landing Road, Milpitas, CA 95035 1997 • Contact Person and contact information:
1998 Enrique Perez, General Manager
1999 408-586-2281
2000 [email protected]
2001
2002 B. Alternative Recyclable Materials Transfer or Processing Location. Contractor shall Transport 2003 Recyclable Materials it Collects in the City to the Designated Transfer Station or an alternative 2004 Processing location under the following circumstances:
2005
2006 1. Contractor-Requested Change. Contractor may request to use a Recyclable Materials 2007 Processing location that is different from the Approved Recyclable Materials Processing Site. 2008 If Contractor requests such a change, it shall seek written approval from the City Manager 2009 sixty (60) calendar days prior to use of the alternative location and obtain the City’s written 2010 approval no later than ten (10) calendar days prior to use of the location. Upon obtaining 2011 the City’s written approval and subsequent use of the different Processing location, 2012 Contractor’s Compensation will not be adjusted and Contractor shall bear any increased 2013 Transportation and Processing costs associated with a Contractor-initiated change in the 2014 Approved Recyclable Materials Processing Site. Further, Contractor shall guarantee the net 2015 per-Ton Processing Cost specified in Exhibit 11.1.B or shall provide a net per-Ton revenue 2016 (i.e., reduce the net per Ton costs below zero dollars, resulting in a net per-Ton revenue for 2017 Processing services) specified in Exhibit 11.1.B for the use of Processing location(s) different 2018 from the Approved Recyclable Materials Processing Site. 2019
2020 2. City-Directed Change. The City reserves the right to direct Contractor to Transport some or 2021 all Recyclable Materials to the Designated Transfer Station or an alternative Processing 2022 location. The change shall be handled as a City-directed change in scope in accordance with 2023 Section 4.5 and the Parties shall agree on an adjustment to Contractor’s Compensation to 2024 address incremental impacts in Transportation and per-Ton Processing costs and lost 2025 operating profit to the Approved Recyclable Materials Processing Site of Processing the 2026 material at a non-Affiliated facility. If, however, the Designated Transfer Station or 2027 alternative Processing location is owned and/or operated by the Contractor or an Affiliate, City Council/RSA Agenda 304 Tuesday, May 27, 2025
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2028 then the adjustment to Contractor’s Compensation shall not include an adjustment for the 2029 Approved Recyclable Materials Processing Site’s lost operating profit. 2030
2031 3. Emergency Change. If Contractor is unable to use the Approved Recyclable Materials 2032 Processing Site due to an emergency or sudden unforeseen closure of the Approved 2033 Recyclable Materials Processing Site, Contractor may use an alternative Processing location 2034 provided that the Contractor provides verbal and written notice to the City and receives 2035 written approval from the City at least twenty-four (24) hours prior to the use of an 2036 alternative Processing location. The Contractor’s written notice shall include a description 2037 of the reasons the Approved Recyclable Materials Processing Site is not feasible and the 2038 period of time Contractor proposes to use the alternative Processing location. Contractor 2039 shall not be compensated for any increased Transportation and Processing costs and shall 2040 guarantee the net per-Ton Processing Cost specified in Exhibit 11.1.B or shall provide a net 2041 per-Ton revenue (i.e., reduce the net per-Ton costs below zero dollars, resulting in a net per2042 Ton revenue for Processing services) for the use of Processing location(s) different from the 2043 Approved Recyclable Materials Processing Site.
2044
2045 4. Court-Ordered Change. If a court of competent jurisdiction directs City to cause Contractor 2046 to Transport some or all of the Recyclable Materials to the Designated Transfer Station or an 2047 alternative Processing location, the change would be handled as a City-directed change in 2048 scope in accordance with Section 4.5 and the Parties would agree on an adjustment to 2049 Contractor’s Compensation to address incremental impacts in Transportation and per-Ton 2050 Processing costs and lost operating profit to the Approved Recyclable Materials Processing 2051 Site of Processing the material at a non-Affiliated facility. If, however, the Designated 2052 Transfer Station or alternative Processing location is owned and/or operated by the 2053 Contractor or an Affiliate, then the adjustment to Contractor’s Compensation shall not 2054 include an adjustment for the Approved Recyclable Materials Processing Site’s lost operating 2055 profit.
2056
2057 5. Adjustment to Contractor’s Compensation. If a change in Contractor’s Compensation is 2058 warranted pursuant to Sections 6.1.B.2, 6.1.B.3, or 6.1.B.4, the following conditions shall 2059 apply. The adjustment to Contractor’s Compensation for changes in Transportation costs 2060 shall reflect the cost difference associated with the Collection vehicles delivering Recyclable 2061 Materials to the Designated Transfer Station or alternative Processing location rather than 2062 to the Approved Recyclable Materials Processing Site. The adjustment to Contractor’s 2063 Compensation for Processing cost changes shall be calculated as the difference between the 2064 net per-Ton Processing cost at the Approved Recyclable Materials Process Site specified in 2065 Exhibit 11.1.B and the net per-Ton Processing cost at the Designated Transfer Station or 2066 alternative Processing location.
2067
2068 C. Processing Arrangements. For Recyclable Materials Processing service at the Approved 2069 Recyclable Materials Processing Site specified in Exhibit 11.1.B or at alternative facility(ies) 2070 approved pursuant to Sections 6.1.B.1 or 6.1.B.2, Contractor shall secure sufficient capacity to 2071 Process Recyclable Materials Collected under this Agreement and shall cause the Approved 2072 Recyclable Materials Processing Site or alternative facility(ies) to Process and market the 2073 Recyclable Materials. Contractor shall provide the City, upon request, with: 1) documentation 2074 demonstrating the availability of such capacity; and, 2) the name, address and owner/operator of 2075 any transfer station used to deliver materials to such site.

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2076
2077 Contractor shall keep all existing permits and approvals necessary for use of the Recyclable 2078 Materials Processing Site(s) or alternative facility(ies) owned by Contractor or an Affiliate in full 2079 regulatory compliance or confirm that the owner or operator of such facility does so. 2080
2081 D. Transport. The Contractor is responsible for Transporting Collected Recyclable Materials to the 2082 Approved Recyclable Materials Processing Site by directly hauling the materials in the vehicles 2083 that Collect the materials from Customers. If the Contractor plans to change its Transport 2084 method, Contractor shall obtain written approval from the City prior to making the change; pay 2085 all costs; and shall not be reimbursed for any additional costs. The City’s approval shall approve 2086 the Transport method, and the duration the Transport method is approved to occur. 2087
2088 E. Marketing. The Contractor shall be responsible for marketing Recyclable Materials Contractor 2089 Collects in the City, including materials Collected from Commercial Premises and from Single2090 Family and Parcelized Multi-Family during Clean-Up Events. Contractor shall be compensated by 2091 the end users/market place for such Recyclable Materials at not less than fair market value. 2092
2093 Contractor shall prepare and maintain a City-approved marketing plan for all Recyclable Materials 2094 Collected in the City. The plan shall be in place on or before the Commencement Date of this 2095 Agreement. The marketing plan shall fully describe the Contractor’s marketing methods and 2096 approach, targeted primary and contingent markets, pricing policy and assumed salvage value for 2097 each Collected type of Recyclable Material products, and contingency plans if market conditions 2098 are severe.
2099
2100 Upon request, Contractor shall provide proof to the City that all Recyclable Materials Contractor 2101 Collects in the City are marketed for Recycling or reuse in such a manner that materials shall be 2102 considered as Diverted in accordance with the State regulations established by AB 32, AB 939, AB 2103 341, AB 1826, SB 1383, and AB 1594 and in a manner consistent with Alameda County Waste 2104 Management Authority Ordinance 2012-1 requiring multi-family and Commercial Premises to 2105 reduce Disposal of Recyclable Materials and Organic Materials. All Residue from the Processing 2106 activities that is not marketed for use shall be accounted for as Disposal Tonnage at a permitted 2107 Disposal Site. No Recyclable Materials shall be transported to a domestic or foreign location if 2108 Solid Waste Disposal of such material is its intended use. 2109
2110 Annually, Contractor shall provide City with a list of broker/buyers it has used during the 2111 preceding 12 months, if requested by City. If Contractor becomes aware that a broker or buyer 2112 has illegally handled or Disposed of material generated by the City or elsewhere, Contractor shall 2113 immediately inform the City and terminate its contract or working relationship with such party 2114 immediately.
2115
2116 F. Disposal of Recyclable Materials Prohibited. Recyclable Materials may not be Disposed of in lieu 2117 of Recycling the material, without the expressed written approval of the City. If for reasons 2118 beyond its reasonable control, Contractor believes that it cannot Divert the Recyclable Material 2119 from Disposal, then it shall prepare a written request for approval to Dispose of such material. 2120 Such request shall contain the basis for its belief (including, but not limited, to supporting 2121 documentation), describe the Contractor's efforts to arrange for the Diversion from Disposal of 2122 such material, the period required for such Disposal, the incremental net cost increases or net 2123 cost savings (giving account to the value from the sale of the Recyclable Materials) resulting from City Council/RSA Agenda 306 Tuesday, May 27, 2025
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2124 such Disposal, and any additional information supporting the Contractor's request. The City shall 2125 consider the Contractor’s request and inform Contractor in writing of its decision within thirty 2126 (30) calendar days. If the City approves such request, any difference in the net cost/revenue of 2127 such Disposal compared to Diversion shall be adjusted in accordance with Section 11.4. 2128
2129 G. Insurance, Indemnifications and Performance Standards. Contractor shall provide, through the 2130 terms and conditions of any contract, agreement, or other understanding with the Approved 2131 Recyclable Materials Processing Site, that provisions of this Agreement (such as insurance 2132 requirements, indemnifications, and processing, marketing performance, and Residue and 2133 Contamination guarantees), can be enforced by the City as an additional insured or third party 2134 beneficiary thereof, in the same manner provided in Article 12, in a manner reasonably 2135 satisfactory to City. If Contractor or an Affiliate owns or operates the Approved Recyclable 2136 Materials Processing Site, Contractor shall include City as an additional insured on liability policies 2137 and defend and indemnify City in a manner satisfactory to City, and provide that any materials 2138 recovery and marketing performance standards or guarantees made to any other facility 2139 customers are made to City as well, including obligations to limit the Residue and Contamination. 2140 Contractor shall demonstrate compliance with the requirements of this paragraph on or before 2141 the Commencement Date of this Agreement.
2142
2143 H. Compliance with Applicable Law. Contractor warrants throughout the Term that the Approved 2144 Recyclable Materials Processing Site selected by Contractor is authorized and permitted to accept 2145 Recyclable Materials in accordance with Applicable Law and is in full compliance with Applicable 2146 Law. Contractor shall: (1) verify compliance for the Approved Recyclable Materials Processing Site 2147 (that neither it nor its Affiliates own) by contacting the local enforcement agency and other 2148 regulatory agencies having jurisdiction over the Approved Recyclable Materials Processing Site at 2149 least quarterly; and (2) upon City direction, shall promptly provide City with copies of the 2150 Approved Recyclable Materials Processing Site’s permits or notice of violations to City. 2151
2152 I. Compliance with Facility Rules. Contractor shall observe and comply with all regulations in effect 2153 at the Approved Recyclable Materials Processing Site and cooperate with the operator thereof 2154 with respect to delivery of Recyclable Materials, including directions to unload Collection vehicles 2155 in designated areas, accommodating operations and maintenance activities, and complying with 2156 Hazardous Waste exclusion programs.
2157
2158 J. Weighing and Record Requirements. Contractor shall ensure that all Recyclable Materials are 2159 weighed upon delivery to the Approved Recyclable Materials Processing Site, and all weight and 2160 related delivery information (including date, time, material type, route and truck number) 2161 (“Delivery Data”) is recorded. Contractor shall provide City the name of any driver of any 2162 identified delivery promptly upon request by City. If vehicle receiving and unloading operations 2163 are recorded on video cameras at any Approved Recyclable Materials Processing Site, Contractor 2164 shall make, or shall use its best efforts to arrange with the facility operator other than Contractor 2165 to make, those videos available for City review during the facility’s operating hours, upon request 2166 of the City.
2167
2168 6.2 ORGANIC MATERIALS PROCESSING
2169
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2170 A. Approved Composting Site. Contractor shall Transport and deliver all Organic Materials Collected 2171 in the City to the Approved Composting Site, except as otherwise provided in Section 6.2.B. 2172 Contractor shall pay all costs associated with transfer (if applicable), Transporting, Processing, 2173 Composting, and marketing Organic Materials. All Organic Materials shall be processed for use 2174 as Compost, mulch, or soil amendment and none shall be deposited for Disposal or used for 2175 Beneficial Reuse Purposes. Below is information about the Approved Composting Site selected 2176 by the Contractor:
2177
2178 • Facility Name: Newby Island Composting Facility
2179 • Owner: Browning-Ferris Industries of California, Inc. 2180 • Operator: Browning-Ferris Industries of California, Inc. 2181 • Address: 1601 Dixon Landing Road, Milpitas, CA 95035 2182 • Contact Person and contact information:
2183 Enrique Perez, General Manager
2184 408-586-2281
2185 [email protected]
2186
2187 B. Alternative Organic Materials Transfer or Processing Location. Contractor shall Transport 2188 Organic Materials it Collects in the City to the Designated Transfer Station or an alternative 2189 Processing location under the following circumstances:
2190
2191 1. Contractor-Requested Change. Contractor may request to use an Organic Materials 2192 Processing location that is different from the Approved Composting Site. If Contractor 2193 requests such a change, it shall seek written approval from the City Manager sixty (60) 2194 calendar days prior to use of the alternative location and obtain the City’s written approval 2195 no later than ten (10) calendar days prior to use of the location. Upon obtaining the City’s 2196 written approval and subsequent use of the different Processing location, Contractor’s 2197 Compensation will not be adjusted and Contractor will bear any increased Transportation 2198 and Processing costs associated with a Contractor-initiated change in the Approved 2199 Composting Site. Further, Contractor shall guarantee the net per-Ton Processing Cost 2200 specified in Exhibit 11.1.B or shall reduce the net per-Ton Processing Cost specified in Exhibit 2201 11.1.B for the use of Processing location(s) different from the Approved Composting Site. 2202
2203 2. City-Directed Change. The City reserves the right to direct Contractor to Transport some or 2204 all Organic Materials to the Designated Transfer Station or an alternative Processing location. 2205 The change would be handled as a City-directed change in scope in accordance with Section 2206 4.5 and the Parties would agree on an adjustment to Contractor’s Compensation to address 2207 incremental impacts in Transportation, Processing, and Composting costs and lost operating 2208 profit to the Approved Composting Site of Processing the material at a non-Affiliated facility. 2209 If, however, the Designated Transfer Station or alternative Processing location is owned 2210 and/or operated by the Contractor or an Affiliate, then the adjustment to Contractor’s 2211 Compensation shall not include an adjustment for the Approved Composting Site’s lost 2212 operating profit.
2213
2214 3. Emergency Change. If Contractor is unable to use the Approved Composting Site due to an 2215 emergency or sudden unforeseen closure of the Approved Composting Site, Contractor may 2216 use an alternative Processing location provided that the Contractor provides verbal and 2217 written notice to the City and receives written approval from the City at least 24 hours prior City Council/RSA Agenda 308 Tuesday, May 27, 2025
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2218 to the use of an alternative Processing location. The Contractor’s written notice shall include 2219 a description of the reasons the Approved Recyclable Materials Processing Site is not feasible 2220 and the period of time Contractor proposes to use the alternative Processing location. 2221 Contractor shall not be compensated for any increased Transportation and Processing costs 2222 and shall guarantee the net per-Ton Processing Cost specified in Exhibit 11.1.B or shall reduce 2223 the net per-Ton Processing Costs specified in Exhibit 11.1.B for the use of Processing 2224 location(s) different from the Approved Composting Site. 2225
2226 4. Court-Ordered Change. If a court of competent jurisdiction directs Contractor to Transport 2227 some or all of the Organic Materials to the Designated Transfer Station or an alternative 2228 Processing location, the change would be handled as a City-directed change in scope in 2229 accordance with Section 4.5 and the Parties would agree on an adjustment to Contractor’s 2230 Compensation to address incremental impacts in Transportation, per-Ton Processing costs, 2231 and per-Ton Composting costs and lost operating profit to the Approved Composting Site of 2232 Processing the material at a non-Affiliated facility. If, however, the Designated Transfer 2233 Station or alternative Processing location is owned and/or operated by the Contractor or an 2234 Affiliate, then the adjustment to Contractor’s Compensation shall not include an adjustment 2235 for the Approved Composting Site’s lost operating profit. 2236
2237 5. Adjustment to Contractor’s Compensation. If a change in Contractor’s Compensation is 2238 warranted pursuant to Sections 6.2.B.2, 6.2.B.3, or 6.2.B.4, the conditions described in 2239 Section 6.1.B.4 shall be applicable, but shall reflect differences related to the change in the 2240 Organic Materials Processing location.
2241
2242 C. Processing Arrangements. For Organic Materials Processing service at the Approved Composting 2243 Site specified in Exhibit 11.1.B or at alternative facility(ies) approved pursuant to Section 6.2.B.1 2244 or 6.2.B.2, Contractor will cause the Approved Composting Site or alternative facility(ies) to 2245 Process, Compost, and market Organic Materials. Promptly upon direction of City, Contractor 2246 shall provide City with documentation satisfactory to City demonstrating availability of Organic 2247 Materials Processing and Composting capacity at the Approved Composting Site. Contractor shall 2248 keep all existing permits and approvals necessary for use of the Approved Composting Site or 2249 alternative facility(ies) owned by Contractor or an Affiliate in full regulatory compliance or confirm 2250 that the owner or operator of such facility does so. 2251
2252 D. Transport. The Contractor is responsible for Transporting Collected Organic Materials to the 2253 Approved Composting Processing Site by directly hauling the materials in the vehicles that 2254 Collected the materials from Customers. If the Contractor plans to change its Transport method, 2255 Contractor shall obtain written approval from the City prior to making the change; pay all costs; 2256 and shall not be reimbursed for any additional costs. The City’s approval shall approve the 2257 Transport method and the duration the Transport method is approved to occur. 2258
2259 E. Disposal of Organic Materials Prohibited. Organic Materials may not be Disposed of in lieu of 2260 Composting the material, without the expressed written approval of the City. If for reasons 2261 beyond its reasonable control, Contractor believes that it cannot Divert the Organic Materials 2262 from Disposal, then it shall prepare a written request for approval to Dispose of such material. 2263 Such request shall contain the basis for its belief (including, but not limited to, supporting 2264 documentation), describe the Contractor's efforts to arrange for the Diversion from Disposal of 2265 such material, the period required for such Disposal, the incremental net cost increases or net City Council/RSA Agenda 309 Tuesday, May 27, 2025
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2266 cost savings (giving account to the value from the sale of the Organic Materials) resulting from 2267 such Disposal, and any additional information supporting the Contractor's request. The City shall 2268 consider the Contractor’s request and inform Contractor in writing of its decision within thirty 2269 (30) calendar days. If the City approves such request, any difference in the net cost of such 2270 Disposal compared to Diversion shall be adjustment in accordance with Section 11.4. 2271
2272 F. Insurance, Indemnifications and Performance Standards. Contractor shall provide, through the 2273 terms and conditions of any contract, agreement, or other understanding with the Approved 2274 Composting Site, that provisions of this Agreement such as insurance requirements, 2275 indemnifications, and processing, composting, marketing performance, and Residue and 2276 Contamination guarantees, can be enforced by the City as an additional insured or third party 2277 beneficiary thereof, in the same manner provided in Article 12, in a manner reasonably 2278 satisfactory to City. If Contractor or an Affiliate owns or operates the Approved Compost Site, 2279 Contractor shall include City as an additional insured on liability policies and defend and indemnify 2280 City in a manner satisfactory to City, and provide that any materials recovery and marketing 2281 performance standards or guarantees made to any other facility customers are made to City as 2282 well, including obligations to limit the Residue and Contamination. Contractor shall demonstrate 2283 compliance with the requirements of this paragraph on or before the Commencement Date of 2284 this Agreement.
2285
2286 G. Compliance with Applicable Law. Contractor warrants throughout the Term that the Approved 2287 Composting Site selected by Contractor is respectively authorized and permitted to accept 2288 Organic Materials in accordance with Applicable Law and is in full compliance with Applicable Law. 2289 Contractor shall: (1) verify compliance for the Approved Composting Site that neither it nor its 2290 Affiliates own by contacting the local enforcement agency and other regulatory agencies having 2291 jurisdiction over those Approved Composting Site at least quarterly; and (2) upon City direction, 2292 shall promptly provide City with copies of the Approved Composting Site’s permits or notice of 2293 violations to City.
2294
2295 H. Compliance with Facility Rules. Contractor shall observe and comply with all regulations in effect 2296 at the Approved Composting Site and cooperate with the operators thereof with respect to 2297 delivery of Organic Materials, including directions to unload Collection vehicles in designated 2298 areas, accommodating operations and maintenance activities, and complying with Hazardous 2299 Waste exclusion programs.
2300
2301 I. Weighing and Record Requirements. Contractor shall ensure that all Organic Materials are 2302 weighed upon delivery to the Approved Composting Site, and all weight and related delivery 2303 information (including date, time, material type, route and truck number) (“Delivery Data”) is 2304 recorded. Contractor shall provide City the name of any driver of any identified delivery promptly 2305 upon request by City. If vehicle receiving and unloading operations are recorded on video 2306 cameras at any Approved Composting Site, Contractor shall make, or shall use its best efforts to 2307 arrange with the facility operator other than Contractor to make, those videos available for City 2308 review during the facility’s operating hours, upon request of the City. 2309
2310 J. Marketing. The Contractor shall be responsible for marketing Organic Materials that Contractor 2311 Collects in the City and Processes. Upon request, Contractor shall provide proof to the City that 2312 all Organic Materials Contractor Collects in the City are marketed for compost or use in such a 2313 manner that materials shall be considered as Diverted in accordance with the State regulations City Council/RSA Agenda 310 Tuesday, May 27, 2025
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2314 established by AB 32, AB 939, AB 341, AB 1826, AB 1383,AB 1594, SB 1383 and in a manner 2315 consistent with Alameda County Waste Management Authority Ordinance 2021-01 requiring 2316 multi-family and Commercial Premises to reduce Disposal of Recyclable Materials and Organic 2317 Materials. All Residue from the Processing activities that is not marketed for use shall be 2318 accounted for as Disposal Tonnage at a permitted Disposal Site. No Organic Materials shall be 2319 transported to a domestic or foreign location if Solid Waste Disposal of such material is its 2320 intended use.
2321
2322 Annually, Contractor shall provide City with a list of broker/buyers it has used during the 2323 preceding twelve (12) months, if requested by City. If Contractor becomes aware that a broker 2324 or buyer has illegally handled or Disposed of Organic Material generated by the City, Contractor 2325 shall immediately inform the City and terminate its contract or working relationship with such 2326 party immediately.
2327
2328 6.3 SOLID WASTE, BULKY ITEM, MAJOR APPLIANCE TRANSFER AND DISPOSAL 2329 Contractor shall Transport all Solid Waste, Bulky Items, and Major Appliances Collected in the City to the 2330 Designated Transfer Station selected by the City.
2331
2332 Except as provided in Section 6.5, the following terms shall apply to Contractor’s Transport of Solid Waste, 2333 Bulky Items, and Major Appliances to the Designated Transfer Station. Contractor shall cooperate with 2334 the operator of the Designated Transfer Station and comply with the operator’s requirements such as 2335 how and where to unload Collection vehicles, respecting operations and construction of new facilities, 2336 cooperating with the operator’s Hazardous Waste Exclusion Program, and so forth. Contractor shall plan 2337 its Collection routes to be compatible with the Designated Transfer Station’s operating hours, which shall 2338 be, at a minimum, Monday through Friday from 5:00 a.m. to 6:00 p.m. and Saturday and Sunday from 2339 8:00 a.m. to 5:00 p.m. All costs associated with Transporting and delivering Solid Waste, Bulky Items, and 2340 Major Appliances to the Designated Transfer Station shall be paid by Contractor. Contractor shall receive 2341 compensation for Solid Waste, Bulky Item, and Major Appliance transfer costs in accordance with Article 2342 11.
2343
2344 The operator of the Designated Transfer Station shall be responsible for transporting Solid Waste, Bulky 2345 Items, and Major Appliances to a Disposal Site approved by the City and arranging for reuse, Recycling, or 2346 Disposal of Bulky Items and Major Appliances.
2347
2348 6.4 RESIDUE AND CONTAMINATION RELATED TO PROCESSING ACTIVITIES 2349
2350 A. General. Residue from the Recyclable Materials and Organic Materials shall be Disposed of by 2351 Contractor at a Disposal Site selected by the operator of the Approved Recyclable Materials 2352 Processing Site and Approved Composting Site unless otherwise directed by the City. As of the 2353 Commencement Date, the Contractor plans to use the Newby Island Landfill for Disposal of 2354 Residue from the Approved Recyclable Materials Processing Site and Approved Composting Site. 2355
2356 B. Residue Level and Contamination Level
2357
2358 1. Contractor shall use commercially reasonable efforts to achieve a Residue Level of less than 2359 ten percent (10%) by weight for Source Separated Recyclable Materials, Source Separated City Council/RSA Agenda 311 Tuesday, May 27, 2025
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2360 Organic Materials, and Source Separated Food Waste Collected in the City. Contractor shall 2361 determine the Residue Level resulting from the Processing of Recyclable Materials, Organic 2362 Materials, and Food Scraps Collected in the City and Processed at the Approved Recyclable 2363 Materials Processing Site and Approved Composting Site using protocols and frequency 2364 mutually agreed upon by the Parties.
2365
2366 2. Notwithstanding the foregoing, the Parties agree that conducting routine testing of the 2367 Residue Level for the materials Processed at the Approved Recyclable Materials Processing 2368 Site and the Approved Composting Site can be a costly effort. For this reason, Parties agree 2369 to monitor Contamination through periodic characterization of materials to manage the 2370 quality of materials Collected and Processed. Exhibit 6.4 describes the Contamination 2371 Characterization process and reporting requirements, and corrective actions, and 2372 consequences if the Contamination Level equals or exceeds twenty percent (20%) by weight 2373 for Recyclable Materials and ten percent (10%) by weight for Organic Materials. 2374
2375 C. Contractor Obligation to Defend Residue Level and Contamination Level. To the maximum 2376 extent permitted by law, Contractor agrees to defend, with counsel and consultants of City's 2377 choosing, at Contractor’s sole cost and expense, and indemnify, save, and hold harmless, the City, 2378 its respective agents, officers, officials, employees and volunteers, from and against any and all 2379 claims, actions, demands, etc. arising out of or related to, in whole or in part, allegations that Solid 2380 Waste (Residue or Contamination) in the Recyclable Materials and/or Organic Materials Collected 2381 by Contractor is not in compliance with performance standards in Section 6.4.B. 2382
2383 D. City Right to Direct Equivalent Residue to Designated Transfer Station 2384
2385 1. General. Upon execution of this Agreement, the City reserves the option to direct Contractor 2386 to Transport Equivalent Residue from the Processing of Recyclable Materials, Organic 2387 Materials, and/or Food Scraps, or any subset thereof such as Parcelized Multi-Family, Non2388 Parcelized Multi-Family, Single-Family, or Commercial to the Designated Transfer Station as 2389 Solid Waste as further described in this Section 6.4.D. Such a change shall be handled as a 2390 City-directed change in scope in accordance with Section 4.5. 2391
2392 2. Compliance Timeframe. The Contractor shall comply within one (1) week of receipt of the 2393 City’s direction to transport Equivalent Residue to the Designated Transfer Station. The 2394 Equivalent Residue shall be hauled on a monthly basis and shall be calculated on a monthly 2395 basis.
2396
2397 1. Calculation of Equivalent Residue. The Equivalent Residue shall be equal to the Residue 2398 Level for each material stream Processed by Contractor (i.e., Source Separated 2399 Recyclable Materials, Source Separated Organic Materials, and Source Separated Food 2400 Scraps, or any subset thereof as directed by the City) multiplied by the monthly Tonnage 2401 of material Processed. For example, if the Residue Level for Single-Family Source 2402 Separated Recyclable Materials is 6.5% and 80 Tons of Single-Family Source Separated 2403 Recyclable Materials were Processed in a particular month, the amount of Equivalent 2404 Residue to be transported to the Designated Transfer Station would equal 5.2 Tons (e.g., 2405 6.5% x 80 Tons).
2406
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2407 2. Compensation. The City and Contractor agree that the Contractor’s compensation for 2408 Equivalent Residue Transportation and Disposal fees at the Designated Transfer Station 2409 shall equal the per-Ton amount specified in the table below subject to an annual 2410 adjustment(s) reflecting the Annual Percentage Change in the CPI as described in Exhibit 2411 11.2.B. Any request for compensation for Equivalent Residue transfer, Transportation, 2412 and Disposal fees shall be processed in a timely manner by the City. 2413
2414 Residue Transport and Disposal Cost (Valid for Rate Year Twenty-One ) 2415
$ per Ton
Transport cost $24.62
Disposal cost at the Designated Transfer Station (e.g., Fremont Recycling and Transfer Station)
$109.95
Avoided Residue Disposal cost at Contractor’s Disposal
Facility (e.g., at Newby Island landfill)
($39.47)
Total $95.10
2416 * Per-Ton costs are inclusive of all Contractor’s costs for transfer, Transportation, and Disposal 2417 of Equivalent Residue including, but not limited to, labor costs, vehicle owning and operating 2418 costs, fuel, depreciation and interest, general and administrative costs, profit, etc. 2419
2420 3. Notice by City. City may exercise this option for Contractor to transport Equivalent 2421 Residue to the Designated Transfer Station at any time during the Term of this 2422 Agreement, provided Contractor receives thirty (30) days written notice. City also 2423 reserves the right to rescind this option at any time, provided Contractor receives seven 2424 (7) days written notice. If at any time City exercises this option, but then subsequently 2425 rescinds said option, this rescission shall not be construed as a waiver of any future right 2426 by the City to re-exercise said option at which point the costs described above shall be 2427 reinstated pursuant to the above terms.
2428
2429 6.5 CONTRACTOR OWNERSHIP AND/OR OPERATION OF DESIGNATED TRANSFER STATION 2430
2431 A. Right to Negotiate Amendments. If, during the Term of this Agreement, the ownership and/or 2432 operation of the Designated Transfer Station is assigned, subcontracted, or otherwise transferred 2433 to Contractor, then the City and Contractor shall meet and confer to determine which provisions 2434 of this Agreement should be modified or amended as provided under Section 16.5. At a minimum, 2435 Contractor agrees that the City has the right to request the following modifications or 2436 amendments to this Agreement.
2437
2438 1. Bulky Items and Major Appliances. The City shall have the right to waive the requirement to 2439 deliver Bulky Items and Major Appliances to the Designated Transfer Station pursuant to 2440 Sections 2.10, 5.5, and 5.6, and, in such case, the City shall have the right to direct these 2441 materials to alternative Processing or Disposal Sites. Contractor may request, for City 2442 consideration, that these materials be delivered to a facility owned and operated by 2443 Contractor or an Affiliate.
2444
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2445 2. Residue Level. The City reserves the right to negotiate modifications to Section 6.4, Residue 2446 and Contamination related to Processing Activities, and Exhibit 6.4, Characterization and 2447 Management of Contamination.
2448
2449 B. Designated Transfer Station Agreements. The Parties acknowledge that operations of the 2450 Designated Transfer Station and acceptance, transfer, and Disposal of materials Delivered to the 2451 Designated Transfer Station, including the terms related to compensation of Contractor for 2452 operating the Designated Transfer Station, are governed by the Agreement Between the Cities of 2453 Newark and Union City and BLT Enterprises of Fremont, LLC for Transfer Services, dated 2454 September 27, 2007 (“Transfer Station Agreement”) and the Cooperation Agreement Between 2455 the City of Fremont and the Cities of Union City and Newark for the use of the Transfer Station 2456 and Recycling Facility located in the City of Fremont, dated October 5, 2007 (“Cooperation 2457 Agreement”). Therefore, if the Parties agree to modify or amend the provisions specified in this 2458 Section 6.5, any such modification or amendment of this Agreement shall not affect, replace, or 2459 supersede the terms of the Transfer Station Agreement or the Cooperation Agreement. 2460
2461 C. Amendments by Mutual Agreement. No provision of this Agreement shall be modified or 2462 amended under this Section 6.5 unless agreed to in writing by the Parties. Any disputes arising 2463 hereunder shall be governed by Article 15 of this Agreement. 2464
2465 6.6 MATERIALS CHARACTERIZATION STUDIES
2466
2467 A. General. The City understands that the Contractor will combine and Process Recyclable Materials 2468 Collected in the City with Recyclable Materials generated in other jurisdictions and will combine 2469 and Process Organic Materials Collected in the City with Organic Materials generated in other 2470 jurisdictions. As a result, the Contractor shall develop and consistently follow a method of 2471 determining the City’s Tonnage of Recyclables Materials and Organic Materials recovered by 2472 material type and the average Residue Level that reflects the unique characterization of the City’s 2473 Recyclable Materials and Organic Materials and the Tonnage of Recyclable Materials and Organic 2474 Collected in the City.
2475
2476 B. Contamination Characterization Methodology and Frequency. The Characterization method for 2477 determination of the Contamination Level of various material streams, which shall be conducted 2478 by Contractor at least semi-annually, is presented in Exhibit 6.4. The Characterization report, 2479 including procedures, calculations, and results, shall be certified by an authorized person or officer 2480 of the owner or operator of the Approved Recyclable Materials Processing Site and Approved 2481 Composting Site.
2482
2483 C. Location. The Characterization studies shall be conducted by Contractor at the Approved 2484 Recyclable Materials Processing Site and Approved Composting Site at no cost to the City. 2485
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2486 ARTICLE 7.
2487 OTHER SERVICES
2488
2489 7.1 PUBLIC EDUCATION AND TECHNICAL ASSISTANCE
2490
2491 A. General. Contractor’s public education and technical assistance program shall focus on providing 2492 information to Customers in accordance with the specific requirements described in this Section 2493 and Exhibit 7.1. Generally information shall be provided to Customers throughout the Term of 2494 the Agreement to educate Customers about the Collection services provided by Contractor and 2495 to provide information on source reduction, reuse, and Recycling opportunities. In addition, 2496 Contractor’s education program shall focus on performing all education, outreach, monitoring, 2497 noticing, and reporting for all Commercial and Multi-Family properties as required by AB 32, AB 2498 939, AB 341, AB 1826, and AB 1594, the Alameda County Waste Management Authority 2499 Mandatory Commercial Recycling Ordinance (Phases 1 and 2), and Alameda County Measure D 2500 adequate Commercial Recycling standards (provided in Exhibit 1). 2501
2502 B. Staffing Plan and Staff Roles. To best achieve the highest possible level of public education and 2503 awareness, the Contractor shall retain on its staff one Recycling Specialist/Public Education 2504 Coordinator who shall dedicate forty (40) hours per week, 52 weeks per year less applicable 2505 vacation and holiday time, exclusively to the coordination and implementation of public 2506 education and outreach activities provided under this Agreement. Duties include, but are not 2507 limited to, business site visits, waste audits, technical assistance, presentations to civic groups, 2508 school assemblies, visits with homeowners associations, and visits to Multi-Family complexes and 2509 other tasks required to promote and explain Recycling, Organics, and other programs offered by 2510 the Contractor. The Recycling Specialist/Public Education Coordinator shall remain receptive to 2511 any additions, modifications or enhancements to the activities and obligations described in this 2512 Section and in Exhibit 7.1 that City staff believes would further progress in promoting Recycling 2513 education
2514
2515 In accordance with Section 8.5.F, failure to provide required full-time Recycling 2516 Specialist/Coordinator shall result in the City's authorization to retain consulting services for an 2517 equivalent number of work hours to provide necessary services at Contractor's sole expense. The 2518 Contractor shall train employees in various classifications to perform the responsibilities for 2519 delivering public education. The training program shall include, but not be limited to, the activities 2520 described Exhibit 7.1.
2521
2522 C. Annual Public Education Plan. Contractor shall prepare, submit, and implement an annual Public 2523 Education Plan that is consistent with the specific requirements described in this Section and 2524 Exhibit 7.1. Contractor shall submit the plan with its Annual Report. The City shall review, discuss, 2525 modify if necessary and approve the plan in a timely manner. The annual outreach plan must 2526 include specific steps designed to increase Diversion and Customer participation in the Residential 2527 and Commercial Organic Materials Collection services and Commercial Recyclable Materials 2528 Collection services, and measure the effectiveness of these efforts. The plan shall outline the 2529 Contractor's public education efforts for the coming Rate Year. The plan shall include a list of 2530 commercial outreach goals (site visits, audits, trainings, etc.). It shall list all events the Contractor 2531 plans to attend and/or organize and the public education it intends to provide at such events (e.g.

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2532 exhibit/information table at Earth Day event, Recycling presentation to homeowner's association, 2533 distribution of educational materials at annual Compost Giveaway Day, etc.). In addition, the plan 2534 shall list each public education piece (e.g., newsletters, brochures, news releases, banners, flyers, 2535 advertisements, etc.) to be prepared, the purpose of the piece, the key subjects(s) to be covered, 2536 and the anticipated date of issuance.
2537
2538 D. Educational Media Requirements. Contractor will design, print, and distribute educational media 2539 that shall include, but not be limited to, brochures, newsletters, targeted direct mailings, door 2540 hangers, notification tags, posters, stickers, advertisements, stickers, and direct contact. 2541
2542 Prior to preparing public education materials, Contractor shall discuss with the City its general 2543 approach to preparing the materials and shall determine if the City has any City-specific guidelines 2544 to be followed and if the City wants the Contractor to work with templates prepared by 2545 StopWaste (also known as the Alameda County Waste Management Authority and the Alameda 2546 County Source Reduction and Recycling Board) and others. Materials shall be printed on paper 2547 containing the highest levels of recycled content material reasonably practical with a minimum 2548 requirement of 30% post-consumer content based on Federal standards. Contractor shall post all 2549 public education materials on its website in a manner that provides Customers easy access to the 2550 materials and the ability to download electronic copies of the documents in a format that is widely 2551 accessible (e.g., Adobe PDF format).
2552
2553 E. School Outreach. Contractor shall visit each of the City’s 13 public schools at least once each year 2554 to teach students about source reduction, reuse, recycling, and composting. 2555
2556 F. Multi-Lingual Education Requirements. To address the multi-lingual diversity of the City, public 2557 education materials shall emphasize the use of visual images and English descriptions 2558 supplemented with text in Spanish and/or other languages as determined by the City. Contractor 2559 shall arrange for review of the multi-lingual materials by a third party to verify the accuracy and 2560 appropriateness of the translations. Upon the request of the City, the Contractor shall provide 2561 information directing the non-English speaking Customer to telephone a Contractor-provided 2562 hotline for help in their native language.
2563
2564 G. City Review and Approval. Contractor shall allow the City to review and approve all public 2565 education materials prior to distribution.
2566
2567 H. Coordination with Other Efforts. Contractor, and its Subcontractors, shall cooperate and 2568 coordinate with the City and the StopWaste (also known as the Alameda County Waste 2569 Management Authority and Alameda Source Reduction and Recycling Board) staff on public 2570 education activities to minimize duplicative, inconsistent, or inappropriately timed education 2571 campaigns. Contractor is aware that StopWaste conducts regional public education and outreach 2572 for schools, self-hauled waste, home composting, Food Scraps programs, etc. 2573
2574 I. Failure to Perform Public Education Obligations. In the event Contractor fails to perform some 2575 or all of the requirements of the public education plan described in this Section and in Exhibit 7.1, 2576 the Contractor shall pay the City Liquidated Damages in accordance with Section 13.5. 2577
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2578 7.2 BILLING
2579
2580 A. Responsibility for Collection Service Billing and Collection of Customer Payment. Contractor 2581 shall be solely responsible for the billing and collecting of payments for the Maximum Rates 2582 established by Contractor and approved by City that Contractor charges for Solid Waste Collection 2583 Services it provides within the Service Area, including the billing of the rates charged for collection 2584 services provided by the Recyclable Materials Cart Contractor. 2585
2586 Commencing Rate Year 21 (FY 2025-2026) Contractor shall commence all billing activity that is 2587 currently performed by the City through the property tax bill. Contractorshall bill all Single-Family 2588 and Parcelized Multi-Family Customers for Collection service provided by Contractor and for the 2589 rates for Recyclable Materials collection service performed by the Recyclable Materials Cart 2590 Contractor. Contractor shall remit to the City each month the percentage of all City Fees revenue 2591 included in Contractor’s Compensation and Maximum Rates for Residential Billings and all of 2592 Recyclable Materials Cart Contractor’s revenues included in Contractor’s bills for recycling 2593 collection service provided by Recyclable Materials Cart Contractor. 2594
2595 Contractor’s monthly remittance of City Fees included in Contractor’s Maximum Rates charged to 2596 Commercial, Multi-Family and Drop-Box Customers shall continue uninterrupted in accordance 2597 with past practice prescribed in the preceding Agreement. The City shall continue to receive one2598 twelfth (1/12) of the calculated City Fees included in said Contractor Billings each month from 2599 Contractor and one-twelfth (1/12) of the Rate Application Review Costs included in Contractor’s 2600 Compensation.
2601
2602 B. Contractor Invoices
2603
2604 1. General. Contractor shall prepare and send out invoices, by either U.S. mail or email, to each 2605 Customer in advance of all services provided by Contractor under this Agreement. Contractor 2606 shall include an online payment option for all Customers regardless of invoice format. If sent 2607 by mail, invoices for each billing period shall be placed in a separate envelope accompanied 2608 by a self-addressed return envelope. All invoices shall include Contractor’s email address, 2609 include directions for payment by check, credit card, or Automated Clearing House (ACH) 2610 debit, and shall include or be accompanied by a complete billing statement showing all 2611 charges and all services provided. Contractor’s online billing portal shall include clear 2612 instructions for how to contact the Contractor if the Customer has questions about an 2613 invoice. City shall have the right to direct Contractor to include messages in invoices and 2614 billing statements upon reasonable notice to Contractor. 2615
2616 2. Single-Family and Parcelized Multi-Family Billing. The Contractor shall be responsible for 2617 billing Single-Family and Parcelized Multi-Family Customers for Collection services 2618 commencing July 1, 2025. Said billing shall include the cost for Recyclable Materials collection 2619 service provided by the Recyclable Materials Cart Contractor. 2620
2621 3. Timing; Frequency. Contractor shall not initiate billing to any Customer sooner than the first 2622 day of the service period of Collection Services covered by the invoice. Contractor shall 2623 invoice Customers once every month for Commercial and Multi-Family Customers and once 2624 every quarter for Single-Family Customers. No invoice shall be due and payable sooner than 2625 the last day of the respective month or quarter for which Solid Waste Collection is provided.

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2626
2627 4. Partial Month Service. If, during a month, a Customer is added to or removed from 2628 Contractor’s Customer list, Contractor shall pro-rate billing to the Customer on a weekly 2629 basis, meaning one-fourth of the applicable Contractor’s Compensation found in Exhibit 1 2630 multiplied by the number of weeks of service provided by Contractor. 2631
2632 5. Overpayments. Contractor shall refund or issue a service credit for overpayments by 2633 Customers no later than 30 days after Contractor discovers or is notified of the overpayment. 2634 Contractor shall refund every overpayment that: (1) exceeds two hundred dollars ($200) or 2635 the amount of Customer’s typical invoice, whichever is less; or (2) is due to the Customer 2636 closing the account prior to the end of the billing period. 2637
2638 5. Parcelized Multi-Family Billing Exception. In the event, the property manager or home 2639 owners’ association representing a group of Parcelized Multi-Family Premises chooses to 2640 receive Collection services in the same manner as Non-Parcelized Multi-Family Premises, 2641 Contractor shall provide such services in the manner requested. Parcelized Multi-Family 2642 Premises may opt out of individual account billing and receive shared Collection services. In 2643 such case, Contractor shall bill and collect payments from Parcelized Multi-Family Customers 2644 in the manner it bills and collects payments from Non-Parcelized Multi-Family Premises. 2645
2646 6. Non-Parcelized Multi-Family Billing. Contractor shall be responsible for billing Non2647 Parcelized Multi-Family a per-unit monthly Recycling Rate and per-unit monthly Organics 2648 Rate (if such Rates are included in Contractor’s Maximum Rates ) whether the Collection is 2649 performed by Contractor or the Recyclable Materials Cart Contractor. All Gross Rate 2650 Revenues received by Contractor from Contractor’s billing of the per-unit monthly Recycling 2651 Rate and per-unit monthly Organics Rate (if applicable) shall be remitted to the City on a 2652 monthly basis in accordance with the payment requirements Section 10.10. In addition, 2653 Contractor shall bill all Non-Parcelized Customers for Solid Waste and Organic Materials 2654 Collection services and, if applicable, for Recyclable Materials Collection service in excess of 2655 the Recyclables Collection service covered by the per-unit Recycling Rate. Contractor agrees 2656 to cooperate with the City to develop appropriate property tax roll and/or Contractor billing 2657 procedures for unusual billing situations associated with a few Non-Parcelized Multi-Family 2658 Customers. Contractor shall be responsible for collection of payments from billed 2659 Customers.
2660
2661 7. Commercial Billing. Contractor shall be responsible for billing all Commercial Customers for 2662 Solid Waste, Recyclable Materials, and Organic Materials Collection services including billing 2663 for Recyclable Materials Cart Collection services provided by the Recyclable Materials Cart 2664 Contractor. Contractor shall be responsible for collection of payments from billed 2665 Customers. As described in Section 8.9, Contractor shall remit monies collected for the 2666 Collection and Processing of Recyclable Materials from Commercial Customers using a 2667 Recyclable Materials Cart to the City on a monthly basis with its payment of fees due to the 2668 City pursuant to Article 10.
2669
2670 8. Mobile Home Billing. Contractor shall work with each mobile home property manager or 2671 home owners’ association (HOA) to develop an approach to providing Collection services and 2672 billing for those services. At the option of the mobile home park, Contractor may be required 2673 to bill each individual mobile home as an individual Customer or bill the property manager City Council/RSA Agenda 318 Tuesday, May 27, 2025
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2674 or HOA. Note that the City’s preference is for one bill to be provided to the property manager 2675 or HOA. Contractor shall be responsible for collection of payments from billed Customers. If 2676 each mobile home is treated as an individual Customer, the Customer shall be exempt from 2677 provision of the Organic Materials Cart service and Contractor shall bill the Customer at a 2678 reduced not-to-exceed the City-approved Maximum Rate. 2679
2680 C. Delinquent Service Accounts. Contractor shall report all Customers whose accounts are 2681 delinquent by more than thirty (30 days) to the City on a monthly basis. 2682
2683 D. Contractor’s Reservation of Legal Rights and Remedies. Notwithstanding any other provision of 2684 this Article, Contractor reserves its right to, and may take such action as is legally available to 2685 Contractor, to collect or cause collection of past due invoice amounts. Contractor may discontinue 2686 Solid Waste, Recyclable, and Organic Material Collection Services to Customers whose accounts 2687 are past-due one-hundred and twenty (120) days where Contractor has fulfilled the requirements 2688 prescribed in the Bad Debt Escalation Plan (Exhibit 15) to the City’s satisfaction. 2689
2690 E. Billing Guidelines. The Contractor shall prepare, mail, and collect bills (or shall issue written 2691 receipts for cash payments) for Collection services provided by Contractor and the Recyclable 2692 Materials Cart Contractor. The City shall have the right to review, and approve the Billing format. 2693
2694 Contractor shall make arrangements to allow its Customers to pay bills through the following 2695 means: check, cash, credit card, internet payment service, or automatic withdrawal from banking 2696 account. Contractor shall provide at least one drop-off location in the City or at the Contractor’s 2697 office in the city of Fremont where Customers may deposit their payments. 2698
2699 Contractor shall maintain copies of all Billings and receipts, each in chronological order, for five 2700 years for inspection and verification by City during normal office hours upon request of the City. 2701 The Contractor may, at its option, maintain those records in computer form, on microfiche, or in 2702 any other manner, provided that the records can be preserved and retrieved for inspection and 2703 verification in a timely manner.
2704
2705 Contractor shall be responsible for collection of payment from Customers with past due accounts 2706 (“bad debt”).
2707 Contractor shall implement the Bad Debt Recovery Escalation Plan (Exhibit 15) for all Customers. 2708 The timing and circumstances defining Contractor’s opportunity to discontinue providing of the 2709 Collection services until the Customer has reconciled any unpaid invoices or made arrangements 2710 with Contractor to pay said invoices is prescribed in Exhibit 15, and Contractor has received 2711 written approval from the City to discontinue providing Collection service to said Customer(s). 2712
2713 F. Customer-Specific Billing Instructions
2714
2715 1. Single-Family and Parcelized Multi-Family Billing. Bills for Single-Family and Parcelized 2716 Multi-Family service shall be mailed to Customers quarterly in advance of the provision of 2717 service.
2718 2. Non-Parcelized Multi-Family Billing. Bills for Non-Parcelized Multi-Family service shall be 2719 mailed to Customers monthly in advance of the provision of service. Contractor shall bill 2720 Customer, which shall be the Owner or property manager of the Non-Parcelized Multi-Family 2721 Premises.

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2722 3. Commercial Billing. Bills for Commercial service (including permanent Drop Box and 2723 Compactor services) shall be mailed to Customers monthly in advance of the provision of 2724 service. If Commercial Customers have centralized service (in which Containers are shared 2725 by more than one Commercial Premises), Contractor shall bill one Customer for centralized 2726 services or, at the request of the Commercial Customers sharing the Containers, Contractor 2727 shall treat each Commercial Premises as a separate Customer and shall bill each Customer 2728 for service costs equal to the service Rate divided by the number of Commercial Premises 2729 sharing the service.
2730
2731 G. Bill Inserts. City may direct Contractor to insert mailers (which shall be a single sheet of paper no 2732 larger than 8.5 inches by 11 inches) relating to service with the bills. The mailers shall be printed 2733 on double-sided, post-consumer content paper and shall fit in standard envelopes. Contractor 2734 also agrees to insert, with the Billings, mailers describing activities of the City government. City 2735 shall provide not less than thirty (30) calendar days’ notice to Contractor before the mailing date 2736 of any proposed mailing to permit Contractor to make appropriate arrangements for inclusion of 2737 the City's materials. City shall provide Contractor the mailers at least fifteen (15) calendar days 2738 before the mailing date. The cost of such inserts and any additional postage shall either be paid 2739 for by the City or included in the costs upon which Maximum Rates are based. 2740
2741 H Collection of Past Due Accounts. Contractor shall be responsible for collection of payment from 2742 Customers with past-due accounts (“bad debt”). Contractor shall make reasonable efforts to 2743 obtain payment from delinquent accounts through issuance of late payment notices, making at 2744 least 3 telephone requests for payments to Customer and property owner (if the owner is a 2745 different Person or entity than the Customer), offering a Customer payment plan, and suspension 2746 of service in accordance with the following. Contractor’s efforts to collect bad-debt shall at a 2747 minimum be in alignment with the Bad Debt Recovery Escalation Plan (Exhibit 15). 2748
2749 1. If a Customer’s payment becomes more than one hundred twenty (120) days past 2750 due, Contractor may request approval from the City, which will not be unreasonably denied, to 2751 reduce service to that account until payment is received, providing written evidence for each 2752 account that the required collection steps have been taken. If the City approves such request, the 2753 Contractor shall provide the Customer and property owner (if the owner is different from the 2754 Customer) written notice of service reduction which includes a description of potential penalties 2755 from the City for nuisance, should it occur. All notifications and correspondence issued by 2756 Contractor shall be directed to the Customer and the owner of the property if the owner is a 2757 different Person or entity than the Customer.
2758
2759 2 At its option, Contractor may charge Customers a late payment fee for accounts that 2760 are over ninety (90) days past due provided that Contractor provides each Customer thirty (30) 2761 days written notice of its intent to assess the late fee. The maximum late fee is subject to the City 2762 approval and shall be included in Contractor’s established Maximum Rates subject to City 2763 approval.
2764
2765
2766 I. Review of Billings. Contractor shall review its Billings to Customers to determine (i) if the amount 2767 the Contractor is Billing each Customer is correct in terms of the level of service (i.e., frequency 2768 of Collection, size of Container, location of Container) Contractor is providing such Customer, and 2769 (ii) that all parties receiving service are invoiced for service. Contractor shall review Residential City Council/RSA Agenda 320 Tuesday, May 27, 2025
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2770 Customer accounts at least annually and Commercial Customer accounts at least every other year, 2771 unless City directs Contractor to do otherwise. Contractor shall submit to City every year, a 2772 written report of the Billing review forty-five (45) calendar days after the end of each Rate Year. 2773 The scope of the review, the Contractor’s work plan, and the format of the report (including 2774 supporting exhibits) shall be submitted to the City for approval no later than sixty (60) calendar 2775 days prior to commencement of the Billing review process. The City may perform this review 2776 itself or through use of an agent.
2777
2778 7.3 ADMINISTRATION OF SERVICE LOCATION EXEMPTION PROGRAM 2779 Contractor shall allow for Persons that have a disability as defined by the American with Disabilities Act 2780 (which means Public Law 101-336, 104 Stat. 327, 42 U.S.C. 12101-12213 and 27 U.S.C. 225 and 611, and 2781 all Federal rules and regulations relating thereto) that are Occupants of Single-Family Premises to receive 2782 Collection services at a location other than Curbside at no extra charge to the Customer. Contractor shall 2783 review all applications (which shall include statements from physicians) made by Customers to determine 2784 conformance with this exemption provision and shall grant exemptions if applicable. With regard to all 2785 requirements of this Section, the Contractor shall make reasonable accommodations with regard to 2786 provision of and servicing of Containers (e.g., Container size and type, placement of Containers for 2787 Collection, etc.) at no additional cost to the Customer. 2788
2789 7.4 CUSTOMER SERVICE PROGRAM
2790
2791 7.4.1 Program Requirements
2792
2793 A. Office Location. Contractor shall maintain a business office in a location approved by the City. 2794 The office shall be staffed with one or more customer service representatives capable of accepting 2795 payments from Customers, answering service questions, changing Customer service levels, and 2796 resolving other Customer service issues. If the office is located outside of the City, Contractor 2797 must ensure that telephone calls to its office made from within the City are toll free calls or are 2798 billed to Customer as "local calls" by all telephone companies. 2799
2800 B. Office Hours. Contractor's Customer service office shall be open to the public from 8:00 a.m. to 2801 5:00 p.m. Monday through Friday. The office may be closed on Saturdays, Sundays and Holidays. 2802
2803 C. Telephone. Contractor shall maintain a telephone system in operation at its office from 8:00 a.m. 2804 to 5:30 p.m. and shall have staff available to answer calls. Contractor shall install telephone 2805 equipment sufficient to handle the volume of calls typically experienced on the busiest days and 2806 such telephone equipment shall be capable of recording the responsiveness to call. If Persons are 2807 unable with reasonable effort to reach Contractor's office by phone, or are subject to waiting time 2808 of more than three (3) minutes prior to reaching a Customer service representative, City may 2809 require that Contractor install additional telephone lines, hire additional Customer service 2810 representatives, and/or pay the City Liquidated Damages in accordance with Section 13.5. An 2811 answering machine shall record Customer calls and voice messages between 5:30 p.m. and 8:00 2812 a.m. Contractor shall return calls received during non-business hours no later than 5:00 p.m. of 2813 the following Business Day. If Contractor fails to meet the requirements described in this Section, 2814 the Contractor shall pay the City Liquidated Damages in accordance with Section 13.5. 2815
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2816 D. Website. Contractor shall develop and maintain a website describing services provided in the 2817 City. Such website shall be accessible by the public. The site shall include answers to frequently 2818 asked questions, Rates for Residential, Commercial, and Drop Box service, Recyclable Materials 2819 and Organic Materials set-out specifications, guidelines for on-call Clean-Up Events, Collection 2820 service schedule and map (or ability for residential Customer to query Collection schedule and 2821 map by service address), and other related topics. (Note that Residential Customers, which are 2822 billed by City through the property tax billing process, will not be able to query their Collection 2823 schedule because they will not have an account in Contractor’s billing system.) Contractor shall 2824 arrange for the City’s website to include an e-mail link to Contractor and a link to Contractor’s 2825 website. The Contractor’s website shall provide the public the ability to e-mail Complaints and 2826 questions to Contractor. As required by Section 7.1.D, public education materials shall be made 2827 available to Customers via the Contractor’s website. 2828
2829 E. Customer Satisfaction Survey. The City may conduct a Customer satisfaction survey every year. 2830
2831 F. Training. Customer service representatives shall receive training during each quarter of the 2832 calendar year on City-specific service requirements. During the training, a City-specific Collection 2833 service and Rate information sheet, training agenda, and associated documentation shall be 2834 provided to employees.
2835
2836 G. City’s Web-Based Access to Customer Information. Contractor shall establish a web-based 2837 system that enables the City to have twenty-four (24) hour access to Contractor’s Customer 2838 service and billing system to view Customer records including service information, Rate, call 2839 history, etc. Contractor shall comply with this requirement by the Commencement Date. 2840 Example web-based reports that the City will be able to access are provided in Exhibit 5.16. 2841
2842 H. Independent Assessment of Call Center Performance. The City may from time to time during the 2843 Term of the Agreement conduct its own independent assessment of Contractor’s call center 2844 performance to assess whether or not Contractor is in compliance with the performance 2845 standards set forth in Section 7.4.1.C. The City also has the right to request that the Contractor 2846 arranges for an independent assessment of its call center performance and provides a report to 2847 the City of Contractor’s performance as it relates to the performance standards. In such case, the 2848 City shall have the right to approve the third party selected by Contractor, and the Contractor 2849 shall pay the cost of the third-party assessment.
2850
2851 I. Customer Service Improvement Plan. Contractor shall develop and submit to the City a detailed 2852 "Customer Service Improvement Plan" no later than two (2) months after the Commencement 2853 Date. The purpose of the plan is to describe how the Contractor will improve the call center 2854 responsiveness for the City’s Customers with the goal of ensuring that all calls from Persons are 2855 answered within three (3) minutes. The following conditions apply to the plan:
2856
2857 1. It must describe Contractor’s approach to improving the call center operations to reduce 2858 hold times of calls to meet the three- (3-) minute standard in this Section; 2859 2. It shall present a plan that will be implemented within two (2) months of the City’s approval 2860 of the plan;
2861 3. It shall be prepared by Contractor at no cost to the City and with no additional compensation 2862 to Contractor; and,
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2863 4. It shall propose changes to the Customer service and call center operations at no cost to the 2864 City and with no additional compensation to the Contractor. 2865
2866 7.4.2 Service Complaints
2867 Contractor shall be responsible for the prompt and courteous attention to, and prompt and reasonable 2868 resolution of, all Complaints. Contractor shall record in a separate log all Complaints, noting the name 2869 and address of complainant, date and time of Complaint, nature of Complaint, and nature and date of 2870 resolution. The Contractor shall retain this Complaint log for the Term. In addition, Contractor shall 2871 compile a summary statistical table of the Complaint log, satisfactory to the City, and submit the table to 2872 City each month.
2873
2874 Contractor shall respond to all Complaints received within 24 hours, weekends and Holidays excluded by 2875 informing the Customer of the action Contractor will take to remedy the Complaint or respond to the 2876 service request. Contractor shall resolve or remedy a Complaint or service request within five (5) Business 2877 Days of receipt of the Complaint or service request with the exception of missed pick-ups that shall be 2878 remedied as described below. If a Complaint involves a failure to Collect Solid Waste, Recyclable Materials 2879 or Organic Materials from a Premises in the City, Contractor shall Collect the material in question within 2880 24 hours of receipt of the Complaint, provided that Generator has properly placed materials for Collection 2881 in accordance with the City’s Municipal Code. If Contractor fails to meet the requirements described in 2882 this Section, the Contractor shall pay the City Liquidated Damages in accordance with Section 13.5. 2883 Contractor shall have e-mail capabilities (accessible through the Contractor’s website) to enable Persons 2884 to communicate Complaints and inquiries to Contractor via e-mail. 2885
2886 7.5 PROVISION OF EMERGENCY SERVICES
2887 Contractor shall provide emergency services at the City’s request in the event of major accidents, 2888 disruptions, or natural calamities. Emergency services may include, but are not limited to, assistance 2889 handling salvaged materials, Processing, Composting, or Recycling materials, or Disposing of Solid Waste 2890 following a major accident, disruption, or natural calamity. Contractor shall be capable of providing 2891 emergency services within 24 hours of notification by the City or as soon thereafter as is reasonably 2892 practical in light of the circumstances. Contractor shall be compensated for emergency services, which 2893 exceed the Contractor’s obligations, in accordance with Section 11.4. If Contractor cannot provide the 2894 requested emergency services, the City shall have the right to take possession of the Contractor’s 2895 equipment for the purposes of providing emergency services in accordance with Section 4.6. 2896
2897 7.6 CRIME PREVENTION
2898 Contractor shall train its Collection vehicle drivers to be alert to and report emergency situations. 2899 Contractor shall equip its Collection vehicles with two-way radios or telephones so that its drivers can 2900 report emergencies to the Contractor’s dispatcher who will contact the police department, fire 2901 department, or other appropriate authority.
2902
2903 7.7 SHARPS MAIL-BACK PROGRAM
2904
2905 A. General. On or before the Commencement Date, Contractor shall offer a Sharps Mail-Back 2906 program to Residential Customers for collection, transportation, and Disposal of Sharps. The 2907 Contractor’s mail-back Sharps program shall be available to Residential Customers at all times City Council/RSA Agenda 323 Tuesday, May 27, 2025
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2908 through the Term. The mail-back Sharps program shall be tested for safety and approved by the 2909 United States Postal Service for use in all 50 States. 2910
2911 B. Cost of Service and Rates. Contractor shall not be required to offer this service for free or at a 2912 discounted rate to City residents. The Customer shall pay for this service and such payment shall 2913 be a direct transaction between Customer and Contractor and shall not appear on regular 2914 Customer Billing statements. The costs for this program are not included in Contractor's Proposal 2915 or in Contractor’s Compensation, and are not reflected in Maximum Rates. Contractor shall set 2916 rates for the mail-back Sharps program, and such rates are not subject to City approval. 2917
2918 C. Program Requirements. Contractor shall provide a service in which Residents may mail their 2919 Sharps to an entity that Disposes of the Sharps in accordance with Applicable Law. At a minimum 2920 of twice annually, Contractor shall publicize the mail-back Sharps Disposal program in its quarterly 2921 Residential newsletters required by Exhibit 7.1. Upon Customer request, Contractor shall provide 2922 mail-back Sharps kits to Customers. At a minimum, each kit shall contain the following 2923 components:
2924
2925 • Step-by-step instructions
2926 • Pre-paid and pre-addresses return shipping labels and postage box (where pre-payment 2927 includes payment for Processing and Disposal of Sharps) 2928 • Medical waste container
2929 • Protective plastic liner
2930
2931 D. Sharps Definition. For the purposes of this mail-back Sharps program, “Sharps” shall be defined 2932 to include the following items, which are generated at Residential Premises:
2933
2934 • Needles and syringes
2935 • Razor blades
2936 • Orthodontic wires
2937 • Scalpel blades and lancets
2938 • Glass pipettes, slides and tubes
2939 • Broken, contaminated glass
2940 • Staples and wires (cardio-catheter wires)
2941 • Disposable suture sets and biopsy forceps
2942 • Electrocautery tips
2943
2944 7.8 COMMUNITY ENGAGEMENT
2945
2946 On an on-going basis, Contractor shall provide cash sponsorships and complimentary Collection service to 2947 charitable organizations and community events within the City, including, but not limited to events 2948 determined by the City, and other community events as appropriate. At a minimum, the Contractor’s 2949 cash sponsorship shall amount to $15,000 annually in total, and cash sponsorships in excess of the $15,000 2950 annually shall be at Contractor’s sole discretion
2951
2952 Contractor shall maintain involvement with community organizations by holding membership in the Lions 2953 Club, Chamber of Commerce, and other organizations as it deems appropriate. 2954
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2955 7.9 CONSTRUCTION AND DEMOLITION DEBRIS
2956 Pursuant to Section 4.2, Collection of Construction and Demolition Debris (C&D) is not an exclusive right 2957 of the Contractor. It may be Collected by the Contractor and by Persons other than the Contractor. 2958 Contractor’s Collection and Processing activities related to C&D are not addressed by this Agreement. 2959 Contractor shall have the right to set rates it charges Customers for such service. The City agrees to waive 2960 the Franchise Fees and other City fees defined in Article 10 on Gross Rate Revenues generated by the 2961 Contractor’s provision of C&D Collection services. The City shall periodically audit the C&D Collection and 2962 Processing program to ensure compliance with applicable rules and regulations and take enforcement 2963 action against Persons illegally Collecting C&D.
2964
2965 During the Term of the Agreement, the City reserves the right to include C&D Collection as an exclusive 2966 right for Contractor and to require that Contractor Collect such materials. The City shall also have the 2967 right to direct the Contractor to deliver the C&D materials to the Designated Transfer Station or other 2968 Processing facility selected by the City and to set diversion and performance standards. If the City 2969 exercises its right, the inclusion of C&D Collection services shall be treated as a City-directed change in 2970 scope pursuant to Section 4.5.
2971
2972 7.10 PROGRAMS TO SUPPORT CITY’S HIGH DIVERSION GOALS 2973
2974 A. General. The “Union City Climate Action Plan” (CAP) focuses on setting goals and strategies for 2975 reducing greenhouse gases (GHGs) through waste reduction efforts. It identifies Contractor’s 2976 services prescribed herein and the associated Customer activities as a significant source of GHG 2977 emissions. Specifically, “Waste-related GHG emissions result from personal consumption and 2978 waste disposal patterns, as well as from pre-consumer commercial and industrial processes. In 2979 Union City, 8.8 percent of GHG emissions are associated with solid waste generation and disposal 2980 in landfills (31,873 MT CO2e/year in 2020).”
2981
2982 The City views achievement of the CAP’s Waste Reduction goals and State and County Applicable 2983 Laws described above as a top priority, and the Contractor has agreed to assist the City in 2984 achieving its current and future CAP goals and supporting the City and its Customers in complying 2985 with Applicable Laws.
2986
2987 7.10 AB 939, AB 341, AV 1826, SB 1383, SB 54, ALAMEDA COUNTY MANDATORY RECYCLING 2988 COMPLIANCE AND CITY RECYCLING COMPLIANCE
2989
2990 A. General. Contractor shall perform all education, outreach, monitoring, and reporting for all 2991 Commercial and Multi-Family properties as required by AB 939, AB 341, AB 1826, SB 1383, SB 54, 2992 the Alameda County Waste Management Authority Organics Reduction and Recycling Ordinance 2993 2021-01, and Union City Municipal Code Chapter 7.24, Organics Reduction and Recycling, 2994 requiring residential, multi-family and Commercial Premises to reduce Disposal of Recyclable 2995 Materials and Organic Materials. These activities shall include educating Parcelized and Non2996 Parcelized Multi-Family and Commercial Customers regarding the mandatory Recyclable 2997 Materials and Organic Materials Diversion requirements of AB 341, AB 1826, SB 1383 and the 2998 County ordinance; notifying non-compliant Parcelized and Non-Parcelized Multi-Family and 2999 Commercial Customers at least semi-annually. Contractor shall develop and implement a plan 3000 that supports and educates Multi-Family and Commercial Customers on both the State and City Council/RSA Agenda 325 Tuesday, May 27, 2025
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3001 County requirements. The plan shall include updating Contractor’s website and print materials 3002 with information pertaining to both mandatory requirements. On a monthly basis, the Contractor 3003 shall provide all necessary reporting data requested by the City relating to the City's compliance 3004 requirements pertaining to AB 939, AB 32, AB 341, AB 1826, SB 1383, SB 54 and pertaining to the 3005 Alameda County Waste Management Authority Ordinance 2021-01, and Union City Municipal 3006 Code Chapter 7.24, Organics Reduction and Recycling, requiring residential, multi-family and 3007 Commercial Premises to reduce Disposal of Recyclable Materials and Organic Materials. 3008
3009 B. Cooperation. The Contractor shall cooperate in activities requested by the City to measure 3010 Diversion of Solid Waste from landfills including, but not limited to, providing a location for 3011 conducting waste sorting at the Contractor's facility, and re-routing trucks on a temporary basis 3012 to facilitate composition analysis. Such reports shall include, but not necessarily be limited to, 3013 throughput, recovery rates per material type, Contamination Level and/or Residue Level by 3014 material type, costs, Recyclable Material commodity values, and final disposition of Source 3015 Separated Recyclable Materials and Source Separated Organic Materials. The Contractor shall also 3016 supply any other information reasonably requested by the City to meet City, State, Federal, or 3017 Alameda County regulatory requirements as those requirements may be amended from time to 3018 time.
3019
3020 C. Failure to Meet Franchised Diversion Rate. If CalRecycle determines that City has failed to meet 3021 the Diversion Compliance due to Contractor’s failure to undertake the actions described in this 3022 Agreement, Contractor must prepare, at Contractor’s cost and expense, and submit a corrective 3023 action plan to City sufficient to demonstrate good faith efforts by City to comply with Diversion 3024 Compliance and that is otherwise acceptable to CalRecycle. Contractor must also submit a written 3025 corrective action plan to the City before March 15 of the year following the missed minimum 3026 Diversion requirement. Contractor’s corrective action plan must specify all actions Contractor will 3027 take to ensure it will meet Diversion Compliance Rates in the future and shall be subject to the 3028 review and approval by the City. Contractor must implement all measures identified in the 3029 corrective action plan at its sole cost and expense, unless the failure to meet Diversion Compliance 3030 was due to a Change in Law or due to the negligent acts or omissions of the City. If Contractor fails 3031 to submit an adequate corrective action plan or to fully implement a City-approved corrective 3032 action plan, it shall subject Contractor to Administrative Charges and Penalties as allowed under 3033 this Agreement, in addition to any other remedies available to the City. 3034
3035 7.12 COOPERATION WITH CITY AND STOPWASTE
3036 The Contractor shall cooperate with the City, its agent, and/or StopWaste (also known as the Alameda 3037 County Waste Management Authority and Alameda Source Reduction and Recycling Board) and its agent 3038 if the City or StopWaste want to collect data, perform field work, and/or evaluate and monitor program 3039 results related to Collection, Processing, and Disposal services performed under the terms of this 3040 Agreement. Contractor shall provide requested data, allow site visits, etc. to support the efforts of the 3041 City and StopWaste.
3042 ARTICLE 8.
3043 STANDARDS AND REQUIREMENTS
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3044 FOR SERVICES, EQUIPMENT, AND
3045 PERSONNEL
3046
3047 8.1 OPERATING HOURS AND SCHEDULES
3048
3049 A. Hours of Collection
3050
3051 1. Residential Premises. Collection from Residential Premises shall only occur between the 3052 hours of 6:00 a.m. and 6:00 p.m., Monday through Friday. 3053 2. Commercial Premises. Collection from Commercial Premises that are 100 feet or less from 3054 Residential Premises shall only occur between the hours of 5:00 a.m. and 6:00 p.m., Monday 3055 through Saturday with the exception that Collection from Commercial Premises shall occur 3056 between 6:00 a.m. and 6:00 p.m. in areas where the Contractor and/or the City has received 3057 one or more Complaints from Residential Customer(s) about Collection noise prior to 6:00 3058 a.m. Collection from Commercial Premises more than 100 feet from Residential Premises 3059 shall only occur between the hours of 3:00 a.m. and 6:00 p.m., Monday through Saturday. 3060 The City Manager may require modifications to hours for Collection from Commercial 3061 Premises to resolve noise Complaints, and, in such case, the City Manager may change the 3062 allowable operating hours.
3063 3. Exceptions. In the event of an unforeseen circumstance, the Contractor may Collect from 3064 Residential Premises or Commercial Premises that are 100 feet or less from Residential 3065 Premises between the hours of 5:00 a.m. and 10:00 p.m., Monday through Friday, upon prior 3066 written approval from the City Manager.
3067
3068 B. Route Schedules. Contractor shall provide City with route maps and daily schedules for each type 3069 of Collection service within thirty (30) calendar days of the first day of each Rate Year. Route 3070 maps shall be provided in Adobe Acrobat PDF format or other format agreed upon by the City. 3071 The City shall review and approve such maps and schedules. In addition, Contractor shall provide 3072 the City access to a web-based searchable database that allows for the City to query service days 3073 by entering an address into the system.
3074
3075 Contractor may not change its regularly scheduled Residential Collection days without prior 3076 written approval from the City. Contractor shall obtain such written approval from the City thirty 3077 (30) calendar days before the effective date of the schedule change. Once approved, Contractor 3078 shall notify any Residential Customer four weeks before any Collection schedule changes. 3079 Contractor shall not permit any Customer to go more than seven (7) calendar days without service 3080 during a Collection schedule change.
3081
3082 Contractor may not change any Commercial Customer’s regularly scheduled Collection days 3083 without providing Customer with prior notice.
3084
3085 C. Holiday Collection Schedule. Contractor shall not provide Collection services on a Holiday. 3086 Contractor shall provide Collection services on the day following the Holiday. The Contractor shall 3087 provide Customers notice of Holiday-related changes in Collection schedules at least two weeks 3088 prior to the change; but in no case, shall Contractor notice Customers three weeks prior to the 3089 change. Contractor shall coordinate its Collection schedule adjustments with the Recyclable City Council/RSA Agenda 327 Tuesday, May 27, 2025
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3090 Materials Cart Contractor so that both parties operate with the same modified Collection 3091 schedule.
3092
3093 D. Contingency Plan. Contractor shall submit to City, on or before the Commencement Date, a 3094 written contingency plan demonstrating Contractor's arrangements to provide vehicles and 3095 personnel and to maintain uninterrupted service during mechanical breakdowns, and in case of 3096 natural disaster or other emergencies.
3097
3098 8.2 COLLECTION STANDARDS
3099
3100 8.2.1 Implementation of Services
3101 The Contractor’s implementation of the services required under this Agreement shall occur in a smooth 3102 and seamless manner so that Customers and/or Generators do not experience disruption in Collection 3103 services. Contactor shall be responsible for managing implementation of new Collection services and 3104 other related services and shall do so in accordance with the requirements and timeframes specified in 3105 this Agreement.
3106
3107 8.2.2 Servicing Containers
3108 Contractor shall Collect Solid Waste and Organic Materials from individual Single-Family and Parcelized 3109 Multi-Family Customers on the same day. Contractor shall pick up and return each Container to the 3110 location where the Occupant properly placed the Container for Collection. Contractor shall place the 3111 Containers upright with lids properly secured. The City may assess Liquidated Damages for excessive 3112 occurrences of Container misplacement in accordance with Section 13.5 of this Agreement. 3113
3114 Contractor shall use due care when handling Containers. Contractor shall not throw, roughly handle, 3115 damage, or break Containers.
3116
3117 Contractor, at the request of Customers, shall provide special services including: unlocking Containers; 3118 accessing Container enclosures with a key; or pulling or pushing Containers to the Collection vehicle. 3119 Contractor shall charge Customers for extra services at Rates not to exceed City-approved Maximum 3120 Rates.
3121
3122 8.2.3 Collection with Materials from Other Jurisdictions 3123 Contractor may combine Solid Waste, Recyclable Materials, and Organic Materials Collected in the City 3124 with materials Collected from other jurisdictions. In such case, Contractor shall allocate the materials to 3125 the City’s Collection program based on Customer subscription service volumes or Tonnage using a method 3126 approved by the City.
3127
3128 8.2.4 Instructions to Customer
3129 Contractor shall instruct Customers as to any preparation of Solid Waste, Recyclable Materials, or Organic 3130 Materials and the proper placement of Containers. If Customers are not adhering to Contractor’s 3131 instructions, Contractor shall notify such Customers in writing. In cases of extreme or repeated failure to 3132 comply with the instructions, Contractor may decline to pick-up the Recyclable Materials or Organic 3133 Materials provided that Contractor leaves a tag at least two inches by six inches (2" x 6") in size on the 3134 Container indicating the reason for refusing to Collect the material. Such tag shall also identify the steps 3135 Generator must take to recommence Collection service. If Recyclable Materials or Organic Materials set City Council/RSA Agenda 328 Tuesday, May 27, 2025
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3136 out for Collection contain 10% or greater by volume of Solid Waste, Contractor shall Collect materials as 3137 Solid Waste and leave a warning notice for the Customer. 3138
3139 8.2.5 Overages
3140 Contractor shall direct its employees not to Collect Solid Waste beyond each Customer’s subscription level 3141 of service, unless the Customer has purchased a 32-gallon overage bag from the Contractor. The overage 3142 bag shall have markings identifying it as the Contractor’s overage bag. If the City and/or Contractor 3143 receive numerous Complaints (as determined by the City) from Customers’ regarding Customer 3144 dissatisfaction with the requirement to purchase overage bags, the City reserves the right to require the 3145 Contractor to modify its overage program to better serve its Customers. Contractor and City have agreed 3146 on the following procedure for identifying Customers that repeatedly set out overages and corrective 3147 actions to be taken to control the overages by imposing an Overage fee or changing the Customer’s service 3148 level.
3149 1. Contractor shall continue to remove all spillage occurring during Collection from all 3150 overloaded and non-overloaded Containers.
3151
3152 2. Contractor shall document Customer-caused Overage events with still pictures and shall 3153 notify the Customer of the Overage event by issuing written email or by phone contact to 3154 Customer no later than the Business Day immediately following the Overage event. 3155 Contractor’s standard Non-collection Notice completed properly shall suffice as the written 3156 communication used to post on the Property.
3157
3158 3. The correspondence shall include all details associated with the Overage event, including, 3159 but not limited to the still pictures taken documenting the Overage event, and the date and 3160 time the Overage event was observed. The notification requirement shall not apply to 3161 Overage events after a Customer has received six (6) Overage event notices in a calendar 3162 year.
3163
3164 4. Contractor shall make reasonable efforts to directly contact the Customer via phone or site 3165 visit and email within three (3) Business Days immediately following the first six (6) Overage 3166 events each calendar year to discuss corrective actions, including, but not limited to 3167 increasing service levels, and reiterate the details of the event warning that the next 3168 Overage event will trigger a monetary violation imposing the currently adopted Overage 3169 rate per incident observed. After Contractor provides Customer a notice for six (6) Overage 3170 events in any calendar year, Contractor may request that the City direct an increase in the 3171 capacity, or collection frequency of the Collection to match documented service needs. The 3172 increased capacity or collection frequency will remain in effect until Contractor and City 3173 determine that it is no longer needed to prevent the frequent occurrence of Overage 3174 events.
3175
3176 5. Each Customer shall receive one courtesy waiver notice of the Overage fee annually, unless 3177 the Customer has received six (6) or more Overage event notices in the prior Rate Year. 3178
3179 6. Contractor may, at its discretion, Collect a Container containing an Overage event as 3180 Recyclable Materials, Organic Materials, or as Solid Waste. Contractor shall immediately 3181 charge the Customer the City-approved Overage Rate if the Contractor previously provided 3182 the required courtesy notice to Customer documenting the prior Overage event. 3183
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3184 7. Contractor shall maintain a list of all Overage events that have occurred during the Rate 3185 Year and provide updates to said list to the City with its Monthly, Quarterly and Annual 3186 Report.
3187
3188 8. Contractor shall not be entitled to collect or charge any Overage Fees if said Overage Fees 3189 are not first included in the next Billing cycle immediately following the Overage event. 3190
3191 8.2.6 Care of Private Property
3192 Contractor shall not damage private property. Contractor shall ensure that its employees: (i) close all 3193 gates opened in making Collections, unless otherwise directed by the Customer, (ii) do not cross 3194 landscaped areas, and (iii) do not climb or jump over hedges and fences. 3195
3196 City shall refer Complaints about damage to private property to Contractor. Contractor shall repair, to its 3197 previous condition, all damage to private or public property caused by its employees. 3198
3199 8.2.7 Litter Abatement
3200
3201 A. Minimization of Spills. Contractor shall use due care to prevent vehicle oil, vehicle fuel, or other 3202 liquids from being spilled during Collection or Transportation operations. If any Solid Waste, 3203 Recyclable, or Organic Materials are spilled or scattered during Collection or Transportation 3204 operations, the Contractor shall promptly clean up all spilled and scattered materials. 3205
3206 Contractor shall not transfer loads from one vehicle to another on any public street, unless it is 3207 necessary to do so because of mechanical failure, emergency (e.g., combustion of material in the 3208 truck), accidental damage to a vehicle, or unless approved by the City. 3209
3210 If Contractor fails to perform some or all of the requirements described in this Section, the 3211 Contractor shall pay the City Liquidated Damages as described in Section 13.5. 3212
3213 B. Clean-Up. During Collection, the Contractor shall clean-up litter in the immediate vicinity of any 3214 Container storage area (including the areas where Containers are delivered for Collection) 3215 whether or not Contractor has caused the litter. Each Collection vehicle shall carry protective 3216 gloves, a broom, and shovel at all times for cleaning up litter. Cat-litter or similar absorbent 3217 material shall be used by Contractor for cleaning up liquid spills. The Contractor shall discuss 3218 instances of repeated spillage not caused by it with the Customer of the Premise where spillage 3219 occurs, and Contractor shall report such instances to City. If the Contractor has attempted to have 3220 a Customer stop creating spillage but is unsuccessful, the City will attempt to rectify such situation 3221 with the Customer. Equipment oil, hydraulic fluids, spilled paint, or any other liquid or debris 3222 caused by Contractor’s operations or equipment repair must be covered immediately upon 3223 discovery with an absorptive material and removed from the street surface. Contractor must 3224 document spillage and notify City’s stormwater compliance coordinator within ninety (90) 3225 minutes of the discovery of any spills caused by Contractor’s operations or equipment. 3226 Additionally, when necessary, Contractor must apply a suitable cleaning agent and cleaning 3227 technique to the street surface to provide adequate cleaning as approved by the City’s 3228 stormwater compliance coordinator to be compliant with the City’s stormwater permit. 3229
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3230 C. Covering of Loads. Contractor shall cover all open Drop Boxes, with a City-approved cover, at the 3231 pickup location before Transporting materials to the Designated Transfer Station or Processing 3232 Sites.
3233
3234 8.2.8 Noise
3235 All Collection operations shall be conducted as quietly as possible and shall conform to applicable Federal, 3236 State, county, and City noise level regulations. Contractor shall promptly resolve any Complaints of noise 3237 during the morning or evening hours of the day to the satisfaction of the City. 3238
3239 8.3 VEHICLE REQUIREMENTS
3240
3241 8.3.1 General
3242 Contractor shall provide a fleet of Collection vehicles sufficient in number and capacity to efficiently 3243 perform the work required by the Agreement in strict accordance with its terms. Contractor shall have 3244 available sufficient back-up vehicles for each type of Collection vehicle used (e.g., side loader, front loader, 3245 and roll-off vehicles) to respond to Complaints and emergencies. Vehicles shall have a useful life of at 3246 least ten (10) years. For the purposes of Contractor’s accounting, Contractor may use an eight- (8-) year 3247 life for side-loading Collection vehicles; however, the depreciation and interest amounts shall be 3248 annualized over ten (10) years for the purposes of determining Total Contractor’s Compensation when 3249 setting Maximum Rates. In such case, the Contractor shall not be entitled to an adjustment for purchase 3250 of new side-loading Collection vehicles in Rate Years 13 through 20. 3251
3252 8.3.2 Specifications
3253 Contractor shall register all vehicles with the California Department of Motor Vehicles. All Collection 3254 vehicles shall have watertight bodies designed so that Solid Waste, Recyclable Materials, and Organic 3255 Materials are not visible from the street and to prevent leakage, spillage, overflow, or depositing of 3256 materials along the streets. All such vehicles shall comply with California Environmental Protection 3257 Agency (EPA) noise emission and the California Air Resources Board air quality regulations and other 3258 applicable pollution control regulations.
3259
3260 Commencing no later than twelve (12) months following the Commencement Date, the Contractor shall 3261 use compressed natural gas (CNG) fuel for 100% of the all Collection vehicles performing Collection 3262 services required by this Agreement.
3263
3264 All diesel-fueled Collection vehicles in service on the Commencement Date shall be replaced with new 3265 CNG Collection vehicles no later than twelve (12) months following the Commencement Date of the 3266 Agreement. CNG vehicles in service on the Commencement Date shall be replaced during the Term at the 3267 end of their useful life as determined by Contractor. Contractor shall supply support vehicles and replace 3268 the vehicles at the end of their useful life. Contractor has planned for the Vehicle replacements and shall 3269 not be entitled to additional compensation for Vehicle replacement over the Term of the Agreement. 3270
3271 At its option, Contractor may purchase CNG fuel at the City’s Public Works Maintenance facility, 34650 3272 Seventh Street, Union City, California. The City prohibits use of vehicles that use biodiesel fuel. 3273
3274 8.3.3 Vehicle Identification
3275 Contractor's name, local telephone number, and a unique vehicle identification number for each vehicle 3276 shall be prominently displayed on all vehicles, in letters and numbers that are a minimum of 4 inches high.

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3277 Contractor shall not place the City's logo on its vehicles. With the exception of vehicle use in the event of 3278 occasional mechanical breakdowns and occasional use to cover driver shortages, Contractor shall not use 3279 vehicles identified for use in the City in any other jurisdiction without prior written approval from the City. 3280
3281 8.3.4 Inventory
3282 Contractor shall furnish sufficient equipment to provide all service required by this Agreement. 3283 Contractor shall furnish the City a written inventory of all vehicles used in providing service, and shall 3284 update the inventory annually. The inventory shall list all vehicles by manufacturer, ID number, date of 3285 acquisition, type, capacity, decibel rating, average weight of load, and average loaded axle weights. 3286
3287 8.3.5 Cleaning and Maintenance
3288
3289 A. General. Contractor shall maintain all of its properties, facilities, and equipment in a safe, neat, 3290 clean and operable condition at all times.
3291
3292 B. Cleaning. Collection vehicles shall be thoroughly washed and thoroughly steam cleaned regularly, 3293 to present a clean appearance of the exterior and interior compartment of the vehicle. City may 3294 inspect vehicles at any time to determine compliance with sanitation requirements. Contractor 3295 shall make vehicles available to the Alameda County Health Department for inspection, at any 3296 frequency it requests.
3297
3298 C. Maintenance. Contractor shall inspect each vehicle daily to ensure that all equipment is operating 3299 properly. Vehicles that are not operating properly shall be taken out of service until they are 3300 repaired and operate properly. Contractor shall perform all scheduled maintenance functions in 3301 accordance with the manufacturer's specifications and schedule or in accordance with California 3302 Highway Patrol standards whichever are more stringent. All vehicles shall be painted in a uniform 3303 manner that does not create a resemblance between Contractor’s vehicles and City utility 3304 vehicles. Contractor shall keep accurate records of all vehicle maintenance, recorded according 3305 to date and mileage, and shall make such records available to the City upon request to the extent 3306 necessary to perform the inspections described in Sections 8.8 and 9.1.3. 3307
3308 D. Repairs. Contractor shall repair, or arrange for the repair of, all of its vehicles and equipment for 3309 which repairs are needed because of accident, breakdown or any other cause so as to maintain 3310 all equipment in a safe and operable condition. If an item of repair is covered by a warranty, 3311 Contractor shall obtain warranty performance. Contractor shall maintain accurate records of 3312 repair, which shall include the date/mileage, nature of repair and the signature of a maintenance 3313 supervisor that the repair has been properly performed. 3314
3315 E. Storage. Contractor shall arrange to store all vehicles and other equipment in safe and secure 3316 location(s) in accordance with City's applicable zoning regulations. 3317
3318 F. RNG. Contractor agrees to coordinate and cooperate with the City to meet its Recovered Organic 3319 Waste Product procurement target, as defined in, and required by Applicable Law. In support of 3320 that objective and contingent on availability, the City may request any applicable SB 1383 3321 Recovered Organic Waste Product procurement credits for all RNG used by the Contractor to 3322 power Contractor’s Collection vehicles within the City as allowed by the Applicable Law and within 3323 the time provided therein.
3324
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3325 G. Zero Emission Vehicles. City and Contractor shall proactively take such steps as are necessary to 3326 plan for, and upon City direction execute, transition of the Contractor’s Collection Vehicles to 3327 reliance on electricity or other zero emission technologies as a fuel source. Contractor shall report 3328 to the City no less than annually on the status of the transition. The City and Contractor shall, no 3329 less than annually, confer on the degree to which it is technologically and economically feasible 3330 to transition some or all Collection Vehicles to electricity or other zero emission technology. Upon 3331 a determination by the City that it is technologically and economically feasible to transition some 3332 or all Collection Vehicles to electricity or other zero emissions technology, Contractor shall 3333 proceed to purchase and operate such vehicles on a schedule mutually agreed to by Contractor 3334 and City, and subject to agreement regarding changes in Contractor’s Compensation that are 3335 reasonable and necessary for the transition. Contractor shall be entitled to a change in 3336 Contractor’s Compensation for construction of an electric charging or other fueling station, 3337 subject to the mutual agreement of the City and Contractor and approval of the City Council. 3338 Contractor will coordinate with the City in finding or constructing a suitable charging or other 3339 fueling station for Contractor’s electric or other zero emission Collection Vehicles. 3340
3341 Contractor must use Collection Vehicles fitted with GPS tracking devices that can be used to record start 3342 and stop times, vehicle locations, and maximum speed. Collection Vehicles may also be fitted with 3343 cameras that are programmed to take photos, date and location stamped, to document violations, 3344 including contamination and overfilling. Should Contractor commence the use of such technology on their 3345 collection vehicles, GPS and camera data must be made available to City upon request. 3346
3347 8.3.6 Operation
3348 Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and 3349 local ordinances. Contractor shall not load vehicles in excess of the manufacturer's recommendations or 3350 limitations imposed by State or local weight restrictions for vehicles and roads. Annually, Contractor shall 3351 have each Collection vehicle weighed at the Designated Transfer Station or Processing Sites to determine 3352 the unloaded weight (“tare weight”) of the vehicle, and the total loaded weight of each load delivered to 3353 the Designated Transfer Station or Processing Sites. Upon a major repair that could affect the Collection 3354 vehicle tare weight, Contractor shall have the Collection vehicle re-weighed to establish a new tare weight. 3355
3356 Contractor may not use any Collection Vehicle in violation of weight limitations in Applicable Law. The 3357 Contractor may exceed the Collection Vehicle size limitation for a limited time due to extraordinary 3358 circumstances or conditions with the prior written consent of the Agreement Administrator. The limited 3359 time may not exceed one hundred and twenty (120) calendar days. Contractor must report all instances 3360 of overweight vehicles to City as part of its quarterly reporting, and as part of its Annual Reports to the 3361 City. Contractor may be assessed Administrative Charges and Penalties as a result of exceeding an 3362 overweight vehicle rate of ten percent (10.00%) in any Calendar Year during the Term of the Agreement. 3363 The overweight vehicle rate will be calculated as the total number of overweight Collection Vehicle 3364 instances during the Calendar Year divided by the total number of Collection Vehicle loads transported 3365 during the Calendar Year. Prior to collecting Administrative Charges and Penalties for overweight vehicles, 3366 the City shall afford Contractor a reasonable opportunity to provide the City with documentation of the 3367 extraordinary circumstance that caused the overweight vehicles. Extraordinary circumstances in this case 3368 may include, but are not limited to, heavy rains or high winds that caused excess Green Waste to be 3369 generated, rain to accumulate in open Containers, or normal Collection routes to be delayed or shortened 3370 due to extreme weather conditions. The City shall have authority to consider Contractor’s documentation 3371 and uphold and collect the assessed charge, to reduce the charge, or to waive and dismiss the charge. The City Council/RSA Agenda 333 Tuesday, May 27, 2025
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3372 City shall also have the authority to waive charges in advance of an anticipated, or in response to an actual, 3373 emergency event.
3374
3375 8.4 CONTAINER REQUIREMENTS
3376
3377 A. General. Contractor shall provide all Carts, Bins, and Drop Boxes, as appropriate, to all Customers 3378 as part of its services. Contractor-provided Containers shall be designed and constructed to be 3379 watertight and prevent the leakage of liquids. All Containers with a capacity of one cubic yard or 3380 more shall meet applicable federal, State, and local regulations for Bin safety and be covered with 3381 attached lids. All Carts shall be manufactured by injection or rotational molding methods and 3382 shall meet the Cart design and performance requirements provided in Exhibit 8.4. Contractor 3383 shall obtain City’s written approval of Cart specifications before acquisition. All Containers shall 3384 prominently display the Contractor’s name and phone number. Carts provided to Customers shall 3385 have a useful life of at least 10 years as evidenced by manufacturer’s warranty or other 3386 documentation acceptable to the City.
3387
3388 B. Container Sizes. Sections 5.1, 5.2, and 5.3 describe the Container sizes to be provided to Single3389 Family, Parcelized and Non-Parcelized Multi-Family, and Commercial Customers. Below is a table 3390 that summarizes the size specifications. In the event of conflicts between this Section 8.4.B and 3391 Sections 5.1, 5.2, and/or 5.3, the requirements in Article 5 shall govern. 3392
Service Type Single-Family
Customers
Parcelized MultiFamily CustomersNon-Parcelized
Multi-Family
Customers
Commercial
Customers
Solid Waste • 35-gallon Carts
shall be the
standard service
• 20-, 35-, 64-, or
96-gallon Carts
• 20-, 35-, 64-, or
96-gallon Carts
• 20-, 35-, 64-, or
96-gallon Carts
• 1 to 8 cubic yard
Bins
• 35-, 64-, or 96-
gallon Carts
• 1 to 8 cubic yard
Bins
• 10 to 50 cubic
yard Drop Boxes
Recyclable
Materials
None None • 1 to 8 cubic yard
Bins
• 1 to 8 cubic yard
Bins
• 1 to 8 cubic yard
Bins
• 1 to 8 cubic yard
Bins
Organic
Materials
• 96-gallon Carts
shall be the
standard service
• Provide Customers
20-, 35-, and 64-
gallon Carts upon
request
• 1.5- to 2.5-gallon
Kitchen Pail
• 20-, 35-, 64-, or
96-gallon Carts
•
• 35-, 64-, or 96-
gallon Carts
• 1 to 3 cubic yard
Bins
• 35-, 64-, or 96-
gallon Carts
• 1 to 3 cubic yard
Bins
3393
3394
3395 C. Cleaning, Painting, and Maintenance. All Containers shall be maintained in a safe, serviceable, 3396 and functional condition. Contractor shall steam clean and repaint all Containers, except Carts, 3397 to present a clean appearance. Customers using Carts shall be responsible for cleaning such Carts. 3398 If any Container is impacted by graffiti, Contractor shall remedy the situation within 48 hours.

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3399
3400 D. Repair and Replacement. Contractor shall repair or replace all Containers damaged by Collection 3401 operations within a one-week period. If the repair or replacement cannot be completed within 3402 one week, the Contractor shall notify Customer and a Container of the same size or larger shall 3403 be made available until the proper Container can be replaced. 3404
3405 At no additional cost, Contractor shall replace Customer Carts that have been stolen or damaged, 3406 once per year. Contractor shall allow Customer to exchange Containers for a Container of a 3407 different size at no additional cost, once per year. Contractor shall charge Customers for 3408 additional Cart replacements at Rates not to exceed City-approved Maximum Rates. 3409
3410 The Contractor recognizes that some Containers in service on the Commencement Date have 3411 reached the end of their useful life or will reach the end of the useful life during the Term of the 3412 Agreement. Contractor has planned for Container replacements and will not be entitled to 3413 additional compensation for Container replacements over the Term of the Agreement. 3414
3415 E. City’s Rights to Containers. Upon expiration or early termination of this Agreement, all Carts, 3416 Bins, Compactors and Permanent Drop Boxes acquired by or leased by Contractor and put into 3417 service at Customer’s Premises, which are fully depreciated, shall become property of the City, at 3418 the City’s option. All Carts, Bins, Containers, and Permanent Drop Boxes purchased or leased and 3419 put into service at Customers’ Premises that have not been fully depreciated shall be available to 3420 the City, at the City’s option, at their net book value. 3421
3422 At its sole discretion, the City may elect not to exercise its rights with regards to this Section 8.4.E 3423 and, in such case, the Containers shall become the property of the Contractor upon the expiration 3424 date of this Agreement or date of its earlier termination of this Agreement. In such case, 3425 Contractor shall be responsible for removing all Containers in service from Premises and reusing 3426 or Recycling such Containers.
3427
3428 8.5 PERSONNEL
3429
3430 A. General. Contractor shall furnish such qualified drivers, mechanical, supervisory, Customer 3431 service, clerical and other personnel as may be necessary to provide the services required by this 3432 Agreement in a safe and efficient manner and shall provide, at a minimum, the number and type 3433 of personnel listed in Exhibit 11.1.B. All personnel furnished by Contractor shall be subject to the 3434 provisions of Section 14.1.
3435
3436 C. Wages and Benefits. Wages and benefits applicable to employees performing work under the 3437 Agreement shall not be less than those general prevailing rates in Alameda County for comparable 3438 work. Either the City or the Contractor may apply to the Director of the California Department of 3439 Industrial Relations for a determination of such prevailing wages and benefits, if the Parties do 3440 not reach agreement on the amounts involved.
3441
3442 C. Approval of Management. Contractor recognizes the importance of establishing a successful 3443 relationship between its management and City staff. If the City is dissatisfied with the 3444 performance of the customer service manager, and/or operations manager, the City shall contact 3445 the general manager to discuss the employee’s performance. If the City is dissatisfied with the City Council/RSA Agenda 335 Tuesday, May 27, 2025
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3446 general manager, the City shall contact Republic Services, Inc.’s Northern California Area 3447 President to discuss the general manager’s performance. Contact information is as follows:
3448
3449 Yasser Brenes, Area President
3450 Republic Services, Inc.
3451 2125 Oak Grove Rd, Ste 110
3452 Walnut Creek, CA 94598
3453 (510) 262-7153
3454 [email protected]
3455
3456 Contractor shall advise the affected management employee of any complaints made by the City 3457 regarding the employee’s performance. The Parties shall meet and confer in good faith to address 3458 the City’s concerns, and shall agree on a corrective course of action to be implemented 3459 immediately. Contractor agrees to consider in good faith, but shall not be bound by, any requests 3460 by the City to transfer or re-assign an employee should the City maintain in good faith that it can 3461 no longer work constructively with said management employee. 3462
3463 D. Provision of Field Supervision. Contractor shall designate at least one qualified employee as 3464 supervisor of field operations. The field supervisor shall devote his or her time in the field 3465 checking on Collection operations, including responding to Complaints. 3466
3467 E. Driver Qualifications. All drivers shall be trained and qualified in the operation of Collection 3468 vehicles, and must have in effect a valid license, of the appropriate class, issued by the California 3469 Department of Motor Vehicles. Contractor shall use the Class II California Department of Motor 3470 Vehicles employer “Pull Notice Program” to monitor its drivers for safety. 3471
3472 F. Recycling Coordinator. Contractor shall assign one full-time person to the City as its Recycling 3473 Coordinator. The Recycling Coordinator shall work closely with City staff to ensure maximum 3474 effectiveness of all City and Contractor Diversion Programs operating in the City including, but not 3475 limited to Collection programs described in Article 5 and public education and technical assistance 3476 programs described in Section 7.1. In the event Contractor fails to provide the required full-time 3477 Recycling Coordinator (where failure shall be defined as providing less than a 0.9 full-time 3478 equivalent person during each Rate Year or having the position be vacant for thirty (30) 3479 consecutive calendar days), the City shall have the right to retain consulting services for an 3480 equivalent number of work hours (i.e., two-thousand and eighty (2,080) hours per Rate Year) to 3481 provide the services that were to be performed by the Recycling Coordinator. If the City exercises 3482 such right, the City shall arrange for services from any party it deems suitable, at the Contractor’s 3483 sole expense. Contractor shall pay the City’s costs for such consulting services within thirty (30) 3484 days of receipt of an invoice from the City. Upon request, Contractor shall provide documentation 3485 of its Recycling Coordinator’s first and last date of employment to verify compliance with this 3486 provision.
3487
3488 G. Customer Service Representative Training. Customer service representatives shall be trained on 3489 specific City service requirements, a minimum of once per quarter. A City information sheet shall 3490 be provided to each Customer service representative for easy reference of City requirements and 3491 general Customer needs. Upon the City’s request, the information sheet, training agenda, and 3492 associated documentation shall be provided for City review. 3493
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3494 H. Safety Training. Contractor shall provide suitable operational and safety training for all of its 3495 employees who operate Collection vehicles or equipment or who are otherwise directly involved 3496 in such Collection, transfer, Disposal, or Processing. Contractor shall train its employees involved 3497 in Collection to identify, and not to collect, Hazardous Waste or Infectious Waste. Upon the City’s 3498 request, Contractor shall provide a copy of its safety policy and safety training program, the name 3499 of its safety officer, and the frequency of its trainings. 3500
3501 I. No Gratuities. Contractor shall not permit its employees to demand or solicit, directly or 3502 indirectly, any additional compensation, or gratuity from members of the public for Collection 3503 services.
3504
3505 J. Employee Conduct and Courtesy. Contractor shall employ only competent, qualified, sober, and 3506 drug-free personnel who serve the public in a courteous, helpful, and impartial manner. 3507 Contractor shall use its best efforts to assure that all employees present a neat appearance and 3508 conduct themselves in a courteous manner. Contractor shall regularly train its employees in 3509 Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection 3510 employees to perform the work as quietly as possible. If any employee is found not to be 3511 courteous or not to be performing services in the manner required by this Agreement, Contractor 3512 shall take all appropriate corrective measures. The City may require Contractor to reassign an 3513 employee, if the employee has conducted himself or herself inconsistently with the terms of this 3514 Agreement.
3515
3516 K. Uniforms. While performing services under this Agreement, all of the Contractor’s employees 3517 performing field service shall be dressed in clean uniforms and shall wear identification that 3518 include the employee’s name and/or employee number, and Contractor’s name. 3519
3520 L. ROUTE AUDITS/ROUTE REVIEWS
3521
3522 General Requirement. At least once annually, beginning in 2026, Contractor or its approved 3523 designee shall conduct a Route Review for each Route. The number of Containers to review per 3524 Route shall be calculated on the basis of the number of accounts provided service by a specific 3525 Route for one week. For example, “Route A” collects from two-hundred and fifty (250) accounts, 3526 four (4) days per week, for a total of one-thousand (1,000) accounts per week; include a minimum 3527 of twenty-five (25) accounts for Route Review of “Route A”. For each Route Review of a Route, 3528 Contractor shall inspect at least the following minimum number of Containers but may inspect 3529 more if Contractor deems necessary; and shall inspect all Containers placed for Collection. Each 3530 inspection shall involve lifting the Container lid and observing the contents but shall not require 3531 Contractor to disturb the contents or open any bags. Contractor may select the Containers to be 3532 inspected at random, or (if mutually agreed with City) by any other method not prohibited under 3533 the SB 1383 Regulations. For the avoidance of doubt, Contractor shall not be required to annually 3534 inspect every Container on a Route. Contractor shall include the results of each Route Review in 3535 its next regularly scheduled report to City.
3536
3537 Route Size (# garbage accounts / week) Minimum Number of Accounts:
3538 Fewer than 1,500 25
3539 1,500-3,999 30
3540 4,000-6,999 35
3541 7,000 or more 40
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3542
3543 8.6 HAZARDOUS WASTE INSPECTION AND HANDLING
3544
3545 A. Inspection Program and Training. Contractor shall develop a load inspection program that 3546 includes the following components: (i) Personnel and training; (ii) Load checking activities; (iii) 3547 Management of wastes; and (iv) Record keeping and emergency procedures. 3548
3549 Contractor’s load checking personnel, including its Collection vehicle drivers, shall be trained in (i) 3550 the effects of Hazardous Substances on human health and the environment; (ii) identification of 3551 prohibited materials; and (iii) emergency notification and response procedures. Collection vehicle 3552 drivers shall inspect Containers before Collection when practical. 3553
3554 B. Response to Hazardous Waste Identified during Collection. Under no circumstances shall 3555 Contractor’s employees knowingly Collect Hazardous Waste or remove unsafe or poorly 3556 containerized Hazardous Waste from a Container. If Contractor determines that material placed 3557 in any Container for Collection is Hazardous Waste, Designated Waste, or other material that may 3558 not legally be Disposed of at the Designated Transfer Station or handled at the Processing Sites, 3559 or presents a hazard to Contractor's employees, the Contractor shall have the right to refuse to 3560 accept such material. The Generator shall be contacted by the Contractor and requested to 3561 arrange proper Disposal. If the Generator cannot be reached immediately, the Contractor shall, 3562 before leaving the Premises, leave a tag at least two inches by six inches (2" x 6") in size, which 3563 indicates the reason for refusing to Collect the material and lists the phone number for the 3564 Alameda County Household Hazardous Waste Facility. The Contractor’s general manager shall be 3565 notified by the Contractor and shall guide the Generator to safely containerizing the Hazardous 3566 Waste and shall explain the Generator’s options for proper disposition of such material. 3567
3568 Contractor’s general manager is:
3569
3570 Joe Chu, General Manager
3571 Republic Services, Inc.
3572 42600 Boyce Road
3573 Fremont, CA 94538
3574 (510) 354-2451
3575 [email protected]
3576
3577 If Hazardous Waste is found in a Container or Collection area that could possibly result in 3578 imminent danger to people or property, the Contractor shall immediately notify the City’s Fire 3579 Department using the 911 emergency number. The Contractor shall notify the City of any 3580 Hazardous Waste identified in Containers or left at any Premises within 24 hours of identification 3581 of such material.
3582
3583 C. Response to Hazardous Waste Identified at Disposal Site or Processing Site. If materials 3584 Collected by Contractor are delivered to a facility owned by Contractor for purposes of transfer, 3585 Processing, or Disposal, load checkers and equipment operators at such facility shall conduct 3586 inspections in areas where Collection vehicles unload Solid Waste, Recyclable Materials, or 3587 Organic Materials to identify Hazardous Wastes. Facility personnel shall remove these materials 3588 for storage in approved, on-site, hazardous materials storage Container(s). Contractor shall make City Council/RSA Agenda 338 Tuesday, May 27, 2025
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3589 reasonable efforts to identify and notify the Generator. Contractor shall arrange for removal of 3590 the Hazardous Wastes by permitted haulers in accordance with Applicable Laws and regulatory 3591 requirements.
3592
3593 If the unacceptable material is delivered to the Designated Transfer Station or Processing Sites by 3594 Contractor before its presence is detected, and the Generator cannot be identified or fails to 3595 remove the material after being requested to do so, the Contractor shall arrange for its proper 3596 Disposal. The Contractor shall make a good faith effort to recover the cost of Disposal from the 3597 Generator, and the cost of this effort, as well as the cost of Disposal shall be chargeable to the 3598 Generator.
3599
3600 D. Regulations and Record Keeping. Contractor shall comply with emergency notification 3601 procedures required by Applicable Laws and regulatory requirements. All records required by 3602 regulations shall be maintained at the Contractor’s facility. These records shall include: waste 3603 manifests, material inventories, material Characterization records, inspection records, incident 3604 reports, and training records.
3605
3606 8.7 NON-DISCRIMINATION
3607 Contractor shall not discriminate in the provision of service or the employment of Persons engaged in 3608 performance of this Agreement on account of race, color, natural origin, ancestry, religion, gender, marital 3609 status, sexual orientation, age, physical or mental disability in violation of any Applicable Law. 3610
3611 8.8 COMMUNICATION AND COOPERATION WITH CITY
3612
3613 A. Communications. The Contractor shall meet with the City or its agent at least once a month or 3614 upon request to discuss service issues and/or public education outreach activities. The 3615 Contractor’s general manager shall have e-mail capabilities to enable the City and the Contractor’s 3616 general manager to communicate via e-mail.
3617
3618 D. Inspection by City. The City or its designated representatives shall have the right to observe and 3619 review Contractor operations and Processing Sites and enter Premises for the purposes of such 3620 observation and review during reasonable hours without advance notice. 3621
3622 C. Cooperate with City-Initiated Studies. Contractor shall cooperate with and assist the City or its 3623 agent with performance of City-initiated studies of Solid Waste, Recyclable Materials, and Organic 3624 Materials such as, but not limited to, material Characterization and composition studies. 3625
3626 8.9 COMMUNICATION AND COORDINATION WITH CITY’S RECYCLABLE MATERIALS CART 3627 CONTRACTOR
3628
3629 A. Communications. If requested, the Contractor shall meet with the Recyclable Materials Cart 3630 Contractor at least once each month to discuss service, route, and billing issues. The Contractor’s 3631 general manager shall have e-mail capabilities to enable the Recyclable Materials Cart Contractor 3632 and the Contractor’s general manager to communicate via e-mail. 3633
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3634 B. Coordination of Routes. Contractor shall coordinate its Collection routes with the Recyclable 3635 Materials Cart Contractor to ensure Residential Customers’ Solid Waste, Recyclable Materials, and 3636 Organic Materials are Collected on the same day of the week. 3637
3638 C. Coordination of Billings. Contractor shall coordinate with the Recyclable Materials Cart Contractor, to receive on or before the fifteenth (15th 3639 ) day of each month, a list of the Commercial 3640 and Non-Parcelized Multi-Family Customers receiving Recyclable Materials Collection services 3641 using a Cart and Residential Customers subscribing to extra Recyclable Materials and Organics 3642 Materials Carts for additional Collection services. Contractor shall bill such Customers for 3643 Recyclable Materials Collection services at Rates included in Maximum Rates established by 3644 Contractor and approved by City. Contractor shall remit to the City, on a monthly basis, that 3645 portion of the actual Gross Rate Revenues collected from Commercial Customers for Recyclable 3646 Materials Cart service for the previous month which corresponds to the Recyclable Materials 3647 Collection Rate included in Maximum Rates. The remittance of such revenues shall be made in a 3648 manner consistent with Section 10.10.
3649 ARTICLE 9.
3650 RECORD KEEPING AND
3651 REPORTING
3652
3653 9.1 GENERAL RECORD KEEPING PROVISIONS
3654
3655 9.1.1 Maintenance of Records
3656 Contractor shall maintain accounting, statistical, and other records related to its performance as shall be 3657 necessary to develop the financial statements and other reports required by this Agreement. Also, 3658 Contractor agrees to conduct data collection, information and record keeping, and reporting activities 3659 needed to comply with and to meet the reporting and Solid Waste, Recyclable Materials, and Organic 3660 Materials program management needs of City, and other Applicable Laws (such as, but not limited to, AB 3661 939, AB 32, AB 341, AB 1826, AB 1594, SB 1383, Alameda County Waste Management Authority 3662 Ordinance 2021-01, and City of Union City Municipal Code Chapter 7.24 requiring multi-family and 3663 Commercial Premises to reduce Disposal of Recyclable Materials and Organic Materials), and the 3664 requirements of this Agreement.
3665
3666 To the extent, such requirements are set out in this and other Articles of this Agreement, they shall not 3667 be considered limiting or necessarily complete. In particular, this Article is intended to only highlight the 3668 general nature of records and reports and their minimum content and is not meant to comprehensively 3669 define what the records and reports are to be and their content. Further, with the written direction by or 3670 approval of City, the records, and reports to be maintained and provided by Contractor in accordance with 3671 this and other Articles of the Agreement may be adjusted in number, format, or frequency. Records and 3672 reporting may be revised to reflect current record keeping and reporting requirements. 3673
3674 In order to set Contractor’s Compensation pursuant to Article 11, it is necessary for Contractor to maintain 3675 accurate, detailed financial and operational information in a consistent format and to make such City Council/RSA Agenda 340 Tuesday, May 27, 2025
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3676 information available to the City in a timely fashion, and in accordance with reporting requirements 3677 specified in this Article.
3678
3679 9.1.2 Retention of Records
3680 Unless otherwise required in this Article, Contractor shall retain all records and data required to be 3681 maintained by this Agreement for the Term of this Agreement plus five years after its expiration or earlier 3682 termination. Records and data shall be in chronological and organized form and readily and easily 3683 interpreted. At the City’s request, records and data required to be retained shall be retrieved in a timely 3684 manner (which shall not exceed more than two weeks unless Contractor obtains prior written approval 3685 from the City) by Contractor and made available to the City. 3686
3687 In such a case and when records and data are not retained by the Contractor, the City may make 3688 reasonable assumptions regarding what information is contained in such records and data, and such 3689 assumption(s) shall be conclusive in whatever action the City takes. 3690
3691 9.1.3 Inspection of Records
3692 Contractor agrees to provide or make available its records of any and all companies conducting operations 3693 addressed in this Agreement to the City and its official representatives for review during normal business 3694 hours. During the Term of this Agreement, the City, its auditors, and other agents, shall have the right, 3695 during normal business hours, to conduct unannounced on‐site inspections of the records and accounting 3696 systems of Contractor and to make copies of any documents it deems relevant to this Agreement. In the 3697 event the custodian of such records and systems is not on the premises at the time of inspection, 3698 Contractor shall not be in breach of this Agreement, the City shall then give notice to Contractor 3699 requesting access to the records, and Contractor shall make arrangements to allow for inspection within 3700 twenty‐four (24) hours of such notice. The City’s right to inspection of records under this paragraph shall 3701 continue for five (5) years after the expiration or early termination of this Agreement. However, after 3702 expiration or early termination of this Agreement, the City shall provide Contractor with a written request 3703 to inspect records and Contractor shall make records available for inspection within two (2) weeks of such 3704 request.
3705
3706 9.1.4 Record Security
3707 Contractor shall maintain adequate record security to preserve records from events that can be 3708 reasonably anticipated such as a fire, theft, and an earthquake. Electronically maintained data and 3709 records shall be protected and backed-up.
3710
3711 9.1.5 California Public Records Act. Contractor acknowledges that City is legally obligated to comply 3712 with the California Public Records Act (“CPRA”). City acknowledges that Contractor may consider certain 3713 records, reports, or information contained therein (“Records”) which Contractor is required to provide to 3714 City under this Agreement to be of a proprietary or confidential nature. In such instances, Contractor will 3715 inform City in writing of which records are considered propriety or confidential and shall identify the 3716 statutory exceptions to disclosure provided under the CPRA that legally permit non-disclosure of the 3717 Records. At such time as City receives a request for records under the CPRA or Federal Freedom of 3718 Information Act (“FOIA”), or a subpoena or other court order requesting disclosure of the Records, City 3719 will notify Contractor of the request, subpoena, or order and of City’s obligation and intent to provide a 3720 response within ten (10) calendar days. Contractor shall within five (5) calendar days either: (i) consent in 3721 writing to the disclosure of the Records; or (ii) seek and obtain, at Contractor’s sole cost and expense, the 3722 order of a court of competent jurisdiction staying or enjoining the disclosure of the Records. If Contractor 3723 fails to respond within the timeframe stipulated, then City may proceed to disclosure the Records, in City Council/RSA Agenda 341 Tuesday, May 27, 2025
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3724 which event Contractor agrees, waives, and releases City of any liability for the disclosure of the Records. 3725 In the event Contractor seeks a court order to stay or enjoin the disclosure of the Records, Contractor 3726 agrees to indemnify, defend, and hold harmless the City, its Council, elected and appointed board or 3727 commission members, officers, employees, volunteers, and agents (collectively, "Indemnitees") from and 3728 against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding, or suit in law or 3729 equity of any and every kind and description, whether judicial, quasi-judicial, or administrative in nature, 3730 arising or resulting from or in any way connected with the subject CPRA, FOIA request, or subpoena for 3731 the Records so long as Indemnities do not release the Records in contradiction to the court order or 3732 injunction. This indemnity obligation shall survive the expiration or termination of this Agreement. 3733
3734 9.2 RECORD KEEPING REQUIREMENTS
3735
3736 9.2.1 Financial and Operational Records
3737 Contractor shall maintain and retain accurate and complete accounting records containing the underlying 3738 financial and operating data relating to and showing the basis for computation of all costs associated with 3739 providing services. The accounting records shall be prepared in accordance with Generally Accepted 3740 Accounting Principles (GAAP) consistently applied. 3741
3742 9.2.2 Collection Service Records
3743 Records shall be maintained and retained by Contractor for City relating to:
3744
3745 A. Customer services and Billing including service exemption information; 3746
3747 B. Weight and volume of material Collected by type (e.g., Solid Waste, Recyclable Materials, and 3748 Organic Materials). Where possible, information is to be separated by Service Type; 3749
3750 C. Routes;
3751
3752 D. Facilities, equipment and personnel used;
3753
3754 E. Facilities and equipment operations, maintenance and repair; 3755
3756 F. Tonnage of Solid Waste, Recyclable Materials, and Organic Materials listed by Processing Site or 3757 Disposal Site where such materials were delivered; 3758
3759 G. Recyclable Materials and Organic Materials Collection participation and setout rates; 3760
3761 H. Tonnage of Recyclable Materials and Organic Materials Collected and Diverted from Disposal by 3762 Contractor;
3763
3764 I. Diversion Level;
3765
3766 J. Recyclable Materials sales revenue;
3767
3768 K. End use and markets for recovered materials.
3769
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3770 9.2.3 Transfer, Processing, Diversion, and Disposal Records 3771 Contractor shall maintain and retain records of transfer, Processing, Diversion, and Disposal of all Solid 3772 Waste, Recyclable Materials, and Organic Materials Collected by Contractor. 3773
3774 9.2.4 Other Programs Records
3775 Records for other programs shall be tailored to specific needs. In general, Contractor shall maintain and 3776 retain the following records:
3777
3778 A. Plans, tasks, and milestones; and
3779
3780 B. Accomplishments in terms such as dates, activities conducted, quantities of products used, 3781 produced or distributed, and numbers of participants and responses. 3782
3783 9.2.5 Customer Service Records
3784 Records shall be maintained and retained by Contractor for City related to:
3785
3786 A. Number of calls handled by the Customer service department; 3787
3788 B. Detailed call log including, but not limited to data for each call received, date and time of call, call 3789 hold time, queue name;
3790
3791 C. Weekly average speed to answer (where speed to answer is the time commencing when a caller 3792 is placed in a queue (immediately after a caller hears Contractor’s recorded message and makes 3793 a choice from the phone tree) and ending when a live Customer service agent picks up the call); 3794
3795 D. Percentage of calls answered in 30 seconds; percentage of calls answered in 3 minutes; 3796
3797 E. Number of calls for specific call categories (such as, but not limited to, missed pickups, property 3798 damage, noise Complaints, requests for Recycling information, scheduling extra pick-ups, etc.); 3799
3800 F. Training materials and records;
3801
3802 G. Complaint log noting the name and address of Complainant, date and time of Complaint, nature 3803 of Complaint, and nature and date of resolution;
3804
3805 9.2.6 CERCLA Defense Records
3806 City views its ability to defend itself against Comprehensive Environmental Response, Compensation and 3807 Liability Act (CERCLA), and related litigation as a matter of great importance. For this reason, the City 3808 regards its ability to prove where Solid Waste Collected is taken for transfer or Disposal, as well as where 3809 they are not taken, to be matters of concern. Contractor shall maintain, retain, and preserve records that 3810 can establish where Solid Waste Collected was Disposed (and therefore establish where they were not). 3811 This provision shall survive the expiration or earlier termination of this Agreement. Contractor shall 3812 maintain these records for a minimum of 10 years beyond expiration or earlier termination of the 3813 Agreement. Contractor shall provide these records to City (upon request or at the end of the record 3814 retention period) in an organized and indexed manner rather than destroying or disposing of them. 3815
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3816 9.3 GENERAL REPORTING REQUIREMENTS
3817
3818 A. Purpose. Records shall be maintained and retained in forms and by methods that facilitate 3819 flexible use of data contained in them to structure reports, as needed. Reports are intended to 3820 compile recorded data into useful forms of information that can be used to, among other things:
3821
3822 1. Set Maximum Rates
3823 2. Evaluate the financial efficacy of operations
3824 3. Determine needs for adjustment to programs
3825 4. Evaluate Customer service and Complaints
3826 5. Prepare reports on programs for the City, State, Alameda County, and other agencies 3827 6. Evaluate Contractor’s compliance with the terms of the Agreement 3828
3829 B. Report Format. Contractor may propose report formats that are responsive to the objectives and 3830 audiences for each report. The format of each report shall be approved by City. The City may 3831 review and request changes to Contractor’s report formats and content and Contractor shall make 3832 not unreasonably deny such requests. Contractor agrees to submit all reports by e-mail (or submit 3833 reports in another digital format via the internet or in the event e-mail communications are 3834 unsuccessful) in a format compatible with City’s software and computers and, upon City’s request, 3835 mail a copy of all reports at no additional charge. At City’s request, Contractor shall use 3836 standardized reporting forms provided by City or an electronic reporting system specified by the 3837 City and paid for by the Contractor. For reporting information that pertains to services provided 3838 by Subcontractor(s), Contractor shall be responsible for obtaining the necessary information from 3839 Subcontractor(s) and including Subcontractor(s)’ reported information in Contractor’s report 3840 submittals. Contractor shall provide a certification statement, under penalty of perjury, by the 3841 responsible Contractor official, that the report being submitted is true and correct to the best 3842 knowledge of such official after their reasonable inquiry. 3843
3844 C. Submittal Schedule and Instructions. Contractor shall submit monthly reports within twenty (20) 3845 calendar days after the end of the reporting month. Contractor shall submit quarterly reports 3846 within forty-five (45) calendar days after the end of the report quarter. Contractor shall submit 3847 annual reports no later than forty-five (45) calendar days after the end of the each Rate Year. 3848
3849 Contractor shall submit (via mail and e-mail) all reports to:
3850
3851 City Manager
3852 City of Union City
3853 34009 Alvarado-Niles Road
3854 Union City, CA 94587-4497
3855
3856 9.4 MONTHLY REPORTS
3857 Monthly reports shall present the information described in this Section. 3858
3859 A. Solid Waste Services. Total Tonnage Collected, Diverted, and Disposed by Service Type. 3860
3861 B. Recyclable Materials Services. Tonnage Collected and Recycled by Service Type listed separately 3862 by material type and Tonnage of Residue Disposed by Service Type. This data shall include City Council/RSA Agenda 344 Tuesday, May 27, 2025
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3863 Tonnage information for used motor oil, used motor oil filters, Single-Family and Parcelized Multi3864 Family Clean-Up Events, and Non-Parcelized Clean-Up Events. 3865
3866 C. Organic Materials Services
3867
3868 1. Tonnage Collected and Composted by Service Type. If the Processing Site handles Organic 3869 Materials Collected in the City and from other parties, Contractor shall or Processing Site 3870 operator shall provide a description of how the quantities of Organic Materials are accurately 3871 tracked and allocated to the City;
3872 2. List of participating Multi-Family and Commercial Food Scraps Customers (with names and 3873 addresses) and each Customer's service level for Multi-Family and Commercial Organic 3874 Materials Collection, and,
3875 3. Identification of new Multi-Family and Commercial Organic Materials Customers reporting 3876 each new Customer's name and address and the Solid Waste, Organic Materials, and 3877 Recyclable Materials service level prior to and after commencement of the new Organic 3878 Materials Collection Service.
3879 4. To prepare the Organic Materials report, Contractor shall obtain information from its 3880 Subcontractor, as needed to comply with the reporting requirements herein. 3881
3882 D. Diversion Level. Tonnage Diverted by Contractor divided by the Tonnage Collected by Contractor, 3883 expressed as a percentage. The report shall state the Tonnage Diverted and Tonnage Collected 3884 as well as the calculated Diversion Level.
3885
3886 E. Gross Revenues and Fee Reports. Pursuant to Section 10.10, a statement itemizing each fee paid; 3887 detailing calculation of each fee; and stating actual gross revenues, by Service Type, for the 3888 monthly period collected from all operations conducted or permitted by this Agreement. 3889
3890 F. Customer Service. Number of calls received from Customers, Generators, or other Person by 3891 category (e.g., missed pickups, scheduled Clean-Up Events, Billing concerns, damage claims, 3892 requests for information, etc.) and detailed call log showing each call received, date and time of 3893 call, call hold time, queue name;
3894
3895 G. Education Activities
3896
3897 1. Public education materials produced and total number of each distributed. 3898 2. Dates, times, and group names of meetings attended. 3899 3. Dates, times, and names of school where presentations were performed. 3900 4. Marketing, outreach, training, and technical assistance provided to Multi-Family and 3901 Commercial Customers for Commercial Recyclable Materials and/or Organic Materials 3902 Collection including list of accounts, activity performed, date of activity, etc. 3903 5. Public education outreach and/or notifications produced and distributed, which support or 3904 are required by AB 1826 and/or Alameda County Waste Management Authority Mandatory 3905 Commercial Recycling Ordinance (Phases 1 and 2).
3906
3907 H. Clean-Up Events
3908
3909 1. Number of Clean-Up Events listed separately for Single-Family, Parcelized Multi-Family, and 3910 Non-Parcelized Multi-Family Customers.

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3911 2. Tonnage of Solid Waste, Bulky Items, Major Appliances, Salvageable Materials, Recyclable 3912 Materials, and Organic Materials Collected listed separately by material type. 3913 3. Diversion level and calculation thereof.
3914
3915 I. Commercial Recyclable Materials Cart Collection. Present report from Recyclable Materials Cart 3916 Contractor documenting the Commercial Customers receiving Recyclable Materials Cart 3917 Contractor’s collection service and a report reconciling this data to Contractor’s billing of 3918 Commercial Recyclable Materials Cart Customers.
3919 J. Overweight Vehicle Reporting. The monthly report must include a summary total of all instances 3920 of overweight Collection vehicles in accordance with the requirements set forth in this 3921 Agreement. This summary must include the number of overweight vehicle instances expressed as 3922 a percentage of the total number of Collection vehicle loads transported during the reported 3923 quarter.
3924
3925 K. Billing Information. The monthly report must include details related to Contractor’s Customer 3926 Billing activities, including but not limited to, amount of billing, amount collected, Bad Debt 3927 accruals, overage fees, contamination fees, and other related details as determined by the City. 3928
3929 9.5 QUARTERLY REPORTS
3930 Quarterly reports shall present the information described in this Section. 3931
3932 A. Monthly Report Data. Present all the monthly report information required by Section 9.4 and 3933 include quarterly averages for all Tonnage-related data and the Diversion Level. 3934
3935 B. Historical Quarterly Data. Show the quarterly average for the past four-quarter average for all 3936 Tonnage data required as part of the monthly reporting requirements (the first three quarters of 3937 the Agreement shall only include the available quarterly information). 3938
3939 C. Account Summary. In table format, the number of Customers for each Rate category. 3940
3941 D. Special Events (if applicable). Name of special event(s), date of event(s), Tonnage of Solid Waste, 3942 Recyclable Materials, and Organic Materials Collected (if applicable), and any suggestions 3943 Contractor proposes for the next event.
3944
3945 E. Holiday Tree Services. In the first quarterly report of the calendar year, Tonnage of Holiday trees 3946 collected at the Drop-Box sites or at drop-off sites. 3947
3948 F. Mail-Sharps Program. Number of Customers that participated in the program each month with 3949 the number of mailings received and the quantity of Sharps received. 3950
3951 G. Summary Assessment. Highlight significant accomplishments and problems. Identify 3952 recommendations and/or plans to improve services.
3953
3954 H. Community Engagement Program. Names of charitable organizations and community events 3955 within the City that Contractor has provided cash sponsorships and complimentary services and 3956 identification of the amount of cash and service provided.

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3957
3958 9.6 ANNUAL REPORTS
3959 Annual reports shall present the information described in this Section. 3960
3961 9.6.1 Quarterly Report Data
3962 Provide all quarterly report data required pursuant to Section 9.5. 3963
3964 9.6.2 Contractor Officers and Board Members
3965 Provide a list of Contractor’s officers and members of its board of directors. 3966
3967 9.6.3 Financial Information
3968 The financial information in this Section 9.6.3 shall be provided by Contractor upon request by City 3969 annually. At such time, Contractor shall deliver to the City Contractor’s financial statements and profit and 3970 loss statements for the most-recently completed Rate Year. Financial statements shall show Contractor's 3971 results of operations, including the specific revenues and expenses in connection with the operations 3972 provided for in this Agreement. The financial statements shall be prepared in accordance with Generally 3973 Accepted Accounting Principles (GAAP) consistently applied and fairly reflecting the results of operation 3974 and Contractor’s financial condition. City shall use its best efforts to maintain the confidentiality of 3975 Contractor’s financial information.
3976
3977 If Contractor engages any Subcontractor(s) as set forth in Section 4.3, Contractorshall require and arrange 3978 for its Subcontractor(s) to provide to the City the financial information requested in this Section 9.6.3 for 3979 the services provided by the Subcontractor(s).
3980
3981 9.6.4 Related-Party Entities
3982 The financial information in this Section 9.6.4 shall be provided by Contractor upon Request by City 3983 annually. At such time, Contractor shall deliver to the City a copy of each Related-Party Entity’s financial 3984 statements (including the balance sheet and profit and loss statements) for the most-recently completed 3985 Rate Year with the exception that such financial information is not required if the cost of services provided 3986 by the Related-Party Entity are specified by this Agreement or regulated by other government contract. 3987 The financial statements of each Related-Party Entity shall show Related Party-Entities’ results of 3988 operations, including the specific revenues and expenses in connection with transactions related to 3989 services provided for in this Agreement. The financial statements shall be prepared in accordance with 3990 Generally Accepted Accounting Principles (GAAP) consistently applied and fairly reflecting the results of 3991 operation and Contractor’s financial condition and shall be certified as accurate by an officer of the 3992 Contractor. Should such certification prove to be inaccurate, Contractor shall be found in material breach 3993 of this Agreement. Contractor shall then be required to provide City with audited annual financial 3994 statements for the Related-Party Entity(ies) prepared in accordance with GAAP and audited in accordance 3995 with GAAS, by a CPA licensed in the State. Contractor shall pay for the audit and such cost shall not be a 3996 reimbursable expense under this Agreement.
3997
3998 If Related-Party Entity transactions are for health and welfare costs or insurance costs, the Contractor’s 3999 obligation to provide financial statements described in the preceding paragraph shall be waived by the 4000 City. Contractor shall provide documentation of costs in the form of invoices for services, industry indices, 4001 or other supporting data that allows the City, in its opinion, to reasonably verify the actual costs for such 4002 services.
4003
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4004 Contractor agrees that all financial transactions with all Related-Party Entities shall be approved in 4005 advance by City in writing and disclosed annually (coinciding with Contractor's annual submittal of 4006 financial statements referred to in Section 9.6.3) to the City in a separate disclosure letter to the City. This 4007 letter shall include, but not be limited to, a general description of the nature of each Related-Party Entity 4008 transaction, or type of (for many similar) transaction, as applicable. Such description shall include for each 4009 (or similar) transaction, amounts, specific Related-Party Entity, basis of amount (how amount was 4010 determined), description of the allocation methodology used to allocate any common costs, and profit 4011 amount. Amounts shall be reconciled to the Related-Party Entity disclosures made in Contractor's annual 4012 financial statements referred to in Section 9.6.3. 4013
4014 At the City's request, Contractor shall provide the City with copies of working papers or other 4015 documentation deemed relevant by the City relating to information shown in the annual disclosure letter. 4016 The annual disclosure letter shall be provided to the City within one hundred twenty (120) calendar days 4017 after the end of the Contractor’s fiscal year.
4018
4019 If the Contractor and City agree on unit prices, fees, rates, or charges for services or transactions between 4020 the Contractor and Related-Party Entity, the Contractor may request written approval from the City to 4021 waive the requirements of this Section.
4022
4023 On the Effective Date of this Agreement, the City and Contractor agree to per-Ton unit prices for the 4024 Processing of Recyclable Materials and Organic Materials by the Contractor’s Related-Party Entity, 4025 Browning-Ferris Industries of California, Inc. (dba BFI Newby Island Recyclery) in accordance with Exhibit 4026 11.1.B; therefore, financial information and disclosures required by this Section 9.6.4 are not required for 4027 Browning-Ferris Industries of California, Inc. unless other transactions occur between Contractor and 4028 Browning-Ferris Industries of California, Inc., which have not been approved by the City. 4029
4030 9.6.5 Operational Information
4031
4032 A. Routes by Service Type
4033
4034 1. Number of routes per day
4035 2. Types of vehicles
4036 3. Crew size per route
4037 4. Number of full-time equivalent routes
4038 5. Number of accounts per route
4039 6. Total hours per Service Type per day and per year 4040 7. Average cost per route
4041 8. Route maps
4042
4043 B. Personnel
4044
4045 1. Organizational chart
4046 2. Job classifications and number of employees (e.g. administrative, Customer service 4047 representatives, drivers, supervisors, educational staff) 4048 3. Annual wages by job classification including benefits 4049 4. Number of full-time equivalent positions for each job classification 4050 5. Number of hours per job classification per day and per year 4051
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4052 C. Productivity Statistics
4053
4054 1. Number of accounts per Service Type
4055 2. Number of setouts per Service Type
4056 3. Tons per route per day
4057
4058 D. Operational Changes
4059
4060 1. Number of routes
4061 2. Staffing
4062 3. Supervision
4063 4. Collection services
4064
4065 F. Equipment. An inventory of equipment in accordance with Section 8.3.4. 4066
4067 G. Billing. Billing review report in accordance with Section 7.2.H. 4068
4069 H. Subcontractor Information. Contractor’s operating information required by this Section 9.6.5, 4070 shall include information from its Subcontractor(s)’ operations. 4071
4072 I. Collection Route Audits. City reserves the right to conduct audits of Contractor’s Collection 4073 routes. Contractor must cooperate with City in connection therewith, including permitting City 4074 employees or agents designated by the City Manager to ride in the Collection Vehicles to conduct 4075 the audits upon advance notice and during normal business hours. Contractor has no 4076 responsibility or liability for the salary, wages, benefits, or worker compensation claims of any 4077 person designated by the City Manager to conduct such audits. 4078
4079 9.6.6 Customer Account Information
4080 As part of the annual reporting requirement, Contractor shall provide the City with detail Customer 4081 account information in tabular format that includes, at a minimum, the following information for each 4082 Customer: account number, service address, billing contact, billing address, phone number, service level 4083 (i.e., number of containers, size of containers, and frequency of Collection), and Rate charged. The 4084 Customer account information for 20-gallon Single-Family Solid Waste Customers shall be provided 4085 separately so the City can easily administer Rate credits (if applicable) to the 20-gallon Single-Family 4086 Customers through the City’s property tax billing procedures. 4087
4088 9.6.7 Materials Characterization Report
4089 Present a report documenting the materials characterization study performed during the quarter, which 4090 shall include, but not be limited to a description of the methodology, type and Tonnage of material 4091 analyzed, allocation percentages and Tonnages by material type, average Contamination Level, and, if 4092 determined, the average Residue Level.
4093
4094 9.6.8 Annual Public Education Plan
4095 Contractor shall submit the Annual Public Education Plan as described in Section 7.1. 4096
4097 9.6.9 Public Education and Information Activities Summary Report 4098 Contractor shall prepare a report that summarizes the public education and information activities 4099 undertaken during the Rate Year, including distribution of mailings, Collection notification tags, City Council/RSA Agenda 349 Tuesday, May 27, 2025
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4100 community information and events, presentations, technical assistance, tours, and other activities related 4101 to the provision of Collection services. The report shall discuss the impact of these activities on Recycling 4102 and Organic Materials Collection program participation and include amounts Collected from Single4103 Family, Parcelized Multi-Family, Non-Parcelized Multi-Family, and Commercial Customers and education, 4104 outreach and monitoring documentation as required by AB341, AB 1826, and Alameda County Waste 4105 Management Authority Ordinance 2012-1.
4106
4107 9.6.10 CalRecycle/StopWaste Reports
4108 Annually, Contractor shall provide information required by CalRecycle and/or StopWaste (also known as 4109 the Alameda County Waste Management Authority and Alameda Source Reduction and Recycling Board). 4110 At a minimum, Contractor shall prepare a report that summarizes the following: (1) Multi-Family and 4111 Commercial Customers participating in the Contractor’s Commercial Recycling and Organics Collection 4112 programs (which may need to be provided as two list by material type); (2) Multi-Family and Commercial 4113 Customers reporting to Contractor that they achieve Recycling via in-house or third party Recycling 4114 services that meets the requirements under Applicable Law; and (3) Commercial Customers without a 4115 known Recycling or Organics program. The foregoing three lists shall at a minimum: (1) state the 4116 Customer's name, address and contact information; (2) indicate whether the Customers are subject to 4117 the Recycling or Organic Materials Recycling requirements under AB 341, AB 1826, and/or Alameda 4118 County Waste Management Authority Ordinance 2012-1; and (3) provide details on the Solid Waste 4119 Collection service Customer receives from Contractor, including the quantity and type of Containers, 4120 frequency of Collection for Solid Waste, Recyclable Materials, and Organic Materials Collection services 4121 (as applicable). The foregoing three lists shall be updated on an annual basis. 4122
4123 Contractor will provide reasonable assistance to City in preparing annual reports to CalRecycle (the 4124 “Electronic Annual Report” or EAR), including but not limited to supplying required data for preparation 4125 of the reports, and completing all required data input. Contractor shall maintain, in form and format 4126 satisfactory to the City, the Online Waste Reporting System, an Implementation Record meeting the 4127 requirements of the SB 1383 Regulations and CalRecycle. Contractor shall be responsible for requesting 4128 information from the City for City-related activities, such as procurement and outreach and education, for 4129 maintenance of the Implementation Record. In the event that CalRecycle requires City to report an 4130 Implementation Schedule and/or Corrective Action Plan to comply with AB 341, AB 1826, SB 1383, SB 4131 1594, and/or other Applicable Laws, Contractor will provide assistance to City in preparing a report, 4132 including Contractor’s policies and procedures related to compliance with AB 341, AB 1826, SB 1383, 4133 and/or other Applicable Laws and how Recyclable Materials or Organic Waste are Collected; a description 4134 of the geographic area, routes, list of addresses served, and a method for tracking contamination; copies 4135 of route audits, copies of notice of contamination; copies of notices, violations, education, and 4136 enforcement actions issued; and copies of educational materials, flyers, brochures, newsletters, website, 4137 and social media.
4138
4139 9.7 EVENT-SPECIFIC REPORT
4140 Event-specific reports shall be submitted following the occurrence of the event as described in this 4141 Section.
4142
4143 A. Report of Unauthorized Dumping. As required by Section 5.12, Contractor shall report: (i) the 4144 addresses of any Premises at which the driver observes that Solid Waste, Recyclable Materials, 4145 and/or Organic Materials is accumulating; and (ii) the address, or other location description, at 4146 which Solid Waste, Recyclable Materials, and/or Organic Materials has been dumped in an City Council/RSA Agenda 350 Tuesday, May 27, 2025
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4147 apparently unauthorized manner. The report shall be delivered to the City within five (5) Business 4148 Days of such observation.
4149
4150 B. Hazardous Waste. As required by Section 8.6, the Contractor shall notify the City of any 4151 Hazardous Waste identified in Containers or left at any Premises within 24 hours of identification 4152 of such material.
4153 ARTICLE 10.
4154 FRANCHISE FEES AND OTHER FEES
4155
4156 10.1 GENERAL
4157 Contractor shall remit the Franchise Fees described in this Section to City on a monthly basis as described 4158 in this Article 10. Contractor may recover the fees described in this Article through the Maximum Rates 4159 established by Contractor that are charged to Customers. The City agrees to waive the Franchise Fees and 4160 other City fees defined in Article 10 on Gross Rate Revenues generated by the Contractor’s provision of 4161 Construction and Demolition Debris Collection services. 4162
4163 10.2 FRANCHISE FEE
4164 In consideration of the exclusive rights provided Contractor herein, Contractor shall include in 4165 Contractor’s Compensation Application and Maximum Rates established by Contractor a Franchise Fee to 4166 be paid to the City each month. The City shall provide Contractor direction on the amount of said Franchise 4167 Fee to be included in Contractor’s Compensation Application and Maximum Rates established by 4168 Contractor.
4169
4170 A. Method for Contractor Billings and Receipts. Contractor shall remit Franchise Fee payments each 4171 month to City in an amount equal to one-twelfth (1/12) of the Franchise Fee included in 4172 Contractor’s Compensation Application and Maximum Rates established by Contractor for 4173 Commercial, Multi-Family and Drop-Box Customers and approved by City. The parties agree that 4174 the total City Fees for the Commercial, Multi-Family and Drop-Box Customers shall be fifty-eight 4175 percent (58.0%) of the total City Fees approved for that Rate Year and included in Maximum Rates 4176 established by Contractor. For Residential Customers, Contractor shall remit Franchise Fee 4177 payments each month to the City in an amount equal to the percentage of Franchise Fees included 4178 in Contractor’s Maximum Rates and received by Contractor during the preceding month. 4179
4180 B. Method to Remit to City Recyclable Materials Cart Contractor’s Monthly Billings. Contractor 4181 shall remit all revenue received from Residential Customers for Recyclable Materials Cart 4182 Contractor’s Maximum Rates included in Contractor’s monthly Billings to Customers monthly to 4183 the City.
4184
4185 C. Fee Disputes. In the event of any disputes between the Contractor and the City with respect to 4186 the fees described in this Article, the City shall provide the Contractor with written objection 4187 describing the dispute amount. The City shall state its objections in writing with reference to the City Council/RSA Agenda 351 Tuesday, May 27, 2025
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4188 applicable portion(s) of the report and its reasons then known for its dispute. The Parties agree 4189 to meet and confer regarding any such dispute.
4190
4191 In the event any City imposed fee (hereinafter “CIF”) is determined by a court of final jurisdiction 4192 to be excessive, invalid, or unenforceable, then: (i) Contractor shall not charge or collect the future 4193 portion of such CIF; (ii) to the extent the Customers are entitled to a reimbursement of any portion 4194 of such CIF already paid by Contractor to the City, the City shall reimburse Contractor in the 4195 amount of such CIF previously remitted to City, thereafter, Contractor shall directly reimburse all 4196 Customers entitled to reimbursement in the amount attributable to each Customer account. In 4197 no event shall Contractor retain any portion of the fees reimbursed by City; (iii) to the extent the 4198 Customers are entitled to a reimbursement of such CIF, and City is required by a court to directly 4199 reimburse Customers, Contractor shall assist City in identifying all Customers entitled to a 4200 reimbursement, quantifying the reimbursement amount attributable to each Customer account, 4201 and obtaining and providing to City any other information needed to satisfy the obligations 4202 imposed by a court; and (iv) City and Contractor will, within thirty (30) days following such court 4203 decision, meet and confer to negotiate in good faith and using reasonable efforts to attempt to 4204 agree on modifications to the Agreement to reflect any required reduction in City Fees. 4205
4206 10.3 OTHER CITY FEES
4207 Contractor shall annually include in the Maximum Rates established by Contractor and approved by City, 4208 City Fees as directed and adjusted by City.
4209
4210 10.4 AGREEMENT EXTENSION FEE
4211 For Rate Years Twenty-One (21) through Thirty, (30) Contractor shall pay an Agreement extension fee of 4212 ninety-three thousand seven-hundred and fifty dollars ($93,750) per year, payable annually on July 1st of 4213 each Rate Year with the exception that the Agreement extension fee for Rate Year Twenty-One (21) shall 4214 be paid no later than ten (10) Business Days following the Commencement Date. 4215
4216 10.5 PAYMENT SCHEDULE AND LATE FEES
On or before the 20th 4217 day of each month, during the Term of this Agreement, Contractor shall remit to the 4218 City all City Fees and Recyclable Materials Cart Contractor’s Maximum Rates collected in Residential 4219 Billings, with the exception of the City’s Agreement Extension Fee which shall be remitted to City annually 4220 on July 1. If such remittance is not paid to the City on or before the 20th day of any month when due (or 4221 not paid by July 1 or, in the case of the Agreement extension fee, not paid within ten (10) Business Days 4222 of the Commencement Date), Contractor shall pay late fees equal to two percent (2.0%) of the amount 4223 owing for that month; plus an additional two percent (2.0%) owing on any unpaid balance for each 4224 following thirty (30) calendar day period the fee remains unpaid, in addition to the amount owed to City. 4225 After expiration or termination of the Agreement, Contractor shall continue to pay all City Fees due to 4226 City including those established based on Gross Rate Revenues received from Customers after the end 4227 date of the Agreement.
4228
4229 Each monthly remittance to City shall be accompanied by a statement itemizing each fee paid; detailing 4230 calculation of each fee; and stating actual Gross Rate Revenues, by Service Type, for the monthly period 4231 collected from all operations conducted or permitted by this Agreement; and stating actual Recyclable 4232 Materials Cart Contractor revenue included in Contractor’s Billings.

Union City City CouncilMay 27, 2025

Union City City Council
May 27, 2025