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HomeMy WebLinkAboutAgenda Report - August 16, 2023 H-01CITY OF AGENDA ITEM Him I r �i/ � CALIFORNIA COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Amended and Restated Franchise Agreement with USA Waste Service of California, Inc., dba Central Valley Waste Services, for Solid Waste Collection, Recycling, and Organic Waste Collection and Processing Services in the City of Lodi MEETING DATE: PREPARED BY: August 16, 2023 Public Works Director RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute Amended and Restated Franchise Agreement with USA Waste Service of California, Inc., dba Central Valley Waste Services, for solid waste collection, recycling, and organic waste collection and processing services in the City,of Lodi. BACKGROUND INFORMATION: USA Waste Service of California, Inc., dba Central Valley Waste Services (WM), has provided excellent service with reasonable rates to the City since 1988. Under the existing franchise agreement, WM has the option of renewal for an additional seven years under the current contract terms by giving notice no later than the seventh anniversary of the commencement date of January 1, 2009. Thereafter, at the City's option, and with WM concurrence, the agreement is renewable for successive seven-year increments. On April 7, 2010, the agreement was amended to provide WM with one additional option to extend. This option gave WM the unilateral option to extend the agreement an additional seven years commencing on January 1, 2024 and ending December 31, 2030, by giving notice to the City no later than December 31, 2022. Early in 2022, staff began negotiations with WM on an amended franchise agreement. New regulations associated with Senate Bill 1383 (SB 1383) prompted the early agreement negotiations. The implementation of the mandatory residential food waste collection, required under SB 1383, will result in additional costs to both the City and WM, prompting amendments to the current agreement. In subsequent meetings with City Council, staff and WM outlined a number of changes and new programs, and have negotiated an amended and restated agreement consistent with the discussions held at those meetings. The form of the new franchise agreement is similar to the existing agreement. Incorporated into this new agreement are all of the existing programs and services with some minor enhancements to those programs, services and costs, as outlined below: • New SB1383 Residential Rate Structure • Annual payment of $125,000 for one full time employee to support City's CalRecycle programs, indexed annually • Increase Street Maintenance Fee paid to the City by $330,000, for a total of $1,122,990.78 annually, to maintain roadways, indexed annually • New Downtown Maintenance Fee of $100,000 paid to City annually, indexed annually APPROVED: :...: Stephen Schwabauer, City Manager \\cvcfilvC2\pubwks$\WP\Solid Waste\CCCentral Valley Waste Agreement Sept 2023.doc 7/25/2023 Adopt Resolution Authorizing City Manager to Execute Amended and Restated Franchise Agreement with USA Waste Service of California, Inc., dba Cenral Valley Waste Services, for Solid Waste Collection, Recycling, and Organic Waste Collection and Processing Services in the City of Lodi August 16, 2023 Page 2 • One-time administrative payment of $1,000,000 made to the City in annual payments of $250,000 for the first four years of the new term • Residential low volume 20 -gallon carts will be replaced with new SB 1383 color -compliant 35 -gallon carts, beginning on or before March 1, 2024 (20 -gallon Legacy Rate applies) • Residential weekly organics (green + food waste) collection beginning on or before March 1, 2024 • Remaining residential and commercial carts replaced with new SB 1383 color -compliant carts beginning on or before March 1, 2024 • Implement Smart Truck technology to assist with SB 1383 route reviews and audits for contamination monitoring and enforcement • Outreach and education programs for new services and ongoing CalRecycle requirements The amended agreement will be effective September 1, 2023, and replaces the existing agreement. The term of tie agreement is seven years with an option to renew at WM discretion for one five-year period at the end of the te-m. Thereafter, at the City's option, the agreement would be renewable in seven-year increments. Staff recommends authorizing City Manager to execute Amended and Restated Franchise Agreement with USA Waste Service of California, Inc., dba Central Valley Waste Services, for solid waste collection, recycling, and organic waste collection and processing services in the City of Lodi. STRATEGIC VISION: 8. Public Well -Being FISCAL IMPACT: The amended agreement is needed to address the unfunded State mandates associated with SB1383. If the City does not comply, the City will be subject to fines and administrative fees of up to $10,000 per day per violation. FUNDING AVAILABLE: Not applicable. J�=ao Charles E. Swim ey, Jr Public Works Director CES.TG1cd Attachment cc: USA Waste Service of California, Inc., dba Central Valley Waste Services \\cvcfilvC2\pubwks$\WP\Solid Waste\CCCentral Valley Waste Agreement Sept 2023.doc 7/25/2023 CITY OF LODI PUBLIC WORKS DEPARTMENT AMENDED AND RESTATED AGREEMENT FOR SOLID WASTE COLLECTION, RECYCLING AND ORGANIC WASTE COLLECTION AND PROCESSING SERVICES IN THE CITY OF LODI BY AND BETWEEN THE CITY OF LODI AND USA WASTE OF CALIFORNIA, INC., dba CENTRAL VALLEY WASTE SERVICES, A WASTE MANAGEMENT COMPANY. THIS AMENDED AND RESTATED AGREEMENT (this "Agreement") is made and entered into this _ day of , 2023, by and between the CITY OF LODI, a California municipal corporation hereinafter referred to as "CITY" and USA WASTE OF CALIFORNIA, INC., a Delaware Corporation authorized to do business in California and DBA CENTRAL VALLEY WASTE SERVICES, hereinafter referred to as "WM." WITNESSETH WHEREAS, WM and the City are parties to the Agreement for Solid Waste Collection, Recycling and Green Waste Collection and Processing Services in the City of Lodi dated July 7, 2008 (attached as Exhibit "A" hereto), as subsequently modified by the Addendum to Solid Waste Franchise dated April 7, 2010 (attached as Exhibit "B" hereto), and Extension dated February 26, 2015 (attached as Exhibit "C" hereto), which are collectively referred to herein as the "Ori incl Agreement"; and WHEREAS, the City and WM now wish to amend and restate the terms of the Original Agreement to account for expanded services required for organic waste collection services under Senate Bill 1383 ("Sl3 1383 'as defined below); and WHEREAS, WM currently provides solid waste management services to City and WM has represented and warranted to City that it has the experience, responsibility, and qualifications to provide current services and organic waste collection services to the residents and businesses in the franchise area. Therefore, City finds and determines that the public interest, health, safety and well-being would be best served if WM were to continue to provide such services and the new organic waste collection services to residents and businesses; and WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 "("AB 939"), has declared that it is within the public interest to authorize local agencies to adequately provide for solid waste handling within their jurisdictions, and has established a solid waste management process to implement plans for source reduction, reuse and recycling as part of their integrated waste! management practices; and WHEREAS, City and WM are mindful of the provisions of the laws governing the safe collection, transport, recycling and disposal of solid and organic waste, including AB 939, SB 1383, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation and Liability Act; and Page 1 of 35 WHEREAS, City and WM desire to enter into a new agreement to provide for specified solid waste collection, curbside recyclable collection and processing, neighborhood cleanup collection, organic waste collection and processing, and illegal dumping remediation services. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises herein, the parties hereto agree that the Original Agreement is hereby amended and restated in its entirety as follows: Section 1 INCORPORATION OF ABOVE RECITALS The foregoing recitals are hereby incorporated into this Agreement by this reference. Section 2 DEFINITIONS For purposes of this Agreement, the following definitions apply in addition to those defined in the Lodi Municipal Code: a. "Applicable Law" means all Federal, State, County, and local laws, regulations, rules, orders, judgments, decrees, permits, approvals, or other requirement of any governmental agency having jurisdiction over the Collection, Transportation, Processing, and Disposal of Discarded Materials that are in force on the Effective Date and as may be enacted, issued, or amended during the Term of this Agreement. Applicable Law includes, but is in no way limited to, AB 939, AB 341, AB 1826, and SB 1383 and its corresponding regulations. b. "Approved Disposal Facility_" means the North County Landfill, which is owned and operated by San Joaquin County. c. "Approyed_Facilitics" means any one of or any combination of the following: Approved Disposal Facility, Approved Organic Waste Processing Facility, Approved Source Separated Recyclable Materials Processing Facility, and an Approved Transfer Facility, each of which are defined in this Article. d. "Approved Organic Waste Processing Facility" means all of the following locations: the Central Valley Compost, located at 916 Frewert Road, Lathrop, CA 95330, Davis Street Resource Recovery Complex, located at 2615 Davis Street, San Leandro, CA 94577, and Altamont Landfill CASP, located at 10840 Altamont Pass Rd., Livermore, CA 94550. e. "Approved Source Separated Recyclable Materials Processing; Facility" means the Lodi Material Recovery and Transfer Station, located at 1333 E. Turner Road, Lodi, CA 95240. f. "Approved Transfer Facility" means the Lodi Material Recovery and Transfer Station, located at 1333 E. Turner Road, Lodi, CA 95240. g. "Bin" means a watertight metal or heavy plastic receptacle with a hinged plastic lid and a Page 2 of 35 capacity of between one (1) and eight (8) cubic yards, designed or intended to be mechanically dumped into a packer type truck. Bins may also include compactors that are owned or leased by a Customer, if WM confirms they are compatible. h. "Blue Container" has the same meaning as in 14 CCR Section 18982.2(a)(5), as may be amended from time to time, and shall be used for the purpose of storage and Collection of Source Separated Recyclable Materials. i. "Cart" means an industry standard receptacle for placement of Discarded Materials for Collection, in a range of sizes including approximately 20, 35, 64, or 96 gallons. A Cart will have wheels, a handle for ease of movement, a fitted, attached lid, and it is designed to be dumped mechanically into a Solid Waste, Organic Waste or Recyclable Materials collection vehicle. j. "Collect/Collection" means the act of taking physical possession of Discarded Materials at Single -Family or Commercial Businesses within the City, and from City facilities, and transporting the Discarded Materials to an Approved Facility for Processing, Transfer, or Disposal. k. "Commercial Customers", "Commercial business" or "Commercial" means all commercial (non -manufacturing) enterprises within the city limits except Industrial Customers, or a Multi -Family Residential Dwelling, or as otherwise defined in 14 CCR Section 18982(a)(6), as may be amended from time to time. However, a Multi -Family Residential Dwelling that consists of fewer than five units is not a Commercial business for purposes of implementing this ordinance. 1. "Coniliost" means the product resulting from the controlled biological decomposition of organic Solid Wastes that are Source Separated from the municipal Solid Waste stream, or which are separated at a centralized facility, as defined in 14 CCR Section 17896.2(a)(4), which may be amended from time to time. in. "Construction and Demolition Debris W&U)" means the nonhazardous waste building material, inerts, soil, packaging, yard trimmings, rubble, and other used or Discarded Materials resulting from construction or demolition. n. "Container" means a Bin or Cart. o. "Customer" means an individual or entity that receives WM's Blue Container, Gray Container, and Green Container for Collection services. The Customer may be either the occupant, owner, or property manager of the Premises. All Premises (e.g., Commercial Businesses and Single -Family) in the City that generate Solid Waste shall be required by the City to be a Customer of WM, unless an exception in Section 3 applies. P. "Discarded Materials" are a form of Solid Waste, and shall be regulated as such. For purposes of this Agreement, material is deemed to have been discarded, without regard to whether it is destined for Recycling or Disposal, and whether or not is has been separated from other Solid Wastes, in all cases where a fee or other compensation, in any form or Page 3 of 35 amount, is directly or indirectly solicited from, or, levied, charged, or otherwise imposed on, or paid by, the generator or Customer in exchange for handling services. As used herein, handling services include, without limitation, the Collection, removal, transportation, delivery, and Processing and/or Disposal of the material. Handling services specifically exclude the generator's use of a third party to assist the generator with on-site separation of materials into and among WM-provided Containers to facilitate recovery and minimize Contamination. Discarded Materials do not include Edible Food that is recovered for human consumption and is not discarded. For the purposes of this Agreement, Discarded Materials include Source Separated Recyclable Materials, Source Separated Organic Waste, Gray Container Waste, and C&D once the materials have been placed in Containers for Collection. q. "Disposal (Dispose)" means the final disposition of any Discarded Materials Collected by WM or residue from WM's Processing activities at a permitted landfill or other permitted Solid Waste facility. r. "Diversion (Divert).' means activities which reduce or eliminate Discarded Materials from Disposal, including, but not limited to, source reduction, reuse, salvage, Recycling, and composting. s. "Edible Food" in regards to "Edible Food Recovery" means food intended for human consumption. t. "Electronic Waste" means discarded electronics equipment such as cell phones, computers, monitors, televisions, and other items containing cathode ray tubes (CRT's). u. "Excluded Waste" means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated Waste, volatile, corrosive, Medical Waste, infectious, regulated radioactive waste, and toxic substances or material that an Approved Facility operator(s) reasonably believe(s) would, as a result of or upon acceptance, Transfer, Processing, or Disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be Disposed of in Class III Landfills or accepted at an Approved Facility by permit conditions, waste that in WM's reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose WM or the City to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in residential municipal Solid Waste after implementation of programs for the safe collection, Processing, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. v. "Food Scraps" means all nonedible food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps. w. "Gray Container" has the same meaning as in 14 CCR Section 18982(a)(28) and shall be Page 4 of 35 used for the purpose of storage and Collection of Gray Container Waste. x. "Gray Container Waste" means Solid Waste such as trash and other non -Recyclable Material that is collected in a Gray Container that is part of the City's three -Container Organic Waste Collection service that prohibits the placement of Organic Waste in the Gray Container as specified in 14 CCR Sections 18984.1(a) and (b) or as otherwise defined in 14 CCR Section 17402(a)(6.5), as each may be amended from time to time. For the purposes of this Agreement, Gray Container Waste includes carpet and textiles. Y. "Green ContainW' has the same meaning as iii 14 CCR Section 18982(a)(29), as may be amended from time to time, and shall be used for the purpose of storage and Collection of Source Separated Organic Waste. z. "Green Waste" means all tree and plant trimmings, grass cuttings, dead plants, weeds, leaves, branches, and similar materials that fit into an Organic Waste Cart, but not including Excluded Waste or items with a diameter greater than 10 inches. aa. "Household Hazardous Waste" means any Hazardous Waste generated incidental to owning or maintaining a place of residence, but does not include any waste generated in the course of operating a business concern ata residence. (California Health and Safety Code Division 20, Chapter 6.5, §25218(1)(e)). bb. "Hazardous Substance" means any of the following: (a) any substance defined, regulated or listed (directly or by reference) as "hazardous substances", "hazardous materials", "hazardous wastes", "toxic waste", "pollutant" or "toxic substances" or similarly identified as hazardous to human health or the environment, in or pursuant to (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC Section 9601, et seq.; (ii) the Hazardous Materials Transportation Act, 49 USC Section 5101, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC Section 6901, et seq.; (iv) the Clean Water Act, 33 USC Section 1251, et seq.; (v) California Health and Safety Code Sections 25115-25117, 25249.8, 25281, and 25316; (vi) the Clean Air Act, 42 USC Section 7401, et seq.; and (vii) California Water Code Section 13050; (b) any amendments, rules, or regulations promulgated thereunder to such enumerated statutes or acts currently existing or hereinafter enacted; and (c) any other hazardous or toxic substance, material, chemical, waste, or pollutant identified as hazardous or toxic or regulated under any other applicable federal, State, and local environmental laws currently existing or hereinafter enacted, including without limitation, friable asbestos, polychlorinated biphenyl ("PCBs"), petroleum, natural gas and synthetic fuel products, and by-products. cc. "Hazardous Waste" means any waste which meets the definitions set forth in 22 CCR Section 66261.3, et seq. and is required to be managed; or as otherwise defined in 14 CCR Section 17402(a)(7). Hazardous Waste includes hazardous wood waste, which means wood that falls within the definition of "treated wood" or "treated wood waste" in 22 CCR Section 67386.4, or as otherwise defined in 14 CCR Section 18982(a)(30.5). dd. "Industrial Customer" means all manufacturing enterprises who generate Industrial waste Page 5 of 35 within the city limits except Commercial Customers. The city manager or other designee shall determine whether a Customer is "Industrial" or "Commercial." ee. "Industrial Waste" means Solid Waste originating from manufacturing facilities and factories within the city limits including construction and demolition projects. Industrial waste also means Solid Waste produced by any person, firm, or corporation primarily engaged in the business of Processing and manufacturing for the purpose of wholesale. ff. "Multi 1 amily or Multi -Family Dwelling Unit" means residential Premises with five (5) or more dwelling units. However, Multi -Family Premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses. References to "Multi -Family Dwelling Unit" refer to an individual residential unit of the Multi -Family Premises. gg. "Organic Wast:" means Food Scraps and Green Waste. Unless otherwise agreed in writing by WM and the City, Organic Waste does not include Edible Food or Compostable Plastics, as that term is described in 14 CCR Section 18984.1(a)(1)(A) or 18984.2(a)(1)(C), as may be amended from time to time. hh. "Overage" means materials exceeding its Container's intended capacity such that the lid is lifted (or would be lifted if lowered) or materials placed on top of, or in the immediate vicinity of, a Container, in bags, or otherwise. ii. "Premises" means a tract of land with or without habitable buildings or appurtenant structures. jj. "Process, Processed, or Proc.essin " means the controlled separation, recovery, volume reduction, conversion, or Recycling of Solid Waste including, but not limited to, organized, manual, automated, or mechanical sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or includes the use of conveyor belts, sorting lines, or volume reduction equipment, or as otherwise defined in 14 CCR Section 17402(a)(20). kk. "Prohibited Container Contaminants" or "Contamination" means the following: (i) Discarded Materials placed in the Blue Container that are not Recyclable Materials; (ii) Discarded Materials placed in the Green Container that are not Organic Waste; (iii) Discarded Materials placed in the Gray Container that are Recyclable Materials or Organic Waste; and (iv) Excluded Waste placed in any Container. 11. "Refuse" means any and all discarded items and substances of every kind, including salvageable or Recyclable Materials, and garden wastes, but not including sewage, septic tank contents, sand trap contents, grease trap contents, infectious wastes or Hazardous Wastes as defined by state and federal law. mm. "Recyclable Materials" means Refuse consisting of plastic bottles, tin, steel and aluminum cans, glass bottles and jars, newspapers, brown paper bags, corrugated cardboard, chipboard, colored paper and bags, magazines, white and colored paper, as well Page 6 of 35 as all other materials included in the State CRV program. Categories of Recyclable Materials may be temporarily Disposed if there is no viable outlet for such material and they cannot be reasonably stockpiled by WM. In such event, WM will provide City with documentation showing a lack of viable outlet and inability to reasonably stockpile for future Recycling. nn. "RecyclelRecycling" means the process of Collecting, sorting, cleansing, treating, and reconfiguring materials for the purpose of returning them to the economic mainstream in the form of raw material for new, reused, or reconstituted products that meet the quality standards necessary to be used in the marketplace. Recycling includes processes deemed to constitute a reduction of landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or transformation as defined in Public Resources Code Section 40201. oo. "SB 1383" means Senate Bill 1383 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants as may be amended, supplemented, superseded, and replaced from time to time. pp. "SB 1383 Regulations" means the Short -Lived Climate Pollutants (SLOP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR. qq. "Single -Family or Single -Family Dwelling" means any residential Premises with less than five (5) dwelling units. rr. "Solid Waste" all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, Refuse, paper, rubbish, ashes, Industrial Wastes, Construction and Demolition Debris, abandoned vehicles and parts thereof, discarded home and Industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not Hazardous Waste, manure, vegetable or animal Solid and semisolid Wastes, and other discarded Solid and semisolid Wastes, as defined in PRC Section 40191, with the exception that Solid Waste does not include any of the following wastes: i. Hazardous Waste, as defined in PRC Section 40141. ii. Radioactive waste regulated pursuant to the Radiation Control Law (Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of the Health and Safety Code). iii. Medical waste regulated pursuant to the Medical Waste Management Act (Part 14, commencing with Section 117600, of Division 104 of the Health and Safety Code). Untreated medical waste shall not be Disposed of in a Solid Waste Landfill, as defined in PRC Section 40195.1. Medical waste that has been treated and deemed to be Solid Waste shall be regulated pursuant to PRC, Division 30. ss. "Source Separated" means materials, including commingled Recyclable Materials, that Page 7 of 35 have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or Processing those materials for Recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the Agreement, Source Separated shall include separation of materials by the generator, property owner, property owner's employee, property manager, or property manager's employee into different Containers for the purpose of Collection such that Source Separated materials are separated from Gray Container Waste and other Solid Waste for the purposes of Collection and Processing. tt. "Transfer" means the act of transferring Discarded Materials Collected by WM from WM's Collection vehicles into larger vehicles at an Approved Transfer Facility for transport to other Approved Facilities for Processing or Disposing of such materials. Transfer allows for removal of materials excluded or prohibited from handling at the Approved Transfer Facility (e.g., removal of Hazardous Waste). uu. "Universal Waste" means electronics (VCR's, cell phones, radios), batteries, mercury thermostats, fluorescent lights, mercury thermometers, and other products containing mercury or other heavy metals. Section 3 SERVICE AREA a. Exclusive Services. The City does hereby grant to WM, and WM shall have the exclusive duty, right and privilege to Collect and Dispose or Process all Solid Waste (including Source Separated Recyclable Materials and Source Separated Organic Waste) generated, deposited, accumulated or coming to exist at a Premises in the City (collectively, the ")exclusive Services"). Except as otherwise provided in this Section 3, all Commercial, Multi -Family and Single -Family Premises within the City shall be required by City to utilize the Collection services of WM as provided herein. All Single -Family Premises shall establish Collection services separately and two or more Single Family Premises shall not be permitted to share Collection services under a single account. b. Industrial Customers. Industrial Waste services are not included in the Exclusive Services provided for under this Agreement. Industrial Waste may be hauled by any holders of a City -issued Industrial Waste Hauler's Permit that have paid the current fee listed in the City's Industrial Waste Haulers Permit Fee structure. Industrial Waste Hauler permittees would obtain, at their own expense, all permits and licenses required by Federal, State, and local laws and ordinances and maintain the same in full force throughout the term of the permit. c. Personal Handl in of f Waste. Notwithstanding Section 3(a), nothing in this Agreement shall prevent any owner, occupant or tenant of a Premises from personally handling, hauling, or transporting Solid Waste generated by or from such Premises for purposes of Disposing of the same at an authorized Disposal area or Transfer station, nor shall anything in this Agreement affect or limit the right of any person to sell Recyclable Materials or Organic Page 8 of 35 Waste (i.e., receipt of a net payment) to any person lawfully engaged in the recycling business in the City or to donate Recyclable Material or Edible Food to any bona fide charity, provided that all such materials are separated by the generator. d. Exclusive Right Enforcement. The City shall use good faith efforts to protect and enforce the exclusive rights of WM through appropriate ordinances and enforcement of those ordinances against third party violators. WM may request that the City enforce the exclusivity provision of this Agreement against third party violators, including but not limited to seeking injunctive relief, and the City shall use good faith efforts in such enforcement actions. Section 4 THREE -CONTAINER SYSTEM (BLUE, GREEN, AND GRAY CONTAINERS) a. General. Beginning on or before March 1, 2024, WM shall provide a three -Container Collection program for the separate Collection of Source Separated Recyclable Materials, Source Separated Organic Waste, and Gray Container Waste as specified in this Section, using Containers that comply with the requirements of Section 6. This three -Container Collection program shall include WM providing all labor, equipment, tools, materials, trucks, Containers, and Carts, supervision, management, and all other items incidental thereto, and to perform all work necessary, to complete the work specified, and in the prescribed manner and time for the collection of Gray Container Waste, Source Separated Recyclable Materials, neighborhood cleanup materials, and Source Separated Organic Waste, and the provision of other services in the City as specified in this Agreement. b. Source Separated Recyclable Materials Collection (Blue Container). WM shall provide Blue Containers to Customers for Collection of Source Separated Recyclable Materials and shall provide Source Separated Recyclable Materials Collection service, as described in this Agreement. Recyclable Materials Containers in use before March 1, 2024 may continue to be used, but new Containers placed into service after March 1, 2024 shall comply with the definition of Blue Containers under the SB 1383 Regulations. WM shall Transport the Source Separated Recyclable Materials to (i) an Approved Source Separated Recyclable Materials Processing Facility, or (ii) an Approved Transfer Facility for Transfer and Transport to the Approved Source Separated Recyclable Materials Processing Facility, as specified in Section 7(a). i. Single -Family Customers. Standard service for Customers shall start with one (1) 64 -gallon Cart, collected bi-weekly. Provided there are no instances of Contamination, Customers can request to expand their standard service by up to two (2) additional 64 -gallon Carts. Curbside Collections shall be performed bi- weekly, on the same day as Gray Container and Green Container Collections. ii. Multi -Family Customers. WM will provide each Customer with Containers (Carts and/or Bins) and frequency of Collection services to contain Source Separated Page 9 of 35 Recyclable Materials. The charges for such services are set forth in Exhibits D -G. iii. Commercial Customers. WM will provide each Customer with Containers (Carts and/or Bins) and frequency of Collection services sufficient to contain all Source Separated Recyclable Materials. The charges for such services are set forth in Exhibits D -G. ' Source Separated Organic Waste Collection Green Container). WM shall provide Green Containers to Customers for Collection of Source Separated Organic Waste and shall provide Source Separated Organic Waste Collection service, as described in this Agreement. Organic Waste Containers in use before March 1, 2024 may continue to be used, but new Containers placed into service after March 1, 2024 shall comply with the definition of Green Containers under the SB 1383 Regulations. WM shall Transport the Source Separated Organic Waste to (i) an Approved Source Separated Organic Waste Processing Facility, or (ii) an Approved Transfer Facility for Transfer and Transport to the Approved Source Separated Organic Waste Processing Facility, as specified in Section 7(a). i. Single -Family Customers. Beginning on or before March 1, 2024, standard service shall consist of one 96 -gallon Cart, collected weekly (service will be every other week until such time). Provided there are no instances of Contamination, Customers may request up to two (2) additional 96 -gallon Carts (starting April 1, 2026, this will be limited to one additional Cart), and receive weekly Collection services, at no additional charge. Curbside Collections shall be performed weekly, on the same day as Gray Container and Blue Container Collections. ii. Multi -Family and Commercial Customers. WM will provide each Customer with Containers (Carts and/or Bins) and frequency of Collection services (at least weekly) to contain Source Separated Organic Waste. The charges for such services are set forth in Exhibits D -G. Such services will be mandatory, unless an exception under SB 1383 Regulations applies. d. Gray Container Waste Collection (Gray Container). WM shall provide Gray Containers to Customers for Collection of Gray Container Waste, and shall provide Gray Container Waste Collection service, as described in this Agreement. Gray Container Waste Containers in use before March 1, 2024 may continue to be used, but new Containers placed into service after March 1, 2024 shall comply with the definition of Gray Containers under the SB 1383 Regulations. WM shall Transport the Gray Container Waste to (i) the Approved Disposal Facility, or (ii) the Approved Transfer Facility for Transfer and Transport to an Approved Disposal Facility, as specified in Section 7(a). WM may allow carpets and textiles to be placed in the Gray Containers. Customers may not place Prohibited Container Contaminants in the Gray Containers. The Containers shall comply with the requirements of Section 6. i. Single -Family Custpmers. Standard service shall be one (1) 35 -gallon Cart, collected weekly. Where Customers request Carts larger than the standard size, the Page 10 of 35 charge will apply as set forth in Exhibit D. Curbside Collections shall be performed weekly, on the same day as Green Container and Blue Container Collections. Those Customers that have previously utilized a 20 -gallon Cart will be transitioned to the standard 35 -gallon Cart by March 1, 2024, and their rates will be incrementally adjusted over a three (3) year period as described in Section 10(b). ii. Multi -Fancily and Commercial CL1storners. WM will provide each Customer with Containers (Carts and/or Bins) and frequency of Collection services (at least weekly) to contain Gray Container Waste. The charges for such services are set forth in Exhibits D -G. e. Commercial Generator Compliance Reviews. Subject to Applicable Law governing data security and privacy rights, WM shall, upon City's request, assist City with its annual compliance review of Commercial Customers as set forth in 14 CCR Section 18995.1(a)(1)(A), as may be amended from time to time. Any such compliance review shall mean a "desk" review of records to determine the Commercial Customer's compliance with 14 CCR Section 18984.9(a). WM is not required to perform any such "desk" review of Edible Food Recovery Services and other similar entities regulated by 14 CCR Division 7, Chapter 12. f. SB 1383 Reporting. Within ninety (90) days after the end of each calendar year, WM shall provide an annual report to the City covering the most recently completed calendar year. Such report shall contain all of the following information: Contamination Monitoring Report. WM's report shall include the following information regarding route reviews conducted by WM under this Agreement: i. Documentation of route reviews conducted pursuant to 14 CCR Section 18984.5(b), as described and in accordance with 14 CCR Section 18995.1, including a description of the process for determining the level of Contamination and the number of route reviews conducted; ii. Documentation of "desk" compliance reviews conducted by WM under subsection (e), in accordance with 14 CCR Section 18995. 1, and the number of Contamination notices, Contamination fees issued to Customers, or targeted education materials issued to Customers for Prohibited Container Contaminants, as applicable; iii. Copies of all documentation related to route reviews, "desk" compliance reviews, and notices issued to Customers with Prohibited Container Contaminants; and iv. Documentation of the number of containers where the contents were Disposed due to observation of Prohibited Container Contaminants. Page 11 of 35 ii. Compliance 13epnrt. WM's report under this section shall include: i. The total number of Customers receiving each type of Organic Waste collection services; ii. The number of Organic Waste Customers that received information and the type of education and outreach used and annual Edible Food Recovery data provided from the San Joaquin County Public Health Department; iii. The number of complaints that were received and reviewed by WM and the City under subsection (e) above shall be included in the report. To complete this complaint reporting requirement, the City shall provide WM with any complaints that it receives, and WM shall also separately provide the City with the complaints it received at least annually, but more frequently, if possible; and iv. Copies of information provided to Customers related to SB 1383, including the date that the information was distributed to Customers, the number of accounts receiving the information, if applicable, in accordance with 14 CCR Section 18985.3. g. Schedules, Routes, and Literature. WM shall make available to City maps and schedules of collection routes and keep such information current at all times. WM shall cooperate with the City to coordinate collection route schedules and City street sweeping schedules. i. Maps and schedules of collection routes shall be available to City not later than thirty (30) calendar days prior to the initiation of collection operations or changes in operation. ii. Maps and schedules of collection routes shall show the day(s) for regularly scheduled pickup for each route and area. iii. Not less than one week prior to beginning collection operations or changing routes or schedules that alter the day(s) of collection, WM at its expense, will so notify each Customer affected. Notice shall be made to individual Customers, in writing and by public notification by means of local news media. iv. When a scheduled collection day falls on a holiday (i.e., New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day or Christmas Day), WM may, at its option and upon notice to its Customers by publication in a local newspaper of general circulation, collect either on the holiday or on the day immediately prior to, or delay collection schedules one day. WM may also have the option to reschedule collection to the Saturday before or after the holiday and provide written notice to each Customer at least two (2) weeks in advance. h. Care and Diligence. WM shall exercise all reasonable care and diligence when Collecting Solid Waste or providing other services as required under this Agreement. WM must exercise due care so as to prevent spilling, scattering, or dropping of collected materials Page 12 of 35 through collector activity and shall immediately, at the time of occurrence, clean up such spillage, dropping or scattering. Service Quality Review_. The City shall periodically review WM's Customer survey results to ensure that WM is consistently providing quality service to meet Customer expectations. If City determines that WM's quality of service is not being maintained, the City shall provide written notice of such failure to WM including a description of the specific deficiencies identified by City and the action necessary to correct such deficiencies. If WM fails to correct these deficiencies within ten (10) days of receipt of such notice, such failure shall constitute cause for termination of the Agreement pursuant to Section 33 hereof. j. Place of Collection. The normal collection point for Cart services shall be at the Customer curbside. Backyard service shall be offered at an additional cost as specified in Exhibits D, E and F. The normal collection point for container services will depend on property and business needs that meet City's planning and zoning laws and regulations. k. Quantities and Preparations, Customers shall limit the amounts of material they place in Gray Containers, Blue Containers and Green Containers to the capacity intended for each Container size and as intended for Collection. If the Customer exceeds the intended Container capacity, weight, or does not prepare their material for collection as noted herein, the following shall apply: i. overage. Roll -Out Period -- Education and Outreach. Between September 1, 2023 through December 31, 2023 (the "Roll -Out Period"), for instances of Overage, WM shall provide educational materials designed to minimize instances of Overage. If WM documents that a particular Customer has caused an Overage during the Roll -Out Period, where it can be done safely, WM shall still collect the offending Container (material laying on the ground will not be collected) and WM will provide a violation notice to the Customer (electronically, if the Customer has provided such contact information to WM, otherwise by mail to the Customer mailing address) with the following information (a "Violation Notice"): i. Date of the offense; ii. Description of the offense; iii. If available, a photograph or video (or link to photograph or video); iv. A description of the materials that are appropriate for collection in said Container and a link to view online with educational materials; and v. A website address to obtain additional information and/or receive responses to questions the Customer may have. Page 13 of 35 2. Post Roll -Out Period. After expiration of the Roll -Out Period ("Post Roll - Out Period"), WM shall respond as follows: i. First Occurrence. WM shall service Containers with Overage except where it is dangerous to do so. WM shall then provide a Violation Notice electronically, if the Customer has provided WM with electronic contact information, otherwise by mail to the Customer's mailing address. ii. Second and Subsequent Occurrences. WM shall service Containers with Overage except where it is dangerous to do so. Additionally, with respect to each event of Overage of a Gray Container, WM may thereafter increase the Customer's Gray Container size or number of Gray Containers, in which case WM will be paid for such increased services according to the Rates. With respect to each event of Overage of a Blue or Green Container, (a) if the Container with Overage has no Contamination, WM may increase the Customer's Blue or Green Container size or number, and (b) if the Container with Overage has Contamination, WM may increase the Customer's Gray Container size or number of Gray Containers, in which case WM will be paid for such increased services according to the Rates. iii. Twelve (12) months after a first occurrence described in 2(i) above, the number of Overage "occurrences" shall be reset to zero (0). However, Customers shall keep the additional or larger Containers delivered pursuant to 2(ii) above. A Customer may petition WM to reduce additional or larger Containers delivered pursuant to 2(ii) above if they have had no instances of Overage during the previous twelve (12) months. 3. WM will not collect loose Solid Waste or Refuse unless the Customer has made advance arrangements with WM for that collection. Section 5 OTHER WM SERVICES a. Recycling Education. WM will provide a Recycling and Education Awareness Program. As an incentive and recognition for City and community groups participating in the Recycling Education Awareness Program, WM will donate, at its discretion, $40,000 annually to the community groups within the City limits of Lodi. This amount will increase five hundred dollars ($500) per year over the life of this Agreement. WM shall report its community group donations to City annually. b. AB 939. WM, in coordination with City, will provide comprehensive AB 939 services including: i. WM shall submit a draft of the Source Reduction and Recycling Element document for City's review and assist City in its submission. ii. WM shall assist City in preparing the Annual Report, including all necessary Page 14 of 35 documentation and reports. iii. WM shall prepare the quarterly and annual tonnage reports and submit to City. iv. WM shall defend, indemnify and hold harmless City with respect to the City's failure to meet its AB 939 Diversion goals as a result of WM's failure to meet the applicable Diversion goals for the materials collected by WM. Such indemnity shall exclude all damages or claims caused by, arise from or in connection with (i) any negligent actions or omissions or willful misconduct of the City, or its employees, agents, appointed and elected officials; or (ii) the failure of the City or its employees, agents, appointed and elected officials to comply with or enforce applicable Solid Waste and/or recycling statutes, ordinances, regulations, or other requirements, other than failures attributable to WM's performance under this Agreement. The extent of WM's liability under this Section shall not exceed the amount of WM's proportionate share of fault. c. illegal Nninina. WM will provide an illegal dumping pick-up program coordinated between City and WM. WM will provide up to thirty-five (35) illegal dump collections during each calendar year. Each collection will be limited to two (2) cubic yards. The illegal dumping service will be provided on public property and City and railroad rights of way only. City will notify WM of the illegal dump location, WM will be required to collect item(s) within five (5) business days of notification. WM will not be required to pick-up Excluded Waste. Upon verification of the identity of the person(s) responsible for the illegal dumping, City may, consistent with the City Attorney's prosecutorial discretion, prosecute the illegal dumping in accordance with local and state litter laws. In addition, the City may collect fees for the illegal dumping to reimburse WM's Disposal cost per ton, plus an hourly cost for equipment and labor charges in addition to any other fees or fines that may be imposed by City. City will pay WM for costs incurred if such reimbursement fees are collected. WM shall cooperate with City to verify the identity of persons responsible. For illegal dump collections in excess of thirty-five (35) per calendar year and those in excess of two (2) cubic yards, the City will pay WM for such services at the Disposal cost per ton and established hourly rate then in effect for each fully -crewed vehicle employed in providing such service from the time the vehicle leaves WM's facility until the time it returns there. d. Annul] Neighborhood Clean -U . WM will provide an annual neighborhood curbside clean-up collection service for single family residential Customers once a year, typically in April of each year. This service will be limited to the equivalent of three (3) 64 -gallon Gray Container Carts at the curb. Items must be bagged, bundled, boxed or containerized and weigh less than fifty (50) pounds per container. Items to be Disposed must be at the curb, directly in front of the residence and must be away from parked cars and Refuse Carts. Items must be at the curb by 5:00 a.m. on the Customer's regular Refuse service date. WM will notify all residents of a schedule indicating the dates of the clean-up and provide instructions and accepted item parameters, which must be approved by City. This annual service is at no additional charge to all residential Customers. Unacceptable items include dirt, concrete, liquids, toxic or hazardous materials, cathode ray tubes (CRT) and large heavy metals such as auto bodies and engines. Page 15 of 35 e. Additional Programs to Discourage Illegal Dumping and Accumulation of Refuse. The following two services shall be provided to all Single -Family residential Customers to assist in helping the City of Lodi discourage illegal dumping and the accumulation of Refuse: i. WM will provide each single family residential Customer with one (1) "Transfer Station Voucher". These vouchers will allow each Customer with the ability to bring to WM's Transfer station a volume of up to two (2) cubic yards of acceptable Refuse per voucher at no cost. Voucher must be presented upon entrance into Transfer station. Unacceptable items include Commercial waste, dirt, concrete, tires, liquids, toxic or hazardous materials, CRT and large heavy metals such as auto bodies, engines, transmissions, refrigerators and air- conditioners that still have chlorofluorocarbons (CFC's). ii. WM will provide at its Transfer station a Dollar Dump Day on a date between March 15 and April 15, as determined by WM and provided in a notice to Customers. At this event, Single -Family Customers within the city limits of Lodi may bring up to two (2) cubic yards of Refuse in a single load to WM's Transfer station at a reduced Transfer station fee. It will be required that residents bring a voucher which has been mailed to them by WM. Proof of residency shall be required. Unacceptable items will be described in the notice as items include Commercial waste, dirt, concrete, tires, liquids, toxic or hazardous materials, CRT and large heavy metals such as auto bodies, engines, transmissions, refrigerators and air- conditioners that still have CFC's iii. WM shall get approval from City for the dates of the above services. f. Advertising Costs. As provided in this Section 5, WM shall be responsible for all costs associated with the advertising and promotion of special services and activities within this Agreement. g. Marketifig of Recyclable Matcrials. Organic Waste or Salvaged Materials. WM will provide transporting, marketing and processing of all collected Source Separated Recyclable Materials and Source Separated Organic Waste. WM shall have the full and exclusive right to all such material or salvageable material collected in connection with the Solid Waste and shall have the exclusive right to any funds realized from the marketing of Recyclable Materials, Organic Waste or salvaged materials. h. City Street Sweeping Debris and Fall Leaf Removal. WM will provide Disposal services for City Street Sweeping debris and the Annual Fall Leaf Removal at no additional charge to the City. The following conditions will apply: i. Disposal is limited to twelve hundred (1,200) tons per year. WM will charge the City for any excess tonnage at the then current Transfer station gate rate. ii. Leaves and street sweeping debris will be delivered by the City to WM and WM shall issue a weight tag to the City. Page 16 of 35 iii. Leaves must be free of Contamination. The City will pay WM's regular Disposal fee for loads that include contaminants in excess of 1% by weight or volume. City Services. WM will provide Containers and Collect Gray Container Waste, Source Separated Recyclable Material, and Source Separated Organic Waste at City buildings and properties throughout the City at no additional charge, so long as such Containers are utilized for normal City operations, not special projects or use for third party materials. At the current time, the City has public containers at approximately 20 locations as depicted on Exhibit H. If additional service is needed during the term of this Agreement, City may request additional Collection of up to 10 additional Gray Containers, Blue Containers or Green Containers at no additional charge. The City will pay WM for any additional requested containers in excess of the 10 allowed, based on then current service rates for Customers utilizing the corresponding type and size Container(s). Special Collection Events. WM shall host four (4) Collection events per year to be conducted by a third -party vendor to Collect e -waste and Universal Waste at WM's Transfer station or alternative permitted site within the City agreed to by WM and City. WM shall host one (1) Collection event per year to be conducted by a third -party vendor to Collect Household Hazardous Waste at WM's Transfer station or alternative site within the City agreed to by WM and City, with San Joaquin County Public Works as the Sponsoring Agency. k. Additional Services. This Agreement contains all expectations and obligations regarding WM's performance of Solid Waste, Recycling, and Organic Waste Collection services for City. The City and WM must either amend this Agreement or enter into a separate agreement for the provision of any new services or programs that are not expressly provided for in this Agreement. 1. Program Coordination. WM understands and acknowledges that WM is providing an integral part of a City service. Therefore, WM shall cooperate with City and its citizens in carrying out the basic task of Collecting Solid Waste as provided herein. City shall have no role in WM's provision of Solid Waste service to any other jurisdiction. Section 6 CONTAINER REQUIREMENTS a. Containers. i. New Containers placed into service on or after March 1, 2024 shall comply with the Container color requirements specified in this Section or as otherwise specified in 14 CCR Section 18982; 14 CCR, Division 7, Chapter 12, Article 3; or other Applicable Law. The parties agree that Containers shall be in the following colors: 1. Gray Containers: green bodies and black lids 2. Blue Containers: green bodies and blue lids 3. Green Containers: green bodies and green lids Page 17 of 35 ii. If an existing Container breaks or is otherwise rendered non-functional on or after March 1, 2024, WM shall replace the non-functional Container with a Container that complies with the color requirements of subsection (i) above. WM will use commercially reasonable efforts to recycle Carts taken out of service. iii. Notwithstanding this Section, WM is not required to replace functional Containers in use prior to March 1, 2024. However, such Containers shall be replaced with Containers compliant with subsection (1) prior to January 1, 2036. b. Labeling. Containers placed into service on or after March 1, 2024 shall comply with the labeling requirements of SB 1383 Regulations. Section 7 TRANSFER, PROCESSING, AND DISPOSAL a. Transport to Approved Facilities. WM shall Transport all Discarded Materials to the Approved Facility(ies). The Approved Facilities shall comply with the following requirements: i. Approved Transfer Facility. WM's Approved Transfer Facility shall be a Transfer Facility or operation that Transfers Single -Family, Multi -Family, and Commercial Source Separated Recyclable Materials, Source Separated Organic Waste, and Gray Container Waste Collected in accordance with this Agreement. ii. Approved Source Separated Recyclable Materials Processing Facility Blue Containers). WM's Approved Recyclable Materials Processing Facility shall be a Facility or operation that Processes Single -Family, Multi -Family, and Commercial Source Separated Recyclable Materials to recover materials designated for Collection in the Blue Container. iii. Approved Organic Waste Processing Facility Green Containers). WM's Approved Organic Waste Processing Facility shall be a Facility that Processes Single -Family, Multi -Family, and Commercial Source Separated Organic Waste to recover Source Separated Organic Waste. iv. Approved Disposal Facility (Gray Containers). WM's Approved Disposal Facility shall be a Disposal Facility that accepts Single -Family, Multi -Family, and Commercial Gray Container Waste Collected in accordance with this Agreement. b. Allowable Or anis Waste Facilities. If WM is interested in Transporting Discarded Materials to a type of facility that is not described above, WM shall obtain written approval from the City and such facilities or activities shall constitute a reduction in landfill Disposal pursuant to SB 1383 Regulations. If WM is interested in using a facility, operation, or activity not listed above and not specifically identified in SB 1383 Regulations, WM shall be responsible for securing the necessary approvals from CalRecycle, pursuant to the SB 1383 Regulations, that the facility's process or technology constitutes a reduction in landfill Disposal prior to the City's final approval of such facility or activity. Page 18 of 35 c. Guaranteed Capacity and Facility Standards. WM shall guarantee Transfer, Processing, and Disposal capacity at the Approved Facilities to receive all Discarded Materials Collected by WM throughout the Term of the Agreement. d. "Transportation and Facility Costs. WM shall pay all costs for the Transport, Transfer, Processing, and/or Disposal of Discarded Materials Collected in accordance with this Agreement. WM's compensation for such services is included in the Rates charged to Customers. e. Subcontractors. If WM does not own or operate one or more of the Approved Facilities, WM shall enter into a subcontract agreement with the owner or operator of such Approved Facility(ies) and the requirements of Section 7(a) shall pertain to the Subcontractor. In addition, Subcontractor requirements and obligations related to indemnification (Section 24) and insurance requirements (Section 23) shall apply, as well as any other Subcontractor requirements or obligations stated in other sections of this Agreement. f. Transportation to Non -Approved Facilities Prohibited. If WM Transports Discarded Materials to a Facility other than the Approved Facility(ies) or an Alternative Facility without prior City approval, WM's failure to comply may result in City pursuing remedies available for the breach of this Agreement. Section 8 CONTAMINATION MONITORING a. SB 1383 Route Reviews. Commencing on or before March 1, 2024, WM shall conduct Hauler Route reviews for Prohibited Container Contaminants in a manner that complies with the SB 1383 Regulations. City has approved WM's use of its Smart TrucksM system, including Contamination monitoring via digital and video monitoring and the use of the internet to conduct such route reviews. b. Contamination in Blue and Green Containers. i. Roll -Out Period — Education and Outreach. During the Roll -Out Period WM shall not impose a Contamination Charge, but instead shall provide educational materials designed to minimize instances of Contamination. Where WM documents that a particular Customer has Contamination during the Roll -Out Period, WM shall Collect the offending Container if can be done safely, and provide a Violation Notice to the Customer (electronically, if the Customer has provided WM with electronic contact information, otherwise by mail to the Customer's mailing address) with the following information: ' 1. Date of the offense; 2. Description of the Contamination; 3. If available, a photograph or video (or link to photograph or video); 4. A description of the materials that are not appropriate for Collection in said Container and a link to view online with educational materials; and 5. A website address to obtain additional information and/or receive responses Page 19 of 35 to questions the Customer may have. ii. Post Roll -Out Period. The following shall apply after the Roll -Out Period: 1. First Occurrence. WM shall service Containers with Contamination, except where there is visible Unacceptable Waste. WM shall then provide a Violation Notice electronically (if the Customer has provided WM with electronic contact information), otherwise by mail to the Customer's mailing address. 2. Second and Subsequent Occurrences. WM shall service Containers with Contamination, except where there is visible Unacceptable Waste. Additionally, with respect to each event of Contamination of a Green or Blue Container, WM may thereafter increase the Customer's Gray Container size or number of Gray Containers. WM will be paid for such increased services according to the Rates. 3. Reset of Contamination Occurrences. Twelve (12) months after a first occurrence described in ii(1) above, the number of Contamination "occurrences" shall be reset to zero (0). However, Customers shall keep their additional or larger Gray Containers delivered pursuant to ii(2) above. A Customer may petition WM to reduce additional or larger Containers delivered pursuant to ii(2) above if they have had no instances of Contamination during the previous twelve (12) months. Section 9 BILLINGS AND PAYMENTS a. Street Maintenance Fee. Commencing September 1, 2023, WM agrees to pay the City a monthly street maintenance fee of $93,582.57 On April 1, 2024, and each April 1 thereafter, the street maintenance fee shall be increased by the same percentage amount by which WM's rates are increased pursuant to Section 10(b). For purposes of clarity, the August 2023 payment shall be $66,082.57. b. Downtown Maintenance Fee. Commencing September 1, 2023, WM agrees to pay the City a monthly downtown maintenance fee of $8,333.33. On April 1, 2024, and each April 1 thereafter, the downtown maintenance fee shall be increased by the same percentage amount by which WM's rates are increased pursuant to Section 10(b). c. SB 1383 Fee. Commencing September 1, 2023, WM agrees to pay the City a monthly SB 1383 fee of $10,416.67. On April 1, 2024, and each April 1 thereafter, the SB 1383 fee shall be increased by the same percentage amount by which WM's rates are increased pursuant to Section 10(b). The SB 1383 fee will be used by the City to fund a full-time employee who will focus on SB 1383 related matters. d. Administrative Fee. WM will pay the City an administrative fee of $250,000 on or about April 1, 2024, April 1, 2025, April 1, 2026 and April 1, 2027. Page 20 of 35 e. Customer Billin City shall, as part of its municipal utility billing system, bill regularly scheduled Customers and collect payments from them for the Exclusive Services. WM shall provide City with all necessary billing information as soon as possible but no later than the City's regularly scheduled billing date. City will furnish billing schedule to WM. City will bill WM $28,017.65 per month for billing services effective as of the date of this Agreement and may increase the amount up to the percentage increases shown in Section 10(b). If City determines to increase billing charge, City will notify WM of said increase thirty days before increase becomes effective. f. Exclusive Service Performance. WM shall perform the Exclusive Services to ensure adequate protection of public health and safety as provided by City Ordinance. WM shall provide Exclusive Services required under this Agreement for the Rates set forth as attached hereto and incorporated herein as Exhibit D -G, as the same may be adjusted in accordance with Section 10. g. Franchise Fee Collection and Payment. City shall remit to WM each Friday, the net collections in the previous week after deducting from collections a 4.8% franchise fee. City hereby agrees to keep and maintain proper records of its collection hereunder and to make such records available to WM or its authorized agent for audit at any reasonable time in the office of the City of Lodi Finance Department. i. Billing The number of City -billed Service Recipients shall be determined as follows: 1. Not later than the 30th of each month, the City shall provide to the Company the total number of City -billed Service Recipients as determined by the City. 2. Company shall have forty-five (45) days to review the total number of City - billed Service Recipients and the supporting documentation supplied by the City. 3. Company shall inform the City in writing not later than 10 days following the end of the 45 -day review period of any disagreement with the total number of City -billed Service Recipients and the basis for such disagreement. 4. If Company and the City are unable to agree on the total number of City - billed Service Recipients within 10 days after receipt from the Company of the notice of disagreement, either Party may submit the matter to the City Council for resolution in its reasonable judgment, provided however, that where Company substantiates that the service has been provided, and the City does not agree to pay for the services, Company may remove the containers from the Premises of the Service Recipient unless payment in full in arrears is subsequently received from the City. h. Service Accounting. WM shall set up a system of accounting to assure that all accounts are in fact being served by WM with appropriate Gray, Blue and Green Container Collection services, neighborhood cleanup, and other services being provided, as otherwise required by this Agreement. Page 21 of 35 i. WM and City Interaction with Customers. WM shall provide the field and office interface in Lodi with its Customers. Requests for service shall be made by Customers through City. City shall maintain in writing documentation of all such account contacts on a daily basis so that appropriate Customer billing and WM compensation may be facilitated. Section 10 RATES a. Service Rates. Effective September 1, 2023, Rates collected for services shall be set forth in Exhibit D -G (the "Rates"), subject to adjustment as provided in this Agreement. b. Annual CPI Ad'ustment. Commencing on April 1, 2024, and on the same date annually thereafter (the "Adjustment Date"), the Rates shall be adjusted by a percentage amount derived by multiplying the then -current Rates by eighty percent (80%) of the percentage increase of the Consumer Price Index for all Urban Consumers for San Francisco -Oakland - San Jose, California area, All Items (1982-84=100) , series CUUROOOOSEHG CPI -U Water and Sewer and Trash Collection Services, US City Average, not seasonally adjusted, as published by the United States Department of Labor, Bureau of Labor Statistics ("CPI - U"). The CPI -U adjustment will be calculated using the change in the 12 -month annual average of monthly CPI -U index values between the January I to December 31 period of the year immediately prior to the adjustment date, and the January 1 to December 31 period of the year before. Provided that adequate supporting information has been submitted by WM, the annual adjustment to Rates shall be deemed approved and shall take effect as outlined in this section. In the event the CPI -U is no longer published by the Bureau of Labor Statistics, WM and City shall negotiate in good faith to agree upon a suitable replacement index reflective of the cost of living in the franchise area. c. 20 -gallon Rates for Single -Family Customers. On April 1, 2024, April 1, 2025, and April 1, 2026, in addition to the annual CPI adjustment pursuant to subsection (b) above, the 20= gallon Rate for Single -Family Customers will be increased as follows: (New 35 -gallon rate for Single -Family Customers — New 20 -gallon rate for Single - Family Customers) / 3 Therefore, starting April 1, 2026, the 20 -gallon Rate will equal the 35 -gallon rate. d. Extraordinary Adjustments. In addition to the annual adjustment provided by subsection (b) above, the Rates may, upon written request of WM and approval by City (which such approval shall not be unreasonably withheld or delayed), be further adjusted to accommodate the unexpected increases to expenses associated with performance of the Exclusive Services hereunder due to any one or more of the following causes: i. Force Majeure (see Section 33(i)); ii. Changes in Applicable Law that is effective after the date this Agreement is first executed by a party; iii. Increase in surcharges, fees, assessments or taxes levied by federal, state or local Page 22 of 35 regulatory authorities or other governmental entities related to the Exclusive Services; iv. Increase of at least 10% in the cost of transportation, including fuel and third -party transportation costs; or v. Any other extraordinary circumstances or causes or reasons that are not within the reasonable control of WM. If WM requests a Rate adjustment pursuant to this Section 10(c), it shall prepare a Rate adjustment request setting forth its calculations of the increased expenses and accompanying adjustment to the Rates necessary to offset such increased expenses. The City may request documentation and data reasonably necessary to evaluate such request by WM, and may retain, at its own expense, an independent third party to audit and review such documentation and request. If such third party is retained, the City shall take reasonable steps, consistent with Applicable Law, to protect the confidential or proprietary nature of any data or information supplied by WM. The City shall consider all properly calculated Rate adjustments within one hundred and eighty (180) days of WM's request, and if approved, the adjusted rates shall be deemed to take effect as of the date of WM's request. Approval of Rate Adjustments. All rate changes, except the base rate in paragraph a. of this Section and the Rate adjustments in paragraphs b. and c. of this Section, shall be approved and adopted under the procedures set forth by Proposition 218, or any other process that the City is required to complete to adopt a rate or fee. For WM-requested rate changes, WM shall reimburse City for all costs incurred by City in connection with the Proposition 218 or other required City procedures. f. Validity and Enforceability of pees. In the event the franchise fee or any other fee set forth in this Agreement is determined by a court to be invalid or unenforceable, then WM shall not be obligated to remit such invalidated fee to the City. City and WM will, as promptly as reasonably practicable following such court decision meet and confer to negotiate in good faith and using reasonable efforts to agree upon on adjustments to each of the Rates, which adjustments shall in the aggregate, as applied to Collection services, equal the amount of the City fees determined to be invalid or unenforceable. To the extent the Customers are entitled to a reimbursement of any invalid or unenforceable City fees, City will directly reimburse such Customers such City fees to the extent the same have been paid by such Customers either directly or indirectly (through Contractor) to the City. Section 11 MATERIALS TO BE COLLECTED WM shall furnish all labor, supervision, material, permits, licenses, and equipment necessary to provide the services provided under this Agreement, which shall include basic Solid Waste, recyclable, neighborhood cleanup, yard and garden waste Collection for occupants of specified dwelling units and business establishments within the City, as follows: a. Residential and Commercial Gray Container Waste, including properly containerized residential and Commercial Refuse and/or rubbish. Page 23 of 35 b. Residential and Commercial Source Separated Organic Waste, including grass clippings, weeds, brushes, brush clippings and branch clippings when properly containerized. c. Residential and Commercial Source Separated Recyclable Materials, properly containerized. d. Neighborhood cleanup disposables and Recyclable Materials. e. Illegal dump services f. Where required in this Agreement, WM shall only Collect toxic, or Hazardous Waste as permitted to do so by the State Health Department. g. WM may only refuse to service a Customer or specific location when Refuse contains illegal materials, is not placed in approved container, or is not located in the required pickup area. h. WM shall discontinue Solid Waste service at any location as set forth in a written notice sent to it by City. Upon further notification by City, WM shall resume Collection service on the next regularly scheduled Collection day. i. All containers will be returned to their proper location after dumping. Section 12 COLLECTION CONTAINERS All materials to be Collected shall be placed in City approved containers by Customers. Section 13 RUBBISH TOO LARGE OR TOO HEAVY FOR COLLECTION Items too large or heavy for proper containerization such as bundles of brush and branches, heavy earthen materials and other large items that are out of the scope of Exclusive Services will be Collected for a negotiated price with the Customer. If Customer requests such special service, these special services will be scheduled outside of WM's normal Collection schedule. Section 14 INDUSTRIAL COLLECTION WM may provide Industrial Refuse Collection services outside the scope of this Agreement in the City of Lodi in accordance with City Municipal Code. Section 15 TIME OF COLLECTION WM shall not commence Collection of Solid Waste in residential areas prior to 5:30 a.m. and 5:00 a.m. in Commercial areas, or continue Collection after 6:00 p.m. in either area. All Collection shall be made as quietly as possible, and conform to any Federal, State, County or City noise level regulations. Page 24 of 35 Section 16 COMPLAINTS a. WM will receive and handle all complaints. Upon receipt of a complaint, WM shall identify and contact the complainant, investigate the issue, and then resolve the complaint directly with the complainant. WM shall keep a record of all complaints and their resolutions, and shall forward such to City on a quarterly basis. Should WM not render Collection service within forty-eight (48) hours after a missed Collection complaint is reported to its authorized representative, City may make whatever arrangements are necessary, in its opinion, to provide the Collection service. WM will reimburse the City for all costs, charges and damages incurred by City, together with the costs of completing the work and all such costs may be charged against any monies due or which may become due WM. b. City shall notify WM of any complaint reported to City. It shall be the duty of WM to take whatever reasonable steps may be necessary to remedy the cause of the complaint within forty-eight (48) hours after initial receipt and then notify City of its disposition. Section 17 DISPOSAL SITE DESIGNATION a. Compliance and Transport_ to Approved Disposal Facilities. All Gray Container Waste Collected in the Service Area shall be transported by WM to an Approved Disposal Facility. Loads taken to Approved Disposal Facilities will be accounted for by weighing and paid for by WM at the then current rate. WM shall follow all established rules and regulations when operating on any Disposal site. WM's operators shall follow all directions given by the landfill spotter when delivering Solid Waste material. b. Transfer Locations. WM may haul waste Collected under the terms of this Agreement to WM's Approved Transfer Facility. WM shall be required to weigh all loads Collected in the City and hauled to the Approved Transfer Facility. WM will keep track and maintain the records of tonnages hauled to and Transferred from the Approved Transfer Facility by type (i.e., Gray Container Waste, Recyclable Materials, and Organic Waste). Except for materials retained for Recycling, WM shall transport Collected Gray Container Waste to the North County Sanitary Landfill for Disposal or to such other Disposal sites as City may from time to time designate. Section 18 COLLECTION VEHICLES AND EQUIPMENT a. WM Fleet. WM shall provide and maintain during the entire period of this Agreement a fleet of modern packer -type Collection vehicles, and corresponding personnel to operate such vehicles, sufficient in number and capacity to efficiently perform the work and render the services required of WM by this Agreement. WM shall provide evidence satisfactory to City of its ability to furnish adequate backup vehicles and personnel. b. Vehicle Condition. Each Collection vehicle shall be kept in a sanitary condition, good appearance and good repair at all times. City reserves the right to inspect WM's Collection vehicles at any reasonable time to ascertain said condition. Page 25 of 35 c. Noise Standards. The noise level for the Collection vehicles during the stationary compaction process shall meet current State and local standards. d. Vehicle Equipment. Each truck at all times shall be equipped with a shovel and a broom or rake, intended for the Collection of spilled Refuse. All vehicles shall be equipped with spill kits to be used in the event of a spill and to prevent fluids or oils from flowing into storm - water drains. e. WM Identification. WM's vehicles and other equipment must be clearly identified with the name and phone number of WM's office on each side of the equipment. f. Equipment List Availability. WM shall furnish to City upon request a list identifying all equipment to be used in fulfilling this Agreement and notify City of any changes. g. Vehicle Age. WM's primary fleet of Collection vehicles shall not exceed ten (10) years in age during the term of this Agreement, without the City's consent. h. Zero Emission Vehicles and Negotiated Costs. If WM or any of its California affiliates implement a fleet of zero emission Collection vehicles on a permanent basis, WM will use commercially reasonable efforts to utilize such vehicles in the City of Lodi. If such vehicles result in greater operating or capital costs, then the City and WM will first agree on any compensation adjustments to offset such additional costs. Section 19 LAWS TO BE OBSERVED WM shall at all times observe and comply with all Federal and State laws, local laws, ordinances, orders, rules, and regulations of the Federal, State, County, or local governments. Section 20 FAMILIARITY WITH LAWS AND ORDINANCES The signing of this Agreement shall be considered as a representation that WM is familiar with all Federal, State, and local laws, ordinances, and regulations which affect those engaged or employed in the work, or equipment used in the work or which affect the conduct of the work; and, no plea of misunderstanding will be considered on account of ignorance thereof. Section 21 TAXES WM shall pay all applicable Federal, State and local taxes. Section 22 CONFIDENTIALITY WM acknowledges that City is legally obligated to comply with the California Public Records Act ("CPRA"). City acknowledges that WM may consider certain records, reports, or information contained therein, which WM is required to provide to City under this Agreement to be of a proprietary or confidential nature. In such instances, WM will inform City in writing of which Page 26 of 35 records are considered propriety or confidential. At such time as City receives a request for records under the CPRA or Federal Freedom of Information Act or a subpoena or other court order requesting disclosure of the identified records, City shall notify WM of the request, subpoena or order and of City's obligation and intent to provide a response within 10 days. WM shall within five days either: (i) consent in writing to the disclosure of the records; or (ii) seek and obtain, at WM's sole cost and expense, the order of a court of competent jurisdiction staying or enjoining the disclosure of the records. Section 23 INSURANCE WM shall secure and maintain throughout the duration of this Agreement, insurance of such types and not less than amounts as hereinafter listed. a. Workman's Compensation. WM shall carry with a company authorized under the laws of the State of California, a policy to protect WM against liability under the Workman's Compensation and Occupational Disease Statues of the State of California. b. Vehicle Liability Insurance. WM shall carry, in WM's own name, a policy under a comprehensive form to insure the entire vehicle liability for WM's operation with limits of not less than $5,000,000 combined single limit auto liability. The policy shall be primary and name City, its Elected Officials, Officers, Agents and Employees as additional insureds with respect to the operation of vehicles owned or operated by WM while performing work under the terms of this contract. c. General Liability. WM shall carry and maintain throughout the term of this contract a comprehensive liability insurance policy issued by a company duly authorized to do business in the State of California, insuring both City and WM, with respect to the work performed by WM under the terms of this Agreement in an amount of not less then $2,000,000.00 each occurrence combined single limit for injury or death to persons and for damage to property. d. Certificate of Insurance. A certificate of Insurance naming City, its Elected Officials, Officers, Agents and Employees as additional insured, except for Workers Compensation, shall be filed with the City for each policy. Each certificate must be presented in a form and with provisions subject to the Risk Managers approval. e. WM Must Maintain Insurance. Regardless of such approval by City, it shall be the responsibility of WM to maintain adequate insurance coverage at all times, and its failure to do so shall not relieve it of any contractual obligations or responsibility. Failure on the part of WM to maintain these insurance policies in full effect will be considered as a failure in Agreement performance and will be treated as such by City. Section 24 WM TO INDEMNIFY CITY WM shall indemnify and save harmless City, its Elected Officials, Officers, Employees and Agents from any and all claims, suits, or actions made or brought against the City, its officers, employees Page 27 of 35 and agents for any and all injuries or damages, including, but not limited, attorney's fees and costs, experts' fees and costs, and consultants' fees and costs incurred by City in the defense of any such claim, suit or action, which results from or is caused by the negligent acts or willful misconduct of WM or its agents or subcontractors in doing the work and rendering the services provided for by this Agreement, excluding injuries or damages to the extent that they are caused by the negligent acts or willful misconduct of City or its employees, agents, subcontractors or elected officials. The extent of WM's liability under this section shall not exceed the amount of WM's proportionate share of fault. Section 25 PERMITS WM shall obtain, at its own expense, all permits and licenses required by Federal, State, and local laws or ordinance and maintain same in full force throughout the term of this Agreement Section 26 PERSONAL LIABILITY OF PUBLIC OFFICIALS Neither the City Council of Lodi nor any officers, employees or agents shall be personally responsible for any liability arising under or growing out of this Agreement or operations of WM under the terms of this Agreement. Section 28 CITY NOT LIABLE FOR DELAY It is further expressly agreed that in no event shall City be liable or responsible to WM or to any other person for or on account of any stoppage or delay in the work herein provided for by injunction or other legal or equitable proceedings filed by persons not a party to this Agreement, or from or by or on account of any delay for cause over which City has no control. Section 29 PUBLIC CONVENIENCE AND SAFETY WM shall observe all City Ordinances, Resolutions, and policies relating to encroachments, obstructing streets, keeping alleys or other rights-of-way open and protecting same, and shall obey all laws and City regulations and protocol controlling or limiting those engaged in the work. WM is granted the right of using the streets or alleys for the purpose of doing the work specified in this Agreement, but is not granted exclusive use of such streets or alleys. WM shall handle the work in a manner that will cause the least possible inconvenience and annoyance to the general public and to the property owners consistent with WMs reasonable operational requirements. There is hereby reserved to City, every right and power which is required to be herein reserved or provided by any ordinance or resolution of the City, and WM agrees to be bound thereby and to comply with any action or requirements of City in its exercise of such rights or power, heretofore or hereafter enacted or established. The awarding of this Agreement as provided for herein, shall not constitute a waiver or bar to the exercise of any governmental right of City. No right or exemption shall be granted to WM except those specifically prescribed herein. Section 30 EXAMINATION OF THE SITE OF THE WORK By the signing of this Agreement, WM represents that it has carefully examined the service area, Page 28 of 35 the Disposal sites, and that WM is fully informed concerning the requirements of this Agreement, the physical conditions to be encountered in the work, and the character, quality and the quantity of service to be performed, and of materials and equipment to be furnished. Negligence or inattention of WM in determining site conditions prior to signing this Agreement, in any phase of its performance of the Essential Services, shall not obligate the City to pay any additional compensation for additional work caused by such negligence or inattention. Section 31 VERBAL AGREEMENTS No verbal agreement or conversation with any officer, agent or employee of City, either before or after execution of this Agreement, shall affect or modify any of the terms or obligations contained in this Agreement. Any such verbal agreement or conversation shall be considered as unofficial information and in no way binding upon City or WM. Section 32 ASSIGNMENTS AND SUBCONTRACTING No performance to be rendered or payment due under this Agreement may be assigned or transferred, and WM shall not subcontract any work hereunder other than those specified in this Agreement, without the prior written approval of the City Council. Such assignment or subcontract will not be unreasonably withheld by the City Council. Notwithstanding the foregoing, should WM engage in reorganizations, mergers, consolidations or similar transactions between or among entities owned by the same direct or indirect parent entity, WM shall notify the City of such change and the City must acknowledge its consent to such reorganizations, mergers, consolidations or similar transactions in writing for this Agreement to continue with the new entity. Section 33 BREACH, CURE, AND TERMINATION PROVISIONS a. City May Act if WM Does Not. If WM fails to provide Collection services for Gray Waste, Source Separated Recyclable Material, Source Separated Organic Waste, and neighborhood cleanup as required by this Agreement for a period in excess of five (5) consecutive, scheduled working days, other than by reason of Force Majeure, City may take the following actions: i. At its option, take possession of all of WM's equipment and facilities used in the performance of this Agreement. ii. Employ such means as it may deem advisable and appropriate to continue work until the matter is resolved and WM is again able to carry out operations under this Agreement. iii. Charge any and all operating expenses incurred by City against any money then due or to become due to WM and, should the City's cost for continuing the operation exceed the amount due to WM, collect the amount due from WM and also to assert a lien on all properties of WM. Page 29 of 35 iv. During such period, the liability of City to WM for loss or damage to equipment and facilities so used shall be that of a bailee for hire, ordinary wear and tear being specifically exempt from such liability. b. Automatic Termination upon Bankru tc . In the event WM shall be adjudged bankrupt under Chapter 7, either by voluntary or involuntary proceedings, then this Agreement shall immediately terminate and in no event shall this Agreement be, or be treated as, an asset of WM after adjudication of bankruptcy. c. Breach. Failure to perform any material part of this Agreement, other than by reason of Force Majeure, shall be considered a breach and City may terminate this Agreement after the lapse of the applicable cure period listed in Subsection d. below. d. Cure. Except for the occurrence or existence of Force Majeure, in the event of any material failure or refusal of WM to comply with its obligations under this Agreement, efforts to resolve the issue shall occur as follows: i. Meet and Confer. WM and City shall meet and confer in good faith in an effort to cure the breach by informal resolution. ii. Notice to Cure. If the parties are unable to informally resolve and cure the breach, City shall give written notice to WM specifying the particular default or defaults which, unless corrected, constitute a material breach of this Agreement on the part of WM. WM shall then have thirty (30) calendar days thereafter or, if the breach or default cannot reasonably be cured within such period and if diligent efforts to cure promptly commence, then the cure period shall continue as long as such diligent efforts to cure continue, but not beyond a period of ninety (90) calendar days. At the expiration of the cure period, WM still has not cured the defaults, City shall have the right to terminate this Agreement. e. Possession of WM's equipment, facilities, and records. In the event of termination of this Agreement for breach, default, or bankruptcy as specified above, City shall have the right to forthwith take possession of all WM's equipment, facilities, and records used in the performance of this Agreement. City shall have the right to retain possession of said equipment, facilities, and records until other such items can be acquired by City for operation of the system or another contractor is engaged to perform the service. ii. City shall have the right at its option to purchase WM's equipment and facilities at the fair market value thereof. iii. City shall pay WM the reasonable rental value of such equipment, facilities during the time the same are used by City. Liability of City to WM during this period shall be that of a bailee for hire, ordinary wear and tear specifically exempt from such Page 30 of 35 liability. f. Termination for Cause Process. If City chooses to exercise its right to terminate this Agreement prior to expiration of the full term, the Termination shall become effective upon service of the City's written notice of its intent to terminate upon WM. Service of the notice to terminate shall be deemed to have been made five days after the date of mailing of the notice to WM by City. g. Mutual Agreement to Terminate. WM and City may agree, upon mutually satisfactory terms, for the termination of all or any part of the business of this Agreement prior to the expiration of the term of this Agreement. h. Criminal Conviction. In the event any contract manager, officer or director of WM is convicted of fraud, bribery or attempted bribery of a public officer or employee, embezzlement, extortion, racketeering, false claims, false statements, forgery or any similar felony involving business dishonesty, WM shall promptly terminate from employment or remove from office the convicted employee, officer or director and eliminate the ability of such employee, officer or director to manage, supervise or influence the decisions or actions of WM or any parent company of WM. If WM fails to comply with the foregoing obligation, WM may be considered in breach of this Agreement and City may terminate this Agreement at City's option as provided in this section. i. Force Majeure. The performance of this Agreement may be discontinued or temporarily suspended in the event of Force Majeure. WM shall not be deemed to be in default and shall not be liable for failure to perform under this Agreement if WM's performance is prevented or delayed by Force Majeure. The Parties agree that the settlement of strikes, lockouts or other industrial disturbances, and litigation, including appeals, shall be entirely within the discretion of WM, and WM may make settlement thereof at such time and on any such terms and conditions as it may deem to be advisable, and no delay in making such settlement shall deprive WM of the benefit of this Section. "Force Majeure" means acts of God including landslides, lightning, forest fires, storms, floods, freezing and earthquakes, civil disturbances, strikes, lockouts or other industrial disturbances, acts of the public enemy, wars, blockades, public riots, explosions, governmental restraint or other causes, whether of the kind enumerated or otherwise, which are not reasonably within the control of the party affected by the Force Majeure event. Section 34 NON-DISCRIMINATION IN EMPLOYMENT WM, in performing under this Agreement, shall not discriminate against any worker, employee or applicant, or any member of the public because of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, medical condition, military or veteran status, national origin, ancestry, physical or mental disability, genetic information, or age, nor otherwise commit an unfair employment practice. WM will take affirmative action to ensure that applicants are employed, and that employees are dealt with during employment without regard to their race, creed, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, medical condition, military or veteran status, or national origin, ancestry, physical or mental Page 31 of 35 disability, genetic information, or age,. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. WM further agrees that this clause will be incorporated in all subcontracts entered into with suppliers of services, and all labor organizations furnishing skilled, unskilled and union labor, or who may perform any such labor or service in connection with this contract. Section 35 EMPLOYEES a. All subcontractors, superintendents, foremen, and workmen employed by WM shall be competent and careful workmen skilled in their respective trades. b. WM shall not employ any person who repeatedly engages in misconduct or is incompetent or negligent in the due and proper performance of its duties. c. WM shall enforce a policy which prohibits an employee from being under the influence of, intoxicated by, or otherwise impaired by drugs and/or alcohol while on duty or on company property. Any employee with a positive drug/alcohol screen will be subject to termination. d. Employees driving WM's vehicles shall at all times possess and carry an appropriate and valid vehicle operator's license issued by the State of California. WM's employees, officers, agents and subcontractors shall, at no time be allowed to identify themselves or in any way represent themselves as being employees or agents of City. f. All persons employed by WM to Collect Solid Waste shall be required to wear clean uniforms when on duty. Uniforms shall bear a distinctive logo identifying the wearer as an employee of WM. Section 36 CLAIMS WM shall pay all just claims for the payment of employee and other labor, furnished materials service and equipment, rentals, Disposal and all other operating expenses associated with and complying with the terms of this Agreement. Section 37 INDEPENDENT CONTRACTOR a. WM is an Independent Contractor. All services delivered by WM under this Agreement shall be provided under the coordination of City. It is understood and agreed that WM is an independent contractor and that no relationship of employer-employee exists between City and WM hereto. WM hereby agrees to hold City harmless from any and all claims that may be made against City, its Elected Officials, Officers, Employees or Agents based upon any contention by any third party that an employer-employee relationship exists by reason of this Agreement. Page 32 of 35 b. WM Control its Performance. It is further understood and agreed by the parties hereto that WM in the performance of its obligations hereunder is subject to the control or direction of City merely as to the result to be accomplished by the services hereunder agreed to be rendered and performed and not as to the means and methods for accomplishing the results. No permitted or required approval by City of WM pursuant to this Agreement shall be construed as making the City responsible for the manner in which WM performs its services or for any acts, errors or omissions of WM, such approvals are intended only to give City the right to satisfy itself with the cost and status of work performed by WM. c. City Does Not Employ WM or AU Subcontractors. If, during the performance of this Agreement, WM employs any third persons, such persons shall be entirely and exclusively under the direction, supervision and control of WM. All terms of employment, including hours, wages, working conditions, discipline, hiring and discharging or any other terms of employment, or requirements of law, shall be determined by WM, and City shall have no right or authority over such person or the terms of such employment, except as provided in Sections 7, 24 and 35 of this Agreement. d. WM Tax Responsibilities. It is further understood and agreed that WM shall issue W-2 Forms for income and employment tax purposes for all of WM's assigned personnel under the terms and conditions of this Agreement. Section 38 CONSTRUCTION AND INTERPRETATION It is agreed and acknowledged by the parties hereto that the provisions of this Agreement have been arrived at through negotiation, and that each of the parties has had a full and fair opportunity to revise the provisions of this Agreement and to have such provisions reviewed by their respective legal counsel. Therefore, the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not apply on construing or interpreting this Agreement. Section 39 WAIVER The waiver at any time by any party of any of its rights with respect to a default or other matter arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. Section 40 SUCCESSORS AND ASSIGNS This Agreement shall bind and inure to the benefits of the respective successors and assigns of the parties. Section 41 TIME Time is of the essence in the performance of each and every term of this Agreement, Page 33 of 35 Section 42 TERM OF AGREEMENT a. Term. This Agreement shall commence on September 1, 2023 (the "Commencement Date") and shall terminate on December 31, 2030. b. Renewal Options. WM shall have the option to renew this Agreement once, for an additional five (5) years by giving the City notice thereof not later than March 31, 2029. Thereafter, at the City's option, with WM's concurrence, this Agreement shall be renewable for successive seven-year increments by giving WM notice of renewal not later than 18 months' prior to the expiration of the then existing term. c. No Obligations Following A eement Expiration or Termination. At the end of the term of this Agreement, if City implements alternative) service programs in WM Service Area, WM shall have no financial claim against City of any type or amount. WM specifically acknowledges and understands in this regard that WM shall provide the required services under this Agreement, during the term of this Agreement, at the herein agreed compensation, and do so under circumstances where, despite having provided quality service to City, the Agreement may expire as provided above, at which point City would have no remaining financial, legal or other obligation to WM and WM would have no expectations of any such further obligation on the part of City. Section 43 NOTICES Notices concerning this Agreement shall be deemed to have been served when deposited in the United States Mail, first class postage prepaid, and addressed as follows: To City: City of Lodi City Manager 221 West Pine Street Lodi, CA 95240 WIVIL LA Waste Management Attn. Area Vice President 100 Vassar Street Reno, NV 89502 Section 44 ENTIRE AGREEMENT AND RENEWALS This Agreement constitutes the sole, final, complete, exclusive, integrated expression and statement of the terms and conditions of this Agreement and understanding between City and WM concerning the subject matter addressed herein, and supersedes all prior negotiations, representations, or agreements, written or oral, relating to the subject matter of this Agreement. This Agreement shall not be considered modified, altered, changed or amended in any respect unless in writing and signed by both parties hereto. This Agreement may be amended from time to time by mutual agreement of City and WM; and, with the consent of WM, but at the sole, independent election of the Lodi City Council to do so, may be renewed. Page 34 of 35 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. CITY OF LODI, a municipal corporation USA WASTE OF CALIFORNIA, INC., a Delaware Corporation authorized to do business in California and DBA CENTRAL VALLEY WASTE SERVICES STEPHEN SCHWABAUER City Manager ATTEST: OLIVIA NASHED City Clerk APPROVED AS TO FORM: KATIE LUCCHESI, Interim City Attorney By: Name: Title: Page 35 of 35 EXHIBIT A AGREEMENT FOR SOLID WASTE COLLECTION, RECYCLING AND GREEN WASTE COLLECTION AND PROCESSING SERVICES IN THE CITY OF LODI DATED JULY 7, 2008 EXHIBIT "A" CITY OF LODI PUBLIC WORKS DEPARTMENT AMENDED AND RESTATED AGREEMENT FOR SOLID WASTE COLLECTION, RECYCLING AND GREEN WASTE COLLECTION AND PROCESSING SERVICES IN THE CITY OF LODI BY AND BETWEEN THE CITY OF LODI AND USA WASTE OF CALIFORNIA, INC., dba CENTRAL VALLEY WASTE SERVICES, A WASTE MANAGEMENT COMPANY. THIS AMENDED AND RESTATED AGREEMENT (this "Agreement") is made and entered into this day of IA -14 2008, by and between the CITY OF LODI, hereinafter referred to as "CITY" and USA WASTE OF CALIFORNIA, INC., DBA CENTRAL VALLEY WASTE SERVICES, hereinafter referred to as "CONTRACTOR." WITNESETH WHEREAS, Contractor and the City are parties to the Agreement for Solid Waste Collection, Recycling and Green Waste Collection and Processing Services in the City Of Lodi dated April 1, 2002, as subsequently modified by rate adjustments (the "Original Agreement"); and WHEREAS, the City and Contractor wish to amend and restate the Original Agreement all on the terns provided for herein; and WHEREAS, Contractor has provided solid waste management services to City and Contractor has represented and warranted to City that it has the experience, responsibility, and qualifications to provide to the residents and businesses in the franchise area, services for the collection and safe transport to disposal facilities of Solid Waste and City determines and finds that the public interest, health, safety and well-being would be best served if Contractor were to provide such services to residents and businesses; and WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 ("AB939), has declared that it is within the public interest to authorize and require local agencies to mare adequate provisions for Solid Waste handling within their jurisdictions, and has established a Solid Waste management process which requires cities and other local agencies to implement plans for source reduction, reuse and recycling as part of their integrated waste management practices; and WHEREAS, City and Contractor are mindful of the provisions of the laws governing the safe collection, transport, recycling and disposal of Solid Waste, including AB 939, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"); and WHEREAS, City and Contractor desire to enter into a new agreement to provide for specified solid waste collection, curbside recyclable collection and processing, neighborhood cleanup collection, green waste collection and processing, and illegal dumping remediation services; NOW, THEREFORE, in consideration of the mutual promises herein, the parties hereto agree that the Original Agreement is hereby amended and restated in its entirety as follows: Section I INCORPORATION OF ABOVE RECITALS The foregoing recitals are hereby incorporated into this Agreement by reference. Section 2 DEFINITIONS For purposes of this Agreement, the following definitions apply in addition to those not included herein but that are defined by Municipal Code: a. Electronic Waste means discarded electronics equipment such as cell phones, computers, monitors, televisions, and other items containing cathode ray tubes (CRT's). b. Household Hazardous Waste means any hazardous waste generated incidental to owning or maintaining a place of residence, but does not include any waste generated in the course of operating a business concern at a residence. (California Health and Safety Code Division 20, Chapter 6.5, §25218(l)(e)). c. Refuse - Any and all discarded items and substances of every kind, including salvageable or Recyclable Materials, and garden wastes, but not including sewage, septic tank contents, sand trap contents, grease trap contents, infectious wastes or hazardous wastes as defined by state and/or federal law. d. Recyclable Materiais — Refuse consisting of plastic bottles, tin, steel and aluminum cans, glass bottles and jars, newspapers, brown paper bags, corrugated cardboard, chipboard, colored paper and bags, magazines, white and colored paper, as well as all other materials included in the State CRV program. e. Universal Waste means electronics (VCR's, cell phones, radios), batteries, mercury thermostats, fluorescent lights, mercury thermometers, and other products containing mercury or other heavy metals. f. Yard and Garden Waste ((reen Waste.- Refuse consisting of grass, leaves, wood chips, green plants, weeds, tree branches and garden trimmings, but does not include stumps or similar bulky wood materials. Section 3 SERVICE AREA All customers, except industrial, within the City shall be exclusively serviced by Contractor. The service area shall be the entire incorporated boundaries of the City of Lodi, including any changes to those boundaries that may occur during the term of this Agreement to the extent allowed by law. Section 4 SERVICE TYPES All single family dwelling and duplex customers shall have multi -cart service. All other customers shall have the option to utilize cart service or container service a. Multi -cart service includes the following: Refuse cart (for non -Recyclable Materials and non -green waste) (brown) — 1-20 gallon, 1-35 gallon, 1-64 gallon or 1-96 gallon • Recycling cart (green) - up to 3-64 gallon • Yard and Garden cart (gray) - up to 3-96 gallon Cart sizes indicated are minimum sizes and may be increased at Contractors option. b. Container refuse service will be offered in sizes ranging from one (1) cubic yard to fifty (50) cubic yards. A maximum of two (2) recycling or yard and garden containers will be offered to each customer with no additional fees. These containers will be offered in two (2) and four (4) cubic yard sizes. c. Container refuse customers may have the option to utilize cart recycling and yard and garden services. d. Multi -cart service customers may have the option to use container recycling service as approved by City in consultation with Contractor on a case by case basis. Section 5 SCOPE OF SERVICE a. Multi -cart collection service of refuse (other than for Recyclable Materials and green waste) will be once a week, whereas Recyclable Materials and green waste will alternate on a weekly basis Monday through Friday. Extra frequency and special services will be offered for additional charges as needed or requested by customer. b. Container service levels will be determined by the needs of the individual customer. Frequency of collection will be determined by the need of the customer. Service will be available Monday through Saturday at standard rates. Sunday service will be offered as needed or requested by customer for an additional charge. c. Service shall include providing all labor, equipment, tools, materials, trucks, containers, and carts, supervision, management, and all other items incidental thereto, and to perform all work necessary, to complete the work as specified, and in the prescribed manner and time for the collection of refuse, Recyclable Materials, neighborhood cleanup materials, and green waste, and the provision of other specified services in the City. d. Contractor will provide a Recycling and Education Awareness Program. As an incentive and recognition for City and schools participating in the Recycling Education Awareness Program., Contractor will donate on an annual basis, a portion of the revenues available from the sale of Recyclable Materials generated from the City to the schools within the City limits of Lodi. The donated amount will be at least twenty-eight thousand five hundred dollars ($28,500) per year based on the Contractor's established criteria. This amount will increase five hundred dollars ($500) per year over the life of this agreement. Contractor shall report to City annually. e. Contractor in coordination with City will provide comprehensive AB 939 services including: • Contractor shall submit a draft of the Source Reduction and Recycling Element (SRRE) document for City's review and assist City in it's submission. Contractor shall assist City in preparing the Annual Report, including all necessary documentation and reports. • Contractor shall prepare the quarterly and, annual tonnage reports and submit to City. Contractor shall defend, indemnify and hold harmless City with respect to the City's failure to meet its AB 939 diversion goals as a result of the Contractor's failure to meet the applicable diversion goals for the materials collected by Contractor. Such indemnity shall be limited to exclude all damages or claims to the extent that they are caused by, arise from or in connection with (i) any negligent actions or omissions or willful misconduct of the City, or its employees, agents, appointed and elected officials; or (ii) the failure of the City or its employees, agents, appointed and elected officials to comply with or enforce applicable solid waste and/or recycling statutes, ordinances, regulations, or other requirements, other than failures attributable to Contractor's performance under this Agreement. The extent of the Contractor's liability under this Section shall not exceed the amount of Contractor's proportionate share of fault. f. Contractor will provide an illegal dumping pick-up program coordinated between City and Contractor. The Contractor will provide up to thirty-five (35) illegal dump collections during each calendar year. Each collection will be limited to two (2) cubic yards. The illegal dumping service will be provided on public property and City and railroad rights of way only. City will notify Contractor of the illegal dump location, Contractor will be required to collect item(s) within five (5) business days of notification. Contractor will not be required to pick-up toxic or hazardous materials. Upon verification of the identity of the person(s) responsible for the illegal dumping, City will consistent with the exercise of the City Attorney's prosecutional discretion, prosecute in accordance with local and state litter laws and collect the fees equal to Contractor's disposal cost per ton plus an hourly cost for equipment and labor charges in addition to any fees or fines that may be imposed by City. City will pay Contractor for costs incurred if fees are collected. City shall cooperate with Contractor to verify the identity of persons responsible. For illegal dump collections in excess of thirty-five (35) per calendar year and those in excess of two (2) cubic yards, the City will pay Contractor for such services at the disposal cost per ton and established hourly rate then in effect for each fully -crewed vehicle employed in providing such service from the time the vehicle leaves the Contractor's facility until the time it returns there. g. Contractor will provide an annual neighborhood curbside clean-up collection service for single family residential customers once a year. This service will be limited to the equivalent of six 35 - gallon refuse carts at the curb. Items must be bagged, bundled, boxed or containerized and weigh less than fifty (50) pounds per container. Items to be disposed must be at the curb, directly in front of the residence and must be away from parked cars and refuse carts. Items must be at the curb by 5:00 a.m. on the customer's regular refuse service date. Contractor will notify all residents of a schedule indicating the dates of the clean up and provide instructions approved by City. This annual service is at no additional charge to all residential customers. Unacceptable items include dirt, concrete, liquids, toxic or hazardous materials, cathode ray tubes (CRT) and large heavy metals such as auto bodies and engines. h. The following two services shall be provided to all single family residential customers to assist in helping the City of Lodi discourage illegal dumping and the accumulation of refuse: Contractor will provide each single family residential customer with one (1) "Transfer Station Voucher". These vouchers will allow each customer with the ability to bring to Contractor's transfer station a volume of up to two (2) cubic yards of refuse per voucher at no cost. Voucher must be presented upon entrance into transfer station. Unacceptable items include commercial waste, dirt, concrete, tires, liquids, toxic or hazardous materials, cathode ray tubes (CRT) and large heavy metals such as auto bodies, engines, transmissions, refrigerators and air - conditioners that still have CFC's. ■ Contractor will provide at its transfer station an annual dump day. At this event residential customers within the city limits of Lodi may bring a car, pick-up or trailer (not to exceed two (2) cubic yards) load of refuse at a reduced transfer station fee. Proof of residency shall be required. Unacceptable items as defined above. Contractor shall get approval from City for the dates of the above services. i. Contractor shall be responsible for all costs associated with the advertising and promotion of special services and activities within this agreement. J. Contractor will provide transporting, marketing and processing of all collected Recyclable Materials. Contractor shall have the full and exclusive right to all Recyclable Materials or salvageable material collected in connection with the solid waste and shall have the exclusive Tight to any funds realized from the sale of Recyclable Materials or salvaged materials. k. Contractor will provide disposal services for City Street Sweeping debris and the Annual Fall Leaf Removal at no additional charge to the City. The following conditions will apply: • Disposal is limited to twelve hundred (1,200) tons per year. Leaves and street sweeping debris will be delivered by the City to the Contractor's Transfer Station and Contractor shall issue a weight tag to the City. Leaves must be free of contamination. The City will pay Contractor's regular disposal fee for loads that include contaminants in excess of 1% by weight or volume. 1. Cit y_5en ices. The Contractor will service Refuse and Recycling containers designated for use at City buildings and properties throughout the City at no additional charge, so long as such containers are provided for City use. At the current time, the City has public containers at approximately 20 locations as depicted on Exhibit [E]. If additional service is needed during the term of the Agreement, the Contractor will provide collection of not more than 10 additional such Refuse and Recycling containers at no additional charge. The City will pay the Contractor for additional such containers in excess of that amount based on then current service rates for non -City services as established by the City. M. Special Collection Events. Contractor shall host four (4) collection events per year to be conducted by a third -party vendor to collect a -waste and universal waste at Contractor's transfer station or alternative permitted site within the City agreed to by Contractor and City. Contractor shall host one (1) collection event per year to be conducted by a third -party vendor to collect household hazardous waste at Contractor's transfer station or alternative site within the City agreed to by Contractor and City with San Joaquin County Public Works as the Sponsoring Agency. n. Additional Services. If City requests new programs then Contractor shall provide such service programs within the City if requested by the City, provided that the City provides increased rates and/or additional funding at a level that is mutually agreeable to City and Contractor. Contractor shall not be obligated to institute any such new program until such time as Contractor's compensation is increased to provide the funding to support such new programs. The funding of any such new programs required by City of Contractor shall be determined by separate negotiated agreements between City and Contractor, consistent with the provisions of Section 7 of this Agreement. o. Program Coordination. Contractor understands and acknowledges that Contractor is providing an integral part of a City service. Therefore Contractor shall cooperate with City and its citizens in carrying out the basic task of collecting solid waste, except as provided herein, City shall have no role in Contractor's provision of solid waste service to any other jurisdiction. p. Schedules, ute and Literature. Contractor shall make available to City maps and schedules of collection routes and keep such information current at all times. Contractor shall cooperate with the City to coordinate collection route schedules and City street sweeping schedules. Maps and schedules of collection routes shall be available to City not later than thirty (30) calendar days prior to the initiation of collection operations or changes in operation. 2. Maps and schedules of collection routes shall show the day(s) for regularly scheduled pickup for each route and area. 3. Not less than one week prior to beginning collection operations or changing routes or schedules that alter the day(s) of collection, Contractor at its expense, will so notify each customer affected. Notice shall be made to individual customers, in writing and by public notification by means of local news media. When a scheduled collection day falls on a holiday (i.e., New Year's Day, Memorial Day, independence Day, Labor Day, Thanksgiving Day or Christmas Day), Contractor may, at its option and upon notice to its customers by publication in a local' newspaper of general circulation, collect either on the holiday or on the day immediately prior to, or delay collection schedules one day. Contractor may also have the option to reschedule collection to the Saturday before or after the holiday and provide written notice to each customer at least two (2) weeks in advance. q. Care and Diligence. Contractor shall exercise all reasonable care and diligence when collecting refuse or providing other services as required in the scope of services. Contractor must exercise due care so as to prevent spilling, scattering, or dropping of collected materials through collector activity and shall immediately, at the time of occurrence, clean up such spillage, dropping or scattering. Quality of service provided by Contractor shall be monitored and periodically reviewed by City. Contractor shall maintain quality of service. if City determines that Contractor's quality of service is not being maintained, the City shall provide written notice of such failure to Contractor including a description of the specific deficiencies identified by City and the action necessary to correct such deficiencies. If Contractor fails to correct these deficiencies within ten (10) days of receipt of such notice, such failure shall constitute cause for termination of the Agreement pursuant to Section 29 hereof. r. Place of Collection. The normal collection point for cart services shall be at the curbside. Backyard service shall be offered at an additional cost as specified in Exhibit A, B and C. The normal collection point for container services will depend on property and business needs that meet City's planning and zoning laws and regulations. s. Refuse 0 uantities and Preparations. Customers will be limited in the amounts of solid waste they place for disposal as noted in previous sections and as prepared for collection as noted herein: No single item, bag, box or bundle of refuse shall weigh more than fifty (50) pounds, combined cart and contents, except for automated and commercial truck containers. Containers will be limited by type of materials and size of container, not by weight. 2. Loose un -containerized refuse will not be serviced unless previous arrangements have been made with Contractor. Section 6 BILLINGS AND PAYMENTS a. Contractor agrees to pay the City an annual street maintenance fee of $541,500 effective the first year of this agreement (January 1, 2009 through December 31, 2009). The City shall bill Contractor in equal monthly payments and the City shall deposit in the street fund, commencing January 1, 2009. The street maintenance fee shall be increased by the same percentage amount by which Contractor's rates are increased pursuant to sections 7(b). b. City shall, as part of its municipal utility billing system, bill regularly scheduled customers and collect payments from them for the refuse collection and transportation services provided by this Agreement. Contractor shall provide City with all necessary billing information as soon as possible but no later than the City's regularly scheduled billing date. City will fiunish billing schedule to Contractor. City will bill contractor $20,078.75 per month for billing services effective as of the date of this Agreement and may increase the amount up to the percentage increases shown in sections 7(b). If City determines to increase billing charge, City will notify Contractor of said increase thirty days before increase becomes effective. c. All solid waste services are mandatory to ensure adequate protection of public health and safety as provided by City Ordinance. Contractor shall provide mandatory solid waste collection, processing and disposal services required under this Agreement for the rates set forth as attached hereto and incorporated herein as Exhibit A, B, C and D, as the same may be adjusted in accordance with Section 7. Rates for any non -mandatory services shall be established by Contractor. d. City shall remit to Contractor each Friday, the net collections in the previous week after deducting from collections a 4.8% franchise fee, City hereby agrees to keep and maintain proper records of its collection hereunder and to make such records available to Contractor or its authorized agent for audit at any reasonable time in the office of the City of Lodi Finance Department. e. Contractor shall set up a system of accounting to assure that all accounts are in fact being served by Contractor with appropriate refuse collection, curbside recycling, neighborhood cleanup, green waste collection, processing and other services being provided, as otherwise required by this Agreement. f. Contractor shall provide the field and office interface in Lodi with its customers. Requests for service shall be made by customers through City. City shall maintain in writing documentation of all such account contacts on a daily basis so that appropriate customer billing and Contractor compensation may be facilitated. Section 7 RATES a. Rates collected for services shall be set forth in Exhibit A, B, C and D, subject to adjustment as provided in this Agreement. Additional services not in exhibits to be determined by Contractor. b. On April 1, 2009, and on each anniversary thereof during the term of this Agreement, the rates shall be adjusted in a percentage amount equal to eighty percent (80%) of the annual change in the Consumer Price Index for all Urban Consumers for San Francisco -Oakland -San Jose, California area, All Items (1982-84=100) published by the Bureau of Labor Statistics (the Index) for the twelve (12) month period ending December 31 of the preceding calendar year. c. In January of each year, Contractor shall send to City a revised rate schedule reflecting the new rates, as adjusted by the Index as provided in Section ?.b. City Council will act on rate adjustments to be effective on April 1 of that year. d. In the event the Consumer Price Index for all Urban Consumers for San Francisco- Oakland -San Jose, California area, All Items (1982-84=100) is no longer published by the Bureau of Labor Statistics, Contractor and City shall negotiate in good faith to agree upon a suitable replacement index reflective of the cost of living in the franchise area. e. Contractor may request and City may grant rate changes when contractor incurs increased costs due to a change in federal, state or local laws, rules, regulations, ordinances (other than changes in federal or state income tax laws) or extraordinary increases in fuel, landfill and energy costs. f. All extra and special charges are subject to City Review. S. All rate changes except the base rate in paragraph a. of this Section and the CPI adjustments in paragraph b. and c. of this Section (which have previously been subject to a proposition 218 process) shall be approved and adopted under the procedures set forth by Proposition 218. For Contractor -requested rate changes, Contractor shall reimburse City for all costs incurred by City in connection with the Proposition 218 procedures. �;lf, at any time, a majority protest under Proposition 218 procedures precludes any rate adjustment detennined to be appropriate by both City (which determination shall not be unreasonably withheld) and Contractor to compensate Contractor for increases in costs as described in paragraph e. of this Section, Contractor shall be granted the option to negotiate with the City, in good faith, a reduction of services equal to the value of the rate increase request denied under protest of Proposition 218 procedure.. Section 8 MATERIALS TO BE COLLECTED The Contractor shall furnish all labor, supervision, material, permits, licenses, and equipment necessary to provide basic solid waste, recyclable, neighborhood cleanup, yard and garden waste collection for occupants of specified dwelling units and business establishments within the City, as follows: a. Residential and commercial Refuse, including properly containerized residential and commercial refuse and/or rubbish. b. Residential and commercial Yard and Garden Waste, including grass clippings, weeds; brushes, brush clippings and branch clippings when properly containerized. c. Residential and commercial Recyclable Materials, properly containerized. d. Neighborhood cleanup disposables and Recyclable Materials. e. Illegal dump services f. Contractor shall not collect toxic, or hazardous waste unless and under such conditions as permitted to do so by the State Health Department, except as expressly required by this Agreement. g. Contractor may refuse to service a location as specified only when refuse contains illegal materials or is not placed in approved containerization or located in the required pickup area. h. Contractor shall discontinue solid waste service at any location as set forth in a written notice sent to it by City. Upon further notification by City, Contractor shall resume collection service on the next regularly scheduled collection day. i. All containers will be returned to their proper location after dumping. Section 9 COLLECTION CONTAINERS All materials to be collected shall be placed in City approved containers by customers. Section 10 RUBBISH TOO LARGE OR TOO HEAVY FOR COLLECTION Items too large or heavy for proper containerization such as bundles of brush and branches, heavy earthen materials and other large items that are out of the scope of normal services will be collected for a negotiated price with the customer. If customer requests such special service, these special services will be scheduled outside of the normal collection schedule. Section 11 NOTIFICATION In the event the residents shall place items for collection that are too large or otherwise unsuitable for loading into packer equipment, or otherwise misuse the collection service, the Contractor will notify the customer by a tag system approved by City as follows: • Contractor shall provide an opportunity for the customer to correct the deficiency. Contractor will contact the customer by telephone and provide a minimum of two (2) tags reminding customer of the problem, but still provide the collection service. • On the third tag, Contractor shall give the customer notice of the reasons for refusing to collect, citing the appropriate reasons therefore. A special charge will be assessed to the customer for servicing of container if problem is not resolved. 10 • The notice shall be given by means of a tag no smaller than 3" X 7" securely fastened to the container or article not collected. Section 12 INDUSTRIAL COLLECTION Contractor may provide industrial refuse collection services in the City of Lodi in accordance with City Municipal Code. Section 13 TIME OF COLLECTION Contractor shall not commence collection of solid waste in residential areas prior to 5:30 a.m. and 5:00 a.m. in commercial areas or continue collection after 6:00p.m. All collections shall be made as quietly as possible, and conform to any Federal, State, County or City noise level regulations. Section 14 COMPLAINTS a. Contractor will receive and handle all complaints. Upon receipt of the complaints, Contractor shall investigate and resolve the complaint with the complainant. Contractor shall keep a record of all complaints and forward to City on a quarterly basis. Should Contractor not render collection service within forty-eight (48) hours after a missed collection complaint is reported to its authorized representative, City may make whatever arrangements are necessary, in its opinion to provide the collection service. Contractor will reimburse the City for all costs, charges and damages incurred by City, together with the costs of completing the work and all such costs may be charged against any monies due or which may become due Contractor. Contractor shall identify and contact complainant to alleviate the condition causing the complaint. b. City shall notify Contractor of any complaint reported to City. It shall be the duty of Contractor to take whatever reasonable steps may be necessary to remedy the cause of the complaint within forty-eight (48) hours after initial receipt and notify City of its disposition. Section 15 DISPOSAL SITE DESIGNATION a. All refuse collected in the Service Area shall be transported by Contractor to an approved disposal site. Loads taken to disposal sites will be accounted for by weighing and paid for by Contractor at the then current rate. Contractor shall follow all established rules and regulations when operating on any disposal site. Contractor's operators shall follow all directions given by the landfill spotter when delivering solid waste material. b. Contractor may haul waste collected under the terms of this Agreement to Contractor's Transfer Station. Contractor shall be required to weigh all loads collected in the City and hauled to the Transfer Station. Contractor will keep track and maintain the records of tonnages hauled to and transferred from the Transfer Station by type, (i.e., refuse, recyclable materials and green waste), Except for materials retained for recycling, Contractor shall transport collected refuse to the North County Sanitary Landfill for disposal or to such other disposal sites as City may from time to time designate. 11 Section 16 COLLECTION VEHICLES a. Contractor shall provide and maintain during the entire period of this Agreement a fleet of modem packer -type collection vehicles sufficient in number and capacity to efficiently perform the work and render the services required of Contractor by this Agreement. Contractor shall provide evidence satisfactory to City of its ability to furnish adequate backup vehicles and personnel. b. Each collection vehicle shall be kept in a sanitary condition, good appearance and good repair at all ti.rnes. City reserves the right to inspect Contractor's collection vehicles at any reasonable time to ascertain said condition. c. The noise level for the collection vehicles during the stationary compaction process shall meet current State and local standards. d. Each truck at all times shall be equipped with a shovel and a broom or rake, intended for the collection of spilled refuse. All vehicles shall be equipped with spill kits to be used in the event of a spill and to prevent fluids or oils from flowing into storm -water drains. e. Contractor's vehicles and other equipment must be clearly identified with the name and phone number of Contractor's office on each side of the equipment. f. Contractor shall furnish to City upon request a list identifying all equipment to be used in fulfilling this agreement and notify City of any additions or deletions. g. Contractor's primary fleet of compactor collection vehicles shall not exceed eight years (8) in age during the term of this agreement, without the City's consent. Section 17 LAWS TO BE OBSERVED Contractor shall at all times observe and comply with all Federal and State laws, local laws, ordinances, orders, rules, and regulations of the Federal, State, County, or local governments. Section 18 FAMILIARITY WITH LAWS AND ORDINANCES The sighing of this Agreement shall be considered as a representation that Contractor is familiar with all Federal, State, and local laws, ordinances, and regulations which affect those engaged or employed in the work, or equipment used in the work or which affect the conduct of the work; and, no plea of misunderstanding will be considered on account of ignorance thereof. Section 19 TAXES Contractor shall pay all applicable Federal, State and local taxes. 12 Section 20 INSURANCE Contractor shall secure and maintain through out the duration of this Agreement, insurance of such types and not less than amounts as hereinafter listed. a. Workman's Compensation. Contractor shall carry with a company authorized under the laws of the State of California, a policy to protect Contractor against liability under the Workman's Compensation and Occupational Disease Statues of the State of California. b. Vehicle Liability Insurance. Contractor shall carry, in Contractor's own name, a policy under a comprehensive form to insure the entire vehicle liability for Contractor's operation with limits of not less than $5,000,000 combined single limit auto liability. The policy shall be primary and name City, its Elected Officials, Officers, Agents and Employees as additional insureds with respect to the operation of vehicles owned or operated by the Contractor while performing work under the terms of this contract. c. General Liability. Contractor shall file with City and maintain on file throughout the term of this contract a comprehensive liability insurance policy issued by a company duly authorized to do business in the State of California, insuring bona City and Contractor, with respect to the work performed by Contractor under the terms of this Agreement in an amount of not less then $2,000,000.00 each occurrence combined single limit for injury or death to persons and for damage to property. d. A certificate of Insurance naming City, its Elected Officials, Officers, Agents and Employees as additional insured shall be filed with the City for each policy. Each certificate must be presented in a form and with provisions subject to the Risk Managers approval. e. Regardless of such approval by City, it shall be the responsibility of Contractor to maintain adequate insurance coverage at all times, and its failure to do so shall not relieve it of any contractual obligations or responsibility. Failure on the part of Contractor to maintain these insurance policies in full effect will be considered as a failure in Agreement performance and will be treated as such by City. Section 21 CONTRACTOR TO INDEMNIFY CITY 13 Contractor shall indemnify and save harrniess City, its Elected Officials, Officers, Employees and Agents from any and all claims, suits, or actions made or brought against the City, its officers, employees and agents for any and all injuries or damages, including, but not limited, attorney's fees and costs, experts' fees and costs, and consultants' fees and costs incurred by City in the defense of any such claim, suit or action, which results from or is caused by the negligent -acts or willful misconduct of Contractor or its agents or subcontractors in doing the work and rendering the services provided far by this Agreement, excluding injuries or damages to the extent that they are caused by the negligent acts or willful misconduct of City or its employees, agents, subcontractors or elected officials. The extent of Contractor's liability under this section shall not exceed the amount of Contractor's proportionate share of fault. Section 22 PERMITS The Contractor shall obtain, at its own expense, all permits and licenses required by Federal, State, and local laws or ordinance and maintain same in full force throughout the term of this Agreement. Section 23 PERSONAL LIABILITY OF PUBLIC OFFICIALS Neither the City Council of Lodi nor any officers, employees or agents shall be personally responsible for any liability arising under or growing out of this Agreement or operations of Contractor under the terms of this Agreement. Section 24 CITY NOT LIABLE FOR DELAY It is further expressly agreed that in no event shall City be liable or responsible to Contractor or to any other person for or on account oFany stoppage or delay in the work herein provided for by injunction or oilier legal or equitable proceedings filed by persons not a party to this Agreement, or from or by or on account of any delay for cause over which City has no control. Section 25 PUBLIC CONVENIENCE AND SAFETY Contractor shall observe City Ordinances relating to encroachments, obstructing streets, keeping alleys or other rights-of-way open and protecting same, and shall obey all laws and City Ordinances controlling or limiting those engaged in the work. Contractor is granted the right of using the streets or alleys for the pu3pose of doing the work specified in this Agreement, but is not granted exclusive use of such streets or alleys. Contractor shall handle the work in a manner that will cause the least possible inconvenience and annoyance to the general public and to the property owners consistent with Contractors reasonable operational requirements. There is hereby reserved to City, every right and power which is required to be herein reserved or provided by any ordinance or Charter of City, and Contractor agrees to be bound thereby and to comply with any action or requirements of City in its exercise of such rights or power, heretofore or hereafter enacted or established. The awarding of this Agreement as provided for herein, shall not constitute a waiver or bar to the exercise of any governmental right of City. No right or exemption shall be granted to Contractor except those specifically prescribed herein. 14 Section 26 EXAMINATION OF THE SITE OF THE WORK By the signing of this agreement, Contractor represents that it has carefully examined the collection sector, the disposal sites, and that Contractor is fully informed concerning the requirements of this Agreement, the physical conditions to be encountered in the work:, and the character, quality and the quantity of service to be performed, and of materials and equipment to be furnished. Negligence or inattention of Contractor in determining site conditions prior to signing the contract, in any phase of its performance of the work, shall be grounds for refusal by the City Manager to agree to additional compensation for additional work caused by such negligence or inattention. Section 27 VERBAL AGREEMENTS No verbal agreement or conversation with any officer, agent or employee of City, either before or after execution of this Agreement, shall affect or modify any of the terms or obligations contained in this Agreement. Any such verbal agreement or conversation shall be considered as unofficial information and in no way binding upon City or Contractor. Section 28 ASSIGNMENTS AND SUBCONTRACTING No performance to be rendered or payment due under this Agreement may be assigned or transferred, and Contractor shall not subcontract any work hereunder other than those specified in this agreement, without the prior written approval of the City Council. Such assignment or subcontract will not be unreasonably withheld by the City Council. Notwithstanding the foregoing, Contractor shall have the right upon written notice to the City Council to engage in reorganizations, mergers, consolidations or similar transactions between or among entities owned by the same direct or indirect parent entity. Section 29 BREACH OF CONTRACT - TERMINATION WITH CAUSE a. If Contractor fails to provide the solid waste, recycling, neighborhood cleanup, and green waste services required by this Agreement for a period in excess of five (5) consecutive, sobeduled working days, other than by reason of Force Majeure, City may take the following actions: 1. At its option, take possession of all of Contractor's equipment and facilities used in the performance of this Agreement. 2. Employ such means as it may deem advisable and appropriate to continue work until the matter is resolved and Contractor is again able to carry out its operations under this Agreement. 3. Charge any and all operating expenses incurred by City against any money then due or to become due Contractor and, should the City's cost for continuing the operation exceed the amount due Contractor, collect the amount due from Contractor and also to assert a lien on all properties of Contractor. 15 4. During such period, the liability of City to Contractor for loss or damage to equipment and facilities so used shall be that of a bailee for hire, Ordinary wear and tear being specifically exempt from such liability. b. In the event Contractor shall be adjudged bankrupt under Chapter 7, either by voluntary or involuntary proceedings, then this Agreement shall immediately terminate and in no event shall this Agreement be, or be treated as, an asset of Contractor after adjudication of bankruptcy. c. Failure to perform any material part of this Agreement, other than by reason of Force Majeure, shall be considered a breach of this Agreement. Should Contractor fail to perform any of this Agreement's material obligations, other than by reason of Force Majeure, City may in its option terminate this Agreement after the lapse of the applicable cure period. d. In the event of termination of this Agreement for breach, default, or bankruptcy as specified above, City shall have the right to forthwith take possession of all Contractor's equipment, facilities, and records used in the performance of this contract. 1. City shall have the right to retain possession of said equipment, facilities, and records until other such items can be acquired by City for operation of the system or another Contractor is engaged to perform the service. 2. City shall have the right at its option to purchase Contractor's equipment and facilities at the fair market value thereof. 3. City shall pay Contractor the reasonable rental value of such equipment, facilities during the time the same are used by City. Liability of City to Contractor during this period shall be that of a bailee for hire, ordinary wear and tear specifically exempt from such liability. e. City hereby expressly retains the right to terminate this Agreement with cause prior to the expiration of the full term of this Agreement. Termination may be effectuated by service of notice upon Contractor, in writing, of City's intent to terminate. Service of the notice to terminate shall be deemed to have been made five days after the date of mailing of the notice to Contractor by City. Nothing contained in this Agreement shall be construed to affect the right of City to terminate this Agreement for cause or breach of contract, Contractor and City may agree, upon mutually satisfactory terms, for the termination of all or any part of the business of this Agreement prior to the expiration of the term of this Agreement. f. Criminal Conviction. In the event any contract manager, officer or director of Contractor is convicted of fraud, bribery or attempted bribery of a public officer or employee, embezzlement, extortion, racketeering, false claims, false statements, forgery or any similar felony involving business dishonesty, Contractor shall promptly terminate from employment or remove from office the convicted employee, officer or director and eliminate the ability of such employee, officer or director to manage, supervise or influence the decisions or actions of the Contractor or any parent company of Contractor. If Contractor fails to comply with the foregoing obligation, 16 Contractor may be considered in breach of this Agreement and City may terminate this Agreement at City's option as provided in this section. g. Force Majeure. The performance of this Agreement may be discontinued or temporarily suspended in the event of Force Majeure. Contractor shall not be deemed to be in default and shall not be liable for failure to perform under this Agreement if Contractor's performance is prevented or delayed by Force Majeure, The Parties agree that the settlement of strikes, lockouts or other industrial disturbances, and litigation, including appeals, shall be entirely within the discretion of Contractor, and Contractor may make settlement thereof at such time and on any such terms and conditions as it may deem to be advisable, and no delay in making such settlement shall deprive Contractor of the benefit of this Section. "Force Majeure" means acts of God including landslides, lightning, forest fires, storms, floods, freezing and earthquakes, civil disturbances, strikes, lockouts or other industrial disturbances, acts of the public enemy, wars, blockades, public riots, explosions, governmental restraint or other causes, whether of the kind enumerated or otherwise, which are not reasonably within the control of the party affected by the Force Majeure event. h. Cure. Except for the occurrence or existence of Force Majeure, in the event of any material failure or refusal of Contractor to comply with any obligation or duty imposed on Contractor under this Agreement, Contractor and City shall meet and confer in good faith in an effort to agree on a resolution and cure of the breach. If the parties are unable to agree on the informal resolution or cure of the breach, City shall have the right to terminate this Agreement upon written notice to Contractor if, following such informal meeting: (i) the City shall have given written notice to Contractor specifying the particular default or defaults which, unless corrected, constitute a material breach of this Agreement on the part of Contractor, and (ii) Contractor shall have failed to cure such default or defaults within thirty (30) calendar days thereafter or, if the breach or default cannot reasonably be cured within such period and if diligent efforts to cure promptly commence, then the cure period shall continue as long as such diligent efforts to cure continue, but not beyond a period of ninety (90) calendar days. Section 30 NON-DISCRIMINATION IN EMPLOYMENT Contractor, in performing under this Agreement, shall not discriminate against any worker, employee or applicant, or any member of the public because of race, creed, color, religion, sex or national origin, nor otherwise commit an unfair employment practice. Contractor will take affirmative action to ensure that applicants are employed, and that employees are dealt with during employment without regard to their race, creed, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Contractor further agrees that this clause will be incorporated in all subcontracts entered into with suppliers of services, and all labor organizations furnishing skilled, unskilled and union labor, or who may perform any such labor or service in connection with this contract. Section 31 EMPLOYEES 17 a. All subcontractors, superintendents, foremen, and worlanen employed by Contractor shall be competent and careful workmen skilled in their respective trades, b. Contractor shall not employ any person who repeatedly engages in misconduct or is incompetent or negligent in the due and proper performance of its duties. c. Contractor shall enforce a policy which prohibits an employee from being under the influence of, intoxicated by, or otherwise impaired by drugs and/or alcohol while on duty or on company property. Any employee with a positive drugialcohol screen will be subject to termination. d. Employees driving Contractors vehicles shall at all times possess and carry an appropriate and valid vehicle operator's license issued by the State of California. e. Contractor's employees, officers, agents and subcontractors shall, at no time, be allowed to identify themselves or in any way represent themselves as being employees or agents of City. f. All persons employed by Contractor to collect refuse shall be required to wear clean uniforms when on duty. Uniforms shall bear a distinctive logo identifying the wearer as an employee of Contractor. Section 32 CLAIMS Contractor shall pay all just claims for the payment of employee and other labor, furnished materials service and equipment, rentals, disposal and all other operating expenses associated with and complying with the terms of this Agreement. Section 33 INDEPENDENT CONTRACTOR a. All services delivered by Contractor under this Agreement shall be provided under the coordination of City. It is understood and agreed that Contractor is an independent contractor and that no relationship of employer-employee exists between City and Contractor hereto. Contractor hereby agrees to hold City harnaless from any and all claims that may be made against City, its Elected Officials, Officers, Employees or Agents based upon any contention by any third party that an employer-employee relationship exists by reason of this Agreement. b. It is further understood and agreed by the parties hereto that Contractor in the performance of its obligations hereunder is subject to the control or direction of City merely as to the result to be accomplished by the services hereunder agreed to be rendered and performed and not as to the means and methods for accomplishing the results. No permitted or required approval by City of Contractor pursuant to this Agreement shall be construed as making the City responsible for the manner in which Contractor performs its services or for any acts, errors or omissions of Contractor, such approvals are intended only to give City the right to satisfy itself with the cost and status of work performed by Contractor. c. If, in the performance of this Agreement, Contractor employs any third persons, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. All 18 terms of employment, including hours, wages, working conditions, discipline, hiring and discharging or any other terms of employment, or requirements of law, shall be determined by Contractor, and City shall have no right or authority over such person or the terms of such employment, except as provided in Sections 6 and 20 of this Agreement. d. It is further understood and agreed that Contractor shall issue W-2 Forms for income and employment tax purposes for all of Contractor's assigned personnel under the terms and conditions of this Agreement. Section 34 CONSTRUCTION AND INTERPRETATION It is agreed and acknowledged by the parties hereto that the provisions of this Agreement have been arrived at through negotiation, and that each of the parties has had a full and fair opportunity to revise the provisions of this Agreement and to have such provisions reviewed by legal counsel. Therefore, the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not apply on construing or interpreting this Agreement. Section 35 WAIVER The waiver at any time by any party of any of its rights with respect to a default or other matter arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. Section 36 SUCCESSORS AND ASSIGNS This Agreement shall bind and inure to the benefits of the respective successors and assigns of the parties. Section 37 TIME Time is of the essence in the performance of each and every term of this Agreement, Section 38 TERM OF AGREEMENT a. The term of the Original Agreement commenced on April 1, 2002. The term of this Agreement shall commence and become effective on January 1, 2009 (the "Commencement Date") and shall terminate on December 31, 2016, the eighth anniversary of the Commencement Date. b. Contractor shall have the option to renew this Agreement once, for an additional seven years by giving the City notice thereof not later than the seventh anniversary of the Commencement Datc. Thereafter, at the City's option, with Contractor's concurrence, this Agreement shall be renewable for successive seven-year increments by giving the Contractor nonce of renewal not later than 18 months' prior to the expiration of the then existing term. c. At the end of the term of this Agreement, if City implements alternative service programs in the Contractor Service Area, Contractor shall have no financial claim against City of any type or 19 amount. Contractor specifically acknowledges and understands in this regard that Contractor shall provide the required services under this Agreement, dowing the term of this Agreement, at the herein agreed compensation, and do so under circumstances where, despite having provided quality service to City, the Agreement may expire as provided above, at which point City would have no remaining financial, legal or other obligation to the Contractor and Contractor would have no expectations of any such further obligation on the part of City. Section 39 NOTICES Notices concerning this Agreement shall be deemed to have been served when deposited in the United States Mail, first class postage prepaid, and addressed as follows: To City: Blair King City of Lodi City Manager 221 West Pine Street Lodi, CA 95240 Section 40 ENTIRE AGREEMENT To Contractor: Central Valley Waste Services PO Box 241001 Lodi, CA 95241-9501 This Agreement constitutes the sole, final, complete, exclusive, integrated expression and statement of the terms and conditions of this Agreement and understanding between City and Contractor concerning the subject matter addressed herein, and supersedes all prior negotiations, representations, or agreements, written or oral, relating to the subject matter of this Agreemeni. This Agreement shall not be considered modified, altered, changed or amended in any respect unless in writing and signed by both parties hereto. This Agreement may be amended from time to time by mutual agreement of City and Contractor; and, with the consent of Contractor, but at the sole, independent election of the Lodi City Council to do so, may be renewed. IN WITNESS WHEREOF, the parties hereto have executed this agreement the day and year fust above written. USA WASTE OF CALIFORNIA, INC., DSA CENTRAL VALLEY WASTE SERVICES CITY OF LODI By: B B Y' Blair King, City Printed name: Alex Oseguera Title: Market Area Vice President Approved as to Form: 20 4th �c2h-wsbaucr, City Attorney ATT T: Aandi a , City Clerk Date: 11 21 EE:xh=ibltA CITY OF LODI MULTI -CART CURBSIDE REFUSE RATES EFFECTIVE APRIL 1, 2008 THROUGH MARCH 31, 2009 6. ADDITIONAL 64 GALLON RECYCLING CARTS Second and Third Recycling Cart Fourth and Each Additional Cart 7. ADDITIONAL 96 GALLON YARD AND GARDEN GAR75 Second and Third Yard and Garden Cart Fourfh and Each Additional Yard and Garden Cart 8. BACK YARD SERVICE' Monthly service charge Qualified Disabled Notes: AAAAApplies to Single Family Dwellings Only k:\wplsolid waste\iodl_rate_Increase_2008 cpL values,xls No Add'I Charge No Add'I Charge $ 11.43 $ 11.83 No Add'I Charge No Add1 Charge $ 11.43 $ 11.83 $ 11.73 $ 12.14 No Add'I Charge No Add'I Charge Current Rate New Rate Per Month Per Month 1. 38 GALLON REFU5E CART 1X Pii WI=i~K $ 21.19 $ 21.94 1 Refuse Cart $ 52.94 $ 54.80 2 Refuse Carts $ 84.71 $ 87.69 3 Refuse Carts $ 116.50 $ 120.60 4 Refuse Carts 2, 64 GALLON REFUSE CART IN PER WEEK $ 31.86 $ 32.99 1 Refuse Cart $ 79.63 $ 82.44 2 Refuse Carts $ 127.40 $ 131.89 3 Refuse Carts 3. 96 GALLOM WASTE CAR 1X PER WEEK $ 69.48 $ 71.93 1 Refuse Cart $ 138.97 $ 143.87 2 Refuse Certs $ 208.46 $ 215.80 3 Refuse Carts 4. DUPLEX AND MULTI -FAMILY, AND MOBILE HOMES Monthly rate is reduced one (1) dollar from above base rates $ (1.00) $ (1.00) 6, LOW VOLUME USER 1X PER EE � One (1) - 20 Gallon Low Volume Refuse Cart $ 14.42 $ 14.92 6. ADDITIONAL 64 GALLON RECYCLING CARTS Second and Third Recycling Cart Fourth and Each Additional Cart 7. ADDITIONAL 96 GALLON YARD AND GARDEN GAR75 Second and Third Yard and Garden Cart Fourfh and Each Additional Yard and Garden Cart 8. BACK YARD SERVICE' Monthly service charge Qualified Disabled Notes: AAAAApplies to Single Family Dwellings Only k:\wplsolid waste\iodl_rate_Increase_2008 cpL values,xls No Add'I Charge No Add'I Charge $ 11.43 $ 11.83 No Add'I Charge No Add1 Charge $ 11.43 $ 11.83 $ 11.73 $ 12.14 No Add'I Charge No Add'I Charge F --- Exhibit B CITY OF LODI CONTAINER RATES EFFECTIVE APRIL 1, 2008 THROUGH MARCH 31, 2009 WEEKLY SERVICE - TWO 2 UBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2XWK 3XWK 4XWK 5 X WK 6 X WK 1 $ WEEKLY S V C . ONE 1 CUBIC YARD CONTAINE $ 1,114.11 $ 1,702.60 $ 2,416.98 2 # OF CONTAINERS 283.68 1XWK $ 1,000.90 2XWK 3XWK $ 4XWK $ SXWK 3 BXWK 1 $ 114.64 $ 213.29 $ 488.72 $ 881.99 $ 1,393.14 $ 2,022.12 2 $ 182.15 $ 332.32 $ 694.60 $ 1,198.34 $ 1,843.49 $ 2,630.04 3 $ 249.64 $ 451.33 $ 900.50 $ 1,514.68 $ 2,293.81 $ 3,237.95 4 $ 317.12 $ 570.34 $ 1,106.3; $ 1,830.98 $ 2,744.14 $ 3,845.90 5 $ 384.64 $ 689.35 $ 1,312.2 $ 2,147.33 $ 3,194.51 $ 4,453.81 6 $ 452.14 $ 808.36 $ 1,518.14 $ 2,463.67 $ 3,644.83 $ 5,061.72 7 $ 519.63 $ 927.40 $ 1,724.05 $ 2,779.99 $ 4,095.18 3 5,669.66 8 $ 587.12 $ 1,046.40 $ 1,929.94 $ 3,096.28 $ 4,545.51 $ 6,277.59 9 $ 654.63 $ 1,165.43 $ 2,135.82 $ 3,412.64 $ 4,995.87 $ 6,885.51 10 $ 722.15 $ 1,284.43 $ 2,341.70 $ 3,728.96 $ 5,446.20 $ 7,493.40 WEEKLY SERVICE - TWO 2 UBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2XWK 3XWK 4XWK 5 X WK 6 X WK 1 $ 167.04 $ 314.85 $ 651.54 $ 1,114.11 $ 1,702.60 $ 2,416.98 2 $ 283.68 $ 529.01 $ 1,000.90 $ 1,623.93 $ 2,397.99 $ 3,323.19 3 $ 400.35 S 743.13 $ 1,350.33 $ 2,133.74 $ 3,093.41 $ 4,229.38 4 $ 516.98 $ 957.30 $ 1,699.69 $ 2,643.54 $ 3,788.84 $ 5,135.59 5 $ 633.66 $ 1.171.38 $ 2,049.07 $ 3,153.36 $ 4,484.24 $ 6,04.1.78 6 $ 750.32 $ 1,385.56 $ 2,398.41 $ 3,663.17 $ 5,179.68 $ 6,947.98 7 $ 867.00 $ 1,599.69 $ 2,747.84 $ 4,172.98 $ 5,875.07 $ 7,854.16 8 $ 983.64 $ 1,813.83 $ 3,097.23 $ 4,682.77 $ 6,570.49 $ 8,760.36 9 $ 1,100.31 $ 2,027.97 $ 3,446.60 $ 5,192.59 $ 7,265.11 $ 9,666.56 10 $ 1,216.96 $ 2,242.09 $ 3,795.99 $ 5,702.38 $ 7,962.50 $ 10,572.75 Comm k:\wplsolld wasleUodl_rale_lneresse 2008 spLvaluss.xls CITY OF LODI CONTAINER RATES EFFECTIVE APRIL 1, 2008 THROUGH MARCH 31, 2009 WEEKLY SERVICE - THREE CUBJIG YABD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 2 3 4 5 6 7 8 9 10 # OF CONTAINERS 1 2 3 4 5 6 7 8 9 10 $ 212.66 $ 402.94 $ 782.05 $ $ 374.96 $ 705.15 $ 1,261.97 $ $ 537.25 $ 1,007.39 $ 1,741.86 $ $ 699.53 $ 1,309.57 $ 2,221.74 $ $ 861.83 $ 1,611.80 $ 2,701.67 $ $ 1,024.15 $ 1,913.98 $ 3,181.56 $ $ 1,186.41 $ 2,215.84 $ 3,661.47 $ $ 1,348.70 $ 2,518.40 $ 4,141.37 $ $ 1,511.00 $ 2,820.64 $ 4,621.30 $ $ 1,673.30 $ 3,122.85 $ 5,101.18 $ 1,287.07 $ 1,917.99 $ 2,674.81 1,969.83 $ 2,828.80 $ 3,838.87 2,652.62 $ 3,739.62 $ 5,002.91 3,335.38 $ 4,650.45 $ 6,166.96 4,018.19 $ 5,561.31 $ 7,331.00 4,700.93 $ 6,472.09 $ 8,495.05 5,383.70 $ 7,382.89 $ 9,659.11 6,066.48 $ 8,293.75 $ 10,823.16 6,749.24 $ 9,204.55 $ 11,987.21 7,432.02 $ 10,115.35 $ 13,151.23 WEEKL'! SERVICE - FOU R (11i CU61C YARD CONTAINER 1XWK 2XWK 3XWK $ 258.31 $ 491.02 $ 912.59 $ $ 466.23 $ 881.31 $ 1,523.01 $ $ 674.17 $ 1,271.64 $ 2,133.45 $ $ 882.10 $ 1,661.94 $ 2,743.89 $ $ 1,090.03 $ 2,052.22 $ 3,354.31 $ $ 1,297.98 $ 2,442.53 $ 3,964.76 $ $ 1,505.94 $ 2,832.86 $ 4,575.21 $ $ 1,713.89 $ 3,223.15 $ 5,185.62 $ $ 1,921.81 $ 3,613.45 $ 5,796.05 $ $ 2,129.77 $ 4,003.75 $ 6,406.47 $ 4XWK 5XWK 6XWK 1,460.07 $ 2,133.42 $ 2,932.68 2,315.78 $ 3,259.65 $ 4,354.59 3,171.56 $ 4,385.88 $ 5,776.51 4,027.31 $ 5,512.14 $ 7,198.36 4,883.04 $ 6,638.39 $ 8,620.32 5,738.79 $ 7,764.59 $ 10,042.21 6,594.54 $ 8,890.62 $ 11,464.12 7,450.26 $ 10,017.07 $ 12,886.03 8,306.03 $ 11,143.32 $ 14,307.94 9,161.75 $ 12,269.55 $ 15,729.85 Comm k:\wp%solid waetellodi ratejncreaee_20o9_cpl ysluee.xls CITY OF LODI CONTAINER RATES EFFECTIVE APRIL 1, 2008 THROUGH MARCH 31, 2009 WEEKLY ERVI E -1 VE 5 CUBIC -YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $ 303.95 $ 579.12 $ 1,043.13 $ 1,633.01 $ 2,348.84 $ 3,190.53 2 $ 557.53 $ 1,057.48 $ 1,784.11 $ $ 2,661.76 3,690.45 $ 3,690.47 $ 5,032.14 $ $ 4,870.28 6,550.09 3 4 $ $ 811.09 1,064.68 $ 1,535.88 $ 2,014.27 $ 2,525.06 $ 3,266.02 $ 4,719.19 $ 6,373.78 $ 8,229.86 5 $ 1,318.30 $ 2,492.68 $ 4,006.96 $ 5,747.91 $ 7,715.43 $ 9,057.11 $ $ 9,909.63 11,589.37 6 $ $ 1,571.84 1,825.47 $ 2,971.05 $ 3,449.43 $ 4,747.95 $ 5,488.91 $ $ 6,776.62 7,805.35 $ 10,398.76 $ 13,269.12 7 8 $ 2,079.03 3 3,927.82 $ 6,229.87 $ 8,834.07 $ 11,740.39 $ 13,082.06 $ $ 14,948.91 16,628.68 9 $ 2,332.63 $ 4,406.23 $ 4,884.62 $ 6,970.82 $ 7,711.79 $ $ 9,862.78 10,891.50 $ 14,423.69 $ 18,308.45 10 $ 2,586.21 $ 16,577.77 $ 20,886.96 10 $ 3,042:56 WEEFtLY 5E VCE - SIX S CUBIC YA 0 CO TAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $ 349.56 $ 667.18 $ 1,173.66 $ 1,805.99 $ 2,564.25 $ 3,448.41 2 $ 648.79 $ 1,233.66 $ 2,045.13 $ $ 3,007.68 4,209.36 $ $ 4,121.31 5,678.34 $ $ 5,386.00 7,323.65 3 4 $ $ 948.01 1,247.24 $ 1,800.10 $ 2,366.58 $ 2,916.63 $ 3,788.07 $ 5,411.03 $ 7,235.43 $ 9,261.24 5 $ 1,546.45 $ 2,933.02 $ 4,659.57 $ $ 6,512.72 7,814.41 $ $ 8,792.47 10,349.53 $ $ 11,198.86 13,136.48 6 $ $ 1,845.65 2,144.88 $ 3,499.53 $ 4,066.00 $ 5,531.07 $ 6,402.53 $ 9,016.08 $ 11,906.60 $ 15,074.10 7 8 $ 2,444.08 $ 4,632.46 $ 7,274.02 $ $ 10,217.76 11,419.45 $ $ 13,463.63 15,020.71 $ $ 17,011.70 18,949.32 9 $ 2,743.31 $ 5,198.90 5,765.37 $ 8,145.52 $ 9,016.99 $ 12,621.12 $ 16,577.77 $ 20,886.96 10 $ 3,042:56 $ Comm k:W%solld waalellodl_rale_Increase 20DB_epi values.xls CITY OF LODI 10 TO 50 CUBIC YARD CONTAINERS RATE STRUCTURE EFFECTIVE APRIL 1, 2008 THROUGH MARCH 31, 2009 PERMANENT HIGH FREQUENCY ROLL -OFF RATES 1. Drop-off and Pick-up Charge Per Box 2. Weighed Tons DIsposed/Box X Processing Charge 3. Franchise Fee (4.8% of 1+2) TOTAL BILL (1+2+3) ONE-TIME TEMPORARY USER RCLL-OFF RATES 1. Drop/off/Pick-up Charge Per Box 2. Tons Disposed/Box X Processing Charge (Average of five (5) tons charged per Box) 3. Franchise Fee (4.8% of 1+2) TOTAL BILL (1+2+3) CURRENT NEW RATES RATES $ 146.91 $ 152.09 $ 33.08 $ 34.25 $ 186.44 $ 193.01 $ 33.08 $ 34.25 =Exh=lbitC k:lwplsolld wasteVodl rete increase 2008_cpi values,xls Rolloff EXHIBIT "D" CITY OF LODI 10 TO 50 CUBIC YARD ROLL OFF* CONTAINERS COMPACTOR RATE STRUCTURE EFFECTIVE APRIL 1, 2008 THROUGH MARCH 31, 2009 TEMPORARY OR PERMANENT COMMERCIAL COMPACTOR RATES NEW RATES 1. Drop-off and Plck-up Charge Per Box $ 258.63 2. Weighed ions Disposed/Box X Processing Charge $ 34.25 3. Franchise Fee (4.8% of 1+2) $ - TOTAL BILL (1+2+3) This charge will be applied to loads that are serviced by "Roll Off' vehicles. * This charge will be applied per load to self contained compaction containers or containers that attach to a charging unit for the purpose of compaction In sizes on or about 10 to 50 cubic yards. EXHIBIT E CITY SERVICES SERVICE LOCATIONS April 18, 2008 LO ON UNIT CAPACITY PICK--UI8 PE W K CITY BALL 221 W Pine Street 1 5 YD 1 4 64 GAL Recycle 1 300 W Pine Street 1 1 4 YD Recycle 96 GAL 1 1 1 2 YD Recycle 1 FIRE DEPARTMENT 25 E Pine Street 1 64 GAL 1 210 W Elm Street - ST#1 2 64 GAL Recycle 1 705 E Lodi Ave - St#2 1 1 YD 1 1 64 GAL Recycle 1 2141 S Ham Lane - ST#3 1 1 YD 1 1 64 GAL Recycle 1 180 N Lower Sacramento RD - SW 1 96 GAL 1 1 64 GAL Recycle 1 1 96 GAL Green Waste 1 LODI LIBRARY 201 W Locust Street 1 2 YD 1 1 2 YD Recycle 1 POLICE FACILITY 215 W Elm Street 1 4 YD 2 1 4 YD Recycle 1 PARKS AND RECREATION 2001 S'Stockton Street- Sales Park 1 6 YD 1 125 N Stockton Street - Office 2 3 YD 1 1301 W Turner Road - Lodi Lake 1 8 64 GAL Recycle 3 YD 1 2 MUNICIPAL COURT 315 W Elm Street 1 3 YD 2 3 64 GAL Recycle 1 ANIMAL SHELTER 1345 W Kettleman Lane 2 64 GAL 1 2 L 96 GAL 1 1 64 GAL Recycle 1 EXHIBIT E City Services (Continue) TRAIN STATION 24 S Sacramento Street 1 2 YD 1 UTILITY YARD 1331 S Ham Lane 2 4 YD Recycle 1 5 64 GAL Recycle 1 HUTCHINS STREET SQUARE 125 S Hutchins Street 2 6 YD 1 1 4 YD 1 3 64 GAL Recycle 1 WHITE SLOUGH 1 20 YD RD As Requested. Total 8 Loads Per Year ARMORY 333 N Washington Street 2 20 YD RD As Requested. Total 12 Loads Per Year EXHIBIT B ADDENDUM TO SOLID WASTE FRANCHISE DATED APRIL 7, 2010 EXHIBIT "B" Addendum to Solid Waste Franchise This Agreement is made and entered into as of April 7, 2010, by and between the City of Lodi, a municipal corporation, hereinafter called "City," and USA WASTE OF CALIFORNIA, INC., dba CENTRAL VALLEY WASTE SERVICES, hereinafter called "Contractor," both of whom agree as follows: RECITALS: The parties entered an Amended and Restated Agreement for Solid Waste Collection, Recycling and Green Waste Collection and Processing Services in the City of Lodi dated July 7, 2008, as amended (the "Contract"), The parties desire to amend the contract to provide Contractor with one additional option to extend the Contract on the terms provided herein NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows: 1. Grape Bowl Payment: Contractor will pay the City $1,000,000 in payments to be used by the City for Grape Bowl renovations. Contractor will make its initial payment to City on or before July 1, 2010 and Contractor will pay the remaining $900,000 in 84 equal monthly installments of $10,714.29 with the first monthly payment due January 15, 2011 and subsequent monthly payments due on the same day in the following 83 months. If the scheduled due date for the monthly payment is not a business day, then the due date will be delayed until the next business day. The City will bill Contractor for the initial and monthly payments, and the City will deposit the payments in its Grape Bowl Renovation Fund Account. Contractor's payment obligations will cease if the Contract is terminated. 2. Renewal Option: The Parties hereby amend Section 38(b) (Term of Agreement) of the contract to insert the following sentence in between the first and second sentences: "Contractor shall have the unilateral option to renew this Agreement one additional time after exercising the first option set forth above. Contractor's second unilateral extension option will be for an additional term of seven years commencing January 1, 2024 and ending December 31, 2030, which Contractor may exercise by giving the City notice thereof not later than December 31, 2022." 3. Industrial Waste Haulers Permit: The parties agree to add the following new term to the contract: "Subsequent to January 1, 2018, the Contractor will provide reasonable support to the City in its effort to implement an Industrial Waste Haulers Permit Fee structure with a fee of up to $100,000.00 for a permit term of five years. The permit fee would be non-refundable and non -transferable. The permit to haul Industrial Waste would be valid within the incorporated city limits of Lodi. Industrial Waste Hauler permittees would obtain, at their own expense, all permits and licenses required by Federal, State, and local laws and ordinances and maintain same in full force throughout the term of the permit. This paragraph establishes Contractor's agreement to cooperate in the establishment of such a permit and does not obligate the City to establish a permit on these or any other terms. 4. Customer Satisfaction Condition: The parties agree to add the following new term to the contract: "As required by Section 5. q. of the Contract, Contractor shall maintain quality of service throughout the term of the agreement. When the Contractor exercises a renewal option under Section 38(b) (as amended above), Contractor shall submit a report to the City that will include quantitative measurements (for example, based on surveys, third -party studies or internal quality control programs) of the quality of Contractor's performance for significant customer service metrics and other contractual obligations. The City and Contractor shall address and resolve any performance deficiencies that may be identified in the report in the manner described in Section 5.q." 5. Other Terms Unchanged: Except as described above, the other terms and conditions of the Contract shall remain in full force and effect and be binding on the parties. IN WITNESS WHEREOF, the City Manager and Contractor have signed this Agreement as of the day and year first above written. CITY OF LODI, a municipal corporation Blair King City Manager Attest: Randi Johl " City Clerk Approved as to Form: 2 USA WASTE OF CALIFORNIA, DBA CENTRAL VALLEY WASTE SERVICES 4" (1.' , Alex seguera Area vice President EXHIBIT C EXTENSION DATED FEBRUARY 26, 2015 December 22, 2014 Mr. Steve Schwabauer City Manager City of Lodi 221 W. Pine Street Lodi, CA 95240 EXHIBIT "C" RECEIVED DEC 2 3 20% CITY CLERK Central Valley waste Services, Inc. A WASTE MANAGEMENT COMPANY 1333 E. 7Lmer Road P.O. Box 241001 Lodi, California 95241-9501 (209) 369-8274 (209) 369-6894 Fax SUBJECT: RENEWAL OF AGREEMENT BETWEEN THE CITY OF LODI AND USA WASTE OF CALIFORNIA, INC., dba CENTRAL VALLEY WASTE SERVICES Dear Mr. Schwabauer, Pursuant to the existing agreement between the City of Lodi and Central Valley Waste Services (CVWS), Section 38 Term of Agreement, paragraph b. CVWS is exercising Its option to renew this Agreement for an additional seven (7) years. The term of renewal shall commence and become effective on January 1, 2017 and shall terminate on December 31, 2023. Please acknowledge receipt of the exercise of the option to renew by signing and returning a copy of this correspondence for our records. If there are any questions, please do not hesitate to contact meat (209033-5613 or (209)-327-5017. Sincerely, ��" a"r- Alex Oseguera General Manager and Vice President Waste Management, Northern California/ Nevada The undersigned hereby acknowledges receipt of the above letter and understands same to state that the term of the above referenced Agreement Is being extended. Date: ELL a3 Jols Signature: Name: c. Title: CC: Wally Sandlin, Public Works Director Thom Sanchez, Director of Business Development/WM Todd Nienhouse, District Manager/WM rr� Attachment Approved as Kolform ATTEST: Cl;Altorney I&NIFERWr-ERRAIOLO City Clerk Attachment Internal Performance Review 2014 Waste Management Central Valley waste Sorvices, Inc. A WASTE MANAOEMENT COMPANY 1333 E. Turner Road P.O. Box 241001 Lodi, California 95241-9501 (209) 369-8274 (209) 369-6894 Fax Waste Management has conducted an internal review to measure the quality of performance for customer service metrics and other contractual obligations. Waste Management's internal review reflects satisfaction of the terms of this agreement as follows: Compliance Item Performance Survey Sponsorship of City -Wide Garage Sale Free HHW, Electronic and Universal Waste Drop Off Dollar Dump Day Free residential curbslde clean-up Illegal Dumping provided free to City of Lodi Collection Fleet Debris and fall leaf disposal provided free to City of Lodi Recycling Education Awareness Program Description Meets Goal Complaint to service ratio < 1% ✓ Annually ✓ 4 Annually ✓ Annually Annually 35 free pick-ups per year Compressed Natural Gas and age of fleet in accordance to contract Up to 1200 tons per year $31K contributed to local schools, civic and non-profit programs Transfer Station Vouchers One (1) voucher sent to each Lodi resident annually Provide reports to City as City's Diversion requested. Programs to meet diversion levels are Implemented and ongoing *Support information available upon request by the City of Lodi I EXHIBIT D CART RATES EXHIBIT "D" WWM. CITY OF LODI MULTI-CART CURBSIDE REFUSE RATES EFFECTIVE SEPTEMBER 1, 2023 THROUGH MARCH 31, 2024 current New Services Offered Monthly Monthly Rate Rate 1. 35 GALLON REFUSE CART 1X PER WEEK 1 Refuse Cart $32.11 $37.11 2 Refuse Carts $80.27 $90.27 3 Refuse Carts $128.42 $143.42 4 Refuse Carts $176.64 $196.64 2. 64 GALLON REFUSE CART 1X PER WEEK -$1.00 -$1.00 1 Refuse Cart $48.34 $53.34 2 Refuse Carts $120.73 $130.73 3 Refuse Carts $193.11 $208.11 3. 96 GALLON WASTE CART 1X PER WEEK 1 Refuse Cart $105.34 $59.34 2 Refuse Carts $210.69 $118.68 3 Refuse Carts $316.04 $178.02 4. DUPLEX AND MULTI -FAMILY, AND MOBILE HOMES Monthly rate is reduced one (1) dollar from above base rates -$1.00 -$1.00 S. 35 GAL LOW VOLUME RATE" One (1) - 35 Gallon Low Volume Refuse Cart $21.85 $26.85 7. ADDITIONAL 64 GALLON RECYCLING CARTS Second and Third Recycling Cart $0.00 $0.00 Fourth and Each Additional Cart $17.36 $17.36 8. ADDITIONAL 96 GALLON YARD AND GARDEN CARTS Second and Third Yard and Garden Cart $0.00 $0.00 Fourth and Each Additional Yard and Garden Cart $17.36 $17.36 9. BACK YARD SERVICE"*"* Monthly service charge $17.79 $17.79 Qualified Disabled $0.00 $0.00 Notes: "Applies to Single Family Dwellings Only EXHIBIT E BIN RATES EXHIBIT "E" WCITY OF LODI v CONTAINER RATES EFFECTIVE SEPTEMBER 1, 2023 THROUGH MARCH 31, 2024 Cpl 0.000% 1 DISPOSAL 0.000% New Monthly Rates WEEKLY SERVICE - ONE (11 CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $167.90 $312.34 $715.68 $1,291.63 $2,040.16 $2,961.24 2 $266.77 $486.68 $1,017.22 $1,754.90 $2,699.68 $3,851.54 3 $365.58 $660.93 $1,318.69 $2,218.11 $3,359.14 $4,741.79 4 $464.40 $835.21 $1,620.23 $2,681.35 $4,018.65 $5,632.11 5 $563.28 $1,009.49 $1,921.74 $3,144.64 $4,678.21 $6,522.31 6 $662.13 $1,183.79 $2,223.21 $3,607.90 $5,337.62 $7,412.60 7 $760.98 $1,358.14 $2,524.73 $4,071.13 $5,997.11 $8,302.86 8 $859.82 $1,532.36 $2,826.29 $4,534.31 $6,656.61 $9,193.15 9 $958.63 $1,706.73 $3,127.79 $4,997.60 $7,316.14 $10,083.41 10 $1,057.53 $1,881.00 $3,429.25 $5,460.84 $7,975.61 $10,973.61 WEEKLY SERVICE - TWO (2) CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $244.66 $461.09 $954.12 $1,631.54 $2,493.36 $3,539.52 2 $415.43 $774.72 $1,465.74 $2,378.11 $3,511.68 $4,866.60 3 $586.28 $1,088.28 $1,977.46 $3,124.72 $4,530.08 $6,193.65 4 $757.12 $1,401.94 $2,489.10 $3,871.30 $5,548.56 $7,520.73 5 $927.95 $1,715.40 $3,000.73 $4,617.88 $6,566.89 $8,847.78 6 $1,098.82 $2,029.05 $3,512.30 $5,364.51 $7,585.31 $10,174.90 7 $1,269.67 $2,342.65 $4,024.05 $6,111.05 $8,603.66 $11,501.88 8 $1,440.46 $2,656.25 $4,535.69 $6,857.65 $9,622.06 $12,829.03 9 $1,611.34 $2,969.84 $5,047.33 $7,604.23 $10,639.31 $14,156.06 10 $1,782.16 $3,283.37 $5,558.99 $6,350.80 $11,660.60 $15,483.14 WEEKLY SERVICE - THREE (31 CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $311.43 $590.13 $1,145.30 $1,884.80 $2,808.76 $3,917.11 2 $549.09 $1,032.63 $1,848.05 $2,884.67 $4,142.60 $5,621.78 3 $786.78 $1,475.25 $2,550.86 $3,884.58 $5,476.45 $7,326.43 4 $1,024.41 $1,917.81 $3,253.65 $4,884.44 $6,810.28 $9,031.12 5 $1,262.09 $2,360.40 $3,956.42 $5,884.41 $8,144.19 $10,735.81 6 $1,499.78 $2,802.91 $4,659.20 $6,884.25 $9,477.96 $12,440.47 7 $1,737.42 $3,244.96 $5,361.97 $7,884.09 $10,811.79 $14,145.16 8 $1,975.10 $3,688.05 $6,064.80 $8,883.96 $12,145.67 $15,849.82 9 $2,212.76 $4,130.67 $6,767.61 $9,883.87 $13,479.50 $17,554.51 10 $2,450.43 $4,573.21 $7,470.35 $10,883.74 $14,813.31 $19,259.13 EXHIBIT "E" CITY OF LODI CONTAINER RATES EFFECTIVE SEPTEMBER 1, 2023 THROUGH MARCH 31, 2024 WEEKLY SERVICE - FOUR L41 CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $378.30 $719.07 $1,336.45 $2,138.17 $3,124.26 $4,294.72 2 $682.77 $1,290.63 $2,230.34 $3,391.30 $4,773.54 $6,377.05 3 $987.26 $1,862.23 $3,124.29 $4,644.55 $6,422.84 $8,459.31 4 $1,291.80 $2,433.81 $4,018.26 $5,897.74 $8,072.20 $10,541.57 5 $1,596.27 $3,005.34 $4,912.14 $7,150.89 $9,721.51 $12,623.91 6 $1,900.80 $3,576.94 $5,806.14 $8,404.06 $11,370.75 $14,706.20 7 $2,205.34 $4,148.53 $6,700.11 $9,657.29 $13,020.02 $16,788.48 8 $2,509.89 $4,720.10 $7,594.03 $10,910.43 $14,669.34 $18,870.80 9 $2,814.36 $5,291.66 $8,487.94 $12,163.64 $16,318.70 $20,953.08 10 $3,118.93 $5,863.23 $9,381.87 $13,416.79 $17,967.97 $23,035.34 WEEKLY SERVICE - FIVE (5) CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $445.10 $848.06 $1,527.59 $2,391.41 $3,439.74 $4,672.33 2 $816.47 $1,548.59 $2,612.73 $3,897.99 $5,404.48 $7,132.21 3 $1,187.79 $2,249.20 $3,697.77 $5,404.46 $7,369.27 $9,592.20 4 $1,559.15 $2,949.77 $4,782.90 $6,910.95 $9,333.99 $12,052.11 5 $1,930.57 $3,650.37 $5,867.91 $8,417.45 $11,298.77 $14,512.01 6 $2,301.86 $4,350.90 $6,953.09 $9,923.94 $13,263.57 $16,971.91 7 $2,673.28 $5,051.46 $8,038.14 $11,430.47 $15,228.31 $19,431.81 8 $3,044.61 $5,752.03 $9,123.25 $12,936.93 $17,193.05 $21,891.74 9 $3,416.02 $6,452.64 $10,208.32 $14,443.45 $19,157.86 $24,351.66 10 $3,787.35 $7,153.23 $11,293.44 $15,949.90 $21,122.58 $26,811.55 WEEKLY SERVICE - SIX 6 CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $511.91 $977.07 $1,718.76 $2,644.75 $3,755.18 $5,050.01 2 $950.11 $1,806.60 $2,994.94 $4,404.52 $6,035.41 $7,887.49 3 $1,388.31 $2,636.15 $4,271.21 $6,164.36 $8,315.58 $10,725.00 4 $1,826.48 $3,465.69 $5,547.41 $7,924.11 $10,595.84 $13,562.51 5 $2,264.67 $4,295.22 $6,823.64 $9,683.90 $12,876.02 $16,400.04 6 $2,702.85 $5,124.87 $8,099.89 $11,443.71 $15,156.24 $19,237.52 7 $3,141.03 $5,954.39 $9,376.09 $13,203.48 $17,436.49 $22,075.06 8 $3,579.17 $6,783.95 $10,652.34 $14,963.28 $19,716.64 $24,912.56 9 $4,017.39 $7,613.45 $11,928.62 $16,723.07 $21,996.89 $27,750.11 10 $4,455.64 $8,443.01 $13,204.82 $18,482.84 $24,277.06 $30,587.64 r EXHIBIT "E" CITY OF LODI CONTAINER RATES EFFECTIVE SEPTEMBER 1, 2023 THROUGH MARCH 31, 2024 WEEKLY SERVICE - 35 GALLON ORGANICS CONTAINER # OF CONTAINERS 1 X WK 2 X WK" 1 $50.59 $101.15 2 $101.16 $202.29 3 $151.74 $303.45 4 $202.31 $404.60 5 $252.90 $505.74 WEEKLY SERVICE - 64 GALLON ORGANICS CONTAINER # OF CONTAINERS 1 X WK 2 X WK" 1 $76.10 $152.20 2 $152.20 $304.38 3 $228.29 $456.59 4 $304.38 $608.78 5 $380.49 $760.98 ANCILLARY SERVICES Contamination $107.16 " Avallable for customers with 4+ carts 56 EXHIBIT F ROLL OFF RATES WSW EXHIBIT "F" CITY OF LODI 10 TO 50 CUBIC YARD CONTAINERS RATE STRUCTURE EFFECTIVE SEPTEMBER 1, 2023 THROUGH MARCH 31, 2024 PERMANENT HIGH FREQUENCY ROLL -OFF RATES 1. Drop-off and Pick-up Charge Per Box 2. Tons Disposed/Box X Processing Charge ONE-TIME TEMPORARY USER ROLL -OFF RATES 1. Drop/off/Pick-up Charge Per Box 2. Tons Disposed/Box X Processing Charge Current Rates New Monthly Rate $223.39 $223.39 $50.31 $50.31 $283.67 $283.67 $50.32 $50.32 EXHIBIT G COMPACTOR RATES SPIN EXHIBIT "G" CITY OF LODI COMMERCIAL COMPACTOR RATES EFFECTIVE SEPTEMBER 1, 2023 THROUGH MARCH 31, 2024 Current Services Offered Monthly New Monthly Rate Rate 1. 2 CUBIC YARD COMPACTOR 1X Week $377.01 $377,01 2X Week $754.06 $754.06 3X Week $1,131.07 $1,131.07 4X Week $1,508.13 $1,508.13 5X Week $1,885.13 $1,885.13 2. 3 CUBIC YARD COMPACTOR 1X Week $465.87 $465.87 2X Week $931.71 $931.71 3X Week $1,397.58 $1,397.58 4X Week $1,863.47 $1,863.47 5X Week $2,329.33 $2,329.33 3. 4 CUBIC YARD COMPACTOR 1X Week $555.40 $555.40 2X Week $1,110.81 $1,110.81 3X Week $1,666.24 $1,666.24 4X Week $2,221.66 $2,221.66 5X Week $2,777.07 $2,777.07 VWVL EXHIBIT "G" CITY OF LODI 10 TO 50 CUBIC YARD ROLL OFF* CONTAINERS COMPACTOR RATE STRUCTURE EFFECTIVE SEPTEMBER 1, 2023 THROUGH MARCH 31, 2024 Current Rates New Rates TEMPORARY OR PERMANENT COMMERCIAL COMPACTOR RATES 1. Drop/off/Pick-up Charge Per Box 2. Tons Disposed/Box X Processing Charge $387.78 $387.78 $50.13 $50.13 This charge will be applied to loads that are serviced by "Roll Off' vehicles. that attach to a charging unit for the purpose of compaction in sizes on or about 10 to 50 cubic yards. EXHIBIT H CITY LOCATIONS EXHIBIT "H" Location Unit Capacity Pick -Up per Week City Hall 221 W Pine St 1 5 Yd 2 1 4 Yd 2 1 64 Gal E/O 1 64 Gal E/O Fire Deparment Flre Station #1 210 W Elm St 2 64 Gal E/O Fire Station #2 2 S CherokeeLn 1 96 Gal 1 1 1 Yd 1 2 64 Gal E/O Fire Station #3 2141SHam Ln 1 1 Y 1 1 64 Gal E/O Fire Station #4 180 N Lower Sacramento Rd 1 96 Gal 1 3 64 Gal E/O Library 201 W Locust St 1 2 Yd 1 1 2 Yd 2 Police Department Pollce 215 W Elm St 1 4 Yd 2 1 4 Yd 1 Animal Services 1345 W Kettleman Ln 1 4 Y 1 1 4 Yd 1 Court 315 W Elm 1 1 Yd 1 3 64 Gal E/O PRCS Parks Yard 125 N Stockton St 2 3 Yd 1 1 4 Yd 1 Hutchins Street Square 125 S Hutchins St 1 64 Gal E/O Salas Park 2001 S Stockton St 1 6 Yd 1 Lodi Lake Park 1101 W Turner Rd 8 6 Yd 2 Public Works Transit Station 24 S Sacramento St 1 3 Yd 1 - MSC 1331 S Ham Ln 2 4 Yd 1 1 4 Yd 2 2 6 Yd 1 1 2 Yd 1 2 4 Yd 1 5 64 Gal E/O SWTF 2001 W Turner Rd 1 2 Yd 1 1 4 Yd 1 H-1 CITY OF LODI PUBLIC WORKS DEPARTMENT AMENDED AND RESTATED AGREEMENT FOR SOLID WASTE COLLECTION, RECYCLING AND ORGANIC WASTE COLLECTION AND PROCESSING SERVICES IN TEE CITY OF LODI BY AND BETWEEN THE CITY OF LODI AND USA WASTE OF CALIFORNIA, INC., dba CENTRAL VALLEY WASTE SERVICES, A WASTE MANAGEMENT COMPANY. THIS AMENDED AND RESTATED AGREEMENT (this "Agreement") is made and entered into this _ cay of 2023, by and between the CITY OF LODI, a California municipal corporation hereinafter referred to as "CITY" and USA WASTE OF CALIFORNIA, INC., a Delaware Corporation authorized to do business in California and DBA CENTRAL VALLEY WASTE SERVICES, hereinafter referred to as "WM." WITNESSETH WHEREAS, WM and the City are parties to the Agreement for Solid Waste Collection, Recycling and Green Waste Collection and Processing Services in the City of Lodi dated July 7, 2008 (attached as Exhibit "A" hereto), as subsequently modified by the Addendum to Solid Waste Francaise dated April 7, 2010 (attached as Exhibit "B" hereto), and Extension dated February 26, 2015 (attached as Exhibit "C" hereto), which are collectively referred to herein as the "Original Agrec=trent"; and WHEREAS, the City and WM now wish to amend and restate the terms of the Original Agreement to account for expanded services required for organic waste collection services under Senate Bill 1383 (`5B 1383" as defined below); and WHEREAS, WM currently provides solid waste management services to City and WM has represcuted and warranted to City that it has the experience, responsibility, and qualifications to provide current services and organic waste collection services to the residents and businesses in the franchise area. Therefore, City finds and determines that the public interest, health, safety and well -be ng would be best served if WM were to continue to provide such services and the new organic waste collection services to residents and businesses; and WHER3AS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 "("AB 939"), has declared that it is within the public interest to autho-ize local agencies to adequately provide for solid waste handling within their jurisdictions, and has established a solid waste management process to implement plans for source reduction, reuse and recycling as part of their integrated waste management practices; and WHEREAS, City and WM are mindful of the provisions of the laws governing the safe collection, transpo-t, recycling and disposal of solid and organic waste, including AB 939, SB 1383, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation and Liability Act; and Page 1 of 35 WHEREAS, City and WM desire to enter into a new agreement to provide for specified solid waste c3llection, curbside recyclable collection and processing, neighborhood cleanup collection, organic waste collection and processing, and illegal dumping remediation services. AGREEMENT NOVO, THEREFORE, in consideration of the mutual promises herein, the parties hereto agree that the 0-iginal Agreement is hereby amended and restated in its entirety as follows: Section 1 INCORPORATION OF ABOVE RECITALS The for -,going recitals are hereby incorporated into this Agreement by this reference. Section 2 DEFINITIONS For purposes of this Agreement, the following definitions apply in addition to those defined in the Lodi =Mlanicipal Code: a. `Applicable Law" means all Federal, State, County, and local laws, regulations, rules, )rders, judgments, decrees, permits, approvals, or other requirement of any governmental agency having jurisdiction over the Collection, Transportation, Processing, and Disposal -)fDiscardedMaterials that are in force on the Effective Date and as may be enacted, issued, :)r amended during the Term of this Agreement. Applicable Law includes, but is in no way imited to, AB 939, AB 341, AB 1826, and SB 1383 and its corresponding regulations. b. 'Approved Dispgsal Facility" means the North County Landfill, which is owned and operated by San Joaquin County. c. "Approved Facilities" means any one of or any combination of the following: Approved Disposal Facility, Approved Organic Waste Processing Facility, Approved Source Separated Recyclable Materials Processing Facility, and an Approved Transfer Facility, each of which are defined in this Article. d. "Approved Organic Waste Processing Vacility" means all of the following locations: the :�entral Valley Compost, located at 916 Frewert Road, Lathrop, CA 95330, Davis Street 3esource Recovery Complex, located at 2615 Davis Street, San Leandro, CA 94577, and Altamont Landfill CASP, located at 10840 Altamont Pass Rd., Livermore, CA 94550. e. "A rovSource Sr crated Recyclable Materials P ocessiii Facilil means the Lodi Material Recovery and Transfer Station, located at 1333 E. Turner Road, Lodi, CA 95240. f. "Approved `transfer Facility" means the Lodi Material Recovery and Transfer Station, ocated at 1333 E. Turner Road, Lodi, CA 95240. g. 'Bin" means a watertight metal or heavy plastic receptacle with a hinged plastic lid and a Page 2 of 35 zapacity of between one (1) and eight (8) cubic yards, designed or intended to be mechanically dumped into a packer type truck. Bins may also include compactors that are awned or leased by a Customer, if WM confirms they are compatible. h. `Blue Container" has the same meaning as in 14 CCR Section 18982.2(a)(5), as may be amended from time to time, and shall be used for the purpose of storage and Collection of Source Separated Recyclable Materials. i, `Cart" means an industry standard receptacle for placement of Discarded Materials for Collection, in a range of sizes including approximately 20, 35, 64, or 96 gallons. A Cart will have wheels, a handle for ease of movement, a fitted, attached lid, and it is designed =o be dumped mechanically into a Solid Waste, Organic Waste or Recyclable Materials -ollection vehicle. j. `Collect/Collection" means the act of taking physical possession of Discarded Materials at Single -Family or Commercial Businesses within the City, and from City facilities, and -ransporting the Discarded Materials to an Approved Facility for Processing, Transfer, or Disposal. k. `Commercial Customers", "Commercial business" or "Commercial" means all ,ommercial (non -manufacturing) enterprises within the city limits except Industrial Zustomers, or a Multi -Family Residential Dwelling, or as otherwise defined in 14 CCR Section 18982(a)(6), as may be amended from time to time. However, a Multi -Family Residential Dwelling that consists of fewer than five units is not a Commercial business -or purposes of implementing this ordinance. 1. `Compost" means the product resulting from the controlled biological decomposition of _)rganic Solid Wastes that are Source Separated from the municipal Solid Waste stream, or which are separated at a centralized facility, as defined in 14 CCR Section 17896.2(a)(4), .vhich may be amended from time to time. m_ "Construction and Demolition Debris (C&Dl" means the nonhazardous waste building material, inerts, soil, packaging, yard trimmings, rubble, and other used or Discarded Materials resulting from construction or demolition. n. "Container" means a Bin or Cart. o. "Customer" means an individual or entity that receives WM's Blue Container, Gray Container, and Green Container for Collection services. The Customer may be either the occupant, owner, or property manager of the Premises. All Premises (e.g., Commercial 3usinesses and Single -Family) in the City that generate Solid Waste shall be required by -he City to be a Customer of WM, unless an exception in Section 3 applies. p. "D1scurdud Materials" are a form of Solid Waste, and shall be regulated as such. For purposes of this Agreement, material is deemed to have been discarded, without regard to whether it is destined for Recycling or Disposal, and whether or not is has been separated -rom other Solid Wastes, in all cases where a fee or other compensation, in any form or Page 3 of 35 amount, is directly or indirectly solicited from, or, levied, charged, or otherwise imposed on, or paid by, the generator or Customer in exchange for handling services. As used herein, handling services include, without limitation, the Collection, removal, transportation, delivery, and Processing and/or Disposal of the material. Handling services specifically exclude the generator's use of a third party to assist the generator with on-site separation of materials into and among WM-provided Containers to facilitate recovery and minimize Contamination. Discarded Materials do not include Edible Food that is recovered for buman consumption and is not discarded. For the purposes of this Agreement, Discarded Materials include Source Separated Recyclable Materials, Source Separated Organic Waste, Gray Container Waste, and C&D once the materials have been placed in Containers for Collection. q. `Disposal[Dispos I means the final disposition of any Discarded Materials Collected by WM or residue from WM's Processing activities at a permitted landfill or other permitted Solid Waste facility. r. 'Diversion (Divert)" means activities which reduce or eliminate Discarded Materials from Disposal, including, but not limited to, source reduction, reuse, salvage, Recycling, and composting. s. `Edible Food" in regards to "Edible Food Recovery" means food intended for human consumption. t. `Electronic Waste" means discarded electronics equipment such as cell phones, computers, monitors, televisions, and other items containing cathode ray tubes (CRT's). u. `Excluded Waste" means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated Waste, volatile, corrosive, Medical Waste, infectious, regulated radioactive waste, and toxic substances or material that an Approved Facility operator(s) reasonably believe(s) would, as a result of or upon acceptance, Transfer, Processing, or Disposal, be a -iolation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be Disposed of in Class III Landfills or accepted at an Approved Facility by permit conditions, waste that in WM's reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose WM or the City to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in residential municipal Solid Waste after implementation of programs for the safe collection, Processing, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. v. `Food Scraps" means all nonedible food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps. w. `Gra_y Comaincr" has the same meaning as in 14 CCR Section 18982(a)(28) and shall be Page 4 of 35 used for the purpose of storage and Collection of Gray Container Waste. x "Gray Container Waste" means Solid Waste such as trash and other non -Recyclable Material that is collected in a Gray Container that is part of the City's three -Container Organic Waste Collection service that prohibits the placement of Organic Waste in the Gray Container as specified in 14 CCR Sections 18984.1(a) and (b) or as otherwise defined in 14 CCR Section 17402(a)(6.5), as each may be amended from time to time. For the purposes of this Agreement, Gray Container Waste includes carpet and textiles. y "Green Container" has the same meaning as in 14 CCR Section 18982(a)(29), as may be amended from time to time, and shall be used for the purpose of storage and Collection of Source Separated Organic Waste. z. "Green Waste" means all tree and plant trimmings, grass cuttings, dead plants, weeds, leaves, branches, and similar materials that fit into an Organic Waste Cart, but not including Excluded Waste or items with a diameter greater than 10 inches. aa. "Household Hazardous Waste" means any Hazardous Waste generated incidental to owning or maintaining a place of residence, but does not include any waste generated in the course of operating a business concern at a residence. (California Health and Safety Code Division 20, Chapter 6.5, §25218(1)(e)). bb. "Hazardous Substance" means any of the following: (a) any substance defined, regulated or listed (directly or by reference) as "hazardous substances", "hazardous materials", "hazardous wastes", "toxic waste", "pollutant" or "toxic substances" or similarly identified as hazardous to human health or the environment, in or pursuant to (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC Section 9601, t seq.; (ii) the Hazardous Materials Transportation Act, 49 USC Section 5 10 1, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC Section 6901, et seq.; (iv) the Clean Water Act, 33 USC Section 1251, et seq.; (v) California Health and Safety Code Sections 25115-25117, 25249.8, 25281, and 25316; (vi) the Clean Air Act, 42 USC Section 7401, -t seq.; and (vii) California Water Code Section 13050; (b) any amendments, rules, or regulations promulgated thereunder to such enumerated statutes or acts currently existing :)r hereinafter enacted; and (c) any other hazardous or toxic substance, material, chemical, waste, or pollutant identified as hazardous or toxic or regulated under any other applicable federal, State, and local environmental laws currently existing or hereinafter enacted, including without limitation, friable asbestos, polychlorinated biphenyl ("PCBs"), oetroleum, natural gas and synthetic fuel products, and by-products. cc. `.Hazardous Waste" means any waste which meets the definitions set forth in 22 CCR Section 66261.3, et seq. and is required to be managed; or as otherwise defined in 14 CCR Section 17402(a)(7). Hazardous Waste includes hazardous wood waste, which means mood that falls within the definition of"treated wood" or "treated wood waste" in 22 CCR Section 67386.4, or as otherwise defined in 14 CCR Section 18982(a)(30.5). dd. `Industrial Customer" means all manufacturing enterprises who generate Industrial waste Page 5 of 35 within the city limits except Commercial Customers. The city manager or other designee shall determine whether a Customer is "Industrial" or "Commercial." ee. `Industrial Waste" means Solid Waste originating from manufacturing facilities and factories within the city limits including construction and demolition projects. Industrial waste also means Solid Waste produced by any person, firm, or corporation primarily :ngaged in the business of Processing and manufacturing for the purpose of wholesale. ff `Muhi-Family or Multi -Family Dwelling Unit" means residential Premises with five (5) :)r more dwelling units. However, Multi -Family Premises do not include hotels, motels, or ether transient occupancy facilities, which are considered Commercial Businesses. References to "Multi -Family Dwelling Unit" refer to an individual residential unit of the Multi -Family Premises. gg. `Organic Waste' means Food Scraps and Green Waste. Unless otherwise agreed in writing 7)y WM and the City, Organic Waste does not include Edible Food or Compostable Plastics, as that term is described in 14 CCR Section 18984.1(a)(1)(A) or 18984.2(a)(1)(C), as may 7)e amended from time to time. hh. "Overage." means materials exceeding its Container's intended capacity such that the lid is ifted (or would be lifted if lowered) or materials placed on top of, or in the immediate .1icinity of, a Container, in bags, or otherwise. ii. "Premises" means a tract of land with or without habitable buildings or appurtenant structures. jj. "Process, Processed, or Processing" means the controlled separation, recovery, volume reduction, conversion, or Recycling of Solid Waste including, but not limited to, organized, manual, automated, or mechanical sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or includes the use of conveyor belts, sorting lines, or volume reduction equipment, or as otherwise defined in 14 CCR Section 17402(a)(20). kk. `Prghibited Container Contaminants" or "Contamination" means the following: (i) Discarded Materials placed in the Blue Container that are not Recyclable Materials; (ii) Discarded Materials placed in the Green Container that are not Organic Waste; (iii) Discarded Materials placed in the Gray Container that are Recyclable Materials or Organic "Waste; and (iv) Excluded Waste placed in any Container. Il. `Refuse" means any and all discarded items and substances of every kind, including salvageable or Recyclable Materials, and garden wastes, but not including sewage, septic tank contents, sand trap contents, grease trap contents, infectious wastes or Hazardous Wastes as defined by state and federal law. mm. "Recyclable Materials" means Refuse consisting of plastic bottles, tin, steel and aluminum cans, glass bottles and jars, newspapers, brown paper bags, corrugated cardboard, chipboard, colored paper and bags, magazines, white and colored paper, as well Page 6 of 35 as all other materials included in the State CRV program. Categories of Recyclable vlaterials may be temporarily Disposed if there is no viable outlet for such material and -hey cannot be reasonably stockpiled by WM. In such event, WM will provide City with documentation showing a lack of viable outlet and inability to reasonably stockpile for -uture Recycling. nr_. "Recycle/Recycling" means the process of Collecting, sorting, cleansing, treating, and 7econfiguring materials for the purpose of returning them to the economic mainstream in -he form of raw material for new, reused, or reconstituted products that meet the quality standards necessary to be used in the marketplace. Recycling includes processes deemed ro constitute a reduction of landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or transformation as defined in Public Resources Code Section 40201. oc. `SB 1383" means Senate Bill 1383 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants as may be amended, supplemented, superseded, and replaced from time to time. pp. `SB 1383 Regulations" means the Short -Lived Climate Pollutants (SLOP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Chapter 2 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR. qq. `S.ingle-Family or Single -Family Dwelling" means any residential Premises with less than five (5) dwelling units. rr. `Solid Waste" all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, Refuse, paper, rubbish, ashes, Industrial Wastes, Construction and Demolition Debris, abandoned vehicles and parts thereof, discarded home and Industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not Hazardous Waste, manure, vegetable or animal Solid and semisolid Wastes, and other discarded Solid and semisolid Wastes, as defined in PRC Section 40191, with the exception that Solid Waste does not include any of the following wastes: i. Hazardous Waste, as defined in PRC Section 40141. ii. Radioactive waste regulated pursuant to the Radiation Control Law (Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of the Health and Safety Code). iii. Medical waste regulated pursuant to the Medical Waste Management Act (Part 14, commencing with Section 117600, of Division 104 of the Health and Safety Code). Untreated medical waste shall not be Disposed of in a Solid Waste Landfill, as defined in PRC Section 40195.1. Medical waste that has been treated and deemed to be Solid Waste shall be regulated pursuant to PRC, Division 30. ss. ` Source Separated' means materials, including commingled Recyclable Materials, that Page 7 of 35 have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or Processing those materials for Recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the Agreement, Source Separated shall include separation of materials by the generator, property owner, property owner's employee, property manager, or property manager's employee into different Containers for the purpose of Collection such that Source Separated materials are separated from Gray Container Waste and other Solid Waste for the purposes of Collection and Processing. tt. "Transfer" means the act of transferring Discarded Materials Collected by WM from WM's Collection vehicles into larger vehicles at an Approved Transfer Facility for transport to ether Approved Facilities for Processing or Disposing of such materials. Transfer allows for removal of materials excluded or prohibited from handling at the Approved Transfer Facility (e.g., removal of Hazardous Waste). uu. `l]niversal Waste" means electronics (VCR's, cell phones, radios), batteries, mercury =hermostats, fluorescent lights, mercury thermometers, and other products containing nercury or other heavy metals. Section 3 SERVICE AREA a. -Exclusive Services. The City does hereby grant to WM, and WM shall have the exclusive duty, right and privilege to Collect and Dispose or Process all Solid Waste (including Source Separated Recyclable Materials and Source Separated Organic Waste) generated, deposited, accumulated or coming to exist at a Premises in the City (collectively, the `Exclusive Services"). Except as otherwise provided in this Section 3, all Commercial, Multi -Family and Single -Family Premises within the City shall be required by City to atilize the Collection services of WM as provided herein. All Single -Family Premises shall :stablish Collection services separately and two or more Single Family Premises shall not De permitted to share Collection services under a single account. b. �ndustrial Customers. Industrial Waste services are not included in the Exclusive Services -3rovided for under this Agreement. Industrial Waste may be hauled by any holders of a :�ity-issued Industrial Waste Hauler's Permit that have paid the current fee listed in the ::ity's Industrial Waste Haulers Permit Fee structure. Industrial Waste Hauler permittees would obtain, at their own expense, all permits and licenses required by Federal, State, and ocal laws and ordinances and maintain the same in full force throughout the term of the -3erm it. c. personal Handling o_f Waste. Notwithstanding Section 3(a), nothing in this Agreement shall -irevent any owner, occupant or tenant of a Premises from personally handling, hauling, or -ransporting Solid Waste generated by or from such Premises for purposes of Disposing of -he same at an authorized Disposal area or Transfer station, nor shall anything in this Agreement affect or limit the right of any person to sell Recyclable Materials or Organic Page 8 of 35 Waste (i.e., receipt of a net payment) to any person lawfully engaged in the recycling business in the City or to donate Recyclable Material or Edible Food to any bona fide zharity, provided that all such materials are separated by the generator. d. Exclusive Right Enforcement, The City shall use good faith efforts to protect and enforce :he exclusive rights of WM through appropriate ordinances and enforcement of those ordinances against third party violators. WM may request that the City enforce the -xclusivity provision of this Agreement against third party violators, including but not limited to seeking injunctive relief, and the City shall use good faith efforts in such -nforcement actions. Section 4 THREE -CONTAINER SYSTEM (BLUE, GREEN, AND GRAY CONTAINERS) a. :general. Beginning on or before March 1, 2024, WM shall provide a three -Container collection program for the separate Collection of Source Separated Recyclable Materials, Source Separated Organic Waste, and Gray Container Waste as specified in this Section, -ising Containers that comply with the requirements of Section 6. This three -Container Collection program shall include WM providing all labor, equipment, -ools, materials, trucks, Containers, and Carts, supervision, management, and all other tems incidental thereto, and to perform all work necessary, to complete the work specified, and in the prescribed manner and time for the collection of Gray Container Waste, Source Separated Recyclable Materials, neighborhood cleanup materials, and Source Separated Organic Waste, and the provision of other services in the City as specified in this .agreement. b. Source Sqparated Rccycl6fe Materials Collection Blue Container). WM shall provide Slue Containers to Customers for Collection of Source Separated Recyclable Materials and shall provide Source Separated Recyclable Materials Collection service, as described in -his Agreement. Recyclable Materials Containers in use before March 1, 2024 may continue to be used, but new Containers placed into service after March 1, 2024 shall comply with the definition of Blue Containers under the SB 1383 Regulations. WM shall Transport the Source Separated Recyclable Materials to (i) an Approved Source Separated Recyclable Materials Processing Facility, or (ii) an Approved Transfer Facility for Transfer and Transport to the Approved Source Separated Recyclable Materials Processing Facility, as specified in Section 7(a). i. Single -Family Customers. Standard service for Customers shall start with one (1) 64 -gallon Cart, collected bi-weekly. Provided there are no instances of Contamination, Customers can request to expand their standard service by up to two (2) additional 64 -gallon Carts. Curbside Collections shall be performed bi- weekly, on the same day as Gray Container and Green Container Collections. ii. Multi -Family Customers. WM will provide each Customer with Containers (Carts and/or Bins) and frequency of Collection services to contain Source Separated Page 9 of 35 Recyclable Materials. The charges for such services are set forth in Exhibits D -G. iii. Commercial Customers. WM will provide each Customer with Containers (Carts and/or Bins) and frequency of Collection services sufficient to contain all Source Separated Recyclable Materials. The charges for such services are set forth in Exhibits D -G. c. Source Separated Organic Waste Collection [Green Cbntainerl. WM shall provide Green Containers to Customers for Collection of Source Separated Organic Waste and shall provide Source Separated Organic Waste Collection service, as described in this Agreement. Organic Waste Containers in use before March 1, 2024 may continue to be used, but new Containers placed into service after March 1, 2024 shall comply with the definition of Green Containers under the SB 1383 Regulations. WM shall Transport the Source Separated Organic Waste to (i) an Approved Source Separated Organic Waste Processing Facility, or (ii) an Approved Transfer Facility for Transfer and Transport to the Approved Source Separated Organic Waste Processing Facility, as specified in Section 7(a). Single -Family Customers. Beginning on or before March 1, 2024, standard service shall consist of one 96 -gallon Cart, collected weekly (service will be every other week until such time). Provided there are no instances of Contamination, Customers may request up to two (2) additional 96 -gallon Carts (starting April 1, 2026, this will be limited to one additional Cart), and receive weekly Collection services, at no additional charge. Curbside Collections shall be performed weekly, on the same day as Gray Container and Blue Container Collections. ii. Multi -Family and Commercial Customers. WM will provide each Customer with Containers (Carts and/or Bins) and frequency of Collection services (at least weekly) to contain Source Separated Organic Waste. The charges for such services are set forth in Exhibits D -G. Such services will be mandatory, unless an exception under SB 1383 Regulations applies. d. aray Container Waste Collection (6my Container . WM shall provide Gray Containers to :�ustomers for Collection of Gray Container Waste, and shall provide Gray Container Waste Collection service, as described in this Agreement. Gray Container Waste containers in use before March 1, 2024 may continue to be used, but new Containers placed into service after March 1, 2024 shall comply with the definition of Gray Containers ender the SB 1383 Regulations. WM shall Transport the Gray Container Waste to (i) the Approved Disposal Facility, or (ii) the Approved Transfer Facility for Transfer and Transport to an Approved Disposal Facility, as specified in Section 7(a). WM may allow :arpets and textiles to be placed in the Gray Containers. Customers may not place ?rohibited Container Contaminants in the Gray Containers. The Containers shall comply .vith the requirements of Section 6. i. Single -Family Customers. Standard service shall be one (1) 35 -gallon Cart, collected weekly. Where Customers request Carts larger than the standard size, the Page 10 of 35 charge will apply as set forth in Exhibit D. Curbside Collections shall be performed weekly, on the same day as Green Container and Blue Container Collections. Those Customers that have previously utilized a 20 -gallon Cart will be transitioned to the standard 35 -gallon Cart by March 1, 2024, and their rates will be incrementally adjusted over a three (3) year period as described in Section 10(b). ii. Multi -Family and Commercial Customers. WM will provide each Customer with Containers (Carts and/or Bins) and frequency of Collection services (at least weekly) to contain Gray Container Waste. The charges for such services are set forth in Exhibits D -G. e. ::ommercial Generator Compliance Reviews. Subject to Applicable Law governing data security and privacy rights, WM shall, upon City's request, assist City with its annual compliance review of Commercial Customers as set forth in 14 CCR Section 18995.1(a)(1)(A), as may be amended from time to time. Any such compliance review ;hall mean a "desk" review of records to determine the Commercial Customer's -ompliance with 14 CCR Section 18984.9(a). WM is not required to perform any such `desk" review of Edible Food Recovery Services and other similar entities regulated by 14 XR Division 7, Chapter 12. f. 3111383 Reporting. Within ninety (90) days after the end of each calendar year, WM shall -irovide an annual report to the City covering the most recently completed calendar year. Such report shall contain all of the following information: Contamination Monitoring Rcpart. WM's report shall include the following information regarding route reviews conducted by WM under this Agreement: i. Documentation of route reviews conducted pursuant to 14 CCR Section 18984.5(b), as described and in accordance with 14 CCR Section 18995.1, including a description of the process for determining the level of Contamination and the number of route reviews conducted; ii. Documentation of "desk" compliance reviews conducted by WM under subsection (e), in accordance with 14 CCR Section 18995.1, and the number of Contamination notices, Contamination fees issued to Customers, or targeted education materials issued to Customers for Prohibited Container Contaminants, as applicable; iii. Copies of all documentation related to route reviews, "desk" compliance reviews, and notices issued to Customers with Prohibited Container Contaminants; and iv. Documentation of the number of containers where the contents were Disposed due to observation of Prohibited Container Contaminants. Page 11 of 35 ii. Compliance Report. WM's report under this section shall include: i. The total number of Customers receiving each type of Organic Waste collection services; ii. The number of Organic Waste Customers that received information and the type of education and outreach used and annual Edible Food Recovery data provided from the San Joaquin County Public Health Department; iii. The number of complaints that were received and reviewed by WM and the City under subsection (e) above shall be included in the report. To complete this complaint reporting requirement, the City shall provide WM with any complaints that it receives, and WM shall also separately provide the City with the complaints it received at least annually, but more frequently, if possible; and iv. Copies of information provided to Customers related to SB 1383, including the date that the information was distributed to Customers, the number of accounts receiving the information, if applicable, in accordance with 14 CCR Section 18985.3. g. Schedules, Routes, and Literature. WM shall make available to City maps and schedules of collection routes and keep such information current at all times. WM shall cooperate with the City to coordinate collection route schedules and City street sweeping schedules. i. Maps and schedules of collection routes shall be available to City not later than thirty (30) calendar days prior to the initiation of collection operations or changes in operation. ii. Maps and schedules of collection routes shall show the day(s) for regularly scheduled pickup for each route and area. iii. Not less than one week prior to beginning collection operations or changing routes or schedules that alter the day(s) of collection, WM at its expense, will so notify each Customer affected. Notice shall be made to individual Customers, in writing and by public notification by means of local news media. iv. When a scheduled collection day falls on a holiday (i.e., New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day or Christmas Day), WM may, at its option and upon notice to its Customers by publication in a local newspaper of general circulation, collect either on the holiday or on the day immediately prior to, or delay collection schedules one day. WM may also have the option to reschedule collection to the Saturday before or after the holiday and provide written notice to each Customer at least two (2) weeks in advance. h. are and Diligence. WM shall exercise all reasonable care and diligence when Collecting Solid Waste or providing other services as required under this Agreement. WM must :xercise due care so as to prevent spilling, scattering, or dropping of collected materials Page 12 of 35 through collector activity and shall immediately, at the time of occurrence, clean up such spillage, dropping or scattering. L Service Ouality Review, The City shall periodically review WM's Customer survey results to ensure that WM is consistently providing quality service to meet Customer expectations. If City determines that WM's quality of service is not being maintained, the City shall provide written notice of such failure to WM including a description of the specific deficiencies identified by City and the action necessary to correct such deficiencies. If WM fails to correct these deficiencies within ten (10) days of receipt of such notice, such failure shall constitute cause for termination of the Agreement pursuant to Section 33 hereof. j. Plim of Collection. The normal collection point for Cart services shall be at the Customer curbside. Backyard service shall be offered at an additional cost as specified in Exhibits D, E and F. The normal collection point for container services will depend on property and business needs that meet City's planning and zoning laws and regulations. k. Quiotities and ['reparations. Customers shall limit the amounts of material they place in Gray Containers, Blue Containers and Green Containers to the capacity intended for each Container size and as intended for Collection. If the Customer exceeds the intended Container capacity, weight, or does not prepare their material for collection as noted herein, the following shall apply: i. Overage. _erase. Roil -Out Period — Education and Outreach. Between September 1, 2023 through December 31, 2023 (the "Roll -Out Period"), for instances of Overage, WM shall provide educational materials designed to minimize instances of Overage. If WM documents that a particular Customer has caused an Overage during the Roll -Out Period, where it can be done safely, WM shall still collect the offending Container (material laying on the ground will not be collected) and WM will provide a violation notice to the Customer (electronically, if the Customer has provided such contact information to WM, otherwise by mail to the Customer mailing address) with the following information (a "Violation Notice"): i. Date of the offense; ii. Description of the offense; iii. If available, a photograph or video (or link to photograph or video); iv. A description of the materials that are appropriate for collection in said Container and a link to view online with educational materials; and v. A website address to obtain additional information and/or receive responses to questions the Customer may have. Page 13 of 35 2. Post Roll -Out Pcriod. After expiration of the Roll -Out Period ("Post Roll - Out Period"), WM shall respond as follows: i. First Occurrence. WM shall service Containers with Overage except where it is dangerous to do so. WM shall then provide a Violation Notice electronically, if the Customer has provided WM with electronic contact information, otherwise by mail to the Customer's mailing address. ii. Second and Subsequent Occurrences. WM shall service Containers with Overage except where it is dangerous to do so. Additionally, with respect to each event of Overage of a Gray Container, WM may thereafter increase the Customer's Gray Container size or number of Gray Containers, in which case WM will be paid for such increased services according to the Rates. With respect to each event of Overage of a Blue or Green Container, (a) if the Container with Overage has no Contamination, WM may increase the Customer's Blue or Green Container size or number, and (b) if the Container with Overage has Contamination, WM may increase the Customer's Gray Container size or number of Gray Containers, in which case WM will be paid for such increased services according to the Rates. iii. Twelve (12) months after a first occurrence described in 2(i) above, the number of Overage "occurrences" shall be reset to zero (0). However, Customers shall keep the additional or larger Containers delivered pursuant to 2(ii) above. A Customer may petition WM to reduce additional or larger Containers delivered pursuant to 2(ii) above if they have had no instances of Overage during the previous twelve (12) months. 3. WM will not collect loose Solid Waste or Refuse unless the Customer has made advance arrangements with WM for that collection. Section 5 OTHER WM SERVICES a. Recycling Education. WM will provide a Recycling and Education Awareness Program. As an incentive and recognition for City and community groups participating in the Recycling Education Awareness Program, WM will donate, at its discretion, $40,000 annually to the community groups within the City limits of Lodi. This amount will increase five hundred dollars ($500) per year over the life of this Agreement. WM shall report its ;ommunity group donations to City annually. b. 4B 939. WM, in coordination with City, will provide comprehensive AB 939 services ncluding: i. WM shall submit a draft of the Source Reduction and Recycling Element document for City's review and assist City in its submission. ii. WM shall assist City in preparing the Annual Report, including all necessary Page 14 of 35 documentation and reports. iii. WM shall prepare the quarterly and annual tonnage reports and submit to City. iv. WM shall defend, indemnify and hold harmless City with respect to the City's failure to meet its AB 939 Diversion goals as a result of WM's failure to meet the applicable Diversion goals for the materials collected by WM. Such indemnity shall exclude all damages or claims caused by, arise from or in connection with (i) any negligent actions or omissions or willful misconduct of the City, or its employees, agents, appointed and elected officials; or (ii) the failure of the City or its employees, agents, appointed and elected officials to comply with or enforce applicable Solid Waste and/or recycling statutes, ordinances, regulations, or other requirements, other than failures attributable to WM's performance under this Agreement. The extent of WM's liability under this Section shall not exceed the amount of WM's proportionate share of fault. Illegal Dumping. WM will provide an illegal dumping pick-up program coordinated between City and WM. WM will provide up to thirty-five (35) illegal dump collections during each calendar year. Each collection will be limited to two (2) cubic yards. The illegal dumping service will be provided on public property and City and railroad rights of way only. City will notify WM of the illegal dump location, WM will be required to collect item(s) within five (5) business days of notification. WM will not be required to pick-up Excluded Waste. Upon verification of the identity of the person(s) responsible for the illegal dumping, City may, consistent with the City Attorney's prosecutorial discretion, prosecute the illegal dumping in accordance with local and state litter laws. In addition, the City may collect fees for the illegal dumping to reimburse WM's Disposal cost per ton, plus an hourly cost for equipment and labor charges in addition to any other fees or fines that may be imposed by City. City will pay WM for costs incurred if such reimbursement fees are collected. WM shall cooperate with City to verify the identity of persons responsible. For illegal dump collections in excess of thirty-five (35) per calendar year and those in excess of two (2) cubic yards, the City will pay WM for such services at the Disposal cost per ton and established hourly rate then in effect for each fully -crewed vehicle employed in providing such service from the time the vehicle leaves WM's facility until the time it returns there. d. Annual Neighborhood Clean -Up. WM will provide an annual neighborhood curbside clean-up collection service for single family residential Customers once a year, typically in April of each year. This service will be limited to the equivalent of three (3) 64 -gallon Gray Container Carts at the curb. Items must be bagged, bundled, boxed or containerized and weigh less than fifty (50) pounds per container. Items to be Disposed must be at the curb, directly in front of the residence and must be away from parked cars and Refuse Carts. Items must be at the curb by 5:00 a.m. on the Customer's regular Refuse service date. WM will notify all residents of a schedule indicating the dates of the clean-up and provide instructions and accepted item parameters, which must be approved by City. This annual service is at no additional charge to all residential Customers. Unacceptable items include dirt, concrete, liquids, toxic or hazardous materials, cathode ray tubes (CRT) and large heavy metals such as auto bodies and engines. Page 15 of 35 e. Additional Programs to Discourage Illegal Duinping and Accumulation of Refuse. The following two services shall be provided to all Single -Family residential Customers to assist in helping the City of Lodi discourage illegal dumping and the accumulation of Refuse: WM will provide each single family residential Customer with one (l) "Transfer Station Voucher". These vouchers will allow each Customer with the ability to bring to WM's Transfer station a volume of up to two (2) cubic yards of acceptable Refuse per voucher at no cost. Voucher must be presented upon entrance into Transfer station. Unacceptable items include Commercial waste, dirt, concrete, tires, liquids, toxic or hazardous materials, CRT and large heavy metals such as auto bodies, engines, transmissions, refrigerators and air- conditioners that still have chlorofluorocarbons (CFC's). ii. WM will provide at its Transfer station a Dollar Dump Day on a date between March 15 and April 15, as determined by WM and provided in a notice to Customers. At this event, Single -Family Customers within the city limits of Lodi may bring up to two (2) cubic yards of Refuse in a single load to WM's Transfer station at a reduced Transfer station fee. It will be required that residents bring a voucher which has been mailed to them by WM. Proof of residency shall be required. Unacceptable items will be described in the notice as items include Commercial waste, dirt, concrete, tires, liquids, toxic or hazardous materials, CRT and large heavy metals such as auto bodies, engines, transmissions, refrigerators and air- conditioners that still have CFC's iii. WM shall get approval from City for the dates of the above services. f Advertising Costs. As provided in this Section 5, WM shall be responsible for all costs associated with the advertising and promotion of special services and activities within this Agreement. g. _Mwkefing of Recyclable Materials. Or nic Waste or Salva ed Materials. WM will provide transporting, marketing and processing of all collected Source Separated Recyclable Materials and Source Separated Organic Waste. WM shall have the full and -xclusive right to all such material or salvageable material collected in connection with the Solid Waste and shall have the exclusive right to any funds realized from the marketing of Recyclable Materials, Organic Waste or salvaged materials. h. Litt' Street Sweeping Debris and Fall Leaf Removal. WM will provide Disposal services For City Street Sweeping debris and the Annual Fall Leaf Removal at no additional charge .o the City. The following conditions will apply: i. Disposal is limited to twelve hundred (1,200) tons per year. WM will charge the City for any excess tonnage at the then current Transfer station gate rate. ii. Leaves and street sweeping debris will be delivered by the City to WM and WM shall issue a weight tag to the City. Page 16 of 35 iii. Leaves must be free of Contamination. The City will pay WM's regular Disposal fee for loads that include contaminants in excess of 1 % by weight or volume. i. City Services. WM will provide Containers and Collect Gray Container Waste, Source Separated Recyclable Material, and Source Separated Organic Waste at City buildings and properties throughout the City at no additional charge, so long as such Containers are utilized for normal City operations, not special projects or use for third party materials. At the current time, the City has public containers at approximately 20 locations as depicted on Exhibit H. If additional service is needed during the term of this Agreement, City may request additional Collection of up to 10 additional Gray Containers, Blue Containers or Green Containers at no additional charge. The City will pay WM for any additional requested containers in excess of the 10 allowed, based on then current service rates for Customers utilizing the corresponding type and size Container(s). j. SMial Collection Events. WM shall host four (4) Collection events per year to be conducted by a third -party vendor to Collect e -waste and Universal Waste at WM's Transfer station or alternative permitted site within the City agreed to by WM and City. WM shall host one (1) Collection event per year to be conducted by a third -party vendor to Collect Household Hazardous Waste at WM's Transfer station or alternative site within the City agreed to by WM and City, with San Joaquin County Public Works as the Sponsoring Agency. k Additional Services. This Agreement contains all expectations and obligations regarding WM's performance of Solid Waste, Recycling, and Organic Waste Collection services for City. The City and WM must either amend this Agreement or enter into a separate agreement for the provision of any new services or programs that are not expressly provided for in this Agreement. I. program Coordination. WM understands and acknowledges that WM is providing an integral part of a City service. Therefore, WM shall cooperate with City and its citizens in carrying out the basic task of Collecting Solid Waste as provided herein. City shall have no role in WM's provision of Solid Waste service to any other jurisdiction. Sectior 6 CONTAINER REQUIREMENTS a_ Containers. i. New Containers placed into service on or after March 1, 2024 shall comply with the Container color requirements specified in this Section or as otherwise specified in 14 CCR Section 18982; 14 CCR, Division 7, Chapter 12, Article 3; or other Applicable Law. The parties agree that Containers shall be in the following colors: 1. Gray Containers: green bodies and black lids 2. Blue Containers: green bodies and blue lids 3. Green Containers: green bodies and green lids Page 17 of 35 ii. If an existing Container breaks or is otherwise rendered non-functional on or after March 1, 2024, WM shall replace the non-functional Container with a Container that complies with the color requirements of subsection (i) above. WM will use commercially reasonable efforts to recycle Carts taken out of service. iii. Notwithstanding this Section, WM is not required to replace functional Containers in use prior to March 1, 2024. However, such Containers shall be replaced with Containers compliant with subsection (1) prior to January 1, 2036. b.-,abclinn . Containers placed into service on or after March 1, 2024 shall comply with the abeling requirements of SB 1383 Regulations. Section 7 TRANSFER, PROCESSING, AND DISPOSAL a. Transport to Approved Facilities. WM shall Transport all Discarded Materials to the Approved Facility(ies). The Approved Facilities shall comply with the following requirements: i. Approved Transfer Faal[ity. WM's Approved Transfer Facility shall be a Transfer Facility or operation that Transfers Single -Family, Multi -Family, and Commercial Source Separated Recyclable Materials, Source Separated Organic Waste, and Gray Container Waste Collected in accordance with this Agreement. ii. Approved Source Separated P,ecyclable Materials Processin Facility (Blue Containers]. WM's Approved Recyclable Materials Processing Facility shall be a Facility or operation that Processes Single -Family, Multi -Family, and Commercial Source Separated Recyclable Materials to recover materials designated for Collection in the Blue Container. iii. Approved organ 1c. W to Processing Facility Green Containers). WM's Approved Organic Waste Processing Facility shall be a Facility that Processes Single -Family, Multi -Family, and Commercial Source Separated Organic Waste to recover Source Separated Organic Waste. iv. Approved_ Disposal Facility (Gray Containers). WM's Approved Disposal Facility shall be a Disposal Facility that accepts Single -Family, Multi -Family, and Commercial Gray Container Waste Collected in accordance with this Agreement. b. Allowable Organic Waste Facilities. If WM is interested in Transporting Discarded Materials to a type of facility that is not described above, WM shall obtain written approval from the City and such facilities or activities shall constitute areduction in landfill Disposal pursuant to SB 1383 Regulations. If WM is interested in using a facility, operation, or activity not listed above and not specifically identified in SB 1383 Regulations, WM shall be responsible for securing the necessary approvals from CalRecycle, pursuant to the SB 383 Regulations, that the facility's process or technology constitutes a reduction in landfill Disposal prior to the City's final approval of such facility or activity. Page 18 of 35 c. Guaranteed Capacity and l acility Standards. WM shall guarantee Transfer, Processing, and Disposal capacity at the Approved Facilities to receive all Discarded Materials Collected by WM throughout the Term of the Agreement. d. TTIvr portation and Facility Costs. WM shall pay all costs for the Transport, Transfer, Processing, and/or Disposal of Discarded Materials Collected in accordance with this Agreement. WM's compensation for such services is included in the Rates charged to Customers. e. Subcontractors, If WM does not own or operate one or more of the Approved Facilities, WM shall enter into a subcontract agreement with the owner or operator of such Approved Facility(ies) and the requirements of Section 7(a) shall pertain to the Subcontractor. In addition, Subcontractor requirements and obligations related to indemnification (Section 24) and insurance requirements (Section 23) shall apply, as well as any other Subcontractor requirements or obligations stated in other sections of this Agreement. f. Transportation to Ngn-Aliproycd Facilities Prohibited. If WM Transports Discarded Materials to a Facility other than the Approved Facility(ies) or an Alternative Facility without prior City approval, WM's failure to comply may result in City pursuing remedies available for the breach of this Agreement. Section 8 CONTAMINATION MONITORING a. 313 1383 Route Reviews. Commencing on or before March 1, 2024, WM shall conduct Hauler Route reviews for Prohibited Container Contaminants in a manner that complies with the SB 1383 Regulations. City has approved WM's use of its Smart Trucks"' system, ncluding Contamination monitoring via digital and video monitoring and the use of the nternet to conduct such route reviews. b. 2ontamination in Blue and Green Containers. Roll -Out Period Education and Outreae . During the Roll -Out Period WM shall not impose a Contamination Charge, but instead shall provide educational materials designed to minimize instances of Contamination. Where WM documents that a particular Customer has Contamination during the Roll -Out Period, WM shall Collect the offending Container if can be done safely, and provide a Violation Notice to the Customer (electronically, if the Customer has provided WM with electronic contact information, otherwise by mail to the Customer's mailing address) with the following information: 1. Date of the offense; 2. Description of the Contamination; 3. If available, a photograph or video (or link to photograph or video); 4. A description of the materials that are not appropriate for Collection in said Container and a link to view online with educational materials; and 5. A website address to obtain additional information and/or receive responses Page 19 of 35 to questions the Customer may have ii. Post Moll -Out Period. The following shall apply after the Roll -Out Period: 1. First Occurrence. WM shall service Containers with Contamination, except where there is visible Unacceptable Waste. WM shall then provide a Violation Notice electronically (if the Customer has provided WM with electronic contact information), otherwise by mail to the Customer's mailing address. 2. Second and Subsequent Occurrences. WM shall service Containers with Contamination, except where there is visible Unacceptable Waste. Additionally, with respect to each event of Contamination of a Green or Blue Container, WM may thereafter increase the Customer's Gray Container size or number of Gray Containers. WM will be paid for such increased services according to the Rates. 3. Reset of Contamination Occurrences. Twelve (12) months after a first occurrence described in ii(1) above, the number of Contamination "occurrences" shall be reset to zero (0). However, Customers shall keep their additional or larger Gray Containers delivered pursuant to ii(2) above. A Customer may petition WM to reduce additional or larger Containers delivered pursuant to ii(2) above if they have had no instances of Contamination during the previous twelve (12) months. Section 9 BILLINGS AND PAYMENTS a. Street Maintenance Fed. Commencing September 1, 2023, WM agrees to pay the City a monthly street maintenance fee of $93,582.57 On April 1, 2024, and each April 1 Thereafter, the street maintenance fee shall be increased by the same percentage amount by which WM's rates are increased pursuant to Section 10(b). For purposes of clarity, the August 2023 payment shall be $66,082.57. b. Downtown Maintenance Fee. Commencing September 1, 2023, WM agrees to pay the City a monthly downtown maintenance fee of $8,333.33. On April 1, 2024, and each April 1 thereafter, the downtown maintenance fee shall be increased by the same percentage amount by which WM's rates are increased pursuant to Section 10(b). c. SB 1383 Fee. Commencing September 1, 2023, WM agrees to pay the City a monthly SB 1383 fee of $10,416.67. On April 1, 2024, and each April 1 thereafter, the SB 1383 fee shall be increased by the same percentage amount by which WM's rates are increased pursuant to Section 10(b). The SB 1383 fee will be used by the City to fund a full-time employee who will focus on SB 1383 related matters. d. .administrative Fee. WM will pay the City an administrative fee of $250,000 on or about April 1, 2024, April 1, 2025, April 1, 2026 and April 1, 2027. Page 20 of 35 e. Customer Billing. City shall, as part of its municipal utility billing system, bill regularly scheduled Customers and collect payments from them for the Exclusive Services. WM shall provide City with all necessary billing information as soon as possible but no later than the City's regularly scheduled billing date. City will furnish billing schedule to WM. City will bill WM $28,017.65 per month for billing services effective as of the date of this Agreement and may increase the amount up to the percentage increases shown in Section 10(b). If City determines to increase billing charge, City will notify WM of said increase thirty days before increase becomes effective. f. Exclusive Service Performance. WM shall perform the Exclusive Services to ensure adequate protection of public health and safety as provided by City Ordinance. WM shall provide Exclusive Services required under this Agreement for the Rates set forth as attached hereto and incorporated herein as Exhibit D -G, as the same may be adjusted in accordance with Section 10. g. Franchise Fee _Collection and Payment. City shall remit to WM each Friday, the net collections in the previous week after deducting from collections a 4.8% franchise fee. City hereby agrees to keep and maintain proper records of its collection hereunder and to nake such records available to WM or its authorized agent for audit at any reasonable time n the office of the City of Lodi Finance Department. Billing. The number of City -billed Service Recipients shall be determined as follows: 1. Not later than the 30th of each month, the City shall provide to the Company the total number of City -billed Service Recipients as determined by the City. 2. Company shall have forty-five (45) days to review the total number of City - billed Service Recipients and the supporting documentation supplied by the City. 3. Company shall inform the City in writing not later than 10 days following the end of the 45 -day review period of any disagreement with the total number of City -billed Service Recipients and the basis for such disagreement. 4. If Company and the City are unable to agree on the total number of City - billed Service Recipients within 10 days after receipt from the Company of the notice of disagreement, either Party may submit the matter to the City Council for resolution in its reasonable judgment, provided however, that where Company substantiates that the service has been provided, and the City does not agree to pay for the services, Company may remove the containers from the Premises of the Service Recipient unless payment in full in arrears is subsequently received from the City. h. ServiceAeeounting. WM shall setup a system of accounting to assure that all accounts are _n fact being served by WM with appropriate Gray, Blue and Green Container Collection services, neighborhood cleanup, and other services being provided, as otherwise required by this Agreement. Page 21 of 35 i. WM and City Interaction with Customers. WM shall provide the field and office interface in Lodi with its Customers. Requests for service shall be made by Customers through City. City shall maintain in writing documentation of all such account contacts on a daily basis so that appropriate Customer billing and WM compensation may be facilitated. Section 10 RATES a. Service Ratei. Effective September 1, 2023, Rates collected for services shall be set forth in Exhibit D -G (the "Rates"), subject to adjustment as provided in this Agreement. b. Annual CPI Adjustment. Commencing on April 1, 2024, and on the same date annually thereafter (the "Adjustment Hate"), the Rates shall be adjusted by a percentage amount 3erived by multiplying the then -current Rates by eighty percent (80%) of the percentage increase of the Consumer Price Index for all Urban Consumers for San Francisco -Oakland - San Jose, California area, All Items (1982-84=100) , series CUUROOOOSEHG CPI -U Water and Sewer and Trash Collection Services, US City Average, not seasonally adjusted, as published by the United States Department of Labor, Bureau of Labor Statistics ("CPI - U"). The CPI -U adjustment will be calculated using the change in the 12 -month annual average of monthly CPI -U index values between the January 1 to December 31 period of -he year immediately prior to the adjustment date, and the January 1 to December 31 period 3f the year before. Provided that adequate supporting information has been submitted by WM, the annual adjustment to Rates shall be deemed approved and shall take effect as outlined in this section. In the event the CPI -U is no longer published by the Bureau of Labor Statistics, WM and City shall negotiate in good faith to agree upon a suitable -eplacement index reflective of the cost of living in the franchise area. c. 20 -gallon Rates for Single -Family Gisstomers. On April 1, 2024, April 1, 2025, and April 1, 2026, in addition to the annual CPI adjustment pursuant to subsection (b) above, the 20- ;allon Rate for Single -Family Customers will be increased as follows: (New 35 -gallon rate for Single -Family Customers — New 20 -gallon rate for Single - Family Customers) / 3 Therefore, starting April 1, 2026, the 20 -gallon Rate will equal the 35 -gallon rate. d. 2xtraordintuy Adjustments. In addition to the annual adjustment provided by subsection b) above, the Rates may, upon written request of WM and approval by City (which such approval shall not be unreasonably withheld or delayed), be further adjusted to accommodate the unexpected increases to expenses associated with performance of the 3xclusive Services hereunder due to any one or more of the following causes: i. Force Majeure (see Section 33(i)); ii. Changes in Applicable Law that is effective after the date this Agreement is first executed by a party; iii. Increase in surcharges, fees, assessments or taxes levied by federal, state or local Page 22 of 35 regulatory authorities or other governmental entities related to the Exclusive Services; iv. Increase of at least 10% in the cost of transportation, including fuel and third -party transportation costs; or v. Any other extraordinary circumstances or causes or reasons that are not within the reasonable control of WM. If WM requests a Rate adjustment pursuant to this Section 10(c), it shall prepare a Rate adjustment request setting forth its calculations of the increased expenses and accompanying adjustment to the Rates necessary to offset such increased expenses. The ::ity may request documentation and data reasonably necessary to evaluate such request by WM, and may retain, at its own expense, an independent third party to audit and review such documentation and request. If such third party is retained, the City shall take -easonable steps, consistent with Applicable Law, to protect the confidential or proprietary iature of any data or information supplied by WM. The City shall consider all properly -alculated Rate adjustments within one hundred and eighty (180) days of WM's request, and if approved, the adjusted rates shall be deemed to take effect as of the date of WM's -equest. e. 1gproval of Rate Adjustments. All rate changes, except the base rate in paragraph a. of -his Section and the Rate adjustments in paragraphs b. and c. of this Section, shall be approved and adopted under the procedures set forth by Proposition 218, or any other -3rocess that the City is required to complete to adopt a rate or fee. For WM-requested rate changes, WM shall reimburse City for all costs incurred by City in connection with the ?roposition 218 or other required City procedures. f. Validity and Enforceability of Fees. In the event the franchise fee or any other fee set forth -n this Agreement is determined by a court to be invalid or unenforceable, then WM shall not be obligated to remit such invalidated fee to the City. City and WM will, as promptly as reasonably practicable following such court decision meet and confer to negotiate in good faith and using reasonable efforts to agree upon on adjustments to each of the Rates, which adjustments shall in the aggregate, as applied to Collection services, equal the amount of the City fees determined to be invalid or unenforceable. To the extent the Customers are entitled to a reimbursement of any invalid or unenforceable City fees, City will directly reimburse such Customers such City fees to the extent the same have been paid by such Customers either directly or indirectly (through Contractor) to the City. Section 11 MATERIALS TO BE COLLECTED WM ,hall furnish all labor, supervision, material, permits, licenses, and equipment necessary to provide the services provided under this Agreement, which shall include basic Solid Waste, recyclable, neighborhood cleanup, yard and garden waste Collection for occupants of specified dwelling units and business establishments within the City, as follows: a. Residential and Commercial Gray Container Waste, including properly containerized residential and Commercial Refuse and/or rubbish. Page 23 of 35 Ix Residential and Commercial Source Separated Organic Waste, including grass clippings, weeds, brushes, brush clippings and branch clippings when properly containerized. c Residential and Commercial Source Separated Recyclable Materials, properly containerized. d_ Neighborhood cleanup disposables and Recyclable Materials. e. Illegal dump services f Where required in this Agreement, WM shall only Collect toxic, or Hazardous Waste as permitted to do so by the State Health Department. g WM may only refuse to service a Customer or specific location when Refuse contains illegal materials, is not placed in approved container, or is not located in the required pickup area. h WM shall discontinue Solid Waste service at any location as set forth in a written notice sent to it by City. Upon further notification by City, WM shall resume Collection service on the next regularly scheduled Collection day. i. All containers will be returned to their proper location after dumping. Sectior 12 COLLECTION CONTAINERS All rraterials to be Collected shall be placed in City approved containers by Customers. Section 13 RUBBISH TOO LARGE OR TOO HEAVY FOR COLLECTION Items too large or heavy for proper containerization such as bundles of brush and branches, heavy earthen materials and other large items that are out of the scope of Exclusive Services will be Coll=t.-,d for a negotiated price with the Customer. If Customer requests such special service, these special services will be scheduled outside of WM's normal Collection schedule. Section 14 INDUSTRIAL COLLECTION WM may provide Industrial Refuse Collection services outside the scope of this Agreement in the City of Lodi in accordance with City Municipal Code. Section 15 TIME OF COLLECTION WM shall not commence Collection of Solid Waste in residential areas prior to 5:30 a.m. and 5:00 a.m. in Commercial areas, or continue Collection after 6:00 p.m. in either area. All Collection shall be mad-- as quietly as possible, and conform to any Federal, State, County or City noise level regulatic)ns. Page 24 of 35 Sectior 16 COMPLAINTS a. WM will receive and handle all complaints. Upon receipt of a complaint, WM shall identify and contact the complainant, investigate the issue, and then resolve the complaint directly with the complainant. WM shall keep a record of al I complaints and their resolutions, and shall forward such to City on a quarterly basis. Should WM not render Collection service within forty-eight (48) hours after a missed Collection complaint is reported to its authorized representative, City may make whatever arrangements are necessary, in its opinion, to provide the Collection service. WM will reimburse the City for all costs, charges and damages incurred by City, together with the costs of completing the work and all such costs may be charged against any monies due or which may become due WM. b. Ct shall notify WM of any complaint r orted to 01y. It shall be the duty of WM to take whatever reasonable steps may be necessary to remedy the cause of the complaint within forty-eight (48) hours after initial receipt and then notify City of its disposition. Section 17 DISPOSAL SITE DESIGNATION a. Cmn liance and Transport to Approved Disposal facilities. All Gray Container Waste Collected in the Service Area shall be transported by WM to an Approved Disposal Facility. Loads taken to Approved Disposal Facilities will be accounted for by weighing and paid for by WM at the then current rate. WM shall follow all established rules and .egulations when operating on any Disposal site. WM's operators shall follow all directions given by the landfill spotter when delivering Solid Waste material. b. Transfer Locations. WM may haul waste Collected under the terms of this Agreement to WM's Approved Transfer Facility. WM shall be required to weigh all loads Collected in _he City and hauled to the Approved Transfer Facility. WM will keep track and maintain -he records of tonnages hauled to and Transferred from the Approved Transfer Facility by =ype (i.e., Gray Container Waste, Recyclable Materials, and Organic Waste). Except for -materials retained for Recycling, WM shall transport Collected Gray Container Waste to =he North County Sanitary Landfill for Disposal or to such other Disposal sites as City may -rom time to time designate. Section 18 COLLECTION VEHICLES AND EQUIPMENT a. WM Fleet. WM shall provide and maintain during the entire period of this Agreement a feet of modern packer -type Collection vehicles, and corresponding personnel to operate such vehicles, sufficient in number and capacity to efficiently perform the work and render -he services required of WM by this Agreement. WM shall provide evidence satisfactory -o City of its ability to furnish adequate backup vehicles and personnel. b. +'chicle Condition. Each Collection vehicle shall be kept in a sanitary condition, good appearance and good repair at all times. City reserves the right to inspect WM's Collection -vehicles at any reasonable time to ascertain said condition. Page 25 of 35 c. Noise Standards. The noise level for the Collection vehicles during the stationary compaction process shall meet current State and local standards. d. VehicleEquipment. Each truck at all times shall be equipped with a shovel and abroom or rake, intended for the Collection of spilled Refuse. All vehicles shall be equipped with spill kits to be used in the event of a spill and to prevent fluids or oils from flowing into storm - water drains. e. WM identification. WM's vehicles and other equipment must be clearly identified with the name and phone number of WM's office on each side of the equipment. f. Equipment List Aysilability. WM shall furnish to City upon request a list identifying all zquipment to be used in fulfilling this Agreement and notify City of any changes. g. Vehicle Age. WM's primary fleet of Collection vehicles shall not exceed ten (10) years in age during the term of this Agreement, without the City's consent. h. Gero Emission Vehicles and Negotiated Costs. If WM or any of its California affiliates implement a fleet of zero emission Collection vehicles on a permanent basis, WM will use ,ommercially reasonable efforts to utilize such vehicles in the City of Lodi. If such vehicles -esult in greater operating or capital costs, then the City and WM will first agree on any compensation adjustments to offset such additional costs. Section 19 LAWS TO BE OBSERVED WM shill at all times observe and comply with all Federal and State laws, local laws, ordinances, orders, -ules, and regulations of the Federal, State, County, or local governments. Section 20 FAMILIARITY WITH LAWS AND ORDINANCES The s gning of this Agreement shall be considered as a representation that WM is familiar with all Federal State, and local laws, ordinances, and regulations which affect those engaged or employed in the work, or equipment used in the work or which affect the conduct of the work; and, no plea of misuiderstanding will be considered on account of ignorance thereof. Section 21 TAXES WM shall pay all applicable Federal, State and local taxes. Section 22 CONFIDENTIALITY WM acknowledges that City is legally obligated to comply with the California Public Records Act ("CPRA"). City acknowledges that WM may consider certain records, reports, or information contained therein, which WM is required to provide to City under this Agreement to be of a propr_etary or confidential nature. In such instances, WM will inform City in writing of which Page 26 of 35 records are considered propriety or confidential. At such time as City receives a request for records under the CPRA or Federal Freedom of Information Act or a subpoena or other court order request.ng disclosure of the identified records, City shall notify WM of the request, subpoena or order a -id of City's obligation and intent to provide a response within 10 days. WM shall within five dais either: (i) consent in writing to the disclosure of the records; or (ii) seek and obtain, at WM's pole cost and expense, the order of a court of competent jurisdiction staying or enjoining the disclosure of the records. Section 23 INSURANCE WM shall secure and maintain throughout the duration of this Agreement, insurance of such types and lainiinti in aniounis as rcl uii-W in VxhihiI "I"' attachLd hururu and iiicorporated hewin h�, Ihis refercnce.andi nut }moi • tnlnirnts Frs 41r r�'te ]+:Iml. ;- 1su,:.,Y WNW ..1,.111. .4.f3•"•L'1.,,,,.. 111 I,.,.:.....I „ dr•�iN +:TW''. -FTi he Slam ..1 L"lik"kpolicy to _•04--WAQ-- 0f1.-.I;W91v v:l;, ..1}F1CF-1•Ill'� "04"eA E160i1--i4iikl-�l'••,, ••,•,�„"•••rlrfm:�ciltiP.� '+1ilf ...,- (0' i he L a .,•..I i4)rn} H- 11 A - 11.,!. 1 L. 4441 ATHAfFa„C$ iWN1 c N11H �'If 0ri�L.- 7 Ll!]n aMe i9-f'lil•,,. under . . r. i l,, ..1.. ITL.: i =, . r h 1.1..11,. r� harl4Fv��is=aM u.1,; rl±� l til t�[+rT �i ,4-1—ttltned 5,9 n?1lc'-li$"i-ri1- 0(4k)•. 11�ErT• 41:,y The .,..1 iey ..hiA-i--,t--prir li a rr`� ... 11.1_, r-:1>tr--1 ;;> . sed r1Vfl e is 1., n -.��_ A e.. ..1„I l:,.,.,l., + E4141 R El �*_ c�c�r�m�-rnr-rz-*I�Iw, � . }t'ki-H''rriE}acii•£LGS „i}l, Feh r r:. he-i+fWF ,d rl tel-111Sf th' eenr • 1. Ed- 14 ..1 L1:11,., ill N4-hHil�r3r{•F•-Hrl.i�I.....,. 0,041}r.-rlie teed, ..r 11.:.- .,HFWW” 'HFwHIe': fH�-Ilt' HiL+r• t-ll..[-ti1i;^.;;;;;T-i;;::= i i�llrt�i3v-ff...1nm,-�,""" .With•1�tip��-+H-44�e--wHr-I. -x i-kinled 4iv-WM uil eF ihe--t F11 1S >#-IhiS-:.n-�}'40"`r,.r.,,;--rr,"'�}n[inloilnl-ll'- no, -it.'iS--FI1t:Fl 4Q -.004J) )0-A)ea^ 1 urre; +v�rr+i}iflect s+rrgl�fis�til Fnr j+lry rarz � G Gln t}nsl tier lamageeelu-pro-pei4y, arllF(-a#e E+ 1�rstwtlrl -A etiy'FilieHt�[�i' rrifr�+n wltsriirt [ i}�+k�Werted-E}t#+eial 111COFS:-A-'�eFT-t'.-,-r`tFld-I'.i17pIi1Vf3c'r..-lig. .,.a,1 ;�,,,:� ",_ins+fru&t-x.4,±4 F uW,,.ke-s Gol. iipensation-, r-nct:....11- L'NriWk,i o e„�+rtL s! r: r I"e--r"rFe SeFFWA-41- H-If)FF71 M111.1 A4.11..1 a” IR shall ht --malt. 10... u�,TM,1 1x ..171, .,.I�..,.�,c,,, �,.1, 1,.......1,._..,... .d r. u4mL-- Rim! 11 1'.,:1.1._, _ ..1..:-I,..il otA-F iie:e i 1 01-., a �W1...HI.{41-ia.,1.H.1F1`rF�-F�!�?BliSii?ilii'�1:,,;111 r1-n-Ti"EiFfi1041-t�]1E=:('-iii!:{fFfHifri'-fH-li-FtiiNV-IiFlt` - Agree -1f}liHFl e@ •,'••+ ..:II he 1 "•I H4-sFHbI.1-11Y--r'-1-ty. Section 24 WM TO INDEMNIFY CITY WM Mall indemnify and save harmless City, its Elected Officials, Officers, Employees and Agents Page 27 of 35 from ar.y and all claims, suits, or actions made or brought against the City, its officers, employees and agents for any and all injuries or damages, including, but not limited, attorney's fees and costs, experts' fees and costs, and consultants' fees and costs incurred by City in the defense of any such claim, suit or action, which results from or is caused by the negligent acts or willful misconduct of WM :)r its agents or subcontractors in doing the work and rendering the services provided for by this Agreement, excluding injuries or damages to the extent that they are caused by the negligent acts cr willful misconduct of City or its employees, agents, subcontractors or elected officials. The extent of WM's liability under this section shall not exceed the amount of WM's proportionate share o'fauIt. Section 25 PERMITS WM shall obtain, at its own expense, all permits and licenses required by Federal, State, and local laws or ordinance and maintain same in full force throughout the term of this Agreement Section 26 PERSONAL LIABILITY OF PUBLIC OFFICIALS Neither the City Council of Lodi nor any officers, employees or agents shall be personally responsible for any liability arising under or growing out of this Agreement or operations of WM under tic terms of this Agreement. Section 28 CITY NOT LIABLE FOR DELAY It is f --her expressly agreed that in no event shall City be liable or responsible to WM or to any other p-.rson for or on account of any stoppage or delay in the work herein provided for by injunction or other legal or equitable proceedings filed by persons not a party to this Agreement, or from or by or on account of any delay for cause over which City has no control. Section 29 PUBLIC CONVENIENCE AND SAFETY WM shall observe all City Ordinances, Resolutions, and policies relating to encroachments, obstruc-ing streets, keeping alleys or other rights-of-way open and protecting same, and shall obey all laws and City regulations and protocol controlling or limiting those engaged in the work. WM is gra-ited the right of using the streets or alleys for the purpose of doing the work specified in this Agreement, but is not granted exclusive use of such streets or alleys. WM shall handle the work in a marner that will cause the least possible inconvenience and annoyance to the general public and to the p-operty owners consistent with WMs reasonable operational requirements. There is hereby reserved to City, every right and power which is required to be herein reserved or provided by any ordinanye or resolution of the City, and WM agrees to be bound thereby and to comply with any actior or requirements of City in its exercise of such rights or power, heretofore or hereafter enacted or established. The awarding of this Agreement as provided for herein, shall not constitute a warier or bar to the exercise of any governmental right of City. No right or exemption shall be granted to WM except those specifically prescribed herein. Section 30 EXAMINATION OF THE SITE OF THE WORK Page 28 of 35 By the Signing of this Agreement, WM represents that it has carefully examined the service area, the Dis-)osal sites, and that WM is fully informed concerning the requirements of this Agreement, the physical conditions to be encountered in the work, and the character, quality and the quantity .of se-vice to be performed, and of materials and equipment to be furnished. Negligence or inattention of WM in determining site conditions prior to signing this Agreement, in any phase of its pe6ormance of the Essential Services, shall not obligate the City to pay any additional compersation for additional work caused by such negligence or inattention. Section 31 VERBAL AGREEMENTS No verbal agreement or conversation with any officer, agent or employee of City, either before or after execution of this Agreement, shall affect or modify any of the terms or obligations contained in this agreement. Any such verbal agreement or conversation shall be considered as unofficial informftion and in no way binding upon City or WM. Section 32 ASSIGNMENTS AND SUBCONTRACTING No per'ormance to be rendered or payment due under this Agreement may be assigned or transferred, and WM shall not subcontract any work hereunder other than those specified in this Agreen-ent, without the prior written approval of the City Council. Such assignment or subcontract will not be unreasonably withheld by the City Council. Notwithstanding the foregoing, should WM engage in reorganizations, mergers, consolidations or similar --ransactions between or among entities owned by the same direct or indirect parent entity, WM Shall notify the City of such change and the City must acknowledge its consent to such reorganizations, mergers, consolidations or similar transactions in writing for this Agreement to continue with the new entity. Section 33 BREACH, CURE, AND TERMINATION PROVISIONS a. City MA Act irWM -Doips Not. If WM fails to provide Collection services for Gray Waste, Source Separated Recyclable Material, Source Separated Organic Waste, and neighborhood cleanup as required by this Agreement for a period in excess of five (5) consecutive, scheduled working days, other than by reason of Force Majeure, City may -ake the following actions: i. At its option, take possession of all of WM's equipment and facilities used in the performance of this Agreement. ii. Employ such means as it may deem advisable and appropriate to continue work until the matter is resolved and WM is again able to carry out operations under this Agreement. iii. Charge any and all operating expenses incurred by City against any money then due or to become due to WM and, should the City's cost for continuing the operation exceed the amount due to WM, collect the amount due from WM and Page 29 of 35 also to assert a lien on all properties of WM. iv. During such period, the liability of City to WM for loss or damage to equipment and facilities so used shall be that of a bailee for hire, ordinary wear and tear being specifically exempt from such liability. b Automatic Termination u n Bankrupt . In the event WM shall be adjudged bankrupt under Chapter 7, either by voluntary or involuntary proceedings, then this Agreement shall immediately terminate and in no event shall this Agreement be, or be treated as, an asset of WM after adjudication of bankruptcy. c. Breach. Failure to perform any material part of this Agreement, other than by reason of Force Majeure, shall be considered a breach and City may terminate this Agreement after the lapse of the applicable cure period listed in Subsection d. below. d. Cure. Except for the occurrence or existence of Force Majeure, in the event of any material failure or refusal of WM to comply with its obligations under this Agreement, efforts to resolve the issue shall occur as follows: i. Meet and Con rer. WM and City shall meet and confer in good faith in an effort to cure the breach by informal resolution. H. Notice to Cure. If the parties are unable to informally resolve and cure the breach, City shall give written notice to WM specifying the particular default or defaults which; unless corrected, constitute a material breach of this Agreement on the part of WM. WM shall then have thirty (30) calendar days thereafter or, if the breach or default cannot reasonably be cured within such period and if diligent efforts to cure promptly commence. then the cure period shall continue as long as such diligent efforts to cure continue, but not beyond a period of ninety (90) calendar days. At the expiration of the cure period. WM still has not cured the defaults, City shall have the right to terminate this Aggeement. e. ?ossession of WM's equipment, facilities, and records. In the event of termination of this Agreement for breach, default, or bankruptcy as specified above, City shall have the right -o forthwith take possession of all WM's equipment, facilities, and records used in the -)erformance of this Agreement. i. City shall have the right to retain possession of said equipment, facilities, and records until other such items can be acquired by City for operation of the system or another contractor is engaged to perform the service. ii. City shall have the right at its option to purchase WM's equipment and facilities at the fair market value thereof. iii. City shall pay WM the reasonable rental value of such equipment, racilities during the time the same are used by City. Liability of City to WM during this period shall Page 30 of 35 be that of a bailee for hire, ordinary wear and tear specifically exempt from such liability. f. Termination for Cause Process. If City chooses to exercise its right to terminate this Agreement prior to expiration of the full term, the Termination shall become effective upon service of the City's written notice of its intent to terminate upon WM. Service of the notice to terminate shall be deemed to have been made five days after the date of mailing of the notice to WM by City. g Mutual Agreement to Terminate. WM and City may agree, upon mutually satisfactory terms, for the termination of all or any part of the business of this Agreement prior to the expiration of the term of this Agreement. h Criminal Conviction. In the event any contract manager, officer or director of WM is convicted of fraud, bribery or attempted bribery of a public officer or employee, embezzlement, extortion, racketeering, false claims, false statements, forgery or any similar felony involving business dishonesty, WM shall promptly terminate from employment or remove from office the convicted employee, officer or director and eliminate the ability of such employee, officer or director to manage, supervise or influence the decisions or actions of WM or any parent company of WM. If WM fails to comply with the foregoing obligation, WM may be considered in breach of this Agreement and City may terminate this Agreement at City's option as provided in this section. i. Force Majeurc. The performance of this Agreement may be discontinued or temporarily suspended in the event of Force Majeure. WM shall not be deemed to be in default and shall not be liable for failure to perform under this Agreement if WM's performance is prevented or delayed by Force Majeure. The Parties agree that the settlement of strikes, lockouts or other industrial disturbances, and litigation, including appeals, shall be entirely within the discretion of WM, and WM may make settlement thereof at such time and on any such terms and conditions as it may deem to be advisable, and no delay in making such settlement shall deprive WM of the benefit of this Section. "Force Majeure" means acts of Sod including landslides, lightning, forest fires, storms, floods, freezing and earthquakes, civil disturbances, strikes, lockouts or other industrial disturbances, acts of the public :nemy, wars, blockades, public riots, explosions, governmental restraint or other causes, whether of the kind enumerated or otherwise, which are not reasonably within the control :)f the party affected by the Force Majeure event. Section 34 NON-DISCRIMINATION IN EMPLOYMENT WM, in performing under this Agreement, shall not discriminate against any worker, employee or app ic.amt, or any member of the pub is because of race, co tor, rel igion, sex, gender. gender identity, gendrr expression, sexual oiientation, marital status, medical condition. military or veteran status, nationa: origin, ancestry, physical or mental disability, genetic information, or age, nor otherwise commit an unfair employment practice. WM will take affirmative action to ensure that applicants are employed, and that employees are dealt with during employment without regard to their race, creed. color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital Page 31 of 35 status, medical condition, military or veteran status, or national origin, ancestry, physical or mental disability, genetic information, or age,. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, incluiiig apprenticeship. WM further agrees that this clause will be incorporated in all subcon--racts entered into with suppliers of services, and all labor organizations furnishing skilled, unskilled and union labor, or who may perform any such labor or service in connection with this contract. Secti3r 35 EMPLOYEES a. All subcontractors, superintendents, foremen, and workmen employed by WM shall be competent and careful workmen skilled in their respective trades. b WM shall not employ any person who repeatedly engages in misconduct or is incompetent or negligent in the due and proper performance of its duties. c. WM shall enforce a policy which prohibits an employee from being under the influence of, intoxicated by, or otherwise impaired by drugs and/or alcohol while on duty or on company property. Any employee with a positive drug/alcohol screen will be subject to termination. d. Employees driving WM's vehicles shall at all times possess and carry an appropriate and valid vehicle operator's license issued by the State of California. e. WM's employees, officers, agents and subcontractors shall, at no time be allowed to identify themselves or in any way represent themselves as being employees or agents of city. f All persons employed by WM to Collect Solid Waste shall be required to wear clean aniforms when on duty. Uniforms shall bear a distinctive logo identifying the wearer as an -mployee of WM. Section 36 CLAIMS WM shall pay all just claims for the payment of employee and other labor, furnished materials service and equipment, rentals, Disposal and all other operating expenses associated with and comply _ng with the terms of this Agreement. Section 37 INDEPENDENT CONTRACTOR a. WM is an Independent Contractor. All services delivered by WM under this Agreement ;hall be provided under the coordination of City. It is understood and agreed that WM is sn independent contractor and that no relationship of employer-employee exists between :�ity and WM hereto. WM hereby agrees to hold City harmless from any and all claims :hat may be made against City, its Elected Officials, Officers, Employees or Agents based _ipon any contention by any third party that an employer-employee relationship exists by Page 32 of 35 reason of this Agreement b WM Control its Performance. It is further understood and agreed by the parties hereto that WM in the performance of its obligations hereunder is subject to the control or direction of City merely as to the result to be accomplished by the services hereunder agreed to be rendered and performed and not as to the means and methods for accomplishing the results. No permitted or required approval by City of WM pursuant to this Agreement shall be construed as making the City responsible for the manner in which WM performs its services or for any acts, errors or omissions of WM, such approvals are intended only to give City the right to satisfy itself with the cost and status of work performed by WM. c. City Does Not Employ WM or Any Subcontractors. If, during the performance of this Agreement, WM employs any third persons, such persons shall be entirely and exclusively under the direction, supervision and control of WM. All terms of employment, including hours, wages, working conditions, discipline, hiring and discharging or any other terms of employment, or requirements of law, shall be determined by WM, and City shall have no right or authority over such person or the terms of such employment, except as provided in Sections 7, 24 and 35 of this Agreement. d. WM Tax Responsibilities. It is further understood and agreed that WM shall issue W-2 Forms for income and employment tax purposes for all of WM's assigned personnel under the terms and conditions of this Agreement. Section 38 CONSTRUCTION AND INTERPRETATION It is Egreed and acknowledged by the parties hereto that the provisions of this Agreement have been ar-ived at through negotiation, and that each of the parties has had a full and fair opportunity to revise the provisions of this Agreement and to have such provisions reviewed by their respective legal ccunsel. Therefore, the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not apply on construing or interpreting this Agreement. Section 39 WAIVER The waiver at any time by any party of any of its rights with respect to a default or other matter arising in connection with this Agreement shall not be deemed a waiver with respect to any subsqLent default or other matter. Section 40 SUCCESSORS AND ASSIGNS This Agreement shall bind and inure to the benefits of the respective successors and assigns of the parties. Section 41 TIME Time is of the essence in the performance of each and every term of this Agreement Page 33 of 35 Sectior 42 TERM OF AGREEMENT a. Term. This Agreement shall commence on September 1, 2023 (the "Comm once merit. Date") and shall terminate on December 31, 2030. b. Renewal Options.. WM shall have the option to renew this Agreement once, for an additional five (5) years by giving the City notice thereof not later than March 31, 2029. Thereafter, at the City's option, with WM's concurrence, this Agreement shall be renewable for successive seven-year increments by giving WM notice of renewal not later than 18 months' prior to the expiration of the then existing term. c. No Obligations Following Agreement Expinition or Termination. At the end of the term of this Agreement, if City implements alternative service programs in WM Service Area, WM shall have no financial claim against City of any type or amount. WM specifically acknowledges and understands in this regard that WM shall provide the required services under this Agreement, during the term of this Agreement, at the herein agreed compensation, and do so under circumstances where, despite having provided quality service to City, the Agreement may expire as provided above, at which point City would have no remaining financial, legal or other obligation to WM and WM would have no .xpectations of any such further obligation on the part of City. Section 43 NOTICES Notices concerning this Agreement shall be deemed to have been served when deposited in the United States Mail, first class postage prepaid, and addressed as follows: To C.4y: City of Lodi City Manager 221 West Pine Street Lodi, CA 95240 To WM: Waste Management Atm. Area Vice President 100 Vassar Street Reno, NV 89502 Section 44 ENTIRE AGREEMENT AND RENEWALS This Agreement constitutes the sole, final, complete, exclusive, integrated expression and statement of the terms and conditions of this Agreement and understanding between City and WM concerring the subject matter addressed herein, and supersedes all prior negotiations, representations, or agreements, written or oral, relating to the subject matter of this Agreement. This Agreement shall not be considered modified, altered, changed or amended in any respect unles3 in writing and signed by both parties hereto. This Agreement may be amended from time to time by mutual agreement of City and WM; and, with the consent of WM, but at the sole, indeperdent election of the Lodi City Council to do so, may be renewed. Page 34 of 35 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. Page 35 of 35 CIT`_' OF LODI, a municipal corporation USA WASTE OF CALIFORNIA, INC., a Delaware Corporation authorized to do business in California and DBA CENTRAL VALLEY WASTE SERVICES STEPLEN SCHWABAUER City h1anager ATTIiS": OLIV-A NASHED City Clerk APPROVED AS TO FORM: KATI3 --UCCHESI, Interim City Attorney By: Page 36 of 35 EXHIBIT A AGR EMENT FOR SOLID WASTE COLLECTION, RECYCLING AND GREEN WASTE COLLECTION AND PROCESSING SERVICES IN THE CITY OF LODI DATED JULY 7, 2008 .. :. ADDENDUM TO SOLID WASTE FRANCHISE DATED APRIL 7, 2010 EXHIBIT C EXTENSION DATED FEBRUARY 26, 2015 EXHIBIT D CART RATES EXHIBIT E BIN RATES EXHIBIT F ROLL OFF RATES EXHIBIT G COMPACTOR RATES EXHIBIT H CITY LOCATIONS EXHIBIT I INSURANCE REQUIREMENTS Formatted: centered EXHIBIT I ND. E. The City of Lodi is now using the online insurance program PINS Advantage. Once you have been awarded a contract you will receive an email from the City's online insurance program requesting you to forward the email to your insurance provider(s) to submit the required insurance documentation electronically Insurance Requirements for Waste Hauler Contracts Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to pooperty which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as: 1. Commercial General Liability (CGL): Covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate lirrit shall be twice the required occurrence limit. 2. Automobile Liability: Covering any auto or if Contractor has no owned autos, then hired, and non -owned autos with limit no less than $5,000,000 per accident for bodily injury and property damage. 3. Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. 4. Pcllation Liability: $2,000,000 each occurrence. Other Insurance Provisions: (a) Addlional Named Insured Status The City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers are to be covered as additional insureds on the CGL and auto policy with respect to liability arising out of work or operations performed by or on benalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a lateredition is used (b) Prirrsry and Non -Contributory Insurance Endorsement ThB limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. For and claims related to this contract, the Contractor's insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with t. (c) Wainer of Subrogation Contractor hereby grants to City of Lodi a waiver of any right to subrogation which any insurer of said Contactor may acquire against the City of Lodi by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or -ict the City of Lodi has received a waiver of subrogation endorsement from the insurer NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) and (c) above: 221 West Pine Street, Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of therp oiect that it is insuring. (d) SevErabillty of Interest Clause The :erm "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability under the Contractors commercial general liability and automobile liability policies. (e) Notice of Cancellation of Coverage Endorsement This policy may not be canceled by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. Page 1 1 of 2 pages I Risk: rev. 8/16/2023 (f) Con#inuity of Coverage A I policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Contractor shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Contractor shall provide proof of continuing insurance on at least an annual basis during the Term. If Contractor's insurance lapses or is discontinued for any reason, Contractor shall immediately notify the C ty and immediately obtain replacement insurance. Contractor agrees and stipulates that any insurance coverage provided to the C ty of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or stattes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). (g) Faiigre to Comply If Contractor fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the nsurance. Contractor shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum al owable legal rate then in effect in California. The City shall notify Contractor of such payment of premiums within thirty (30) days of payment stating the amount paid, the name(s) of the insurer(s), and rate of interest. Contractor shall pay such reimbursement and interest on the first (1st) day of the month following the City's notice. Notwithstanding any other provision of this Agreement, if ,;ontractor fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, th-3 City may terminate this Agreement upon such breach. Upon such termination, Contractor shall immediately cease use of the Ste or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities. (h) Verification of Coverage Consultant shall furnish the City with a copy of the policy declaration and endorsement page(s), original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant's obligation to provide them. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. (i) Self -Insured Retentions Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City. Q) Insurance Limits TI -e limits of insurance described herein shall not limit the liability of the Contractor and Contractor's officers, employees, agents, re:)r=sentatives or subcontractors. Contractor's obligation to defend, indemnify and hold the City and its officers, officials, employees, agents and volunteers harmless under the provisions of this paragraph is not limited to or restricted by any requirement in the Agreement for Contractor to procure and maintain a policy of insurance. (k) Sub-nontractors Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City is an additional insured on insurance required from subcontractors (1) Quailified Insurer s All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of Cali-'ornia which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City. Non -admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insu-ers (LESLI list) and otherwise meet City requirements. Fage 2 1 of 2 pages I Risk: rev. 8/16/2023 RESOLUTION NO. 2023-179 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDED AND RESTATED FRANCHISE AGREEMENT WITH USA WASTE SERVICE OF CALIFORNIA, INC., DBA CENTRAL VALLEY WASTE SERVICES, FOR SOLID WASTE COLLECTION, RECYCLING, AND ORGANIC WASTE COLLECTION AND PROCESSING SERVICES IN THE CITY OF LODI WHEREAS, USA Waste Service of California, Inc., dba Central Valley Waste Services (WM) has provided excellent service with reasonable rates to the City since 1988; and WHEREAS, early in 2022, staff began negotiations with WM on an amended franchise agreement due to new regulations associated with Senate Bill 1383 (SB 1383); and WHEREAS, the new agreement will be effective September 1, 2023, and replaces the existing agreement with a term of seven years with an option to renew at WM discretion for a five-year period at the end of the term. Thereafter, at the City's option, the agreement would be renewable in seven-year increments; and WHEREAS, staff recommends authorizing the City Manager to execute an Amended and Restated Franchise Agreement with USA Waste Service of California, Inc., dba Central Valley Waste Services, for solid waste collection, recycling, and organic waste collection and processing services in the City of Lodi. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute an Amended and Restated Franchise Agreement with USA Waste Service of California, Inc., dba Central Valley Waste Services, for solid waste collection, recycling, and organic waste collection and processing services in the City of Lodi; and BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above -referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary. Dated: August 16, 2023 ------------------------------------------------------------------------ ------------------------------------------------------------------------ I hereby certify that Resolution No. 2023-179 was passed and adopted by the City Council of the City of Lodi in a regular meeting held August 16, 2023 by the following vote: AYES: COUNCIL MEMBERS — Craig, Nakanishi, and Mayor Hothi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Bregman and Yepez ABSTAIN: COUNCIL MEMBERS — None PAMELA M. FARRIS Assistant City Clerk 2023-179 The City of Lodi Public Works Amended and Restated F Service of California, Inc. dba Central Valley waste Services, for Solid Waste Collection, Recycling, and Organics Waste Collection and Processing Services in the City of Lodi Agenda Item H-1 August 16, 2023 dir 9 .. Overview • Contract Timeline • Proposed Contract Terms WM Performance Review • Community Outreach and Education Approved Residential Rate Structure • Proposed Residential Plan • Additional Services • Community Benefits SB 1383 Compliance Recommended Action moa Contract Timeline • June 2001 — Council directed staff to negotiate new agreement • 2002 - New agreement executed to address recycling regulations (AB 939 — 50% diversion goal). Agreement was to expire in 2010. • December 2007 — Council directed staff to negotiate a renewal/new agreement. • 2008 — New agreement executed and began January 1, 2009. Term of agreement was eight years with WM's discretion to extend for an additional 7 years. • 2010 —Addendum to the contract approved giving the City $1 M for Grape Bowl project and WM option to extend additional seven years (through December 31, 2030). • 2015 — WM exercised first option to extend seven years, through December 31, 2023. • 2021 — Staff began negotiations with WM for new agreement to address SB 1383 regulations. • 2022 — WM notified City of intent to exercise additional option to extend seven years, through December 31, 2030. siC? Proposed Contract Terms • Proposed contract term — September 1, 2023 — December 31, 2030 • If not adopted, seven-year extension will be effective January 1, 2024 (through December 31, 2030). • WM Optional five-year extension • One-time option to amortize substantial investment related to SB 1383. • Contract is renewable in seven-year increments thereafter • Mutually agreeable by City and WM 9 .. LsiC� WM Performance Review • Performance review was submitted to the City on July 21, 2021 • Performance review period: 2012 - 2021 • Presented to Council March 15, 2022 • Performance review demonstrated satisfactory service to the City Community Outreach and Education City Council Meetings March 15, 2022 August 9, 2022 January 17, 2023 June 13, 2023 Education Campaign Educational Mailer Social Media Digital Ads Commercial Postcard Educational Videos LNS Newspaper Ads Residential FAQ Grape Line Bus Ads December 2021 July 2022 August 2022 September 2022 Jan 2023 — Apr 2023 February 2023 I:t Upcoming dir Community Outreach and Education In -Person Organics Workshops Lodi Lions Club Boys & Girls Club Lodi Rotary Loel Center Lodi WorkNet Center* Public Library Lodi Farmers Market Sunrise Rotary *Bi -Lingual Presentation Jan 18, 2023 Completed Jan 28, 2023 Completed Feb 16, 2023 Completed Feb 21, 2023 Completed Mar 29, 2023 Completed Apr 16, 2023 Completed May —Aug 2023 Ongoing TBD Upcoming 9 .. moa Approved Residential Rate Structure Proposed Residential Rates • Incentivizes customers to choose appropriately sized carts • Reduces overfilling ■ Reduces trash in roadway / truck fires • Improves recycling contents ■ Improves City's diversion goals *Customer count data retrieved from City of Lodi Weekly Refuse Report - August 7, 2023. siC? Proposed Residential Plan • Customers who currently have 20 gallon service will be upgraded to 35 gallon service and receive a color -compliant carts by March 2024. • Low volume, 35 gallon option still available to ALL customers. • Customers may not have more than one instance of overage and/or contamination. ■ WM may upsize refuse service level. ■ Upgraded refuse service level rate will apply. ■ Customers with no contamination or overage events for 12 months may request to reduce refuse service level. • Continued FREE backyard service available for qualifying residents. ■ Backyard service available for all customers for a fee. • All proposed rates effective September 1, 2023. Ar ►�'3Proposed Residential Plan Proposed Residential Overage and Contamination Monitoring and Enforcement (Required by CalRecycle) Overage —Criteria for Warning/Surcharge Requirement for lid to be closed, 6-10" above water line threshold for overage incident. Loose material left on sides of carts will result in overage incident. Contamination — Criteria for Warning/Surcharge 10% threshold/standard size kitchen bag (13 gallons). City may review a sampling of the audits during the roll-out phase to assist with targeted education. *Beginning January 1, 2023, a customer with two (2) or more combined overage and/or contamination events, WM may increase refuse service level. Customers with no contamination or overage events for 12 months may request to reduce refuse service level. 1_siC� Additional Services • Weekly organics collection and additional routes added beginning on or before March 2024. • 20 gallon customers will receive color -compliant 35 gallon cart at the proposed legacy rate by March 2024. • New carts with color -compliant lids for existing 35, 64, and 96 gallon residents beginning on or before March 2024. • Food scraps and food -soiled paper can be placed in organics carts NOW. • Continued FREE backyard service available for qualifying residents. 9 .. 1_siC� Additional Services • Recycling of out of service carts • Contamination and overage monitoring meeting state requirements. • Additional reporting and route audits. • Additional education and outreach. • Support for City enforcement of clean waste streams. sC? Community Benefits • Annual transfer station voucher good for two yards of disposal FREE • Annual Dollar Dump Day voucher • Annual curbside clean up • Illegal dumping program • Free disposal of leaves during City's annual pick up • Donations to community groups • Four collection events each year for disposal of hazardous and electronic waste LsiC? Community Benefits • Increase existing Street Maintenance Fee by $330,000, for a total annual amount of $1,122,990. • New Downtown Maintenance Fee of $100,000 annually. • Annual payment of $125,000 for City staff. • All annual payments to be increased by the same percentage as WM rates on an annual basis. • One-time administrative fee of $1,000,000 to be paid to the City in four annual payments of $250,000. siC? SIB 1383 Compliance • Weekly organics waste collection service • Color -coded cart lids / labels • Reporting and route audits • Monitoring and Enforcement • Outreach and Education 1_siC� Recommended Action Approve Resolution Authorizing City Manager to Execute Amended and Restated Franchise Agreement with USA Waste Service of California, Inc. dba Central Valley waste Services, for Solid Waste Collection, Recycling, and Organics Waste Collection and Processing Services in the City of Lodi moa Questions?.