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HomeMy WebLinkAboutResolution No. 5863IEEREAB, the City has adopted an Ordinance stipulating that all commercial collectors enter into an Agreement with the City concerning the collection of commercial solid waste in Downey, and WBEREAB, the State has passed a recycling law known as AB 939 which requires cities to reduce the amount of solid waste going to landfills, and 11EEREAS, the City wishes to continue the multi- collector system that exists in Downey. NOW, THEREFORE, be it resolved that the City Council of the City of Downey does hereby approve the form of the Agreement for Integrated Waste Management Services for Commercial Solid Waste attached hereto. ATTEST: RESOLUTION OF TEE CITY COUNCIL OF TEE CITY OF DOWNEY APPROVING TEE FOWL OF THE CITY'S COMMERCIAL SOLID WASTE AGREEMENT BETWEEN COLLECTORS AND TEE CITY OF DOWNEY APPROVED AND ADOPTED this 14th day of February RESOLUTION 1I0. 5863 Za. a i6t4 Mayor / , 1995. i HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of Downey at a regular meeting hereof, held on the 14th day of February , 1995 by the following vote, to wit: AYES: 4 COUNCIL MEMBERS: Lawrence, McCaughan, Boggs, Riley NOES: 0 COUNCIL MEMBERS: None ABSTAINED: 0 COUNCIL MEMBERS: None ABSENT: 1 COUNCIL MEMBERS: Brazelton bl Att. C : oor soli . d2 d C) lllv)��r 9. � ityClerk LAX:81492.9 AGREEMENT BETWEEN THE CITY OF DOWNEY AND [NAME OF CONTRACTOR] FOR INTEGRATED WASTE MANAGEMENT SERVICES FOR COMMERCIAL SOLID WASTE TABLE OF CONTENTS PAGE SECTION 1. GRANT AND ACCEPTANCE OF RIGHT AND PRIVILEGE TO ARRANGE FOR THE COLLECTION OF COMMERCIAL SOLID WASTE AND WAIVER OF RIGHTS 2 A. Grant of Permit 3 B. Acceptance and Waiver 3 C. Self - Haulers and Gardeners 3 SECTION 2. DEFINITIONS 4 A. "AB 939" or "Act" 4 B. "AB 939 Administrative Fee" 4 C. "Bins" or "Commercial Bins" 5 D. "City Limits" 5 E. "Commercial Premises" 5 F. "Commercial Solid Wastes" 5 G. "Commercial Service Recipient" 5 H. "Construction and Demolition Waste" 5 I. "Green Waste" or "Compostables" or "Yard Waste" . . 5 J. "Gross Revenues" 6 K. "Hazardous Waste" 6 L. "Industrial Waste" 6 M. "Multi- Family Residential Bins" 6 N. "Multi- Family Units" 6 O. "Permit" 6 P. "Permittee" 7 Q. "Recyclable Material" 7 R. "Recyclable Solid Waste" 7 S. "Residential Solid Waste" 8 T. "Scavenging" 8 U. "Single Family Residence" or "Single- Family Dwelling" or "Single- Family Unit" 8 SECTION 3. PERMIT AREA 8 SECTION 4. SERVICES PROVIDED BY [NAME OF CONTRACTOR] 8 A. General 8 B. Food Waste Services 8 C. Recycling 8 D. Yard Waste Collection 9 E. Hours of Collection 9 F. Clean Up of Waste Enclosures or Overflowing Bins . 9 SECTION 5. FEES 9 LAX:81492.9 Date of Printing: Janwry 31, 1995 —i- SECTION 6. TERM AND RENEWAL 10 SECTION 7. PERMIT TRANSFER; CITY CONSENT REQUIRED; FEES 10 SECTION 8. ADMINISTRATIVE DISPUTE RESOLUTION 12 A. Notice; Response; Resolution; Appeal 12 1. Notice of Deficiencies; Response 12 2. Review by Director; Notice of Appeal 12 3. Review by City Manager; Appeal 13 B. City Council Hearing 13 C. City Council Determination 14 D. Notice of Appeal to Referee 14 E. Liquidated Damages 15 F. Reservation of Rights by City 15 G. Cumulative Rights 16 SECTION 9. REFERRAL TO REFEREE; HEARING PROCEDURES 16 A. Applicability 17 B. Reference of Dispute .7 1. Procedure for Appointment 17 2. Ex Parte Communications Prohibited 17 3. Cooperation 17 4. Administrative Record; Discovery 17 5. Standards for Decision 18 6. Evidence and Findings 18 7. Remedial Authority 18 8. Stay Pending Entry of Final Judgment 18 9. Allocation of Referee's Costs 18 10. Recovery of Attorney's Fees 19 C. Decision 19 SECTION 10. CITY'S ADDITIONAL REMEDIES 19 SECTION 11. PRIVACY 19 A. Protection Of Privacy 19 B. Mailing Lists Prohibited 19 C. Privacy Rights Cumulative 19 SECTION 12. AAYsAas AND ADVERSE INFORMATION 20 A. Annual Report 20 1. General Information 20 2. Prior Year's Activities 20 3. Recommendations 20 LAX:81492.9 Date of Printing: January 31, 1995 —ii— B. Reporting Adverse Information 20 C. Failure to Report D. City's Review of [Name of Contractor]' Performance E. Costs F. Monthly and Quarterly Reports and Other Information 1. Monthly Reports 2. Quarterly Reports LAX:41492.9 Dote of Printing: Maury 31, 1995 -iii- 20 21 21 21 21 21 a. Recyclable Solid Wastes 21 b. Hazardous Waste Diversion Reports . . . 22 c. Certification 22 3. Submission of Reports 22 4. Monitoring 22 5. City's Right to Request Information 22 6. CERCLA Defense Records 22 G. Inspection and Audit Rights 23 H. Costs 23 SECTION 13. COMPENSATION, RATES AND BILLING 23 SECTION 14. COLLECTION EQUIPMENT 23 A. Collection Vehicles 23 B. Bins 24 C. Name 24 D. Sanitation 24 E. Telephone Number 24 SECTION 15. OWNERSHIP OF COMMERCIAL SOLID WASTE 24 SECTION 16. INDEMNIFICATION AND INSURANCE 24 A. Indemnification of City 24 B. Hazardous Substances Indemnification 25 C. AB 939 Indemnification 26 D. Workers' Compensation Insurance 26 E. Public Liability Insurance 27 F. Evidence of Insurance Coverage; Insurance Repository 28 G. Modification 28 H. Self- Insured Retention 28 I. Reduction of CERCLA and Other Liability. . . .. . . 28 SECTION 17. CASH BOND 29 SECTION 18. [NAME OF CONTRACTOR]'5 BOORS AND RECORDS; AUDITS 30 A. Records 30 B. Accountant's Report 30 C. Audit 30 SECTION 19. SERVICE EXCEPTIONS; HAZARDOUS WASTE NOTIFICATIONS 30 A. Failure to Collect 30 B. Hazardous Waste Inspection and Reporting 30 C. Hazardous Waste Diversion Records 31 SECTION 20. REIMBURSEMENT OF CITY EXPENSES 31 SECTION 21. GENERAL PROVISIONS 31 A. Force Majeure 31 B. Independent Status 32 C. Pavement Damage 32 D. Property Damage 32 E. Law to Govern; Venue 32 F. Fees and Gratuities 32 G. AB 939 32 H. Amendments 33 I. Notices 33 J. Compliance With Laws 34 K. Savings Clause and Entirety 34 L. Exhibits Incorporated 34 M. Joint Drafting 34 N. Non - Discrimination 34 EXHIBIT "A" 37 LAX:81492.9 Date of Printing: January 31, 1995 — iV— i RECITALS: AGREEMENT BETWEEN THE CITY OF DOWNEY AND [NAME OF CONTRACTOR] FOR INTEGRATED WASTE MANAGEMENT SERVICES FOR COMMERCIAL SOLID WASTE This AGREEMENT BETWEEN THE CITY OF DOWNEY AND [NAME OF CONTRACTOR] FOR INTEGRATED WASTE MANAGEMENT SERVICES FOR COMMERCIAL SOLID WASTE ( "Agreement" or "Permit and Agreement ") is entered into this day of , 1995, by and between the CITY OF DOWNEY ( "City ") and [NAME OF CONTRACTOR] ( "Licensed Hauler ") a California Corporation, for the collection, transportation, recycling, composting and disposal of Commercial Solid Waste, including green waste and Recyclable Solid Wastes. 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 and require local agencies to make adequate provisions for solid waste handling within their jurisdictions; and WHEREAS, pursuant to California Public Resources Code § 40059(a)(1), the City Council of the City of Downey has deter- mined and found that the public health, safety and well -being require that permits and agreements be awarded to qualified solid waste enterprises for solid waste collection, transportation, recycling, composting and disposal services in commercial, industrial and multi- family residential areas in the City of Downey; and WHEREAS, the City Council has adopted Ordinance No. 94 -0Q governing Commercial Solid Waste collection; and WHEREAS, City is obligated to protect the public health and safety of the residents of the City of Downey by taking steps to enable solid waste haulers and recyclers to make arrangements for the collection of Commercial Solid Wastes in a manner consistent with the protection of public health and safety, and to do so in a manner that does not burden interstate commerce or favor in -state or local firms nor discriminate in any way against firms with out - of -state affiliations or corporate offices; and WHEREAS, City and [NAME OF CONTRACTOR] are mindful of the provisions of the laws governing the safe collection, transport, recycling and disposal of Commercial Solid Waste, including AB 939, the Resource Conservation and Recovery Act ( "RCRA ") 42 U.S.C. §§ 6901 st seg., and the Comprehensive Environmental Response, Compensation and Liability Act ( "CERCLA "), 42 U.S.C. §§ 9601 gt sea.; and LAX:81492.9 Date of Printing: January 31, 1995 —1— WHEREAS, City and [NAME OF CONTRACTOR] desire to leave no doubts as to their respective roles, and that by entering into this Agreement, City is not thereby becoming a "generator" or an "arranger" as those terms are used in CERCLA § 107(a)(3), and that it is [NAME OF CONTRACTOR], not City, which is "arranging for" the collection, the transport for disposal, composting of Green Waste and the recycling of Recyclable Solid Wastes and Commercial Solid Wastes which may contain consumer products with the characteristics of hazardous substances; and WHEREAS, there are no places within the City limits of the City of Downey where landfills are located, or which are suitable for the siting of a landfill, and therefore Commercial Solid Waste must be exported from the City; and WHEREAS, [NAME OF CONTRACTOR] and not City, will select the land- fill or transformation facility destination of the nonrecyclable waste which [NAME OF CONTRACTOR] will arrange to collect, that City has not, and, by this Permit and Agreement does not, instruct [NAME OF CONTRACTOR] on its collection methods, nor supervise the collection of waste, and nothing in this agreement, or other action of the City shall be construed to bar others from removing waste from containers, nor to place title to such waste in [NAME OF CONTRACTOR] (the parties recognizing that whatever, if any, title [NAME OF CONTRACTOR] may gain to such waste is by operation of state law, and is not the result of this Permit and Agreement); and WHEREAS, the City Council declares its intention to maintain a competitive, multi- hauler system for the collection of Commercial Solid Waste from commercial, industrial and multi - family residential premises within the City; and WHEREAS, [NAME OF CONTRACTOR] has represented and warranted to City that it has the experience, responsibility, and qualifications to conduct recycling programs and to arrange with residents of multi- -- family dwellings and commercial and other entities in the City of Downey for the collection, safe transport, recycling and disposal of Commercial Solid Waste which may inadvertently contain consumer products with the characteristics of hazardous substances, the City Council of the City of Downey determines and finds that the public interest, health, safety and well -being would be served if [NAME OF CONTRACTOR] were to make arrangements with residents and other entities to perform these services for Commercial Solid Waste service recipients. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: SECTION 1. GRANT AND ACCEPTANCE OF RIGHT AND PRIVILEGE TO ARRANGE FOR THE COLLECTION OF COMMERCIAL SOLID WASTE AND WAIVER OF RIGHTS. LAX:81492.9 Date of Printing: January 31, 1995 -2- A. Grant of Permit. The City grants to [NAME OF CONTRACTOR] for the term of this Permit and Agreement (including all extensions or renewals), the right and privilege to arrange for the collection, transportation, recycling, composting and disposal of Commercial Solid Waste (including construction and demolition waste in temporary roll -off and other Commercial Bins throughout the City) generated at or accumulated on Commercial Premises within the City of Downey as its boundaries are now constituted or may hereaf- ter be amended, pursuant to the City of Downey Municipal Code and California Public Resources Code § 40059(a)(1). (Collection of single - family residential solid waste and Recyclable Solid Wastes generated or accumulated at single - family residential premises is the subject of a separate agreement.) City reserves the right to enter into agreements with other parties for the conduct of other solid waste and recycling services. B. Acceptance and Waiver. [NAME OF CONTRACTOR] accepts and agrees to be bound by and comply with all the requirements of this Permit and Agreement. Whatever, if any, continuation rights [NAME OF CONTRACTOR] may have pursuant to Public Resources Code Sections 49520 -21 are subject to [NAME OF CONTRACTOR]'s satisfactory performance of services pursuant to this Permit and Agreement. [NAME OF CONTRACTOR]'s rights to serve any part of the City as its boundaries exist as of the date of execution of this Agreement under any prior grant of franchise, contract, license or permit issued or granted by City are replaced by the rights granted by this Permit and Agreement, with respect to the waste stream covered by this Permit and Agreement. This Permit and Agreement is subject to all of the rights, if any, which may be held by any other solid waste enterprise, if any, holding rights pursuant to Public Resources Code § 49520 or other laws. C. Belf- Haulers and Gardeners. This Permit and Agreement shall not prohibit persons who produce or generate Commercial Solid Waste, or persons who own or who are in charge of day -to -day activities on premises upon which Commercial Solid Waste has been produced, generated or accumulated, from : (1) selling their Recyclable Materials or (2) donating their Recyclable Materials to a nonprofit charity registered with the Attorney General of the State of California; provided, however, that in both instances: 1) The person must segregate on those premises, by waste type, the Recyclable Materials to be sold or donated, and 2) The person may not pay the buyer or the donee any consideration for collecting, processing or trans- porting such Recyclable Materials. A person who simply receives a discount or reduction in the collection, disposal and /or recycling service rates for its unsegregated or segregated Commercial Solid Waste shall LAX:81492.9 Date of Printing: January 31, 1995 -3- not be deemed to be selling or donating Recyclable Materials for purposes of this exception. D. City reserves the right to enter into agreements with other parties for the conduct of services not covered by this Permit and Agreement. E. City reserves whatever, if any, right may be granted by Congress to exercise flow control (i.e., the right to select landfill sites, transformation facilities and Materials Recovery Facilities to which the Commercial Solid Waste and Recyclable Solid Wastes are taken) over the Commercial Solid Waste to be collected pursuant to this Permit and Agreement. In the event City exercises flow control, and directs [NAME OF CONTRACTOR] to transport Commercial Solid Waste to a landfill or other disposal facility, City and [NAME OF CONTRACTOR] agree to use their best efforts to obtain indemnification from CERCLA and related claims from the operator of the landfill or other destination to which Commercial Solid Waste collected pursuant to this Permit and Agreement is taken for disposal. In the event City requires [NAME OF CONTRACTOR] to utilize a landfill or other disposal facility not owned or operated by [NAME OF CONTRACTOR] or an affiliate of [NAME OF CONTRACTOR], [NAME OF CONTRACTOR] shall be relieved of its liability with respect to the matters addressed in SECTION 16.B of this Agreement with respect to the Commercial Solid Waste delivered to a disposal facility designated by City. In addition [NAME OF CONTRACTOR] shall be relieved of its duties under SECTION 16.B "AB 939 Indemnification" to the extent that [NAME OF CONTRACTOR]' ability to meet the diversion goals is adversely affected by City's selection of a disposal facility. SECTION 2. DEFINITIONS. Whenever any term used in this Permit and Agreement has been defined by the Downey Municipal Code or Division 30, Part 1, Chapter 2 of the California Public Resources Code, the definitions in the Municipal Code or Public Resources Code shall apply unless the term is otherwise defined in this Agreement. LAX:81492.9 Date of Printing: January 31, 1995 -4- A. "AB 939" or "Act" means the California Integrated Waste Management Act of 1989, codified in part at Public Resources Code §§ 40,000 gt. sea., as it may be amended from time to time, and as implemented by the regulations of the California Integrated Waste Management Board. B. "AB 939 Administrative Fee" means the fee or assessment set by the City which is intended to offset the City's expense in administering this Agreement, the expenses of administering the AB 939 program for the Commercial Solid Waste stream, AB 939 reporting requirements, review and preparation of Solid Waste Generation Studies, review of and preparation of changes to the City's Source Reduction and Recycling Element and other expenses. Any fee or assessment imposed under this Agreement shall be approved by the City Council by Resolution. C. "Bins" or "Commercial Bins" means Bins provided by a solid waste enterprise permitted, licensed, franchised or otherwise approved by the City of Downey to collect solid waste in the City. Commercial Bins are usually three (3) cubic yards or greater capacity, provided for the temporary accumulation and collection of Commercial Solid Waste, Recyclable Solid Wastes, or Green Waste, placed by a Collector at Commercial Premises for the collection of Commercial Solid Waste and charged at commercial rates. D. "City Limits" means the boundaries of the City together with all amendments and changes thereto, which boundaries are shown by maps incorporated herein by reference and which are on file in the office of the City Clerk. E. "Commercial Premises" means all premises in the City, other than single - family residential premises, where Commercial Solid Wastes are generated or accumulated. The term "Commercial Premises" includes, but is not limited to, stores; offices; federal, state, county and local governmental institutions, including, but not limited to schools, school districts, special districts and water districts (to the extent permitted by law); restaurants; Multi - Family Units; rooming houses; mobile home parks; hotels; motels; offices; manufacturing, processing, or assembling shops, plants or other industrial facilities; and hospitals, clinics and nursing homes (non - medical waste only). P. "Commercial Solid Wastes" means all types of solid waste, including Green Waste and Recyclable Solid Waste, generated or accumulated at Commercial Premises. "Commercial Solid Waste" does not include Single- Family Residential Solid Waste. G. "Commercial service Recipient" means the owner or other person in charge of the day -to -day activities of a Commercial Premises within the City. E. "Construction and Demolition Waste" means discarded building materials, recyclable construction and demolition materials, packaging, plaster, rock or brick, drywall, wood, cement and rubble resulting from construction, remodeling, repair and demolition operations, but does not include asbestos - containing materials. The collection and disposal of Construction and Demolition Waste from residential premises through the use of Commercial Bins is within the scope of this Permit and Agreement. I. "Green Wasts" or "Compostables" or "Yard Waste" means a form of _Commercial Solid Waste composed of leaves, grass clippings, brush, clean pieces of wood no longer than twenty -four inches long, branches and other forms of organic materials generated from landscapes or gardens, separated from other Commercial Solid Waste. LAX:81492.9 Date of Printing: January 31, 1995 -5- "Green Waste" does not include stumps or branches in bundles exceeding eighteen (18) inches in diameter or four (4) feet in length. J. ' Revenues' means any and all revenue or compensation in any form derived directly or indirectly by the Permittee for Commercial Bin Service pursuant to the Agreement, according to Generally Accepted Accounting Principles. "Gross Revenues" includes revenues or compensation in any form derived directly or indirectly by affiliates, subsidiaries, parent companies or other affiliates of the Permittee pursuant to this Agreement. N. "Hazardous Waste" means any substances, materials, wastes or mixture of wastes defined as "hazardous substances" or "hazardous wastes" pursuant to the Resource Conservation and Recovery Act ( "RCRA "), 42 U.S.C. §§ 6901 gt sea., the Comprehensive Environmental Response, Compensation and Liability Act ( "CERCLA "), 42 U.S.C. §§ 9601 et seg., and all future amendments to either of them, or as defined by the California Integrated Waste Management Board or other state agency with jurisdiction. Where there is a conflict in the definitions employed by two or more agencies having jurisdiction over hazardous or solid waste, the term "Hazardous Waste" shall be construed to have the broader, more encompassing definition. L. "Industrial Waste means all solid waste and semi -solid waste which results from industrial processes and manufacturing operations. "Industrial Waste" is part of the Commercial Solid Waste stream and is included within the scope of this Agreement. M. "Multi- Family Residential Bins" means Commercial Bins utilized for the temporary accumulation and collection of Commercial Solid Waste from multi- family units. "Multi- Family Residential Bins" are usually two (2) or three (3) cubic yards, or larger, in size. N. "Multi - Family Units" means residential units such as apart- ments, condominiums or townhomes of six or more residential units each of which has separate cooking and bathing facilities, which utilize Commercial Bins, as defined in this Agreement, for the collection of Commercial Solid Waste. The term "Multi- Family Units" does not include hotels, motels, nursing homes or convalescent centers, barracks, dormitories or other similar places using Commercial Bins. LAX:81492.9 Date of Printing: January 31, 1995 -6- O. "Ferait" means the written authority by City evidenced by this Agreement granting a qualified refuse collector the right and privilege to: (1) arrange for the collection of, and to collect refuse, rubbish and other forms of solid waste, (2) to transport to landfill or other licensed disposal facilities as determined by [NAME OF CONTRACTOR] unless otherwise specified by City, and (3) to recycle from collected refuse, compostables and recyclables, all 1 Commercial Solid Waste, including Green Waste and Recyclable Solid Waste, generated and /or accumulated within the City. P. "Parmittsa" means [NAME OF CONTRACTOR], the entity authorized by the City Council by this Permit and Agreement to provide Commercial Solid Waste services in the City. Q. "Recyclable Material" means a commodity which has value and which may be sold for compensation, or given away, but which is not discarded into the commercial waste stream. A Recyclable Material which is discarded into the commercial waste stream loses its character as a Recyclable Material and becomes Commercial Solid Waste, subject to this Agreement. R. "Recyclable Solid Wastes means recyclable items which have been source - separated before having been discarded into the Commercial Solid Waste stream. "Recyclable Solid Waste" is a part of the Commercial Solid Waste stream which can be reused or processed into a form suitable for reuse through reprocessing or remanufacture, consistent with the requirements of AB 939. As of the date of execution of this Agreement, Recyclable Solid Waste includes: 1. Aluminum cans; 2. Glass jars and bottles; 3. Steel, bi -metal and tin cans; 4. Plastic soda pop bottles and other Type #1 containers (PET - polyethylene terephthaleate); 5. Plastic milk and water jugs and other Type #2 contain- ers (HDPE -high density polyethylene); 6. Type #3 plastic containers (V- polyvinyl chloride); 7. Type #4 plastic containers (LDPE -low density polyethylene); 8. Type #5 plastic containers (PP- polypropylene); 9. Type #6 plastic containers (PS- polystyrene); 10. Type #7 plastic containers (other and commingled); 11. Plastic bags, shrink wrap, plastic tools and toys and other plastic materials (if readily identifiable as being recyclable); 12. Juice boxes and milk cartons (Aseptic Packaging, Tetra Pack, and Waxed Cardboard); 13. Scrap metal, coat hangers and metal foil; 14. Newspapers; 15. Mixed paper (e.g., ledger, computer, junk mail, maga- zines, paperback books, cereal boxes, envelopes, paper shopping bags and non - metallic wrapping paper); 16. Corrugated cardboard; 17. Wood; 18. Liquid cell (automotive type) batteries; 19. Latex paint (if delivered to a drop -off center); and 20. Fluorescent tubes. LAX:81492.9 pate of Printing: January 31, 1995 — Recyclable Solid Wastes shall include such other materials as agreed by City and [NAME OF CONTRACTOR]. 8. "Residential Solid Waste" means all types of solid waste, in the residential solid waste stream. Multi - Family Residential Solid Waste is covered by this Agreement. Single- Family Residential Solid Waste is not covered by this Agreement, but is covered by a separate Residential Agreement. T. "Scavenging" means the unauthorized removal of Recyclable Solid Wastes. Scavenging is prohibited by Public Resources Code § 41950. U. "Single Family Residence" or "single - Family Dwelling" or "Single- Family Unit" generally means a detached building, or each unit of multi - family dwelling of five or fewer units, which utilizes one or more single family Residential Solid Waste Containers, (i.e., carts or cans) and not Commercial Bins. Single Family Dwellings, which do not utilize Commercial Bins, as defined in this Agreement, for the collection of solid waste, are not covered by this Agreement. SECTION 3. PERMIT AREA. The service area covered by this Permit and Agreement shall be all Commercial and Multi - Family Premises within the City limits. SECTION 4. SERVICES PROVIDED BY [NAME OF CONTRACTOR]. A. General. In order to protect the public health and safety, arrangements made by [NAME OF CONTRACTOR] with its service recipients in the City of Downey for the collection of Commercial Solid Wastes not defined in this Agreement as Recyclable Solid Wastes, shall provide for the collection of all of such waste generated or accumulated within the City by its Commercial Solid Waste Service Recipients at least once per week, or more frequently as [NAME OF CONTRACTOR] and its Service Recipients may agree. [NAME OF CONTRACTOR] agrees to consider City's routing suggestions, as City's air quality Traffic Demand Management Plan may be affected by routes and scheduling. LAX:81492.9 Date of Printing: January 31, 1995 -8- B. Food Waste Services. [NAME OF CONTRACTOR] shall collect and remove Commercial Solid Waste placed in Commercial Solid Waste Containers at commercial food service and food preparation establishments a minimum of two times per week. C. Recycling. [NAME OF CONTRACTOR] shall deliver a Recycling Container to each of its Commercial Solid Waste service recipients who requests one, to be used exclusively for the temporary accumulation, separation and collection of Recyclable Solid Wastes. [NAME OF CONTRACTOR] shall provide additional recycling containers, as needed, to all of its service recipients who request them. [NAME OF CONTRACTOR] shall collect and remove all Recyclable Solid Wastes placed in [NAME OF CONTRACTOR]'s Recyclable Solid Wastes Containers. [NAME OF CONTRACTOR] agrees to use its best efforts to process Recyclable 'Solid Wastes through a Materials Recovery Facility in order to maximize the diversion of Commercial Solid Waste from landfilling. [NAME OF CONTRACTOR] shall collect tele- phone books from service recipients pursuant to this Agreement and transport them to a recycler. [NAME OF CONTRACTOR] agrees to market all Recyclable Solid Waste materials collected pursuant to this Permit and Agreement at fair market value, if a fair market value has been established in the marketplace at the time of marketing. D. Yard Waste Collection. [NAME OF CONTRACTOR] shall collect and remove all Green Waste placed in Green Waste containers provided by [NAME OF CONTRACTOR] or in bags put out for collection at a location acceptable to the service recipient and [NAME OF CONTRACTOR]. [NAME OF CONTRACTOR] shall provide its service recipients with tags, ties or other means of identifying Green Waste Containers and bags. The frequency of collection of Green Waste placed in Green Waste containers provided by [NAME OF CONTRACTOR] shall be determined by agreement between [NAME OF CONTRACTOR] and the service recipient. E. Hours of Collection. [NAME OF CONTRACTOR], in order to protect the peace and quiet of residents, will provide collections in commercial areas where noise from collection vehicles may be audible in residential areas not before 6:00 a.m. or after 6:00 p.m., Monday through Friday, excluding holidays, or before 8:00 a.m. or after 6:00 p.m. on Saturdays. 7. Clean Up of Waste Enclosures or Overflowing Bins. [NAME OF CONTRACTOR] shall exercise all reasonable care and diligence in collecting solid waste, and shall, at [NAME OF CONTRACTOR]s' sole expense, clean all solid waste spilled during the collection process. [NAME OF CONTRACTOR] shall clean up all overflowing bins or waste enclosures within twenty -four (24) hours of notification by City. [NAME OF CONTRACTOR] may charge the Service Recipient for the actual costs of clean up, unless the overflowing condition resulted from [NAME OF CONTRACTOR]'s failure to empty the bin during the course of the regular collection schedule. SECTION S. 7118. To compensate City for damage to its streets, sidewalks, curbs and gutters and other infrastructure resulting from [NAME OF CONTRACTOR] 'S activities, [NAME OF CONTRACTOR] shall remit to City, on or before each February 1st, May 1st, August 1st and November 1st that this Permit and Agreement remains in effect, a Fee equal to five per cent (5 %) of permittee's Gross Revenue collected for the previous calendar quarter, or SEVEN HUNDRED AND FIFTY DOLLARS ($750.00), whichever is greater. LAX:81492.9 Date of Printing: January 31, 1995 — SECTION 6. TERM AND RENEWAL. A. Permits pursuant to the provisions of this Agreement shall expire on December 31st of the year in which the Permit was granted. Permits may, at the City's option, be renewed if [NAME OF CONTRACTOR] submits an application for renewal on a form prescribed by the Director of Public Works at least thirty days (30) prior to expiration of the Permit then in effect. Any application for renewal shall be accompanied by the fee specified by this Agreement or such a fee as determined by Resolution of the City Council from time to time hereafter and copies of insurance policies or endorsements evidencing the required insurance requirements. B. The Director of Public Works shall renew the Permit if, during the term of the then current Permit, [NAME OF CONTRACTOR] has faithfully complied with the terms and conditions of this Agreement, the regulations adopted by the Director of Public Works, and any conditions imposed upon the Permit pursuant to Ordinance No. @@ . The term during which collection services are to be provided pursuant to this Permit shall be effective January 1, _ _ , and continue for twelve months (12) unless earlier terminated for default, by agreement of the Parties to discontinue operations within the City, or by [NAME OF CONTRACTOR]'s surrender of his Permit to City. Upon execution of this Agreement, any previously existing Permits between the parties shall have no further force and effect. C. Certain provisions of this Agreement require [NAME OF CONTRACTOR] to provide services (e.g., insurance policy repository, access to landfill destination information, insurance and indemnification) beyond the period during which collection services are to be provided pursuant to this Agreement. SECTION 7. PERMIT TRANSFER; CITY CONSENT REQUIRED; FEES. A. The rights granted by this Permit and Agreement shall not be assigned, sold, hypothecated, sublet or otherwise transferred, nor shall any of the rights or privileges herein be hypothecated, sublet, assigned, sold or otherwise transferred, either in whole or in part, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person, either by act of [NAME OF CONTRACTOR] or by operation of law, without the prior written consent of the City expressed by resolution. Any attempt by [NAME OF CONTRACTOR] to transfer this Agreement without the consent of City shall be void. For purposes of this Agreement, any dissolution, merger, consolidation or other reorganization of [NAME OF CONTRACTOR] shall be deemed a transfer of this Agreement. For purposes of this SECTION, a change of corporate name shall not be deemed to be a transfer. B. The City shall not unreasonably withhold its consent to a transfer of this Agreement. The City may impose reasonable LAX:81492.9 Date of Printing: January 31, 1995 —10— conditions of approval on a transfer. The applicant for the transfer shall demonstrate to the City's satisfaction that it has the operational and financial ability to carry out the obligations of the Agreement. C. Any application for a transfer shall be made in a manner prescribed by the City's Director of Public Works. The application shall include a Transfer Application Fee in an amount to be set by City, by Resolution of the Council. The Transfer Application Fee is intended to offset the City's anticipated costs of all reasonable and customary direct and indirect administrative expenses, including consultants and attorneys, necessary to analyze the application. [NAME OF CONTRACTOR] shall reimburse the City for all reasonable consultants', attorneys' and staff costs directly related to the City's consideration of the application for transfer not offset by the Transfer Application Fee, whether or not the City approves the application for transfer. City's request for reimbursement under this SECTION shall be supported with evidence of the expense or cost incurred. [NAME OF CONTRACTOR] shall reimburse City within thirty (30) days of receipt of City's request for reimbursement. D. Notwithstanding the above, the [NAME OF CONTRACTOR] shall be entitled to pledge, encumber, or grant any security interest in this Agreement provided that [NAME OF CONTRACTOR] shall first notify and obtain City consent to such transaction, subject to the following conditions: 1. Any consent so granted by City shall not be deemed a consent to the exercise by such pledgee, encumbrancer or secured party of any rights of the holder under this Agreement unless so noted by the City. 2. Any consent so granted by City shall not be deemed a consent to any subsequent pledge, encumbrance or grant of a severity interest. Any such subsequent pledge, encumbrance or grant of a severity interest shall be deemed an assignment of the Agreement within the meaning of this SECTION, and shall be void without the prior written consent of the City expressed by resolution. 3. The pledges, encumbrancer, or secured party shall have executed and delivered to City an instrument in writing agreeing to be bound by the provisions of this Agreement. E. Any change in control of [NAME OF CONTRACTOR] occurring without prior City approval shall constitute a material breach of this Agreement. LAX:81492.9 Data of Printing: January 31, 1995 —11— SECTION 8. ADMINISTRATIVE DISPUTE RESOLUTION. A. Notice; Response; Resolution; Appeal. 1. Notice of Deficiencies; Response. If City's Director of Public Works, or the Director's designee (collectively, the "Director ") determines that [NAME OF CONTRACTOR]' performance pursuant to this Agreement may not be in conformity with the provisions of this Agreement, the California Integrated Waste Management Act (including, but not limited to, requirements for ^ diversion, source reduction and recycling as to the commercial solid waste service recipients serviced by [NAME OF CONTRACTOR] pursuant to this Agreement) or any other applicable federal, state or local law or regulation, including but not limited to, the laws governing transfer, storage �r disposal of solid and Hazardous Waste, the Director may advise [NAME OF CONTRACTOR] in writing of such suspected deficiencies, specifying the deficiency in reasonable detail. The Director, in any written Notification of Deficiencies, shall set a reasonable time within which [NAME OF CONTRACTOR] is to respond. Unless the circumstances necessitate correction and response within a shorter period of time, [NAME OF CONTRACTOR] shall respond to the written Notification of Deficiencies within thirty (30) days from the receipt by [NAME OF CONTRACTOR] of such written notice. [NAME OF CONTRACTOR] may request additional time to correct deficiencies. City shall approve reasonable requests for additional time. 2. Review by Director: Notice of Appeal. a. The Director shall review any written response from [NAME OF CONTRACTOR] and decide the matter. If the Director's decision is adverse to [NAME OF CONTRACTOR], the Director may order remedial actions to cure any deficiencies, or invoke any other remedy in accordance with this Agreement and, in the event the Director determines that there has been a material breach and that termination is the appropriate remedy, terminate the Agreement. The Director shall promptly inform [NAME OF CONTRACTOR], of the Director's decision. In the event the decision is adverse to [NAME OF CONTRACTOR], the Director shall inform [NAME OF CONTRACTOR], in writing, of the specific facts found and evidence relied on, and the legal basis in provisions of the Agreement or other laws for the Director's decision and any remedial action taken or ordered. An adverse decision by the Director shall be final and binding on [NAME OF CONTRACTOR] unless [NAME OF CONTRACTOR] files a "Notice of Appeal" with the City Clerk (with copies to the City Manager and City Attorney) within 30 days of receipt of the notification of the adverse decision by the Director. b. In any "Notice of Appeal" [NAME OF CONTRACTOR] shall state its factual contentions and include any relevant affidavits, documents, photographs and videotapes which [NAME OF CONTRACTOR] may choose to submit. In addition, [NAME OF LAX:81492.9 Date of Printing: January 31, 1995 -12- CONTRACTOR] shall include its legal contentions, citing provisions of the Agreement or other laws to support its contentions. 3. Review by City Manager: Appeal. a. Within thirty (30) days of receipt by the City Clerk of a Notice of Appeal, the City Manager shall decide the matter: If the City Manager's decision is adverse to [NAME OF CONTRACTOR], the City Manager may order remedial actions to cure any deficiencies, or invoke any other remedy in accordance with this Agreement and, in the event the City Manager determines that there has been a material breach and that termination is the appropriate remedy, terminate the Agreement. In addition to the foregoing actions, the City Manager may refer the matter to the City Council for proceedings in accordance with SECTIONS 8.B and 8.C, below, or refer the matter directly to a referee as provided in SECTION 9, below. The City Manager shall promptly inform [NAME OF CONTRACTOR] of the City Manager's decision. In the event the decision is adverse to [NAME OF CONTRACTOR] , the City Manager shall inform [NAME OF CONTRACTOR], in writing, of the specific facts found and evidence relied on, and the legal basis in provisions of the Agreement or other laws for the City Manager's decision and any remedial action taken or ordered. b. An adverse decision by the City Manager shall be final and binding unless [NAME OF CONTRACTOR] files a "Notice of Appeal to the City Council" with the City Clerk (and serves a copy, by mail, on the City Manager and the City Attorney) within 30 days of receipt of the decision of the City Manager. A "Notice of Appeal to the City Council" shall state the factual basis and all legal contentions and shall include all relevant evidence, including affidavits, documents, photographs and videotapes, which [NAME OF CONTRACTOR] may choose to submit. B. City Council Hearing. If a matter is referred by the City Manager to the City Council, or an adverse decision of the City Manager is appealed to the City Council by [NAME OF CONTRACTOR], the City Council will set the matter for an administrative hearing and act on the matter, or refer the matter to a referee as provided in SECTION 9, below. If the City Council elects to hear the matter, the City Clerk shall give [NAME OF CONTRACTOR] fourteen (14) days written notice of the time and place of the administrative hearing. At the hearing, the City Council shall consider the administrative record, consisting of the following: 1. A Staff Report by the City Manager, summarizing the proceedings to date and outlining the City Council's options. 2. The Director's written Notification of Deficiencies; 3. [NAME OF CONTRACTOR]' response to the Notification of Deficiencies; LAX:81492.9 Data of Printing: January 31, 1995 — 4. The Director's written notification to [NAME OF CONTRACTOR] of adverse decision; 5. [NAME OF CONTRACTOR]' Notice of Appeal 6. The City Manager's written notification to [NAME OF CONTRACTOR] of adverse decision; and 7. The Notice of Appeal to the City Council. No new legal issues may be raised, or new evidence submitted by [NAME OF CONTRACTOR] or City, at this or at any further point in the proceedings, absent a showing of good cause. [NAME OF CONTRACTOR]' representatives and other interested persons shall have a reasonable opportunity to be heard. C. City Council Determination. Based on the administrative record, the Council shall determine by resolution whether the decision or order of the City Manager should be upheld. A tie vote of the City Council shall be regarded as upholding the decision of the City Manager. If, based upon the administrative record, the City Council determines that the performance of [NAME OF CONTRACTOR] is in breach of any term of this Agreement or any provision of any applicable federal, state or local statute or regulation, the City Council, in the exercise of its discretion, may order [NAME OF CONTRACTOR] to take remedial actions to cure the breach or impose any other remedy in accordance with this Agreement. The City Council may not terminate the Agreement unless it determines that [NAME OF CONTRACTOR] is in material breach of a material term of this Agreement or any material provision of any applicable federal, state or local statute or regulation. [NAME OF CONTRACTOR]' performance under the Agreement is not excused during the period of time prior to a final determination as to whether or not [NAME OF CONTRACTOR] performance is in material breach of this Agreement, or the time set by City for [NAME OF CONTRACTOR] to discontinue a portion or all of its services pursuant to this Agreement. The decision or order of the City Council shall be final and binding unless [NAME OF CONTRACTOR] files a "Notice of Appeal to Referee" with the City Clerk (and serves copies, by mail, on the City Manager and the City Attorney) within 10 business days of receipt of the decision or order of the City Council. The execution of City's remedies shall be stayed until [NAME OF CONTRACTOR] has exhausted its appeals under SECTIONS 8 and 9 of this Agreement. D. Notice of Appeal to Referee. Except as otherwise provided in this Agreement, [NAME OF CONTRACTOR] may appeal any decision, order or action by the City Council or City Manager under this SECTION 8 as provided in SECTION 9, below, by filing a Notice of Appeal to Referee with the City Clerk within ten (10) days of receipt of the decision by the City Manager or City Council and following the procedures set forth in SECTION 9, below. A decision of the City Manager to refer a matter to the City Council or, in the alternative, directly to a referee may not be appealed. LAX:81492.9 Date of Printing: January 31, 1995 -14- N. Liquidated Damages. 1. The City finds and [NAME OF CONTRACTOR] agrees that as of the time of the execution of this Agreement, except as provided in this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which will be incurred by the City as a result of a material breach by [NAME OF CONTRAC- TOR] of its obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration and deprivation of the benefits of this Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that services might be available at substantially lower costs than alternative services, and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. 2. Accordingly, the City Council may, in its discretion, assess liquidated damages not to exceed the sum of ONE HUNDRED DOLLARS ($100.00) per day, for each calendar day that [NAME OF CONTRACTOR] is in material breach of this Agreement. The amount of the liquidated damages shall be increased by the past year's annual percentage January -to- January change in the Consumer Price Index for all Urban Consumers (National CPI -U) on the anniversary of this Agreement. 3. The City finds, and [NAME OF CONTRACTOR] acknowledges and agrees, that the above- described liquidated damages provisions represent a reasonable sum in light of all of the circumstances. Said liquidated damages sums shall be applicable to each calendar day during which [NAME OF CONTRACTOR] has been found by the City Council to be in material breach of material provisions of this Agreement. [NAME OF CONTRACTOR] shall pay any liquidated damages assessed by the City Council within ten (10) working days after they are assessed. If they are not paid within the ten working day period, the City may, in addition to any other remedies, order the termination of the Permit granted by this Agreement. V. Reservation of Rights by City. City further reserves the right to terminate this Agreement or impose liquidated damages in the event of any material breach of this Agreement, including, but not limited to, any of the following: 1. If [NAME OF CONTRACTOR] practices, or attempts to prac- tice, any fraud or deceit upon the City, or practiced any fraud or LAX:81492.9 Data of Printing: January 31, 1995 — deceit or made any intentional misrepresentations in the negotia- tions which preceded the execution of this Agreement; 2. If [NAME OF CONTRACTOR] becomes insolvent or unable or unwilling to pay its debts, or upon listing of an order for relief in favor of [NAME OF CONTRACTOR] in a bankruptcy proceeding; 3. If [NAME OF CONTRACTOR] fails to provide, or maintain in full force and effect, the workers compensation, liability and indemnification coverage as required by this Agreement; 4. If [NAME OF CONTRACTOR] violates any orders or rulings of any regulatory body having jurisdiction over [NAME OF CONTRAC- TOR] relative to this Agreement, in any material manner, provided that [NAME OF CONTRACTOR] may contest any such orders or rulings by appropriate proceedings conducted in good faith, in which case no breach of this Agreement shall be deemed to have occurred until a final decision adverse to [NAME OF CONTRACTOR] is entered; 5. If [NAME OF CONTRACTOR] ceases to provide collection service as required under this Agreement over all or a substantial portion of its Permit Area for a period of seven (7) calendar days or more, for any reason within the control of [NAME OF CONTRACTOR]; 6. If [NAME OF CONTRACTOR] fails to make any payments re- quired under this Agreement or refuses to provide City with required information, reports or test results in a timely manner as provided in this Agreement; 7. Any other act or omission by [NAME OF CONTRACTOR] which materially violates the terms, conditions or requirements of this Agreement and which is not corrected or remedied within the time set forth in the written Notification of Deficiencies or if [NAME OF CONTRACTOR] cannot reasonably correct or remedy the breach within the time set forth in such notice, if [NAME OF CONTRACTOR] should fail to commence to correct or remedy such alleged deficiencies within the time set forth in such notice and diligently effect such correction or remedy thereafter. G. Cumulative Rights. City's rights of termination and to impose liquidated damages are in addition to any other rights of City upon a failure of [NAME OF CONTRACTOR] to perform its obligations under this Agreement. SECTION 9. REFERRAL TO REFEREE; REARING PROCEDURES. Either party to this Agreement at any time after exhaustion of administrative remedies, and following the appeal procedure set forth in SECTION 8, if applicable, may refer a disputed matter for resolution under this SECTION 9 in the following manner. LAX:81492.9 Date of Printing: January 31, 1995 - 1 6- 1 A. Applicability. If either the City Manager or the City Council refers a matter to a referee, or [NAME OF CONTRACTOR] appeals or refers a matter to 'a referee, the provisions of this SECTION 9 shall apply in order to obtain prompt and expeditious resolution of any and all disputes arising out of this Agreement. B. Reference of Dispute. Any dispute seeking damages and any dispute seeking equitable relief, such as but not limited to specific enforcement of any provision hereof, shall be heard and determined by a referee pursuant to California Code of Civil Procedure §§ 638 - 645.1. The venue of any proceeding hereunder shall be in Los Angeles County, California. 1. Procedure for Appointment. The party seeking to resolve the dispute shall file in court and serve on the other party a complaint describing the matters in dispute. Service of the complaint shall be as prescribed by law. Within not more than fifteen (15) business days after the date of service, the parties shall apply to the Judicial Arbitration and Mediation Service ( "JAMS") of Los Angeles County to nominate a minimum of five prospective referees. If the parties are unable to agree on a referee from the JAMS panel within ten (10) business days after written request to do so by either party, then the parties, starting with [NAME OF CONTRACTOR], shall strike one prospective referee at a time until only one referee remains. 2. Ex Parte Communications Prohibited. Neither party may communicate separately with the referee after the referee has been selected. All subsequent communications between a party and a referee shall be simultaneously delivered to the other party. This provision shall not apply to communications made to schedule a hearing or request a continuance. 3. Cooperation. The parties shall diligently cooperate with one another and the referee and shall perform such acts as may be necessary to obtain a prompt and expeditious resolution of the dispute. If either party refuses to diligently cooperate, and the other party, after first giving notice of its intent to rely on the provisions of this SECTION, incurs additional expenses or attorneys' fees and costs solely as a result of such failure to diligently cooperate, or incurs expenses or attorneys fees and costs as a result of the other party's violation of Code of Civil Procedure § 128.5, the referee may award such additional expenses and attorneys' fee, and costs to the party giving such notice, even if such party is not the prevailing party in the dispute. 4. Administrative Record; Discovery. The record before the referee shall be limited to the administrative record presented to the City Council (or City Manager, if the matter was referred by the Manager to the referee). Only if a party shows good cause may additional discovery be conducted, in which case, the referee shall set a discovery schedule. Disputes concerning the scope of LAX:81492.9 Date of Printing: January 31, 1995 -17- document production and enforcement of document requests shall be subject to agreement by the parties, or if agreement is not reached within twenty (20) days of a document request, then by disposition by order of the referee. Any document request shall be subject to the proprietary rights and rights of privilege of the parties, and the referee shall adopt procedures to protect such rights. Except as may be agreed by the parties, or ordered by the referee, no other form of pretrial discovery shall be available to the parties. The referee shall schedule the matter for hearing within 60 days of filing, unless City and [NAME OF CONTRACTOR] agree otherwise, or unless the referee shall determine otherwise. 5. Standards for Decision. The provisions of California Code of Civil Procedure, §§ 640, 641, 642, 643, 644 and 645 shall be applicable to dispute resolution by a referee hereunder. In an effort to clarify and amplify the provisions of California Code of Civil Procedure, §§ 644 and 645, the parties agree that the referee shall decide issues of fact and law submitted by the parties for decision in the same manner as required for a trial by court as set forth in California Code of Civil Procedure, §§ 631.8 and 632, and California Rules of Court, Rule 232. The referee shall try and decide the dispute according to all of the substantive and procedural law of the state of California, unless the parties stipulate to the contrary. 6. Evidence and Findings. The referee shall consider the administrative record and only such other relevant evidence as to which the referee has determined the party proffering the evidence has shown good cause for having failed to produce it before the hearing before the City Council. Before issuing findings, the Referee shall submit a proposed ruling, setting forth proposed findings of fact and conclusions of law, to counsel for the Parties, for comment. When the referee has decided the dispute, the referee shall also cause the preparation of a judgment based on said decision. 7. Remedial Authority. A referee to whom a matter is referred shall have the authority to (i) order either party to undertake remedial action to cure the breach and to prevent occurrence of similar breaches in the future; (ii) assess damages and /or levy a penalty consistent with the terms of this Agreement or (iii) find there has been no breach. 8. Stay Pending Entry of Final Judgment. Until final judgment is entered from the referee proceeding under the foregoing provisions and the time for appeal or other post - judgment petition has expired, the imposition or enforcement of any penalties or sanctions provided in this Agreement and related to the subject matter of the hearing shall be stayed. The referee may modify or cancel any proposed penalties or sanctions upon a finding that the party subject thereto acted with substantial justification, or if the interests of justice so require. LAX:81492.9 Date of Printing: January 31, 1995 -18- 9. Allocation of Referee's Costs. The referee's costs for the proceeding shall be apportioned by the referee. The costs of the proceeding shall be borne equally by the parties to the dispute initially, but the prevailing party in such proceeding shall be entitled to recover reasonable costs of the referee as apportioned by the referee, from the losing party. If either party refuses to pay its share of the costs of the proceeding, at the time(s) required, the other party may do so, in which event that party will be entitled to recover (or offset) the amount advanced, with interest at the maximum rate permitted by law, even if that party is not the prevailing party. The referee shall include such costs in the judgment or award. 10. Recovery of Attorneys' Fees. The prevailing party in a referee proceeding shall be entitled to recover reasonable attorneys' fees from the losing party in addition to any other relief to which it may be entitled. The referee shall includesuch costs and expenses in the judgment or award. C. Decision. The decision of the referee may be excepted to in accordance with Code of Civil Procedure § 645. SECTION 10. CITY'S ADDITIONAL REMEDIES. In addition to the remedies set forth above, City shall have the rights to obtain injunctive relief. Both parties recognize and agree that in the event of a breach under the terms of this Agreement by [NAME OF CONTRACTOR] City may suffer irreparable injury and incalculable damages sufficient to support injunctive relief, to enforce the provisions of this Agreement and to enjoin the breach thereof. SECTION 11. PRIVACY. A. Protection Of Privacy. [NAME OF CONTRACTOR], in providing the services called for by this Agreement, shall strictly observe and protect the trade secrets and rights of privacy of service recipients. Information identifying individual service recipients or the composition or contents of a service recipient's Commercial Solid Wastes shall not be revealed to any person, governmental unit, private agency or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the service recipient. This provision shall not be construed to preclude [NAME OF CONTRACTOR] from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. B. Mailing Lists Prohibited. [NAME OF CONTRACTOR] shall not market or distribute mailing lists with the names and addresses of service recipients. C. Privacy Rights Cumulative. The rights accorded service recipients pursuant to this SECTION shall be in addition to all other privacy rights accorded service recipients pursuant to federal or state law. LAX:81492.9 Data of Printing: January 31, 1995 —19— SECTION 12. REPORTS AND ADVERSE INFORMATION. A. Annual Report. By January 1, 1996, and each year thereafter that collection services are provided pursuant to this Agreement, [NAME OF CONTRACTOR] shall submit to City a written year -end Annual Report, in a form approved by the City. The Annual Report shall include the following information for the year ending October 31st: 1. General Information. General information about [NAME OF CONTRACTOR], including a list of [NAME OF CONTRACTOR]' officers and members of its board of directors. A copy of [NAME OF CONTRACTOR]' most recent annual and other periodic public financial reports and those of each of its subsidiaries and affiliated corporations and other entities, if any, performing services under this Agreement, as the City, following consultation with [NAME OF CONTRACTOR], may request. 2. Prior Year's Activities. A report of the previous year's (or, in the case of the initial report year, the initial year's) activities in the City, including a cumulative summary of the Quarterly Reports, and information and statistics with respect to City's compliance with AB 939. 3. Recommendations. Changes in integrated waste management, including projections and proposed implementation dates and costs, recommended by [NAME OF CONTRACTOR] to enable [NAME OF CONTRACTOR] to meet the City's goals under AB 939 and recommended amendments to the City's Source Reduction and Recycling Element or this Agreement, based on developments in the law or technology. [NAME OF CONTRACTOR]' recommendations with respect to compliance with AB 939 shall state the specific requirement of AB 939 that the implementation of the recommendation is intended to satisfy. B. Reporting Adverse Information. [NAME OF CONTRACTOR] shall provide City two copies (one to the City Manager, one to the City Attorney) of all reports, pleadings, applications, notifications, Notices of Violation, communications or other material relating specifically to [NAME OF CONTRACTOR]' performance of services pursuant to this Agreement, submitted by [NAME OF CONTRACTOR] to, or received by [NAME OF CONTRACTOR] from, the United States or California Environmental Protection Agency, the California Integrated Waste Management Board, the Securities and Exchange Commission or any other federal, state or local agency, including any federal or state court. Copies shall be submitted to City simultaneously with [NAME OF CONTRACTOR]' receipt or submission of such matters with said agencies. [NAME OF CONTRACTOR]' routine correspondence to said agencies need not be routinely submitted to City, but shall be made available to City promptly upon City's written request. C. Failure to Report. The refusal or failure of [NAME OF CONTRACTOR] to file any required reports, or to provide required information to City, or the inclusion of any materially false or LAX:81492.9 Date of Printing: January 31, 1995 -20- 1 misleading statement or representation by [NAME OF CONTRACTOR] in such report shall be deemed a material breach of the Agreement and shall subject [NAME OF CONTRACTOR] to all remedies which are available to the City under the Agreement or otherwise, provided, that the City must follow the procedures for dispute resolution found in SECTIONs 8 and 9 of this Agreement before declaring any such material breach. D. City's Review of [NAME Or CONTRACTOR]' Performance. Annually, within ninety days of City's receipt of the Annual Report required by this Agreement, City shall review the Annual Report and other available information and may hold a public hearing to determine whether [NAME OF CONTRACTOR]' performance for the year reported on was satisfactory and whether to implement any changes recommended by [NAME OF CONTRACTOR]. The reports required by this Agreement shall be utilized as the primary basis for review. In addition, any customer comments or complaints and any other relevant information may be considered. A [NAME OF CONTRACTOR] representative shall be entitled to be present and may participate at any public hearing held by City to review [NAME OF CONTRACTOR]' performance. If any noncompliance with the Agreement is reported to have occurred, City shall offer [NAME OF CONTRACTOR] the opportunity to comment and offer information in rebuttal and to correct any deficiencies. E. Costs. All reports and records required under this Agreement shall be furnished at the sole expense of [NAME OF CONTRACTOR]. P. Monthly and Quarterly Reports and Other Information. [NAME OF CONTRACTOR], at no additional expense to City, shall submit to the City such other information or reports in such forms and at such times as the City may reasonably request or require. The reports are intended to enable the City to meet AB 939 reporting requirements and to comply with the regulations implemented by the California Integrated Waste Management Board, or its successor, with respect to AB 939. The reports will follow a standard format and will include, but will not be limited to, the following: 1. Monthly Reports. The monthly report shall show the number of tons collected and the tonnage delivered to disposal facilities, itemized by disposal facility. Monthly Reports will be submitted to City, transmitted in a format acceptable to City, by modem or disc, at [NAME OF CONTRACTOR]' option, if requested by City. 2. Quarterly Reports. In addition to providing a quarterly summary of the monthly reports, Quarterly Reports shall include the following: a. Recyclable Solid Wastes: A statement showing, by type of material, tons received during the month and tons marketed during the month. A report providing recycling information and the estimated number of Commercial service recipients participating. LAX :51492.9 Date of Printing: January 31, 1995 -21- LAX:81492.9 Date of Printing: January 31, 1995 — A narrative description of problems encountered and actions taken, including efforts to deter and prevent Scavenging. This includes a description of tons rejected for sale after processing (type of material, tonnage), reason for rejection and [NAME OF CONTRACTOR]' disposal method for the rejected materials. A report of recycling program promotional activities, including materials distributed by [NAME OF CONTRACTOR] to service recipients. . b. Hazardous Waste Diversion Reports: A copy or summary of the records required by SECTION 18.C, below. c. Certification: [NAME OF CONTRACTOR] will provide a certification statement, under penalty of perjury, by the responsible corporate official, that the report is true and correct. 3. Submission of Reports. Reports shall be submitted to: City Manager [or designated representative] City of Downey 11111 Brookshire Avenue Downey, California 90241 -7016 Telecopier Number (310) 923 -6388 4. Monitoring. If [NAME OF CONTRACTOR] utilizes a computerized data base which includes a file of service recipients, addresses of Commercial Premises, names and billing addresses of owners and other persons in charge of Commercial Premises and account classifications, [NAME OF CONTRACTOR] agrees to make that computerized data base accessible to the City by disc or modem, as [NAME OF CONTRACTOR] and City shall agree. 5. Citv's Riaht to Reauest Information. The City believes that cooperation between [NAME OF CONTRACTOR] and the City is critical to the success of this program. City reserves the right to request from [NAME OF CONTRACTOR] additional information reasonably and directly pertaining to this Agreement on an "as- needed" basis. 6. CERCLA Defense Records. City views the ability to defend against CERCLA and related litigation as a matter of great 1 importance. For this reason, the City regards the ability to prove where Commercial Solid Waste collected in the City of Downey was taken for disposal, as well as where it was not taken, to be matters of concern. [NAME OF CONTRACTOR] shall maintain data retention and preservation systems which can establish where Commercial Solid Waste collected in the City was landfilled (and therefore establish where it was not landfilled) and a copy or summary of the reports required by SECTIONS 18.B, "Hazardous Waste Inspection and Reporting," 18.C, "Hazardous Waste Diversion Reports" and 12.F.2 "Quarterly Reports," above, for fifty (50) years after the term during which collection services are to be provided pursuant to this Agreement. [NAME OF CONTRACTOR] agrees to notify City's Risk Manager and City Attorney before destroying such records. This provision shall survive the expiration of the period during which collection services are to be provided under this Agreement. G. Inspection and Audit Rights. In addition to the foregoing, the City shall have the right, for a period of three years fol- lowing the delivery of an Auditor's report and financial state- ments, at [NAME OF CONTRACTOR]'s cost and expense (but excluding compensation paid to City employees or City consultants), during normal business hours and upon reasonable notice, to inspect for the purpose of audit all financial and other records of [NAME OF CONTRACTOR] concerning its contract operation. See also SECTION 17.C. H. Costs. All reports and records required to be submitted by [NAME OF CONTRACTOR] to City under this or any other section shall be furnished at the sole expense of [NAME OF CONTRACTOR]. SECTION 13. COMPENSATION, RATES AND BILLING. [NAME OF CONTRACTOR] shall bill all customers for all services rendered, whether regular or special services. [NAME OF CONTRACTOR] shall provide itemized bills, distinctly showing charges for all classifications of services, including but not limited to the charges for late payment, redelivery fees, charges for additional containers, and other special services covered under this Agreement. [NAME OF CONTRACTOR] shall designate that portion of a customer's bill attributable to any fees imposed by the City pursuant to this Agreement as a separate item on customers' bills. SECTION 14. COLLECTION EQUIPMENT. [NAME OF CONTRACTOR] shall provide a number of vehicles and equipment adequate for the collection, disposal and transportation services for which it is responsible under this Agreement. A. Collection Vehicles. All vehicles used by [NAME OF CONTRACTOR] under this Agreement shall be registered with the Department of Motor Vehicles of the State of California, shall be of size, weight, nature and type to be minimally intrusive on the LAX:81492.9 Date of Printing: January 31, 1995 — B. Bins. [NAME OF CONTRACTOR] shall maintain all commercial bins placed or maintained by it in the City of Downey free of graffiti or tagging. C. Name. [NAME OF CONTRACTOR] will use the name ([NAME OF CONTRACTOR1 ". This is the name to be used for all correspondence, billing statements, directory listings, references, signs, vehicle identification, etc. community with respect to noise, emissions, maneuverability, safety, fuel efficiency, and other factors necessary to minimize the impact of [NAME OF CONTRACTOR]'s services. All vehicles must be kept clean and in good repair, shall be uniformly painted, and shall be no older than ten (10) years. D. Sanitation. To protect public health and safety and prevent the spread of vectors and odors, Solid waste collection vehicles shall be washed at least once every seven (7) calendar days, using reclaimed water if available. E. Telephone Number. "([NAME OF CONTRACTOR] "), a local or toll free telephone number, and vehicle number shall be visibly displayed on all vehicles in letters and figures no less than five inches (5 ") high. F. All vehicles, high visibility bins and rolloffs shall display the following decal: Reduce - Reuse - Recycle: It's Everyone's Responsibility. SECTION 1S. OWNERSHIP OF COMMERCIAL SOLID WASTE. Ownership and the right to possession of Commercial Solid Waste, Green Waste and Recyclable Solid Wastes placed in [NAME OF CONTRACTOR]'s containers or Commercial Bins or bundles for collection shall transfer directly from the service recipient to [NAME OF CON- TRACTOR] by operation of state law, when the service recipient surrenders ownership by placing Commercial Solid Wastes or Recyclable Solid Wastes in [NAME OF CONTRACTOR]'s container or bin for collection. At no time does the City obtain any right of ownership or possession of Commercial Solid Waste or hazardous waste placed for collection and nothing in this Agreement shall be construed as giving rise to any inference that City has any such rights. Nothing in this Agreement shall be construed as limiting the right of any person or entity to donate, give away or sell his or her source - separated single material Recyclable Solid Wastes to any other person or entity. SECTION 16. INDEMNIFICATION AND INSURANCE. A. Indemnification of City. [NAME OF CONTRACTOR] agrees that it shall protect, defend, indemnify and hold harmless City, its officers, employees, volunteers and agents from and against any and all losses, liabilities, fines, penalties, claims, damages, LAX:81492.9 Date of Printing: January 31, 1995 —24— liabilities or judgments, including attorneys fees, arising out of or resulting in any way from City's grant of this Agreement to [NAME OF CONTRACTOR] or [NAME OF CONTRACTOR]'S exercise of the permit, including provision of services under this Agreement, unless such claim is due to the sole negligence or willful acts of the City, its officers, employees, agents or contractors. Subject to the scope of this indemnification and upon demand of the City, made by and through the City Attorney, [NAME OF CONTRACTOR] shall protect City from and appear in and defend the City and its officers, employees, volunteers and agents, with counsel selected by City, in any claims or actions, whether judicial, administrative or otherwise, including, but not limited to disputes and litigation over the definition of "Commercial Solid Waste" and "Recyclable Solid Wastes" and the limits of City's authority with respect to the granting of permits, exclusive or otherwise, involving the collection of Commercial Solid Waste and Recyclable Solid Wastes, arising out of the exercise of this Agreement by [NAME OF CONTRACTOR] or claims by other entities disputing the rights and privileges granted by City in this Agreement. This provision shall survive the expiration of the period during which collection services are to be provided under this Agreement. B. Hazardous Substances Indemnification. [NAME OF CONTRACTOR] shall indemnify, defend, protect and hold harmless City, its elected officials, officers, employees, volunteers, agents, assigns and any successor or successors to City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damages, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties and expenses (including but not limited to attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, City or its elected officials, officers, employees, volunteers or agents arising from or attributable to any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance in any Commercial Solid Waste collected by [NAME OF CONTRACTOR] pursuant to this Agreement, is or has been transported, transferred, processed, stored, disposed of or has otherwise come to be located by [NAME OF CONTRACTOR], at places other than facilities owned and operated by [NAME OF CONTRACTOR], or its activities pursuant to this Agreement result in a release of hazardous substances into the environment. The foregoing indemnity is intended to operate as an agreement pursuant to § 107(e) of the Comprehensive Environmental Response, Compensation and Liability Act, "CERCLA ", 42 U.S.C. § 9607(e), and California Health and Safety Code § 25364, to defend, protect, hold harmless and indemnify City from all forms of liability under LAX:81492.9 Data of Printing: January 31, 1995 —25— CERCLA, other statutes or common law for any and all matters addressed in this SECTION 17.B, and shall be limited to the extent of the City's lability. This provision shall survive the expiration of the period during which collection services are to be provided under this Agreement. With respect to Commercial Solid Waste collected by [NAME OF CONTRACTOR] pursuant to this Agreement, which has been transported, transferred, processed, stored, disposed of or has otherwise come to be located by [NAME OF CONTRACTOR] at places owned or operated by [NAME OF CONTRACTOR], or any other disposal facility, [NAME OF CONTRACTOR] shall deliver a Hazardous Substances Indemnification in the form, or the form in substance, as set forth in EXHIBIT "A" to this Agreement. C. AB 939 Indemnification. [NAME OF CONTRACTOR] agrees to meet the diversion requirements of City's Source Reduction and Recycling Element as it may be amended from time to time. City's Source Reduction and Recycling Element, by this reference, shall be deemed to be incorporated into this Agreement. [NAME OF CONTRACTOR] agrees to protect, defend and indemnify City against all fines or penalties imposed by the California Integrated Waste Management Board in the event [NAME OF CONTRACTOR] fails to implement diversion, source reduction and recycling goals and programs and its failure results, causes, or is a contributing factor in the imposition of administrative penalties against the City for failure to meet the diversion, source reduction and recycling goals of AB 939 with respect to the waste stream covered by this Agreement, or [NAME OF CONTRACTOR]'S delays in providing information prevent City from submitting reports required by AB 939 in a timely manner. [NAME OF CONTRACTOR]'s obligation to protect, defend and indemnify City shall be in proportion that to its failure to achieve the AB 939 goals. D. Workers Compensation Insurance. [NAME OF CONTRACTOR] shall obtain and maintain in full force and effect throughout the entire term of this Agreement full workers' compensation insurance and Employer's Liability Insurance (with a minimum limit of ONE MILLION DOLLARS ($1,000,000.00) in accord with the provisions and require- ments of the Labor Code of the State of California. Endorsements that implement the required coverage shall be filed and maintained with the City Clerk throughout the term of this Agreement. The policy providing coverage shall be amended to provide that the insurance shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to City. The policy shall also be amended to waive all rights of subrogation against the City, its elected or appointed officials, employees, volunteers or agents for losses which arise from work performed by the named insured for the City. LAX:81492.9 Date of Printing: January 31, 1995 -26- E. Public Liability Insurance. [NAME OF CONTRACTOR] shall obtain and maintain in full force and effect throughout the entire term of this Agreement a Broad Form Comprehensive General Liability (occurrence) policy with a minimum limit of TWO MILLION DOLLARS ($2,000,000.00) aggregate and ONE MILLION DOLLARS ($1,000,000.00) per occurrence, for bodily injury and property damage, with any self- insured retention not exceeding TWO HUNDRED THOUSAND DOLLARS ($200,00.00) per occurrence and a commercial auto liability insurance policy with a minimum limit of TWO MILLION DOLLARS ($2,000,000.00). Said insurance shall protect [NAME OF CONTRACTOR] and City from any claim for damages for bodily injury, including accidental death, as well as from any claim for property damage which may arise from operations performed pursuant to this Agreement, whether such operations be by [NAME OF CONTRACTOR] itself, or by its agents, employees and /or subcontractors. Copies of the policies or endorsements evidencing the above required insurance coverage shall be filed with the City Clerk. The following language is required to be made a part of all of the insurance policies required by this SECTION: 1) "The City of Downey, its employees, agents, volunteers and officers, are hereby added as insureds as respects liability arising out of activities performed by or on behalf of [NAME OF CONTRACTOR]." 2) "This policy shall be considered primary insurance as respects any other valid and collectible insurance the City of Downey may possess including any self- insured retention the City may have, and any other insurance the City does possess shall be considered excess insurance and shall not contribute with it." 3) "This policy shall act for each insured, as though a separate policy had been written for each. This, however, will not act to increase the limit of liability of the insuring company." 4) "Thirty (30) days prior written notice by certified mail, return receipt requested, shall be given to the City of Downey in the event of suspension, cancellation, reduction in coverage or in limits or non- renewal of this policy for whatever reason. Such notice shall be sent to the City Manager, City Attorney and City Clerk." The insurance required by this Agreement shall be with insurers which are Best A- rated and which are California - admitted. The limits of such insurance coverage, and companies, shall be subject to review and approval by the City Manager every year and may be increased at that time and shall match the coverage provided by the City's own liability insurance policy. The City shall be included as a named insured on each of the policies, or policy endorsements. LAX:81492.9 Date of Printing: January 31, 1995 -27- The insurance required by this Agreement is in addition to, and not in lieu or limitation of the indemnification provisions in SECTIONS 16.A, 16.B and 16.D, above. F. Evidence of insurance Coverage; insurance Repository. Contemporaneously with the execution of this Agreement, [NAME OF CONTRACTOR] shall deposit copies of insurance policies or executed endorsements evidencing the existence of policies of insurance required pursuant to this Agreement. In addition, City shall have the right to inspect [NAME OF CONTRACTOR]'s insurance policies. [NAME OF CONTRACTOR] agrees to establish an insurance policy repository and to maintain copies of insurance policies required pursuant to this Agreement for one hundred years (100 years) after the term of this Agreement, and to notify City's Risk Manager and City Attorney before destroying copies of such policies. This provision shall survive the expiration of the period during which services are to be provided under this Agreement. G. Modification. The insurance requirements provided herein may be modified or waived in writing by the City Council upon the request of [NAME OF CONTRACTOR], provided the City Council determines such modification or waiver is in the best interest of City considering all relevant factors, including the fact that the parent of [NAME OF CONTRACTOR] may be self- insured up to a certain acceptable amount. LAX:81492.9 Date of Printing: January 31, 1995 H. Self- Insured Retention. No self- insured retention, pursuant to SECTION 16.E, above, shall be effective unless approved in writing by the City Manager. [NAME OF CONTRACTOR] shall submit a certificate of net worth to the City Manager in a form that is acceptable to the City. The City Manager shall not approve the self - insured retention, unless the net worth of [NAME OF CONTRACTOR] is at least 'F■ue. ( 5 ) times the amount of the requested self- insured retention and [NAME OF CONTRACTOR] covenants in writing that it shall maintain said net worth for the duration of the insurance policy to which the self- insured retention is applicable. Concurrently with his annual review of the limits of the insurance coverage and the companies pursuant to SECTION 16.E, the City Manager may require the submission of a current certificate of net worth and, if the net worth of [NAME OF CONTRACTOR] is less than that required by this SECTION 16.H, may withdraw approval of the self- insured retention, in addition to any remedy that the City may have for the breach of the covenant required by this SECTION 16.H. I. Reduction of CERCLA and Other Liability. City and [NAME OF CONTRACTOR] agree to meet annually in the fourth calendar quarter of each calendar year to discuss ways to reduce their respective potential CERCLA and other liabilities to third parties. -28- SECTION 17. CASE PERFORMANCE BOND. A. Prior to the start of collection services under this Agreement, [NAME OF CONTRACTOR] shall deposit funds, on terms satisfactory to City, in an interest - bearing account at an institution satisfactory to both City and [NAME OF CONTRACTOR], or provide a letter of credit, from an institution satisfactory to City, at the option of [NAME OF CONTRACTOR], in the amount of TEN THOUSAND DOLLARS ($10,000.00). (The funds on deposit and the letter of credit are referred to collectively in this Agreement as the "Cash Bond ".) The Cash Bond (including any letter(s) of credit) shall be on terms acceptable to the City Attorney. The Bond shall serve as security for the faithful performance by [NAME OF CONTRACTOR] of all the provisions and obligations of this Agree- ment. All interest on a cash deposit, if made, shall accrue to [NAME OF CONTRACTOR]. B. Upon [NAME OF CONTRACTOR]'s failure to pay the City an amount owing under this Agreement, the Cash Bond may be assessed by the City, for purposes including, but not limited to: 1. Reimbursement of costs borne by the City to correct violations of the Agreement not corrected by [NAME OF CONTRACTOR], after City provides notice in accordance with SECTION 8.A.1. 2. To provide monetary remedies or to satisfy damages assessed against [NAME OF CONTRACTOR] due to a material breach of a condition of this License; or 3. To satisfy an order of the referee. C. [NAME OF CONTRACTOR] shall deposit a sum of money or a replacement instrument sufficient to restore the Cash Bond to the original amount within thirty (30) days after notice from the City that any amount has been withdrawn from the Cash Bond. [NAME OF CONTRACTOR] shall be relieved of the foregoing requirement to replenish the Cash Bond during the pendency of an appeal from the City's decision to draw on the Cash Bond. The amount of the Cash Bond shall be adjusted annually on the anniversary of this Agreement. D. In the event City draws on the Cash Bond, all of City's costs of collection and enforcement of the provisions relating to the Cash Bond called for by this SECTION, including reasonable attorneys' fees and costs, shall be paid by [NAME OF CONTRACTOR]. E. Any decision or order of City under this SECTION 17 may be appealed by [NAME OF CONTRACTOR] through the dispute resolution procedures provided by SECTION 8 and 9 of this Agreement. LAX:81492.9 Date of Printing: February 16, 1995 —29— SECTION 18. [NAME OF CONTRACTOR]'8 BOOKS AND RECORDS; AUDITS. A. Records. In addition to the requirements of SECTION 16.F., above, [NAME OF CONTRACTOR] shall maintain all records relating to the services provided hereunder, including, but not limited to, customer lists, billing records, maps, AB 939 records, and customer complaints, for the full term of this Agreement, and an additional period of not less than three (3) years, or any longer period required by law. The City shall have the right, upon five (5) business days' advance notice, to inspect and audit all records relating to this Agreement, including, but not limited to, customer lists, billing records, maps, AB 939 records, and service recipient complaints. Such records shall be made available to City at [NAME OF CONTRACTOR]'s regular place of business, but in no event outside the County of Los Angeles. B. Accountant's Report. Within 120 days following the end of [NAME OF CONTRACTOR]'s fiscal year that occurred during the term of this Agreement, or any extension thereof, [NAME OF CONTRACTOR] shall provide to City a financial statement that reports annual gross revenue collected for its operations in the City. The report shall reconcile quarterly reports and fees with annual gross revenue. The report shall be signed by a certified Public Accountant and [NAME OF CONTRACTOR] will provide a certification statement, under penalty of perjury, by a corporate officer or owner, that the report is true and correct. C. Audit. Should any examination or audit by City of [NAME OF CONTRACTOR]'s records reveal an underpayment of any fee required to be paid to City under this Agreement, the amount of such under- payment, plus compounded interest, shall become due and payable to City not later than thirty (30) days after written notice of such underpayment is sent to [NAME OF CONTRACTOR] by City. Should an underpayment of more than one percent (1 %) but less than two percent (2 %) be discovered, [NAME OF CONTRACTOR] shall bear fifty percent of that portion of the cost to the City of the examination or audit related to the audit of fees. Should an underpayment of two percent (2 %) or more be discovered, [NAME OF CONTRACTOR] shall bear the entire cost of that portion of the examination or audit related to the audit of fees. LAX:81492.9 Date of Printing: January 31, 1995 - 30 - SECTION 19. SERVICE EXCEPTIONS; HAZARDOUS WASTE NOTIFICATIONS. A. Failure to Collect. When Commercial Solid Waste is not collected from any Commercial Solid Waste service recipient, [NAME OF CONTRACTOR] shall notify its service recipient in writing, at the time collection is not made, through the use of a "tag" or otherwise, of the reasons why the collection was not made. B. Hazardous Waste Inspection and Reporting. [NAME OF CONTRACTOR] reserves the right and has the duty under law to inspect Commercial Solid Waste put out for collection and to reject Commercial Solid Waste observed to be contaminated with hazardous substances and the right not to collect Hazardous Waste put out with Commercial Solid Waste. [NAME OF CONTRACTOR] shall notify all agencies with jurisdiction, including the California Department of Toxic Substances Control and Local Emergency Response Providers and, if appropriate, the National Response Center, of reportable quantities of Hazardous Waste, found or observed in Commercial Solid Waste anywhere within the City. In addition to other required notifications, if [NAME OF CONTRACTOR] observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Wastes unlawfully disposed of or released on any City property, including storm drains, streets or other public rights of way, [NAME OF CONTRACTOR] will immediately notify the City Manager or the City Manager's designee. C. Hazardous Waste Diversion Records. [NAME OF CONTRACTOR] shall maintain records showing the types and quantities, if any, of Hazardous Waste found in Commercial Solid Waste and which was inadvertently collected from service recipients within the City, but diverted from landfilling. SECTION 20. REINBURSEIIENT OP CITY EZPENSES. Upon acceptance of this Agreement by [NAME OF CONTRACTOR], [NAME OF CONTRACTOR] shall reimburse City for a portion of City's expenses, including staff time and attorneys' fees and other expenses which led to this Agreement, preparing this Agreement and granting this Permit and Agreement to [NAME OF CONTRACTOR]. [NAME OF CONTRACTOR] agrees to reimburse City in the amount of ONE THOUSAND DOLLARS ($1,000.00). SECTION 21. GENERAL PROVISIONS. A. Soros Majeure. [NAME OF CONTRACTOR] shall not be in default under this Agreement in the event that the collection, transpor- tation and /or disposal services of [NAME OF CONTRACTOR] are tempo- rarily interrupted for any of the following reasons: riots; war or national emergency declared by the President or Congress and affecting the City of Downey; sabotage; civil disturbance; insurrection; explosion; natural disasters such as floods, earthquakes, landslides and fires; strikes, lockouts and other labor disturbances; or other catastrophic events which are beyond the reasonable control of [NAME OF CONTRACTOR]. "Other catastroph- ic events" does not include the financial inability of [NAME OF CONTRACTOR] to perform or failure of [NAME OF CONTRACTOR] to obtain any necessary permits or licenses from other governmental agencies or the right to use the facilities of any public entity where such failures occur despite the exercise of reasonable diligence by [NAME OF CONTRACTOR]. In the event a labor disturbance interrupts collection and transportation of Recyclable Solid Wastes and Commercial Solid Waste, and /or disposal of Commercial Solid Waste by [NAME OF CONTRACTOR] as required under this Agreement, City may elect to exercise its rights under this Agreement. LAX:81492.9 Date of Printing: January 31, 1995 -31- B. Independent Status. [NAME OF CONTRACTOR] is an independent entity and not an officer, agent, servant or employee of City. [NAME OF CONTRACTOR] is solely responsible for the acts and omissions of its officers, agents, employees, contractors and subcontractors, if any. Nothing in this Agreement shall be construed as creating a partnership or joint venture between City and [NAME OF CONTRACTOR]. Neither [NAME OF CONTRACTOR] nor its officers, employees, agents or subcontractors shall obtain any rights to retirement or other benefits which accrue to City employees. C. Pavement Damage. Normal wear and tear on City streets resulting from general vehicular traffic excepted, [NAME OF CONTRACTOR] shall be responsible for damage to City's driving surfaces, whether or not paved, resulting from the operation of [NAME OF CONTRACTOR]'s vehicles providing refuse and Recyclable Solid Wastes collection services within the City. [NAME OF CONTRACTOR] understands that the exercise of this franchise may involve operation of its collection vehicles over private roads and streets. Disputes as to damage to private pavement are civil matters and complaints of damage will be referred to [NAME OF CONTRACTOR] as a matter within its sole responsibility and as a matter within the scope of SECTION 16.A, above. D. Property Damage. Any physical damage caused by the negligent or willful acts or omissions of employees of [NAME OF CONTRACTOR] to public property shall be repaired or replaced by [NAME OF CONTRACTOR] at [NAME OF CONTRACTOR]'S sole expense. Except as provided in SECTIONS 16.A, 16.B, and 16.C., above, this Agreement does not purport to affect, in any way, [NAME OF CONTRACTOR]'S civil liability to any third parties. S. Law to Govern; Venue. The law of the State of California shall govern this Agreement. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Los Angeles. In the event of litigation in a U.S. District Court exclusiv venue shall lie in the Central District of California. P. Fees and Gratuities. [NAME OF CONTRACTOR] shall not, nor shall it permit any officer, agent or employee, to request, solicit, demand or accept, either directly or indirectly, any compensation or gratuity for the collection of refuse otherwise required to be collected under this Agreement. G. AB 939. This Agreement is part of City's efforts to comply with the provisions of the California Integrated Waste Management Act of 1989, ( "AB 939") as it from time to time may be amended and as implemented by the regulations of the California Integrated Waste Management Board ( "Regulations "), as they from time to time may be amended, and the City's Source Reduction and Recycling Element, as it may be amended from time to time. In the event that AB 939 or other state or federal laws or regulations enacted after LAX:81492.9 Date of Printing: January 31, 1995 —32— this Agreement has been executed, prevent or preclude compliance with one or more provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such state or federal laws or regulations. Except as otherwise provided in this Agreement, no other amendment of this Agreement shall be valid unless in writing duly executed by the parties. H. Asendments. Except as otherwise provided in this Agreement, no other amendment of this Agreement shall be valid unless in writing duly executed by the parties. [NAME OF CONTRACTOR] waives any right or claim to provide services in the City as its boundaries exist as of the date of execution of this Agreement, or as they may be expanded by annexation during the term covered by this Agreement, under any prior grant of franchise, contract, license or permit issued or granted by any governmental entity including any right under § 49520 of the Public Resources Code or other law. I. Notices. All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered or sent by telecopier or United States certified mail, postage prepaid, return receipt requested, addressed as follows: To City: Copy to: And to: City Manager City of Downey 11111 Brookshire Avenue P.O. Box 7016 Downey, California 90241 -7016 Telecopier Number (310) 923 -6388 Director of Public Works /Integrated Waste Management Coordinator City of Downey 11111 Brookshire Avenue P.O. Box 7016 Downey, California 90241 -7016 Telecopier Number (310) 923 -6388 City Attorney City of Downey c/o Burke, Williams & Sorensen 611 West Sixth Street, Suite 2500 Los Angeles, California 90017 Telecopier Number (213) 236 -2700 To [NAME OF CONTRACTOR]: Telecopier LAX:81492.9 Data of Printing: January 31, 1995 — Copy to: or to such other address as either party may from time to time designate by notice to the other given in accordance with this SECTION. Notice shall be deemed effective on the date personally served or sent by telecopier or, if mailed, three (3) business days from the date such notice is deposited in the United States mail. J. Compliance With Laws. [NAME OF CONTRACTOR] warrants that it will comply with all applicable laws, including implementing regulations, as they, from time to time, may be amended, specifi- cally including, but not limited to the Comprehensive Environmental Response, Compensation and Liability Act ( "CERCLA "), 42 U.S.C. §§ 9601 et. sec., the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901, et sec., the California Integrated Waste Management Act of 1989, and all other applicable laws of the State of Califor- nia, the County of Los Angeles, ordinances of the City, the requirements of Local Enforcement Agencies and other agencies with jurisdiction. E. Savings Clause and Entirety. If any non - material provision of this Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect the validity and enforceability of any of the remaining provisions of this Agreement. L. Ezhibits Incorporated. EXHIBITS A is attached to and incorporated in this Agreement by this reference. X. Joint Drafting. This Agreement was drafted jointly by the parties to this Agreement. N. Non- Discrimination. 1) [NAME OF CONTRACTOR] shall not discriminate against any employee or applicant for employment because of age, race, religion, creed, color, sex, marital status, sexual orientation, political ideology, ancestry, national origin, or the presence of any mental or physical handicap, unless based upon a bona fide occupational qualification. [NAME OF CONTRACTOR] shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their age, race, religion, creed, color, sex, marital status, sexual orientation, political ideology, ancestry, national origin, or the presence of any mental or physical handicap. Such action shall include, but not be limited to the following: employment upgrading; demotion or transfer; LAX:81492.9 Date of Printing: January 31, 1995 — 1 recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and, selection for training. 2) [NAME OF CONTRACTOR] understands and agrees that if it violates this non - discrimination provision, this Agreement may be terminated by the City and further that [NAME OF CONTRACTOR] shall be barred from performing any services for the City now or in the future, unless a showing is made satisfactorily to the City that discriminatory practices have been terminated and that a recurrence of such action is unlikely. WITNE88 the execution of this Agreement on the day and year written above. CITY OF DOWNEY By: BARBARA J. RILEY, MAYOR ATTEST: Judith E. McDonnell, City Clerk APPROVED AS TO FORM: Cheryl J. Kane, City Attorney (NAME OF CONTRACTOR] By: LAX:81492.9 Data of Printing: January 31, 1995 -35- STATE OF COUNTY OF On before me, personally appeared personally known to me or proved to be the person who executed the within instrument entitled AGREEMENT BETWEEN THE CITY OF DOWNEY AND [NAME OF CONTRACTOR] FOR INTEGRATED WASTE MANAGEMENT SERVICES FOR COMMERCIAL SOLID WASTE, on behalf of [NAME OF CONTRACTOR] a Cali- fornia corporation, and , and acknowledged to me that such execution was pursuant to its bylaws or resolutions of its board of directors. DATE: CORPORATE SEAL ACKNOWLEDGMENT ) ss LAX:81492.9 Date of Printing: January 31, 1995 —3 6 — 1 EXHIBIT "A" FORMAT FOR LANDFILL HAZARDOUS SUBSTANCES INDEMNIFICATION County Sanitation "District" (with respect to the Puente Hills Landfill and Spadra Landfill)) agrees to indemnify, defend (with counsel selected by District), protect and hold harmless City from and against all claims, actual damages, natural resources damages, injuries, costs, response, remediation and removal costs, losses, liabilities, causes of action, interest, and expenses (including but not limited to reasonable attorney's and expert's fees) of any n kind whatsoever paid, incurred, suffered or incurred by or against City resulting from any repair, cleanup, removal action or response action undertaken pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq. (hereinafter "CERCLA "), the California Health and Safety Code (hereinafter "H &S Code ") or other similar federal, state or local law or regulation, with respect to Commercial Solid Waste collected, transported and disposed of by [NAME OF CONTRACTOR] at the Puente Hills Landfill or the Spadra Landfill; provided, however, the foregoing indemnity shall be null and void as to City in the event City delivers or causes delivery of Excluded Waste from City owned or operated facilities to the Puente Hills Landfill or the Spadra Landfill. The term of the foregoing indemnity shall be for a period of five (5) years from and after the effective date of the Commercial Agreement and shall automatically continue thereafter for the term of the Commercial Agreement unless terminated by the District at least ninety (90) days prior to the initial five (5) year term of the Commercial Agreement. If terminated by the District, the foregoing indemnity will not apply to Commercial Solid Waste delivered to the Puente Hills Landfill or the Spadra Landfill, respectively, on and after the effective date of termination, but will continue to apply to Commercial Solid Waste delivered to the Puente Landfill or the Spadra Landfill, respectively, prior to the effective date of termination. The foregoing indemnity is intended to operate as an agreement pursuant to Section 107(e) of CERCLA and Section 25364 of the H & S Code to defend, protect, hold harmless and indemnify City from all forms of liability under CERCLA, the H & S Code or other similar federal, state or local law or regulation. Notwithstanding any provision herein to the contrary, the foregoing indemnity is expressly conditioned upon the implementation by City, pursuant to the Commercial Agreement, of a program for minimization and proper recycling, treatment and disposal of Hazardous Waste generated or accumulated by Commercial Premises. LAX:81492.9 Date of Printing: January 31, 1995 — pomts The following terms used above shall have the indicated meanings: "District" means the Los Angeles County Sanitation District No. 2. "Puente Hills Landfill" means the solid waste (Class III) landfill located on Worlonanmill Road, La Puente, California. "Spadra Landfill" means the solid waste landfill located at 4125 West Valley Blvd., Walnut, California. "City" means the City of Downey, its elected officials, officers, employees, agents, volunteers, assigns and any successor or successors to City's interest. "Commercial Agreement" means the Agreement Between the City of Downey and [NAME OF CONTRACTOR] For Integrated Waste Management of Commercial Solid Waste. "Commercial Premises" means all premises in the City, other than Single Family and Multi- Family Residences. The term "Commercial Premises" includes, but is not limited to, stores; offices; federal, state, City and local governmental facilities, including but not limited to schools, school district offices, special districts and water districts (to the extent permitted by law); restaurants; rooming houses; hotels; manufacturing, processing, or assembly shops or plants; hospitals; clinics; and convalescent centers and nursing homes (non - medical waste only). "Commercial Solid Waste" means all types of solid waste generated or accumulated at, or collected from, Commercial Premises within City's geographical boundaries by or on behalf of City, which waste is permitted to be disposed of at the Puente Hills Landfill or the Spadra Landfill and falls within the definition of "Nonhazardous Solid Waste" set forth in Title 23, Chapter 15, Section 2523 (a) of the California Code of Regulations. LAX:81492.9 Date of Printing: January 31, 1995 -38- "Excluded Waste" means waste other than Commercial Solid Waste, including but not limited to Hazardous Waste. Notwithstanding any provision herein to the contrary, "Excluded Waste" does not include de minimis quantities of Hazardous Waste of a type, nature, quantity, amount or concentration commonly present in Residential Solid Waste remaining in the waste stream following implementation of the program for minimization and proper recycling, treatment and disposal of Hazardous Waste set forth above. "Hazardous Waste" means any waste materials or mixture of wastes defined as "hazardous substances ", "hazardous waste" or "designated waste" pursuant to the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq., the Title: Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq., the California Health and Safety Code, the California Water Code, the California Integrated Waste Management Act, or other similar federal, state or local law or regulation. Where there is a conflict in the definitions employed by two or more agencies having jurisdiction over hazardous or solid waste, the term "Hazardous Waste" shall be construed to have the broader, more encompassing definition. "Residential Solid Waste" means nonhazardous solid waste generated or accumulated at, or collected from, Single Family and Multi- Family Residences located within City's geographical boundaries by or on behalf of the City. COUNTY SANITATION DISTRICT NO. 2 By: Date: ACKNOWLEDGED BY [NAME OF CONTRACTOR]: By: Title: Date: Address: LAX:81492.9 Date of Printing: January 31, 1995 —