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HomeMy WebLinkAboutAgreement for Commercial Recyclables- CITIES OF ARCADIA, DUARTE AND MONROVIA AGREEMENT FOR COLLECTION OF RECYCLABLE MATERIALS FROM COMMERCIAL AND INDUSTRIAL PROPERTIES This Agreement is made and entered into this day of , 1994 by and between the CITIES OF ARCADIA, a municipal corporation, DUARTE, a municipal corporation, and MONROVIA, a municipal corporation, hereinafter referred to as "CITIES" or individually as "CITY" and ZAKAROFF SERVICES a corporation, hereinafter referred to as "CONTRACTOR." WHEREAS, the CITIES desire to enter into an exclusive agreement with CONTRACTOR for the collection of recyclable materials from commercial and industrial properties within the CITIES; and WHEREAS, the parties desire that such exclusivity shall not impair citizens' rights to dispose of their recyclable commodities without the use of CONTRACTOR'S services provided such disposal is done pursuant to this Agreement and each CITY'S "Recycling Ordinance," but rather to prevent the CITIES from contracting with any other party for such collection services; and WHEREAS, the work to be done under this agreement includes the furnishing of all labor, material, and equipment necessary for the collection and marketing of recyclables within the CITIES; NOW THEREFORE, the parties agree as follows: SECTION ONE TERMS AND DEFINITIONS 1.1 Definitions Whenever in the Agreement the following terms are used, they shall be understood to mean the following:, Agreement "Agreement" shall mean this Agreement. Commingled "Commingled Recyclables" shall mean the category Recyclables of solid waste which includes a mixture of food and beverage containers or packaging made of plastic, glass, aluminum, tin or bi -metal intended for recycling or re -use. 9 -0301 1031 -30001 skv 0850959 2 Commercial or "Commercial or Industrial Business Enterprise or Industrial !'Business" shall mean all business, commercial, Business industrial, or non - profit uses or any other types Enterprise or of premises other than single- family and multi - Business family residential, which have commercial garbage accounts, including those who utilize CONTRACTOR'S services and those who opt out from participating in CONTRACTOR'S services. A Business may choose to share recycling service if location, space constraints, volume of recyclables or other considerations so warrant based on the initial waste audit. If so shared, such shared Businesses shall together be deemed one (1) Customer or one (1) Business for purposes of this Agreement. Customer "Customer" shall mean each Commercial Business Enterprise or shared Business which has a commercial garbage account and which utilizes CONTRACTOR'S services as provided in this Agreement. Holiday "Holiday" shall mean New Year's Day, Christmas, Memorial Day, Independence Day, Labor Day and Thanksgiving Day. Green Waste "Greenwaste" shall mean a full 33 gallon container of yard waste material per Customer, including, but not limited to grass clippings and tree and /or plant trimmings as well as wood waste. Minimum "Minimum service level" shall mean collection of Service Level recyclable materials at least once per week in a single 96 gallon recyclable container. Minimum service level shall also include such additional obligations of CONTRACTOR as set forth in Section 2 below. Mixed Waste "Mixed Waste Paper" shall mean the category of Paper solid waste which includes but is not limited to, colored paper limited to, craft paper, white office paper, computer paper, cardboard, magazines, "junk" mail, tab cards, and newspaper. Recycling "Recycling" shall mean the collection of recyclables, and the sale of those items to an agency or organization for the purpose of remanufacturing or reuse. Toxic/ "Toxic /Hazardous Waste" shall be defined under the Hazardous• laws of the State of California and shall include but not be limited to medical waste. 940301 1 0341 -00001 skv 0850959 2 — 2 — Waste Audit_ "Waste Audit" shall mean an assessment of the types and quantities of waste generated by a business and shall include an analysis of the refuse and recyclable materials generated from the premises on which such audit was conducted. Other terms appearing in the Agreement shall have the intent and meaning specified. 1.2 Request for Proposals Incorporated: All provisions of and definitions contained in that certain Request for Proposals for the services provided for in this Agreement dated July 20, 1992) ( "RFP") are hereby incorporated herein. Further all aspects of CONTRACTOR'S response to the RFP ( "Proposal ") are also deemed to be part of this Agreement. In the event of a conflict between this Agreement and the RFP this Agreement shall control. SECTION TWO STANDARDS FOR COLLECTIONS AND OPERATIONS The CONTRACTOR shall be obligated and does hereby agree to do and PERFORM AS FOLLOWS: 2.1 Performance Standard CONTRACTOR shall, on or before the second anniversary of the commencement of service in each CITY, meet or exceed a diversion rate of 400 (the "Diversion Rate ") of each CITY'S commercial and industrial waste (the "Performance Goal "). The Diversion Rate shall be calculated by taking the total tons of any and all materials considered diverted or recycled from the total commercial and industrial waste stream, as set forth in the combined periodic reports of all solid waste hauling, recycling and /or generating entities, including CONTRACTOR, and dividing the resulting numbers by the total tonnage of commercial and industrial solid waste in each CITY. For purposes of this Paragraph 2.1 commercial and industrial solid waste shall include all materials listed in each CITY'S Source Reduction and Recycling Element, including but not limited to varieties of paper, plastics, glass, as well as wood, yard and other Green Waste and manure. 2.2 Collection and Marketing CONTRACTOR shall furnish all labor, material and equipment necessary for, and shall collect and recycle the following: A. Newspaper, mixed waste paper, white paper and computer paper in containers used for the storage of materials, as well as cardboard, glass, tin metal cans, aluminum cans, PET bottles and plastics, HDPE plastics and all other possible recyclable materials in containers used for the storage of materials. 940301 10341 -00001 skv 0850959 2 — 3 — B. Commingled Recyclables in containers used for the storage of materials. C. Green Waste and yard and wood waste in containers used for the storage of material. CONTRACTOR shall provide each CUSTOMER with a container which may range in size from a 33 gallon container to a 3 cubic yard bin for Green Waste (only if Green Waste exists). Commingled Recyclable containers shall range from 96 gallon semi - automated barrels to 3 cubic yard bins. The size of the container and frequency of pick -up shall determine the rate paid by the CUSTOMER. As an additional service, CONTRACTOR will provide "Roll -off" (20 or 40 cubic yard container) and compactor roll -off service to those CUSTOMERS with large volume of material and /or special collection needs. Roll -off service will be provided at an additional cost as set forth in Exhibit A. CONTRACTOR is responsible for the delivery of containers to the collection area. Collection containers must be returned by CONTRACTOR to areas near the solid waste container or other specified areas after collection. 2.3 Collection CONTRACTOR shall furnish all labor, material and equipment necessary for operating a recycling collection program for all CUSTOMERS which meets the requirements set forth in the RFP and is provided for in the Proposal including the following: CONTRACTOR shall collect and recycle materials left in any of the 96 gallon collection containers and 3 yard bins provided for the collection of Commingled Recyclables. Green Waste will be collected and stored in 33 gallon containers unless larger amounts require the use of a 3 -yard bin or a 20 -yard or 40 -yard roll -off container. Collection and processing operations shall include procedures that assure collected materials will have limited contamination levels and will meet the highest possible market specifications set by local and /or international buyers. CONTRACTOR shall collect and recycle newspaper, mixed waste paper, cardboard, paper board, white office paper computer paper, craft paper, colored paper, all glass containers, aluminum cans, tin cans, steel cans, bi -metal cans, plastic containers, film plastics and yard and wood waste. Recyclables will be located`in the recycling containers, supplied by CONTRACTOR. Unless otherwise requested by the CUSTOMER, CONTRACTOR shall make all collections from containers placed in a secure location next to trash containers or in a convenient area near trash collection bins. CONTRACTOR shall collect, transport, separate, process and market any Recyclables collected. There shall be no limit to the amount of Recyclables provided CONTRACTOR shall be compensated according 940301 10341 -00001 skv 0850959 2 — 4 — to the rate schedules set forth in Exhibit A for any increase in Recyclables collected. CONTRACTOR shall also dispose, at CONTRACTOR'S expense, all residual material resulting from collection. There shall be no limit to the amount of residual material which must be disposed at a permitted landfill incinerator or disposal facility, except that in the event the amount of residue exceeds 200, based on CONTRACTOR'S periodic waste characterization, CUSTOMER shall pay an additional charge equal to one times the percentage of residue multiplied by CUSTOMERS monthly charge for CONTRACTOR'S services (the "Non Compliance Adjustment "). The Non Compliance Adjustment shall not be charged to CUSTOMERS during the first six months of this Agreement, and shall thereafter only be applicable after the CUSTOMER has been given at least one warning of CUSTOMER'S non compliance during the six months preceding the assessment of the Non Compliance Adjustment. CONTRACTOR shall provide the necessary supervised labor for the collection, processing and marketing of Recyclables. CONTRACTOR also agrees to designate a field supervisor experienced with recycling collection programs. A communications system must be developed and implemented to access all field personnel to relay information such as missed pick -ups. Staff or field personnel must be available by telephone during the hours of 8:00 am - 5:00 pm Monday through Friday. 2.4 Frequency of Collection CONTRACTOR shall collect Commingled Recyclables and Green Waste once each week per CUSTOMER, unless additional collections are otherwise requested and paid for by the CUSTOMER. CONTRACTOR may operate in the CITIES up to six days a week. CONTRACTOR may collect materials one day prior to or after the observed Holiday if the collection day falls on a Holiday. However, no collection activity shall take place on Sunday. CONTRACTOR must make the CUSTOMERS aware of the change in the collection schedule as a result of a Holidays, and must provide CUSTOMERS with at least 30 days prior notice of any change in the collection schedule. CONTRACTOR will be responsible for providing additional collection service for Commingled Recyclables as directed by CUSTOMER. Requests for collection from CUSTOMERS with "overflowing" bins or missed pick -ups must be serviced within 24 hours of notice of service or notice of missed collection. CONTRACTOR'S hours for the collection of materials shall be from 7:00 am to 6:00 pm Monday through Saturday, except as may otherwise be required in residential areas by each of the CITIES' ordinances. 2.5 Service of Containers CONTRACTOR will be responsible for the proper placement of containers after collection and will return recycling containers to their proper location. 940301 1 0341 -00001 skv 0850959 2 — 5 — CONTRACTOR will be responsible for the maintenance of all areas around or near collection bins. CONTRACTOR shall not be responsible for non - recyclable solid waste that is intended for placement in a solid waste container but is left near or around collection containers. CONTRACTOR shall be responsible for reporting any toxic /hazardous wastes found near or inside containers. Any containers that are not collected due to the presence of toxic /hazardous wastes must be sealed by means of tape and marked to notify the public of the hazard. All instances regarding toxic /hazardous wastes must be reported to the person designated by each CITY to review and coordinate any and all information relating to this Agreement (the "Waste Manager ") as soon as possible and not more than two hours after toxic /hazardous wastes have been encountered. CONTRACTOR shall service containers within twenty -four (24) hours after notification by the waste Manager that any reported toxic /hazardous wastes have been removed by the CITIES. CONTRACTOR will be responsible for maintaining, cleaning and replacing containers as reasonably directed by the CUSTOMERS. CONTRACTOR may charge additional amounts for services outside the scope of normal maintenance such as steam cleaning of container, a schedule of such additional charges shall be provided to each of the Cities prior to any such charge being applied to a CUSTOMER. CONTRACTOR must deliver containers at the start of the program and as agreed to by the CUSTOMER, or as otherwise set forth in the Proposal. CONTRACTOR shall move collection containers from the specified location to an area where they can be serviced. Barrels left indoors will be charged accordingly. 2.6 Processing, Marketing and Disposal CONTRACTOR shall collect and process materials in a way that will increase marketability and /or comply with the highest possible quality specifications set by markets. In cases where materials are considered contaminated or are rejected from market, for any reason, the CONTRACTOR will be responsible for undertaking reasonable measures to upgrade materials to market standards. CONTRACTOR will be responsible for the storage, at CONTRACTOR'S expense, of materials until a market is located. Storage of materials must be in compliance with all local, State and federal laws and /or regulations regarding material storage. CONTRACTOR must utilize all reasonable measures to upgrade materials and /or seek recycling markets for materials. Once all available measures to upgrade materials or locate markets have been exhausted CONTRACTOR must notify the Cities of its intent to dispose of the materials at a permitted landfill, incinerator or disposal facility. 940301 10341 -00001 skv 0850959 2 — 6 — CONTRACTOR shall market all collected and processed materials. CONTRACTOR is responsible for providing all equipment necessary to market materials. 2.7 Reporting Requirements CONTRACTOR is responsible for all reporting procedures as outlined in the RFP and Proposal. CONTRACTOR shall conduct quarterly waste composition studies to identify the types and amounts of recyclable materials collected from CUSTOMERS. CONTRACTOR shall maintain a journal, which may be audited, recording each instance that Commingled Recyclables are not collected. The report shall include but is not limited to: the name (if known), address and reason of non - collection, the form of notification used to inform the CUSTOMER of the reasons of non - collection and the end result of the incident. CONTRACTOR shall maintain an auditable journal recording complaints and shall maintain records of actions taken to respond to complaints. CONTRACTOR shall submit quarterly reports provided for in the RFP and Proposal. The quarterly reports shall identify participation and tonnages by material types, revenues and market specifics, and measurement towards attaining the Performance Standard. CONTRACTOR shall submit an annual report which summarizes the previous year's activity and presents any corrective or contingency measures needed to improve the effectiveness of the program. CONTRACTOR shall provide with each quarterly report, a list of contacts, volunteers, interested CUSTOMERS, program coordinators or other individuals contacted by CONTRACTOR who are interested in assisting with the development of the program. 2.8 Waste Audits A. Initial Waste Audit An initial waste audit shall be performed by CONTRACTOR for each CUSTOMER prior to establishing recycling service to determine the appropriate service level and for each Business which requests to opt out of CONTRACTOR'S program. B. Opting Out Businesses If a Business chooses to opt out of CONTRACTOR'S recycling services, CITY shall require a waste audit to be performed to ensure compliance. If, as a result of the waste audit, it is determined that less than ninety percent (90 %), by aggregate, of all types of recyclable materials are diverted,*CITY shall require the Business to utilize CONTRACTOR'S services and pay for the appropriate service level based on the waste audit. CONTRACTOR shall not be compensated for performing any waste audit at the Santa Anita Race Track. Said 940301 10341 -00001 skv 0850959 2 — 7 Race Track shall not be counted toward the ten percent (10 %) opt out provisions, and shall be conclusively deemed by the parties to meet all performance standards for Businesses which opt out, including the requirement that ninety percent (90 %) by aggregate, of Santa Anita Race Track's refuse stream is recycled as defined in Section 2.2 A, B, and C. C. Payment for Waste Audits CONTRACTOR shall not be compensated for conducting the initial waste audits. CONTRACTOR shall be compensated for performing quarterly waste audits of Businesses which opt out only if ten percent (10 %) or more of the Businesses in the affected CITY opt out of CONTRACTOR'S recycling services. The amount of compensation for such waste audits shall be at the rate of $4.50 per cubic yard per quarter of all solid waste and recyclable materials generated by the audited Business. D. CONTRACTOR to Perform Except as provided herein for Santa Anita Race Track, all waste audits shall be performed by CONTRACTOR and CITIES shall not contract with or compensate any other person or entity to conduct such waste audits. 2.9 Education CONTRACTOR shall provide education programs consistent with the requirements set forth in the RFP and provided for in the Proposal. CONTRACTOR shall further provide all notices prescribed in the RFP and agreed to in the Proposal. All elements of the educational program must be reviewed and approved by the CITIES. The CITIES agree to provide CONTRACTOR with a determination regarding the educational program within ten (10) business days after it has been submitted for review. Failure to provide a determination within the time period specified shall be deemed approval. The CONTRACTOR shall show satisfactory proof to the CITIES that the notices were delivered as required. The CONTRACTOR shall also promote the program in each CITY by means of advertisements published once a week for two (2) consecutive weeks in one or more newspapers of general circulation within the CITIES, starting two weeks prior to beginning of each program. Said published advertisement shall contain the name, address and phone number of the CONTRACTOR. CONTRACTOR shall deliver and distribute promotional materials to each CUSTOMER participating in the program, at least two weeks prior to delivery of containers. CONTRACTOR shall include information regarding products made of post consumer materials and shall also include information regarding the availability of these materials which includes a listing of local retailers who market materials made of post consumer materials. 940301 10341 -00001 skv 0 850959 2 — 8 — CONTRACTOR shall be responsible for the preparation and distribution of promotional brochures and /or fliers to all CUSTOMERS. 2.10 Equipment Specifications CONTRACTOR shall assure that containers and equipment meet specifications and requirements of the RFP and Proposal, as well as all Fire and Safety codes. CONTRACTOR shall provide uniforms for staff collecting materials. Each uniform must indicate the name of the employee and the business name of CONTRACTOR. CONTRACTOR shall equip each collection vehicle with a broom, shovel, trash bags, notice of non - collection tags, masking tape and first aid kit at all times. CONTRACTOR shall provide all necessary vehicles and equipment to store, collect, transport, market and process materials. CONTRACTOR shall maintain an office in the Los Angeles County area. The location and phone number for this office must be listed in the phone book of each of the CITIES and an employee must be available by phone during the hours of 8:00 am 5:00 pm Monday - Friday. 2.11 Liability CONTRACTOR shall be responsible for all property supplied to collect recyclable material. CONTRACTOR will be responsible for the prompt and timely payment for broken, lost, stolen or damaged property of the CITIES or private property. CONTRACTOR will also be liable for any damages to privately owned property as a result of CONTRACTOR'S operational procedures, however, CONTRACTOR shall not be responsible for broken pavement or damage to driveways or streets within the public right of way due to the weight of CONTRACTOR'S equipment, unless specific weight limits are posted in a manner visible to CONTRACTOR'S employees. 2.12 Additional CONTRACTOR shall provide any additional work or equipment as outlined in the Proposal. 2.13 Failure to Collect Should CONTRACTOR fail to collect Commingled Recyclables placed for collection as herein provided, by the end of the day designated for collection and recycling of the material, or within 24 hours of notification of such failure to collect, the CITIES may collect and recycle the same and CONTRACTOR shall be liable for all expenses incurred including, but not limited to, transportation, labor, administration and legal costs. Reimbursement to the CITIES for such expenses will be paid by CONTRACTOR or assessed as liquidated damages. 2.14 Field Supervisor The CONTRACTOR shall assign a field supervisor whose responsibility it shall be to represent the CONTRACTOR'S operation in the field. 940301 10341 -00001 skv 0850959 2 — 9 — Such supervisor shall serve as liaison to the CONTRACTOR'S crews in the field and the CITIES. The field supervisor shall spend as much time supervising the collection routes as is needed to accomplish the provisions of these specifications and contract. 2.15 Office For Inquiries and Complaints The CONTRACTOR shall equip all trucks, including the Field Supervisor's vehicle, with two -way radio communications with CONTRACTOR'S office. Complaints received by the CONTRACTOR, either directly from the CUSTOMER or the CITIES, must be resolved within 24 hours from the time of the complaint. CONTRACTOR shall provide the CITIES with an emergency telephone number that can be reached 24 hours a day. 2.16 Independent Contractor Status The CONTRACTOR shall be an Independent Contractor and not an Agent or employee of the CITIES. CONTRACTOR shall have no authority to make any contracts or legal commitments on behalf of the CITIES. SECTION THREE CONTRACTOR'S OBLIGATIONS CONTRACTOR shall perform hereunder pursuant to the following 3.1 Records CONTRACTOR shall provide the CITIES with a copy of its annual financial statements as reported on by a certified public accountant who has annexed his or her Unqualified opinion thereto in compliance with Rule 58.1 of the "Rules and Regulations of the State Board of Accountancy" as established by the California Code of Regulations, Title 16, Chapter 1. Such certified public accountant shall not be an employee of the CONTRACTOR and shall have no financial interest whatsoever in the business of CONTRACTOR. Notwithstanding any applicable provisions of law, said financial statements shall be kept confidential by the CITIES except (1) financial information specifically submitted in support of an application for a rate increase or (2) as otherwise directed by a court of competent jurisdiction. The CITIES may specify the form and detail of such statements. In the event that the financial statements are not provided by the CONTRACTOR pursuant to this Agreement, the CITIES reserve the right to employ at the CONTRACTOR'S expense a certified public accountant to report on such statements. Nothing stated herein shall be deemed to abrogate any provision of the California Public Records Act. 3.2 Compliance With All Laws The CONTRACTOR shall comply with each of the CITIES' Ordinances, State Vehicle Codes, and all conditions and limitations in any permits or licenses under which the CONTRACTOR operates. CONTRACTOR shall also comply with all State and Federal laws regarding the collection, transportation, marketing and disposal of solid waste and recyclables. 940301 10341-00001 skv 0850959 2 — 10 — 3.3 Storage of Vehicles CONTRACTOR shall not store any vehicle on any public street or other public property in the CITIES. 3.4 Transfer of Loads on Public Streets CONTRACTOR shall not transfer any load from one collection vehicle to another on any public street or road unless transfer is essential to the method of operation and is approved by the Waste Manager, or is necessary owing to mechanical failure or accidental damage to a collection vehicle. 3.5 Noise Level All collections shall be made as quietly as possible, and CONTRACTOR shall ensure that collections shall not cause the ambient noise level to exceed 75 decibels when measured at a distance of 25 feet from the collection activity or such higher decibel figure as may be set by CITY ordinance. 3.6 CONTRACTOR'S Employees Wages CONTRACTOR shall pay wages to its employees in accordance with Sections 1770 and 1773 of the Labor Code of the State of California. 3.7 Non - Discrimination CONTRACTOR shall not discriminate in the hiring of employees or in the employment of subcontractors on the basis of race, religion or gender or any other basis prohibited by law. SECTION FOUR CITIES' OBLIGATIONS 4.1 Establishment of Ordinances Each CITY shall establish ordinances which require participation in recycling by Businesses ( "the Recycling Ordinances "). Such ordinances shall obligate Businesses to establish recycling programs for all recyclable materials, including but not limited to Commingled Recyclables, Mixed Waste Paper and Green Waste. In accordance with each CITY'S specified procedures, the Recycling Ordinances may allow a CITY to place a lien on the property and /or rescind the business license of any Business which does not comply with said Ordinance. Notwithstanding the foregoing, the Recycling Ordinances may permit Businesses to sell, donate or pay to either a charitable organization or another recycling company for such Business' recyclable materials and thereby opt out of participation in CONTRACTOR'S recycling services, provided that such Businesses shall prove to the satisfaction of the CITY that ninety percent (900), by aggregate, of all types of recyclable materials required to be diverted pursuant to this Agreement are being diverted from such Business' refuse stream. The Recycling Ordinances shall also provide for additional anti - scavenging regulations whereby individuals will be subject to fines and penalties for removal of recyclables from recycling containers. 940301 10341 -00001 skv O850959 2 — 11 — The Recycling Ordinances shall also require any Business opting out of CONTRACTOR'S services to provide the CITY with quarterly reports on a form provided by the CITY concerning their waste diversion, including the type and estimated amount of each product sold, donated or provided for a fee to any charity or other recycling company. The Recycling Ordinances shall also require any recycling company or waste hauler removing recyclables from the waste stream to report such diversion to the CITY and indicate the type and amount of material diverted on a quarterly basis`. The forms referred to in this Section shall be in a format substantially as set forth in Exhibit "B ", attached hereto and incorporated herein by this reference. 4.2 Use of Public Facilities CITY shall allow CONTRACTOR access to public facilities, such as auditoriums, parks or community meeting rooms, at no charge, provided no other event is scheduled and CONTRACTOR has made a request to use such facilities within a reasonable time period prior to CONTRACTOR'S scheduled event. CONTRACTOR'S use of the public facilities shall be for educational purposes or other events which promote the Cities' recycling efforts. 4.3 Additional Assistance The CITIES shall provide the CONTRACTOR, whenever possible, additional assistance by providing services which may include, but not be limited to, the following: A. Provide letters of support and explanation as "stuffers" to CONTRACTOR'S first billing statements. B. Provide announcements in CUSTOMERS' utility bills. C. Provide a liaison between CONTRACTOR and the Chamber of Commerce and other merchant associations. D. Provide booth space at public festivals. E. Provide volunteers for educational programs. F. Explore creation of a recycling task force. G. Provide CONTRACTOR with a list of businesses in the CITY which includes addresses, phone numbers and the name of a principal contact. SECTION FIVE BREACH AND TERMINATION 5.1 ' Failure to Perform All terms, provisions and specifications of this Agreement are material and binding, and failure to perform any portion of the work described herein shall be considered a breach of this Agreement. Should the Agreement be breached in any manner, the CITIES may, at their option, 940301 10341 -00001 skv 0850959 2 — 12 — terminate the Agreement not less than (60) days after written notification is -given to CONTRACTOR to remedy the violation within the stated time. In the event a breach does not result in termination, but does result in costs being incurred by the CITIES, said costs shall be charged to CONTRACTOR. The provisions of the preceding paragraph shall not be exclusive but shall be cumulative and in addition to any other remedies provided hereunder or pursuant to law. 5.2 Default by Cities In the event that any CITY defaults under any of its obligation under the terms of this Agreement, CONTRACTOR shall have the right to terminate this Agreement as it relates to such CITY, upon 60 days prior written notice to the CITY, provided that the CITY has not cured such default within that time period. SECTION S TERM & ASSIGNMENT 6.1 Term of Agreement This Agreement shall become effective pursuant to paragraph 10.3 below for a term of five years (the "Initial Term "). At the end of the Initial Term and continuing thereafter, this Agreement shall automatically renew every two years provided CONTRACTOR has met the Performance Goals set forth in Paragraph 2.1, above, for year five of the Initial Term and continues to do so each year thereafter. In the event CONTRACTOR fails to meet the Performance Goal above, in any year after the second anniversary of the "Commencement Date," as defined below, each of the CITIES may terminate this Agreement upon 90 days' prior written notice to CONTRACTOR. Notwith- standing the foregoing, if CONTRACTOR meets or exceeds the Performance Goal, then commencing on the third anniversary of this Agreement, the CITIES may only terminate this Agreement upon giving two years prior written notice to CONTRACTOR. 6.2 Assignment of Agreement CONTRACTOR shall not assign, subcontract or otherwise delegate authority to perform any portion of this Agreement, unless to a subsidiary wholly owned by CONTRACTOR, without the prior express written consent of the CITIES. Neither shall any interest in this Agreement of any right or privilege accruing to CONTRACTOR under the terms of the Agreement be so assigned. In the event of any assignment duly authorized by the CITIES, the Assignee shall assume liability of CONTRACTOR. For purposes of this paragraph 6.2, an assignment of this Agreement shall be deemed to be made if CONTRACTOR sells, grants or merges a majority interest in its ownership to any entity which it or its principal shareholder does not own or control. 6.3 Bankruptcy If CONTRACTOR shall at any time during the term of the Agreement become insolvent, or if proceedings in 940301 10341 -00001 skv 0850959 2 — 13 — bankruptcy shall be instituted by or against CONTRACTOR, or if CONTRACTOR shall be adjudged bankrupt or insolvent by any court, or if a trustee in bankruptcy or a receiver of any CONTRACTOR shall be appointed in an suit or property of CONTRACTOR shall be appointed in any suit or proceeding brought by or against CONTRACTOR, or if CONTRACTOR shall make an assignment for the benefit of creditors, then in each and every such case, this Agreement shall immediately cease, terminate, and be canceled upon written notice by the CITIES and without the necessity of suit or other proceeding. SECTION SEVEN SPECIAL PROVISIONS AND CONDITIONS 7.1 Force Majeure CONTRACTOR'S work and service obligations provided herein shall be excused for such time that meeting such obligation is impossible due to a natural disaster. The standards shall also be waived for such time and in such areas that the streets are not in condition to permit the safe passage of CONTRACTOR'S vehicles. Work and service shall continue within twenty -four (24) hours upon determination that streets are in a condition to permit safe passage of CONTRACTOR'S vehicles. Additional work to be performed as a result of a natural disaster shall be in accordance to the standards set forth in this Agreement. Labor disturbances, labor strikes, and shortages of gasoline and diesel fuel shall be considered circumstances for which the obligations contained in this Agreement shall be waived during the pending of such circumstances. 7.2 Compliance with All Laws CONTRACTOR agrees to handle, transport, and dispose of all solid waste /recyclables and to perform all of the service on its part as required by the provisions of this Agreement, in -a careful manner, and in accordance with all laws, ordinances, and regulations of the United States, State of California, and the CITIES. 7.3 CITIES' Licenses CONTRACTOR shall be required to pay all normal business license fees and such other fees or taxes the CITIES may assess provided such fees and /or taxes are assessed solely as a pass- through to the CUSTOMERS and not the payment responsibility of the CONTRACTOR. 7.4 Wages, Salaries, Taxes, Etc CONTRACTOR shall exonerate, defend, indemnify and hold harmless the CITIES, their employees and agents, and.shall assume full responsibility for payment of all wages or salaries and all Federal, State and local taxes or contributions, including but not limited to, those imposed and required under the Unemployment Insurance, Social Security, Income Tax laws and Workers' Compensation laws with respect to CONTRACTOR'S employees engaged in the performance of CONTRACTOR'S obligations hereunder. 940301 10341 -00001 skv 0850959 2 — 14 — 7.5 Changes The CITIES may at any time by written order modify CONTRACTOR'S obligation or the standards under which CONTRACTOR is to perform its services. If any such modification causes an increase or decrease in the per unit rate provided for in the Proposal, or the time required for, performance of this Agreement, an equitable adjustment shall be made in the per unit rate provided. Any claim by CONTRACTOR for adjustment under this paragraph must be asserted within thirty (30) days form the date of receipt by CONTRACTOR of the notification of modifications. 7.6 Ownership of Equipment The CONTRACTOR shall own or lease and maintain at its expense all equipment necessary to perform its duties as provided for under this Agreement, including sufficient radio equipment for office -to -field communication. CONTRACTOR shall only be obligated to replace containers once per year free of charge. In the event CUSTOMER loses containers more than once per year, CUSTOMER shall pay CONTRACTOR for the replacement of such container AT CUSTOMER'S cost. 7.7 Non - Waiver No acquiescence, failure or neglect of either party hereto to insist upon strict performance of any or all of the provisions of this Agreement shall be construed to constitute a waiver of any term, condition, or provision of this Agreement nor of any performance required hereunder, nor of any remedy, damage or other liability arising as a result of any failure of performance, neglect, or inability to perform at any time. 7.8 Verbal Unofficial or Unauthorized Agreements No oral agreement or conversation with any officers, agents or employees of the CITIES, either before or after the execution of this Agreement, shall affect or modify any of the terms or obligations contained in this Agreement. Any such oral agreement or conversation shall be considered as unofficial information and in no way binding upon the CITIES. 7.9 Attorneys Fees and Enforcement If any action at law or suit in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees in addition to any other relief to which it may be entitled. SECTION EIGHT CHARGES AND COLLECTIONS /NON- PAYMENT 8.1 Compensation and Rate Adjustments CUSTOMERS shall pay CONTRACTOR monthly compensation for CONTRACTOR'S services in accordance with the rates set forth in the Exhibit "A," which exhibit is attached hereto and made a part hereof by this reference. 940301 10341 -00001 skv 0850959 2 — 15 — A. Billing Procedure: CONTRACTOR shall bill CUSTOMERS by the 5th of each month prior to month of service and payment shall be due within Fifteen (15) days upon receipt of invoice. 8.2 Basis for Adjustments The per -unit rate set forth in this Agreement and any renewals or extension thereof shall be increased on the anniversary of the "Commencement Date," as defined below, pursuant to the following formula: The adjusted per -unit rate shall be determined by multiplying the existing per -unit rate by 1 plus the cumulative total of: A. The percentage change in the Consumer Price Index ( "CPI") for Urban Population /Los Angeles - All Urban Consumers as published by the U.S. Department of Labor, Bureau of Labor Statistics, multiplied by .43; plus B. The percentage change in the CPI for Urban Population /U.S. CITY Average For Gasoline - All Urban Consumers multiplied by .08; plus C. The percentage change in CONTRACTOR'S tipping fee at landfills utilized by CONTRACTOR multiplied by .10; plus D. The percentage change in the average annual tipping fee for commingled commercial recyclables at three Material Recovery Facilities (MRF) mutually agreed upon by CONTRACTOR and the Cities as representative of the market for such services in Los Angeles County multiplied by .39. By way of example, if the CPI for labor and gasoline increased by 10% and 15% respectively, and CONTRACTOR'S landfill costs went up by 20% and there was a 5% average increase in MRF costs, CONTRACTOR'S annual adjustment would be 9.45% derived by the following equation: .10 X .43 = .043 .15 X .08 = .012 .20 X .10 = .02 05 X .39 = .0195 .043 + .012 + .02 + 0195 = .0945 or 9.45% In the event CONTRACTOR believes that there has been substantial cost increases during any given year, CONTRACTOR may petition the CITY for an increase based on the foregoing formula prior to the annual adjustment. Such petition shall be in writing and may not be done more than once annually in addition to the scheduled increase set forth above. 940301 10341 -00001 skv 0850959 2 — 16 — S ECTION NINE INSURANCE PROVISIONS 9.1 Types Required With respect to performance of work under this Agreement, CONTRACTOR shall maintain and shall require all of its subcontractors to maintain insurance as described below: A. Worker's compensation insurance with statutory limits, and employer's liability insurance with limits of not less than $1,000,000 per accident. B. Comprehensive general liability insurance with a combined single limit of not less than $4,000,000 per occurrence. Such insurance shall include products /completed operations liability, owner's and CONTRACTOR'S protective, blanket contractual liability, personal injury liability, broad form property damage coverage and explosion, collapse and underground hazard coverage. Such insurance shall (a) name the CITIES, their appointed and elected officials, officers, employees and agents as additional insureds; and (b) be primary with respect to any insurance or self - insurance programs maintained by the CITIES; and (c) contain standard cross liability provisions. C. Comprehensive automobile liability insurance with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. 9.2 Certificates Required CONTRACTOR shall (a) furnish properly executed certificates of insurance to the CITIES prior to commencement of work under this Agreement, which certificates shall clearly evidence all coverages required above and provide that such insurance shall not be materially changed, terminated or allowed to expire except on 30 days prior written notice to the CITIES; and (b) maintain such insurance from the time work first commences until completion of the work under the Agreement; and (c) replace such certificates for policies expiring prior to completion of work under the Agreement. 9.3 Failure to Provide If CONTRACTOR, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. The CITIES, at their sole option, may forthwith terminate the Agreement and obtain damages from the CONTRACTOR resulting from said breach. 9.4 Indemnity Provision. Notwithstanding the existence of insurance coverage required of CONTRACTOR pursuant to this Agreement, CONTRACTOR shall save, keep, indemnify, hold harmless, and defend the CITIES and their appointed and elected officials, officers, employees, and agents, from any claim or demand made 940301 10341 -00001 skv 0850959 2 — 17 — and any liability, loss, damage or expense of any nature whatsoever and all costs or expenses incurred in connection therewith, which arise at any time, by reason of damage to the property of, or personal injury to, any person, occurring or arising out of the performance of CONTRACTOR, its officers, agents or employees, including, but not limited to, its subcontractors (hereinafter collectively "CONTRACTOR "), of the work required pursuant to this Agreement, occasioned by any alleged or actual wrongful act or omission by the CONTRACTOR including but not limited to any such liability imposed in consequence of the use in the performance of CONTRACTOR of the work hereunder of any article or material supplied or installed pursuant to a contract with the CITIES. A. CONTRACTOR shall defend any action or actions filed in connection with any of said claims, damages, penalties, obligations or liabilities and will pay all costs and expenses, including attorneys' fees incurred in connection herewith. B. CONTRACTOR shall promptly pay any judgment rendered against CITY, its officers, agents of employees for any such claims, damages, penalties, obligations or liabilities; and, C. In the event the CITIES, their officers, agents or employees are made party to any action or proceeding filed or prosecuted against CONTRACTOR for such damages or other claims arising out of or in connection with the wrongful acts of CONTRACTOR hereunder, CONTRACTOR agrees to pay the CITIES, their officers, agents, or employees, any and all costs and expenses incurred by the CITIES, their officers, agents or employees in such action or proceeding, including but not Limited to, reasonable attorney's fees. 9.5 Indemnification CONTRACTOR shall indemnify the CITIES, defend, protect and hold harmless the CITIES, their officers, employees, agents and assigns not limited to natural resources damage, punitive damages, response remediation and removal costs, CERCLA related liabilities, causes of action, legal or administrative proceedings, interest, penalties and expenses (including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against the CITIES or their officers, employees, and agents arising from or attributable in any manner to the CONTRACTOR'S performance of this Agreement up to a maximum amount of one million dollars ($1,000,000) per CITY. The foregoing indemnity is intended to operate as an agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607(e), and California Health and Safety Code section 25364, to insure, protect, hold harmless, and indemnify the CITIES from CERCLA related liability. 940301 10341 -00001 skv 0850959 2 — 18 — SECTION TEN MISCELLANEOUS PROVISIONS 10.1 Joint Powers Agreement This Agreement shall be considered a cooperative effort by and between the CITIES as authorized under the State of California Government Code, and shall obligate each of the CITIES to work together in ensuring the success of the programs established hereunder, as well as to pass such legislation as may be necessary to carry out each CITIES' obligations hereunder. 10.2 No Joint and Several Liability This Agreement shall not be construed as to establish any joint or several liability on the part of the CITIES for any of the CITIES' obligations hereunder, or for the payment of any amounts owed by any of the CUSTOMERS. By way of example, in the event the CITY of Duarte decides to terminate this Agreement, the Cities of Monrovia and Arcadia shall not be responsible for the loss of profits of CONTRACTOR due to such termination. 10.3 Effectiveness This Agreement shall be deemed effective as to each of the CITIES, and the term shall commence, as it relates to each CITY, thirty (30) days after the approval by each CITY Council and execution by the respective mayor (the "Commencement Date' "). 10.4 Entire Agreement This Agreement supersedes all prior proposals, agreements, and understandings between the parties and may not be modified or terminated orally, and no modification, termination or attempted waiver of any of the provisions hereof shall be binding unless in writing and signed by the party against whom the same is sought to be enforced. 940301 10341 -00001 skv 0850959 2 — 19 — 10.5 Governing Law This Agreement shall be governed by the laws of the State of California. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. CITY OF ARCADIA BY: M OR CITY OF DUARTE WA ATTEST + CITY CLERK CITY OF MONROVIA BY: / "— ATTEST: CITY CLERK APPROVED AS TO FORM: CITY A TORNEY OF: BY: CITY ATTORNEY OF: r BY CITY ATTORNEY OF: V f'U Ll ATTEST: Qi. I CITY CLERK ZAKAROFF SERVICES BY: ROUBEN DILIAN, PRESIDENT 940301 10341 -00001 skv 0850959 2 — 20 — NOTICE OF PUBLIC HEARING BEFORE THE ARCADIA CITY COUNCIL NOTICE IS HEREBY GIVEN that on TUESDAY, MARCH 15, 1994, at 7:30 p.m. in the Arcadia City Hall Council Chambers, 240 West Huntington Drive, Arcadia, California, a public hearing will be held by and before the City Council in consideration of AMENDED AGREEMENT FOR COLLECTION OF RECYCLABLE MATERIALS FROM COMMERCIAL AND INDUSTRIAL PROPERTIES and the reintroduction of ORDINANCE NO. 2000 AMENDING THE ARCADIA MUNICIPAL CODE BY ADDING PART 3 TO CHAPTER 1 OF ARTICLE V TO IMPLEMENT AND PROVIDE REGULATIONS FOR A COMMERCIAL AND INDUSTRIAL RECYCLING PROGRAM. At said time and place an opportunity will be afforded all those interested and the public in general to be heard. For additional information please contact Tamara Gates at (818) 574 -5436 in the City Manager's Office, Solid Waste Division, at City Hall, Monday through Friday, between the hours of 8:00 a.m. and 5:00 p.m. June D. Alf City Clerk Dated: February 24, 1994 Publish: March 3, 1994