Contract - ORCO - 1975-12-03 V
S E C O N D A D D E N D U M
THIS AGREEMENT made and entered into this 3rd day of
December 1975 by and between the COSTA MESA SANITARY
DISTRICT OF ORANGE COUNTY California, hereinafter referred to
as DISTRICT and ORCO DISPOSAL SERVICE, INC a California cor-
portion hereinafter called CONTRACTOR
W I T N E S S E T H T H A T
WHEREAS, the parties hereto entered into an agreement on
the 3rd day of April 1974 providing for the pickup and disposal
of trash within the District and
WHEREAS the parties hereto have heretofore and on the
7th day of AUGUST 1974 by First Addendum hereto amended
said Agreement and
WHEREAS the parties .hereto desire to amend said contract
in certain particulars by this Second Addendum and
WHEREAS the parties hereto desire to set forth their
rights and liabilities in connection herewith
NOW, THEREFORE for and in consideration of the covenants
contained herein performed and to be performed, the parties hereto
agree as follows
I
GENERAL PROVISIONS
General Provisions of the Agreement of April 3 1974 is
hereby amended to read as follows
'v
Contractor agrees to furnish all the labor material
and equipment necessary for the collection of all garbage and
rubbish as hereinafter defined within the boundaries of the
Costa Mesa Sanitary District of Orange County California as
said boundaries now exist or may hereafter exist and the dis-
posal of such garbage and rubbish at a legal dumping place In
consideration of the aforesaid things to be done by Contractor
District agrees to pay to Contractor the consideration herein-
after set forth
As further consideration for the extension of this
Agreement to the termination date as hereinafter set forth
Contractor agrees that when, in the judgment of District rubbish
or garbage becomes salvagable for any purpose and saleable for
money or other consideration District shall have the right to
readjust compensation paid hereunder to credit District for said
salvage even to the extent of requiring Contractor to pay District
for the privilege of collection should the salvage value of
garbage and rubbish collected exceed the consideration payable
to Contractor hereunder
II
Except as herein provided and as set forth in the First
Addendum Agreement thereto said contract of April 3 1974 shall
in all other particulars remain in full force and effect and
binding upon the parties hereto
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IN WITNESS WHEREOF the parties hereto have hereunto
set their hands and seal on the day and year first above written
COSTA MESA SANITARY DISTRICT
OF ORANGE COUNTY CALIFORNIA
■
By
President
ATTEST
By -2(tz -6
Secretary
ORCO DISPOSAL SERVICE INC
By / _
APPROVED AS TO FORM
ttor ey fostrict
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F I R S T A D D E N D U M
THIS AGREEMENT made and entered into this 7th day
of AUaust 1974 by and between the COSTA MESA SANITARY
DISTRICT OF ORANGE COUNTY CALIFORNIA hereinafter referred
to as DISTRICT and ORCO DISPOSAL SERVICE INC a corpora-
tion hereinafter called CONTRACTOR
W I T N E S S E T H T H A T
WHEREAS the parties hereto entered into an agreement
on the 3rd day of April 1974 providing for the pick-up and
disposal of trash within the District and
WHEREAS the parties hereto desire to amend said con-
tract in certain particulars and
WHEREAS the parties hereto desire to set forth their
rights and liabilities in connection therewith
NOW THEREFORE for and in consideration of the cov-
enants contained herein performed and to be performed the
parties hereto agree as follows
I
Paragraph II entitled TERMS of the agreement of
April 3 1974 is hereby amended to read as follows
II TERMS The term of this contract shall
be from the date hereof to July 1 1979
Contractor shall have the option to extend this
contract for an additional period of five ( 5)
years from and after the termination hereof
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ti
provided it be not in default and at terms and
conditions to be negotiated upon the exercise of
said option Said option shall be exercised in
writing not less than six ( 6) months prior to the
termination date hereof and said •extension shall
not be effective upon the termination date set
forth herein if Contractor be in default or it the
parties hereto cannot agree upon terms and
conditions
II
Section IV of the Agreement of April 3 1974 is
hereby amended to read as follows
IV FORMULA FOR COMPENSATION CALCULATION.
The basic rate set forth in paragraph III of
this amendment shall prevail for one ( 1) year
and three ( 3) months from the date hereof
Thereafter 'said rate shall be increased or de-
creased by a percentage which is equal to the
percentage increase or decrease in the Consumer
Price Index for the Los Angeles/Long Beach area
the group entitled All Items as published by the
U S Department of Labor Bureau of Labor Statis-
tics from the month of May in the previous year
to the month of May in the current year The
effective date of this rate increase or decrease
shall be July 1 of each year Each increase or
decrease of basic occupancy rate occurring as a
result of this method of determining said rate
shall be deemed a new vasic rate for the purposes
of calculation for subsequent years in the term
of this contract
III
Except as herein provided said contract of April 3
1974 shall in all other particulars remain in full force and
effect and b-finding upon the parties hereto
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•
IN WITNESS WHEREOF the parties hereto have hereunto
affixed their hand and seal that day and year first above
written
COSTA MESA SANITARY D RICT OF
ORANGE COUNTY /
-._ _
By •
President
ATTEST DISTRICT
By
Secretary
ORCO DISPOSAL SERVICE INC a
Corporation
By b ?� �
ontractor 7� � /
ATTEST CONTRACTOR
By �j�.-i .. c r-- �:L e �/j
lr�L�cretar (/J(
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A G R E E M E N T
THIS AGREEMENT made and entered into this ailkay
of 4 ek c__ 1974 by and between the COSTA MESA SANITARY
DISTRICT OF ORANGE COUNTY CALIFORNIA hereinafter referred
to as DISTRICT and ORCO DISPOSAL SERVICE INC a Corpora-
tion hereinafter called CONTRACTOR
W I T N E S S E T H T H A T
WHEREAS the parties hereto did on the 22nd day of
July 1958 enter into a written agreement wherein Contractor
agreed to furnish all labor material and equipment necessary
for the collection of garbage and rubbish within the boun-
daries of the Costa Mesa Sanitary District and District in
consideration thereof agreed to pay the amount set forth
therein plus increases as from time to time where authorized
by the Board and which said agreement was for a term of
three (3) years ending September 30 1961 and
WHEREAS the District and Contractor have from time
to time for valuable consideration extended said agreement
until the termination date is now established at July 1 1979
and
WHEREAS the parties thereto .desire to revise said
agreement and to modify certain terms thereof and to set
G f
forth their1respective rights and -liabilities
NOW THEREFORE for and in consideration of the terms
herein contained performed and to be performed the parties
hereto agree as follows
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I'
GENERAL PROVISIONS
Contractor agrees to furnish all the labor material
and equipment necessary for the collection of all garbage
and rubbish as hereinafter defined within the boundaries
of the Costa Mesa Sanitary District of Orange County
California as said boundaries now exist or may hereafter
exist and the disposal of such garbage and rubbish at a
legal dumping place In consideration for the aforesaid
things to be done by Contractor District agrees to pay
to Contractor the consideration hereinafter set forth
As additional consideration and as partial consi-
deration for the extension of this agreement to the termin-
rN ation date as hereinafter set forth Contractor forgoes its
right to negotiate for increased basic rate per occupancy
and agrees to abide by the formula for compensation as
hereinafter set out in Paragraph IV
As further consideration for the extension of this
agreement to the termination date as hereinafter set forth
Contractor agrees that when in the judgment of District
rubbish or garbage becomes salvagable. for any purpose and
saleable £oramoney or other, consideration District shall
have the right to readjust compensation paid hereunder to
az
credit District for said salvage even to the extent of re-
quiring Contractor to pay District for the privilege of
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collection should the salvage value of garbage and rubbish
collected exceed the consideration payable to Contractor
hereunder
II
TERMS
The term of this contract shall be from the date
hereof to July 1 1979
Contractor shall have the option to extend this
contract for an additional period of five ( 5) years from
and after the date hereof provided it be not in default
and at terms and conditions to be negotiated upon the
exercise of said option Said option shall be exercised
in writing not less than six ( 6) months prior to the term-
ination date hereof and said extension shall not be effective
upon the termination date set forth herein if Contractor
be in default or if the parties hereto cannot agree upon
terms and conditions
/ III
PAYMENT TO CONTRACTOR BY DISTRICT
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 basic rate of One Dollar and Ninety One Cents
($1 91) multiplied by the total number of occupancies as the
term occupancies as hereinafter defined
Each monthly payment shall be made on or before the
15th day of the month immediately following the month for
which service was rendered
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IV
FORMULA FOR .COMPENSATION t
t CALCULATION
t , r
TheA-basic .rate set forth in Paragraph III of this
r t
agreement shall prevail for one ( 1) year from the date
R
hereof Thereafter said rate shall be calculated upon the
United States Department of Labor Bureau of Labor Statistics
Consumer Price Index Subgroup All Items entitled Consumer
Price Index Los Angeles-Long Beach average (1967=100) using
the index for said sub-group published as of the month in which
falls the annual anniversary of this- agreement Each increase
or decrease in calculation' of basic occupancy rate occurring
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
V
DEFINITIONS
A Definition of Rubbish . The word rubbish shall
include all refuse of any kind or nature except garbage
swill manure or sewage waste
B Definition of Garbage The word garbage shall
include table refuse offal swill and every accumulation of
animal vegetable and other matter that attends preparation
consumption decay dealing in or storage of meats fish
fowls fruits and vegetables or other food and shall include
all animal and vegetable refuse from kitchens and all house-
hold waste from or intended for use as food and all vegetable
trimmings from market or stores The following are
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t
specifically not included in the term garbage Organic residues
resulting from commercial canning or processing of food
products dead animals manure sewage waste waste water
paper and other cumbustible .materials ( other than such
wrapping for garbage as may be required by the City) crockery
glass cans and other metallic objects ashes and sweeping
C Definition of saleable garbage and Rubbish
Saleable garbage and rubbish shall be those materials for
which a salvage market has developed either through the
facilities of the District any other governmental agency
or any private concern and shall include but not necessarily
be limited to recycleable paper reclamation of scrap metal
chemical reprocessing of garbage as defined herein for the
reclamation of fats oils minerals and other useable solids
and liquids and all other processes resulting in a saleable
product having value and a product market
D Definition of Occupancy. An occupancy is de-
termined 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-half occupancy
3 Mobile home lots per Assessor s Parcel -
one-third occupancy per trailer lot
E Occupancy Exemptions Assessor s Parcels meeting
the following criteria are exempt
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1 Property of governmental agencies or other
tax exempt property
2 Property both within the District and
within the City of Newport Beach
3 Multiple residential properties including
mobile home parks contracting for or using private services
and having qualified for district exemption
4 Undeveloped parcels until one or more
living units are constructed thereon
5 Parcels incapable of generating rubbish
and garbage as defined herein
6 Parcels with improvements requiring a
type of service unavailable from contractor
7 Those parcels which have applied for and
been granted exemptions by the District in accordance with
District rules and regulations
F Initial Occupancy Calculation The occupancy
for which Contractor will be compensated shall be determined
from the special assessment roll for the fiscal year of July
1 1973 to June 30 1974 as the same is maintained on file
in the office of the Director of Finance for the District
and will be readjusted annually based upon the special
assessment roll for succeeding years following the one
heretofore mentioned
The occupancy count may be increased or decreased
monthly and it is understood and agreed by and between the
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parties hereto that said increase will be determined by any
occupancy permits and demolition permits issued by the
Building Department for the City of Costa Mesa The occupancy
count may also be increased wherever Contractor is able to
determine to the satisfaction of the District that any
parcel comming within the exemptions as heretofore set forth
is no longer exempt and that he is in fact actively engaged
in the weekly collection of trash from said occupancy
VI
FREQUENCY OF COLLECTION
A Garbage
1 Commercial Areas Contractor shall collect
all garbage in commercial areas daily Monday through Saturday
inclusive
a Commercial Area is hereby defined as
any area located within the Costa Mesa Sanitary District which
is now zoned; or which, may hereafter be zoned for commercial
or industrial use by the governmental body having jurisdiction
over such area
2 Residential Areas
Contractor shall collect all garbage from
residential areas once each week
a Residential Area is defined as any
area located within the Costa. Mesa Sanitary District zoned for
residential or agricultural use by the governmental body having
jurisdiction over such area
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B Rubbish.
1 Commerical Areas Contractor shall collect
all rubbish from the commercial areas of the District daily
Monday through Saturday inclusive except where either after
notice from the District Manager or after request from the
Contractor to the District Manager permission has been
granted by said District Manager for a lessor number of
collections per week
2 Residential Areas
Contractor shall collect all rubbish from the
residential areas of the District at least once each week
and in addition shall provide more frequent service for such
commercial occupancies or residences of five ( 5) or more units
as may in the opinion of the District Manager require such
additional service
VII
SCHEDULE OF COLLECTIONS
A. Initial Schedules . Beginning with the date hereof
the existing routes schedules and times for the collection
of garbage and rubbish shall be maintained and continued
by Contractor
B Change of Schedules From time to time during the
period of this Contract the Manager of the District 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 both garbage and rubbish and
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upon receipt of consent of the Manager of the District and
upon one week s written notice in advance to the occupants
of all occupancies may commence such new schedule
The Manager of the District shall have the right
at all times during the term of this Contract to require
the Contractor to maintain routes schedules and times for
collection• of garbage and rubbish as required by said
Manager
All Notices requiredtto be given pursuant to this
contract shall be given by Contractor at his own expense
VIII
HOURS OF COLLECTION
Collection of garbage and rubbish shall not commence
earlier than 5 00 a m and shall end on or before 9 00 p m
The District Manager shall have the right to authorize
the Contractor to collect garbage and/or rubbish at an earlier
or latex hour than above prescribed in any commercial areas
that said Manager finds will not constitute a nuisance to
the neighborhood
IX
HOLIDAYS
Collection of garbage and rubbish shall not be made
on Sunday Contractor shall not be required to collect garbage
and rubbish on Christmas Day Thanksgiving Day or New Years
Day July 4th (Independence Day) Labor Day (First Monday
in September) Memorial Day (Fourth Monday in May) but shall
have the option to so do if in Contractor s judgment said
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collection is necessary to maintain his schedules
X
DISRUPTION OE SCHEDULE
A Holiday pickups which are set forth in Paragraph
IX shall be omitted entirely provided however that the
District Manager may require the Contractor to pickup said
holiday schedules within seventy-two (72) hours after said
holiday if in his judgment said pickup is necessary for
the health safety and welfare of the persons living
within the District
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 collection within
seventy-two (72) hours
C In no event shall Contractor disturb the re-
maining schedule for garbage and rubbish collection or
pickup On the holiday mentioned and in the event of a
disruption 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
XI
CONTRACTOR S EQUIPMENT
Contractor shall provide adequate equipment for the
collection of garbage and rubbish Each vehicle used for
the collection of garbage and rubbish shall have the name of
the Contractor plainly visible on the outside of said vehicle
for the purpose of identification
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All equipment used for collection of rubbish shall
be enclosed to insure that rubbish is not spilled on streets
and private properties Contractor shall comply with all
requirements of the Health Department
All equipment used for collection of garbage shall be
watertight and shall be covered with suitable waterproof
tarpaulins metal covers or other satisfactory covers
No rubbish or garbage 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 garbage and rubbish pursuant to' this Contract shall be
subject to inspection by the Manager of the District and
any defects in such equipment found to exist shall be
immediately corrected by Contractor
XII
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
The District reserves the right to withhold compensation
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under the contract until any claim for damaged containers
has been paid or adjusted with the owners thereof
XIII
LIMITATIONS ON GARBAGE AND RUBBISH COLLECTION
Contractor shall not be obligated to collect rubbish
in the following cases
A Where the rubbish is not placed in an adequate
container ( adequate container shall be any container
approved by the Board from time to time as set forth in
the rules and regulations established by the Board)
B Industrial waste in excess of one ( 1) cubic
yard per week ( industrial waste shall be defined as the
by-product of any manufacturing process in which raw or
semi-finished materials are worked in the preparation of
a product)
C In excess of two hundred pounds ( 200 lbs) in
commercial areas for any one ( 1) pickup
D In addition to the foregoing reference is hereby
made to the rules and regulations adopted by the District
if any for the collection of rubbish and regulations as the
same now exist or may hereafter exist if changed by said.
District and the same are included in this Contract as
an integral part hereof
XIV
BOND
Contractor shall furnish a Faithful Performance Bond
in the sum of Twenty Thousand and No/100 ($20 000) Dollars
for the rubbish and garbage contract It is hereby agreed
•
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that in the event of default by Orco Disposal Service
Inc District shall have the right in addition to all other
rights herein given to keep possession of and use all the
equipment of Contractor previously used by Contractor for
the pickup of rubbish and garbage within the District
This right shall continue for a period of six ( 6) months
from the date of said default and District agrees to pay
Contractor a fair rental payment for the use of said equipment
during any defaulting period said payment to be negotiated
by District and Contractor at the time of any default which
may occur hereunder
XV
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 $1 000 000 00
for the benefit of the third persons who may be injured or
damaged as a result of any negligent operation of the
Contractor in-the performance of his work under this contract
which said policy shall, name the District as an additional
insured thereunder
Contractor further agrees to keep on file with the
District a certificate or certificates of insurance duly
executed by the Contractor s insurance carrier or carriers
which shall serve as evidence of the continued existence of
said insurance policies
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v
District shall not nor shall any officer or 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 officers and employees or any and all liability
arising therefrom including any attorney s fees incurred
in the defense of any suction 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 6407 Health aid Safety Code and thus does not come
within the requirements of Section 6515 1 Health and Safety
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 s
fees incurred in the defense of any such action
` XVI
WORKMEN S COMPENSATION. INSURANCE
Contractor shall also maintain in full force and
effect during the term of this Contract a workmen s com-
pensation policy and such other forms of insurance as shall
be required by law
XVII
RULES, LAWS AND REGULATIONS
Contractor shall abide by all the rules laws and
regulations of the Costa Mesa Sanitary District of Orange
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County California the City of Costa Mesa County of Orange
State of California and all other governmental agencies
having jurisdiction
XVIII
MANAGEMENT
Contractor hereby designates the Manager of the Costa
Mesa Sanitary District as its agent for the purpose of re-
ceiving complaints and investigating and rectifying failures
of service District shall charge to Contractor the sum of
Three Dollars ($3 00) for each service call as hereinafter
defined made by the Manager of said District provided
however that the maximum charge for service calls for any
one month shall not exceed Three Hundred Forty Eight Dollars
($348 00) •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 the District Manager or an employee of the
District to rectify a failure of service on the part of
Contractor in garbage and rubbish collection
The Contractor shall employ a foreman to be approved
by the District to be assigned to the Costa Mesa Sanitary
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 Costa Mesa Sanitary
District and his entire expenses shall be paid by Contractor
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XIX
DUMP CHARGE
It is understood and agreed by and between the parties
hereto that in the event the County of Orange imposes a charge
by the day or by the ton or upon each truck or upon each
company for the privilege of disposing of trash and rubbish
in the County facilities that Contractor shall have the
right to request a meeting with the Board, of the District
for the purpose of negotiating with said Board to determine
what share if any of said charge shall be paid by the District
The Agreement to negotiate by the District is not to be re-
garded by Contractor as a commitment on the part of the
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
XX
DEFAULT
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
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and mailed to the address of Contract on file with the
District or District Manager Said contract shall thereupon
be deemed terminate 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 the garbage and/or rubbish including all costs incurred by
District in the negotiation of a new Contract
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 othersubsequent breach of said Contract
XXI
ASSIGNMENT AND SUBLETTING PROHIBITED
Contractor shall not assign transfer or subcontract
this Contract or any of the work to be performed hereunder
or any part thereof without first obtaining the consent
of District
XXII
CANCELLATION OF EXISTING AGREEMENT
The agreement hereinabove referred to now in existence
dated March 1 1972 together with all addendums thereto is
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
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and is outstanding as of the date hereof
IN WITNESS WHEREOF the parties hereto have hereunto
affixed their hand and seal that day and year first above
written
COSTA MESA SANITARY DISTRICT
OF ORANGE COUNTY
----
By
V
President
DISTRICT
ATTEST
By (tU
Secretary
ORCO DISPOSAL SERVICE INC. a
CORPORATION
By .�Gl � �
ontractor
ATTEST ^ -
BY lt-tX
Secretary " UX
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