Agenda Packets - Board - 2004-09-02Board of'Direetors
Arlene Schafer
Greg Woodside
James Ferrvnan
Art Perry
Dan Worthington
Staff
Robin B. Harners
Manager
District Engineer
(949) 631 -1731
Thomas A. Fauth
Assistant Manager
(714) 754 -5043
Joan Revak
Clerk of the District
(714) 754 -5087
Fax
(714) 432 -1436
Mailing Address
P. O. Box 1200
Costa Mesa, CA
92628 -1200
Street Address
77 Fair Drive
Costa Mesa, CA
92626 -6520
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NOTICE OF SPECIAL MEETING
COSTA MESA SANITARY DISTRICT
BOARD OF DIRECTORS
SEPTEMBER 2, 2004
The Board of Directors of the Costa Mesa Sanitary District
will meet on Thursday, September 2, 2004 at 6:00 p.m., in
Conference Room 1A at the Costa Mesa Civic Center, 77
Fair Drive, Costa Mesa, California to consider the following:
I. Public Comments
II. Authorization for Costa Mesa Disposal to Begin
Fully- Automated Trash Collection
Dated: August 30, 2004
?Jz� &J
Clerk of the District
Protecting our communitv,s beaft6 wN provibing solid waste anb sewer cof(ection services.
costamesasanitarvgbistrict.org
COSTA 911ESASA997ART�D7,sTqtTCr
Memorandum
... an Independent Specia[District
To: Board of Directors
From: Robin B. Hamers, Manager /District Engineer
Date: September 1, 2004
Subject: Approval of Major Points and Implementation of Fully Automated
Collection by Costa Mesa Disposal
The following report has been prepared for the Special Board Meeting on September 2,
2004 when the Board will consider converting the current semi - automated trash
collection program to fully automated collection.
I. Recommendation
The CMSD ad -hoc committee recommends the full Board of Directors authorize Costa
Mesa Disposal, Inc. (CMD) to begin converting the semi - automated collection program
to fully automated collection. As a condition of authorizing CMD to begin the conversion
at this time, Costa Mesa Disposal shall agree to the points outlined in this report and
shall agree to execute a formal agreement with the Costa Mesa Sanitary District.
At the ad -hoc committee meeting on August 17, 2004, David Ronnenberg of CMD and
CR &R agreed to these points and restated CMD's commitment to converting the existing
semi - automated collection program to fully automated, including providing its usual full
complement of related services, at no cost to the District.
II. Background
The Board of Directors has been considering the conversion to fully automated
collection since mid 2003 when the Board was informed that CR &R would be purchasing
100% of the Costa Mesa Disposal stock on or around December 30, 2003. The obvious
implication of this purchase was the potential conversion to fully automated service
because CR &R provides fully automated service to all 200,000 residential parcels it
serves. In addition to providing fully automated collection, CR &R has a successful
history of providing the components of a complete trash collection program including
administrative services, education, special services, and support for the agencies and
their programs.
(Protecting our community's health 6y providing solid waste and sewer coffection services.
costamesasanitarydiistrict, org
Approval of Major Points and Implementation of September 1, 2004
Fully Automated Collection by Costa Mesa Disposal Page 2
III. Commitments made by CMD
On March 29, 2004, David Ronnenberg and Dan Otting of Costa Mesa Disposal and
CR &R gave a visual presentation to the Board that offered the conversion of the semi -
automated collection system to fully automated collection along with providing the
comprehensive services available from CR &R at no cost to the District. In a letter dated
July 1, 2004, Costa Mesa Disposal reiterated its commitment of providing fully
automated service for the District at no cost. As stated above, at the CMSD ad -hoc
committee meeting held August 17, 2004, David Ronnenberg again made this same
commitment.
IV. Ad -hoc Committee Discussions and Recommendations
The ad -hoc committee consists of Director Worthington, Director Perry, the
Manager /District Engineer, the Assistant Manager, and the Board Secretary/Program
Manager. The committee found everything is currently in place to begin the conversion
to fully automated collection with the exception of two items: implementing a variable
rate structure and how to handle trash left outside the containers. Additionally, the
District's Ordinances will need to be revised.
• Variable Rate Structure
The District is hampered in its attempt to institute a variable rate structure due to
utilizing the Orange County Assessor to collect the yearly trash collection charges
for each parcel. The charges are determined once per year, placed on the tax bill
as a separate line item, and then collected in the two installment payments made
by property owners. Quarterly billing for each parcel from either the District or the
hauler is necessary to provide flexibility in applying charges as a resident changes
service levels.
The ad -hoc committee recommends the subject remain under study and that as
an initial step the Board consider an end of year refund program for residents
using only one 35 gallon container or one 60 gallon container. The committee
concluded that two 60 gallon containers or two 90 gallon containers at a
residence is the average service level.
• Trash Left Outside the Containers
The ad -hoc committee discussed this subject at length including the options of 1)
collecting the extra bags at no charge, 2) attempting to educate residents in order
to minimize trash left outside the containers, 3) charging residents through a
colored bag or approved sticker program, or 4) refusing to collect trash left
outside the containers.
Approval of Major Points and Implementation of September 1, 2004
Fully Automated Collection by Costa Mesa Disposal Page 3
Because the subject is very sensitive to residents, the ad -hoc committee
recommends instituting fully automated collection prior to establishing a policy on
trash left outside the container. The incidences of excess trash may then be
judged in total prior to forming a policy. Until such time as a new policy is
adopted, Costa Mesa Disposal shall collect all excess trash left outside the
containers.
V. Benefits to CMD and the District
The benefits to each party of the conversion to fully automated collection include:
Benefits to Costa Mesa Disposal, Inc.
• Conversion to fully automated collection allows the Sanitary District's program to
be consistent with the other agencies served by CR &R.
• Fully automated collection is faster, more efficient, and safer for the drivers,
resulting in greater worker satisfaction.
• Worker's compensation costs are greatly reduced.
• Labor intensity is greatly reduced eliminating man hours required to perform the
collection which should result in decreased labor costs.
Benefits to the Costa Mesa Sanitary District
• Fully automated collection is safer for local traffic because the driver is not exiting
the truck in the street.
• Fully automated service is safer for pedestrians and bicycle riders because the
trucks will be spending less time on each street.
• The savings in worker's compensation and labor costs of converting to fully
automated collection allows Costa Mesa Disposal to offer the service and a
complete support program at no cost to the District and possibly lower future
rates.
• The issue of the lifting bar problems in the containers becomes secondary
because the bars are not used in fully automated collection.
VI. Action by the Board of Directors
It is recommended the Board authorize Costa Mesa Disposal to begin fully automated
collection subject to the approval by both parties of the parameters outlined in the
attached Exhibit "A.
Exhibit "A"
Major Points of Fully Automated Trash Collection Program
1. Costa Mesa Disposal, CR &R and the Costa Mesa Sanitary District agree to work
together in a cooperative manner to institute a successful and comprehensive fully
automated trash collection program for residents of the District.
2. CMD shall provide an education program with components designed to inform
current and future residents of the details of the fully automated program including the
procedure for using fully automated containers and a list of the special recycling
programs available to the residents. CMD shall produce a flyer explaining the above
information and shall distribute the flyer to each residence in the District. Thereafter,
copies of the flyer shall be distributed to new residents upon request by the District or a
new resident. Copies of the flyer shall be made available to District Staff for distribution
as appropriate and revisions to the flyer shall be made by CMD when mutually deemed
appropriate. CMD shall distribute the flyer to every residence once every two years.
3. The District recognizes that Costa Mesa Disposal, Inc., the District's hauler, and
CR Transfer, the District's recycler, are wholly owned subsidiaries of CR &R. CR &R is
the parent corporation that successfully provides fully automated trash collection to over
200,000 residences in Southern California. The District currently has an agreement with
CR Transfer dated July 1, 2002 for recycling services and an agreement and three
addendums dated June 9, 1994, June 18, 1997, April 26, 2001, and December 11,
2001,with Costa Mesa Disposal for trash collection, hauling, special services, and
support of District programs. The District also has a Franchise Hauler and Transfer
Station Acknowledgment dated April 10, 1997 with Costa Mesa Disposal and CR
Transfer that reflects the District's Waste Disposal Agreement with the Orange County
Integrated Waste Management Department. CR &R now owns 100% of the stock of
Costa Mesa Disposal and there is no longer any legal relationship between Costa Mesa
Disposal and Roto Industries. The agreement with Costa Mesa Disposal requires CMD
to obtain written permission from the District prior to providing fully automated collection.
In order to simplify the contractual relationship between the parties, the District desires to
supersede the above - mentioned agreements and addendums with one agreement with
CR &R that recognizes the subsidiaries of CMD and CR Transfer and the services they
provide while at the same time leaving in place the independence of the collection and
hauling agreement from the recycling agreement. CR &R, CMD and CR Transfer agree
to achieve this simplification. The Attorney for the District shall be provided the legal
documentation establishing the aforementioned legal entities in order to prepare the new
agreement. The Attorney for the District will establish the proper protections for the
District in the event a sale or transfer of an entity serving the District is proposed,
including the right of consent of assignment for any sale of 40% or more of the company
stock or when control of the corporation transfers to a different party.
4. The provisions of the existing agreements and addendums shall continue and will
be included in the new agreement along with provisions offered by CMD in the Special
Board Meeting held on March 20, 2004 along with provisions offered by letter from CMD
dated July 1, 2004. These provisions include the following:
• Conversion of the existing occupancy count from an addressed based list to an
assessor's parcel number based list to achieve simplification and to assist in the
application of the yearly trash collection fees applied to each parcel as required by
the Orange County Auditor - Controller.
CMD shall review the existing "Green Card ", the card left at a residence to explain
a violation of the program, and suggest revisions thereto. The revisions shall
include producing a two part form that allows CMD to track violations and keep
records thereof on an individual parcel basis as is currently done for other
agencies served by CR &R.
• CMD will arrange tours of the recycling plant whenever requested by Board
members or Staff of the District.
CMD shall take over the container management program that includes receiving
containers, storing containers, returning defective containers, changing the
number or type of containers at a residence, keeping a data base of container
numbers at each residence, and providing the transportation and manpower to
successfully provide a container management program, all at no charge to the
District.
• CMD agrees to support newly initiated school education and other special
programs established by the District to a reasonable degree based on discussions
between the District and CMD. CMD shall be responsive and flexible in
complying with new programs.
• CMD shall appoint a designated contact that a CMSD Director or Staff member
can readily contact who is familiar with the District's program and who can readily
assist the caller in a professional and knowledgeable manner.
CMD shall apprise the District of the type of fuel used by each truck in the fleet
assigned to the District along with the status of legislation or court cases
pertaining to the use of environmentally safer fuels. With regard to recent court
cases pertaining to fleet requirements, CMD will implement an environmentally
safer fuel program for CMD trucks.
• CMD shall add to its list of services provided to the District, one pickup per month
of excess boxes or household furnishings left by a resident leaving the District.
The service shall be provided if requested by either the Assistant Manager or
Manager /District Engineer of the District.
2
CMD shall agree that the drivers will be properly outfitted with uniforms and
identification, will be courteous and accommodating to residents of the District, will
not scavenge through trash left at the curb, and will not solicit or accept gratuities
for performing services. CMD will provide its employee handbook to District staff
to demonstrate that these points are covered with the drivers.
• Provide its Employee Handbook to District Staff in order for District Staff to insure
that the drivers will be properly outfitted with uniforms and identification,
• CMD trucks shall have a clean appearance, shall be driven in compliance with the
Vehicle Code and shall have a display meeting the approval of the District.
Additional signage shall be as prescribed in the existing agreement with CMD.
• CMD shall strive to make customer satisfaction its number one priority and shall
provide its log of complaints received to the District on a monthly basis.
• The District shall complete a performance review of the trash collection and
recycling program on a yearly basis and CR &R and the District shall meet to
discuss and resolve problems that may be occurring in the programs. The District
shall prepare a performance review form that allows for evaluation of services
provided at the residences as well as administrative services including report
preparation, accuracy, timeliness of transmittal, responsiveness to inquiries, data
base management, service levels and helpfulness.
• CR Transfer shall recycle batteries and other electronic waste in conformance
with legislation effective in 2006 at no cost to the District.
• CERCLA indemnification, flow control and default provisions shall continue as
provided in the existing agreements.
• In the event of a strike or non - performance of the Agreement, District shall have
the right to use CMD's equipment.
• CMD shall provide District with a copy of any report, complaint, pleadings or any
other communication related to CMD's performance of the Agreement.
• CMD to submit list of Board of Directors, officers and all equipment used to
perform the Agreement.
• CMD to submit an annual review of other cities' comparable trash collection rates
and a justification of CMD's rates as being reasonable.
• Office hours shall be at least 8:00 a.m. to 5:00 p.m., Monday- Friday, excluding
holidays. A responsible and qualified person shall be available by phone toll -free
during all regular hours. Service shall be adequate to handle all calls on busiest
days. Recorder of voice mail for messages with next business day follow up shall
be available.
KI
• CMD to report any accumulation of trash observed not put out for collection.
• CMD agrees to continually update the monthly occupancy count.
Agreed in principle:
David Ronnenberg on behalf of
CR &R, CR Transfer, Costa Mesa Disposal
Arlene Schafer
President
Costa Mesa Sanitary District
James M. Ferryman
Secretary
Costa Mesa Sanitary District
Dated: September 2, 2004
4
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A RECEIVED
July 1, 2004
Costa Mesa Sanitary District
Mr. Robin B Hammers
PO Box 1200
Costa Mesa Ca 92628
Dear Rob,
J U L - 2 2004
COSTA MESA SANITARY DISTRICT
First, I would like to apologize on behalf of Costa Mesa Disposal (CMD) on the delay to
present this letter to the Costa Mesa Sanitary District (CMSD) Board. The transitional
process of moving the office and operations has taken longer than expected. Converting
and integrating two (2) computer systems, customer service, and drivers was a time
consuming process that is almost complete.
CMD is formally requesting permission from the Board to fully automate the residential
refuse collection for the City of Costa Mesa. Our goal is to implement this process within
the next sixty (60) to one hundred and twenty (120) days. As discussed in our previous
presentation the following items are being requested:
1) Fully automate the residential refuse service at no charge to the CMSD.
Benefits to Automation
• Reduction in damaged barrels
• Reduction in size of fleet and truck traffic
• Reduction of driver injuries and claims
• Reduction in insurance costs
Obstacles in Automation:
• Excess trash outside the container
• Streets/ Alleys with barriers to automation
• Customer acceptance to automation
Proposed Solutions to Obstacles:
• Drivers/ management will work with residents to ensure that the majority of the
trash is contained within the barrel. However, an occasional heavy duty garbage
bag next to the container will be picked up.
• CMD recognizes that all areas of the city cannot be automated. As a result, some
semi - automated routes will remain.
• CMD will work with CMSD to continue to educate Costa Mesa residential
customers on the benefits of automation.
2) CMD is requesting to delete the C.'MSD phone number from the green cards in an
effort to have all Costa Mesa residents call the CMD customer service center.
• Once CMD is granted permission all literature will be reprinted and redistributed.
3) CMD is requesting to take over the container management program that includes
container inventory, resident requests, and changing containers as needed.
CMD has been using one fully automated truck to service residents within the City while
painting and refurbishing older CMD equipment with the intent to continue servicing in a
semi - automated process. Over time, in some areas of the City the process has become
fully automated. As a result, this unplanned pilot program has gained acceptance amongst
residents and has shown positive results.
Please feel free to contact us directly to discuss or clarify our proposed request to fully
automate the residential collection in the City of Costa Mesa.
Sincerely,
Dan Otting
b b- .
Cc
The Board
Joan Revak
Tom Fauth
or
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r
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
MARCH 29, 2004
The Board of Directors of the Costa Mesa Sanitary District attended a duly noticed
Special Meeting on March 29, 2004 at 6:00 p.m., in Conference Room 1A at the Civic
Center, 77 Fair Drive, Costa Mesa.
Directors Present: Arlene Schafer, Greg Woodside, Arthur Perry, Dan Worthington
Staff Present: Robin B. Hamers, Manager /District Engineer; Thomas A. Fauth,
Assistant Manager; Joan Revak, Clerk of the District; Alan
Bums, Legal Counsel; Marc Puckett, District Treasurer; Debbie
Bjornson and Denise Gilbert, Permit Processing Specialists
Others Present: David Ronnenberg and Dan Offing, Representing Costa Mesa
Disposal and CR &R, 11282 Western Avenue, Stanton,
California
I. Presentation by Costa Mesa Disposal (CMD) and CR &R for Improvements
to Trash Collection Program Including Request for Implementing Fully
Automated Service.
CR &R purchased 100% of CMD stock and a straight stock sale leaves the Costa Mesa
Disposal Corporation intact. The purchase does not change the contractual
relationship between the District and CMD.
David Ronnenberg of CR &R and CMD gave a power point presentation showing the
history, staffing and services being provided by the companies. The following items
were covered:
CMD will be painting the trucks blue to match CR &R trucks and the phone
number of CMD will be added below the CMD name.
CMD will offer recommendations for revising the green regulations card
including deletion of the CMSD phone number in order to have all resident calls
fielded by CMD administrative staff in Stanton.
froth tttlq Our cor/i tit (rliitY.+ lit -,that t1Y'rrouttiirhl S4 If, tf (('t1sh, ntt Si (( ercoffe tion ser('iti'S.
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Costa Mesa Sanitary District
Minutes of Special Meeting Held March 29, 2004
Page 2
CR &R is performing a waste characterization study of all its clients including
the CMSD and the results will be available by the end of the 1" quarter 2004.
CMD will utilize the CR &R computer operations personnel to convert the CMD
database that is based on property addresses to a system based on assessors
parcel numbers in order to coincide with the District's database. The end result
will be a simplification of the database resulting in a more effective occupancy
count and ability to analyze and manage the data.
• CMD supports implementation of a variable rate structure and upon upgrading
the CMD database, options will be presented to the Board.
• CR &R currently processes 100% of the District's trash through the Materials
Recovery Facility. Batteries are being removed by magnetic separation and are
being recycled. CR &R supports the District's consideration of a school battery-
recycling program to educate students.
CMD is prepared to request approval to provide fully automated service at no
cost to the District. CMD can retrofit the CMD trucks with new arms. CMD
recognizes the worker's compensation and insurance costs will be greatly
reduced with a fully automated system plus CR &R provides fully automated
service to 100% of the agencies they serve. Details of a fully automated
program, including how to handle excess trash outside the containers, were
discussed and will be submitted as part of the written request to provide fully
automated service.
• CMD is prepared to permanently take over the container management program
including keeping a container inventory, handling resident requests, and
changing out containers as necessary.
CMD recognizes the District's desire for the use of environmentally safer fuels
and understands the South Coast AQMD's regulations and the California Air
Resources Board's (CARE) regulations in this regard. New CR &R trucks use
AQMD and CARB approved fuels. CR &R desires consistency between CR &R
trucks and CMD trucks so trucks identical to CR &R trucks would most likely be
used inside the District.
Mr. Ronnenberg acknowledged that a written request to the Board is required to
implement the above changes. The Board of Directors complimented Mr. Ronnenberg
and Mr. Otting on their presentation and added the Board looks forward to moving
ahead with the proposed improvements.
'rotecting our community's health 6v prmdng soCu caste and1 seuuercotecteon serveces.
costa mesasa ruta mfistnc-t.org
Costa Mesa Sanitary District
Minutes of Special Meeting Held March 29, 2004
II. Public Comments
There were no public comments made.
President Schafer adjourned the meeting at 7:30 p.m.
x UL.2
Secretary,
Page 3
Protecting ourcommunity's health 6y providing soCufwaste andsewercollection services.
costamesasanitarydistrict. org
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Memorandum
... an Independent Specia(Dastrict
To: Board of Directors
Staff
From: Robin B. Hamers, Manager /District Engineer
Date: January 22, 2004
Subject: Update on CMD Management of Trash Collection Operation
Staff members Rob Hamers, Tom Fauth and Joan Revak met with CR &R officials
David Ronnenberg and Dan Otting on January 21, 2004 to discuss the progress of
CR &R's reorganization of the Costa Mesa Disposal (CMD) management. Various
items were discussed and the progress of each is shown below.
In review, CR &R has purchased 100% of the CMD stock and a straight stock sale
leaves the CMD Corporation intact. The purchase does not change the contractual
relationship between the District and CMD, therefore, all references below are to
CMD.
The discussion covered the following items:
® CMD will be painting the trucks blue to match the CR &R blue trucks. The
phone number of CMD will be added below the CMD name.
® The CMD property on Placentia Avenue is up for sale and the CMD operation
will remain at the Placentia Avenue headquarters until close of escrow.
® CMD Office Manager Dee Cernak is the only previous CMD office worker still
in employment and will stay on to assist new CMD Operations Manager Dan
Otting.
® CMD desires the CMSD phone number to be deleted from the green
regulations card in order to have all resident calls be fielded by CMD
administrative staff in Stanton. CMD will furnish other recommendations for
revising the regulations card.
Protecting our community's health by providing sold waste and sewer cotTection services.
costamesasanitarydistrict. org
Update on CMD Management of Trash Collection Program January 22, 2004
Page 2
® David Ronnenberg will revise the item on the Waste Diversion Report shown
as "Other (Concrete /Asphalt/Wood)" to delete the reference to concrete,
asphalt, and wood and substitute a more correct explanation for the category
that includes food, small particulate matter and inert materials.
® CR &R is performing a waste characterization study of all its clients including
the CMSD and the results will be available by the end of the 1 st quarter 2004.
® CMD will be writing a letter to Roto Industries that the lifting bars supplied by
Roto during the standardized container rollout did not meet bid specifications
and the failure of the substandard small diameter bars placed undue stress on
the container material weakening it in the bar area.
CMD will utilize the CR &R computer operations personnel to convert the CMD
database that is based on property addresses to a system based on
assessor's parcel numbers in order to coincide with the District's database.
The end result will be a simplification of the database resulting in a more
effective occupancy count and ability to analyze and manage the data.
® CMD supports implementation of a variable rate structure and upon upgrading
the CMD database, options will be presented to the Board. The CMSD
Assistant Manager previously provided a potential program to the Board.
CR &R currently processes 100% of the District's trash through the Materials
Recovery Facility and batteries are being removed by magnetic separation.
The batteries are being recycled and CR &R will also accept batteries obtained
through a school recycling program. CR &R supports the District's
consideration of a school battery- recycling program to educate students.
CMD understands that the implementation of fully automated service requires
Board of Director approval and is prepared to seek such approval. CMD is
prepared to request approval to provide fully automated service at no cost to
the District. CMD can retrofit the CMD trucks with new arms. CMD
recognizes the worker's compensation and insurance costs will be greatly
reduced with a fully automated system plus CR &R provides fully automated
service to 100% of the agencies they serve. Details of a fully automated
program, including how to handle excess trash outside the containers, were
discussed and options will be presented to the Board.
® CMD is prepared to permanently take over the container management
program including keeping a container inventory, handling resident requests,
and changing out containers as necessary.
(Protecting our community's health by providing sofidwaste andsewercotCection services.
costamesasanitarydistrict. org
Update on CMD Management of Trash Collection Program January 22, 2004
Page 3
CMD recognizes the District's desire for the use of environmentally safer fuels
and understands the South Coast AQMD's regulations in this regard. New
CR &R trucks use AQMD approved fuels. CR &R desires consistency between
CR &R trucks and CMD trucks so trucks identical to CR &R trucks would most
likely be used inside the District.
David Ronnenberg was very pleasant and accommodating and it appears the
restructuring of CMD management by CR &R will bring the District's program into the
state of the art. Staff was very pleased with the meeting. In order to bring all the
above - described items into a recognizable plan, Mr. Ronnenberg will be preparing a
master plan and time frame for implementation of the desired improvements. At the
February regular Board meeting, Staff will be requesting the Board select a date for a
special meeting to review the proposed master plan. The master plan will also
include a written request from CMD to implement a fully automated program.
Please call if there are any questions regarding the above information.
cc: David Ronnenberg, CR &R
Dan Otting, CR &R
Trotecting our community's health 6y providing sofidwaste andsewercodection services.
costamesasanitarydistrict. org
ALAN A BURNS
JOHN R. HARPM'
COLrN P, BURNS
BP COU16F1
JuDi A. CURT47°
MICHAEL MONTGO WRY °
'A PROMSIONAL LVRPORAnON
L-AW OM(,'FS OF
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A LIWF13D LLABR.ITT PA1tTM'RSt11P 1WCUMING A PROFSS1ONAL CORPOKNWN
451 S. CiLASM I STRF.Ei
ORANGE CALIFORNIA 92666 RCYF3LS10E-L5ANJffMNARDMU)-
(909) 674 -6598
TO: District Manager / Engineer
FROM: District Counsel
DATE: June 7, 2004
(714) 771 -7728
FAX (714) 744 -1350
RE: Costa Mesa Disposal Contract Amendment
Rob - the following is a proposed checklist of items for possible negotiation in any Costa Mesa
Disposal ( "CMD ") contract amendment:
1. We should have a clear description of CMD and how the stock is owned.
2. We need a provision that the District's consent to assignment extends to the sale of 40% of the
stock or if control of the corporation passes.
3. We should try to determine if there is airy relationship between CMD and Roto Industries.
4. We should provide CERCLA indemnification and guarantees that all waste will be delivered to
Districts designated facility (flow control).
5. Right to direct additional services, subject to fair compensation being paid.
b. Conversion of the vehicles to alternate fuels.
7. Display on vehicles.
8. Vehicle cleaning schedule.
9. Vehicles to be driven in compliance with Vehicle Code.
• ,i
10. CMD shall properly cover its loads.
11. All employees shall wear uniforms with name identification.
12. Employees shall not solicit nor accept any gratuities for performing services pursuant to the
franchise.
Tna YVA F.T:ZT VOOZ /LO 190
Costa Mesa Sanitary Distri ct
Costa Mesa Disposal Agreement
June 7, 2004
Page 2
11 CMD to report any accumulation of trash observed not put out for collection.
14. CMD shall conduct annual audit of its route including premises, containers, etc.
15. CMD shall provide to each customer on at least a quarterly basis, listing of services offered,
rates, hours of operations, etc.
16, Office hours shall be at least 8am -5pm, Monday- Friday, excluding holidays. A responsible
and qualified person shall be available by phone toll -free during all regular hours. Service shall
be adequate to handle all calls on busiest days. Recorder of voice mail for messages with next
business day follow up shall be available.
17. Log of complaints and resolution to be maintained and available to District for two years.
18. Government liaison person must be identified who will be available at all reasonable times.
Cell phone to be given and/or other means by which can be reached after hours.
19. Public education — do we need more?
20. Community events support — do we need more?
21. Rates - review how calculated and what increases necessary. Should we revise?
22. Performance review each year or every two years.
A. Performance review of contract, number of complaints, etc.
B. Compliance with laws.
C. Responsiveness to City's needs, flexibility in complying with new programs.
D. Reports submitted on time and accurately.
E. CMD to submit an annual review of other cities' comparable trash collection rates and
a justification of CMD's rates as being reasonable.
F. CMD to submit list of Board of Directors, officers and all equipment used to perform
the contract.
G. Based on such periodic review Board of Directors will make determination as to
whether to allow evergreen clause to continue or whether such term shall be wound
down.
23. CERCLA defense records - manifests of all trash collected and where deposited.
70131 XV-4 ET :ZT 600Z /LO /90
Costa Mesa Sanitary District
Costa Mesa Disposal
June 7, 2004
Page 3
24. Records of segregation of material /recycling, etc. CRT?
25. District right to demand a certified audit of CND's books.
26. CMD shall provide District with a copy of any report, complaint, pleadings or any other
communication related to CMD's performance of this Agreement.
27. Indemnification, etc. - needs revision?
28. Insurance - review for adequacy and form.
29. Bonds — review?
30. City's right to take over contract in the event of non - performance - use CND's equipment,
etc., not a "taking" to do so because of default.
31. Rights in the event of a strike take over collection?
32. Events causing default {listed).
33. Penalties for various failures in service.
34. Preservation if rights of privacy of customers - contents of trash not to be invaded, etc.
35. Compliance with investigation laws.
36. Agree to fully cooperate in any review of service or billing issues.
The above is simply meant as a checklist for internal discussion.
aL.,
Alan R. Burns
District Counsel
en 531 YU ET:Zl VOOZ /LO /90
I
� :71iu171►r
THIS AGREE= is made and entered into this % day of JOA--,—� ,
1994 by and between the Costa Mesa Sanitary District of Orange County, California,
hereinafter referred to as "DISTRICT" and Costa Mesa Disposal, Inc., referred to as
RECITALS:
1. This contract is entered into in furtherance of the concern of the State
of California and the DISTRICT in the public health, safety and well being of its
citizens as expressed particularly in Sections 40002, 40058, 40059 and 49510 of the
Public Resources Code of the State of California, as these sections relate to
DISTRICT authority in the matter of solid waste enterprises and the collection and
disposal of solid waste.
2. DISTRICT and CONTRACTOR, as a solid waste enterprise, have entered into
an agreement dated January 11, 1979 which was subsequently amended on May 12, 1983;
July 28, 1989; February 28, 1990; and August 15, 1991 relating to the collection
and disposal of solid waste from single family dwellings within DISTRICT's geo-
graphical boundaries.
3. DISTRICT and CONTRACTOR recognize that changes of circumstances make it
necessary that the terms of this agreement and its amendments be consolidated and
updated to more accurately express the needs of the community with particular
reference to the reclamation, recycling and marketing of solid waste produced and
originating from single family dwellings within the DISTRICT and providing for
additional ,services not heretofore offered to the residents of DISTRICT.
4. DISTRICT and CONTRACTOR desire to revise and rewrite said amended aQree-
ment now in force, modifying certain terms thereof and to set forth their respec-
tive rights and liabilities in connection therewith.
-1-
N04�, THII2EFORE, for an in consiaeration of the teams herein set forth,
performed and to be performed, DISTRICT and CONTRACTOR agree as follows:
GIIZRAL PROVISIONS
CONTRACTOR agrees to furnish all labor, material and equipment necessary for
the collection of all solid waste as hereinafter defined from single family dwell-
ings and multi - family dwellings using curbside service within the boundaries of the
Costa Mesa Sanitary District of Orange County, California, except those residences
in the geographical limits of the City of Newport Beach, as said boundaries now
exist or may hereafter exist and the disposal of such solid waste as- hereinafter
provided. In consideration for the aforesaid things to be done by CONTRACTOR,
DISTRICT agrees to pay CONTRACTOR the consideration hereinafter set forth.
2.
TERM
The basic term of this contract shall be for six (6) years; provided, how-
ever, that said basic term shall not begin until one (1) year after the execution
of this agreement. Thereafter, the basic term of this contract shall be extended
annually so that the contract shall continue to have a basic term of six (6) years,
subject to termination and renewal provisions as are hereinafter provided.
Any extension of this contract, whether annually or otherwise, shall be
subject to satisfactory performance of CONTRACTOR and CONTRACTOR has no vested
right in the initial term, or the basic term, or any renewal thereof, if in the
judgment of DISTRICT the performance of CONTRACTOR has been unacceptable.
Notwithstanding the provisions of Paragraph 26. DEFAULT, the basic term of
this contract may be extinguished by eit:er party by such party's giving the other
one hundred twenty (120) days notice in writing of its intention to terminate and
at the end of said one hundred twenty (120) da,,, period, this agreement shall be
terminated and the basic term shall no longer exist.
-2-
3.
• 1 �� • •• - • • " - 41
As compensation for the performance by CONTRACTOR of the work described in
this agreement, DISTRICT shall pay to CONTRACTOR each calendar month during the
term of this agreement the rate specified in Exhibit "A" as adopted from time to
time by Board resolution. CONTRACTOR and DISTRICT agree that the rate shall be
applied to all "occupancies ", as hereinafter defined, to derive the correct sum for
services performed by CONTRACTOR for the one -month period just concluded.. Each
monthly payment shall be made the day following the meeting of DISTRICT* 's Board
where said payment was approved, said payment to be for the previous calendar
month.
4.
FORMULA FOR COMPENSATION CALCULATION
The basic rate as set forth in Exhibit "A" of this agreement shall prevail
frcm June 30 to July 1 of each fiscal year. Theraf ear said rate shall be adjusted
by an amount equal to the percentage change in the cost of doing business as mea-
sured by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price
Index, for All Urban Consumers for the Los Angeles -Long Beach Area, All Items (1967
= 100) for the month of May each year to become effective the July 1 immediately
following. Each increase or decrease in calculation of basic occupany rate occur-
ring as a result of this method of determining said rate shall be deemed a new
basic rate for purposes of calculation for subsequent years in the term of this
contract.
In no event shall said percentage change upon which any increase in compen-
sation is calculated exceed an increase of three (30) percent for each successive
fiscal year.
-3-
5.
SOLID WASTE DISPOSAL
DISTRICT represents that it has a contract with CR TRANSFER for the accep-
tance of solid waste from the DISTRICT for the purpose of recovery and reclamation
of recyclable materials and for the transfer of unrecycled residue to Orange County
landfill sites, which said contract's term expires October 31, 1996.
In the event said contract is not renewed or is terminated for any reason
prior to its expiration date, DISTRICT reserves the right to direct the flow of
solid waste produced and collected hereunder to any succeeding recycling firm with
Which DISTRICT has contracted, provided, however, that in the event mileage to the
succeeding recycling firm has increased ten (100) percent over the mileage present-
ly in effect between DISTRICT and CR TRANSFER, CGVMCTOR shall be entitled to
additional compensation based upon acceptable proof submitted to DISTRICT of actual
increased costs; and provided further, that if the mileage decreases in excess of
the same percentage, DISTRICT shall be entitled to a reduction in compensation it
is obligated to pay.
DISTRICT represents that it has in force a contract with the CITY OF COSTA
MESA, dated November 5, 1993, renewable annually, exempting DISTRICT from certain
fees established by the City relating to the City's obligations under the Integra-
ted Waste Management Act of 1989 (popularly known as AB -939).
Certain provisions of that contract require that DISTRICT rely upon the
cooperation and performance of CONTRACTOR and
CONTRACTOR agrees
that such coopera-
tion and
performance which is attributable to
CONTRACTOR will be
performed. Speci-
fically,
CONTRACTOR will participate in the
education program
required by AB -939
either in money or services at the option of
DISTRICT with the
level of participa-
tion to
be set by DISTRICT and will provide
such reports as are required of the
DISTRICT
by the City.
-4-
DISTRICT contemplates that its present recycling contract and any renewal
thereof or any contract with any recycler will not require curbside sorting. If,
however, circumstances should arise requiring curbside sorting, such circumstances
shall not void this contract and pickup of sorted material for delivery to recycle
points shall continue. CONTRACTOR may be entitled to additional compensation upon
proof of additional costs incurred because of curbside sorting.
DISTRICT represents that in the future it intends, if practical, to engage
in a limited household hazardous waste pickup program, its initiation to depend
upon cost analysis and insurance requirements as well as other factors: CONTRACTOR
agrees that it will participate in said hazardous waste pickup program to the
extent it can qualify as a hazardous waste transporter and at a cost to DISTRICT to
be negotiated at the time such program is instituted.
CONTRACTOR is equipped to and is in the business of providing fully automa-
ted mechanical pickup systems for pickup of solid waste. CONTRACTOR will provide a
report to DISTRICT of any cost savings to DISTRICT by instituting a DISTRICT -wide
fully automated mechanical system. Said report will be in writing and due not more
than one hundred twenty (120) days from the date of this agreement.
DISTRICT will provide CONTRACTOR with copies of all agreements, and amend-
ments thereto, which affect CONTRACTOR's performance hereunder including, but not
limited to, the contract with CR TRANSFER, or any other recycler with which DIS-
TRICT may contract; the November 5, 1993 AB -939 contract; and any subsequent con-
tract with the City of Costa Mesa or any other entity relating to DISTRICT's obli-
gations affecting solid waste pickup and disposal.
6.
LARGE ITEM PICKUP
DISTRICT represents that it conduc-.s an annual program for pickup of large
items not normally eligible to be picked _,D as part of this contract. As part
of this contract, and for the cc-Sid=-ration s_- forth herein, CONTRACTOR will
provide for the pickup of discarded - attresses, refrigerators, water heaters,
washers, driers, sofas, stoves, tam =es, lumber of not more than four (4) feet in
length, and other furniture and appliances on an annual basis. CONTRACTOR will not
be required to pick up tires, tree limbs, asphalt, car bodies, chemicals, hazardous
waste, concrete, oil drums, paint cans, !Duilding materials or soil.
CONTRACTOR shall provide written notification to residents of DISTRICT of
services to be provided no fewer than ten (10) working days prior to commencing
such service. Notices of such service shall be either delivered by hand to each
resident in person or placed on the door of each residence. The notices delivered
to residents by CONTRACTOR shall contain_ CONTRACTOR's name and business telephone
number. The notices shall specify those articles which will and will not be col-
lected. Such notices shall furthe -r state that if items are placed for pickup
later than the time stated in the notice or after the collection vehicle has
passed, a service fee will be charged by CONTRACTOR to the resident requesting
pickup.
CONTRACTOR shall pay for and coordinate with DISTRICT the publishing of an
additional advance notice using the local newspapers to inform residents of the
program. Said notification will include the statement that neither DISTRICT nor
CONTRACTOR will abe responsible for ite: placed at the curb which are ineligible
for pickup.
Items picked up pursuant to this agreement shall be transported by CONTRAC-
TOR to the appropriate County of Orange = a7�dfill disposal site or to an established
recycling center at CONTRACTOR's opt-on. DISTRICT shall be responsible for and pay
tipping charges at the landfill for thcs= loads going to a landfill. No payment
will be made for material taken to recycling centers.
CONIRACTOR shall begin work at a date set by the Manager of DISTRICT after
having given CONTRACTOR ten (10) days notice of said starting date and shall be
completed within sixty ( 60 ) working days from the first day of commencement of the
work.
7.
nVVTMTmrnT,lc
A. Definition of Solid Waste
Solid waste shall be as defined in Section 40191, Public Resources Code,
as may fran time to time be amended with the exceptions as set forth therein,
providing further that solid waste shall not include large item pickup material
provided for elsewhere in this agreement. Solid waste shall include Christmas
trees and telephone books not disposed of by separate event provided for elsewhere
in this agreement.
B. Definition of Occupany
An occupancy is determined to be as follows:
1. A single living unit per Assessor's parcel - one occupancy.
2. Multiple living units per Assessor's parcel - first living unit - one
occupancy; each additional living unit - one occupancy.
lot.
Beach;
3. Mobile home lots per Assessor's parcel - one occupancy per trailer
C - Occupancy Exemptions
1. Property both within the DISTRICT and within the City of Newport
2. Multiple resdential properties including mobile have parks contrac-
ting for or using private services and having qualified for DISTRICT exemption;
-7-
thereon;
3. Undeveloped parcels until one or more living units are constructer
4. Parcels incapable of generating rubbish and garbage as defined herein;
5. Parcels with improvements requiring a type of service unavailable from
6. Those parcels which have applied for and been granted exemptions by
DISTRICT, in accordance with DISTRICT rules and regulations;
use.
7. Those parcels irrespective of zoning which are subject to a carmercial
D. Initial Occupancy Calculation
The occupancy for which CONTRACTOR will be compensated shall be determined
from the special assessment roll for each fiscal year of July 1 through June 30 as
the same is maintained on file in the DISTRICT office as the basic occupancy and
will be readjusted annually based upon the special assessment roll for each suc-
ceeding year.
The occupancy count may be increased or decreased monthly and it is under-
stood and agreed by and between the parties hereto that said increase will be
determined by any occupancy permits and demolition permits issued by the Building
Department of the City of Costa Mesa or other entity having jurisdiction within the
DISTRICT. The occupancy count may also be increased whenever CONTRACTOR is able to
determine to the satisfaction of DISTRICT that any parcel coming within the exemp-
tions as heretofore set forth is no longer exempt and that CONTRACTOR is in fact
actively engaged in the weekly collection of trash from said occupancy. The occu-
pancy count may also be adjusted by a field survey conducted by DISTRICT in which
CONTRACTOR may participate if it desires.
8.
FREQUENCY OF COL=ION
A. Solid waste - Weekly
CONTRACTOR shall collect all solid waste from residential areas once each
week. "Residential Area" is defined generally as any area located within the Costa
Mesa Sanitary District zoned for residential or agricultural use by the governmen-
tal body having jurisdiction over such area and used for residential purposes.
B. Telephone Directories - Annually
DISTRICT represents that for thirty (30) days each year it engages in a
telephone directory recycling program in conjunction with Pacific Bell Directory,
publisher of the direcory. CONTRACTOR agrees that it will, without cost to DIS-
TRICT or the directory publisher, for so long as the program exists yearly, provide
not less than thirteen (13) bins and as many more as may be needed from time to
time to be placed at locations selected by DISTRICT for the collection of said
directories. CONTRACTOR further agrees to service said bins as they fill and to
periodically transport them to CR TRANSFER or to such other recycling center as may
be designated by DISTRICT, all at no cost to DISTRICT.
C. Christmas Trees - Annually
DISTRICT represents that it conducts an annual Christmas tree recycling
program for residents within the DISTRICT. CONTRACTOR agrees that it will, for a
period of thirteen (13) days, without cost to DISTRICT, so long as the program is
in effect, make a daily pickup of trees placed at curbside and will transport the
trees to a location within the DISTRICT selected by DISTRICT for recycling into
mulch. CONTRACTOR will not be required to provide a grinder or chopper used to
reduce trees to mulch.
Q
Q
SCHE = OF COLLECTIONS
A. Initial Schedules
Beginning with the date hereof, the existing routes, schedules and times for
the collection of solid waste shall be maintained and continued by CONTRACTOR.
B. Change of Schedules
From time to time during the period of this contract, the Manager of DIS-
TRICT may change the existing routes and schedules and time of collection and
CONTRACTOR shall thereupon maintain such new schedule.
CONTRACTOR may request changes in routes, schedules and times for collection
of solid waste and, upon receipt of consent of Manager of DISTRICT, and upon one
week's notice in advance to the occupants of all occupancies, may commence such new
schedule.
The Manager of DISTRICT shall have the right at all times during the term of
this contract to require CONTRACTOR to maintain routes, schedules and times for
collection of solid waste as required by said Manager.
All notices required to be given pursuant to this contract shall be given by
CONTRACTOR at his own expense.
10.
HOURS OF COLLE'TION
The DISTRICT Manager shall have the right to authorize CONTRACTOR to collect
solid waste at scheduled hours that said Manager finds will not constitute a nui-
sance to the neighborhood.
11.
HOURS
Collection of solid waste shall not be made on Sunday. Collection of solid
waste shall not be required on the following legal holidays: New Year's Da%,
-10-
Memorial Day, Fourth of July, labor Day, Thanksgiving Day and ChristiTos, except in
cases of emergency or as otherwise required by DISTRICT. Whenever a regular col-
lection falls on such a holiday, the collection shall be made on the following
working day, and collections throughout the DISTRICT shall become current within
one week thereafter.
12.
DISRUPTION OF SCHEDULE
A. Holiday pickups which are not set forth in Paragraph 11 may be omitted
entirely provided, however, that the DISTRICT Manager may require CONTRACTOR to
pick up said holidays schedules, if in his judgment, said pickup is necessary for
the health, safety and welfare of the persons living within the DISTRICT. Pickups
on holidays not set forth in Paragraph 11 must be picked up unless DISTRICT Manager
authorizes otherwise.
B. In the event of a disruption of service in any area due to weather, an
act of God, failure of equipment or otherwise, CONTRACTOR shall make such collec-
tion within seventy -two (72) hours. Labor disputes shall not be considered as
excuses for nonperformance hereunder as defined in Section 1511, California Civil
Code and CONTRACTOR shall provide for solid waste collection service within one
week of any disruption due to strike, lock -out, walk -out, boycott or other labor
dispute.
C. In no event shall CONTRACTOR disturb the remaining schedule for solid
waste collection or pickup. On the holiday mentioned, and in the event of a dis-
ruption of service by reason of an act of God, or otherwise, the regular schedule
shall be maintained and the missed pickup shall be made without disturbing in any
way the rest of the regular schedule.
D. CONTRACTOR shall forthwith advise DISTRICT in writing at the time any
negotiations are undertaken between CONTR,-V=_ R and its employees relating to wages
and benefits and CONTRACTOR shall be obligated to report the status of said negoti-
ations from time to time in a frequency established by DISTRICT, which said fre-
quency shall not be burdensome upon CONTRACTOR but shall be sufficient to advise
DISTRICT of the status of said negotiations including any pending strike, lock-
out, walk -out, boycott or other labor dispute. CONTRACTOR may also be r sired, at
the option of DISTRICT, to provide DISTRICT in writing with a plan of procedure to
be implemented by CONTRACTOR to serve DISTRICT in the event of a disruption of
service by labor dispute.
13.
CONTRACTOR'S EQUIPMENT
CONTRACTOR shall provide adequate equipment for the collection of solid
waste. Each vehicle used for the collection of solid waste shall have the name of
the CONTRACTOR plainly visible on the outside of said vehicle for the purpose of
identification.
All equipment used for collection of solid waste shall be enclosed to ensure
that solid waste is not spilled on streets and private properties. CONTRACTOR
shall comply with all requirements of the Health Department and all equipment used
for collection of solid waste shall be watertight and shall be covered with suit-
able waterproof tarpaulins, metal covers or other satisfactory covers.
No solid waste shall be permitted to leak, fall or be spilled upon City
streets or alleys or onto private property. Any such leakage or spillage shall be
immediately corrected and the area cleaned by CONTRACTOR.
All equipment used by CONTRACTOR for the collection of solid waste, pursuant
to this contract, shall be subject to inspection by the Manager of DISTRICT and any
defects in such equipment found to exist shall be immediately corrected by CON-
TRACTOR.
-12-
14.
CARE OF CONTAINERS
All containers, including the lids thereof, shall be replaced where found in
an upright position. Containers and lids shall not be left in the street or on a
neighbor's lot. Containers shall not be thrown from the truck to the pavement or
in any way broken, damaged or roughly handled. DISTRICT reserves the right to
withhold compensation under the contract until any claim for damaged containers has
been paid or adjusted with the owners thereof.
cases:
15.
LIMITATIONS ON SOLID WASTE COLLECTION
CONTRACTOR shall not be obligated to collect solid waste in the following
A. Where the solid waste is not placed in an adequate container. ( "Ade-
quate container" shall be any container approved by the Board of DISTRICT from time
to time as set forth in the rules and regulations established by the Board.)
B. In addition to the foregoing, reference is hereby made to the rules
and regulations adopted by DISTRICT, if any, for the collection of solid waste and
regulations as the same now exist, or may hereafter exist if changed by said DIS-
TRICT, and the same are included in this contract as an integral part hereof.
16.
CONTRACTOR shall furnish a Faithful Performance Bond in the sum of Fifty
Thousand ($50,000.00) Dollars written by a surety company licensed to do business
in the State of California and in form approved by Attorney for DISTRICT.
17.
PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE
CONTRACTOR shall be required to maintain in full force and effect during
the term of the contract a public liabilitv policy with a combined single limit of
-13-
Five Million ($5,000,000.00) Dollars for the benefit of the third persons who rrj_v
be injured or damaged as a result of any negligent operation of CONTRACTOR in the
performance of his work under this contract, which said policy shall name DISTRIC'_'
as an additional insured thereunder.
CONTRACTOR further agrees to keep on file with DISTRICT a certificate or
certificates of insurance, duly executed by CONTRACTOR's insurance carrier or
carriers, which shall serve as evidence of the continued existence of said insur-
ance policies.
DISTRICT shall not, nor shall any officer of enployee thereof, be' liable or
responsible for any accident, loss or damage happening or occurring in the doing of
the work, and CONTRACTOR shall indemnify and hold harmless the DISTRICT and its
Board, officers and employees of any and all liability arising therefrom, including
any attorney fees incurred in the defense of any such action.
DISTRICT and CONTRACTOR agree that the extension of this contract beyond its
due date for good and valuable consideration is not a DISTRICT project as defined
by Section 20801, Public Contracts Code, and thus does not come within the require-
ments of Section 20803, Public Contracts Code. In the event, however, that any
action is instituted raising the question of said requirements, the indemnity and
hold harmless herein shall extend to include any attorney fees incurred in the
defense of any such action.
WORKERS' COMPENSATION: INSURANCE
CONTRACTOR shall also maintain in full force and effect during the term of
this contract a workers' compensation policy and such other forms of insurance as
shall be required by law, and shall provide a certificate or certificates of insur-
ance naming DISTRICT as an additional insured in each case.
-14-
19.
RULES, LAWS AND REGULATIONS
CONTRACTOR shall abide by all the rules, laws and regulations of DISTRICT,
the City of Costa Mesa, County of Orange, State of California and all other govern-
mental agencies having jurisdiction.
20.
CONTRACTOR hereby designates the Manager of DISTRICT as its agent for the
purpose of receiving complaints and investigating and rectifying faildres of ser-
vice. DISTRICT shall have the right to charge CONTRACTOR for each service call, as
hereinafter defined, made by Manager of said DISTRICT; provided however, that the
maximum charge for service calls for any one month shall not exceed Five Hundred
($500.00) Dollars. The amount of such service charges for each month shall be
deducted from the payment due CONTRACTOR by DISTRICT for the next month.
"Service Call" as herein defined shall mean an actual trip made by DISTRICT
Manager, or an employee of the DISTRICT, to rectify a failure of service on the
part of CONTRACTOR in solid waste collection.
CONTRACTOR shall employ a foreman, to be approved by DISTRICT, to be as-
signed to the DISTRICT operation, to oversee the work and-to handle complaints
arising from the operations pursuant to this contract. Said foreman shall be
assigned full time to the DISTRICT and his entire expenses shall be paid by CON-
21.
TV TNM /7-7 T D('D
In the event that CONTRACTOR, for any reason, no longer hauls solid waste to
any recycler or recycling center and must haul to a County landfill site and in the
-15-
event
the
Count✓ of
Orange imposes a
charge b..-
the
day, or by
the ton,
or uoon each
truck,
or
upon each
company for the
privilege
of
disposing
of solid
waste in the
County
facilities,
CONTRACTOR shall
have the right to request a
meeting with the
Board
of DISTRICT
for the purpose of
negotiating with said Board
to determine what
share, if any, of said charge shall be paid by DISTRICT. The agreement to negoti-
ate by DISTRICT is not to be regarded by CONTRACTOR as a commitment on the part of
DISTRICT to pay any portion of said dump charge imposed by the County of Orange,
and DISTRICT will be obligated to pay only that portion, if any, of said dump
charges that are determined as the result of the negotiations as provided for
herein.
22.
LICENSES AND PERMITS
CONTRACTOR agrees to maintain during the life of this agreement all licenses
and permits required by any governmental agency. CONTRACTOR further agrees to
comply with such rules and regulations of the City of Costa Mesa adopted by ordi-
nance or resolution relating to City's requirements under the California Integrated
Waste Management Act of 1989 (Section 41070, et- seq., Public Resources Code) and to
promptly rectify any default which may occur.
23.
NONDISCRIMINATION EMPLOYMENT
No regular employee of DISTRICT will be employed by CONTRACTOR while this
agreement is in effect. In performing this agreement, CONTRACTOR will not engage
in, nor permit its agent to engage in, discrimination in employment of persons
because of their race, religion, color, national origin, ancestry, physical handi-
cap, medical condition, marital status or sex, except as permitted pursuant to
Section 12940 of the Government Code. Viola =ion of this provision may result in
the imposition of penalties referred to in Labor Code, Section 1735.
-16-
CONTRACTOR shall perform the services herein contemplated in coupliance with
the Federal and California laws concerning minimum hours and wages (Davis -Bacon
Act, 40 U.S.C. 276a, et seq.,, and Califo=ia Labor Code, Sections 1171, et seq.),
Occupational Health and Safety (29 U.S.C. 631, et seq., and California Labor Code,
Sections 6300, et seq.), Fair Employment Practices (29 U.S.C. 201, et seq., and
California Government Code, Sections 12900, et seq.), Workers' Ccarpensation Insur-
ance and Safety in Employment (Divisions 4 and 5 of the California Labor Code) and
all amendments thereto, and all similar State or Federal laws to the extent that
they are applicable; and CONTRACTOR shall indemnify and hold harmless DISTRICT from
and against all claims, demands, payments, suits, actions, proceedings and judg-
ments of every nature and description, including attorney fees and costs, pre-
sented, brought or recovered against DISTRICT for or on account of any liability
under any of the above- mentioned laws which may be incurred by reason of any work
performed by CONTRACTOR under this agreement.
CONTRACTOR is and shall be acting at all times as an independent contractor
and not as an employee of DISTRICT. CONTRACTOR shall secure, at his expense, and
be responsible for any and all payment of income tax, social security, State disa-
bility insurance ccnipensation, unemployment compensation and other payroll deduc-
tions for CONTRACTOR and its officers, agents and employees, and all business
licenses, if any, that are required in connection with the services to be performed
hereunder.
24.
DRUG -FREE WORKPLACE
CONTRAC'T'OR shall establish a Drug -FYee Awareness Program to inform employees
of the dangers of drug abuse in the workplace, the penalties that may be imposed
upon employees for drug abuse violations occurring in the workplace, and the em-
ployee assistance programs available to employees. Each employee engaged in the
performance of a DISTRICT contract must be notified of this Drug -Free Awareness
Program and must abide by its terms. Failure to establish a program, notify em-
ployees or inform the DISTRICT of a drug - related workplace conviction will consti-
tute a material breach of contract and cause for immediate termination of the
contract by DISTRICT.
27.
NON- ASSIG'\,-�BILITY
CONTRACTOR shall not voluntarily cr by operation of law assign, transfer,
sublet or encumber all or any part of `ONTRACTOR's interest in this agreement
-1 --
without DISTRICT's prior written consent. Any at-�.empted assignment, transfer,
subletting or encumbrance shall be void and shai_ constitute a breach of this
agreement and cause for termination of the agreement. Regardless of DISTRICT's
consent, no subletting or assignment shall release CONTRACTOR of CONTRACTOR's
obligation to perform all other obligations to be performed by CONTRACTOR hereunder
for the term of this agreement.
26.
f\v!WWAINal-
Failure on the part of CONTRACTOR to comply with the terms and provisions of
the contract shall be grounds for the DISTRICT to terminate the contract. In the
event of breach of contract, or default on the part of CONTRACTOR, DISTRICT may, at
its option, notify CONTRACTOR of its intention to terminate this contract. Said
notice shall be given in writing and mailed to the address of CONTRACTOR on file
with the DISTRICT or DISTRICT Manager. Said contract shall thereupon be deemed
terminated forty -eight (48) hours from and after the hour said notice is deposited
in the United States mail. In the event of such cancellation, CONTRACTOR shall
remain liable for any damage and loss sustained by DISTRICT in the collection of
solid waste, including all costs incurred by DISTRICT in the negotiation of a new
contract.
In the event of a default as herein defined, DISTRICT shall have the author-
ity to take whatever steps are necessary to ensure the collection of residential
solid waste including, but not necessarilv limited to, the employment of another
contractor or contractors, employment of izs own work force with rental equipment,
or by such other means as the DISTRICT, in i =s sole discretion, may employ for this
purpose. In the event of a defaul= as here =ofore set forth, because of work stop-
page or for any other reason, DISTRICT reserves the right to be reimbursed for its
W"
expenses incurred in maintaining residential solid waste service as provided for in
this contract, and in the event after demand CONTRACTOR fails to reimburse DISTRICT
for its expenses incurred as aforesaid, DISTRICT reserves the right to call upon.
CONTRACTOR's performance bond for said reimbursement. DISTRICT agrees to first
make demands upon CONTRACTOR for said reimbursement prior to applying to CONTRAC-
MR's surety for this purpose.
The waiver of any breach of the terms of this contract shall not be deemed a
waiver of any recurrence of the same or any other subsequent breach of said con-
tract.
27.
CANCELLATION OF EXISTING AGREEMENT
The agreements now in existence dated January 11, 1979, May 12, 1983, July
28, 1989, February 28, 1990 and August 15, 1991 are hereby cancelled effective as
of the date of this agreement. Said cancellation shall not affect the rights of
CONTRACTOR to any compensation payable to him under said cancelled contract not yet
paid by DISTRICT nor shall it relieve CONTRACTOR of any liability which has accrued
and exists and is outstanding as of the date hereof.
No
LIAISON
DISTRICT and CONTRACTOR shall each designate an individual to act as liaison
between DISTRICT and CONTRACTOR as the respective agents of each which are named as
follows:
DISTRICT
Name G rC J ,tJ T. ,. e. l c h /,- - /(g Y )7 0 ,).L>
Name
Address
�2 is - rz_� e -e ,-, -,rr
Address
(7/ q) 73_V- 'J IY36 ( /`/) �- t/ 6,
- yG / 7�
Phone/FAX Phone /FAX
-19-
Said designated agents may designate alternates by notifying the other in
writing of such designation.
29.
FRANCHISE ALTERNATE
It is further understood and agreed by and between the parties hereto that
certain legislative and Constitutional tax limitations may render DISTRICT unable
to meet its financial obligations with CONTRACTOR. In such event and upon notice
duly given by DISTRICT to CONTRACTOR in writing, this contract shall be deemed
null, void and of no further force or effect. In such event DISTRICT shall be
obligated to pay CONTRACTOR through and including the last week of solid waste
collection immediately preceding such termination date and DISTRICT shall not be
obligated to make any payment to CONTRACTOR beyond said termination date.
In the event of such termination, CONTRACTOR may apply to DISTRICT for a
franchise for the collection of residential refuse within the DISTRICT and may be
granted a franchise under terms and conditions as determined by the Board of Direc-
tors of DISTRICT at the time the said franchise is granted. Any franchise granted
shall comply with the California Integrated Waste Management Act of 1989 as amended
(heretofore cited) and shall meet franchising requirements of the City of Costa
Mesa.
Said franchise shall, among other things, provide that CONTRACTOR shall be
fully responsible for collection of fees from individual residences and shall
establish a system of invoicing and charges for said services. Said franchise
shall also include, among other things, the right of DISTRICT to determine whether
or not CONTRACTOR's charges are excessive and to require adjustments in said
charges to ensure reasonable profit to CONTRACTOR and to ensure a fair and equi-
table charge to residences being served.
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30.
T TN-IT Trt" -
In the event that litigation is brought by any party in connection with this
agreement, the prevailing party shall be entitled to recover from the opposing
party all costs and expenses, including attorneys' fees, incurred by the prevailing
party in the exercise of any of its rights or remedies hereunder or the enforcement
of any of the terms, conditions or provisions hereof, all as authorized by Section
1717, Civil Code.
31.
This agreement constitutes the sole and exclusive agreement between the
parties and cannot be amended, changed or otherwise modified except in writing
signed by both CONTRACTOR and DISTRICT.
IN WITNESS WHEREOF, we have placed our hands and seals, making this agree-
meet effective on the day and year first written.
DATED:
ATTEST:
COSTA MESA SANITARY DI
LIZA
DATED : ;2, y y y
ATTEST:
By:
STRICT
� • • 4
-21-
ADDENDUM NO. 1
This Addendum to Agreement is made and entered into this A�day of z - , 1997
by and between the COSTA MESA SANITARY DISTRICT (hereinafter `'District ") and
COSTA MESA DISPOSAL, INC. (hereinafter referred to as "Contractor ").
RECITALS
WHEREAS, the District and Contractor have entered into an agreement dated June 9,
1994 which provides for the collection and disposal of trash within District (hereinafter
"Agreement "); and
WHEREAS, the parties desire to specify herein some of the services and programs
contemplated by said Agreement; and
WHEREAS, the parties have also discovered that the occupancy count upon which
Contractor was being paid did not accurately reflect the correct number of residences that were
being serviced by Contractor and that this affected the compensation paid to Contractor with the
result that Contractor may have been overpaid by District; and
WHEREAS, the parties hereto do hereby desire to specify services to be provided
pursuant to said Agreement and desire to resolve the dispute over such overpayment by
Contractor agreeing to provide additional services;
NOW, THEREFORE, the parties hereto agree that the following additional services
shall be provided by Contractor for each year that the Agreement (as amended) is in effect:
1. Contractor shall provide containers, personnel, and general support for the Mini
Telephone Recycling Program to accommodate the June 1997 distribution of
yellow pages in addition to the School Phone Book Recycling Program that is
scheduled for November 1997. In each subsequent year, Contractor shall
participate in the phone book recycling program to the District's satisfaction in
conformance with the Pacific Bell distribution schedule.
2. Contractor shall purchase new signage for fleet vehicles every two years. In
addition, Contractor will rotate the signage, not to exceed once per quarter, to
promote the appropriate recycling program or District issue upon District's
request.
1
3. Contractor shall Provide a new and additional Large Item Collection Program,
that offers a free call -in service, once per year, per residential dwelling unit.
This program will be in addition to the existing District -Wide Large Item
Collection Program provided for in Paragraph 6 of said Agreement. Contractor
will also provide up to five additional Large Item Collections per month, at the
request and discretion of District. Large items are to be collected by Contractor
within three working days of customer or District request.
4. Contractor shall provide general improvement of container handling throughout
District area.
5. Contractor shall provide containers to any non - profit group (Boy Scouts,
churches, etc.) for recycling projects at the request of the District and at no
charge. Contractor to transport recyclables to a buy back center in Orange
County and rebate money to nonprofit group.
6. Contractor to assist and cooperate with District in the organization of clean up
days without charge. Contractor shall provide annually a total of fifteen
containers and transportation of the container, at no charge. District shall pay
landfill tipping fees only.
7. Contractor shall establish a Public Education Fund in an amount not to exceed
Ten Thousand Dollars ($10,000) per year for the purpose of supplying public
education and information about source reduction, recycling, and composting.
Funds can be used by the District for purchasing small giveaway items such as
pencils, stickers, activity books, or publishing informational brochures or
advertisements or for other public education purposes.
8. Contractor shall provide and maintain a portable Recycling Information Booth that
meets District's requirements to use at community events.
9. Contractor shall provide a cash donation to support local recycling efforts, in an
amount not to exceed Five Hundred Dollars ($500) annually.
10. Contractor shall provide verification of trash occupancy count to District's
satisfaction, once each five years.
11. Notwithstanding the provisions of Paragraph 5 of said Agreement, Contractor and
District shall work together to provide a Household Hazardous Waste residential
pickup program for recyclable household hazardous waste (Antifreeze, Car
Batteries, Used Oil, Paint) approximately once every three years. Contractor
shall be financially responsible for up to $10,000 per year in either financial
consideration or services. The first Household Hazardous Waste pickup program
is expected to occur in the year 2003.
2
12. Contractor shall provide additional service to residents as needed to comply with
the Americans with Disabilities Act.
13. Except as expressly modified herein, the terms and conditions of the Agreement
shall remain in effect and these services shall be deemed additional to those
required by said Agreement.
Dated: G 18 - Ci q
COSTA MESA SANITARY DISTRICT
By: 00"�'t'
Vsident
B[ A &11Z
Secretary
Dated: COSTA MESA DISPOSAL, INC.
By:
I J
3
R G :11 ?u171►
THIS AGREEMENT is made and entered into this day of
1994 by and between the Costa Mesa Sanitary District of Orange County, California,
hereinafter referred to as "DISTRICT" and Costa Mesa Disposal, Inc., referred to as
"CONT'RACT'OR" .
RECITALS:
1. This contract is entered into in furtherance of the concern of the State
of California and the DISTRICT in the public health, safety and well being of its
citizens as expressed particularly in Sections 40002, 40058, 40059 and 49510 of the
Public Resources Code of the State of California, as these sections relate to
DISTRICT authority in the matter of solid waste enterprises and the collection and
disposal of solid waste.
2. DISTRICT and CON'T'RACTOR, as a solid waste enterprise, have entered into
an agreement dated January 11, 1979 which was subsequently amended on May 12, 1983;
July 28, 1989; February 28, 1990; and August 15, 1991 relating to the collection
and disposal of solid waste from single family dwellings within DISTRICT's geo-
graphical boundaries.
3. DISTRICT and CONTRACTOR recognize that changes of circumstances make it
necessary that the terms of this agreement and its amendments be consolidated and
updated to more accurately express the needs of the ccmnunity with particular
reference to the reclamation, recycling and marketing of solid waste produced and
originating from single family dwellings within the DISTRICT and providing for
additional services not heretofore offered to the residents of DISTRICT.
4. DISTRICT and CONTRACTOR desire to revise and rewrite said amended agree-
ment now in force, modifying certain terms thereof and to set forth their respec-
tive rights and liabilities in connection therewith.
Be
NOW, THEREFORE, for and in consideration of the terms herein set forth,
performed and to be performed, DISTRICT and CONTRACTOR agree as follows;
1.
GENERAL PROVISIONS
CONTRACTOR agrees to furnish all labor, material and equipment necessary for
the collection of all solid waste as hereinafter defined from single family dwell-
ings and multi - family dwellings using curbside service within the boundaries of the
Costa Mesa Sanitary District of Orange County, California, except those residences
in the geographical limits of the City of Newport Beach, as said boundaries now
exist or may hereafter exist and the disposal of such solid waste as hereinafter
provided. In consideration for the aforesaid things to be done by CONTRACTOR,
DISTRICT agrees to pay CONTRACTOR the consideration hereinafter set forth.
K211
The basic term of this contract shall be for six (6) years; provided, how-
ever, that said basic term shall not begin until one (1) year after the execution
of this agreement. Thereafter, the basic term of this contract shall be extended
annually so that the contract shall continue to have a basic term of six (6) years,
subject to termination and renewal provisions as are hereinafter provided.
Any extension of this contract, whether annually or otherwise, shall be
subject to satisfactory performance of CONTRACTOOR and CONTRACTOR has no vested
right in the initial term, or the basic term, or any renewal thereof, if in the
judgment of DISTRICT the performance of CONTRACTOR has been unacceptable.
Notwithstanding the provisions of Paragraph 26. DEFAULT, the basic term of
this contract may be extinguished by either party by such party's giving the other
one hundred twenty (120) days notice in writing of its intention to terminate and
at the end of said one hundred twenty (120) day period, this agreement shall be
terminated and the basic term shall no longer exist.
Ira
3.
PANT TO CONTRACTOR BY DISTRICT
As cor pensation for the performance by CONTRACTOR of the work described in
this agreement, DISTRICT shall pay to CONTRACTOR each calendar month during the
term of this agreement the rate specified in Exhibit "A" as adopted from time to
time by Board resolution. CONTRACTOR and DISTRICT agree that the rate shall be
applied to all "occupancies ", as hereinafter defined, to derive the correct sum for
services performed by CONTRACTOR for the one -month period just concluded. Each
monthly payment shall be made the day following the meeting of DISTRICT's Board
where said payment was approved, said payment to be for the previous calendar
month.
4.
FORMULA FOR C.'OMPENSATION CALCULATION
The basic rate as set forth in Exhibit "A" of this agreement shall prevail
frcm June 30 to Jul 1 of each fiscal ��
Y year. The after said rate shall be adjusted
by an amount equal to the percentage change,in the cost of doing business as mea-
sured by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price
Index, for All Urban Consumers for the Los Angeles -Lang Beach Area, All Items (1967
= 100) for the month of May each year to became effective the July 1 immediately
following. Each increase or decrease in calculation of basic occupany rate occur-
ring as a result of this method of determining said rate shall be deemed a new
basic rate for purposes of calculation for subsequent years in the term of this
contract.
In no event shall said percentage change upon which any increase in carpen-
sation is calculated exceed an increase of three (30) percent for each successive
fiscal year.
-3-
S.
SOLID WASTE DISPOSAL
DISTRICT represents that it has a contract with CR TRANSFER for the accep-
tance of solid waste from the DISTRICT for the purpose of recovery and reclamation
of recyclable materials and for the transfer of unrecycled residue to Orange County
landfill sites, which said contract's term expires October 31, 1996.
In the event said contract is not renewed or is terminated for any reason
prior to its expiration date, DISTRICT reserves the right to direct the flow of
solid waste produced and collected hereunder to any succeeding recycling firm with
which DISTRICT has contracted, provided, however, that in the event mileage to the
succeeding recycling firm has increased ten (100) percent over the mileage present-
ly in effect between DISTRICT and CR TRANSFER, CONTRACTOR shall be entitled to
additional compensation based upon acceptable proof subrrdtted to DISTRICT of actual
increased costs; and provided further, that if the mileage decreases in excess of
the same percentage, DISTRICT shall be entitled to a reduction in ccxrpensation it
is obligated to pay.
DISTRICT represents that it has in force a contract with the CITY OF COSTA
MESA, dated November 5, 1993, renewable annually, exempting DISTRICT from certain
fees established by the City relating to the City's obligations under the Integra-
ted Waste Management Act of 1989 (popularly known as AB -939).
Certain provisions of that contract require that DISTRICT rely upon the
cooperation and performance of CONTRACTOR and CONTRACTOR agrees that such coopera-
tion and performance which is attributable to CONTRACTOR will be performed. Speci-
fically, CONTRACTOR will participate in the education program required by AB -939
either in money or services at the option of DISTRICT with the level of participa-
tion to be set by DISTRICT and will provide such reports as are required of the
DISTRICT by the City.
-4-
DISTRICT contemplates that its present recycling contract and ant renewal
thereof or any contract with any recycler will not require curbside sorting. If,
however, circumstances should arise requiring curbside sorting, such circumstances
shall not void this contract and pickup of sorted material for delivery to recycle
points shall continue. CONTRACTOR may be entitled to additional cccpensation upon
proof of additional costs incurred because of curbside sorting.
DISTRICT represents that in the future it intends, if practical, to engage
in a limited household hazardous waste pickup program, its initiation to depend
upon cost analysis and insurance requirements as well as other factors. CONIRACTOR
agrees that it will participate in said hazardous waste pickup program to the
extent it can qualify as a hazardous waste transporter and at a cost to DISTRICT to
be negotiated at the time such program is instituted.
CONTRACTOR is equipped to and is in the business of providing fully autcma-
ted mechanical pickup systems for pickup of solid waste. CONTRACTOR will provide a
report to DISTRICT of any cost savings to DISTRICT by instituting a DISTRICT -wide
fully automated mechanical system. Said report will be in writing and due not more
than one hundred twenty (120) days frcm the date of this agreement.
DISTRICT will provide CONTRACTOR with copies of all agreements, and amend-
rreents thereto, which affect CONTRACTOR's performance hereunder including, but not
limited to, the contract with CR TRANSFER, or any other recycler with which DIS-
TRICT may contract; the November 5, 1993 AB-939 contract; and any subsequent con-
tract with the City of Costa Mesa or any other entity relating to DISTRICT's obli-
gations affecting solid waste pickup and disposal.
6.
LARGE ITEM PICKUP
DISTRICT represents
that it conducts an annual
program for pickup
of large
items not normally eligible
to be picked up as part of
this contract. As
part
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of t^.is contract, and for the consideration set fort}; herein, CONTRACTOR will
provide for the pickup of discarded mattresses, refrigerators, water heaters,
washers, driers, sofas, stoves, tables, lumber of not more than four (4) feet in
length, and other furniture and appliances on an annual basis. CONTRACTOR will not
be required to pick up tires, tree limbs, asphalt, car bodies, chemicals, hazardous
waste, concrete, oil drums, paint cans, building materials or soil.
CONTRACTOR shall provide written notification to residents of DISTRICT of
services to be provided no fewer than ten (10) working days prior to commencing
such sen,ice. Notices of such service shall be either delivered by hand to each
resident in person or placed on the door of each residence. The notices delivered
to residents by CONTRACTOR shall contain CONTRACTOR's name and business telephone
number. The notices shall specify those articles which will and will not be col-
lected. Such notices shall further state that if items are placed for pickup
later than the time stated in the notice or after the collection vehicle has
passed, a service fee will be charged by CONTRACTOR to the resident requesting
pickup.
CONTRACTOR shall pay for and coordinate with DISTRICT the publishing of an
additional advance notice using the local newspapers to inform residents of the
program. Said notification will include the statement that neither DISTRICT nor
CONTRACTOR will abe responsible for items placed at the curb which are ineligible
for pickup.
Items picked up pursuant to this agreement shall be transported by CONTRAC-
TOR to the appropriate County of Orange landfill disposal site or to an established
recycling center at CONIRACTOR's option. DISTRICT shall be responsible for and pay
tipping charges at the landfill for those loads going to a landfill. No payment
will be made for material taken to recycling centers.
CO1\'711RACI'OR shall begin work at a date set by the Manager of DISTRICT after
having given. CONTRACTOR ten (10) days notice of said starting date and shall be
ccmpleted within sixty (60) working days from the first day of commencement of the
work.
7.
DEFINITIONS
A. Definition of Solid Waste
Solid waste shall be as defined in Section 40191, Public Resources Code,
as may from time to time be amended with the exceptions as set forth therein,
providing further that solid waste shall not include large item pickup material
provided for elsewhere in this agreement. Solid waste shall include Christmas
trees and telephone books not disposed of by separate event provided for elsewhere
in this agreement.
B. Definition of Occupany
An occupancy is determined to be as follows:
1. A single living unit per Assessor's parcel - one occupancy.
2. Multiple living units per Assessor's parcel - first living unit - one
occupancy; each additional living unit - one occupancy.
lot.
Beach;
3. Mobile hone lots per Assessor's parcel - one occupancy per trailer
C. Occupancy Exemptions
1. Property both within the DISTRICT and within the City of Newport
2. Multiple resdential properties including mobile home parks contrac-
ting for or using private services and having qualified for DISTRICT exemption;
-7-
3. Undeveloped parcels until one or more living units are constructed
thereon;
4. Parcels incapable of generating rubbish and garbage as defined herein;
5. Parcels with improvements requiring a type of service unavailable from
CONTRACTOR;
6. Those parcels which have applied for and been granted exemptions by
DISTRICT, in accordance with DISTRICT rules and regulations;
7. Those parcels irrespective of zoning which are subject to a cannercial
use.
D. Initial Occupancy Calculation
The occupancy for which CONTRACTOR will be ccrpensated shall be determined
from the special assessment roll for each fiscal year of July 1 through June 30 as
the same is maintained on file in the DISTRICT office as the basic occupancy and
will be readjusted annually based upon the special assessment roll for each suc-
ceeding year.
The occupancy count may be increased or decreased monthly and it is under-
stood and agreed by and between the parties hereto that said increase will be
determined by any occupancy permits and demolition permits issued by the Building
Department of the City of Costa Mesa or other entity having jurisdiction within the
DISTRICT. The occupancy count may also be increased whenever CONTRACTOR is able to
determine to the satisfaction of DISTRICT that any parcel caning within the exemp-
tions as heretofore set forth is no longer exempt and that CONTRACTOR is in fact
actively engaged in the weekly collection of trash fran said occupancy. The occu-
pancy count may also be adjusted by a field survey conducted by DISTRICT in which
CONTRACTOR may participate if it desires.
im
FREQUENCY OF COLLECTION
A. Solid Waste - Weekl
CONTRACTOR shall collect all solid waste fresn residential areas once each
week. "Residential Area" is defined generally as any area located within the Costa
Mesa Sanitary District zoned for residential or agricultural use by the governmen-
tal body having jurisdiction over such area and used for residential purposes.
B. Telephone Directories - Annually
DISTRICT represents that for thirty (30) days each year it engages in a
telephone directory recycling program in conjunction with Pacific Bell Directory,
publisher of the direcory. CONTRACTOR agrees that it will, without cost to DIS-
TRICT or the directory publisher, for so long as the program exists yearly, provide
not less than thirteen (13) bins and as many more as may be needed from time to
time to be placed at locations selected by DISTRICT for the collection of said
directories. CONTRACTOR further agrees to service said bins as they fill and to
periodically transport them to CR TRANSFER or to such other recycling center as may
be designated by DISTRICT, all at no cost to DISTRICT.
C. Christmas Trees - Annually
DISTRICT represents that it conducts an annual Christmas tree recycling
program for residents within the DISTRICT. CONTRACTOR agrees that it will, for a
period of thirteen (13) days, without cost to DISTRICT, so long as the program is
in effect, make a daily pickup of trees placed at curbside and will transport the
trees to a location within the DISTRICT selected by DISTRICT' for recycling into
mulch. CONTRACTOR will not be required to provide a grinder or chopper used to
reduce trees to mulch.
Q
SCHED Z= OF COLLEC'PIONS
A. Initial Schedules
Beginning with the date hereof, the existing routes, schedules and times for
the collection of solid waste shall be maintained and continued by CONTRACTOR.
B. Change of Schedules
FYom time to time during the period of this contract, the Manager of DIS-
TRICT may change the existing routes and schedules and time of collection and
CONTRACTOR shall thereupon maintain such new schedule.
CONTRACTOR may request changes in routes, schedules and times for collection
of solid waste and, upon receipt of consent of Manager of DISTRICT, and upon one
week's notice in advance to the occupants of all occupancies, may commence such new
schedule.
The Manager of DISTRICT shall have the right at all times during the term of
this contract to require CONTRACTOR to maintain routes, schedules and times for
collection of solid waste as required by said Manager.
All notices required to be given pursuant to this contract shall be given by
CONTRACTOR at his own expense.
10.
HOURS OF COLLFX'I'ION
The DISTRICT Manager shall have the right to authorize CONTRAC'T'OR to collect
solid waste at scheduled hours that said Manager finds will not constitute a nui-
sance to the neighborhood.
11.
HOURS
Ccllection of solid waste shall not be made on Sunday. Collection of solid
waste shall not be required on the following legal holidays: New Year's Day,
-10-
Memorial Day, Fourth of July, Labor Day, Thanksgiving Day and Christmas, except in
cases of emergency or as otherwise required by DISTRICT. Whenever a regular col-
lection falls on such a holiday, the collection shall be made on the following
working day, and collections throughout the DISTRICT shall became current within
one week thereafter.
12.
DISRUPTION OF SCHEDULE
A. Holiday pickups which are not set forth in Paragraph 11 may be omitted
entirely provided, however, that the DISTRICT Manager may require CONTRACTOR to
pick up said holidays schedules, if in his judgment, said pickup is necessary for
the health, safety and welfare of the persons living within the DISTRICT. Pickups
on holidays not set forth in Paragraph 11 must be picked up unless DISTRICT Manager
authorizes otherwise.
B. In the event of a disruption of service in any area due to weather, an
act of God, failure of equipment or otherwise, CONTRACTOR shall make such collec-
tion within seventy -two (72) hours. Labor disputes shall not be considered as
excuses for nonperformance hereunder as defined in Section 1511, California Civil
Code and CONTRACTOR shall provide for solid waste collection service within one
week of any disruption due to strike, lock -out, walk -out, boycott or other labor
dispute.
C. In no event shall CONTRACTOR disturb the remaining schedule for solid
waste collection or pickup. On the holiday mentioned, and in the event of a dis-
ruption of service by reason of an act of God, or otherwise, the regular schedule
shall be maintained and the missed pickup shall be made without disturbing in any
way the rest of the regular schedule.
D. CONTRACTOR shall forthwith advise DISTRICT in writing at the time any
negotiations are undertaken between CONTRACTOR and its employees relating to wages
-11-
and benefits and CONTRACTOR shall be obligated to report the status of said negoti-
ations frcm time to time in a frequency established by DISTRICT, which said fre-
quency shall not be burdensome upon CONTRACTOR but shall be sufficient to advise
DISTRICT of the status of said negotiations including any pending strike, lock-
out, walk -out, boycott or other labor dispute. CONTRACTOR may also be required, at
the option of DISTRICT, to provide DISTRICT in writing with a plan of procedure to
be implemented by CONTRACTOR to serve DISTRICT in the event of a disruption of
service by labor dispute.
13.
CONTRACTOR'S EQUIPMENT
CONTRACTOR shall provide adequate equipment for the collection of solid
waste. Each vehicle used for the collection of solid waste shall have the name of
the CONTRACTOR plainly visible on the outside of said vehicle for the purpose of
identification.
All equipment used for collection of solid waste shall be enclosed to ensure
that solid waste is not spilled on streets and private properties. CONTRACTOR
shall comply with all requirements of the Health Department and all equipment used
for collection of solid waste shall be watertight and shall be covered with suit-
able waterproof tarpaulins, metal covers or other satisfactory covers.
No solid waste shall be permitted to leak, fall or be spilled upon City
streets or alleys or onto private property. Any such leakage or spillage shall be
innmediately corrected and the area cleaned by CONTRACTOR.
All equipment used by CONTRACTOR for the collection of solid waste, pursuant
to this contract, shall be subject to inspection by the Manager of DISTRICT and any
defects in such equipment found to exist shall be immediately corrected by CON-
TRACTOR.
-12-
14.
CARE OF CONTAINERS
All containers, including the lids thereof, shall be replaced where found in
an upright position. Containers and lids shall not be left in the street or on a
neighbor's lot. Containers shall not be thrown from the truck to the pavement or
in any way broken, damaged or roughly handled. DISTRICT reserves the right to
withhold compensation under the contract until any claim for damaged containers has
been paid or adjusted with the owners thereof.
cases:
15.
LIMITATIONS ON SOLID WASTE COLLECTION
CONTRACTOR shall not be obligated to collect solid waste in the following
A. Where the solid waste is not placed in an adequate container. ( "Ade-
quate container" shall be any container approved by the Board of DISTRICT from time
to time as set forth in the rules and regulations established by the Board.)
B. In addition to the foregoing, reference is hereby made to the rules
and regulations adopted by DISTRICT, if any, for the collection of solid waste and
regulations as the same now exist, or may hereafter exist if changed by said DIS-
TRICT, and the same are included in this contract as an integral part hereof.
16.
CONTRACTOR shall furnish a Faithful Performance Bond in the sum of Fifty
Thousand ($50,000.00) Dollars written by a surety company licensed to do business
in the State of California and in form approved by Attorney for DISTRICT.
17.
PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE
CONTRACTOR shall be required to maintain in full force and effect during
the term of the contract a public liability policy with a combined single limit of
-13-
Five Million ($5,000,000.00) Dollars for the benefit of the third persons krio may
be injured or damaged as a result of any negligent operation of CONTRACTOR in the
performance of his work under this contract, which said policy shall name DISTRICT
as an additional insured thereunder.
CONTRACTOR further agrees to keep on file with DISTRICT a certificate or
certificates of insurance, duly executed by CONTRACTOR's insurance carrier or
carriers, which shall serve as evidence of the continued existence of said insur-
ance policies.
DISTRICT shall not, nor shall any officer of employee thereof, be liable or
responsible for any accident, loss or damage happening or occurring in the doing of
the work, and CONTRACTOR shall indemnify and hold harmless the DISTRICT and its
Board, officers and employees of any and all liability arising therefrom, including
any attorney fees incurred in the defense of any such action.
DISTRICT and CONTRACTOR agree that the extension of this contract beyond its
due date for good and valuable consideration is not a DISTRICT project as defined
by Section 20801, Public Contracts Code, and thus does not come within the require-
ments of Section 20803, Public Contracts Code. In the event, however, that any
action is instituted raising the question of said requirements, the indemnity and
hold harmless herein shall extend to include any attorney fees incurred in the
defense of any such action.
18.
WORKERS' COMPENSATION: INSURANCE
CONTRACTOR shall also maintain in full force and effect during the term of
this contract a workers' ccer►pensation policy and such other forms of insurance as
shall be required by law, and shall provide a certificate or certificates of insur-
ance naming DISTRICT as an additional insured in each case.
-14-
19.
RULES, LAWS AND REGULATIONS
CONTRACTOR shall abide by all the rules, laws and regulations of DISTRICT,
the City of Costa Mesa, County of Orange, State of California and all other govern-
mental agencies having jurisdiction.
20.
MnNrnr- r%TM,Vr
CONTRACTOR hereby designates the Manager of DISTRICT as its agent for the
purpose of receiving complaints and investigating and rectifying failures of ser-
vice. DISTRICT shall have the right to charge CONTRACTOR for each service call, as
hereinafter defined, made by Manager of said DISTRICT; provided however, that the
maximum charge for service calls for any one month shall not exceed Five Hundred
($500.00) Dollars. The amount of such service charges for each month shall be
deducted from the payment due CONTRACTOR by DISTRICT for the next month.
"Service Call" as herein defined shall mean an actual trip made by DISTRICT
Manager, or an employee of the DISTRICT, to rectify a failure of service on the
part of CONTRACTOR in solid waste collection.
CONTRACTOR shall employ a foreman, to be approved by DISTRICT, to be as-
signed to the DISTRICT operation, to oversee the work and to handle complaints
arising from the operations pursuant to this contract. Said foreman shall be
assigned full time to the DISTRICT and his entire expenses shall be paid by CON-
TRACTOR.
21.
inrTmo r "AnrIv
In the event that CONTRACTOR, for any reason, no longer hauls solid waste to
any recycler or recycling center and must haul to a County landfill site and in the
-15-
event the County of Orange imposes a charge by the day, or by the ton, or upon each
truck, or upon each canpany for the privilege of disposing of solid waste in the
County facilities, CONTRACTOR shall have the right to request a meeting with the
Board of DISTRICT for the purpose of negotiating with said Board to determine what
share, if any, of said charge shall be paid by DISTRICT. The agreement to negoti-
ate by DISTRICT is not to be regarded by CONTRACTOR as a commitment on the part of
DISTRICT to pay any portion of said dump charge imposed by the County of Orange,
and DISTRICT will be obligated to pay only that portion, if any, of said durm
charges that are determined as the result of the negotiations as provided for
herein.
22.
LICENSES AND PERMITS
CONTRACTOR agrees to maintain during the life of this agreement all licenses
and permits required by any governmental agency. CONTRACTOR further agrees to
comply with such rules and regulations of the City of Costa Mesa adopted by ordi-
nance or resolution relating to City's requirements under the California Integrated
Waste Management Act of 1989 (Section 41070, et seq., Public Resources Code) and to
pranptly rectify any default which may occur.
23.
NONDISCRIMINATION EMPLOYM=
No regular employee of DISTRICT will be employed by CONTRACTOR while this
agreement is in effect. In performing this agreement, CONTRACTOR will not engage
in, nor permit its agent to engage in, discrimination in employment of persons
because of their race, religion, color, national origin, ancestry, physical handi-
cap, medical condition, marital status or sex, except as permitted pursuant to
Section 12940 of the Government Code. Violation of this provision may result in
the imposition of penalties referred to in Labor Code, Section 1735.
-16-
CONTRACTOR shall perform the services herein contaTiplated in compliance with
the Federal and California laws concerning minimum hours and wages (Davis -Bacon
Act, 40 U.S.C. 276a, et seq. ,.and California Labor Code, Sections 1171, et seq.),
Occupational Health and Safety (29 U.S.C. 651, et seq., and California Labor Code,
Sections 6300, et seq.), Fair Employment Practices (29 U.S.C. 201, et seq., and
California Government Code, Sections 12900, et seq.), Workers' Canpensation Insur-
ance and Safety in Employment (Divisions 4 and 5 of the California Labor Code) and
all amendments thereto, and all similar State or Federal laws to the extent that
they are applicable; and CONTRACTOR shall indemnify and hold harmless DISTRICT from
and against all claims, demands, payments, suits, actions, proceedings and judg-
ments of every nature and description, including attorney fees and costs, pre-
sented, brought or recovered against DISTRICT for or on account of any liability
under and- of the above- mentioned laws which may be incurred by reason of any work
performed by CONTRACTOR under this agreement.
CONTRACTOR is and shall be acting at all times as an independent contractor
and not as an employee of DISTRICT. CONTRACTOR shall secure, at his expense, and
be responsible for any and all payment of inccxme tax, social security, State disa-
bility insurance carpensation, unemployment caupensation and other payroll deduc-
tions for CONTRACTOR and its officers, agents and employees, and all business
licenses, if any, that are required in connection with the services to be performed
hereunder.
24.
DRUG -FREE WORKPLACE
CONTRACTOR shall establish a Drug -Free Awareness Program to inform employees
of the dangers of drug abuse in the workplace, the penalties that may be imposed
upon employees for drug abuse violations occurring in the workplace, and the em-
ployee assistance programs available to employees. Each employee engaged in the
performance of a DISTRICT contract must be notified of this Drug -Free Awareness
Program and must abide by its terms. Failure to establish a program, notify em-
ployees or inform the DISTRICT of a drug - related workplace conviction will consti-
tute a material breach of contract and cause for immediate termination of the
contract by DISTRICT.
25.
NON- ASSIGNABILITY
CONTRACTOR shall not voluntarily or by operation of law assign, transfer,
sublet or encumber all or any part of CONTRACMR's interest in this agreement
-17-
without DISTRICT s prior written consent. Any attempted assignment, transfer,
subletting or encumbrance shall be void and shall constitute a breach of this
agreement and cause for termination of the agreement. Regardless of DISTRICT's
consent, no subletting or assignment shall release CONTRACTOR of CONTRACTOR's
obligation to perform all other obligations to be performed by CONTRACTOR hereunder
for the term of this agreement.
26.
DEFAULT
Failure on the part of CONTRACTOR to ccrply with the terms and provisions of
the contract shall be grounds for the DISTRICT to terminate the contract. In the
event of breach of contract, or default on the part of CONTRACTOR, DISTRICT may, at
its option, notify CONTRACTOR of its intention to terminate this contract. Said
notice shall be given in writing and mailed to the address of CONTRACTOR on file
with the DISTRICT or DISTRICT Manager. Said contract shall thereupon be deemed
terminated forty -eight (48) hours from and after the hour said notice is deposited
in the United States mail. In the event of such cancellation, CONTRACTOR shall
refrain liable for any damage and loss sustained by DISTRICT in the collection of
solid waste, including all costs incurred by DISTRICT in the negotiation of a new
contract.
In the event of a default as herein defined, DISTRICT shall have the author-
ity to take whatever steps are necessary to ensure the collection of residential
solid waste including, but not necessarily limited to, the employment of another
contractor or contractors, employment of its own work force with rental equipment,
or by such other means as the DISTRICT, in its sole discretion, may employ for this
purpose. In the event of a default as heretofore set forth, because of work stop-
page or for any other reason, DISTRICT reserves the right to be reimbursed for its
expenses incurred in maintaining residential solid waste service as provided for in
this contract, and in the event after demand CONTRACTOR fails to reimburse DISTRICT
for its expenses incurred as aforesaid, DISTRICT reserves the right to call upon
CONTRACTOR's performance bond for said reimbursement. DISTRICT agrees to first
make demands upon CONTRACTOR for said reimbursement prior to applying to CONTRAC-
TOR's surety for this purpose.
The waiver of any breach of the terms of this contract shall not be deemed a
waiver of any recurrence of the same or any other subsequent breach of said con-
tract.
27.
CANCELLATION OF EXISTING AGREEMENr
The agreements now in existence dated January 11, 1979, May 12, 1983, July
28, 1989, February 28, 1990 and August 15, 1991 are hereby cancelled effective as
of the date of this agreement. Said cancellation shall not affect the rights of
CONTRACTOR to any ccq ensation payable to him under said cancelled contract not yet
paid by DISTRICT nor shall it relieve CONTRACTOR of any liability which has accrued
and exists and is outstanding as of the date hereof.
RM
LIAISON
DISTRICT and CONTRACTOR shall each designate an individual to act as liaison
between DISTRICT and CON'T'RACTOR as the respective agents of each which are named as
follows:
DISTRICT
FL T. ee_lc i le-
Name
77 02
Address
•� .r' �r�"iT.7i.5�
WA;✓ eL
Name
'2 c,,,- / r4.,l C - �-
Address
�71.1/ e 7 Sy'��JS�� yJJL' /�3L ` /�Lo �oY4 - yL �7on/FAX Phone /FAX
_i4_
Said designated agents may designate alternates by notifying the other in
writing of such designation.
29.
FRANCHISE ALTERNATE
It is further understood and agreed by and between the parties hereto that
certain legislative and Constitutional tax limitations may render DISTRICT unable
to meet its financial obligations with CONTRACTOR. In such event and upon notice
duly giver. by DISTRICT to C N7RACIOR in writing, this contract shall be deaned
null, void and of no further force or effect. In such event DISTRICT shall be
obligated to pay CONTRACTOR through and including the last week of solid waste
collection immediately preceding such termination date and DISTRICT shall not be
obligated to make any payment to CONTRACTOR beyond said termination date.
In the event of such termination, CONTRACTOR may apply to DISTRICT for a
franchise for the collection of residential refuse within the DISTRICT and may be
granted a franchise under terms and conditions as determined by the Board of Direc-
tors of DISTRICT at the time the said franchise is granted. Any franchise granted
shall comply with the California Integrated Waste Management Act of 1989 as amended
(heretofore cited) and shall meet franchising requirements of the City of Costa
Mesa.
Said franchise shall, among other things, provide that CONTRACTOR shall be
fully responsible for collection of fees frcm individual residences and shall
establish a system of invoicing and charges for said services. Said franchise
shall also include, among other things, the right of DISTRICT to determine whether
or not CONTRACTOR's charges are excessive and to require adjustments in said
charges to ensure reasonable profit to CONTRACTOR and to ensure a fair and equi-
table charge to residences being served.
-20-
30.
T T r-7\ T 'C=C
In the event that litigation is brought by any party in connection with this
agreement, the prevailing party shall be entitled to recover from the opposing
party all costs and expenses, including attorneys' fees, incurred by the prevailing
party in the exercise of any of its rights or remedies hereunder or the enforcement
of any of the terms, conditions or provisions hereof, all as authorized by Section
1717, Civil Code.
31.
This agreement constitutes the sole and exclusive agreement between the
parties and cannot be amended, changed or otherwise modified except in writing
signed by both CONTRACTOR and DISTRICT.
IN WITNESS WHEREOF, we have placed our hands and seals, making this agree-
ment effective on the day and year first written.
DATED: ✓ � J� / y y �/
ATTEST:
COSTA MESA SANITARY DISTtt
Bv: 1
f Pr -5ident of ISTRICT
By •s— ��/R�'
DATED :
ATTEST:
By:
-21-
EXIIIBIT "A"
COSTA MESA SANITARY DISTRICT
COMPENSATION CALCULATION FOR TRASH CONTRACTOR
In accordance with the contract between the District and Costa Mesa Disposal
(formerly Orco Disposal, Inc.) dated January 11, 1979, and as amended May 12, 1983,
July 28, 1989, February 28, 1990, and August 15, 1991, Section IV "Formula for
Compensation Calculation," the following illustrates the total rate payable to Costa
Mesa Disposal for both Basic and Large Item Refuse Pickup service. Effective July
1, 1994, both rates below will be adjusted to reflect the Consumer Price Index (Los
Angeles/ Riverside Area Index) increase from May 1993 through May 1994 to develop
the per occupancy charge to be paid by the District to Costa Mesa Disposal for the
1994 -95 fiscal year.
1993 -94 Basic Rate - through June 30, 1994 $ 6.8720
1993 -94 Rate for Large Item Pickup 0.1276
$
The per occupancy cost for the 1993 -94 Large Item Pickup was calculated by dividing
the 1993 -94 contract cost for Large Item Pickup ($34,111) by the current occupancy
rate (22,285) and then by 12 months which results in an annual per occupancy cost
of $1.5307 and a monthly rate of $0.1276.
e
ADDENDUM NO.2
This Addendum to Agreement is made and entered into this aday of
�D. 2001, by and between the COSTA MESA SANITARY DISTRICT (hereinafter
referred to as "District ") and COSTA MESA DISPOSAL, INC. (hereinafter referred to as
"CMD").
RECITALS
WHEREAS, the District and CMD have entered into an agreement dated June 9,
1994, which provides for the collection and disposal of trash within District and also
entered in Addendum No. 1 to said agreement dated June 18, 1997, and
WHEREAS, the District intends to implement a standardized container program to
provide semi - automated collection for all residences served by District; and
WHEREAS, District has purchased said standardized containers from Roto
Industries, Inc., (hereinafter "ROTO ") which is a corporation owned by the Rangel Family
and related to Costa Mesa Disposal in that Raul Rangel is the sole shareholder of said
corporation; and
WHEREAS, it was a material consideration to District that Roto's product be
compatible with CMD's equipment and that CMD, as a related company, would use its
best efforts to ensure a smooth and seamless transition to the standardized containers;
and
WHEREAS, CMD will realize increased worker efficiency and safety and
corresponding lower insurance rates by changing to a semi - automated system in which
cans do not have to be lifted; and
WHEREAS, in consideration thereof CMD has agreed to act as ROTO's agent in
doing the things provided for herein; and
WHEREAS, the parties desire to specify their respective responsibilities with
regard to implementation and future service for a new standardized container program;
NOW, THEREFORE, the parties hereto agree as follows:
1. District is purchasing from ROTO standardized containers for each
residence and will provide each residence a number and size of containers
in order-that all trash will be stored inside the closed containers and outside
trash placed in bags will only rarely occur.
2. CMD warrants its vehicles and personnel are able to properly perform trash
collection service utilizing a semi - automated collection system.
T
3. CMD agrees to keep its vehicles in proper working order and the lifting
mechanism in proper adjustment to prevent premature wear of the
containers.
4. CMD shall provide District a schedule of CMD collection vehicles including
date of purchase, vehicle identification number, and estimated remaining
life expectancy. CMD shall not purchase any new collection vehicles
without first notifying District in writing that proposed trucks are compatible
for the semi- automated system. CMD shall also ensure that such vehicles
burns fuel and are otherwise compliant with air quality regulations that are
currently in effect or scheduled to go into effect. The trucks used in the
program shall allow workers to place trash not placed in the containers
directly into the truck provided such trash is properly contained.
5. CMD understands the program is a semi - automated collection system and
shall not purchase any fully automated collection vehicles without written
authorization from District.
6. District recognizes that CMD is owned by Raul Rangel and that Roto is
owned by the Rangel Family and Roto has agreed to provide a free one
year roll out program and a free three year container management program
consisting of providing manpower, vehicles, and storage area, to properly
handle change -in, change -outs, assembly, delivery, log sheets, serial
number records, etc. CMD agrees to fully cooperate with Roto as Roto's
agent to successfully provide these services to District.
7. The CMD rollout program shall consist of providing new containers to one
CMD route per month with follow up change -in, change -out services. The
container size and quantity for each residence shall be determined in part
by the District- prepared flyer to be mailed to each address on the route
approximately five weeks prior to delivery. CMD to provide District the
addresses of every residence on each route. Both parties anticipate a 10-
month rollout program to cover the 10 CMD routes.
8. CMD agrees that customer satisfaction is of primary importance and CMD
drivers will collect trash left outside of the containers. Workers shall be
courteous, shall replace the empty containers on the curb in an orderly
fashion and in an upright manner with the lids closed.
2
9. CMD shall administer the container warranty for District as Roto's agent
and will handle repair or replacement with Roto at no cost to the District.
10. In the event of container failure or unserviceability, DISTRICT and ROTO,
(or CMD if so designated in writing by ROTO), shall mutually observe and
make a determination as to the cause of any container becoming damaged,
unserviceable or defaced. Containers failing to perform in accordance with
ROTO's warranty shall be replaced or repaired within 24 hours at no cost to
DISTRICT, and containers requiring replacement due to resident neglect,
damage, or other causes not covered by Roto's warranty, shall be replaced
within 24 hours at DISTRICT's cost.
11. CMD understands that no purchase of containers shall be made without
District Manager's and Assistant Manager's signatures on a purchase
authorization sent to Roto. Manufacturing, assembly and delivery to CMD
or other DISTRICT designated location shall be included in the price per
container.
12. CMD shall maintain serial number logs showing the number and size of
containers at each residence with the serial numbers and date of delivery
for all containers. Said information shall be furnished to District upon
request.
13. CMD, as Roto's agent, shall provide change -in, change -out services as
requested by customer or District in a courteous manner. District shall
have final authority over the size and number of containers provided to
each residence.
14. CMD shall collect old containers and deliver the containers to District's
recycler, CR Transfer, at no additional charge to District.
15. CMD shall disclose its yearly Workers Compensation rates to District in
order to identify insurance premium reductions associated with the
standardized container program.
16. Compensation paid by District to CMD shall not be affected by the
implementation of the standardized container program. District and CMD
recognize the importance of worker safety and the benefits to CMD trash
collection workers from the standardized container program.
17. CMD shall use due care to prevent spills or leaks during the collection
process. CMD shall promptly clean up all spilled material and shall carry a
broom and shovel on each truck at all times.
3
18. CMD shall assist District in identifying scavengers or residents discarding
hazardous or illegal trash.
19. CMD recognizes District's investment in the standardized container
program and CMD shall at all times protect District's containers and
maintain its collection vehicles, office staffing levels, and operations in a
manner to maximize the life expectancy of the containers and consistent
with prudent solid waste management practices.
20. Except as modified herein, the terms and conditions of this Agreement shall
remain as provided in the 1994 Agreement as the same has been
amended.
In Witness whereof, the parties have entered into this Agreement on the date first
written above.
COSTA MESA SANITARY DISTRICT
Secretard
COSTA MESA DISPOSAL, INC.
_
By
Title:
4
I
AUG -31 -2004 14 =33
ADDENDUM NO. 3
P. 01102
This Amendment is made and entered into this (( day of &c� 2001 by and
between the Costa Mesa Sanitary District (hereinafter "District') and Costa Mesa Disposal
(hereinafter "CMD ") and Roto Industries (hereinafter "Roto ") with reference to the following
facts:
WHEREAS, the District and CMD have an agreement dated June 9, 1994 by which
CMD has been given the right to collect and dispose of residential trash within the territory of
the District; and
WHEREAS, that agreement was amended on June 18, 1997, by Addendum No. 1
which provided for additional services to the District, including an occupancy count every five
years; and
WHEREAS, the District has purchased standardized containers from Roto Industries,
Inc., which is wholly owned by the Rangel family and is a company related to CMD, and
pursuant to Addendum No. 2 to the CMD Agreement (dated April 26, 2001), CMD and Roto
have agreed to provide a three year container management program; and
WHEREAS, the Board and District have discovered that District may have overpaid
CMD for such services because of an incorrect occupancy count; and
WHEREAS, CMD and Roto have agreed to provide additional consideration to
District in exchange for this overpayment in the form of an annual occupancy count and
another (4th) year of container maintenance;
NOW, THEREFORE, in consideration of the above, the parties agree as follows:
1. CMD agrees to provide an annual occupancy count instead of the occupancy
count every five years provided in Addendum No 1. Said annual occupancy count shall be
made each and every year that CMD has an agreement to collect and dispose of trash
within District.
AUG -31 -2004 14:35 98% P.01
AUG -31 -2004 14:33
2. CMD and Roto agree to provide an additional (4th) year of container management
of the standardized container program as provided in Addendum No_ 2 and as further
provided in Exhibit D to the Purchase Agreement between Roto and CMSD, including all
manpower, equipment and facilities needed to provide that service.
3. Except as expressly modified herein, the terms and conditions of those other
agreements mentioned herein shall continue to control the rights and duties of the parties
herein.
Dated:
Dated:
Dated
1']-. - i0 - r, 1
iti - 10 —0 1
to Mesa Sanitary District
President
Secs atoy
Costa Mesa Disposal
Roto Industries, Inc.
.0
TOTAL P.02
AUG -31 -2004 14:35 98% P.02
r;
AGREEMENT
This AGREEMENT is effective on the 1st day of July, 2(x)2 by and between THE COSTA MESA
SANITARY DISTRICT, a governmental agency formed and existing under the Sanitary District Act
of 1923 (hereinafter referred to as "DISTRICT "), and C.R. TRANSFER, INC., a California
corporation (hereinafter referred to as "CRT ").
RECITALS:
1. DISTRICT provides for residential solid waste collection for residents utilizing
curbside service within its geographical boundaries as authorized by the procedures set forth in
Health and Safety Code ' 5470 - 5474.10, and provides for said collection by contract with an
independent solid waste hauling contractor, in accordance with the authority granted in the Sanitary
District Act of 1923, Health and Safety Code ' 6400 -6941.
2. CRT is a California corporation in the business of accepting solid waste from
government agencies and from solid waste hauling contractors at its transfer station for further
removal to county landfill sites or other lawful destinations and is engaged in the separation of
recyclable material from solid waste for marketing to users of recycled material.
3. The parties acknowledge that the state has required every city to have a source
reduction and recycling element (SRRE) which mandates an implementation schedule that requires
that 50% of all waste shall be diverted from the solid waste stream by January 1, 2000 through
source reduction, recycling and composting activities (Public Resources Code Section 41780), and
the parties have met that objective. It is a material consideration to DISTRICT that contractor assist
DISTRICT in continuing to meet this legislative mandate.
4. The parties further acknowledge that public agencies that provide for solid waste
disposal have been sued under the Federal Comprehensive Environmental Response Compensation
and Liability Act of 1980 ( CERCLA) and when they have issued exclusive franchises for waste
disposal and the parties do therefore desire to define the respective responsibilities therefor. The
provisions for CERCLA indemnification are a material consideration to DISTRICT.
5. DISTRICT. desires to enter into an agreement with CRT which will provide that CRT
will accept solid waste from the.DISTRICT contract solid waste hauler and will continue to recover
or reclaim the minimum percentages of said solid waste for reuse as set forth in Public Resources
Code Section 41780.
6. CRT desires to enter into an agreement with DISTRICT establishing transfer rates
and processing rates for solid waste it accepts from the DISTRICT contract hauler and to provide for
the reclamation of recyclable materials as will be required by law.
7. The parties hereto desire by this AGREEMENT to set forth and restate their rights
and obligations in connection herewith and to supersede those previous agreements with this
Agreement.
NOW, THEREFORE, for and in consideration of the covenants herein contained, performed
and to be performed, the parties hereto agree as follows:
1. DISTRICT warrants and represents to CRT that it has a right to and does provide for
solid waste disposal from residential units using curb side service only within its geographical
boundaries (the commercial, industrial, and multi - family residential developments using bin service
being provided for by others and that it will use its best efforts to cause all of the solid waste
collected regularly by its contract solid waste hauler to be delivered to CRT's site in Stanton,
California under terms and conditions as shall hereinafter appear.
2. CRT agrees to accept directly from DISTRICT's contract hauler as it is picked up
from DISTRICT's residences on a regular basis all solid waste of whatever kind and nature and in
whatever quantity at CRT's transfer station in Stanton, California and to reclaim recyclable material
from the solid waste delivered to CRT and to lawfully dispose of the residue under terms and
conditions as hereinafter stated.
3. The parties intend to establish an "evergreen" term for this AGREEMENT. This
AGREEMENT shall have an effective date of July 1, 2002 and shall renew for a new six (6) year
term on each July 1 of successive years beginning on July 1, 2003 unless otherwise terminated. The
intent of the parties is that a new six year term will be granted in perpetuity on July 1 of each
successive year unless otherwise terminated. The term of this AGREEMENT may be terminated in
two ways: (1) by notice of cancellation of the perpetual renewal, and (2) for cause. Notice of
cancellation of the perpetual renewal may be given by either party, without cause, and will cause this
AGREEMENT not to automatically renew and will cause this AGREEMENT to terminate when the
balance of the remaining term expires.
4. This AGREEMENT may also be terminated for cause by either party hereto and
cause shall be determined to be failure on the part of either party hereto to perform any of the
requirements of this AGREEMENT where said party has failed to perform within 30 days after
having been given written notice of a default. Termination shall occur 30 days after notice has been
given if all deficiencies have not been cured within that time frame. This AGREEMENT may also
be terminated by mutual consent of the parties.
5. In exchange for accepting all solid waste from the DISTRICT at CRT's transfer
station, and recycling and reclaiming materials from said waste as well as providing final disposal at
the county landfill sites without cost to DISTRICT, CRT, except as shall hereinafter appear, shall be
compensated as provided in paragraphs 7 and 8 of this AGREEMENT.
6. CRT shall invoice monthly and be paid monthly and shall provide such supporting
documentation for each invoice as DISTRICT may require including, but not limited to, trip or
weight tickets as proof of tonnage billed for and such other documentation as DISTRICT may
require to support the requirements of percentages of recycled or reclaimed materials as such
percentages may be required by law.
.1
7. This AGREEMENT has been entered into with reference to current County landfill costs
being $22.00 per ton and with reference to the fact that contractor has been-able to use those landfills
available at the time of contracting. Should those costs or the availability of disposal sites change
during the term of this AGREEMENT the parties may re- negotiate this AGREEMENT or the
compensation provisions hereof. DISTRICT reserves the right to direct the disposal of its residual
tonnage to a facility, provided that the parties shall thereafter renegotiate the related provisions of
this contract. In the event that CRT uses a non- Orange County landfill with lower disposal fees, CRT
will credit the District with an amount equal to seventy -five percent (75 %) of the savings realized by
not using the Orange County landfill. The landfill component of CRT's compensation is set forth in
Exhibit A.
8. CRT may be entitled to an annual increase in the compensation paid pursuant to this
AGREEMENT for labor performed on behalf of DISTRICT based upon the Consumer Price Index
(CPI) for All Urban Consumers for the Los Angeles- Riverside- Orange Co. area (1967 =100 for
indices purposes) as prepared by the U.S. Department of Labor Bureau of Labor Statistics for the
trailing twelve month period of May to May each year. Said increase shall become effective on each
yearly anniversary date beginning July 1, 2002 and on each July 1 thereafter for the six -year term
beginning July 1, 2002. As agreed to by the parties, the base rate effective July 1, 2002 shall be
$38.06 per ton. Said CPI increase shall not exceed three (3 %) percent irrespective of said calculation
and shall be calculated on all expenses relating to this AGREEMENT except landfill fees, and any
increase given in paragraph 7. Further, said increase shall not exceed 16% in total over the six -year
term beginning July 1, 2002. CRT shall provide such records and other supporting materials as may
be required by DISTRICT to support CRT's claim for increase in compensation. The sixteen percent
(16 %) cumulative cap for the six -year term from July 1, 2002 to July 1, 2008 shall be limited to 16%
of the amount given on July 1, 2002. Should the CPI decline, DISTRICT may be entitled to a
corresponding reduction. The parties will renegotiate CPI increases in 2008. The compensation set
forth in Paragraph 8 shall be calculated as set forth in Exhibit A.
9. CRT shall become owner of all solid waste when delivered to its site in Stanton,
California and shall have the exclusive right to market all recycled material reclaimed from solid
waste generated by DISTRICT pursuant to this AGREEMENT and shall be entitled to any and all
income derived from said marketing over which DISTRICT shall have no claim.
10. In consideration for said compensation, CRT shall, in addition to the other covenants
set forth herein, perform as follows:
(a) CRT guarantees DISTRICT that its rate is the most favorable rate given to
any customer using service similar to DISTRICT. If CRT negotiates a more
favorable rate with any customer, that rate shall become the rate for the
DISTRICT.
(b) CRT shall participate in AB 939 education programs by providing five tours
of the facility each year, conducting one seminar per year, and preparing and
mailing one brochure to each resident every two years, if requested by
DISTRICT. DISTRICT to supply mailing labels. Said brochure to be mailed
within six (6) months of written request by DISTRICT.
(c) CRT shall have an agreement in place throughout the term of this
AGREEMENT for composting or processing green waste with a properly
licensed facility. CRT shall use its best efforts to process green waste by
composting.
(d) CRT shall make available to DISTRICT its audited financial statement which
shall be performed on at least a yearly basis. Such financial statement shall
not become a public record and DISTRICT will use its best efforts to protect
such information from becoming available to competitors.
(e) CRT shall separate telephone books at its material recycling facility at no
additional cost to DISTRICT if DISTRICT determines to pursue such a
program.
(f) CRT shall provide support to an anti - scavenging program up to $5,000 per
year if so requested by DISTRICT. Said $5,000 to be increased or decreased
yearly according to the CPI beginning July 1, 2003 using the same procedure
as specified in paragraph 8.
(g) CRT shall maintain a master manifest in which the transportation and
disposal of all waste from DISTRICT shall be logged. Such manifest shall
show dates, volumes, nature of the waste, transporter and disposal sites. CRT
shall keep supporting documentation to establish the details of such disposal.
All of such records shall be kept for 50 years. Such records shall be
provided to DISTRICT upon request.
(h) CRT shall guarantee that it will meet the tonnage diversion requirements of
AB 939 as the same exists or as that law is amended. CRT shall prepare and
retain appropriate documentation showing how the state requirements have
been met including providing monthly diversion reports signed by an official
of CRT. Either party may request renegotiation if such requirements are
substantially revised.
(i) CRT agrees to keep its site open during normal business hours, Monday
through Friday, consistent with past practices, to facilitate DISTRICT's trash
haulers disposal of collected waste. CRT will allow regular inspections by
DISTRICT's personnel or agents to monitor the recycling of DISTRICT's
solid waste.
J;"' v
11. CRT will indemnify, defend, and save harmless DISTRICT, its directors, officers, agents,
employees, successors, assigns and insurers from and against any and all loss, damage, liability,
.� claims, costs or causes of action which in any way result from the acts or omissions of CRT, its
directors, officers, agents, employees, parent, subsidiaries, affiliates, successors, assigns and insurers
in connection with or which in any way relate to the award of this AGREEMENT (including the
exclusive nature thereof) to CRT or to the performance of this AGREEMENT. In addition, CRT
agrees to indemnify, defend and hold DISTRICT harmless from any and all claims made or liability
that may arise under CERCLA or similar federal or state law relating to responsibility for clean up
costs of any waste disposal facility site to which CRT may transfer or dispose of waste collected
pursuant to this AGREEMENT.
12. DISTRICT will indemnify, defend and hold harmless CRT, its directors, officers,
agents, employees, successors, assigns, and insurers from and against any and all loss, damage,
liability, claims, costs or causes of action which in any way result from any acts or omissions of
DISTRICT, its directors, officers or employees in connection with the performance of their
obligations which are the subject of this AGREEMENT. CRT shall promptly notify DISTRICT of
any claims or complaints that it receives that may result in DISTRICT's indemnification of CRT.
13. CRT shall provide insurance coverage on its operation as follows:
(A) Workers' Compensation Insurance: CRT shall take out and maintain during
the life of this AGREEMENT workers' compensation insurance and, if any
work is sublet, CRT shall require subcontractor similarly to provide workers'
compensation insurance. CRT agrees to indemnify DISTRICT for any
damage resulting to it from failure of either CRT or any subcontractor to take
out or maintain such insurance.
(B) Public Liability and Property Damage Insurance: CRT shall take out and
maintain during the life of this AGREEMENT such public liability and
property damage insurance as shall protect DISTRICT, its elective and
appointive boards, officers, agents and employees, being public liability and
property damage insurance on account of bodily injuries, including death
resulting therefrom in the sum of not less than TWO MILLION ($2,000,000)
DOLLARS combined single limit resulting from any one accident which may,
arise from the operations of CRT in performing the work provided for herein.
Said public liability and property damage insurance (including automobile)
shall be endorsed to name DISTRICT, its elective board, officers, agents and
employees as additional insureds with respect to all operations performed by
or on behalf of CRT. Said policy shall be endorsed to provide that coverage
shall not be reduced or canceled unless and until ten (10) days.' advance
notice of such reduction and /or cancellation has been mailed to DISTRICT.
Said public liability and property damage insurance (including automobile)
shall include contractual liability insurance applying to liability assumed
under this AGREEMENT. Said public liability and property damage
insurance shall be endorsed to stipulate that such insurance as is afforded to
DISTRICT, its elective board, officers, agents and employees shall be
primary insurance and not contributing with any other insurance maintained
by DISTRICT. CRT shall furnish DISTRICT, concurrently with the
execution hereof, with satisfactory proof of carriage of the insurance required
and adequate legal assurances that each carrier will give DISTRICT at least
ten (10) days' prior notice of the cancellation of any policy during the
effective period of this AGREEMENT.
14. CRT shall obtain at its expense all permits and licenses from any governmental
agency having jurisdiction over its operations necessary for the performance of this AGREEMENT
and shall provide proof that said licenses and permits have been obtained if required to do so by
DISTRICT.
15. In the event CRT or DISTRICT, or either of them, institutes action to enforce the
terms of this AGREEMENT, the prevailing party shall be entitled to reasonable attorneys' fees and
court costs.
16. This AGREEMENT shall be interpreted and enforced in accordance with the laws of
the State of California.
17. All notices, requests, demands and other communications under this AGREEMENT
shall be in writing and shall be deemed duly given (i) if delivered by hand and receipted for by the
party addressee, or (ii) mailed by certified or registered mail with postage prepaid, on the third
business day after the mailing date. Addresses of the parties hereto are as follows:
C.R. TRANSFER, INC. COSTA MESA SANITARY DISTRICT
11292 Western Avenue P.O. Box 1200
Stanton, CA 90680 Costa Mesa, CA 92628 -1200
18. This AGREEMENT establishes contract rights that shall be binding upon, and shall
inure to the benefit of, the successors, assigns, heirs and legal representatives of the parties hereto.
This AGREEMENT may be executed in one or more counterparts, each of which shall constitute an
original. No amendment, modification, termination or cancellation of this AGREEMENT shall be
effective unless in writing signed by both parties hereto.
19. If any portion of this AGREEMENT shall be invalidated on any ground by a court of
competent jurisdiction, the balance of said AGREEMENT shall continue to be binding upon the
parties hereto.
20. Each of the parties hereto warrants and represents to the other that this AGREEMENT
has been approved by its board of directors and that its officers are duly authorized to execute this
AGREEMENT and make the same binding upon the parties hereto.
21. This AGREEMENT may not be assigned by CRT without the express written consent
of the Board of Directors of DISTRICT.
Dated: a z 13 /0-3 Costa Mesa Sanitary District
Dated: 2 i5-lo
By• 7;7- I ,N-�-
retary
CR
EXHIBIT A
I. Landfill Fee Calculation (Paragraph 7)
CRT to be paid landfill fees based on tonnage delivered to CRT, diversion
required as specified in II below, and County landfill fees.
Example: -
Waste delivered to CR Transfer = 2,650 tons
CR Transfer required to recycle 50%
Gate fee = $22 /ton
2,650 tons delivered to CRT; CRT recycles 1,325 leaving 1,325 to dump
1,325 x $22.00 per ton = CRTs compensation for the landfill calculation'
'(Note: For administrative processing convenience the District requires
50% diversion but simply pays $11.00 per ton on waste delivered to CRT)
II. Base Compensation Paid to CRT (Paragraph 8)
Fiscal Year
Diversion
Base Compensation per ton of
Beginning
Required
waste delivered to CRT
July 1
19.49
(excluding landfill fees)
x
19.49) +
1995
25.00%
$18.92 + 3% (18.92)=
1996
30.00%
Previous Base + CPI
1997
30.00%
Previous Base + CPI
1998
37.50%
Previous Base + CPI + $6.92 per ton
1999
50.00%
Previous Base + CPI + $6.92 per ton
2000
50.00%
Previous Base + CPI
2001
50.00%
Previous Base + CPI
2002
50.00%
Previous Base + Renegotiated CPI
2003
50.00%
Previous Base + CPI
2004
50.00%
Previous Base + CPI
2005
50.00%
Previous Base + CPI
2006
50.00%
Previous Base + CPI
2007
50.00%
Previous Base + CPI
2008
50.00%
Previous Base + Renegotiated CPI
III. Combined Rate to CRT
Not to exceed 3%
18.92
('0.03000
x
18.92) +
18.92 =
19.49
(0.01547
x
19.49) +
19.49 =
19.79
(0.01270
x
19.79) +
19.79 =
20.04
(0.01755
x
20.04) +
20.04 =
27.31
(0.02402
x
27.31) +
27.31 =
34.89
(0.02948
x
34.89) +
34.89 =
35.92
(0.03000
x
35.92) +
35.92 =
37.00
(0.0287
x
37.00) +
37.00 =
38.06
For convenience purposes, the rate to CRT shall be $49.06 for all wastes
delivered to CRT in the following example:
$11 per ton for landfill costs
$38.06 for base compensation
$49.06 per ton
(Note: CPI increases only apply to the base compensation component.)
P
_'d
FRANCHISE HAULER AND TRANSFER
STATION ACKNOWLEDGMENT
THIS FRANCHISE HAULER ACKNOWLEDGMENT, dated as of
1997 (the "Acknowledgment "), is made and entered into by and between the OSTA MESA
SANITARY DISTRICT, (the "District ") and COSTA MESA DISPOSAL, INC. (the "Franchise
Hauler ") and C.R. TRANSFER, INC., a California corporation (the "Transfer Station ").
WITNESSETH
WHEREAS, the District and the Hauler have heretofore entered into an agreement
entitled AGREEMENT, dated as of June 9, 1994, (the "Franchise "); and
. WHEREAS, the Franchise provides for the collection and disposal of certain municipal
solid waste as described therein ( "Franchise Waste ") generated within the District; and
WHEREAS, the Franchise further provides that Franchise Hauler will deliver said solid
waste to Transfer Station; and
WHEREAS, the District also has an Agreement with Transfer Station by which District
has agreed to deliver all curbside residential waste to Transfer Station; and
WHEREAS, Orange County (the "County ") owns, manages and operates a sanitary
landfill disposal system for municipal solid waste generated within the County; and
WHEREAS, the District and the County have heretofore entered into a Waste Disposal
Agreement, dated as of 04L64, /o , 1997 (the "Disposal Agreement ") determining that
the execution of such Disposal Agreement will serve the public health, safety and welfare of the
residents of the District and County, by maintaining public ownership and stewardship over the
Orange County Landfill Disposal System (the "Disposal System "); and
WHEREAS, under the Disposal Agreement, the County has agreed to provide long -term
disposal of all municipal solid waste generated within the District and the District has agreed to
exercise all legal, and contractual power which it possesses from time to time to deliver or cause
the delivery of such waste to the Disposal System; and
WHEREAS, the provisions of the Waste Disposal Agreement which guarantee capacity
for the long term disposal of waste at specified rates generated in the District provide significant
benefits to the Hauler and Transfer Station; and
WHEREAS, notwithstanding any Franchise provisions to the contrary, the Franchise
Hauler and the Transfer Station explicitly acknowledge the aforementioned benefits to the
District, the County, the Hauler and the Transfer Station in providing for the disposal of all
Franchise Waste to the Disposal System; and
f
I
WHEREAS, the District, Franchise Hauler and the Transfer Station desire to enter into
this Acknowledgment to assure the District, the Hauler and the Transfer Station will be entitled
to the benefits of the Waste Disposal Agreement and to assure conformity with the waste
delivery obligations which have been agreed to by the District under the Disposal Agreement
through the delivery of waste by the Franchise Hauler and the Transfer Station to the Disposal
System; and
WHEREAS, the Franchise Hauler's agreement to deliver Franchise Waste to the Transfer
Station, and Transfer Station's agreement to deliver Franchise Waste to the Disposal System
under this Acknowledgment is given in consideration of the right to receive the Contract Rate
for such disposal as provided in the Disposal Agreement.
NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto,
intending to be legally bound hereby, agree as follows:
1. Capitalized terms used and not otherwise defined herein are used as defined in the
Disposal Agreement.
2. The Franchise Hauler and the Transfer Station hereby waive any right which it
may possess under applicable law to contest on any ground, constitutional, statutory, case law,
administrative or otherwise, (a) the right, power or authority of the County or the District to
enter into or perform their respective obligations under the Disposal Agreement, (b) the
enforceability against the County or the District of the Disposal Agreement, or (c) the right,
power or authority of the District to deliver or cause the delivery of all Controllable Waste to
the Designated Disposal Facility in accordance with this Acknowledgment.
3. The District, the Franchise Hauler and the Transfer Station each hereby represent
that this Acknowledgment has been duly authorized by all necessary action of their respective
governing bodies.
4. The Franchise Hauler shall deliver or cause to be delivered all Controllable Waste
(including all residue from the processing by any means, wherever conducted, of Controllable
Waste), to the Transfer Station, and Transfer Station shall deliver any Residue (as that term is
described in the Disposal Agreement) to the Disposal System, and shall otherwise assist the
District in complying with its obligations under the Waste Disposal Covenant in Section 3.1 of
the Disposal Agreement.
5. The Franchise Hauler shall not haul Controllable Waste to any materials recovery
facility, composting facility, intermediate processing facility, recycling center, transfer station
or other waste handling or management facility unless the contract or other agreement or
arrangement between the Franchise Hauler and the operator of such facility is sufficient in the
opinion of the County to assure that the Residue from such facility constituting City Acceptable
Waste (or Tonnage equivalencies) and the City Acceptable Waste transferred by such facility
shall be delivered to the Designated Disposal Facility in compliance with the Waste Disposal
Covenant.
I
6. The Transfer Station shall pay the Contract Rate imposed by the County at the
Designated Disposal Facility for the disposal of all Controllable Waste, which rate shall be
subject to potential adjustment necessary to reflect the circumstances set forth in the Disposal
Agreement.
7. Nothing in this Acknowledgment is intended to restrict any right or responsibility
explicitly given in the Franchise or to the Transfer Station to recycle City Acceptable Waste,
except as provided in paragraph 5 above with respect to Residue from any such recycling
operations.
8. The obligations of the Franchise Hauler under this Acknowledgment shall apply
notwithstanding any provision of the Franchise which may conflict herewith.
9. This Acknowledgment may be enforced by the District by any available legal
means. In any enforcement action by the District, the burden of proof shall be on the Franchise
Hauler or Transfer Station, respectively, to demonstrate compliance herewith.
10. This Acknowledgment shall be in full force and effect and shall be legally binding
upon the District, Franchise Hauler and Transfer Station from the date hereof and shall continue
in full force and effect until the earlier of (i) the end of the term of the Franchise or Transfer
Station agreement, respectively, or (ii) the end of the term of the Disposal Agreement.
11. The District, Hauler and Transfer Station agree that the County shall be an
express third party beneficiary of this Acknowledgment, and shall be entitled to independently
enforce the obligations of the Hauler and Transfer Station hereunder.
Dated this L;cL day of , 1997 COSTA :MESA SANITARY DISTRICT
COSTA i1ESA DISPOSAL, INC.
By: 71] nr"
President
C.R. TRANSFER;,' INC.
M
am
Costa Mesa � Fq Fq
.Disposal
ARecycling and Refuse
Partnership
September 2, 2004
Costa..Mesa Disposal & CR &R
Incorporated
CR &R Incorporated founded in
1963
Q Locally Owned & Operated
CMD trucks will now be parked
in Stanton yard
CMD Trucks currently bein
painted (red, white, & blue
No changes made to CMD
signage and phone number
All vehicles used will be in
compliance with AQMD & CARB
Customer Care
Not Just Another Hauler
• CMD Staffing
— Dan Otting Operations Manager
— Frank Pedraza — Route Foreman
- Sandra Alvarez — Customer Service Representative
�f- • Database converted from address to parcel number
• State Of The Art telephone system
• T -1 line
• High Speed Internet access
• Electronic mail
• Website with on line payment capabilities (in
process)
• Auto payment
Call Center
World Class Service
• Call Center Manager
• Real.Time Call
Monitoring
• Training &Support
• 3.0 Second Hold Time
Goal
• Incentives
• World Class Service
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!Customer SeMce
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Calls llValting�'
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•
•
Dur Custc
80C Cl 40 -384 Customer Profile
Customer no.: 84 -13007 1 Strt /Stop: 60200 Updated '2 /23/04 by MARIALi-
Customer name: CHRIS ALEXANDER Alpha Search Code: ALEXANDER
Billing addrs: 31091 AUGUSTA DR.
City: LAGUNA NIGUEL State.CA Zip: 92677 TO: OCLN PL: BR --
Service addrs: 30 NEW CHARDON MN:
LAGUNA NIGUEL CA 92677
Note Pad
1 2/23/04 16:10,REPR REPAIR COMTRIMER, -MF
2 1,%11 %04 9:30 REATG HAZARDOUS MRTERIRLS,, WRSI] , AIL ,IN, COMTR,IMER Mf
3 ;,5/05/03, A:02,RORD RORD CONAITIOMS /N0 PICKUP, Mf
4 2%20/03 10.49,000R COURTESY PICKUP TOOK CORTRIMERS OUT „LATE Mf
5 ,10%26/02 0,:19 OULKV 2ND, OULKY ITEMS f USCHEDULED- TABLE 8 DESK, Mf
6 D/07/02 13 22 OULKY AULKY ITEMS, PICKUP, -COUCH 6 CHAIR MF
7 6/01/00, , 8,:... *ARCM, ARTS ACCOUNT OPENED O8; 01 94 C[
Date Time Code' .................. te User
22404 858 MRRIAL
NEW
F1 -Main F2 -0k. F4 -Del F6 -Selec HAM F9- Mrk /Unmrk F10 =nevi F11'Vie
a
Costa Mesa Disposal
For A Cleaner Community
Container Management.
- Inventory management
- Resident requests
- Changing out containers
Q Operation Overflow
— Photo snapped
— Letter sent
— Action taken
Costa Mesa Disposal
Above and Beyond
Fully Automated Collection
System
Cost incurred by CMD / No
cost to District
CMD equipment retrofitted
for automated collection
Reduction in operating
times and Worker's Comp.
claims and insurance costs
Reduction in broken barrels
Adversities in Automation
• Overloaded
Containers
• Areas restricted in
space
Challenging Areas
Customer Acceptance
• Advertising through
various. outlets;
Examples-
Newspaper, Cable,
Signage on Truck
• Present benefits of
automation to
customers
Costa: Mesa- Disposal / CR &R Recycling
Meeting the needs of our communities
Q School Recycling
— Paper /Phone book
recycling program
— Additional . programs
available
A 2
x 1.
1, 74M
i
aq n- W i
�*"' ' s qty
s
� � ' �} � °_ r� *�eA" �.oca vm rf is N�', �"' � � / , • 1
CR Transfer
Always Leading The Way
Corporate Processing Facilities
Sort Line in Operation s.inc
1989
Combo Screen Adjustmen
Materials Sorted.:
Plastic (natural vs. color)
Aluminum
Other Metal
Glass
— Paper
— Contaminants
Future Steps In AB939 Continuing
Compliance
MRF option for Apartments /Condo /Town homes
Self Haul Audit in partnership with other local jurisdictions
Work with Landscapers
Work with Self Haulers /Clean Up Crews
Tonnage Reporting Accuracy