ATTACHMENT C
1. Section 7.02 of ARTICLE 7 “REQUIREMENTS FOR OPERATIONS” of the Current Franchise Agreement is hereby amended in its entirety to read as follows:
7.02 VEHICLES
a. General. Contractor shall provide a fleet of Collection vehicles sufficient in number and capacity to efficiently perform the work required by the Agreement in strict accordance with its terms. Contractor shall have available sufficient back-up vehicles to respond to mechanical breakdowns, complaints and emergencies.
b. Age. Contractor shall not introduce a used vehicle into service in City as a frontline collection vehicle that is more than five (5 ) years of age when introduced. Contractor shall not operate a vehicle in City as a regular route collection vehicle that is more than seven (7) years of age unless said vehicle is exceptionally well- maintained and has been accepted by the City.
Contractor shall not operate a vehicle in City more than ten (10) years of age as a regular route collection vehicle. Contractor shall be permitted to use vehicles older than the above limitations for periods up to thirty (30) days as back-ups for regular route vehicles when such vehicles are out of service for repair or maintenance or to supplement the regular collection vehicles for special programs such as community clean-ups or emergency situations.
c. Vehicle Emissions. Contractor shall comply with all applicable air quality rules and regulations in its vehicle deployment. During the Term of this Agreement or any extension thereof, all of Contractor's newly acquired collection vehicles shall be powered by Compressed Natural Gas ("CNG") or Liquefied Natural Gas ("LNG") or by such other fuel that meets or exceeds the pollution and mileage performance standards of CNG or LNG- powered vehicles for the model year that the acquisition is made. If CNG fueled equipment is purchased, Contractor agrees to purchase CNG exclusively from the CNG fueling stations located on D Street and McArt Blvd. (the "Exclusive Stations"). Fuel will be priced competitively at market rates. In the event these Exclusive Stations become inoperative for any amount of time or the Exclusive Stations cannot efficiently and or safely accommodate the Contractor's fleet, the Contractor may utilize other fueling facilities until conditions at the Exclusive Stations are corrected.
If Contractor chooses to provide a permanent vehicle fueling alternative to City fueling facilities, Contractor agrees to compensate the City at a rate of Two Hundred Seventy-Six Thousand Dollars ($276,000.00) per fiscal year to offset lost revenue generated at City fueling facilities (“Annual Buyout”).
Contractor’s Annual Buyout payments to the City will be increased each fiscal year using the same CPI formula specified in Article 10.06, with the first increase becoming effective July 1, 2026, and will remain in effect for as long as the City offers CNG fueling methods consistent with State - mandated emissions compliance requirements. Should Contractor exercise the Annual Buyout option, any incidental CNG purchases from Exclusive
Stations shall be at the City’s effective CNG rate charged to all customers and not subject to market rate comparison reductions previously provided to Contractor pursuant to the City’s letter to Contractor dated October 16, 2018.
Contractor shall be permitted to operate non-Alternative Fuel Vehicles for periods up to thirty (30) days as back-ups for regular route vehicles when such vehicles are out of service for repair or maintenance or to supplement the regular Collection vehicles for special programs such as community clean-ups or emergency situations.
d. Specifications. All vehicles operated in City by Contractor shall: (i) be registered with the California Department of Motor Vehicles; (ii) have leak proof bodies designed to prevent leakage, spillage, and/or overflow; and (iii) comply with California Environmental Protection Agency noise emission and California Air Resources Board air quality regulations. e. Identification. Contractor's name, local telephone number and vehicle identification number designated by Contractor shall be prominently displayed on the sides and rear of each Collection vehicle. f. Condition and Maintenance. Contractor shall maintain all of its vehicles and equipment used in providing service under this Agreement in a good, safe, neat, clean, and operable condition at all times.
g. Operation. Vehicles shall be operated in compliance with Federal, State and local laws and regulations.
h. Vehicle Inventory and Replacement Plan. Annually, on or before October 1st of each year, Contractor shall provide City with an inventory of all collection vehicles currently operating in City listing (i) Contractor's vehicle identification number, (ii) year manufactured, (iii) make, (iv) body style, and (v) fuel type. Contractor shall include its collection vehicle replacement plan with the vehicle inventory.
1. Section 7.02 of ARTICLE 7 “REQUIREMENTS FOR OPERATIONS” of the Current Franchise Agreement is hereby amended in its entirety to read as follows:
7.02 VEHICLES
a. General. Contractor shall provide a fleet of Collection vehicles sufficient in number and capacity to efficiently perform the work required by the Agreement in strict accordance with its terms. Contractor shall have available sufficient back-up vehicles to respond to mechanical breakdowns, complaints and emergencies.
b. Age. Contractor shall not introduce a used vehicle into service in City as a frontline collection vehicle that is more than five (5 ) years of age when introduced. Contractor shall not operate a vehicle in City as a regular route collection vehicle that is more than seven (7) years of age unless said vehicle is exceptionally well- maintained and has been accepted by the City.
Contractor shall not operate a vehicle in City more than ten (10) years of age as a regular route collection vehicle. Contractor shall be permitted to use vehicles older than the above limitations for periods up to thirty (30) days as back -ups for regular route vehicles when such vehicles are out of service for repair or maintenance or to supplement the regular collection vehicles for special programs such as community clean -ups or emergency situations.
c. Vehicle Emissions. Contractor shall comply with all applicable air quality rules and regulations in its vehicle deployment. During the Term of this Agreement or any extension thereof, all of Contractor's newly acquired collection vehicles shall be powered by Compressed Natural Gas ("CNG") or Liquefied Natural Gas ("LNG") or by such other fuel that meets or exceeds the pollution and mileage performance standards of CNG or LNG- powered vehicles for the model year that the acquisition is made. If CNG fueled equipment is purchased, Contractor agrees to purchase CNG exclusively from the CNG fueling stations located on D Street and McArt Blvd. (the "Exclusive Stations"). Fuel will be priced competitively at market rates. In the event these Exclusive Stations become inoperative for any amount of time or the Exclusive Stations cannot efficiently and or safely accommodate the Contractor's fleet, the Contractor may utilize other fueling facilities until conditions at the Exclusive Stations are corrected.
If Contractor chooses to provide a permanent vehicle fueling alternative to City fueling facilities, Contractor agrees to compensate the City at a rate of Two Hundred Seventy-Six Thousand Dollars ($276,000.00) per fiscal year to offset lost revenue generated at City fueling facilities (“Annual Buyout”).
Contractor’s Annual Buyout payments to the City will be increased each fiscal year using the same CPI formula specified in Article 10.06, with the first increase becoming effective July 1, 2026, and will remain in effect for as long as the City offers CNG fueling methods consistent with State - mandated emissions compliance requirements. Should Contractor exercise the Annual Buyout option, any incidental CNG purchases from Exclusive
Stations shall be at the City’s effective CNG rate charged to all customers and not subject to market rate comparison reductions previously provided to Contractor pursuant to the City’s letter to Contractor dated October 16, 2018.
Contractor shall be permitted to operate non-Alternative Fuel Vehicles for periods up to thirty (30) days as back-ups for regular route vehicles when such vehicles are out of service for repair or maintenance or to supplement the regular Collection vehicles for special programs such as community clean-ups or emergency situations.
d. Specifications. All vehicles operated in City by Contractor shall: (i) be registered with the California Department of Motor Vehicles; (ii) have leak proof bodies designed to prevent leakage, spillage, and/or overflow; and (iii) comply with California Environmental Protection Agency noise emission and California Air Resources Board air quality regulations. e. Identification. Contractor's name, local telephone number and vehicle identification number designated by Contractor shall be prominently displayed on the sides and rear of each Collection vehicle. f. Condition and Maintenance. Contractor shall maintain all of its vehicles and equipment used in providing service under this Agreement in a good, safe, neat, clean, and operable condition at all times.
g. Operation. Vehicles shall be operated in compliance with Federal, State and local laws and regulations.
h. Vehicle Inventory and Replacement Plan. Annually, on or before October 1st of each year, Contractor shall provide City with an inventory of all collection vehicles currently operating in City listing (i) Contractor's vehicle identification number, (ii) year manufactured, (iii) make, (iv) body style, and (v) fuel type. Contractor shall include its collection vehicle replacement plan with the vehicle inventory.