Contract - Costa Mesa Disposal - 2001-04-26ADDENDUM NO.2
This Addendum to Agreement is made and entered into this day of
2001, by and between the COSTA MESA SANITARY DISTRICT (hereinafter
re erred 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.
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.
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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 'f 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.
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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.
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COSTA MESA SANITARY DISTRICT
Secretary
COSTA MESA DISPOSAL, INC.
By:
Title: