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HomeMy WebLinkAboutLos Altos Garbage Company (6)Franchise Agreement Between the Town of Los Altos Hills and Los Altos Garbage Company for Collection of Solid Waste, Recyclables and Yard Trimmings This Solid Waste, Recyclables and Yard Trimmings Collection Franchise Agreement ("Agreement") is made and entered into this 11 r. 4 day of May, 2003 by and between the Town of Los Altos Hills, a general law city of the State of California ("Town"), and the Los Altos Garbage Company, a California corporation ("Franchisee"). RECITALS A. The effective and orderly handling of solid waste and recyclables is an essential component of public safety and health. Balanced regional solid waste management and planning must be maintained and developed so as to safeguard public health, optimize the use of limited natural resources and insure the efficient and orderly collection and disposal of solid waste and recyclable materials. B. It is desirable that the public recognize its ultimate responsibility to reduce, recycle and dispose of all wastes in an environmentally sound manner and that collection and disposal rates must be established at levels which are commensurate with the cost of carrying out that responsibility. C. Pursuant to powers expressly granted to cities and counties in Article XI, Section 7 of the California Constitution, and also set forth in California Public Resource Code Sections 40059 and 49300, Town has the authority within its jurisdiction to regulate the handling of solid waste. Town accordingly enters into this Agreement pursuant to the above authority and pursuant to Town Municipal Code, Chapter 3, Title VI. D. Franchisee collects and disposes of solid waste in Town pursuant to a current franchise agreement, entered into effective March 4, 1998. E. The parties have met and agreed to modify various provisions of the current Agreement and now desire to enter into this new Agreement to incorporate such modifications into this Agreement. As of the date first written above, this Agreement shall supersede and replace in its entirety the current Agreement. lah\03agmt\lagco AGREEMENT In consideration of the mutual covenants, agreements and conditions contained herein, the parties agree as follows: ARTICLE I DEFINITIONS The definitions set forth in this Article 1 shall govern the interpretation of this Agreement. 1.1 Agreement - "Agreement" shall mean this Franchise Agreement Between the Town of Los Altos Hills and Los Altos Garbage Company for Collection of Solid Waste, Recyclables and Yard Trimmings. 1.2 Allowable Expenses - The "Allowable Expenses" shall be $785,135 in the Base Year. The Allowable Expenses shall be adjusted to reflect Town initiated changes in programs and services which require an adjustment in the rate paid to the Franchisee; and adjusted as delineated in Article 12 of this Agreement. 1.3 Base Year - The "Base Year" of this Agreement is October 1, 2003 - September 30, 2004. 1.4 Bin -by -the -Day Service - "Bin -by -the -Day Service" means container service between one (1) and eight (8) cubic yards, for a period not to exceed seven (7) days, for the collection of Solid Wastes or Yard Trimmings. Bin -by -the -Day Services would be used by Service Recipients to dispose of Bulky Goods and oversized Yard Trimmings that would not fit into a Solid Waste Container as a Yard Trimmings Container. For billing and compensation purposes, all Bin -by -the - Day Services are classified as Extra Services under this Agreement. 1.5 Bullcy Goods - "Bulky Goods" means discarded furniture; carpets; mattresses; household appliances including refrigerators, ranges, washers, dryers, water heaters, and dishwashers and other similar items (commonly known as "white goods"); electronic equipment such as stereos, televisions, computers, VCRs and other similar items (commonly known as "brown goods"); and tires. Bulky Goods does not include any motor vehicle or any subassembly, component, or part thereof (except tires), and does not include Hazardous Material. 1.6 Commercial Service Recipient - "Commercial Service Recipient" means a business which subscribes for service by Franchisee. Businesses generating less than 96 -gallons (up to three cans) of Solid Waste per week may subscribe as Residential Service Recipients. 1.7 Compensation - "Compensation" is the sum of the Allowable Expenses and the Service Fee. "Compensation" shall be $863,735 in the Base Year and adjusted as delineated in Article 12 of this Agreement. Payment for Extra Services will be paid in addition to Compensation. 1.8 Composting - "Composting" means the controlled decomposition of organic materials. 2 lah\03 agmt\lagco 1.9 Construction and Demolition Debris - "Construction and Demolition Debris" includes debris and other materials resulting from the construction or demolition of buildings and other structures; and concrete, asphalt, rock and dirt. 1.10 Debris Box Service - "Debris Box Service" means container service in excess of eight (8) cubic yards, for the collection of Solid Wastes. Debris Box Services would be used by Service Recipients to dispose of Bulky Goods and oversized Yard Trimmings that would not fit into a normal Solid Waste Container. For billing and compensation purposes, all Debris Box Services are classified as Extra Services under this Agreement. 1.11 Designated Disposal Site - "Designated Disposal Site" means the disposal facility or site to which Franchisee is directed by Town to transport Solid Waste collected under this Agreement. 1.12 Designated Recyclables Processing Facility - "Designated Recyclables Processing Facility" means the Recyclables Processing Facility to which Franchisee is directed by Town to transport Recyclables collected under this Agreement. 1.13 Designated Yard Trimmings ProcessingFacilitY - "Designated Yard Trimmings Processing Facility" means the Yard Trimmings Processing Facility to which Franchisee is directed by Town to transport Yard Trimmings collected under this Agreement. 1.14 Excess Service - "Excess Service" means service described in Sections 4.3.2 and 4.7.2, which are requested by the Service Recipient above the normal services, and which are provided at additional charge to the Service Recipient. Excess Service includes service to collect excess Solid Waste or Recyclables on the normal day of collection. 1.15 Extra Service - "Extra Service" means services described in Sections 4.3.3, 4.5.3, 4.7.3, and 4.9, which are requested by the Service Recipient above the normal services, and which are provided at additional charge to the Service Recipient. Extra Service includes service to collect Solid Waste on a day other than the normal day of service, or collection of Solid Waste or Yard Trimmings in Debris Boxes or Bin -by -the -Day Service. 1.16 Force Majeure - "Force Majeure" means acts of God, fire, landslides, storms, floods, earthquakes, epidemics, civil disturbances, strikes, lockouts or other industrial disturbances, acts of the public enemy, war, blockades, public riots, accidents to equipment that are not the fault of Franchisee through lack of maintenance, negligence or otherwise, governmental restraint, unavailability of a disposal site, and any other event which could not with reasonable diligence be controlled or prevented by the party affected by the event. 1.17 Franchise Area - "Franchise Area" means the entire area within the city limits of Town at the time of execution of the Agreement, including Foothill Community College, and any areas that may be annexed to Town during the term of this Agreement. 1.18 Franchisee -"Franchisee" means Los Altos Garbage Company (LAGCo). lahM agmtUageo 1. 19 Hazardous Material - "Hazardous Material" means any material or combination of materials which because of its quantity, concentration, or physical, chemical or infectious characteristics may either: (a) cause or significantly contribute to an increase in mortality or an increase in serious irreversible, or incapacitating reversible illness; or (b) pose a substantial present or potential hazard to human health or environment when improperly treated, stored, transported or disposed of or otherwise managed. Hazardous Material includes, but is not limited to, hazardous wastes as defined under California or United States law or any regulations promulgated pursuant to such law, as such law or regulations may from time to time be amended. 1.20 Holidays - "Holidays" shall mean January 1, Thanksgiving Day, and December 25. 1.21 Non -Collection Notice - "Non -Collection Notice" means a two-part form used to notify a Service Recipient of the reasons for the non -collection of materials set out by the Service Recipient for collection by Franchisee pursuant to this Agreement. 1.22 Operating Expenses - "Operating Expenses" means all Allowable Expenses as defined herein. 1.23 Operating Ratio - "Operating Ratio" is the mutually agreed to rate to be used to calculate the Service Fee. The Operating Ratio shall equal 9.1% of the Compensation. 1.24 Payment for Extra Services - "Payment for Extra Services" means remuneration to Franchisee for services provided pursuant to Sections 4.3.3, 4.5.3, 4.7.3, and 4.9. 1.25 Rate Year - "Rate Year" means the twelve (12) month period commencing October 1 of any year and ending September 30 of the subsequent year. 1.26 Recyclables - "Recyclables" means those materials designated in EXHIBIT A of this Agreement; which are separated by the Service Recipient from other discards for the purpose of returning them to economic use, and set out for collection in a Recyclables Container. 1.27 Recyclables Containers - "Recyclables Containers" means the 18 -gallon plastic bins for recycling, to be provided under this Agreement to Service Recipients by Franchisee, and any additional durable container approved for such purpose by Town which is provided by a Service Recipient for collection of Recyclables and is clearly labeled as a recycling container. 1.28 Residential Service Recipient - "Residential Service Recipient" means all residences; and shall also mean business which generate less than 96 -gallons (or not more than three 32 -gallon cans of Solid Waste), per week. 1.29 Service Fee - "Service Fee" is the amount determined by multiplying the Allowable Expenses and the Operating Ratio. The Service Fee shall be $78,600 in the Base Year; and shall be adjusted annually to reflect changes in the CPI as delineated in Article 12 of this Agreement. 4 lah\03agmt\lagco 1.30 Service Rates - "Service Rates" means the rates charged to a Service Recipient for services provided by Franchisee pursuant to this Agreement. Service Rates shall be set by the City Council. Service Rates in effect at the beginning of this Agreement are provided in EXHIBIT B. 1.31 Service Recipient - "Service Recipient" means any residence or business located in Town which subscribes to collection services by Franchisee pursuant to Article 3 of this Agreement. 1.32 Solid Waste - "Solid Waste" means putrescible wastes including kitchen and table food wastes; animal or vegetable wastes resulting from storage, preparation, cooking, processing, or handling of food or food stuffs; non-putrescible wastes that are mixed in the same container with or are contaminated by putrescible wastes; infectious wastes, such as used tissues, which are normally produced at residential premises; small dead animals not exceeding ten (10) pounds in weight; and any putrefactive or easily decomposable waste material which is likely to attract flies, vermin, birds or rodents. Solid Waste does not include materials that are separated and set aside for recycling, and does not include stable matter (manure and other waste matter normally accumulated in stables or in livestock or poultry enclosures), Hazardous Materials, or Special Wastes. 1.33 Solid Waste Containers - "Residential Solid Waste Containers" means metal or plastic containers of approximately 32 -gallon capacity, and plastic bags of not more than 30 -gallon capacity, approved by the City Manager for use by Residential Service Recipients for Solid Waste collection services under this Agreement. Franchisee shall not be required to collect Solid Waste from an approved Solid Waste Container where the contents exceed 60 pounds in combined weight in metal or plastic Containers, or 40 pounds in weight in plastic bags, or the volume exceeds the capacity of the Solid Waste Container when it is closed. "Commercial Solid Waste Containers" means metal bins of from 1 to 6 cubic yard capacity, approved by the City Manager and provided by Franchisee for use by Commercial Service Recipients for Solid Waste collection services under this Agreement. 1.34 Town - "Town" means the Town of Los Altos Hills. 1.35 Town Representative - "Town Representative" means the City Manager, or such Town employee as the City Manager may designate with responsibility for environmental programs. 1.36 Working Day - "Working Day" means Monday through Saturday. 1.37 Yard Trimmings - "Yard Trimmings" means organic materials generated from tree trimming, shrubbery pruning, vegetative garden wastes, dead plants, weeds, leaves, grass clippings, and other non-food vegetative matter. 1.38 Yard Trimmings Collection - "Yard Trimmings Collection" means the collection of Yard Trimmings from Service Recipients as set forth in Section 4.5. lah\03 agmt\lagco 1.39 Yard Trimmings Containers - "Yard Trimmings Containers" means rigid containers provided by the Service Recipient; the combined weight of the container and the Yard Trimmings shall not exceed 60 pounds. 1.40 Yard Trimmings Toters - "Yard Trimmings Toters" means 96 -gallon wheeled containers purchased by the Service Recipient from Franchisee. ARTICLE 2 TERM OF AGREEMENT 2.1 Term - The term of this Agreement shall be from October 1, 2003 to September 30, 2008, inclusive, subject to Article 16 of this Agreement. 2.2 Option to Extend Term — Franchisee shall have the option to request an extension of this Agreement for one five-year period. Not later than eighteen (18) months prior to the termination date of this Agreement, Contractor shall provide Town written notice of its desire to extend or not extend the Term of this Agreement. Town, at its sole discretion, may choose to extend or not extend the Term of this Agreement, and shall notify Franchisee of its intent within 60 days of notice from Franchisee. ARTICLE 3 EXCLUSIVE PRIVILEGE 3.1 Grant Of Exclusive Franchise To Franchisee - Pursuant to California Public Resources Code Section 40059 and 49300, Town hereby grants to Franchisee the exclusive franchise to perform the collection services described in Article 4 in Town for the term of this Agreement. A. Collect and transport to the Designated Disposal Site and/or process for recycling all Solid Waste generated in the Franchise Area, subject to the conditions, restrictions and covenants of this Agreement; B. Collect and transport for processing all Recyclables generated in the Franchise Area, subject to the conditions, restrictions and covenants of this Agreement; C. Collect and transport for processing all Yard Trimmings generated in the Franchise Area, subject to the conditions, restrictions and covenants of this Agreement; 3.2 Exceptions - The exclusive franchise granted to Franchisee to perform collection services does not extend to any of the following, and Town expressly reserves the right to allow other service providers, by contract or otherwise, to perform any or all of the following in Town: A. Collection and processing of any recyclable materials not specifically included in the definition of Recyclables, which have value equal to or more than the cost of collection, including scrap wood, scrap metal pieces of greater than 40 pounds, and other recyclables. 6 lah\03aginAlagco B. Collection of Bulky Goods. C. Collection of grease wastes from grease traps or grease interceptors. D. Collection of horse manure from residences or businesses. E. Collection of hazardous wastes. F. Collection of non -hazardous waste material that is greater than fifty percent (50%) liquid (including septic tank pumpings, and other liquid wastes). 3.3 Recycling Options Of Service Recipients - Nothing in this Agreement shall be construed as requiring Service Recipients to set out Recyclables or Bulky Goods for collection by Franchisee. Service Recipients may dispose of Recyclables and Bulky Goods through other appropriate means including, but not limited to, taking Recyclables or Bulky Goods to drop-off facilities, and donating or selling Recyclables or Bulky Goods to private or public entities. 3.4 Commingling Of Solid Waste, Recyclables and Yard Trimmings. 3.4.1 Solid Waste with Recyclables And Yard Trimmings - Franchisee shall not commingle, in the collection vehicles or at the processing facility or otherwise, any Solid Waste collected pursuant to this Agreement with any Recyclables or Yard Trimmings separated for collection pursuant to this Agreement unless specifically approved in advance in writing by the City Manager. 3.4.2 Non -Town Solid Wastes, Recyclables and Yard Trimmings - Franchisee shall not commingle, in the collection vehicles, any Solid Waste, Recyclables or Yard Trimmings collected pursuant to this Agreement with any materials collected by Franchisee from any place outside Town unless specifically authorized in advance in writing by the City Manager. Such authorization may be granted by City Manager to increase the efficiencies of collection services, but Franchisee shall be required to provide, in a timely manner, accurate and complete data, and audited records of the types and amounts of Solid Waste, Recyclables and Yard Trimmings collected from within and outside Town if commingling is authorized. Such authorization shall be based on a written proposal by Franchisee, which provides details on how the separate data would be generated. ARTICLE 4 COLLECTION SERVICES 4.1 General Provisions 4.1.1. Beginning October 1, 2003, and continuing through the end of the term of this Agreement, Franchisee shall perform collection services as provided in this Article 4. All such services shall be performed in a thorough and professional manner regardless of weather conditions and difficulty of collection. All collection services shall occur only between the hours of 7 AM and 6 PM, unless specifically approved in advance in writing by the City Manager. lah\03agmtUagco 4.1.2. All Solid Wastes collected pursuant to this Agreement shall be and become the property of the Franchisee at the time these materials are placed in Franchisee's collection vehicle, and remain Franchisee's property until such time as these materials are transferred from the vehicle at the designated facility. Solid Wastes which are disposed of at a disposal site shall be the property of the owner of the disposal site when they are unloaded from the collection vehicle. 4.1.3. Non -Collection Notices for Solid Waste, Recyclables, or Yard Trimmings collection shall indicate the date and time the notice is given, the complete address of the premises, the reason why the collection was not made, and the manner in which materials should be prepared for collection. Franchisee shall leave the hard (card stock) copy at the premises by affixing it to the materials not being collected, and shall retain one copy. The form will be mutually agreed to by City Manager and Franchisee. 4.1.4. Except when material is being loaded or unloaded or the vehicle is on route in the process of collection, Franchisee shall at all times keep Solid Waste loads completely covered so as to prevent litter, leakage or spillage from the collection vehicle. Franchisee shall immediately clean up any litter, leakage or spillage which occurs during collection. 4.1.5. In the event that the provision of services to any Service Recipient would require Franchisee to operate its equipment on private roads which Franchisee, after consultation with Town, reasonably believes present an unsafe condition for such operation, Franchisee shall give written notice to Town and to any Service Recipient so stipulated that, until such time as the unsafe roads are placed in a condition that Franchisee deems safe for the operation of its equipment, in order for any such Service Recipient to receive service from Franchisee, said Service Recipient will be required to place all solid wastes, recyclables and yard trimmings for collection at a point where Franchisee reasonable believes it can safely operate its equipment. Roads presently deemed unsafe by Franchisee are listed in EXHIBIT H to this Agreement. 4.2. Holiday Service - Franchisee shall not be required to perform any services under this Agreement on Holidays. Collection services that would be performed under this Article 4, were it not for the Holiday, shall be rescheduled one day later (to the next Working Day) for the remainder of the week following the Holiday, unless otherwise specifically approved in advance in writing by the City Manager. Franchisee shall provide written notice of the rescheduling of any other services affected by Holiday to each affected Service Recipient at least thirty (30) days in advance of the rescheduled service. 4.3. Residential Solid Waste Collection. 4.3.1. Frequency of Collection - Franchisee shall provide regular, scheduled collection of Solid Waste from each Residential Service Recipient in Town on a once -per -week basis, Monday through Friday (except following Holidays). Collection shall be made from Solid lah\03 agmt\lagco Waste Containers which are placed at an accessible location selected by the Service Recipient. 4.3.2. Excess Solid Waste - Franchisee shall collect Solid Waste in excess of the normal level of service on the normal day of collection when the Service Recipient has called and made arrangements with. Franchisee in advance to schedule the collection and make the appropriate payment; and when the Solid Waste is placed in an approved Solid Waste Container, and does not weigh more than 60 pounds per container. 4.3.3. Extra Solid Waste - Franchisee shall collect Solid Waste from Service Recipients on other than the normal day of service when the Service Recipient has called and made arrangements with Franchisee to provide and service a Bin -by -the -Day, or Debris Box, as provided for in Section 4.9 of this Agreement. 4.3.4. Non -Collection - Franchisee shall not be required to collect any Solid Waste that is not placed in a Solid Waste Container. Franchisee shall not be required to collect Solid Waste from a Solid Waste Container where the contents of rigid containers exceed 60 pounds in weight, or where the contents of plastic bags exceed 40 pounds in weight, or where the volume exceeds the capacity of the Solid Waste Container when its lid is closed. In the event of non -collection, Franchisee shall leave a Non -Collection Notice. 4.4. Residential Recyclables Collection. 4.4.1. Frequency of Collection - Franchisee shall provide regular, scheduled collection of Recyclables from each Residential Service Recipient every other week, on the same day of the week that Franchisee performs Solid Waste collection services. Recyclables shall be collected on weeks alternate to the collection of Yard Trimmings. Recyclables shall be collected from Residential Service Recipient's Recyclables Containers at the same location as collection of Solid Waste. 4.4.2. Provision of Recycling Containers - Franchisee shall provide Recyclables Containers upon request to Residential Service Recipients. Recyclables Containers shall be delivered to Residential Service Recipients by their next regularly scheduled Recyclables collection day following their request. All Recyclables Containers provided by Franchisee pursuant to this Agreement shall become the property of Town at the termination of this Agreement. 4.4.3. Recyclables Overages - In the event a Service Recipient has a greater quantity of Recyclables than can be set out in the two 18 -gallon Recyclables Containers provided pursuant to this Agreement, the Service Recipient may set out such Recyclables overages in durable containers supplied by the Service Recipient which are marked for recycling and set out next to the Recyclables Containers. Service Recipient may set flattened cardboard boxes, which are too large to fit in the container, next to the Recyclables Containers. Franchisee shall collect such Recyclables Overages on the same day Franchisee collects Recyclables from the Service Recipient. To promote maximum diversion through recycling, lah\03agnitVagco Franchisee shall collect all Recyclables properly prepared for recycling on each Recyclables collection day. Franchisee shall have no obligation to collect Recyclables Overages where Recyclables are not set out in durable containers, or where any container weighs in excess of sixty (60) pounds. 4.4.4. Non -Collection - Franchisee shall not be required to collect any Recyclables that are not in conformance with Section 4.4.3 of this Agreement. In the event of a non - collection, Franchisee shall leave a Non -Collection Notice. 4.5. Yard Trimmings Collection. 4.5.1. Frequency Of Collection - Franchisee shall provide regular, scheduled collection of Yard Trimmings from each Residential Service Recipient, every other week, on the same day of the week that Franchisee performs Solid Waste collection services. Yard Trimmings shall be collected on weeks alternate to the collection of Recyclables. 4.5.2. Yard Trimmings Containers - Yard Trimmings shall be collected from rigid containers provided by the Residential and Commercial Service Recipients. The combined weight of the container and the Yard Trimmings shall not exceed 60 pounds. Yard Trimmings Containers must be placed adjacent to the Solid Waste Containers by the Residential Service Recipient. Yard Trimmings may also be bundled and placed out for collection next to the Solid Waste Containers. Bundles of yard trimmings shall not exceed 60 pounds, and must be in lengths not exceeding four (4) feet. As part of the base service, Service Recipients may set out up to six (6) Yard Trimmings Containers or bundles, with a combined volume of not more than 200 gallons, on any given Yard Trimmings collection day. Franchisee will provide as many "Yard Trimmings Only" decals to each Service Recipient as requested. To insure that Yard Trimmings are not collected as Solid Waste, Yard Trimmings Containers must display the "Yard Trimmings Only" decal provided by the Franchisee. 4.5.3. Extra Yard Trimmin&s - Service Recipients who have Yard Trimmings in excess of 200 gallons on any normal collection day may make arrangements with Franchisee to provide appropriate Bin -by -the -Day, or Debris Box Services, as provided for in Section 4.9 of this Agreement. 4.5.4. Non -Collection - Franchisee shall not be required to collect any Yard Trimmings that are not in conformance with Section 4.5.1 of this Agreement. In the event of non -collection, Franchisee shall leave a Non -Collection Notice. 4.5.5. Christmas Tree Collection - As part of the Yard Trimmings Collection Program, Franchisee shall collect, on the normal Yard Trimmings Collection schedule, all unornamented Christmas trees which are set out next to the Yard Trimmings Containers in the first twenty-eight (28) calendar days following December 26 of each year for the term of this Agreement. Franchisee shall not be required to collect ornamented trees, nor shall 10 lahM agmAlagco Franchisee be required to collect trees, or parts of trees, which are over four (4) feet in length. 4.5.6. Yard Trimmings Toters - Franchisee shall provide Yard Trimmings Toters for sale to Service Recipients. Yard Trimmings Toters shall be wheeled and 96 -gallon in capacity. Service Recipients shall be charged the amount specified in EXHIBIT B, Service Rates for each Yard Trimmings Toter requested. Franchisee shall deliver the Yard Trimmings Toters to the Service Recipients at no additional charge. There shall be no limit on how many Yard Trimmings Toters may be purchased, but if more than two Yard Trimmings Toters are set out for collection on any Yard Trimmings collection day, the Service Recipient shall arrange to pay for Extra Yard Trimmings services. 4.6. Missed Pick -Ups - The failure of Franchisee to pick up Solid Waste, Recyclables, or Yard Trimmings which have been set out on time and in an approved Container by a Service Recipient in Town shall be considered a missed pick-up. If Franchisee is notified of a missed pick-up by 9:00 AM on the business day following the scheduled collection day for the Service Recipient, Franchisee shall collect the missed pick-up on the day of notification. If the Franchisee is notified after 9 AM on the business day following the scheduled collection day for the Service Recipient, Franchisee shall collect the material from the Service Recipient within twenty-four (24) hours of Franchisee being notified of the missed pick-up, except where collection on a Sunday or Holiday would be required, in which case Franchisee may perform the collection of a missed pick-up on the first working day immediately following the date of notification. Franchisee shall maintain a written record of all calls relating to missed pick-ups and the response provided by Franchisee. The record shall be maintained in accordance with the reporting and monitoring requirements of Article 10 of this Agreement. In the event Franchisee fails to collect a missed pick-up within the times set forth in this Section, Town or its agents may collect and transport the material. Town shall notify Franchisee in writing whenever Town or its agent collects a missed pick-up. Town may withhold payment from Franchisee's Allowable Expenses for any costs incurred by Town in collecting a missed pick-up, as provided in Section 12.8 of this Agreement. 4.7. Commercial Solid Waste Bin Service. 4.7.1. Frequency of Collection - Franchisee shall provide appropriate Solid Waste Containers to each Commercial Service Recipient. Franchisee shall collect Solid Waste from each Commercial Solid Waste Container at least once -per -week, as often as needed to prevent overages on a normal basis, Monday through Saturday. Collection shall be made from Commercial Solid Waste Containers placed at the point of service selected by the Service Recipient. 4.7.2. Excess Commercial Solid Waste - Franchisee shall collect Solid Waste in excess of the Solid Waste placed in Commercial Solid Waste Containers when the Service Recipient has called and made arrangements with Franchisee in advance to schedule the collection and make the appropriate payment. 11lah\03agmt\lagco 4.7.3. Extra Solid Waste - Franchisee shall collect Solid Waste from Commercial Service Recipients on other than the normal day of service when the Service Recipient has called and made arrangements with Franchisee in advance to schedule the collection and make the appropriate payment. 4.7.4. Non -Collection - Franchisee shall not be required to collect any Solid Waste that is not placed in an approved Commercial Solid Waste Container. Franchisee shall not be required to collect Solid Waste from an approved Commercial Solid Waste Container where the weight of the Solid Waste exceeds the limit set by the Franchisee for that size of container, or where the volume exceeds the capacity of the container when its lid closed. In the event of non -collection, Franchisee shall leave a Non -Collection Notice. 4.8. Commercial Recyclables Collection. 4.8.1. Frequency Of Collection - Franchisee shall provide Recyclables collection services, at least every other week on the same schedule as the Residential Recyclables Collection service, to any business which requests the service. Franchisee shall collect Recyclables from each Commercial Service Recipient as often as necessary to minimize overages based on the volume of the containers provided by the Franchisee. 4.8.2. Recyclables Overages - In the event a Commercial Service Recipient has a greater quantity of Recyclables than can normally be contained in the appropriate containers provided by Franchisee, Franchisee shall provide the Service Recipient, at Franchisee's own cost and expense, additional containers. Service Recipients may set out Recyclables overages in durable containers supplied by the Service Recipient which are marked for recycling and set out next to the Recyclables Containers provided. Franchisee shall collect such Recyclables Overages on the same day Franchisee collects Recyclables from the Service Recipient. Franchisee shall have no obligation to collect such Recyclables Overages where Recyclables are set out in non -durable containers, or where the combined materials and container weights in excess of sixty (60) pounds. 4.8.3. Non -Collection - Franchisee shall not be required to collect any Recyclables that are not either placed in Recyclables Containers, or in conformance with Section 4.8.2 of this Agreement. In the event of a non -collection, Franchisee shall leave a Non -Collection Notice. 4.9. Extra Services - In addition to the Extra Services provided for in Section 4.3.3, Section 4.5.3, and Section 4.7.3 of this Agreement, Extra Services shall include collection of Solid Waste or Yard Trimmings from Bin -by -the -Day, or Debris Boxes on a schedule requested by the Service Recipient or Bin -by -the -Day Services. Bin -by -the -Day Services may be used by Service Recipients for a period not to exceed seven (7) days to dispose of Bulky Goods and oversized Yard Trimmings which would not fit into a Solid Waste Container. Debris Box Services may be used by Service Recipients to dispose of Bulky Goods and oversized Yard Trimmings which would not fit into a normal Solid Waste Container. 12 lahMagmtVagco For billing and compensation purposes, all Debris Box Services and Bin -by -the -Day Services are classified as Extra Services under this Agreement. Charges to the Service Recipients for these services shall be set by Town; Franchisee shall receive payment based on the rates in EXHIBIT B. 4.9.1. Designated Facility - Franchisee shall haul Recyclable Extra Service Loads to the facilities designated by Town. Town desires that franchisee haul the loads to processing facilities where the materials can be diverted from disposal. 4.9.2 Frequency of Collection - Franchisee shall provide containers for Extra Services to either Residential or Commercial Service Recipients as requested. Franchisee shall collect Solid Waste or Yard Trimmings from each Bin -by -the -Day, or Debris Box, on the schedule requested by the Service Recipient, but not less often than once a week. 4.9.3 Non -Collection - Franchisee shall not be required to collect any Bin -by -the -Day Container or Debris Box where the weight exceeds the limit set by the Franchisee for that size of container, or where the volume exceeds the capacity of the container when its lid closed. In the event of non -collection, Franchisee shall leave a Non -Collection Notice. 4.10 Town -Wide Clean -Up Services -Two times per year, on a schedule determined by Town, and at up to five (5) separate locations selected by Town, Franchisee will provide a Town -wide clean-up service to residents of Town. Franchisee shall provide sufficient equipment to collect and remove accumulated wastes that have not otherwise been collected through the regular scheduled collection services provided to residents pursuant to this Agreement. Franchisee shall handle all materials received in a manner that will allow the maximum amount to be recycled, or otherwise diverted from landfill. Franchisee shall provide the services described in EXHIBIT C of this Agreement. The services required in this paragraph shall not serve to release Franchisee from its obligations under Section 4.12. 4.11 On -Call Clean -Up Services - Two times per year, Franchisee will provide On-call cleanup services to each Residential Service Recipient, upon request. Franchisee shall provide the services described in EXHIBIT D of this Agreement. Franchisee shall handle all materials received in a manner that will allow the maximum amount to be recycled, or otherwise diverted from landfill. The services required in this paragraph shall not serve to release Franchisee from its obligations under Section 4.12. 4.12 Services to Town - Solid Waste, Recyclables and Yard Trimming collection services described in Article 4 of the Agreement shall be provided (1) to Town Hall, (2) to Town Corporation Yard, (3) to the Little League Fields, and (4) to any Town parks and other Town facilities designated by Town. There shall be no charge to Town for these services. Town shall select the locations, and Franchisee shall provide appropriate containers, and service them on a mutually agreed schedule that will prevent over -flow. 13 lahM agmAlagco 4.13 Street Sweeping - Franchisee shall provide regular, scheduled Street Sweeping services on a once -per -month basis to street segments listed in EXHIBIT G. Town and Franchisee acknowledge that during the term of this Agreement it may be necessary or desirable to add or delete streets from the list. In the operation of the street sweepers, Franchisee shall maintain good practices to leave the streets sufficiently free of refuse, litter, leaves, debris and dirt to meet applicable industry standards, and NPDES Program, State and Federal requirements. Franchisee may transfer sweepings from the sweeper to a haul vehicle at the Town's Public Works yard on Purissima Road. Franchisee shall be responsible for the proper disposal of all collected debris. Franchisee shall provide Town with an annual Street Sweeping schedule that may be used to notify residents of these services. 4.14 Service Recipient Changes -. Town and Franchisee acknowledge that during the term of this Agreement it may be necessary or desirable to add or delete Service Recipients for whom Franchisee will provide collection services. 4.15 Failure To Provide Collection Services - In the event Franchisee fails to provide any of the collection services as required under this Agreement, Town may, but shall have no obligation to, and without waiving or relieving Franchisee of its obligation to provide such services, make such payment or perform such other act as Town deems appropriate to effectuate such services. Town may withhold payment from Franchisee's Allowable Expenses for any costs incurred by Town in effectuating such services during any period Franchisee fails to perform such services. 4.16 Collection Time — Franchisee shall make a good faith effort to provide collection services at a consistent time of day for each Residential Service Recipient, and not to change the time of service more often than necessary, to maintain an efficient collection system. ARTICLE 5 COLLECTION ROUTES 5.1 Collection Route Information - Franchisee shall maintain, and provide to Town within sixty (60) days of the effective date of this Agreement, and on request, within fifteen (15) working days, current and accurate maps indicating: A. Areas of collection including route numbers and truck numbers. B. Day of the week collection service is provided. C. Approximate time of collection (early or late AM, or early or late PM). D. Start point, end point, and the actual street -by -street course the collection vehicles follow on routes. E. Boundary of each individual route. Each adjoining route on the map shall be in a distinct color or pattern so that adjoining routes are clearly delineated. F. A listing of the name, address and level of service for each Service Recipient. 14 lah\03 agmWagco 5.2 Collection Route Changes - For any route changes proposed by Franchisee, Franchisee shall submit to Town, in writing, the proposed change to routes (including by not limited to boundaries and route numbers) not less than sixty (60) calendar days prior to the proposed date of implementation. Within thirty (30) calendar days of receipt of Franchisee's proposed change, Town shall provide written notice to Franchisee as to whether the proposed change is acceptable or not. Franchisee shall not implement any route changes without the prior written authorization of the City Manager. Franchisee shall notify all affected Service Recipients of any authorized route change affecting day of service at least two weeks in advance of the change. 5.3 Route Audits - Town may, at Town's sole expense, perform a route audit. Town may hire a third party to conduct the route audit. Franchisee shall fully cooperate in the audit and supply all requested information to Town's Consultant in a timely manner at no cost to Town. ARTICLE 6 COLLECTION EQUIPMENT 6.1 Equipment Specifications 6. 1.1 General Provisions - All collection equipment used by Franchisee in the performance of this Agreement shall be of high quality. The vehicles shall be designed and operated so as to prevent Solid Waste, Recyclables, Yard Trimmings, or Street Sweepings from escaping from the vehicles. 6.1.2 Registration - All vehicles used by Franchisee in providing services under this Agreement, except those vehicles used solely on Franchisee's premises, shall be registered with the California Department of Motor Vehicles. 6.1.3 Safety Markings - All collection equipment used by Franchisee shall have appropriate safety markings including, but not limited to, highway lighting, flashing and warning lights, clearance lights, and reflective tape striping. All such safety markings shall be in accordance with the requirements of the California Vehicle Code. 6.1.4 Vehicle Signage - Franchisee's name, telephone number and vehicle number shall be visibly displayed on both sides of all collection vehicles in letters and figures not less than four (4) inches high. 6.1.5 Collection Vehicle Noise Level - The noise level generated by collection vehicles using compaction mechanisms during the stationary compaction process shall not exceed seventy-five (75) decibels at a distance of twenty-five (25) feet from the collection vehicle measured at an elevation of five (5) feet from above ground level using the "A" scale of a standard sound level meter at slow response. Franchisee shall cause the collection vehicles to be tested annually by an independent testing authority during the month of September, and shall submit a certificate of testing showing that the vehicles meet the requirements of this Section. 15 lah\03 agmt\lagco 6.1.6 Vehicle Certifications - For each collection vehicle used in the performance of services under this Agreement, Franchisee shall comply with all applicable federal, state, and local laws governing the operation of such vehicles. Franchisee shall maintain copies of such certificates and reports and shall make such certificates and reports available for inspection upon request by the City Manager. Franchisee shall submit each of Franchisee's collection vehicles for inspection by the California Department of Motor Vehicles as required by State law. Franchisee shall not use any vehicle which does not pass such inspection, or fully comply with all applicable federal, state, and local laws. 6.1.7 Equipment Maintenance - Franchisee shall maintain collection equipment in a clean condition and in good repair at all times. All parts and systems of the collection equipment shall operate properly and be maintained in a condition satisfactory to Town. Collection vehicles shall be painted white and vehicle striping and logos shall be painted Franchisee's primary corporate color. Franchisee shall repaint all collection vehicles (including vehicle striping) during the term of this Agreement on a frequency necessary to maintain a positive public image as reasonably determined by the City Manager. Franchisee shall wash all collection vehicles on a frequency necessary to maintain a positive public image. 6.1.8 Maintenance Log - Franchisee shall maintain a maintenance log for all collection vehicles. The maintenance log shall at all times be accessible to Town upon the request of the City Manager, and shall show, at a minimum, each vehicle's identification number, date of purchase or initial lease, dates of performance of routine maintenance, dates of performance of additional maintenance, and description of additional maintenance performed. 6.1.9 Back -Up Equipment - Franchisee shall maintain sufficient back-up equipment to ensure uninterrupted collection service during the term of this Agreement. ARTICLE 7 SOLID WASTE DISPOSAL 7.1 Franchisee's Responsibility 7.1.1 Delivery of Materials -Franchisee shall transport all Solid Waste collected by Franchisee from Service Recipients to the Disposal Site designated by Town, as set forth in EXHIBIT E. 7.1.2 Compliance With Regulations - Franchisee shall observe and comply with all regulations in effect at the Town -Designated Disposal Site at the time Franchisee transports and disposes of materials at the Town -Designated Disposal Site. Franchisee shall at all times while at the Town -Designated Disposal Site operate according to safe industry practices. 16 lah\03 agmNagco 7.2 Town's Responsibility - Town shall be responsible for payment of fees relating to disposal of solid wastes at the Town -Designated Disposal Site, collected pursuant to this Agreement by Franchisee. ARTICLE 8 RECYCLABLES AND YARD TRIMMINGS PROCESSING 8.1 Recyclables Processing - Franchisee shall transport and deliver all Recyclable Materials collected by Franchisee pursuant to this Agreement, to the Town -Designated Recyclables Processing Facility, as set forth in EXHIBIT E, engaged in the business of processing and recycling such materials. Franchisee shall observe and comply with all regulations in effect at the Town - Designated Recyclables Processing Facility at the time Franchisee transports and delivers materials at the Town -Designated Recyclables Processing Facility. Franchisee shall at all times while at the Town -Designated Recyclables Processing Facility operate according to safe industry practices. 8.2 Payment of Recyclables Processing Fees - Town shall be responsible for payment of fees relating to processing of Recyclables collected by Franchisee pursuant to this Agreement at the Town -Designated Recyclables Processing Facility. 8.3 Yard Trimmings Processing - Franchisee shall transport and deliver all Yard Trimmings collected by Franchisee pursuant to this Agreement, to the Town -Designated Yard Trimmings Processing Facility, as set forth in EXHIBIT E, engaged in the business of processing such materials. Franchisee shall observe and comply with all regulations in effect at the Town -Designated Yard Trimmings Processing Facility at the time Franchisee transports and delivers materials at the Town -Designated Yard Trimmings Processing Facility. Franchisee shall at all times while at the Town -Designated Yard Trimmings Processing Facility operate according to safe industry practices. 8.4 Payment of Yard Trimmings Processing Fees - Town shall be responsible for payment of fees relating to processing of Yard Trimmings collected by Franchisee pursuant to this Agreement at the Town -Designated Yard Trimmings Processing Facility. 8.5 Yard Trimmings Compost - Franchisee shall transport up to ten percent (10%) of the Town's tonnage of the composted yard trimmings, from the Town -Designated Yard Trimmings Processing Facility to sites within the Franchise Area, designated by City Manager. A schedule of delivery of compost to the designated sites shall be mutually agreed to by Franchisee and City Manager. 8.6 Diversion Credit - Franchisee shall, to the maximum extent practicable, ensure that Recyclables and Yard Trimmings are collected and processed in a manner which will ensure that these materials will not be landfilled, and that Town will receive credit toward the State diversion mandates. 17 lah\03agmt\lagco ARTICLE 9 ADDITIONAL SERVICES 9.1 Customer Relations Services 9.1.1 Franchisee's Office -Franchisee shall maintain an office within thirty (30) miles of Town Hall where Franchisee shall be available during normal business hours for communication with City Manager, other Town representatives, and the public. 9.1.2 Local Telephone Number - A Customer Service Representative shall be available at the Franchisee's principal office, and shall be accessible by a local telephone number (toll- free to Town and Service Recipients) at least during the hours of 8:00 AM to 4:30 PM, Monday through Friday, except for Holidays. The Customer Service Representative shall be able to assist on any matters which relate to. the Franchisee's performance of services under this Agreement. A telephone answering machine shall be available at all other times. The telephone number shall be listed under Franchisee's name in the local telephone directory. 9.1.3 Emergency Telephone Number - Franchisee shall maintain an emergency telephone number for use when the listed telephone number is not attended. The emergency telephone number shall be available only to Town's Representative. 9.1.4 Service Recipient Inquiries And Complaints - All incoming calls shall be answered within a maximum of four (4) rings. No call shall be "on -hold" in excess of 2.5 minutes. If Town receives more than two (2) complaints a month regarding the amount of time Franchisee placed a caller on hold, liquidated damages covered under Section 12.7 shall be applied. All "call backs" from messages received shall be attempted at least one time prior to 6:00 PM on the day of the call. Franchisee shall make three (3) attempts to return the call within twenty-four (24) hours of the receipt of the call. If Franchisee is unable to reach the caller in three attempts, Franchisee shall send a postcard to the caller on the second working day after the call was received, indicating that the Franchisee has attempted to return the call. All attempts to contact the caller shall be recorded on the log kept by Franchisee. Franchisee shall record all complaints in a log which includes the date, time, nature of the complaint, complainant's naive and address (if the complainant is willing to give this information), and nature and date and manner of resolution of complaint. This log shall be in a format approved by Town, and shall be available for inspection by Town during Franchisee's office hours. 9.1.5 Service Recipient Survey - Within sixty (60) days of City Manager's request, but not more than once during every Rate Year, Franchisee shall send to all Service Recipients in the Franchise Area a written questionnaire designed to ascertain satisfaction with the quality of service provided by Franchisee under this Agreement. Franchisee shall provide a draft of the Survey to the City Manager at least two weeks before it is disseminated to the Service Recipients. Comments provided by the City Manager shall be incorporated, and the final version of the Survey text shall be acceptable to both Town and Franchisee. The Survey 18 lah\03 agmt\lagco shall be included as an insert in the Service Recipients' bills which are mailed closest to April 1 of each Rate Year. The Surveys shall be designed to be returned to Franchisee in the pre -addressed envelope enclosed with those bills for return of the Service Recipients payments. Upon City Manager's request, Franchisee shall provide City Manager's a copy of each Survey returned within ten (10) days of the request. 9.2 Community Relations Program 9.2.1 Franchisee's Workplan - On or before October 1, 2003, Franchisee shall submit to the City Manager a workplan for community relations activities. The workplan shall include but not be limited to Franchisee's activities in connection with any and all changes to services offered. Franchisee shall assist with development of informational materials as requested by Town. All printed materials produced by Franchisee relating to services provided under this Agreement, shall be approved by Town prior to being printed for distribution. A Draft of all text and illustrations shall be provided to City Manager at least two weeks in advance of production of the final document. Comments provided by the City Manager shall be incorporated, and the final version of the text and illustrations shall be acceptable to both Town and Franchisee. 9.3 Recyclables Containers Inventory - Franchisee shall maintain complete inventory and distribution records of all Recyclables Containers purchased pursuant to this Agreement. Upon the expiration or earlier termination of this Agreement, the Recyclables Containers shall become the property of Town. Any containers still in inventory at the termination of this Agreement shall be turned over to Town. 9.4 Additional Recyclables A. In the event Town or Franchisee proposes to add another material to the list of Recyclables to be collected, processed and/or marketed by Franchisee, such additional material shall be included under this Agreement if mutually agreed in writing by Town and Franchisee. B. If Franchisee proposes the addition of the material, the proposal shall be in writing, and include the extent to which the addition of the proposed material would require a modification of the current recyclables collection vehicles, the use of an additional Recyclables Container, and the use of additional collection vehicles, and shall notify Town of the estimated costs of adding the proposed material. C. If Town proposes such addition in writing, Franchisee shall submit a written proposal within thirty (30) calendar days of Town's request. D. Town shall respond in writing to Franchisee's description of changes and costs of implementation within thirty (30) calendar days of Franchisee's notification to Town. Both parties shall negotiate in good faith for the purpose of reaching an Agreement for the addition of the proposed material and a schedule for the implementation of the collection of such material. The City Manager is authorized to negotiate on behalf of Town and to approve the additional material and implementation schedule, but any Agreement which 19 lah\03 agmt\lagco would result in additional compensation to Franchisee, shall not become effective unless approved by the City Council. E. Franchisee shall notify all Service Recipients of the changes in materials being recovered before any changes in the program are implemented. 9.5 Emergency Services - Franchisee shall begin providing, emergency services within 24 -hours of notification by Town. Emergency services are services beyond the services specified in this Agreement, which result from emergency conditions such as earthquake, fire, flood, storm, or other natural calamity, riot, insurrection public disobedience, labor controversy, labor strike, or similar condition which threaten the public health, safety and welfare. Town shall pay Franchisee for emergency services performed pursuant to this Section 9.5 at the rate of One Hundred Fifty Dollars ($150) for hour of service by truck and driver. Emergency conditions do not include the results of failure of Franchisee to comply with the standards and procedures set forth in this Agreement. Should Franchisee not be able to provide Emergency Services, Town, or its agents, may assume and carry out the Solid Waste, Recyclables and Yard Trimmings Collection services. During the duration of the emergency, Franchisee shall make available to Town all of the company's operable equipment and other facilities necessary for providing the services required under this Agreement. Revenues which would normally accrue to Franchisee during the time the emergency services are provided, less the amount of any payments for equipment, shall accrue and be payable to Town to be used to pay the emergency services operator. During the emergency conditions, Town, or its agents, shall operate, maintain and repair, without cost to Franchisee, Franchisee's equipment and other facilities used by Town. Upon cessation of the Emergency condition, the right to use such equipment shall expire and Town shall return said equipment to Franchisee in a condition substantially the same as that which existed upon acquiring said equipment, ordinary wear and tear excepted. 9.6 Disruption of Services 9.6.1 Substitute Collection - If, at any time during the term of this Agreement, for a period of seventy-two (72) consecutive hours or more, Franchisee fails for any reason to collect and remove Solid Waste, Recyclables and Yard Trimmings as required in this Agreement, Town may immediately, upon written notice to Franchisee, cause such Solid Waste, Recyclables and Yard Trimmings to be collected and removed by whatever means available to Town. For so long as Franchisee continues to collect fees from Service Recipients pursuant to Section 11. 3, Franchisee shall pay any and all costs incurred by Town for the provision of such substitute services. 9.6.2 Use of Equipment - In the event Franchisee fails to collect and remove Solid Waste, Recyclables and Yard Trimmings as required in this Agreement, for a period of seventy-two (72) consecutive hours or more, Town, upon written notice to Franchisee, may (but shall not be required to) take possession of and operate through its employees or any other properly licensed persons, any and all trucks and other equipment used by the Franchisee for the collection and removal of Solid Waste, Recyclables and Yard Trimmings in the Franchise Area until such time, not to exceed one -hundred -twenty (120) days, as Franchisee satisfies Town that it is ready, able and willing to comply with all the provisions of this Agreement. 20 lahMagmtMagco In this event, Franchisee shall provide Town with driver route listings and necessary operational records. For so long as Franchisee continues to collect fees from Service Recipients pursuant to Section 11.3, Franchisee shall reimburse Town in full for any costs incurred by Town pursuant to this Section. Town shall indemnify and hold harmless Franchisee from and against any damage to such equipment or liability to any third person injured or damaged as a result of Town's use or possession of such equipment, to the extent such damage or liability is not covered by insurance. Employees of Franchisee, including management employees, may be employed by Town during any period in which Town temporarily assumes the obligations of Franchisee under this Agreement. 9.6.3 Strike or Labor Dispute - The parties hereby agree that in the event a strike or labor dispute occurs, this Agreement shall not terminate for the duration of the strike or labor dispute, provided that Franchisee uses its best efforts to insure that its best obligations under this Agreement do not go unperformed for a period greater than seventy-two (72) hours (excluding week -ends). In order to insure that its obligations under this Agreement are adequately performed, Franchisee may subcontract the performance of services required under this Agreement with entities not affiliated with Franchisee. In the event that Town assumes responsibility for Solid Waste, Recyclables and Yard Trimmings handling services in Town, Franchisee shall maintain an unobstructed entrance at its place of business which is not regularly used but which will be primarily reserved for use by Town while Town or its designated representative is collecting Solid Waste, Recyclables and Yard Trimmings. If the labor dispute or picketing blocks access to Franchisee's place of business, Franchisee shall receive no compensation for any time period in which it failed to collect and remove Solid Waste, Recyclables and Yard Trimmings in accordance with the provisions of this Agreement. ARTICLE 10 REPORTING REQUIREMENTS 10.1 General Reporting Requirements - Franchisee shall provide Monthly, Quarterly and Annual Reports as detailed in EXHIBIT F of this Agreement, at no cost to Town. 10.2 General Reporting Requirements - In addition to the requirement of Section 10. 1, during each calendar year, Franchisee shall provide, at no additional charge, a maximum of twenty (20) person -hours of assistance to Town in meeting reporting and compliance requirements under state and federal solid waste management laws. Upon written request of Town, Franchisee shall provide any additional personnel, resources, and services as are necessary to achieve compliance with such laws. Town shall compensate Franchisee at the rate of eighty-five dollars ($85.00) per hour for those additional services. No time shall be counted against the twenty hours specified above, or billed to Town, unless the hours have been approved in advance by Town. Franchisee shall provide, at no cost to Town, a written estimate of hours and costs, with a not to exceed amount, for each task for which Town requests assistance. 21 1ah\03agmt\1agco 10.3 Service Recipient Database - Franchisee shall maintain at all times a computerized data base containing a complete file of Service Recipients coded by category, number of Solid Waste Containers, and set -back distance charges. The file shall include the address of the collection location, and the address of the Service Recipient if it is different. The data base shall contain fields to allow input of information for all fields listed in EXHIBIT B of this Agreement. The data base shall at all times be accessible by Town. Franchisee shall cooperate with Town with respect to providing information relevant to this Agreement which is not specified in this Article 10. 10.4 Transfer of Data - The customer billing database shall be considered to be jointly owned by both Town and the Franchisee, and shall be made available to Town on request. Six (6) months prior to the termination date of this Agreement, and within ten working days of a request by Town (up to five times during the term of the Agreement), the Franchisee shall provide Town a complete listing of all billing accounts, level of service information and route maps. The listing of billing accounts and level of service information shall be provided on a computer disk in software mutually agreed upon by both Town and the Franchisee. ARTICLE 11 SERVICE RATES & PAYMENTS 11.1 Rate Adjustments to Service Recipients - Rates charged to Service Recipients for services provided pursuant to this Agreement shall be set by the City Council. City Council shall review the revenues received by Franchisee and transmitted to Town as required in Section 11.4 of this Agreement, and act to set an adjusted rate as deemed necessary. 11.2 Rates to Service Recipients - The Franchisee shall bill Service Recipients for services at the rates set by the City Council. The Service Recipient rates for 2003-2004 are provided in EXHIBIT B of this Agreement. 11.3 Billings - Billings shall be mailed to all Service Recipients not earlier than one month, nor later than two months, into the quarterly billing cycle. Payment shall be due one month from the billing date. Franchisee shall undertake reasonable efforts to obtain payment of delinquent amounts from Service Recipients, including, but not limited to, sending three (3) written notices and demand letters, and making weekly telephone calls to all Service Recipients who have not paid their bill by the due date. The "second notice" billing should be mailed not later than 10 working days after the original due date. Quarterly, at the end of each billing cycle, Franchisee shall provide Town with the names, addresses, APN number, and amount owed for all Service Recipients who are more than 90 days delinquent in making payments for services provided. 11.4 PUments to Town - Franchisee shall remit to Town, within ten days of the end of each month, all revenues received in the prior month relating to the performance of this Agreement, including but not limited to service fees, and extra service fees and revenues from recyclables. This payment to Town shall be accompanied by sufficient documentation to identify the source of all 22 1ah\03agmt\1agco revenues. This documentation shall include, at a minimum, specifics for each account, the amount billed, the amount collected, a listing of accounts which received extra services and the amount of extra services provided, and a listing of accounts which are delinquent. ARTICLE 12 FRANCHISEE'S COMPENSATION 12.1 Compensation for Services - Town shall pay Franchisee for services provided pursuant to this Agreement. The Allowable Expenses in the Base Year shall be $785,135. The Service Fee in the Base Year shall be $78,600. The total Compensation in the Base Year shall be $863,735, plus Compensation due for Extra Services. The Compensation shall be adjusted as provided for in this Article 12. 12.2 Payments to Franchisee - Town shall pay Franchisee, within twenty days of the receipt of each payment from Franchisee as provided for in Section 11.4 of this Agreement, one -twelfth of the total of the annual Compensation, plus payment due for Extra Services provided for in Section 4.3.3, Section 4.5.3, and Section 4.7.3 of this Agreement at the rate provided in EXHIBIT B, and including any Adjustments to the Compensation as described in this Article 12. 12.3 Withholding of Pants - Town shall not make Payments to Franchisee for Compensation before Franchisee has made remittance of revenues received in the prior month, and Town has received all reports due for that period. 12.4 Annual Compensation Adjustments - Franchisee's Payment shall be adjusted annually, to reflect changes in the cost of living, according to the formula in this Section 12.4 of this Agreement. The Compensation adjustment, which will apply to the subsequent Rate Year (October 1 to September 30), will be based on increases or decreases for the period of April 1 of the prior year to March 31 of the current calendar year, and will be calculated by the Town. The Franchisee's Payment will be increased or decreased by 80% of the change in the Consumer Price Index (U) for All Items for the San Francisco Bay Area, for the 12 month period ending March 31 of that year, to adjust for changes in Franchisee's cost of doing business. 12.5 Adjustments Due to Change in Designated Facilities — In the event that Town, pursuant to Articles 7 and 8 of this Agreement, at any time directs Franchisee to deliver materials to a facility for the Disposal of Solid Waste or Processing of Recyclables or Yard Trimmings, different than the ones designated in EXHIBIT E, and Franchisee proves to the City Manager that such change materially increases the costs incurred by Franchisee in performance of services under this Agreement, Franchisee's Allowable Expenses for the following Rate Year shall be increased by an amount equal to the increase in costs directly attributable to the change of facility(ies). Franchisee, at no cost to Town, shall set forth in writing the increase in costs directly attributable to the change of facility(ies) within thirty (30) days of the Town's request. 12.6 Special Compensation Adjustments - Regulatory changes and other changes which can not be foreseen, or events outside of Franchisee's control, may be the basis for a special adjustment of 23 lah\03 agmt\lagco the Franchisee's Compensation. Franchisee may request a Special Compensation Adjustment at any time. Special Rate Adjustments will be at the reasonable discretion of Town, based on the written request and documentation provided by the Franchisee. 12.7 Adjustments for Damages - Town shall charge the Franchisee any costs Town incurs for the Franchisee's failure to: collect wastes, divert materials to be in compliance with State and Federal Regulations, and operate equipment properly; or the costs of responding to complaints and problems; and other costs relating to failure of the Franchisee to comply with all other aspects of this Agreement. Town and Franchisee agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages, including the relationship of the sums to the range of harm to Town that reasonably could be anticipated, and the anticipation that proof of actual damages would be costly or inconvenient. Franchisee agrees to pay liquidated damages (not as a penalty) as set forth below: * For each failure over six (6), in any 12 consecutive month period, to commence service to a new Service Recipient within seven (7) days of request. * For each failure over six (6), in any 12 consecutive month period, to provide Recyclables Containers to a new Service Recipient within seven (7) days of request, subject to the conditions of Section 4.4.3. * For each failure over twelve (12), in any 12 consecutive month period, to collect a Solid Waste, Recyclables or Yard Trimmings which had been properly set -out for collection, For each failure over twelve (12), in any 12 consecutive month period, to collect a missed set -out within 24 hours, * For each occurrence of collection during unauthorized hours (starting early or finishing late), * For each occurrence over twelve (12), in any 12 consecutive month period, of damaging a customer's Solid Waste container, * For each occurrence of leaving Solid Waste, Recyclables or Yard Trimmings containers in a public street, For each occurrence over twelve (12), in any 12 consecutive month period, of leaving litter in a public street, For each time the billing procedures described in Section 11.3 of this Agreement are not followed, * For each calendar day a Required Report is incomplete, inaccurate or late, * For each complaint over two (2) in any month regarding the amount of time a customer is left on hold on a call, * For each occurrence of other similar incidents. Damages will start at $25.00 per incident, and may increase, at sole discretion of Town, in increments of up to $50, to a maximum of $500 per incident for repeated failure to perform any one condition as specified in the Agreement. After learning of the occurrence of any incident that is to be used as the basis for the assessment of any liquidated damages, or that is to be used as an incident preceding an incident that is the basis for the assessment of any liquidated damages, Town shall 24 lahMagmtVagco provide Franchisee written notice of the incident. The notice will include a brief description of the incident. Within ten (10) days of notification by Town, Franchisee may submit a written appeal to the City Manager challenging the occurrence of the incident, stating why the incident is not a proper basis for the assessment of liquidated damages, or is not a proper incident preceding an incident that for the basis for the assessment of liquidated damages, or explaining why the liquidated damages should not be assessed. The decision of the City Manager shall be final. Franchisee shall pay any liquidated damages within thirty (30) calendar days after they are assessed. Payment of liquidated damages will in no way be a waiver of Town's authority to terminate this Agreement. 12.8 Collection Services Reimbursement - In the event Franchisee fails to provide collection services as required under Article 4 of this Agreement, and Town exercises its rights under Section 4.6 or Section 9.6 of this Agreement, Franchisee shall reimburse Town for any and all payments made or costs incurred by Town to effectuate such collection services plus an administrative fee in the amount of twenty-five percent (25%) of such payments or costs. 12.9 Other Reimbursements - In the event Franchisee fails to perform any service required under this Agreement, such failure continues for five (5) calendar days after Town notifies Franchisee of such failure to perform, and Town subsequently makes any payment or incurs any cost to perform the service required of Franchisee, Franchisee shall reimburse Town for any and all payments so made or costs so incurred by Town plus an administrative fee in the amount of twenty-five percent (25%) of such payments or costs. 12.10 Resolution of Prior Disputes Regarding Allowable Expenses -By entering into this Agreement, the Franchisee and Town agree that any prior claims or actions under previous agreements with regard to the amount of Allowable Expenses or other rate issues have been equitably resolved, and that no further claims will be made by either party relating to, and including, without limitation, the Allowable Expenses prior to March 1, 1998. ARTICLE 13 PERFORMANCE BOND 13.1 Faithful Performance Bond - Within ten (10) calendar days from the date the City Council approves this Agreement and by October 10 of each year of this Agreement, Franchisee shall procure and provide Town with a fully prepaid surety bond, or the letter of credit, for at least the duration of such Contract Year, to guarantee and assure the prompt and faithful performance of Franchisee's obligations under this Agreement. Such bond shall be executed by a surety licensed and in good standing with the Department of Insurance in the State of California, and have a Best Company rating of A-10 or better. The bond shall name Town of Los Altos Hills as obligee, shall provide at least thirty (30) calendar days prior notice of any cancellation, and shall be in the amount of Three Hundred Thousand Dollars ($300,000.00). The bond will continue in effect for three months beyond term of the Agreement, or until all Payments to Town specified in Section 11.4, and 25 lah\03agmAlagco the End of Agreement Reports specified in EXHIBIT F are provided to Town [whichever comes first]. The form of the bond and the surety are subject to the approval of The City Manager and the City Attorney. The bond will be executed as surety by a corporation authorized to issue surety bonds in the State of California, with a financial condition and record of service satisfactory to Town. Town reserves the right to reduce or waive this requirement at any time. The condition of the performance bond shall be such that if Franchisee shall well and truly perform the covenants, promises, undertakings and obligations contracted by Franchisee to be performed under this Agreement, then the obligation of the bond shall be void; otherwise it shall remain in full force and effect. Said bond shall terminate and be canceled upon the completion of all of Franchisee's obligations under this Agreement. Town shall execute and deliver to Franchisee or Franchisee's surety company promptly upon Franchisee's completion of all of Franchisee's obligations under this Agreement such certificates or other documents as either of them may reasonably request for the purpose of terminating and canceling such performance bond. 13.2 Town's Rights - Town shall have the right to draw against the faithful performance bond or the letter of credit in the event of a breach or default of Franchisee or the failure of Franchisee to perform fully any obligation under this Agreement. Within five (5) calendar days of receipt of notice from Town, Franchisee shall renew or replace such sums of money as needed to bring the faithful performance bond or letter of credit current. ARTICLE 14 INSURANCE REQUIREMENTS 14.1 Insurance Policies - Franchisee shall procure and maintain throughout the term of this Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with Franchisee's performance of work or services under this Agreement. Franchisee's performance of work or services shall include performance by Franchisee's employees, agents, representatives and subcontractors. 14. 1.1 Minimum Limits Of Insurance - Franchisee shall maintain insurance limits no less than: A. Comprehensive General Liability: $4,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. B. Automobile Liability: $4,000,000 for bodily injury per person; $2,000,000 for bodily injury per occurrence; and $2,000,000 for property damage. C. Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the California Labor Code and Employers Liability. D. Hazardous Waste and Environmental Impairment Liability: $4,000,000 per occurrence. 14.1.2 Deductibles And Self -Insured Retentions - Any deductibles or self-insured retentions must be declared to, and approved by, the City Manager. At the option of Town, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as 26 lah\03agmAlagco respects Town, its officers, employees, agents and Franchisees; or Franchisee shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses in an amount specified by the City Manager. 14.2 Endorsements - The policies are to contain, or be endorsed to contain, the following provisions: A. General Liability and Automobile Liability Coverage 1. Town, its officers, insureds, employees, agents and Franchisees are to be covered and named as additional insureds as respects: Liability arising out of activities performed by, or on behalf of, Franchisee; products and completed operation of Franchisee; premises owned, leased or used by Franchisee; and automobiles owned, leased, hired or borrowed by Franchisee. The coverage shall contain no special limitations on the scope of protection afforded to Town, its officers, employees, agents and Franchisees. 2. Franchisee's insurance coverage shall be primary insurance as respects Town, its officers, employees, agents, and Franchisees. Any insurance, or self-insurance maintained by Town, its officers, employees, agents or Franchisees shall be excess of Franchisee's insurance and shall not contribute with it. 3. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to Town, its officers, employees, agents, or Franchisees. 4. Coverage shall state that Franchisee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. B. All Coverage - Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled, or reduced in limits except after thirty (30) days' prior written notice has been given to Town. 14.3 Acceptability Of Insurers - Insurance is to be placed with insurers acceptable to the City Manager. Such insurance shall be executed by a surety licensed and in good standing with the Department of Insurance in the State of California, and have a Best Company rating of A-10 or better. All insurers must be identified by full name; rating, according to the latest edition of Best's Key Rating Guide; and status as insurers admitted in California. If the company is not rated, current financial information should accompany the quotation. 14.4 Verification Of Coverage - Franchisee shall furnish Town with certificates of insurance and with original endorsements affecting coverage required by this Agreement. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. Franchisee shall furnish Town with a new certificate of insurance and endorsements upon each renewal of coverage or change of insurers. Proof of insurance shall be provided in writing to the City Manager. 14.5 Subcontractors - Franchisee shall include all subcontractors as insured under its policies or shall obtain separate certificates and endorsements for each subcontractor. 27 lah\03agmNagco 14.6 Modification Of Insurance Requirements - The insurance requirements provided in this Agreement may be modified or waived by the City Manager, in writing, upon the request of Franchisee if the City Manager determines such modification or waiver is in the best interests of Town considering all relevant factors, including exposure to Town. ARTICLE 15 INDEMNIFICATION 15.1 Indemnification And Hold Harmless - Franchisee, for and on behalf of itself and its agents, subcontractors, directors, officers, employees and representatives shall indemnify, defend and hold harmless Town, its officers, agents and employees from and against any and all losses, liabilities, penalties, claims, demands, judgments, damages, actions or suits, of any and every kind and description, arising or resulting from any work or services performed by Franchisee or its agents, subcontractors, directors, officers, employees, or representatives pursuant to this Agreement, or which results from their noncompliance with any laws respecting the collection, transportation, processing or disposal of Solid Wastes, Recyclables and Yard Trimmings. The acceptance by Town of any work or services under this Agreement shall not operate as a waiver of such indermiification or hold harmless. 15.2 Defense - Upon the demand of Town, Franchisee shall defend Town, its officers and/or employees against any matter described in Section 15.1 of this Agreement with Attorneys of Town's choice. 15.3 Exception - Notwithstanding Sections 15.1 and 15.2, Franchisee's obligation to indemnify, hold harmless and defend Town, its officers and employees shall not extend to any loss, liability, penalty, claim, demand, action or suit arising from acts or omissions constituting willful misconduct on the part of Town, its officers or employees. 15.4 Damage By Franchisee - If Franchisee's employees or subcontractors cause any injury, damage or loss to Town property, including but not limited to Town streets or curbs (excluding normal wear and tear), Franchisee shall reimburse Town for Town's costs of repairing such injury, damage or loss. Such reimbursement is not in derogation of any right of Town to be indemnified by Franchisee for any such injury, damage or loss. With the prior written approval of Town's City Manager, Franchisee may repair the damage at Franchisee's sole cost and expense. ARTICLE 16 TERMINATION 16.1 Franchisee's Default - Town may terminate this Agreement upon Franchisee's default of any material duty or obligation of Franchisee under this Agreement and Franchisee's failure to cure such default within thirty (30) calendar days of Town's written notice to Franchisee of such default. If the default is not capable of cure within said thirty (30) calendar days, Franchisee shall provide written notice to Town together with a schedule of cure within fifteen (15) calendar days of Town's notice 28 lah\03 agmt\lagco of default, shall begin action to cure the default within said thirty (30) calendar days, and shall diligently proceed to cure the default. Town may accept Franchisee's schedule of cure, may make a written demand that Franchisee cure the default within a time period set by Town, or may terminate this Agreement at the end of the thirty -day default period. 16.2 Immediate Termination - Town may terminate this Agreement immediately upon written notice to Franchisee in the event Franchisee fails to provide and maintain the performance bond as required by this Agreement, Franchisee fails to obtain or maintain the insurance policies and endorsements as required by this Agreement, Franchisee fails to provide the proof of insurance as required by this Agreement, or Franchisee fails to indemnify Town against State Penalties under AB 939. 16.3 Bankruptcy Or Insolvency Of Franchisee - Town may terminate this Agreement immediately upon written notice to Franchisee upon the occurrence of any of the following and Franchisee's failure to provide adequate assurance that any of the following can be removed within thirty (30) calendar days of Town's demand for such assurance: (1) the appointment of a receiver or trustee to take possession of all or substantially all of the assets of Franchisee; (2) Franchisee's general assignment if its assets for the benefit of Franchisee's creditors; (3) a court entry of any decree or order adjudging Franchisee to be insolvent or bankrupt; (4) a court entry of any decree or order approving as properly filed a petition seeking reorganization of Franchisee or an arrangement under the bankruptcy laws or any other applicable debtor's relief law or statute of the United States or any State; or (5) a determination by the City Manager, based upon a statement prepared by an independent certified public accountant mutually agreed upon by Franchisee and the City Manager, that there is a reasonable probability that Franchisee's financial capability to perform this Agreement is impaired. 16.4 Authority To Terminate - The City Council of Town is authorized to terminate this Agreement on behalf of Town. Any termination of this Agreement under this Article 16 shall not relieve Franchisee of the obligation to pay any fees, taxes, or other charges then due to Town nor relieve Franchisee of the obligation to file any daily, monthly, quarterly or annual reports covering the period to termination nor relieve Franchisee from any claim for damages previously accrued or then accruing against Franchisee. Town shall pay to Franchisee any amounts due to Franchisee for the performance of services under this Agreement through the effective date of termination. 16.5 Termination Cumulative - Town's right to terminate this Agreement is cumulative to any other rights and remedies provided by law or by this Agreement. 29 lah\03 agmt\lagco ARTICLE 17 GENERAL PROVISIONS 17.1 Service Standards - Franchisee shall perform all services under this Agreement in a thorough and professional manner. Collection services described in Article 4 of this Agreement shall be performed regardless of weather conditions and regardless of difficulty of collection. Additional services described in Article 9 of this Agreement shall be performed professionally, promptly and courteously. 17.2 Labor and Equipment - Franchisee shall provide and maintain all labor, equipment, tools, facilities, and personnel supervision required for the performance of Franchisee's obligations under this Agreement. Franchisee shall at all times have sufficient back up equipment and labor to fulfill Franchisee's obligations under this Agreement. No compensation for Franchisee's services or for Franchisee's supply of labor, equipment, tools, facilities or supervision shall be provided or paid to Franchisee by Town or by any Service Recipient except as expressly provided by this Agreement. 17.3 Assignment - The experience and expertise of Franchisee are material considerations for this Agreement. Franchisee shall not assign any of Franchisee's rights nor delegate any of Franchisee's duties under this Agreement. Any attempt to so assign Franchisee's rights or delegate Franchisee's duties shall be void and of no force or effect. Should the Franchisee wish to assign any of Franchisee's duties under this Agreement, Franchisee must submit their request in writing, and proposal must be approved by City Council prior to implementation. Any attempted assignment shall be null and void and of no effect without prior City Council approval. 17.4 Successors and Assigns - This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided that no party hereto may assign this Agreement without the prior consent of the other party, which consent the Town may withhold at its sole discretion; and provided, further, that no assignment shall be valid and binding that endeavors to relieve the assigning party of any obligations to make payments that accrued prior to the date of assignment or of which the assignee has not affirmatively agreed, in writing, to assume all obligations of the assignor thereunder. Any dissolution, merger, consolidation, or other reorganization of Franchisee, or the sale or other transfer of a controlling percentage of the capital stock of Franchisee, shall be deemed a voluntary assignment. The phrase "controlling percentage" means the ownership of, and the right to vote, stock possessing at least 51% of the total combined voting power of all classes of Franchisee's capital stock issued, outstanding, and entitled to vote for the election of director. 17.5 Independent Franchisee - In the performance of services pursuant to this Agreement, Franchisee shall be an independent Franchisee and not an officer, agent, servant or employee of Town. Franchisee shall have exclusive control over the details of the services and work performed and over all persons performing such services and work. Franchisee shall be solely responsible for the acts and omissions of its officers, agents, employees, Franchisees and subcontractors, if any. Neither Franchisee nor its officers, employees, agents, Franchisees or subcontractors shall obtain any right to retirement benefits, Workers' Compensation benefits, or any other benefits which accrue 30 1ah\03agmt\1agco to Town employees and Franchisee expressly waives any claim it may have or acquire to such benefits. 17.6 Name - Franchisee shall not use a firm name containing the words "City" or "Town" or other words implying municipal ownership. 17.7 Law To Govern - The law of the State of California shall govern this Agreement. 17.8 Venue - Any litigation between Town and Franchisee concerning or arising out of this Agreement shall be filed and maintained exclusively in the Municipal or Superior Courts of Santa Clara County, State of California, to the fullest extent permissible by law. Each party consents to service of process in any manner authorized by California law. 17.9 Compliance With Law - In the performance of this Agreement, Franchisee shall comply with all applicable laws, regulations, ordinances and codes of the federal, state and local governments, including without limitation the Municipal Code of Town. Town shall provide written notice to Franchisee of any planned amendment to the Los Altos Hills Municipal Code which would substantially affect the performance of Franchisee's services pursuant to this Agreement. Such notice shall be provided at least thirty (30) days prior to the City Council's approval of such an amendment. 17.10 Permits and Licenses - Franchisee shall obtain, and shall maintain throughout the term of this Agreement, all necessary permits, licenses and approvals required for Franchisee to perform the work and services agreed to be performed by Franchisee pursuant to this Agreement. Franchisee shall show proof of such permits, licenses or approvals and shall demonstrate compliance with the terms and conditions of such permits, licenses and approvals upon the request of the City Manager, including without limitations, a business license. 17.11 Ownership of Written Materials -All reports, documents, brochures, public education materials, and other written, printed or photographic materials developed by Town or Franchisee in connection with the services to be performed under this Agreement, whether developed directly or indirectly by Town or Franchisee, shall be and shall remain the property of Town without limitation or restriction on the use of such materials by Town. Franchisee shall not use such materials in connection with any project not connected with this Agreement without the prior written consent of the City Manager. 17.12 Waiver - The waiver by Town or Franchisee of any breach or violation of any term, covenant or condition of this Agreement shall not be deemed to be a waiver of any other term, covenant or condition or any subsequent breach or violation of the same or of any other term, covenant or condition. The subsequent acceptance by Town of any fee, tax, or any other moneys which may become due from Franchisee to Town shall not be deemed to be a waiver by Town of any breach or violation of any term, covenant or condition of this Agreement. 17.13 Notices - All notices and other communications required or which may be given under this Agreement shall be deemed given when deposited in the United States snail or when personally 31 lah\03 agmt\lagco delivered to the parties as specified in this Section. In the case of a notice or communication by telefax, a written copy shall be mailed or personally delivered within the three days of the transmittal of the telefax. All notices or other communications sent by mail shall be sent postage prepaid to the address specified below: To Town: City Manager Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 City Manager can be reached by phone at (650)941-7222, or by fax at (650)941-3160. To Franchisee: General Manager Los Altos Garbage Company 650 Martin Avenue Santa Clara, CA 95050 General Manager can be reached by phone at (408)588-7200, or by fax at (408)969-0340. Either party may designate a different mailing address by providing notice to the other party as provided in this Section 17.13. Notice by Town to Franchisee of a missed pick-up, or a Service Recipient problem or complaint, may be given to Franchisee orally through Franchisee's local telephone number, or by telefax, with written confirmation sent to Franchisee within seventy-two (72) hours of the oral notification. 17.14 Transition to Next Franchisee - In the event Franchisee is not awarded an Agreement to continue to provide services following the expiration or earlier termination of this Agreement, Franchisee shall cooperate fully with Town and any subsequent Franchisee to assure a smooth transition of services described in this Agreement. Such cooperation shall include, but not be limited to, transfer of computer data, files and tapes; providing routing information, route maps, vehicle fleet information, and lists of Service Recipients and account information. During the last six (6) months of this Agreement, these materials shall be provided to Town within five (5) working days of the request by Town. 17.15 Town Representative - Except as otherwise provided in this Agreement, the City Manager or his or her designee shall be authorized to act on behalf of Town in the administration of this Agreement. 17.16 Franchisee's Records - Franchisee shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, computer files, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to Town for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. 32 lah\03 agmWagco Franchisee shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, or a designated representative of any of these officers. Copies of such documents shall be provided to Town for inspection at Town Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Franchisee's address indicated for receipt of notices in this Agreement. Where Town has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Franchisee's business, Town may, by written request or demand of any of the above-named officers, require that custody of the records be given to Town and that the records and documents be maintained in Town Hall. Access to such records and documents shall be granted to any party authorized by Franchisee, Franchisee's representatives or Franchisee's successor -in -interest. 17.17 Use of Recycled Products - Franchisee is requested to use, wherever feasible in the performance of services under this Agreement, products or materials which contain recycled materials content. This would include such items as reports on recycled content paper, recycling Containers with recycled plastic content; and use of re -refined oil in collection vehicles. 17.18 Amendment - This Agreement may be amended or modified only by written Agreement duly authorized by Franchisee and City Council and executed by their authorized representatives. 17.19 Paragraph Headings - The subject headings of the paragraphs and subparagraphs of this Agreement are included for convenience only and will not affect the construction or interpretation of any of its provisions. 17.20 Draftin - This Agreement, and each of the provisions hereof, have been reached as a result of negotiations between the parties and their respective attorneys. Each of the parties hereto expressly acknowledges and agrees that this Agreement shall not be deemed to have been prepared by or drafted by any particular party and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party or parties, shall not be employed in the interpretation of this Agreement. 17.21 Severability - Should one or more of the provisions of this Agreement be held by any court to be invalid, void or unenforceable, the remaining provisions shall nevertheless remain and continue in full force and effect, provided that the continuation of such remaining provisions does not materially change the duties or obligations of either party from those duties or obligations originally contemplated by this Agreement. 17.22 Entirety - This Agreement and the Exhibits attached hereto represent the entire Agreement of Town and Franchisee with respect to the services to be provided under this Agreement. No prior written or oral statement, proposal, or Agreement shall alter any term or provision of this Agreement. 33 lah\03 agmtVagco 17.23 Nondiscrimination - In performing the collection services hereunder, Franchisee shall not discriminate against any person on the ground of race, sex, age, creed, color, religion or national origin. 17.24 Attorney's Fees - In any legal action or proceeding brought for enforcement of this Agreement, the successful party shall be entitled to recover reasonable attorney's fees and other costs incurred in that action or proceeding, in addition to any other relief to which the successful party may be entitled. 17.25 Dispute Resolution // // // // 17.25.1 Call for Mediation - If the parties are unable to resolve a dispute arising under this Agreement in a cooperative manner, either party may call for mediation, as hereafter described. The party calling for mediation shall serve notice in writing upon the other party setting forth the question or questions to be mediated. The costs of the mediation shall be borne equally by the parties. 17.25.2 Mediation - Within ten (10) days after delivery of the notice called for under Section 17.23.1, the parties shall select a mutually acceptable mediator from the Judicial Arbitration and Mediation Service ("JAMS") or other mutually agreeable organization. In the event the parties are unable to agree on a mediator, a mediator shall be selected for them at random by the San Francisco office of JAMS. However, either side may reject the proposed mediator and JAMS will select another. Within ten (10) days thereafter, the parties shall meet with the mediator in a good faith attempt to resolve their dispute. The parties shall continue to meet with the mediator until their dispute is resolved or the mediator indicates that he or she does not believe that further efforts are likely to result in a successful resolution. 34 lah\03agmt\lagco WITNESS the execution of this Agreement on the dates set forth below. Town of Los Altos Hills A Municipal Corpor t'on By: 'NA rVJAA, ity Manager Date: Los Altos Garbage Company A California Corporatio By. -- C`�.. J ral 1VI /Q4r Date:"Ii�` Attest: Clerk Ap roved as t Form: City Attorney 35 lah\03 agmt\lagco EXHIBIT A: RECYCLABLE MATERIALS "Recyclable Materials" include: ■ Aluminum, tin, steel and bimetal cans ■ Aseptic containers (like those used for milk and juice) ■ Expanded Polystyrene packaging and packing materials (foam `peanuts' must be in a plastic bag) ■ Glass bottles and jars of all colors ■ Paper including newspaper and advertising inserts, magazines, catalogs, envelopes, junk mail and post -it notes, paperboard, flattened cereal and cracker boxes, shoe boxes, gift boxes, paper egg cartons, construction paper; white and colored paper, telephone books, wrapping paper, flattened corrugated cardboard boxes, and brown paper grocery bags; and other similar materials) • Plastic bags (like those used for dry cleaning, newspapers, groceries or shopping) ■ Plastic bottles, jars, tubs and containers (#1-#7) ■ Scrap and cast aluminum foil and pans (not exceeding forty (40) pounds in weight nor two (2) feet in any dimension for any single item) ■ Scrap metal (including car parts that are drained of all fluids) pieces not exceeding forty (40) pounds in weight nor two (2) feet in any dimension for any single item ■ Small kitchen appliances (such as toasters) ■ Steel cans including "tin" cans, empty aerosol cans, and bimetal containers; ■ Used motor oil (in plastic containers with a screw on lid only) ■ Used motor oil filters (in sealed plastic bags only) ■ any other materials mutually agreed to by Town and Franchisee, which are separated by the generator from other discards for the purpose of returning them to economic use. "Yard Trimmings" include: organic materials generated from tree trimming, shrubbery pruning, vegetative garden wastes, dead plants, weeds, leaves, grass clippings, and other non-food vegetative matter. Individual tree branches shall not be more than six (6) inches in diameter, or more than six (6) feet long. "Construction and Demolition Debris" includes: debris and other materials resulting from the construction, remodeling or demolition of buildings and other structures; and concrete, asphalt, rock and dirt. 36 lah\03 agmt\lagco EXHIBIT B: SERVICE RATES B.1. Residential Service Rates B.2. Commercial Service Rates 13.3. Excess Service Rates Charges to Service Recipients for additional Solid Waste or Recyclables collection services on the same day as normal service 8.4. Extra Services Compensation to Franchisee a. Debris box and Bin -for -a -day service b. Charges to Service Recipients for additional Solid Waste collection services on a day other than the normal day of service 13.5. Special Charge Rates Yard Trimmings Toters may be purchased by Residential Service Recipients for the total price of $60.00 per cart, which includes assembly and delivery. 13.6. Special Town Charges The cost to Town for proper handling and disposal of items containing Freon, and for Television sets and computer Monitors, from both the on-call cleanup services and for the multi -site cleanup services, shall be: 37 16\03 agmNagco Labor Disposal Total Standard Refrigerator, Freezer or Air Conditioner $15.00 $15.00 $30.00 Standard TV or Computer Monitor (up to 19") $15.00 $20.00 $35.00 Television (20" to 27") $15.00 $25.00 1 $40.00 Television (27" to 35") $15.00 $35.00 $50.00 Television (35" to 4511) $15.00 $50.00 $65.00 37 16\03 agmNagco Exhibit B. Service Rates RATE SCHEDULE Town of Los Altos Hills (LHO) Effective - April 1, 2003 Each Additional 100': $5.18 per month RDT1 Additional Garbage Can(32Gal): $24.61 per month RAD1 Addn'I Yardwaste Cart(96Gal): $13.99 per month EXYWT Oversize Can: CAN SERVICE (MONTHLY RATE): per month ROVR RC1_ RC2_ RC3_ RC4_ UNIV_ DISTANCE 1 Can 2 Cans 3 Cans 4 Cans Universal A 0'- 100' $24.61 $49.21 $73.82 $98.42 $14.50 D 100' - 200' $29.79 $54.39 $79.00 $103.60 $19.68 E 200'- 300' $34.97 $59.57 $84.18 $108.78 $24.86 F 300'- 400' $40.15 $64.75 $89.36 $113.96 $30.05 G 400' - 500' $45.33 $69.93 $94.54 $119.14 $35.23 H 500'- 600' $50.51 $75.11 $99.72 $124.32 $40.41 1 600'- 700' $55.69 $80.29 $104.90 $129.51 $45.59 J 700'- 800' $60.87 $85.47 $110.08 $134.69 $50.77 K 800'- 900' $66.05 $90.65 $115.26 $139.87 $55.95 Each Additional 100': $5.18 per month RDT1 Additional Garbage Can(32Gal): $24.61 per month RAD1 Addn'I Yardwaste Cart(96Gal): $13.99 per month EXYWT Oversize Can: $6.87 per month ROVR Universal -Each Additional 100': $5.18 per month UNIVX No Stop/With Service Charges: $14.50 per month NOSTP Toter Rental (each): $3.48 per month WW Extra Garbage Can (32Gal): $8.45 per pickup $57.44 Extra Yardwaste Can (32Gal): $4.66 per pickup $694.99 Extra Yardwaste Can (96Gal): $9.32 per pickup $599.87 Extra Bag Tag: $6.60 per tag $566.43 10+ Extra Bag Tags: $6.22 per tag 6 X wk Toter Purchase - Yardwaste $62.16 each $172.78 SPECIAL SERVICES CHARGE Description Customer Billing Special Pickup Charge (Per Driver) $74.59 per hour BILLING CYCLES: Commercial - Every Month Residential - Billed Apr 1 for Mar/Apr/May Billed Jul 1 for Jun/Jul/Aug Billed Oct 1 for Sep/Oct/Nov Billed Jan 1 for Dec/Jan/Feb DEBRIS BOX SERVICES (Includes 7 Days Rental): FRONT LOADER (MONTHLY RATE): Key Service: FTL1.5 FTL3 FTL6 FTLPO TIMES/wk 1 1/2 YD 3 YD 6 YD PUSH OUT 1 X wk $123.78 $219.17 $318.97 $28.86 2 X wk $219.17 $380.80 $504.69 $57.44 3 X wk $380.80 $538.04 $694.99 $86.39 4 X wk $476.02 $599.87 $885.59 $115.26 5 X wk $566.43 $847.53 $1,080.76 $143.94 6 X wk $666.47 $1,009.18 $1,266.30 $172.78 Extra $49.94 $66.52 $95.20 Key Service: $28.96 Per Month FTLK Compactor Service: $26.77 Per Yard COMP Commercial Can Serv. $25.35 Per 32 -Gal COM Extra Can Pickup $24.61 Per 32 -Gal SPECIAL SERVICES: Cleaning Fee For Bins $49.81 Per Incident Redelivery Charge $49.81 Per Incident Furnishing Chains $49.81 Per Incident REAR LOADERS (MONTHLY RATE): * Manure is only provided in 1 yard containers. Rent Charge Per Week Per Ton Description RLI RL2 RMAN1 TIMES/wk 1 YD 2 YD *MANURE 1 X wk $107.20 $160.98 $128.38 2 X wk $158.92 $281.49 $256.75 3 X wk --- --- $342.32 4 X wk --- --- $459.99 5 X wk --- --- $577.66 Extra $35.42 $53.01 $44.12 * Manure is only provided in 1 yard containers. Rent Charge Per Week Per Ton Description 8 Yard 20 Yard 30 Yard 40 Yard Over 1 Week Over Limit Tonnage Limit Per Load 6 Tons 3 Tons 3 Tons 4 Tons --- --- Debris Box Rates $549.10 $347.07 $455.86 $569.82 $77.70 $67.34 Yardwaste Recycling Rates N/A $269.37 $378.15 $502.48 $77.70 $67.34 C&D Box Recycling Rates TBA TBA TBA TBA $77.70 $67.34 BIN -BY -THE -DAY (Includes 3 Days Rental): Description 4 Yard 7 Yard Refuse Rate $123.29 $195.81 Yardwaste Recycling Rate $109.82 $174.05 LAH Contract-Extension-2.xls 5/14/2003 4:54 PM EXHIBIT C: TOWN -WIDE CLEAN-UP SERVICES 1. Materials Excluded from Town -wide Clean-ups: Franchisee shall not be required to accept the following materials during town -wide cleanups: a) tree trimmings which are more than 6" in diameter; b) more than 30 -gallons per household of debris and other materials resulting from the construction or demolition of buildings and other structures; c) more than 30 -gallons per household of concrete, asphalt, rock and dirt; d) tires; and e) hazardous wastes, including used motor oil. 2. Materials Included in Town -wide Clean-ups: A. Franchisee shall accept all solid wastes from residents of Town for disposal. B. Franchisee shall accept from residents of Town, and keep separate for recycling, the following materials: a) recyclables which are collected by the Town's recycling program; b) yard trimmings which are less than 6 -inches in diameter, and not more than 6 -feet in length; c) clean (unpainted and untreated) wood; d) scrap metal items that do not exceed forty (40) pounds in weight and are not more than two (2) feet long in any dimension; e) small appliances f) white goods which do not contain Freon g) white goods that contain Freon (for which Town will pay for Freon removal) h) computer monitors and television sets (for which Town will pay for proper handling) i) up to 30 -gallons per household of debris resulting from the construction or demolition of buildings and other structures; j) up to 30 -gallons per household of concrete, asphalt, rock and dirt; k) undamaged bulky goods (to be donated to a non-profit service organization) 1) textiles (to be donated to a non-profit service organization) 38 lah\03 agmt\lagco EXHIBIT D: ON-CALL CLEAN-UP SERVICES Only Residential Service Recipients with garbage service are eligible to use the clean-up services program. Residential Service Recipients can schedule up to two collection days per year at no additional charge. Residential Service Recipients must call at least 48 -hours in advance to schedule on-call collection services. Each on-call collection allows the Residential Service Recipient to schedule pickup of one of the following: 1) Garbage and construction debris - collection will occur on the customer's regular Garbage collection day. 2) Bulky items - collection will occur on the customer's regular Garbage collection day. 3) Yard Trimmings and Wood Waste - collection will occur on the customer's regular Yard Trimmings collection day. 1. Garbage and Construction Wastes a) Loose items must be bagged, bundled or boxed. The total pile size must not exceed 4 -feet, by 4 - feet, by 8 -feet. b) Construction debris (including concrete, asphalt, rock, dirt and painted wood) must be containerized, with individual boxes not weighing more than 40 pounds, and with a total weight not to exceed 250 pounds. 2. Bulky items including: a) White goods (appliances) which do not contain Freon b) White goods (appliances) which contain Freon (refrigerators and air conditioners) c) Computer monitors and television sets d) Worn and damaged furniture e) Reusable (undamaged) household goods, toys and textiles to be donated to a non-profit service organization 3. Yard Trimmings and Wood Waste a) Yard Trimmings and clean (unpainted and untreated) wood must be bundled, boxed or in a trash can. b) Branches must be less than 6 -inches in diameter c) Bundled piles must not exceed 6 -feet in length, and not weigh more than 50 pounds each. The total pile size must not exceed 4 -feet, by 4 -feet, by 8 -feet. No stumps, poison oak, or bug -infested material will be accepted. No loose piles or plastic bags will be collected. Restricted/Hazardous Items No car parts with oil or other fluid residues will be accepted. No hazardous wastes, including used motor oil will be collected. Unused clean-up days are not transferable from one calendar year to the next. 39 lahM agmAlagco EXHIBIT E: DESIGNATED FACILITIES The following are the Town's Designated Sites and Facilities. At Town's sole discretion, Town may revise this EXHIBIT D by giving Franchisee thirty (30) days' written notice of the changes. Designated Disposal Site is the Newby Island Landfill, San Jose, CA Designated Recyclables Processing Facility is the Recyclery, Newby Island, San Jose, CA Designated Yard Trimmings Processing Facility is the Zanker Road Resource Recovery Facility, San Jose, CA 40 lahMagmtVagco EXHIBIT F: REPORTING REQUIREMENTS Monthly Reports. Franchisee shall submit a written monthly report to Town, within 10 days of the end of each month. 1.1 Monthly Summary. The monthly report shall contain a summary of the information reported pursuant to Section 1 of this EXHIBIT F. 1.2 Telephone Log. The monthly report shall contain a copy of Franchisee's telephone and complaint log, and include the name and address of each caller, the reason for the call, details on each complaint and a description of how each complaint was resolved. 1.3 New Service Recipients. The monthly report shall contain a listing of all new Service Recipients, including their name, address and level of service. 1.4 Missed Picicubs. The monthly report shall contain a written record of all calls related to missed pickups, and a description of the response to each call. 2. Quarterlyports. Franchisee shall submit, within fifteen (15) calendar days following the end of each three month period, quarterly reports on Solid Waste collection and disposal, and on Recyclables collection, on Yard Trimmings collection, and Town -wide Clean-up events. This report information shall meet the reporting requirements of the California Integrated Waste Management Act, as such Act may from time to time be amended. In addition to the information required by the California Integrated Waste Management Act, each quarterly report shall include the information described in Section 2 of this EXHIBIT F. 2.1 Quarterly Summary. The quarterly report shall contain a summary of the information reported pursuant to Section 1 of this EXHIBIT F. Reports shall also contain a description of milestones achieved; staffing levels; and a log of special occurrences; and any other relevant information, including details of any Town -wide Clean-ups which occurred during that quarter. 2.2 Sales of Recyclables. The quarterly report shall contain a quarterly Recyclables sales statement showing: type of material, the name of each buyer, date of sale, terms of sale, 41 lah\03 aginAlagco quantity sold (in tons), and net sales (net sales means gross sales minus both sales returns and sales allowances). Tonnages sold at different prices during the quarter must be reported separately. Adjustments to previous quarters' sales (such as for contaminants) shall be reported on the current statement as a reduction in sales and referenced to the statement for the prior quarter in which the original sale was actually reported. 2.3 Contaminants. The quarterly report shall include a statement of the weight (in tons) of contaminants in the Recyclables collected during the quarter, the weight of the contaminants expressed as a percentage of the Recyclables collected, and a description of the disposal methods for the contaminants. 2.4 Problems Encountered. The quarterly report shall include a narrative account of problems encountered during the reporting period in connection with Recyclables collection (including scavenging), processing and/or marketing, and the actions taken by Franchisee in response. The narrative shall include a description of problems relating to non -collection because of contamination in the Recyclables Containers or because of blocked access. The narrative shall also include a description of Recyclables rejected for sale after processing (by type of material and tonnages) reason(s) for rejection, and Franchisee's disposal method for the rejected load. 2.5 Public Education Activities. The quarterly report shall include a description of the public education and community relations activities performed by Franchisee during the quarter and Franchisee's evaluation of the success of such activities in promoting the Program or in addressing problems encountered by Franchisee. 3 Annual Reports. 3.1 Annual Report Submitted By Franchisee. Within 30 days following the end of each Rate Year, Franchisee shall provide Town with an annual report containing: a summary report of the quarterly reports for the year, including information on the total annual quantities of Solid Waste collected and disposed, Recyclables collected, and Yard Trimmings collected. The annual report shall also contain a discussion of public awareness activities and their impact on recycling participation and recovered amounts, and a discussion of highlights and other noteworthy program experiences, along with measures taken to resolve problems, increase efficiency, and increase participation. Franchisee shall prepare and submit to Town, no later than March 31 of each year of this Agreement, the Annual Report required by the California Integrated Waste Management Act, for Town to receive and submit to the California Integrated Waste Management Board. 42 lah\03 agmt\lagco 3.2 Declarations. Each year of the term of this Agreement, beginning in the year 1998, Franchisee shall submit to Town, as an attachment to the Annual Report, a declaration describing the current status of any criminal or civil litigation pending against either Franchisee's parent company or any subsidiaries of the parent company which relates to Solid Waste handling, collection, recycling or disposal. Also, Franchisee shall submit declarations of the current status of any pending criminal or civil litigation relating to the activities of Franchisee, Franchisee's parent company or any subsidiary naming any current officer of the parent company or any subsidiary company as a defendant. For these declarations "current officers" shall be defined to include those individuals who are presently serving or who have served as an officer of the parent company or the subsidiary within the two (2) years immediately preceding the date of the report. 3.3 Vehicle Fleet Information. Each year of the term of this Agreement, Franchisee shall submit to Town, as an attachment to the Annual Report, all information required by Section 6.1.6 of this Agreement. 4. End of Agreement Reports. Reports covering the last period of this Agreement will be due following the end of collection services, on the schedule stated in this EXHIBIT F. Therefore, the last Compensation Payment to Franchisee by Town shall not be made until these reports are delivered to Town. 43 lahM agmNagco EXHIBIT G: STREET SWEEPING The following street segments shall be swept once each month: Altamont Road, from Moody Road to Page Mill Road Anacapa Drive, from Visciano Road to Ascension Drive Arastradero Road, from Page Mill Road north to Town Boundary Arastradero Road medians at I-280 Black Mountain Road, from Natoma Road to Altamont Road Blandor Way, from Magdelena Avenue to Olive Tree Lane Briones Way, from Altamont Road to Via Ventana Canario Way, from Visciano Road north to end Conception Road, from Fremont Road to Purissima Road Corte Madera Lane, from Conception Road west to end Dawson Drive, from Magdelena Avenue west to end De Bell Drive, from Manuella Road to Estacada Drive Dianne Drive, from O'Keefe Lane north to end Duval Way, from Robleda Road southwest to end Edith Road, from Fremont Road to bridge El Monte Avenue, from Summerhill Avenue to Elena Road Elena Road Esperanza Drive Fawn Creek Court, from Page Mill Road east to end Foothill Lane, from Elena Road north to end Fremont Pines Lane, from Fremont Road south to end Fremont Road, from Burke Road to La Paloma Road Horseshoe Court, from Arastradero Road south to end Horseshoe Lane, Horseshoe Court west to end La Barranca Road, from Purissima Road to Elena Road La Cresta Court, from La Cresta Drive to end La Cresta Drive, from south end to Arastradero Road Liddicoat Circle Lupine Road, from Page Mill Road west to end Magdelena Avenue, from Eastbrook Avenue to Camino Hermoso Manuella Road, from Fremont Road to Rancho Manuella Road Moody Road, from Elena Road to Tanglewood Lane Murietta Lane, from Moody Road south to end Natoma Road, from Elena Road to Altamont Road Newbridge Drive, from La Paloma east to end Nina Place, from La Cresta Drive west to end O'Keefe Lane, from El Monte Road west to end Paseo del Roble, from Page Mill Road to Page Mill Road Purissima Road, from Robleda Road to Arastradero Road Roble Ladera EXHIBIT G: STREET SWEEPING (Continued) 44 lah\03 agmt\lagco Roble Venento Lane, from Conception Road west to end Robleda Road, from Fremont Road to Elena Road Stonebrook Drive, from El Monte Road to Teresa Drive Story Hill Lane, from Page Mill Road southwest to end Summerhill Avenue, from El Monte Road to Nicole Lane Taaffe Road, from Elena Road to Altamont Road Via Venetana, from Page Mill Road east to end Viscaino Court Viscaino Road, from Conception Road to Purissima Road Via Serena, from O'Keefe Lane north to end Westwind Way, from Conception Road to La Paloma Road Amended May 151 2003 at time of Adoption to include: Voorhees,from El Monte Road to 24704 Voorhees 45 lah\03 agmt\lageo EXHIBIT H. STREETS DEEMED UNSAFE FOR TRUCKS There are no unsafe streets as of May 1, 2003. 46 lah\03 agmt\lagco Resolution No. 23--_0 3 A RESOLUTION OF THE TOWN OF LOS ALTOS HILLS APPROVING AND AUTHORIZING EXECUTION OF AGREEMENT BETWEEN THE TOWN OF LOS ALTOS HILLS AND LOS ALTOS GARBAGE COMPANY WHEREAS, the City Council of the Town of Los Altos Hills ("Town") regulates the collection and disposal of Solid Waste to protect the physical health and safety of its inhabitants: and, Town is acting under clearly expressed policies of the State of California empowering Cities to regulate the collection and disposal of Solid Waste, and Town and Franchisee desire to enter into a Franchise Agreement for the collection and disposal of Solid Waste, recyclables and yard trimmings generated in Town: NOW, THEREFORE, the Town of Los Altos Hills does RESOLVE as follows: 1. Public interest and the physical health and safety of its inhabitants require Town to enter into the Agreement described above. 2. The Town of Los Altos Hills hereby approves the Agreement and the City Manager is hereby authorized on behalf of the Town to execute the Agreement between Town and Los Altos Garbage Company. REGULARLY PASSED AND ADOPTED this JS day of May, 2003. By: Mayor ATTEST• Ci lerlc