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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. 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 '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. 3 • r 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. 4 COSTA MESA SANITARY DISTRICT Secretary COSTA MESA DISPOSAL, INC. By: Title: