Loading...
HomeMy WebLinkAbout2023-12-20 Glowicki-Sawchuk-Evans - 9111 Gloria Sanchez From:Andrea Staehle Sent:Friday, February 23, 2024 10:24 AM To:Claudia Bray; Gloria Sanchez Cc:Amber Molina Subject:RE: File# CJP-3050349 -Palm Desert - Glovicki/Sawchuk/Evans Attachments:C42860 - Executed Franchise Agreement.pdf Hi Claudia, Burrtec has indemnification language with the City (page 125 of the attached agreement). Based on this language, we would like to reject the claim & tell them to file with Burrtec. We want to give Burrtec a “heads up” before sending the rejection notice. Can you send the rejection notice Thursday of next week? Thank you, Andrea Staehle Human Resources Manager City of Palm Desert 73510 Fred Waring Drive, Palm Desert, CA 92260 astaehle@palmdesert.gov | 760.776.6337 | www.palmdesert.gov From: Claudia Bray <cbray@carlwarren.com> Sent: Thursday, January 4, 2024 10:17 AM To: Gloria Sanchez <gsanchez@palmdesert.gov> Cc: Andrea Staehle <astaehle@palmdesert.gov>; Amber Molina <amolina@palmdesert.gov> Subject: RE: File# CJP-3050349 -Palm Desert - Glovicki/Sawchuk/Evans Good morning Gloria, Just following up on my email below, please provide me with status as to when I will receive the city’s answers. Best regards. Claudia BraySr Claims Examinercbray@carlwarren.comTel: (657) 622-4216 | Fax: (866) 254-4423Carl Warren & Company LLC | A V Good morning Gloria, Just following up on my email below, please provide me with status as to when I will receive the city’s answers. Best regards. 2 Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 | Fax: (866) 254-4423 Carl Warren & Company LLC | A Venbrook Company CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. From: Claudia Bray <cbray@carlwarren.com> Sent: Thursday, December 21, 2023 9:14 AM To: Gloria Sanchez (gsanchez@palmdesert.gov) <gsanchez@palmdesert.gov> Cc: Andrea Staehle <astaehle@palmdesert.gov>; Amber Molina Nunez (amolinanunez@cityofpalmdesert.org) <amolinanunez@cityofpalmdesert.org> Subject: RE: File# CJP-3050349 -Palm Desert - Glovicki/Sawchuk/Evans Hello Gloria, As Tim mentioned I have been assigned to handle these new claims against the city. I have a few questions for the city to answer in order to complete my fact development for liability. 1. Does the city have jurisdiction of the loss location? a. If not, who does? 2. Was the city made aware of the oil on the roadway prior to this incident occurring? Any documented complaints? a. If so, when? (date/time) 3. Can the city verify that the substance on the street was indeed oil? 4. Did city staff go out to the scene and take their own photos? a. If so, please send them to me for my review. 5. Any idea where the oil came from or how it got on the roadway? 6. Is there a nearby construction site that the oil could have possibly come from? 7. Please secure a copy of the police report and send it to me for my review. 8. Is there any additional information the city would like to share with me with regards to these claims? 3 Thank you for your help and support. Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 | Fax: (866) 254-4423 Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. From: Tim Varon <TVaron@carlwarren.com> Sent: Wednesday, December 20, 2023 4:08 PM To: Gloria Sanchez (gsanchez@palmdesert.gov) <gsanchez@palmdesert.gov> Cc: Claudia Bray <cbray@carlwarren.com>; Andrea Staehle <astaehle@palmdesert.gov>; Amber Molina Nunez (amolinanunez@cityofpalmdesert.org) <amolinanunez@cityofpalmdesert.org> Subject: FW: File# CJP-3050349 -Palm Desert - Glovicki Hi Gloria, Please find attached copies of our Notification Letters for your records. Have a great day! Tim Tim Varon Claims Supervisor TVaron@carlwarren.com Tel: (657) 622-4287 | Fax: (866) 254-4423 4 Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. From: gsanchez@palmdesert.gov <gsanchez@palmdesert.gov> Sent: Wednesday, December 20, 2023 11:11 AM To: thileman@palmdesert.gov; Isra.Shah@bbklaw.com; cjpia Claims <cjpia@carlwarren.com> Cc: cescobedo@palmdesert.gov; amejia@palmdesert.gov; astaehle@palmdesert.gov; Tim Varon <TVaron@carlwarren.com> Subject: File# CJP-3050349 -Palm Desert - Glovicki Attached for your review and appropriate action is Claim No. 911 submitted by David Glowicki. I will contact the Palm Desert Police for a copy of police report T232970077 and will forward to Carl Warren as soon as possible. If you have questions or need additional information, please do not hesitate to contact me. Kind regards, City of Palm Desert Clerk's Office Some people who received this message don't often get email from gsanchez@palmdesert.gov. Learn why this is important CITY Of PRIM DESERT 73-510 PRED WARING DRIVE PALM DESERT, CALIFORNIA g2260-2578 TEL:760 346-o6ii info@cityofpalmdesert.org April 12, 2022 Mr. Frank Orlett Burrtec Waste & Recycling Services, LLC 41-575 Eclectic Street Palm Desert, California 92260 Dear Mr. Orlett: Subject: Contract No. C42860 —Amended Franchise Aareement for Collection of Solid Waste. Recvclables. and Oraanic Waste and Consideration of Proposed Increases to Solid Waste and Recvclina Service Rates At its regular meeting of March 10, 2022, the Palm Desert City Council considered the subject, request and took the following actions: 1) Waived further reading and adopted Resolution No. 2022-19, approving amended franchise agreement with Burrtec Waste and Recycling Services, LLC to collect solid waste, recyclables, and organic waste for a term of eleven (11) years, commencing April 1, 2022, and expiring March 31, 2033. 2) By Minute Motion, approved the adjusted maximum service rates outlined in exhibits 3A, 3B, and 3C of the amended franchise agreement. Enclosed for your records is a fully executed copy of the subject Amended Franchise Agreement. If you have questions or require additional information, please do not hesitate to contact us. Sincerely, AJM/mgs Enclosure (as noted) cc: Amy Lawrence, Special Programs Manager G:\C1tyC1rMG1ona SanchezNLETTERSW - Contracts\C42860 Award Letter.dou Z J evnnoa ammm ro AMENDED FRANCHISE AGREEMENT BETWEEN CITY OF PALM DESERT AND BURRTEC WASTE AND RECYCLING SERVICES, LLC FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES w fl-V March 10, 2022 w omn Contract No. C42860 momc A Dn O m City of Palm Desert Contract No. C42860 Franchise Agreement Table of Contents FRANCHISE AGREEMENT BETWEEN CITY OF PALM DESERT AND BURRTEC WASTE AND RECYCLING SERVICES, LLC FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES TABLE OF CONTENTS ARTICLE 1. DEFINITIONS...................................................................................................................4 1.1 AB 341................................................................................................................ 1.2 AB 827................................................................................................................. 1.3 AB 876................................................................................................................. 1.4 AB 939................................................................................................................ 1.5 AB 1594.............................................................................................................. 1.6 AB 1826.............................................................................................................. 1.7 Affiliate.............................................................................................................. 1.8 Agreement......................................................................................................... 1. 9 Alternative Daily Cover (ADC)...................................................................... 1.10 Alternative Intermediate Cover (AIC)...................................................... 1.11 Applicable Law............................................................................................ 1.12 Approved C&D Processing Facility .......................................................... 1.13 Approved Disposal Facility........................................................................ 1.14 Approved Facilities...................................................................................... 1.15 Approved Organic Waste Processing Facility ......................................... 1.16 Approved Source Separated Recyclable Materials Processing Facility 1.17 Approved Transfer Facility ........................................................................ 1.18 Back-Haul...................................................................................................... 1.19 Billings........................................................................................................... 1.20 Bin.................................................................................................................. 1.21 Blue Container.............................................................................................. 1.22 Bulky Items................................................................................................... 1.23 California Code of Regulations(CCR)...................................................... 1.24 CalRecycle..................................................................................................... 1.25 Can................................................................................................................. 1.26 Cart................................................................................................................. 1.27 City ................................................................................................................. 1.28 City Facility ................................................................................................... 4 4 4 4 5 5 5 5 6 6 6 6 6 6 6 7 7 7 7 7 7 7 8 8 8 8 City of Palm Desert Page i March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement Table of Contents 1.29 Collect/Collection..............................................................................................................................9 1.30 Commercial.........................................................................................................................................9 1.31 Commercial Edible Food Generators..............................................................................................9 1.32 Commercial Premises........................................................................................................................9 1.33 Company.............................................................................................................................................9 1.34 Company Compensation................................................................................................................10 1.35 Compost............................................................................................................................................10 1.36 Compostable Plastics.......................................................................................................................10 1.37 Construction and Demolition (C&D) Debris...............................................................................10 1.38 Container(s)......................................................................................................................................10 1.39 Customer...........................................................................................................................................10 1.40 Designated Waste.............................................................................................................................11 1.41 Discarded Materials.........................................................................................................................11 1.42 Disposal.............................................................................................................................................11 1.43 Disposal Cost....................................................................................................................................11 1.44 Disposal Site(s).................................................................................................................................12 1.45 Divert/Diversion.............................................................................................................................12 1.46 Diversion Site....................................................................................................................................12 1.47 Edible Food.......................................................................................................................................12 1.48 Electronic Waste or E-Waste...........................................................................................................12 1.49 Environmental Laws........................................................................................................................13 1.50 Excluded Waste................................................................................................................................13 1.51 Facility ...............................................................................................................................................13 1.52 Food Recovery..................................................................................................................................14 1.53 Food Recovery Organization..........................................................................................................14 1.54 Food Recovery Service....................................................................................................................14 1.55 Food Scraps.......................................................................................................................................14 1.56 Food -Soiled Paper............................................................................................................................14 1.57 Food Waste........................................................................................................................................15 1.58 Franchise...........................................................................................................................................15 1.59 Franchise Fee....................................................................................................................................15 1.60 Generator...........................................................................................................................................15 1.61 Gray Container.................................................................................................................................15 1.62 Gray Container Waste.....................................................................................................................15 1.63 Green Container...............................................................................................................................15 1.64 Gross Receipts..................................................................................................................................16 1.65 Hazardous Material.........................................................................................................................16 1.66 Hazardous Waste.............................................................................................................................17 1.67 Household Hazardous Waste („HHW")......................................................................................17 1.68 Incompatible Materials....................................................................................................................17 1.69 Inerts..................................................................................................................................................17 1.70 Large Event.......................................................................................................................................17 1.71 Large Venue......................................................................................................................................18 1.72 Master -Billed Accounts...................................................................................................................18 City of Palm Desert Page ii March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement Table of Contents 1.73 Mulch.................................................................................................................................................18 1.74 Multi -Family, Multi -Family Dwelling Unit or Multi -Family Premises...................................19 1.75 Non -Organic Recyclables................................................................................................................19 1.76 Organic Materials.............................................................................................................................19 1.77 Organic Waste..................................................................................................................................19 1.78 Owner................................................................................................................................................19 1.79 Person................................................................................................................................................20 1.80 Premises.............................................................................................................................................20 1.81 Process, Processed, or Processing..................................................................................................20 1.82 Prohibited Container Contaminants.............................................................................................20 1.83 Property Owner................................................................................................................................20 1.84 Proposition 218.................................................................................................................................20 1.85 Putrescible Waste.............................................................................................................................21 1.86 Rate Year...........................................................................................................................................21 1.87 Recycle/Recycling...........................................................................................................................21 1.88 Recycling Fee......................................................................:.............................................................21 1.89 Recyclable Materials or Recylables................................................................................................21 1.90 Refuse................................................................................................................................................22 1.91 Refuse Vehicle Impact Fee..............................................................................................................22 1.92 Renewable Natural Gas(RNG)......................................................................................................22 1.93 Residential.........................................................................................................................................22 1.94 Residential Premises.......................................................................................................................22 1.95 Residential Tax Roll Billing............................................................................................................22 1.96 Reuse..................................................................................................................................................23 1.97 Roll -off Box.......................................................................................................................................23 1.98 SB 1383...............................................................................................................................................23 1.99 SB 1383 Regulations.........................................................................................................................23 1.101 Self -Hauler or Self-Haul..................................................................................................................23 1.102 Sharps................................................................................................................................................23 1.103 Solid Waste.......................................................................................................................................23 1.104 Source Separated..............................................................................................................................24 1.105 Source Separated Organic Materials.............................................................................................25 1.106 Source Separated Recyclable Materials.........................................................................................25 1.107 State....................................................................................................................................................25 1.108 Term...................................................................................................................................................25 1.109 Tier One Commercial Edible Food Generators............................................................................25 1.110 Tier Two Commercial Edible Food Generators...........................................................................26 1.111 Transfer Facility ................................................................................................................................26 1.112 Transformation.................................................................................................................................26 1.113 Transportation, Transport, or Transporting.................................................................................27 1.114 Universal Waste...............................................................................................................................27 1.115 Working Day....................................................................................................................................27 1.116 Yard Waste........................................................................................................................................27 City of Palm Desert Page iii March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement Table of Contents ARTICLE 2. GRANT AND ACCEPTANCE OF FRANCHISE.....................................................28 2.1 Grant and Acceptance of Franchise...................................................................................................28 2.2 Exclusive Nature of Franchise............................................................................................................28 2.3 Effective Date........................................................................................................................................28 2.4 Term of Agreement..............................................................................................................................28 2.5 Conditions to Effectiveness of Agreement.......................................................................................29 2.6 Delegation of Authority......................................................................................................................30 2.7 Limitations on Scope of Franchise.....................................................................................................30 2.8 City's Right to Direct Changes............................................................................................................32 2.9 Ownership of Solid Waste...................................................................................................................33 2.10 Company Status...............................................................................................................................34 2.11 Company Authorization.................................................................................................................34 2.12 Annexations......................................................................................................................................34 2.13 Mandatory Service.................................................................................................................................34 2.14 Permits and Licenses.......................................................................................................................35 ARTICLE 3. FRANCHISE AND ADMINISTRATIVE FEE..........................................................36 3.1 Franchise, Recycling, and Administrative Fee ................................ 3.2 Business License.................................................................................. 3.3 Other Fees............................................................................................. ARTICLE 4. DIRECT SERVICES.......................................................................................................39 4.1 Collection Services - General..............................................................................................................39 4.2 Determination of Residential Collection Method............................................................................39 4.3 Automated Cart Collection Services..................................................................................................40 4.4 Manual Refuse Can Collection Services............................................................................................43 4.5 Other Residential Services..................................................................................................................44 4.6 Commercial Service.............................................................................................................................46 4.7 City Services and Other Requirements.............................................................................................51 4.8 Operations.............................................................................................................................................62 4.9 Transportation of Discarded Materials.............................................................................................75 4.10 Status of Disposal Site.....................................................................................................................78 4.11 Route Audit.......................................................................................................................................78 4.12 Service Exceptions; Hazardous Waste Notifications..................................................................80 4.13 Disaster Preparedness Plan............................................................................................................80 4.14 Dedicated Routes.............................................................................................................................81 ARTICLE 5.OTHER SERVICES........................................................................................................82 5.1 Services and Customer Billing...................................................................... 5.2 Customer Service............................................................................................ 5.3 Education and Public Awareness................................................................ 5.4 Discarded Materials Characterization and Capacity Planning Studies.. 5.5 Other SB 1383 Company Requirements...................................................... City of Palm Desert Page iv March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Table of Contents 5.6 Food Recovery Assistance..................................................................................................................99 5.7 Universal Enrollment Monitoring....................................................................................................100 ARTICLE 6. COMPANY COMPENSATION AND RATES.......................................................101 6.1 General.................................................................................................................................................101 6.2 Rates.....................................................................................................................................................101 6.3 Schedule of Future Adjustments......................................................................................................101 6.4 Method of Adjustments.....................................................................................................................101 6.5 Extraordinary Adjustments..............................................................................................................104 6.6 Supporting Information.....................................................................................................................104 6.7 Grants...................................................................................................................................................105 6.8 Annual Recycling Rebate......................................................................................................................105 6.9 New Program Residential Rate Phase-In...........................................................................................105 6.10 Residential Basic Service Organics One-time Adjustments...........................................................106 ARTICLE 7. REVIEW OF SERVICES AND PERFORMANCE..................................................107 7.1 Performance Hearing ..................................... 107 ARTICLE 8. RECORDS, REPORTS AND INFORMATION REQUIREMENTS ...................109 8.1 General.................................................................................................................................................109 8.2 Records.................................................................................................................................................109 8.3 Reports.................................................................................................................................................112 8.4 Adverse Information...................................................................................................:......................123 8.5 Right to Inspect Records....................................................................................................................124 ARTICLE 9. INDEMNIFICATION, INSURANCE AND BOND...............................................125 9.1 Indemnification...................................................................................................................................125 9.2 Hazardous Substances Indemnification..........................................................................................126 9.3 CalRecycle Indemnification and Guarantee...................................................................................127 9.4 Insurance.............................................................................................................................................127 9.5 Faithful Performance Bond...............................................................................................................132 9.6 Forfeiture of Performance Bond.......................................................................................................133 9.7 Performance Security Beyond Service Term..................................................................................133 ARTICLE 10. CITY'S RIGHT TO PERFORM SERVICE.............................................................134 10.1 General............................................................................................................................................134 10.2 Billing and Compensation to the City during the City's Possession......................................135 10.3 City's Right to Relinquish Possession.........................................................................................135 10.4 City's Possession Not A Taking...................................................................................................135 10.5 Duration of the City's Possession................................................................................................136 ARTICLE 11. DEFAULT, REMEDIES AND LIQUIDATED DAMAGES................................137 City of Palm Desert Page v March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Table of Contents 11.1 Events of Default............................................................................................................................137 11.2 Criminal Activity of Company....................................................................................................139 11.3 Right to Terminate Upon Default................................................................................................139 11.4 Liquidated Damages......................................................................................................................139 11.5 Excuse from Performance.............................................................................................................145 11.6 Arbitration.......................................................................................................................................145 11.7 Assurance of Performance............................................................................................................146 ARTICLE 12.OTHER AGREEMENTS OF THE PARTIES.........................................................147 12.1 Relationship of Parties...................................................................................................................147 12.2 Compliance with Law...................................................................................................................147 12.3 Governing Law...............................................................................................................................147 12.4 Jurisdiction......................................................................................................................................147 12.5 Assignment.....................................................................................................................................148 12.6 Affiliated Companies.....................................................................................................................150 12.7 Contracting or Subcontracting.....................................................................................................151 12.8 Binding on Assigns........................................................................................................................151 12.9 Transition to the Next Company.................................................................................................151 12.10 Parties in Interest............................................................................................................................151 12. 11 Waiver..............................................................................................................................................152 12.12 The Company's Investigation.......................................................................................................152 12.13 Condemnation................................................................................................................................152 12.14 Notice...............................................................................................................................................152 12. 15 Representatives of the Parties......................................................................................................153 12. 16 City Free to Negotiate with Third Parties..................................................................................153 12.17 Compliance with Municipal Code...............................................................................................153 12. 18 Privacy.............................................................................................................................................154 12.19 Cooperation Following Termination...........................................................................................154 12.20 Compliance with Immigration Laws..........................................................................................154 12.21 Proprietary Information, Public Records....................................................................................155 12.22 Guarantee of Company's Performance.......................................................................................155 12.23 Attorney's Fees...............................................................................................................................155 ARTICLE 13. MISCELLANEOUS AGREEMENTS......................................................................156 156 156 156 156 156 156 157 157 157 City of Palm Desert Page vi March 10, 2022 City of Palm Desert Contract No. C42860 Exhibits 1. City Facilities 2. Public Education and Outreach Plan 3. Initial Rates 4. Rate Adjustment Formula 5. Corporate Guarantee 6. Company's Faithful Performance Bond 7. Notary Certification Franchise Agreement List of Exhibits 8. Processing, Transfer, and Disposal Services and Facility Standards 9. Sample Recycling Coordinator Calendar of Milestones 10. Annual Recycling Rebate Formula 11.One-Time Residential Organic Materials Rate Adjustment Formula I City of Palm Desert Page vii March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 FRANCHISE AGREEMENT BETWEEN CITY OF PALM DESERT AND BURRTEC WASTE AND RECYCLING SERVICES, LLC FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES This Exclusive Franchise Agreement for Integrated Solid Waste Management Services for Single -Family, Multi -Family, and Commercial Generators (Agreement) is entered into this 10th day of March, 2022 by and between the City of Palm Desert, a political subdivision of the State of California (City), and Burrtec Waste and Recycling Services, LLC (Company), for the Collection and subsequent transfer, Transportation, Recycling, Processing, and/or Disposal of Discarded Materials and provision of other related services. City and Company may be referred to as a Party or collectively as the Parties. RECITALS WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 ("AB 939") (California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for Solid Waste handling within their jurisdictions to meet the goals and requirements of AB 939; and, WHEREAS, pursuant to California Public Resources Code Section 49300 and 49500-49500 and the applicable provisions of the City Charter, the City of Palm Desert has determined that the public health, safety, and well-being require that an exclusive Franchise be awarded to a qualified company for the Collection, Transportation, Recycling, Processing, and Disposal of Solid Waste and other services to meet the goals and requirements of AB 939; and, WHEREAS, on May 15, 2009, City and Company, entered into that certain Exclusive Franchise Agreement between City of Palm Desert and Burrtec Waste and Recycling Services for Integrated Solid Waste Services (Initial Agreement); and, WHEREAS, the Parties entered into that certain Amended Franchise Agreement dated as of May 15, 2015, for the purposes of integrated Solid Waste Management Services (the Amended Agreement); and WHEREAS, the Amended Agreement will expire on May 31, 2023; and, City of Palm Desert 1 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 WHEREAS, the Parties desire to further amend and restate the Amended Agreement in its entirety, together with all Amendments; and, WHEREAS, the City and the Company desire to enter into this Agreement to amend and supersede the Initial Agreement and Amended Agreement; and, WHEREAS, the Company agrees to and acknowledges that it shall properly Dispose of all Solid Waste Collected in the City pursuant to this Agreement; and, WHEREAS, City and Company are mindful of the provisions of the laws governing the safe Collection, Transport, Recycling, Processing and Disposal of Solid Waste, including AB 939, SB 1383, the Resource Conservation and Recovery Act RCRA"), and the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"). City and Company desire to leave no doubts as to their respective roles and to memorialize that by entering into this Agreement, City is not thereby becoming an "arranger' or a "Generator" as those terms are used in CERCLA, and that it is Company, not City, who is "arranging for" the Collection from residences in the City, Transport for Disposal, composting or other Processing, and Recycling of municipal Solid Waste which may contain Hazardous Material and further to confirm that as a material inducement to City entering into this Agreement, Company has agreed to fully indemnify City in connection with any claims, losses, liabilities, lawsuits or actions relating to the inadvertent or intentional Collection, Transportation and/or Disposal of Hazardous Materials that may occur in connection with Company's performance under this Agreement; and WHEREAS, the successful implementation of Solid Waste Handling in Residential, Commercial areas in the City will entail the expenditure of large sums of capital by the Company, for which the Company is entitled to be compensated. City intends that this Agreement will contribute to safeguarding public health by providing the most cost-effective, efficient, reliable, and environmentally appropriate Solid Waste services to its citizens; and, WHEREAS, the State of California has found and declared that the amount of Solid Waste generated in California, coupled with diminishing Disposal capacity and potential adverse environmental impacts from landfilling and the need to conserve natural resources, have created an urgent need for State and local agencies to enact and implement an aggressive integrated waste management program. The State has, through enactment of AB 939 and subsequent related legislation including, but not limited to: the Jobs and Recycling Act of 2011 (AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), SB 1016 (Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), and the Short -Lived Climate Pollutants Bill of 2016 (SB 1383), directed the responsible State agency, and all local agencies, to promote a reduction in landfill Disposal and to maximize the use of feasible City of Palm Desert 2 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 waste reduction, re -use, Recycling, and composting options in order. to reduce the amount of material that must be Disposed; and, WHEREAS, SB 1383 establishes regulatory requirements for jurisdictions, Generators, haulers, Solid Waste Facilities, and other entities to support achievement of State-wide Organic Waste Disposal reduction targets; and, WHEREAS, SB 1383 requires jurisdictions to implement Collection programs, meet Processing Facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement and fulfill other requirements; and, the City has chosen to delegate some of its responsibilities to Company, acting as the City's designee, through this Agreement; and, WHEREAS, Company has agreed, as part of this Agreement, to provide such services as are necessary or desirable to ensure City complies with the requirements of all Applicable Laws and regulations including specifically, without limitation, AB 939, AB 341, AB 1594, AB 1826, SB 1383, Public Resources Code Section 40000, et seq, as it may be amended from time to time, and such other laws and regulations of the State of California as may be enacted from time to time concerning Solid Waste, Organic Waste, Recyclable Materials, or the Collection, handling composting, Recycling or Disposal of such materials; and, NOW, THEREFORE, in consideration of the Premises above stated and the terms, conditions, covenants and agreements contained herein, the Parties do hereby agree as follows: City of Palm Desert 3 March 10, 2022 City of Palm Desert Contract No. C42860 ARTICLE 1. DEFINITIONS Franchise Agreement Whenever any term used in this Agreement has been defined by the provisions of Sections 8.16.010 and 8.17.010 of the Palm Desert City Code or by Division 30, Part 1, Chapter 2 of the California Public Resources Code, the definitions in the City Code or the Public Resources Code shall apply unless the term is otherwise defined in this Agreement, in which case this Agreement shall control. Except as provided in this Article 1, words beginning with lower case letters are being used with their common ordinary meanings, not as defined terms. Otherwise, the following capitalized words and terms shall have the following meanings: 1. 1 AB 341 AB 341" means the Assembly Bill approved by the Governor of the State of California on October 5, 2011, which amended Sections 41730, 41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections 40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded and replaced from time to time. 1.2 AB 827 AB 827" means the Assembly Bill approved by the Governor of the State of California on October 2, 2019, which amended Sections 42649.2, 42649.2, 42649.8, and 42649.81 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time. AB 876" means the Assembly Bill approved by the Governor of the State of California on October 8, 2015, which added Section 41821 to the Public Resources Code, relating to Solid Waste as amended, supplemented, superseded, and replaced from time to time. 1.4 AB 939 AB 939" means the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et seq.), as it may be amended from time to time. City of Palm Desert 4 March 10, 2022 City of Palm Desert Contract No. C42860 1.5 AB 1594 Franchise Agreement AB 1594" means the Assembly Bill approved by the Governor of the State of California on September 28, 2014, which amended Sections 40507 and 41781.3 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time. 1.6 AB 1826 AB 1826" means the Organic Waste Recycling Act of 2014 (Chapter 727, Statutes of 2014 modifying Division 30 of the California Public Resources Code), also commonly referred to as "AB 1826," as amended, supplemented, superseded, and replaced from time to time. 1.7 Affiliate Affiliate" means all businesses (including corporations, limited and general partnerships and sole proprietorships) which are directly or indirectly related to the Company by virtue of direct or indirect ownership interest or common management shall be deemed to be "Affiliated with" the Company and included within the term "Affiliates" as used herein. An Affiliate shall include a business in which the Company owns a direct or indirect ownership interest, a business which has a direct or indirect ownership interest in the Company and/or a business which is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in the Company. For purposes of determining whether an indirect ownership interest exists, the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the date of this Agreement, shall apply; provided, however, that (i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section 318(a)( 2)(C) and in Section 318(a)(3)(C) thereof; and (ii) Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be disregarded and percentage interests shall be determined on the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater. 1.8 Agreement Agreement" means this Franchise Agreement between the City and the Company for the Collection, Transportation, Recycling, Processing and Disposal of Solid Waste, and other services, including all exhibits and attachments, and any amendments thereto. City of Palm Desert 5 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 1.9 Alternative Daily Cover (ADC) Alternative Daily Cover" or "ADC' has the same meaning as in Section 20690 of Title 27 of the California Code of Regulations. 1.10 Alternative Intermediate Cover (AIC) Alternative Intermediate Cover" or "AIC' has the same meaning as in Section 20700 of Title 27 of the California Code of Regulations. 1.11 Applicable Law Applicable Law" means all Federal, State, County, and local laws, regulations, rules, orders, judgments, decrees, permits, approvals, or other requirement of any governmental agency having jurisdiction over the Collection, Transportation, Processing, and Disposal of Discarded Materials that are in force on the Effective Date and as may be enacted, issued or amended during the Term of this Agreement. 1.12 Approved C&D Processing Facility Approved C&D Processing Facility" means the Approved C&D Processing Facilities identified in Exhibit 8 that are C&D Processing Facilities and were Company selected and City approved. 1.13. Approved Disposal Facility Approved Disposal Facility" means the Approved Disposal Facilities identified in Exhibit 8, that are Disposal Facilities and were Company selected and City approved. 1.14 Approved Facilities Approved Facility(ies)" means any one of or any combination of the: Approved C&D Processing Facility; Approved Disposal Facility; Approved Organic Waste Processing Facility; Approved Source Separated Recyclable Materials Processing Facility; and, Approved Transfer Facility, each of which are defined in this Article and listed in Exhibit 8. 1.15 Approved Organic Waste Processing Facility Approved Organic Waste Processing Facility" means the Approved Organic Waste Processing Facilities identified in Exhibit 8, that are Organic Waste Processing Facilities and were Company selected and City approved. City of Palm Desert 6 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 1.16 Approved Source Separated Recyclable Materials Processing Facility Approved Source Separated Recyclable Materials Processing Facility" means the Approved Source Separated Recyclable Materials Processing Facilities identified in Exhibit 8, that are Source Separated Recyclable Materials Processing Facilities and were Company selected and City approved. 1.17 Approved Transfer Facility Approved Transfer Facility" means the Approved Transfer Facilities identified in Exhibit 8, that are Transfer Facilities and were Company selected and City approved. 1.18 Back -Haul Back -Haul" means generating and Transporting C&D Materials, Recyclable Materials and/or Organic Waste to a destination owned and operated by the Generator using the Generator's own full-time employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A). 1.19 Billings Billings" means any and all statements of charges for services rendered, howsoever made, described or designated by the City or the Company, or made by others for the City or the Company, to Persons responsible for arranging for Solid Waste removal. 1.20 Bin Bin" means a rigid Container with hinged lids and wheels with a capacity of at least one 1) cubic yard and less than ten (10) cubic yards. 1.21 Blue Container Blue Container" has the same meaning as in 14 CCR Section 18982(a)(5) and shall be used for the purpose of storage and Collection of Source Separated Recyclable Materials. 1.22 Bulky Items Bulky Items" means Solid Waste that cannot and/or would not typically be accommodated within a Cart including specifically: furniture (including chairs, sofas, mattresses,); appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances and other similar items, commonly City of Palm Desert 7 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 known as "white goods"); electronic equipment (including stereos, televisions, computers and monitors, including laptops, VCRs, microwaves and other similar items commonly known as "brown goods" and "E-Waste"); Universal Waste (vacuum cleaners, phones, cell phones, etc.), and clothing. Bulky Items do not include car bodies, Construction and Demolition Waste. Other items not specifically included or excluded above will be Collected provided that they are not more than eight feet in length, four feet in width, or more than 150 pounds. In the event a question ever arises as to whether a specific item or category of items meets the definition of Bulky Items, City shall be responsible to determine whether said definition shall apply, which determination shall be final and binding on the Parties. Exclusion from the Bulky Items are materials from renovation/additions to homes that are considered Construction and Demolition Material. 1.23 California Code of Regulations (CCR) California Code of Regulations" or "CCR" means the State of California Code of Regulations. CCR references in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g., "14 CCR" refers to Title 14 of CCR). 1.24 CalRecycle CalRecycle" means the State of California's Department of Resources Recycling and Recovery, its predecessor or successor. 1.25 Can Can" means a Solid Waste receptacle provided by the Customer and serviced by manual Collection. 1.26 Cart Cart" means a polyethylene wheeled Container with a hinged lid and wheels serviced by an automated or semi -automated side -loading truck with a capacity of no less than 30 and no greater than 101 gallons. 1.27 City City" means the City of Palm Desert, a charter city, and all the territory lying within the municipal boundaries of the City as presently existing or as such boundaries may be modified during the Term of this Agreement. City of Palm Desert 8 March 10, 2022 City of Palm Desert Contract No. C42860 1.28 City Facility Franchise Agreement City Facility means any building, park or other site owned, leased, or used regularly and significantly by City for public purposes and not operated as a City enterprise. 1.29 Collect/Collection Collect" or "Collection" means to take physical possession, Transport, and remove Solid Waste within and from the City. 1.30 Commercial Commercial" refers to services performed at or for Commercial Premises. 1.31 Commercial Edible Food Generators Commercial Edible Food Generators" includes Tier One Commercial Edible Food Generators and Tier Two Commercial Edible Food Generators, or as otherwise defined in 14 CCR Section 18982(a)( 7). For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators. 1.32 Commercial Premises Commercial Premises" means Premises upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding Residential Premises upon which business activities are conducted when such activities are permitted under applicable zoning regulations and are not the primary use of the property. Notwithstanding any provision to the contrary herein, in the Palm Desert Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses (as defined in the Palm Desert Municipal Code) are occurring shall be deemed to be Commercial Premises: restaurants; rooming houses; hotels; motels; offices; manufacturing, processing; or assembling shops or plants; hospitals; clinics; nursing homes; convalescent centers;dormitories; barracks; and card rooms. 1.33 Company Company" means Burrtec Waste and Recycling Services, LLC, a limited liability company organized and operating under the laws of the State of California and its officers, directors, employees, agents, companies, and subcontractors. City of Palm Desert 9 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 1.34 Company Compensation Company Compensation" means the revenue received by the Company from Billings in return for providing services in accordance with this Agreement and any amendments to this Agreement. 1.35 Compost Compost" has the same meaning as in 14 CCR Section 17896.2(a)(4), which stated, as of the Effective Date of this Agreement, that "Compost" means the product resulting from the controlled biological decomposition of organic Solid Wastes that are Source Separated from the municipal Solid Waste stream, or which are separated at a centralized Facility. 1.36 Compostable Plastics Compostable Plastics" or "Compostable Plastic" means plastic materials that meet the ASTM D6400 standard for compostability. 1.37 Construction and Demolition (C&D) Debris Construction and Demolition Debris," C&D Waste," or "C&D Material," means any combination of Inert building materials and Solid Waste resulting from construction, remodeling, repair, cleanup, or demolition operations as defined in 22 CCR Section 66261.3 gt seq. This term includes, but is not limited to, asphalt, concrete, Portland cement concrete, brick, lumber, gypsum wallboard, cardboard, and other associated packaging; roofing material, ceramic tile, carpeting, plastic pipe and steel. The material may be commingled with rock, soil, tree stumps; and other vegetative matter resulting from land clearing and landscaping for construction or land development projects. 1.38 Container(s) Containers" means any and all types of Solid Waste receptacles, including Cans, Carts, Bins, Roll -off Boxes, and receptacles provided by Customers. 1.39 Customer Customer" means the Person having the care and control of any Premises in the City who receives Solid Waste Collection service from the Company pursuant to the terms of this Agreement. City of Palm Desert 10 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 1.40 Designated Waste Designated Waste" means either of the following: a) Hazardous Waste that has been granted a variance from Hazardous Waste management requirements pursuant to Section 25143 of the Health and Safety Code. b) Nonhazardous waste that consists of, or contains, pollutants that, under ambient environmental conditions at a waste management unit, could be released in concentrations exceeding applicable water quality objectives or that could reasonably be expected to affect beneficial uses of the waters of the state as contained in the appropriate state water quality control plan. 1.41 Discarded Materials Discarded Materials" are a form of Solid Waste, and shall be regulated as such. For purposes of this Agreement, material is deemed to have been discarded, without regard to whether it is destined for Recycling or Disposal, and whether or not is has been separated from other Solid Wastes, in all cases where a fee or other net compensation, in any form or amount, is directly or indirectly solicited from, or, levied, charged, or otherwise imposed on, or paid by, the Generator or Customer in exchange for handling services. As used herein, handling services include, without limitation, the Collection, removal, Transportation, delivery, and Processing and/or Disposal of the material. Discarded Materials do not include Edible Food that is recovered for human consumption and is not discarded. For the purposes of this Agreement, Discarded Materials include Source Separated Recyclable Materials, Source Separated Organic Materials, Food Waste, Refuse, Bulky Items, and C&D once the materials have been placed in Containers for Collection or, if not placed in Containers for Collection, placed properly for Collection. 1.42 Disposal Disposal" or any variation thereof means the ultimate disposition of Solid Waste Collected by the Company at a landfill in full regulatory compliance. 1.43 Disposal Cost Disposal Cost" means the portion of the fee charged to the Customer that represents the cost of Disposal. City of Palm Desert 11 March 10, 2022 City of Palm Desert Contract No. C42860 1.44 Disposal Site(s) Franchise Agreement Disposal Site(s)" mean the Solid Waste handling Facility or Facilities utilized for the ultimate Disposal of Solid Waste Collected by the Company. 1.45 Divert/Diversion Divert" or "Diversion' (or any variation thereof) means to prevent Discarded Materials from Disposal at landfill or Transformation Facilities, (including Facilities using incineration, pyrolysis, distillation, gasification, or biological conversion methods) through source reduction, Reuse, Recycling, composting, anaerobic digestion or other method of Processing, subsequent to the provisions of AB 939. Diversion is a broad concept that is to be inclusive of material handling and Processing changes that may occur over the Term including, but not limited to, changes in standard industry practice or implementation of innovative (but not necessarily fully proven) techniques or technology that reduce Disposal risk, decrease costs and/or are for other reasons deemed desirable by the City. 1.46 Diversion Site Diversion Site" means a Facility duly licensed and permitted to receive and Process Source -Separated or Discarded Materials for Reuse or for further Processing so as to prevent the materials from being landfilled at a Disposal Site. 1.47 Edible Food Edible Food" means food intended for human consumption. For the purposes of this Agreement, Edible Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement requires or authorizes the recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this Agreement. 1.48 Electronic Waste or E-Waste Electronic Waste" or "E-Waste" means electronic equipment and includes, but is not limited to, stereos, televisions, computers and computer monitors, VCRs, cellular phones, fax machines, household copiers, computer printers, other items with electric plugs that are banned from landfill Disposal, and other similar items commonly known as "brown goods." City of Palm Desert 12 March 10, 2022 City of Palm Desert Contract No. C42860 1.49 Environmental Laws Franchise Agreement Environmental Laws" means all federal and State statutes, county, local and the City ordinances concerning public health, safety and the environment including, by way of example and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC §9601 et seq.; the Resource Conservation and Recovery Act, 42 USC §6902 et seq.; the Federal Clean Water Act, 33 USC §1251 et seq.; the Toxic Substances Control Act,15 USC §1601 et seq.; the Occupational Safety and Health Act, 29 USC §651 e"se .; the California Hazardous Waste Control Act, California Health and Safety Code §25100 et seq.; the California Toxic Substances Control Act, California Health and Safety Code §25300 gt seq.; the Porter -Cologne Water Quality Control Act, California Water Code §13000 et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5 et seq.; as currently in force or as hereafter amended, and all rules and regulations promulgated thereunder. 1.50 Excluded Waste Excluded Waste" means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated Waste, volatile, corrosive, Medical Waste, infectious, regulated radioactive waste, and toxic substances or material that Designated Facility operator(s) reasonably believe(s) would, as a result of or upon acceptance, transfer, Processing, or Disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be Disposed of in Class III landfills or accepted at the Facility by permit conditions, waste that in Company's reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Company or City to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Residential or Multi -Family Solid Waste after implementation of programs for the safe Collection, Processing, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. Excluded Waste does not include used motor oil and filters, household batteries, Universal Wastes, and/or latex paint when such materials are defined as allowable materials for Collection through this Agreement and the Generator or Customer has properly placed the materials for Collection pursuant to instructions provided by City or Company as set forth in this Agreement. 1.51 Facility Facility" means any plant or site, owned or leased and maintained, operated or used by the Company for purposes of performing under this Agreement. City of Palm Desert 13 March 10, 2022 City of Palm Desert Contract No. C42860 1.52 Food Recovery Franchise Agreement Food Recovery" means actions to Collect and distribute Edible Food for human consumption which otherwise would be Disposed, or as otherwise defined in 14 CCR Section 18982(a)(24). 1.53 Food Recovery Organization Food Recovery Organization" means an entity that primarily engages in the Collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities, including, but not limited to: A. A food bank as defined in Section 113783 of the Health and Safety Code; B. A nonprofit charitable organization; and, C. A nonprofit charitable temporary food Facility as defined in Section 113842 of the Health and Safety Code. If the definition in 14 CCR Section 18982(a)(25) for Food Recovery Organization differs from this definition, the definition in 14 CCR Section 18982(a)(25) shall apply to this Agreement. 1.54 Food Recovery Service Food Recovery Service" means a Person or entity that Collects and Transports Edible Food from a Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery; or as otherwise defined in 14 CCR Section 18982(a)(26). 1.55 Food Scraps Food Scraps" means all food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps. 1.56 Food -Soiled Paper Food -Soiled Paper" means compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons. City of Palm Desert 14 March 10, 2022 City of Palm Desert Contract No. C42860 1.57 Food Waste Franchise Agreement Food Waste" means Source Separated Food Scraps, Food -Soiled Paper, and Compostable Plastics. Food Waste is a subset of Organic Materials. 1.58 Franchise Franchise" means the exclusive right granted by the City to provide Solid Waste services within the City. 1.59 Franchise Fee Franchise Fee" means the fee paid by the Company to the City, or retained by the City from service fees remitted to the City as set forth in Section 3.1. 1. 1.60 Generator Generator" means any Person whose act first causes Discarded Materials to become subject to regulation under federal, State, or local regulations. 1.61 Gray Container Gray Container" has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used for the purpose of storage and Collection of Gray Container Waste or Refuse, subset of Solid Waste. For the purposes of this Agreement, Gray Containers may be gray or black, as specified in 14 CCR Section 18982(a)(28). 1.62 Gray Container Waste Gray Container Waste" means Solid Waste that is Collected in a Gray Container that is part of a three -Container Discarded Materials Collection service that prohibits the placement of Prohibited Container Contaminants in the Gray Container as specified in 14 CCR Sections 18984.1(a) and (b), or as otherwise defined in 14 CCR Section 17402(a)(6.6). For the purposes of this Agreement, Gray Container Waste includes carpet and textiles. 1.63 Green Container Green Container" has the same meaning as in 14 CCR Section 18982(a)(29) and shall be used for the purpose of storage and Collection of Source Separated Green Container Organic Waste. City of Palm Desert 15 March 10, 2022 City of Palm Desert Contract No. C42860 1.64 Gross Receipts Franchise Agreement Gross Receipts" means any and all revenues, receipts, or compensation in any form received by the Company or its subsidiaries, parent companies, or other Affiliates of the Company, for the Collection and Transportation of Solid Waste pursuant to this Agreement, in accordance with Generally Accepted Accounting Principles (GAAP), including, but not limited to, monthly Customer fees for Collection of Solid Waste, without subtracting Franchise Fees, Vehicle Impact Fee, Recycling Fees, Tax Roll Billing Fee, or any other cost of doing business. Sales revenue from the sale of Recyclable Material is excluded from Gross Receipts for purposes of calculating Franchise Fees and Recycling Fees. 1.65 Hazardous Material Hazardous Material " is defined to include any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government. The term "Hazardous Material" includes, without limitation, any material or substance which is: (i) petroleum or oil or gas or any direct or derivate product or byproduct thereof; (ii) defined as a "Hazardous Waste," extremely Hazardous Waste" or "restricted Hazardous Waste" under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140, of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (iii) defined as a hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter -Presley -Tanner Hazardous Substance Account Act); iv) defined as a "Hazardous Material;' "hazardous substance," or "Hazardous Waste" under Sections 25501(j) and (k) and 25501.1 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); v) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); vi) "used oil" as defined under Section 25250.1 of the California Health and Safety Code; vii) asbestos; (viii) listed under Captor 11 of Division 4.5 of Title 22 of the California Code of Regulations, or defined as hazardous or extremely hazardous pursuant to Chapter 10 of Division 4.5 of Title 22 of the California Code of Regulations; (ix) defined as waste or a hazardous substance pursuant to the Porter -Cologne Act, Section 13050 of the California Water Code; (x) designated as a "toxic pollutant' pursuant to the Federal Water Pollution Control Act, 33 U.S.C. Section 1317; (xi) defined as " Hazardous Waste" pursuant to the Federal Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. § 6903); (xii) defined as a "hazardous substance" pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 6901); (xiii) defined as "Hazardous Material" pursuant to the Hazardous Materials Transportation Act 29 U.S.C. Section 5101, et seq.; or (xiv) defined as such or regulated by any Superfund" or "Superlien" law, or any other federal, State or local law, statute, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing City of Palm Desert 16 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 liability or standards of conduct concerning Hazardous Materials and/or oil wells and/or underground storage tanks and/or pipelines, as now, or at any time hereafter, in effect. 1.66 Hazardous Waste Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State of California in Health and Safety Code §25110.02, §25115, and §25117 or in the future amendments to or recodifications of such statutes or identified and listed as Hazardous Waste by the US Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seg.), all future amendments thereto, and all rules and regulations promulgated thereunder. 1.67 Household Hazardous Waste ("HHW") Household Hazardous Waste" means material used in residences that may threaten human health or the environment when improperly discarded and usually has one or more of the following characteristics; flammable, toxic, corrosive, and/or reactive. 1.68 Incompatible Materials Incompatible Material" or "Incompatibles' mean(s) human -made Inert material, including, but not limited to, glass, metal, plastic, and also includes Organic Waste that the receiving end -user, Facility, operation, property, or activity is not designed, permitted, or authorized to perform Organic Waste recovery activities as defined in 14 CCR Section 18983.1(b), or as otherwise defined by 14 CCR Section 17402(a)(7.5). 1.69 Inerts Inerts" means materials such as concrete, soil, asphalt, and ceramics. 1.70 Large Event Large Event" means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event. If the definition in 14 CCR Section 18982(a)(38) differs from this definition, the definition in 14 CCR Section 18982(a)(38) shall apply to this Agreement. City of Palm Desert 17 March 10, 2022 City of Palm Desert Contract No. C42860 1.71 Large Venue Franchise Agreement Large Venue" means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of 14 CCR, Division 7, Chapter 12 and this Agreement, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of 14 CCR, Division 7 Chapter 12 and this Agreement, a site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. If the definition in 14 CCR Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section 18982(a)(39) shall apply to this Agreement. 1.72 Master -Billed Accounts Master -Billed Accounts" or "Master -Billed" means those accounts billed for Collection services from more than one dwelling unit. 1.73 Mulch Mulch" means a layer of material applied on top of soil, and, for the purposes of the Agreement, Mulch shall conform with the following conditions, or conditions as otherwise specified in 14 CCR Section 18993.1(f)(4): i. Meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land applications specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3). ii. Was produced at one or more of the following types of Facilities: a) A compostable material handling operation or Facility as defined in 14 CCR Section 17852(a)(12), that is permitted or authorized under Division 7 of Title 14 of the CCR, other than a chipping and grinding operation or Facility as defined in 14 CCR Section 17852(a)(10); b) A transfer/Processing Facility or transfer/Processing operation as defined in 14 CCR Section 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR, Division 7, Chapter 12; or, c) A Solid Waste landfill as defined in PRC Section 40195.1 that is permitted under 27 CCR, Division 2. City of Palm Desert 18 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement 1.74 Multi -Family, Multi -Family Dwelling Unit or Multi -Family Premises Multi -Family" means of, from, or pertaining to Residential Premises with five (5) or more dwelling units. Multi -Family Premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses. References to "Multi -Family Dwelling Unit" refer to an individual Residential unit of the Multi - Family Premises. 1.75 Non -Organic Recyclables Non -Organic Recyclables" means non-putrescible and non -hazardous Recyclable wastes including, but not limited to, bottles, cans, metals, plastics, and glass, or as otherwise defined in 14 CCR Section 18982(a)(43). Non -Organic Recyclables are a subset of Source Separated Recyclable Materials. 1.76 Organic Materials Organic Materials" means Yard Waste and Food Waste, individually or collectively. No Discarded Material shall be considered to be Organic Materials, however, unless it is separated from Recyclable Materials and Refuse. Organic Materials are a subset of Organic Waste. 1.77 Organic Waste Organics" or "Organic Waste" means Solid Wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, Food Waste, Food Scraps, Yard Waste, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids; digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively. 1.78 Owner Owner" means the Person holding the legal title to the real property constituting the Premises to which Solid Waste Collection service is to be provided under this Agreement or the Person holding legal title to the Disposal Site. City of Palm Desert 19 March 10, 2022 City of Palm Desert Contract No. C42860 1.79 Person Franchise Agreement Person" means any individual, firm, association, organization, partnership, corporation, business trust, joint venture, the United States, the State of California, the County of Riverside, town, C, or special purpose district. 1.80 Premises Premises" means any land, or building in the City where Solid Waste is generated or accumulated. 1.81 Process, Processed, or Processing Processing" means the controlled separation, recovery, volume reduction, conversion, or Recycling of Solid Waste including, but not limited to, organized, manual, automated, or mechanical sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or includes the use of conveyor belts, sorting lines, or volume reduction equipment, or as otherwise defined in 14 CCR Section 17402(a)(20). 1.82 Prohibited Container Contaminants Prohibited Container Contaminants" means the following: (i) Discarded Materials placed in the Recyclable Materials Container that are not identified as acceptable Source Separated Recyclable Materials for Collection in the Recyclables Container; (ii) Discarded Materials placed in the Organics Container that are not identified as acceptable Source Separated Organic Materials for Collection in the Organics Container; (iii) Discarded Materials placed in the Refuse Container that are acceptable Source Separated Recyclable Materials and/or Source Separated Organic Materials to be placed in the Recyclables Container and/or Organic Materials Container; and (iv) Excluded Waste placed in any Container. 1.83 Property Owner Property Owner" means the Owner of real property, or as otherwise defined in 14 CCR Section 18982(a)(57). 1.84 Proposition 218 Proposition 218" means Articles XIIIC and XIIID of the California Constitution. City of Palm Desert 20 March 10, 2022 City of Palm Desert Contract No. C42860 1.85 Putrescible Waste Franchise Agreement Putrescible Waste" means wastes that are capable of being decomposed by micro- organisms with sufficient rapidity as to cause nuisances because of odors, gases, or other offensive conditions, and includes materials such as, but not limited to Food Waste, Food Scraps, offal, and dead animals; or as otherwise defined in 14 CCR Section 17402(a)(21). 1.86 Rate Year Rate Year" means the twelve month period from July 1 to June 30, for each year of the Agreement. 1.87 Recycle/Recycling Recycle" or "Recycling" means the process of Collecting, sorting, cleansing, treating, and reconfiguring materials for the purpose of returning them to the economic mainstream in the form of raw material for new, Reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. Recycling includes processes deemed to constitute a reduction of landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or Transformation as defined in Public Resources Code Section 40201. 1.88 Recycling Fee Recycling Fee" means the fee paid by the Company to the City to fund the City's costs of Solid Waste management. 1.89 Recyclable Materials or Recyclables Recyclable Materials" or "Recyclables" means those Discarded Materials that: the Generators set out in Recyclables Containers for Collection for the purpose of Recycling by the Company and that exclude Excluded Waste. No Discarded Materials shall be considered Recyclable Materials unless such material is separated from Organic Materials, and Refuse. Recyclable Materials shall include, but not be limited to: newspaper (including inserts, coupons, and store advertisements); mixed paper including office paper, computer paper, magazines, junk mail, catalogs, brown paper bags, brown paper, paperboard, paper egg cartons, telephone books, colored paper, construction paper, envelopes, legal pad backings, shoe boxes, gabletop beverage containers, cereal, and other similar food boxes yet excluding paper tissues, paper towels, paper with plastic coating, paper contaminated with food, wax paper, foil -lined paper and cartons, Tyvex non -tearing paper envelopes); chipboard; corrugated Cardboard; glass containers of any color (including brown, clear, and green glass bottles and jars); City of Palm Desert 21 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 aluminum (including beverage containers and small pieces of scrap metal); steel, tin, or bi-metal cans; mixed plastics such as plastic containers (no. one (1) to seven (7)), except expanded Polystyrene (EPS); bottles including containers made of HDPE, LDPE, or PET. 1.90 Refuse Refuse" means a form of Solid Waste, and shall be regulated as such. Refuse refers specifically to Gray Container Waste. 1.91 Refuse Vehicle Impact Fee Refuse Vehicle Impact Fee" means the fee paid to the City for costs of maintaining and repairing roads attributed to Company's Collection Vehicles. 1.92 Renewable Natural Gas (RNG) Renewable Natural Gas" or "RNG" means gas derived from Organic Waste that has been Diverted from a landfill and Processed at an in -vessel digestion Facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62). 1.93 Residential Residential" refers to services performed at or for Residential Premises. 1.94 Residential Premises Residential Premises" means property used for Residential purposes, including both single-family and apartment dwelling units, irrespective of whether such dwelling units are rental units or are Owner -occupied. 1.95 Residential Tax Roll Billing Residential Tax Roll Billing" means the billing of municipal Solid Waste services to non - Master -Billed single family residences and apartment complexes with four units or less that receive Residential service) on the Property Owner's tax roll. City of Palm Desert 22 March 10, 2022 City of Palm Desert Contract No. C42860 1.96 Reuse Franchise Agreement Reuse' or any variation thereof, means the use, in the same, or similar, form as it was produced, of a material which might otherwise be discarded, or as otherwise defined in 14 CCR Section 17402.5(b)(2). 1.97 Roll -off Box Roll -off Box' means an open -top metal Container serviced by a roll -off truck with a capacity of ten (10) cubic yards or larger. 1.98 SB 1383 SB 1383" means the Short -Lived Climate Pollutants Act of 2016 (an act to add Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and to add Chapter 13.1 [commencing with Section 426521 to Part 3 of Division 30 of the Public Resources Code, relating to methane emissions), also commonly referred to as "SB 1383," as amended, supplemented, superseded, and replaced from time to time. 1.99 SB 1383 Regulations SB 1383 Regulations" means those regulations promulgated by CalRecycle to implement SB 1383 as they may be amended, supplemented, superseded, and replaced from time to time. 1.101 Self -Hauler or Self -Haul Self -Hauler" or "Self -Haul' means a Person who hauls Discarded Materials, recovered material, or any other material, to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66). Self -Hauler also includes a Person who Back -Hauls waste, as defined in 14 CCR Section 18982(a)(66)(A). 1.102 Sharps Sharps" means hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications. 1.103 Solid Waste Solid Waste" means all discarded putrescible and non-putrescible solid, semisolid, and liquid wastes, including Refuse, Construction and Demolition Debris, Bulky Items, Recyclable Materials, and Organic Waste, or any combination thereof which are City of Palm Desert 23 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 permitted to be Disposed of in a Class III landfill, and which are included in the definition of "Non -hazardous Solid Waste" set forth in the California Code of Regulations. "Solid Waste" means all Solid Wastes generated by Residential, Commercial, and industrial sources, and all Solid Waste generated at construction and demolition sites, and at treatment works for water and waste water, which are Collected and Transported under the authorization of the City or are Self -Hauled by residents or contractors. Solid Waste does not include agricultural crop residues, mining waste and fuel extraction waste, forestry wastes, ash from industrial boilers, furnaces and incinerators or Hazardous Material, any waste which is not permitted to be Disposed of at a Class III landfill and which fall within the definition of "Nonhazardous Solid Waste" set forth in Title 23, Chapter 15, Section 2523(a) of the California Code of Regulations as amended or designated Class II wastes. Materials shall be deemed "Solid Waste" consistent with the meaning of California Public Resources Code Section 40191, and for purposes of this Agreement shall be regulated as such, whether or not they may be potentially Recyclable Material, in either of the following instances: (a) the material is mixed or commingled with other types of Solid Waste such that more than 65% of the material consists of Solid Waste rather than Recyclable Materials, or (b) the payment of a fee, charge, or other consideration, in any form or amount, is directly or indirectly solicited or received from the Generator by any Person or combination of Persons in exchange for Collection, removal, Transportation, storage, Processing, handling, consulting, Container rental or Disposal services ("fee for service" Recycling), whether or not arranged by or through a subcontractor, broker, agent, consultant, or Affiliate of the provider of such service, pursuant to PRC, Division 30. 1.104 Source Separated Source Separated" means materials, including commingled or mixed Recyclable Materials and commingled or mixed Organic Materials, that have been separated or kept separate from other Solid Waste and Refuse, at the point of generation, for the purpose of additional sorting or Processing of those materials for Recycling or Reuse in order to return them to the economic mainstream in the form of raw material for new, Reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the Agreement, Source Separated shall include separation of materials by the Generator, Property Owner, Property Owner's employee, property manager, or property manager's employee into different Containers for the purpose of Collection such that Source Separated materials are separated from Refuse for the purposes of Collection and Processing. City of Palm Desert 24 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 1.105 Source Separated Organic Materials Source Separated Organic Materials" means the Source Separated Organic Waste that are specifically intended for Collection in the Organics Containers by Company under this Agreement including, but not limited to, Food Waste and Yard Waste, and excluding carpets, non-compostable paper, and textiles. The accepted types of Source Separated Organic Materials and process for modifying the accepted types of Source Separated Organic Materials are specified in Article 4. Source Separated Organic Materials are a subset of Organic Waste. 1.106 Source Separated Recyclable Materials Source Separated Recyclable Materials" means Source Separated Recyclables Materials that are specifically intended for Collection from the Recyclables Containers by the Company under the terms of this Agreement. The accepted types of Source Separated Recyclable Materials are specified in Section 4.3. 2. 1.107 State State" means the State of California. 1.108 Term Term" means the Term of this Agreement, including extension periods if granted, as provided for in Article 2. 1.109 Tier One Commercial Edible Food Generators Tier One Commercial Edible Food Generator" means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982: A. Supermarket. B. Grocery Store with a total facility size equal to or greater than 10,000 square feet. , C. Food Service Provider. D. Food Distributor. E. Wholesale Food Vendor. City of Palm Desert 25 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this Agreement. 1.110 Tier Two Commercial Edible Food Generators Tier Two Commercial Edible Food Generator" means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982: A. Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet. B. Hotel with an on -site food facility and 200 or more rooms. C. Health facility with an on -site food facility and 100 or more beds. D. Large Venue. E. Large Event. F. A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet. G. A local education agency with an on -site food facility. If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) shall apply to this Agreement. 1.111 Transfer Facility Transfer Facility" means that Solid Waste handling Facility and Facilities used by Company to receive Discarded Materials, temporarily store, and to transfer the Discarded Materials directly from smaller to larger vehicles for Transport to a Disposal Site. 1.112 Transformation Transformation" means incineration, pyrolysis, distillation, gasification, or biological conversion other than composting. "Transformation" does not include composting. City of Palm Desert 26 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 1.113 Transportation, Transport, or Transporting Transportation," "Transport," or "Transporting" means the act of conveying Collected materials from one location to another. 1.114 Universal Waste Universal Waste" means a category of Hazardous Wastes that includes batteries rechargeable and single use, except automobile batteries), fluorescent lamps and tubes, thermostats, electronic devices (televisions, computer monitors, computers, printers, video cassette recorders, cell phones, telephones, and radios), electrical switches (from chest freezers, pre-1972 clothes washers, sump pumps, electric space heaters, clothes irons, silent light switches, automobile hood and trunk lights, and ABC brakes), pilot lights sensors (found in gas appliances such as stoves, ovens, clothes dryers, water heaters, furnaces, and space heaters), mercury gauges (barometers, manometers, blood pressure, and vacuum gauges), mercury added novelties (musical greeting cards, pre- 1997 athletic shoes with flashing lights, mercury maze games), mercury thermometers, non -empty aerosol cans containing Hazardous Materials. 1.115 Working Day Working Day" means each calendar day, excluding Saturdays, Sundays, and holidays. 1.116 Yard Waste Yard Waste" means leaves, grass clippings, brush, branches, and other forms of Organic Materials generated from landscapes or gardens, which have been Source Separated from other Solid Waste. Yard Waste is a subset of Organic Materials and excludes Hazardous Materials. City of Palm Desert 27 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 ARTICLE 2. GRANT AND ACCEPTANCE OF FRANCHISE 2. 1 Grant and Acceptance of Franchise Subject to the terms and conditions of this Agreement, the City hereby grants to the Company a Franchise to Collect, transfer, Transport, Recycle, Process, and Dispose of Solid Waste (including Source Separated Recyclable Materials and Source Separated Organic Materials) accumulating in the City that is required to be accumulated and offered for Collection to the Company in accordance with this Agreement. The Company hereby accepts the Franchise on the terms and conditions set forth in this Agreement. 2.2 Exclusive Nature of Franchise During the Term of this Agreement, except as otherwise provided in Section 2.7 below, or as may otherwise be provided by federal or State law, the rights granted to the Company under this Agreement shall be exclusive to the Company. The City will not let any Contract to, or enter into any agreement with, any other Person for the performance of the services herein required to be performed by the Company. The City shall adopt such ordinances or other regulations as it deems to be necessary or desirable to protect the exclusive rights granted herein. The City shall reasonably cooperate with the Company in its efforts to enforce the exclusivity hereof. City shall have the right, but not the obligation, to enforce the exclusivity hereof. Should the City wish to take administrative, law enforcement, or other legal action against any Person that infringes on the Company's exclusive rights, the Company shall reimburse the City for its reasonable administrative, law enforcement, or other legal costs related to any such action. Nothing herein shall preclude Company from taking such legal action against third parties as it deems appropriate to protect the exclusive nature of its Franchise. 2.3 Effective Date The effective date of this Agreement shall be April 1, 2022. 2.4 Term of Agreement The Term of this Agreement shall be eleven (11) years, commencing at midnight April 1, 2022, and expiring at midnight March 31, 2033. City of Palm Desert 28 March 10, 2022 City of Palm Desert Contract No. C42860 2.4.1 City Option to Extend Term Franchise Agreement City shall have the option to extend the Term of this Agreement upon expiration of the initial Term under Section 2.4 up to three (3) years, in three (3), twelve (12)-month increments. The City may, upon ninety -day (90-day) advance written notice to the Company prior to the expiration of the initial Term of this Agreement under Section 2.4, exercise the first extension option, for twelve (12) months. If City provides this extension notice, the Agreement will automatically renew for twelve (12) months. The City may, upon ninety -day (90-day) advance written notice to the Company prior to the expiration of this first extension stated above, exercise the second extension option, for twelve (12) additional months. If City provides this second extension notice, the Agreement will automatically renew for twelve (12) additional months. The City may, upon ninety -day 90-day) advance written notice to the Company prior to the expiration of this second extension stated above, exercise the third extension option, for twelve (12) additional months. If City provides this third extension notice, the Agreement will automatically renew for twelve (12) additional months. 2.5 Conditions to Effectiveness of Agreement The obligation of the City to permit this Agreement to become effective and to perform its undertakings provided for in this Agreement is subject to the satisfaction of each and all of the conditions set out below, each of which may be waived in whole or in part by the City. a) Accuracy of Representations. Representations and warranties made by the Company throughout this Agreement are accurate, true, and correct on and as of the effective date of this Agreement. b) Absence of Litigation. There is no litigation pending in any court challenging the award of this Franchise to the Company or the execution of this Agreement or seeking to restrain or enjoin its performance. c) Furnishing of Insurance and Bonds. The Company has furnished evidence of the insurance and bonds required by Article 9. d) Legal Challenge. The City Council's Resolution approving this Agreement shall become effective pursuant to California law. If a referendum petition or legal challenge to the award of this Agreement is submitted or filed, Contractor shall defend, indemnify, and hold City harmless for all costs incurred to defend such challenge. Contractor shall further reimburse City for any costs incurred in any election subject to this Section. In the event that the City's residents submit a valid referendum petition challenging award of this Agreement, City may elect to conduct an election on such award. If so, Company shall reimburse City for all City of Palm Desert 29 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 costs associated with conducting such election within thirty (30) days of receipt of an invoice from City. 2.6 Delegation of Authority The administration of this Agreement by the City shall be under the supervision and direction of the City Manager or their designee, and the actions specified in this Agreement, unless otherwise stated, shall be taken by Director of Development Services or the Director's designee. 2.7 Limitations on Scope of Franchise The Franchise granted to the Company shall be exclusive except as to the categories of Solid Waste listed in this Section. The granting of this Franchise shall not preclude the categories of Solid Waste listed below from being delivered to and Collected and Transported by others provided that nothing in this Agreement is intended to or shall be construed to excuse any Person from obtaining any authorization from the City which is otherwise required by law: a) The sale or donation of Bulky Items, C&D Materials, Source Separated Recyclable Materials and/or Source Separated Organic Materials by the Generator to any Person or entity other than Company; provided, however, to the extent permitted by law, if the Generator is required to pay monetary or non -monetary consideration for the Collection, storage, Transportation, transfer, or Processing of such material, or any advisory or consulting services therewith the fact that the Generator receives a reduction or discount in price (or in other terms of the consideration the Generator is required to pay) shall not be considered a sale or donation; b) Solid Waste, including C&D Materials, Recyclable Materials and Organic Materials, which is removed from any Premises by a Self -Hauler or Back -Hauler, which is the Generator or Customer, and which is Transported personally by the Generator or Customer of such Premises (or by their full-time employees) to a Processing or Disposal Facility; c) Recyclable Materials and Organic Materials which are Source Separated at any Premises by the Generator or Customer and donated to youth, civic, or charitable organizations) Containers delivered for Recycling under the California Beverage Container Recycling Litter Reduction Act, Section 14500, et. seq., California Public Resources Code; d) Property Owners may Self -Haul their own Solid Waste, Recyclable Materials, Organic Materials, and C&D Materials when undertaking special projects or have City of Palm Desert 30 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 excess materials; however, Property Owners must maintain regular Solid Waste Collection services through City's Franchised hauler (ie., Company); e) Yard Waste removed from Premises by a gardening, landscaping, or tree trimming Company utilizing its own equipment as an incidental part of a total service offered by the Company rather than as a hauling service; f) Construction and Demolition Debris that is incidentally removed by a duly licensed construction or demolition company or by the City, where the licensed company utilizes its own equipment and employees; g) Animal waste and remains from slaughterhouse or butcher shops for use as tallow; h) By-products of sewage treatment, including sludge, sludge ash, grit, and screenings; i) Hazardous Waste and radioactive waste, regardless of its source; j) The periodic or emergency Collection, removal, Disposal or Diversion of Solid Waste (including Recyclable Materials and Organic Materials) by the City through the City officers or employees in the normal course of their employment; k) Pet food (animal feed intended for consumption by pets) Collected from Industrial Customers at no cost to the Customer or for which Customer sells or is otherwise compensated by other Persons in a manner resulting in a net payment to the Customer, and which is Diverted from Disposal by delivery to hog farms or otherwise used as animal feed; Edible food recovered for human consumption; m) The Collection, transfer, and transport of clean dirt; Containers delivered for Recycling under the California Beverage Container Recycling Litter Reduction Act, Section 14500, et. seq. California Public Resources Code; n) The Collection, transfer, transport, Recycling, Processing, and Disposal of Solid Waste by City through City officers or employees in the normal course of their City employment; and, o) Solid Waste Handling Services for governmental agencies other than City, which may have Facilities in City, but over which City has no jurisdiction in connection with the regulation of Solid Waste. The Company acknowledges and agrees that the City may permit other Persons besides the Company to Collect any or all types of the Solid Waste listed in this Section 2.7, City of Palm Desert 31 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 including Recyclable and Organic Materials, without seeking or obtaining approval of the Company under this Agreement. This grant to the Company of an exclusive Franchise, right, and privilege to Collect, Transport, or Process and Dispose of Solid Waste shall be interpreted to be consistent with State and federal laws, now and during the Term of the Franchise, and the scope of this exclusive Franchise shall be limited by current and developing State and federal laws with regard to Solid Waste handling, exclusive Franchise, control of Recyclable Materials, Solid Waste flow control, and related doctrines. In the event that future interpretations of current law, enactment or developing legal trends limit the ability of the City to lawfully provide for the scope of Franchise services as specifically set forth herein, the Company agrees that the scope of the Franchise will be limited to those services and materials which may be lawfully provided for under this Agreement, and that the City shall not be responsible for any lost profits claimed by the Company to arise out of further limitations of the scope of the Agreement set forth herein. In such an event, it shall be the responsibility of the Company to minimize the financial impact to other services being provided as much as possible. 2.8 City's Right to Direct Changes 2.8.1 General The City may direct the Company to perform additional services (including new Diversion programs, etc.) or modify the manner in which it performs existing services or bills for services. Pilot programs and innovative services which may entail new Collection methods, different kinds of services and/or new requirements for Customers, and alternative rate structures are included among the kinds of changes which the City may direct. The Company shall be entitled to an adjustment in its Company Compensation based on its reasonable costs for providing such additional or modified services, as agreed between the City and the Company and subject to any procedural requirements to adjust the rates. If the Company and the City cannot agree on terms and conditions of such additional or expanded services within ninety (90) days from the date when the City first requests the Company to perform such services, the Company acknowledges and agrees that the City may permit Persons other than the Company to provide such services. 2.8.2 New Diversion Programs The Company shall present, within 30 days of a request to do so by the City, a proposal to provide additional or expanded Diversion services. The proposal shall contain a complete description of the following: City of Palm Desert 32 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Collection methodology to be employed (equipment, manpower, etc.). Equipment to be utilized (vehicle number, types, capacity, age, etc.). Labor requirements (number of employees by classification). Type of materials to be Collected and Containers to be utilized. Provision for program publicity/education/marketing. Projection of the annual financial results of the program's operations in an operating statement format including documentation, of the key assumptions underlying the projections and the support for those assumptions. 2. 8.3 City's Right to Acquire Services The Company acknowledges and agrees that the City may permit other Persons besides the Company to provide additional Solid Waste services not otherwise contemplated under this Agreement. If pursuant to Section 2.8.2, the Company and the City cannot agree on terms and conditions of such additional or expanded Diversion services within ninety (90) days from the date when the City first requests a proposal from the Company to perform such services, the Company acknowledges and agrees that the City may permit Persons other than the Company to provide such services. In the event that City exercises its right to permit third party Persons to provide such services, and if such a decision reduces or eliminates Company's costs to provide Collection services as contemplated under Article 4 of this Agreement, Company agrees to reduce its Billings proportionately. 2.9 Ownership of Solid Waste Once Solid Waste is placed in Containers and properly placed at the designated Collection location, ownership and the right to possession shall transfer directly from the Customer to the Company by operation of this Agreement. Subject to the Company's objective to meet the source reduction and Recycling goals which apply to the City and the City's right to direct the Company to Process and Dispose of Solid Waste at a particular licensed Solid Waste Facility or to Dispose of Solid Waste at a particular licensed Disposal Site, if and only if the City exercises such right by providing specific written direction to the Company, the Company is hereby granted the right to retain; Recycle, Process, Dispose of, and otherwise use such Solid Waste, or any part thereof, in any lawful fashion or for any lawful purpose desired by the Company. Subject to the provisions of this Agreement, the Company shall have the right to retain any benefit resulting from its right to retain, Recycle, Process, Dispose of, or Reuse the Solid Waste, Organic Materials, and Recyclable Materials which it Collects. Solid Waste, Organic Waste, and Recyclable Materials, or any part thereof, which is Disposed of at any of the Approved Facilities(whether landfill, transformation Facility, transfer Station or City of Palm Desert 33 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Processing Facility) shall become the property of the Owner or operator of the Approved Facility once deposited there by the Company. The City may obtain ownership or possession of Solid Waste placed for Collection upon written notice of its intent to do so, however, nothing in this Agreement shall be construed as giving rise to any inference that the City has such ownership or possession unless such written notice has been given to the Company. 2.10 Company Status The Company represents and warrants that it is duly organized, validly existing and in good standing under Applicable Laws. It is qualified to transact business in the State of California and has the power to provide services as required by this Agreement. 2.11 Company Authorization The Company has the authority to enter into and perform its obligations under this Agreement. The Board of Directors or partners of the Company (or the shareholders, if necessary) have taken all actions required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement. The Persons signing this Agreement on behalf of the Company have authority to do so. Company shall authorize one employee for the City as a single point of contact for issues arising under this Agreement. City may accept that this employee's actions are taken on behalf of and with the full approval of the Company. 2.12 Annexations This Agreement extends to any territory annexed to the City during the Term of this Agreement except to the extent that Collection by the Company within that annexed territory would violate the provisions of Public Resources Code Section 49520. In such event, this Agreement shall become effective as to such area at the earliest possible date permitted by law, and the City agrees that it shall cooperate with the Company to fulfill any requirement necessary for the Company to serve the annexed area consistent with this Section. 2.13 Mandatory Service It is understood and agreed that Refuse Collection service from Company is a mandatory service of all Premises within the City of Palm Desert. City may assist Company in enforcing the mandatory service requirement of this Agreement in its sole discretion. City of Palm Desert 34 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 If at a future time, the City updates its Municipal Code to include mandatory Collection service of Recyclable Materials and Organic Materials, the City may similarly enforce such mandatory service requirements under a new City ordinance in its sole discretion. 2.14 Permits and Licenses Company shall acquire and maintain all necessary permits and licenses for the Collecting, Transporting, Processing, and storing of Solid Waste, Organic Materials, and Recyclables, disposing of Solid Waste, and the Processing of Recyclable Materials and Organic Materials. Company shall carry a business license from the City of Palm Desert, meeting all license requirements. Failure to maintain all required licenses and permits shall be deemed a material breach of contract for which City may terminate this Agreement as provided in Section 11.1. City of Palm Desert 35 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 ARTICLE 3. FRANCHISE AND ADMINISTRATIVE FEE 3.1 Franchise, Recycling, and Administrative Fee 3.1.1 Franchise Fee Amount In consideration of the exclusive Franchise granted pursuant to this Agreement, the Company shall pay to the City a Franchise Fee equal to four percent (4.0%) of the Company's Gross Receipts collected under this Agreement. The Company shall remit the Franchise Fee payment to the City according to Section 3.1.5 below. Company and City agree the Franchise Fee is a negotiated amount that is reasonably related to the value of the rights granted to Company under this Agreement. The payment of the Franchise Fee is an obligation of Company. 3.1.2 Recycling Fee Amount The Company shall pay to the City a Recycling Fee of two percent (2.0%) of the Company's Gross Receipts collected under this Agreement. The Company shall remit to the City this Recycling Fee according to Section 3.1.5 below. An amount equal to the Recycling Fee as negotiated shall be added to the rates charged to Customers. The Recycling Fee may be adjusted by the City, and in such case rates charged to Customers shall be adjusted up or down by a corresponding amount. Any such adjustment shall be considered in adjustments to the Company rates as described in Sections 6.4.2 and 6.4.3. 3.1.3 Refuse Vehicle Impacts The Company shall pay to the City a Refuse Vehicle Impact Fee of four and one tenth percent (4.1%) of the Company's Gross Receipts collected under this Agreement for the costs of maintaining and repairing roads attributed to Solid Waste Collection Vehicles. The Company shall remit to the City this fee according to Section 3.1.5 below. An amount equal to the Refuse Vehicle Impact Fee as negotiated shall be added to the rates charged to Customers. The Refuse Vehicle Impact Fee may be adjusted by the City, and in such case rates charged to Customers shall be adjusted up or down by a corresponding amount. Any such adjustment shall be considered in adjustments to the Company rates as described in Sections 6.4.2 and 6.4.3. 3.1.4 Tax Roll Billing Company shall pay to the City a fee of $1.06 per tax roll billing account Customer, per month adjusted automatically at the beginning of each Rate Year by a percentage equal to the annual percentage increase, if any, in the January Garbage and Trash Collection index (GTCI) (CUUROOOOSEHG02) in U.S. city average, all urban consumers, not City of Palm Desert 36 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 seasonally adjusted. If there is no increase in the GTCI or if the GTCI decreases, the Tax Roll Billing amount shall remain unchanged from the previous Rate Year. The Company shall remit to the City this fee according to Section 5.1.2. 3.1.5 Time and Method of Payment Company shall remit the payment of Franchise Fee, Recycling Fee, and other fees as may apply on or before the thirtieth (30th) day following the end of each quarter, during the Term of this Agreement as provided in Sections 3.1.1, 3.1.2 and 3.1.3. If the Franchise Fee, the Recycling Fee, and/or other fees are not paid on or before the thirtieth (301h) day following the end of the quarter, the Company shall pay to the City a service charge, and not as interest, in an amount equal to ten percent (10%) of the amount owing for that quarter. The Company shall pay an additional ten percent (10%) service charge on any' unpaid balance for each additional thirty (30) day period the Franchise Fee, Recycling Fee, and/or other fees remains unpaid. Late payment service charges shall not be included in any revenue requirement. The Company agrees that the service charges contemplated by this Section 3.1.5 reasonably reflect the cost to the City to process any delinquency calculations and notices, and to monitor the Company's services, all in an effort to collect the delinquent Franchise Fees, Recycling Fees, and/or other fees which, together with all other remedies afforded City under this Agreement (including any award of attorney's fees and costs), and in accordance with Applicable Laws, are intended to compensate City in any collection efforts in the event of Company's default in the payment of Franchise Fees and/or other fees. Company shall continue to remit Franchisee Fees and/or other fees to the City after the Term of this Agreement expires so long as the Company continues to collect receipts from Customers that were billed for services during the Agreement Term. 3.1.6 Documentation of Fee Payments Along with fee payments, Company shall submit documentation of the prior quarter's Gross Receipts, and tonnage Collected and Disposed, by line of service (Residential, Commercial, Roll -off), identifying the Disposal Cost and Recyclables Processing fee components, by line of service (Residential, Commercial, Roll -off). This documentation is due by the 30th day following the end of each quarter and must be complete and accurate to be considered received by the City. 3.2 Business License The Company and any subcontractors shall annually obtain a City of Palm Desert Business License. No contracts for services provided in the City shall be awarded to any vendor until such business license has been obtained, and all fees paid therefore, by the vendor and the subcontractors. City of Palm Desert 37 March 10, 2022 City of Palm Desert Contract No. C42860 3. 3 Other Fees Franchise Agreement The City shall reserve the right to set other fees or further adjust the Franchise Fee, Recycling Fee, Tax Roll Billing and Refuse Vehicle Impact Fee, as it deems reasonably necessary. The amount, time and method of payment and adjustment process will be set similar to Section 3.1.5 above. Subject to meeting the procedural requirements for a rate adjustment, such fees or adjustments shall be reflected in the rates that Company is allowed to charge and collect from Customers in accordance with Article 6. City of Palm Desert 38 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 ARTICLE 4. DIRECT SERVICES 4.1 Collection Services - General The work to be done by the Company pursuant to this Agreement shall include, but not be limited to, the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services required. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve the Company of the duty to furnish all others, as may be required, whether enumerated elsewhere in the Agreement or not. The work to be done by the Company pursuant to this Agreement shall be accomplished in a thorough and professional manner so that the residents and businesses within the City are provided reliable, courteous, and high -quality Collection services at all times. The enumeration of, and specification of requirements for, particular aspects of service quality shall not relieve Company of the duty of accomplishing all other aspects in the manner provided in this Section, whether such other aspects are enumerated elsewhere in the Agreement or not. All Collection systems shall comply with CalRecycle requirements under SB 1383. To comply with SB 1383 (pursuant to 14 CCR Section 18984.1), Company shall require Generators to place all Organic Materials in the Organics Containers and all paper products and printing and writing paper (as defined in Section 4.3.2) in the Recycling Containers for Collection by Company, and Company shall prohibit placement of such materials in the Refuse Containers. 4.2 Determination of Residential Collection Method All individually -serviced Residential Customers shall receive automated Collection service using Carts provided by Company, or Bin service, unless City approves manual service on a case -by -case basis. City shall make final determination as to the form of Collection service a Customer shall receive: Cart, Bin, or other. 4.2.1 Homeowner Association Customers in Gated Communities Homeowner associations in gated communities shall have automated services according to Section 4.3, unless City approves manual or other service on a case -by -case basis. 4.2.2 Individually -Serviced Dwelling Units Individually -serviced Dwelling Unit Customers shall receive automated Cart service per Section 4.3 once per week City of Palm Desert 39 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 4. 2.3 Multi -Family Apartment Complex Customers Multi -Family apartment complex Customers have the option of receiving Bin service or automated Cart services. For these Customers, Company shall provide Bin service in accordance with Commercial service requirements in Section 4.6 and Cart service in accordance with Cart Collection service requirements in Section 4.3. Company shall work with Property Owners/managers and City to tailor a Recyclable Materials and Organic Materials Collection program to meet the needs of each property and to comply with SB 1383 requirements. Company shall provide Recyclable Materials Collection service to all Multi -Family apartment complex Customers at the rates in the approved rate schedule. 4.2.4 Marrakesh Country Club The Marrakesh Country Club Master -Billed service area receives automated curbside Refuse Collection service two (2) times per week at the rate in the approved rate schedule. Recycling and Organic Materials Collection service is provided one (1) time per week for the Marrakesh County Club service area. 4.3 Automated Cart Collection Services The following services shall be provided in accordance with who shall receive such services under Section 4.2. However, no Customer may receive additional Refuse Carts at the additional Cart rate unless the Customer is already paying for Cart service for every dwelling unit. 4.3.1 Automated Curbside Refuse Services 4.3.1.1 Refuse Cart Sizes Company will supply each Residential Customer that participates in the automated Collection program with one 95-gallon, 65-gallon, or 35-gallon Cart, with an option to obtain additional Refuse Containers at City -approved rates. If more than one Refuse Cart is provided to a Customer, the larger Cart will be billed at the full service rate and the smaller Cart at the additional Refuse Cart rate. Company shall provide curbside Refuse Collection services to each Customer, not less than once per week. Company shall Transport all Refuse to the Approved transfer Facility or Approved Disposal Facility for Disposal. All Carts used for Collection of Refuse shall comply with the Container standards, colors, and labeling requirements specified in Section 4.8.3. 4.3.1.2 Cart Exchanee City of Palm Desert 40 March 10, 2022 City of Palm Desert Contract No. C42860 Individuallv-billed Customers Franchise Agreement Customers will be allowed to change Cart sizes (e.g., from a 95-gallon Refuse Cart to a 65-gallon or from a 35-gallon Refuse Cart to a 65-gallon Refuse Cart) and Company shall exchange the Carts at no charge. Company shall adjust the Customer's rate after a Cart exchange to reflect the City -approved rate for the different Cart size. If an individually - billed Customer that is charged via the tax roll requests a Cart size exchange, Company will either issue a check to the Customer if a reimbursement is required or send a separate invoice if additional payments are due within thirty (30) days of the requested exchange. Master -Billed Customers For Master -Billed Customers that provide Refuse Carts to each Residential unit within the Master -Billed community, individual Residential units within a Master -Billed community may be allowed to change Cart sizes (e.g., from a 95-gallon Refuse Cart to a 65-gallon or from a 35-gallon Refuse Cart to a 65-gallon Refuse Cart) and Company shall exchange the Carts at no charge. However, if the entire Master -Billed community intends to exchange Refuse Cart sizes, Master -Billed Customers may exchange Refuse Cart sizes no more than once per year, at a cost of $6.00 per Refuse Cart. Master -Billed Customers must initially negotiate the same size Refuse Cart for all residents when implementing the automated Collection system. 4.3.2 Automated Curbside Recyclables Collection Company shall issue each automated Customer a 95-gallon, 65-gallon, or 35-gallon Recycling Cart at no additional charge, depending on the Customer's preference. Company will provide additional Recycling Carts to Customers who regularly Recycle more than will fit into their existing Recycling Cart(s) for the fee in the approved rate schedule. Carts used for Collection of Recyclable Materials shall comply with the Container standards, colors, and labeling requirements specified in Section 4.8.3. Company shall Collect and remove all Recyclable Materials placed in Recycling Carts at the curbside on the same day as Refuse Collection. Recyclable Material Collection from automated Carts within the City shall be at least once each week and, at a minimum, include, but not be limited to, the Collection of: Paper products — Paper products include, but are not limited to, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, and tissue; or as otherwise defined in 14 CCR Section 18982(a)(51); Printing and writing papers — Printing and writing papers include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined City of Palm Desert 41 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 in 14 CCR Section 18982(a)(54); Empty aerosol cans; Glass — all colors, California Redemption Value and non -redemption value; Aluminum — cans, foil, and trays; Bi-metal, tin — cans, steel cans; and, Plastics/resins of all grades, Nos. 1 through 7. Recyclable Materials listed above are to be commingled by Customers in Customers' Recycling Carts. Residential Recyclable Materials Collection shall be provided by Company on the same day of the week as Refuse Collection service. Company shall Transport all Source Separated Recyclable Materials Collected to the Approved Source Separated Recyclable Materials Processing Facility for Processing. 4.3.3 Automated Curbside Organic Materials Collection Company shall provide weekly automated curbside Collection of Organic Materials to automated Customers on the same day as Refuse Collection at no additional charge. Company shall issue to each Customer one (1) or more Organic Materials Carts based on the size of the Customers Refuse Cart. Company shall make available additional 95, 65, or 35-gallon Carts for Customers for an additional charge as shown in Exhibit 3A. The Organic Materials Cart rate for all Carts is the same for any size Cart. Carts used for Collection of Organic Materials shall comply with the Container standards, colors, and labeling requirements specified in Section 4.8.3. Company shall Collect and remove all Organic Materials placed in Recycling Carts at the curbside on the same day as Refuse Collection. Company shall also Collect an unlimited amount of tied bundles of Organic Materials from Customers who subscribe to automated Organic Materials service. Company shall Transport all Source Separated Organic Materials Collected to the Approved Organic Waste Processing Facility for Processing. 4.3.4 Automated Cart Walk-in Service Company shall offer walk-in Collection services to all automated Cart Customers and shall charge Customers for this service at the City -approved rate. Service will include retrieving Refuse, Recyclable Materials, and Organic Materials Carts from and returning Carts to the backyard, garage, or other enclosure of such Customers. The walk-in service rate for able-bodied Customers choosing to pay for such service will include the walk-in of one (1) Refuse Cart, one (1) Recycling Cart, and one (1) Organic Materials Cart. Company shall charge Customer for walk-in service for additional Refuse, Recycling, or Organic Materials Carts at an additional City -approved walk-in rate for individual Carts. Disabled Persons, identified as those meeting the DMV requirement for Nl-Permanent disabled parking placard, shall receive such service for no additional charge. City of Palm Desert 42 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 4.3.5 Residential Food Waste Program Company will implement a program to Collect and Divert Residential Food Waste, co - Collected with Yard Waste, by July 1, 2022. The Company shall be entitled to a rate adjustment as provided in Section 6.9 effective July 1, 2022 for implementation of the Food Waste program. The rate adjustment shall only apply to the standard service rates for Residential Cart service included in Exhibit 3, and shall not apply to Additional Cart Rates or any other rates included in Exhibit 3. 4.3.5.1 Residential Kitchen Pails Upon rollout of the Residential Food Waste program described in Section 4.3.5, Company shall provide to all Residential and Multi -Family Dwelling Units kitchen pails designed to contain Food Waste prior to placement in the Customer's Organic Materials Cart and a minimum of two (2) kitchen pail liners at no additional charge. Company shall also subsequently provide new Customers with kitchen pails and a minimum of two (2) kitchen pail liners for no additional charge upon opening a new account. Company shall obtain and review the list of property transfer records from the County of Riverside to provide new Residential Customers kitchen pails. If a Customer requests an additional pail or requests a replacement pail, Company will provide the pail at the rate in the approved rate schedule. Kitchen pail specifications shall be approved by the City prior to Company ordering and distributing the pails. Educational material regarding proper use of the kitchen pail shall be provided to Customers with delivery of pails. 4.3.6 Master Billed Accounts - Organic Materials Communal Collection Company will evaluate master billed Customer account locations on a case -by -case basis and recommend to City whether to implement a communal Organic Materials Collection program. Once a Customer location is assessed by the Company, the Customer rate shall be determined by summing the applicable Container rates in the City approved rate schedule for the proposed level of service. The City reserves the right to approve or not approve Company recommendation to allow a Customer to implement a communal Organic Materials program based on City review of information provided by Company and Customer. 4.4 Manual Refuse Can Collection Services The following services shall be provided only until such Customers have been transitioned to automated, once per week Cart Collection service. Customers receiving manual Refuse Collection service shall receive separate automated Recyclables and Organic Materials Collection from Company by July 1, 2022 for compliance with SB 1383. If CalRecycle requires the manual Refuse Collection Containers transition to automated City of Palm Desert 43 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Refuse Carts, Company will provide automated Refuse Containers to all manual Customers. 4.4.1 Manual Curbside Refuse Can Collection Company shall manually Collect Refuse delivered for Collection at the curbside in Customer -provided Cans weighing no more than sixty (60) pounds, not less than once per week and only until such Customers have been transitioned to automated Refuse Cart Collection. 4.4.2 Manual In -Ground Refuse Can Collection For an additional charge per dwelling unit, Company will Collect Refuse from in -ground Cans from all Customers with in -ground Cans installed and only until such Customers have been transitioned to automated Refuse Cart Collection. In -ground Can Collection requires Company to manually lift each Can from special silos below ground level, and return the Can to the silo and close its lid. 4.5 Other Residential Services 4.5.1 Annual Neighborhood Cleanup Event The Company may hold, on behalf of the City, a Neighborhood Cleanup Event once annually. Company shall Collect and Recycle, Process, or Dispose of all Bulky Items, including Electronic Waste, and other Universal Wastes, placed curbside at all Residential Properties, both Residential and Multi -Family on a pre-set Collection day. This event would take place once annually in the Spring. Date shall be approved in advance by the City. 4.5.2 On -Call Bulky Item Collection The Company shall provide Bulky Item pickup service to all Residential Customers including single-family, Multi -Family, and gated communities). Homeowner association Customers and single-family dwelling unit Customers shall be entitled to unlimited pickups, with a maximum of four (4) items per pickup, for no additional charge. Multi -Family Customers are entitled to the equivalent of one Bulky Item pickup, with a maximum of four (4) items per pickup, per calendar year for each dwelling unit in the building, at no additional charge; either Owner, manager or individual dwelling units may request service. Multi -Family Customer Bulky Item pickups are a total count for the entire Multi -Family complex. Multi -Family complexes may allocate the Bulky Item pickups as needed among individual tenants. Customers will provide the Company with forty-eight (48) hours notice for a Bulky Item Collection and the Bulky Items shall be City of Palm Desert 44 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Collected by Company on the Customer's regular Refuse Collection day. Company shall charge Customers at City -approved rates for any item over four (4) items in one pick-up. All complexes with four (4) or fewer units with a shared Refuse Collection system shall still be serviced by Company for unlimited pickups of four (4) items per unit at no charge. Company shall Transport all Bulky Items to an Approved Facility for Recycling, Processing, or Disposal. If any Organic Materials are Collected, Company shall Collect the Organic Materials for Processing at the Approved Organic Waste Processing Facility. 4.5.2.1 Bulkv Item Diversion Bulky Items Collected by Company in accordance with Section 4.5.2, or otherwise Collected under this Agreement, shall be Processed in accordance with this Agreement and SB 1383 Regulations, and may not be Disposed of until the following hierarchy of Diversion efforts has been followed by Company: 1) Reuse as is 2) Disassemble for Reuse or Recycling 3) Transport Bulky Items and reusable items to the appropriate Approved Facility for Reuse or Processing 4) Transport Organic Waste, such as Yard Waste, to the Approved Organic Waste Processing Facility for Processing 5) Transport Source Separated Recyclable Materials, such as paper products, to the Approved Source Separated Recyclable Materials Processing Facility for Processing 6) Disposal 4.5.3 Holiday Tree Collection Program Company shall operate an annual holiday tree Collection program. The program shall include curbside Collection and a drop off site at the Company's operations yard located in the City of Palm Desert, and shall target all Residential Premises in the City (both single and Multi -Family). The Company shall reasonably cooperate with the City in the scheduling and operation of the holiday tree Collection program to provide curbside Collection and operation of the drop-off site for three (3) weeks beginning December 26. Company shall provide this curbside holiday tree Collection service and drop-off program at no additional charge to Residential Premises on Customer's regular Refuse Collection service day. Company shall Process all holiday trees that are properly set out for Collection as Organic Waste in accordance with Exhibit 8. City of Palm Desert 45 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 4.5.4 Used Motor Oil and Filter Recycling The Company will be required to Collect and Recycle all used motor oil and oil filters placed for Collection by Generator or Customer from all Residential Premises. Residents without curbside Recyclables Collection, such as apartments and condominiums, shall be provided Collection service by Company upon request. In such case, Company shall Collect the used motor oil and oil filters within seven (7) Business Days of receipt of Customer's request for service. Collection from all other Residential Customers shall be provided by Company on the same day as Recyclables Materials Collection. Company shall provide monthly reports, in a format approved by the City, of the filters and gallons of oil Collected pursuant to Section 8.3.2. 4.5.5 Plastic Bag Drop -Off Program Company shall provide and promote to Residential Customers a Company designated plastic bag -in -bag drop-off location program, whereby Customers are instructed to Collect all plastic grocery bags and deliver to the designated location(s) for Recycling to support the City's plastic bag ban. Drop-off location to be located at the Company's Recycling center located within the City or at an alternative site if approved by City staff. 4.5.6 Extra Residential Refuse Customers that produce or set out more Refuse than their current level of service can accommodate may have up to three (3) bags of Refuse placed outside of their Refuse Cart Collected four (4) times per year. Customers must request the service by contacting Company at least twenty-four (24) hours in advance of their normal Collection day. 4.5.7 Resident Tire Recycling Residents will be allowed to drop-off up to four (4) tires at the Edom Hill Transfer Station on a quarterly basis at no charge, the quarterly tire acceptance dates will be provided to residents through Company's annual public education program. 4.6 Commercial Service 4.6.1 Refuse Bin Service Company shall offer Collection of Refuse from Bins to all Commercial Customers. Company shall Collect and remove all Refuse that is placed in Bins from all Customers receiving Bin service at least once every week, or more frequently up to six (6) days per week if requested by Customer or required to handle the Solid Waste stream of the Premises where the Bins are located. Special consideration shall be given when determining the location of the Bin storage and Collection area to ensure that the flow of City of Palm Desert 46 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 traffic is not impeded. No additional enclosure handling fee may be charged for servicing enclosed Bins. Company is responsible for removing locks to access Bin enclosures prior to Collection and replacing locks on Bin enclosures after Collection, and shall provide this service at no additional charge to Customers. Company shall not be responsible for the cost of constructing Bin enclosures. Company shall Collect and remove all Refuse that is placed into Customer -provided in - ground Bins in the same manner at no additional charge (beyond the regular Refuse Collection rate for the Bin size and Collection frequency). In -ground Bins are Bins set into a special silo below ground level. 4. 6.2 Cart Service Company shall provide Cart service to low volume Commercial Customers requesting such service. The Company shall provide Commercial Customers with Carts for Refuse, Recyclable Materials, and Organic Materials Collection. These services will be provided by Company at the rates in the approved rate schedule. Use of a Cart for Commercial service does not entitle Commercial Customers to other Residential services such as Bulky Item and holiday tree Collection. 4.6. 3 Temporary Bins and Roll -off Box Service The Company shall offer temporary Bin service and Roll -off Box and Compactor services for the Collection of Refuse, Organic Materials, or Construction and Demolition Debris. A. Condition of Equipment: Temporary Bins and Roll -off Boxes provided by Company shall be free of graffiti and in good repair, and must be clearly marked and identifiable as belonging to the Company. B. Location: Special consideration shall be given by Company when determining the delivery Collection location for temporary Bin and Roll -off Box service to Customers to ensure that the flow of traffic is not impeded. The designated Collection location, if disputed by the Customer or the Company, shall be determined by the City. Additionally, if in the City's opinion the location of an existing Collection location is inappropriate for aesthetic or safety reasons, the City may require the Customer and/or Company to relocate the temporary Bins or Roll -off Boxes to an alternate Collection location. C. Arranging: The Company shall deliver and Collect temporary Bins and Roll -off Boxes at the direction of the Customer. D. Time: The Customer is entitled to retain the Bin or Roll -off Box(es) for seven (7) Business Days (not including weekends and holidays). After the initial seven (7) City of Palm Desert 47 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Business Days, additional fees may be due based on demurrage charges for use beyond the seven (7) Business Days. E. Charge: The Company may charge the established Temporary Bin and Roll -Off Box service rates as provided on the City -approved rate schedule. 4.6.4 Recyclable Materials Service for Bin Customers Company shall Collect and remove, all Recyclable Materials that are placed in Recycling Containers at least once every week, or more frequently up to six (6) times per week as requested by Customer or required at the Premises where the Containers are located at the rates in the approved rate schedule. Company shall provide as many Recycling Containers as agreed upon between Company and Customer as necessary to accommodate all Recyclables generated on the Premises. If a Customer's Recyclables are regularly contaminated, Company shall provide education and training to Customer. If Customer is non -compliant, Company may charge a contamination fee. Company to provide list of contaminated Containers per Section 8.3. Company shall Collect the following materials: Residential Recycling (Multi -Family Complexes) — same materials as listed above in Section 4.3.2. Commercial Recycling - Paper products and printing and writing paper as defined in Section 4.3.2, Glass — all colors, California Redemption Value and non - redemption value, Aluminum — cans, foil and trays, Bi-metal/tin — cans, Plastics/resins — Nos. 1 through 7, the Company also agrees to make programs available for all other materials for which it has established markets. Organic Materials (see Section 4.6.5 below) shall each be Collected in separate Containers and not commingled with other Recyclable Materials or Refuse. 4.6.5 Roll -Off Boxes Organic Materials Collection The Company shall offer Organic Materials Collection to Roll -off Box Customers. The Company shall notify all of its Roll -off Box Refuse Customers of the availability of Organic Materials Collection service at least once each year. For those Roll -off Box Customers who choose to participate, the Company shall provide Organic Materials Collection using Roll -off Boxes. Additionally, Organic Materials Roll -off Box charge shall be no more than 100% of the standard pull charge for a Roll -off Box plus the actual cost of Organic Materials Processing at the Organic Materials Processing Facility. 4.6.6 Commercial Site Visits Annually, upon execution of this Agreement, Company shall contact, via physical onsite visit, each Commercial Customer that does not already participate in a Recyclable City of Palm Desert 48 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Materials and/or Organic Materials Collection program through Company. The purpose of the contact shall be to establish Recyclable Materials and Organic Materials Collection programs. Within thirty (30) days following the end of the most recent calendar quarter, Company shall provide City with a written record of such contacts, including contact name, contact telephone number, form of contact (site visit, telephone, email, etc.), and details of resulting new Recyclable Materials and Organic Materials Collection program or reasons why one was not established. City has final approval of quarterly written record of contacts and reserves the right to address the record if it is not meeting the City's needs for monitoring purposes. Contacts require a site visit unless the visit is specifically declined by the Customer with record of the number of phone call attempts made by Company to schedule the required onsite visit. Company shall make at a minimum three (3) documented phone and/or email attempts on different Business Days before adding a Customer to the list of declined visits by the Customer. 4.6.7 Overflowing Commercial Containers and Enclosure Clean -Outs Customers that regularly produce more Refuse, Recyclable Materials, or Organic Materials than their current level of service can accommodate may have their service level increased in accordance with the following procedure: First Incident in Three Month Period — If more material is placed for Collection than fits in a Bin or Cart, Company shall photograph the overflowing Container, Collect the Discarded Materials, and send to the Customer (at both the service and billing addresses) the picture and a letter offering Recyclable Materials or Organic Materials Collection for a charge and instructing that the next instance of an overflowing Container may result in a charge, and possibly in an increase in the level of service. Second Incident in Three Month Period — Upon the second event of an overfilled Container in a three-month period, if the Customer has not implemented a Recyclable Materials and Organic Materials Collection program, Company shall photograph the overflowing Container, Collect the Discarded Materials, and send to the Customer the picture and a letter offering Recyclable Materials or Organic Materials Collection and instructing that a third incident in that same three month period may result in an increase in the level of service. If a Bin overflowed sufficiently to require the driver to leave the Collection vehicle to clean around the Bin, Company may charge the Bin Overage Cleanup fee in the approved rate schedule. If Refuse was left beside a Customer's Commercial Cart for Collection, Company may charge the extra pickup fee in the City - approved rate schedule. If a Recyclable Materials and Organic Materials Collection program had been implemented, Company will offer Customer assistance in training staff to separate Recyclable Materials and Organic Materials properly and, if warranted, provide additional Recyclable Container capacity to avoid future overflow issues. City of Palm Desert 49 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Third Incident in Three Month Period — Upon the third event of an overfilled Container in a three-month period, Company shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter requesting that Customer increase its service level and/or implement a Recycling or Organic Materials Collection program for a charge that will lower the level of Refuse Disposed. If the Customer declines, Company may petition City to permit Company to increase the service level to accommodate the higher demand for service. If a Bin overflowed sufficiently to require the driver to leave the Collection vehicle to clean around the Bin, Company may charge the Bin overage cleanup fee in the approved rate schedule. If Refuse was left beside the Cart for Collection, Company may charge the Cart overage fee in the approved Rate Schedule. 4.6.8 Organic Materials Collection Program Company will provide an Organic Materials Collection program that at minimum meets the standards required under AB 1826, which requires a local government agency, Commercial, and Multi -Family Premises with more than five (5) units to Recycle their Organic Waste. Commercial Customers and Multi -Family Premises with five (5) units or more that generate two (2) or more cubic yards of Solid Waste are required to arrange for Organic Material Recycling services. By January 1, 2023, the SB 1383 implementation date pursuant to 14 CCR Section 18995.1(a)), Company shall implement Organic Materials Collection services for all Multi -Family and Commercial Customers to support Generator compliance with SB 1383 requirements. Company will offer information by site visits, emails, phone calls, and other outreach methods approved by City for the Organic Materials Collection at the rates in accordance with the approved Rate Schedule or as may be adjusted under the terms of this Agreement. Company is responsible for providing City monthly updates, in accordance with Section 8.3, in a format approved by City, of any and all outreach related to the Commercial Organics Materials program. Company shall be responsible for ensuring that the Organics Materials Collection and Processing program meets the requirements of Applicable Law and may be required to modify its program from time to time (subject to rate adjustments pursuant to Article 6). Company shall produce, keep current, and provide public information specifically outlining its Organics Material program. 4.6.9 Compactor Service The Company shall offer stationary compactor services for the Collection of Commercial Solid Waste from high -volume Commercial Customers from stationary compactors that are maintained by either Customer or Company as mutually agreed. A. Condition of Equipment: If provided by Company, compactors shall be free of City of Palm Desert 50 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 graffiti and in good repair, and must be clearly marked and identifiable as belonging to the Company. B. Location: The designated Collection location shall be arranged by Customer in accordance with the requirements and design standards of City and with the prior approval of the City. The selected location shall be subject to the prior written approval of Company. C. Arranging: The Company shall Collect compactors at the direction of the Customer. D. Charges: The Company may charge up to the maximum City -approved rate. E. Conditions: The compactor shall be compatible with Company's Collection equipment and procedures. The location, compactor and Collection operation of the compactor shall be approved in writing, by Company before installation. The Customer shall be solely responsible for the safe operation of the compactor and for all repairs that may be needed from time to time unless arranged to be performed by Company. 4.7 City Services and Other Requirements 4.7.1 City Facilities' Collection Company shall provide, at no additional charge to City, Containers for, and Collection and Disposal of, all Solid Waste generated at Premises owned and/or operated by the City as designated in Exhibit 1, as well as new City facilities that may become part of the City. City facilities that are (1) not operated for a public purpose or (2) operated as a City enterprise shall pay for services at the rates and charges in effect at the time service is rendered and under the same terms and conditions as any other Commercial Customer. Collections shall be scheduled at a time mutually agreed upon by the Company and City. Company shall provide separate Recycling Containers appropriate for the type and amount of materials on a facility -by -facility basis for Collection of commingled Source Separated Recyclable Materials listed in Section 4.3.2; for Source Separated Organic Materials; and for Source Separated Construction and Demolition Debris (where the Construction and Demolition Debris may be mixed together or separated into various materials types such as concrete, asphalt, woody waste, metals and sand, soil and sod). 4.7.2 Abandoned Item Collection Company shall Collect, at no additional charge, abandoned items from public streets or rights of way, including but not limited to President's Plaza East and West parking lots, City of Palm Desert 51 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 within twenty-four (24) hours of notification by City staff. Company shall Transport abandoned items to an Approved Facility for Recycling, Processing, or Disposal. 4. 7.3 City Sponsored Events The Company shall provide Refuse, Recycling, and Organic Materials Collection, Processing and Disposal services at up to six (6) individual City -sponsored, not for profit events each year. City shall designate the six (6) events. These services shall be provided at no cost to the City. or the event. In addition to providing Collection services, the Company shall provide portable toilet and sink service at up to four (4) individual City - sponsored events. 4. 7.4 Yard Waste Drop-off Site Company shall permit residents of City to drop-off Yard Waste at no charge at Company's Edom Hills Facility located at 70-100 Edom Hill Road, Cathedral City, CA 92234, with a limit of two -hundred and fifty (250) tons per year, with the exception that landscapers and gardeners shall be charged. 4.7.5 Construction and Demolition Material Recycling Company shall Divert a minimum of seventy five percent (75%) of all Construction and Demolition Debris Collected by Company. Company shall Transport all C&D loads to an Approved C&D Processing Facility where the C&D shall be Processed for Recycling, Reuse, or composting, or, if materials have been Source Separated, Transport all C&D directly to a C&D Facility for Reuse, Recycling, composting, and Processing. Diversion is subject to the following: A. Company's program shall commence upon the effective date and continue during the City's continuation and enforcement of: i. City's comprehensive Construction and Demolition Debris Recycling ordinance, when approved, designed to Divert a minimum of seventy five percent (75%) of all Construction and Demolition Waste Collected by Company, I That there continuously exists in the Coachella Valley sufficient properly licensed and permitted Construction and Demolition Material Diversion Facilities capable of accepting, Processing and Diverting at least seventy five percent (75%) of the Construction and Demolition Waste generated within City and Collected by Company. (Current acceptable Facilities and Company's future Facility(ies)), and City of Palm Desert 52 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 iii. Complying with CalRecycle and California Building Standards Code including Part 11 California Green Building Standards Code (CALGreen) requirements for the Processing and Recycling of C&D including Organic Waste. Company's failure to Divert a minimum of seventy-five percent (75%) of Construction and Demolition Material from landfill Disposal shall not subject Company to penalties or liquidated damages provided that Company has made a good faith effort to implement City's Construction and Demolition Material Diversion ordinance as described herein. In no event shall Company's failure to Divert a minimum of seventy-five percent (75%) of C&D Material generated within City and Collected by Company result in a breach of Agreement, but may be considered in City Council's review of Agreement extension option. Company shall separately document the following information for each C&D Facility: (1) the tonnage of C&D Collected; (2) the tonnage of C&D delivered to each Approved C&D Processing Facility, specialty recyclers, and/or Reuse or salvage operations or locations where C&D was delivered for Processing or Reuse; and, (3) calculation of the project - specific Diversion level (tons of C&D Recycled, Reused, or salvaged divided by total tons of C&D Collected). Company shall submit C&D tonnage information and other data pursuant to Section 8.3 of the Agreement. Company shall provide each Customer with documentation necessary for the Customer to meet the requirements of the City's C&D ordinance. Roll -off Box Collection service shall be charged on a "pull plus dump" basis, with one service fee or "pull charge" plus a per ton fee component. The per ton component for mixed C&D Material loads shall be no more than the per ton rate listed on the approved rate schedule. Such loads shall be Processed to recover Recyclables. The per ton component for Source Separated loads (e.g., concrete, dirt, asphalt, wood) shall be the actual per ton gate rate at the Approved Facility accepting the material for Diversion, but no more than the per ton rate for mixed loads. 4.7.6 Shred It Recycle Program Company shall operate three (3) drop -in document shredding events for Palm Desert Customers annually, one (1) in the first (1st) calendar quarter of the year, one (1) in the second (2nd) calendar quarter of the year during May or June, and one (1) in the fourth 4th) calendar quarter of the year. The dates of the events shall be mutually agreed upon in advance by the City and Company. The location of the document shredding drop -in events shall be at a location approved in advance by the City. Company shall advertise the event on its website and in newsletters, and in a display advertisement published in a newspaper of general circulation in the City ten (10) days prior to each drop -in document shredding event. Each event shall be at no cost to the City, residents, or City of Palm Desert 53 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 businesses. Residents and Commercial businesses may be limited to ten (10) boxes per event. Company shall Transport shredded paper received during these events to the Approved Source Separated Recyclable Materials Processing Facility for Processing, to a Facility that qualifies as a "Recycling Center" as set forth in 14 CCR Section 3017402.5(d), or is listed in 14 CCR Section 17402.5(c), or other operation or Facility that is deemed to constitute a reduction in landfill Disposal pursuant to 14 CCR Section 18983.1(b). 4.7.7 Sharps Recycle Program Company shall provide a mail -in program for the Collection of used needles, with program specifics to be approved by City, and shall accept Sharps at its HHW center and at other locations that may develop as a result of expansion of the program in the City. Company shall be responsible to ensure that the Sharps Collection programs comply with all Applicable Laws and regulations. These programs shall be provided by Company at no additional cost to residents but may be provided to non -Residential Customers for a fee. 4.7.8 Compost Giveaway Company shall conduct at least one Compost giveaway event per calendar year at no additional charge. City residents will be allowed to fill up their Containers on a first - come, first -served basis. Company shall provide at least one thirty (30) cubic yard Roll - Off Container of Compost material delivered to a location designated by the City for each event. Any Compost material remaining after event shall be utilized by the City. The Compost giveaway events will be coordinated with the City and may be held in conjunction with other City events. 4.7.9 Warning Notice for Prohibited Container Contaminants The Company shall warn Customers in accordance with.Section 5.5.2.1.0 who have Prohibited Container Contaminants in their Refuse, Recycling, or Organics Containers. Warning should notify Customer that Company may charge a Collection fee for contaminated Containers in accordance with the approved rate schedule. The Company shall report monthly to the City any warning notices issued as part of its monthly reporting under Section 8.3. 4.7.10 Marketing and Sale of Recyclable Materials The Company shall be responsible for marketing and sale of all Recyclable Materials Collected pursuant to this Agreement. Company shall retain proceeds from sales of Recyclable Materials. City of Palm Desert 54 March 10, 2022 City of Palm Desert Contract No. C42860 4.7.11 End Uses for Organic Materials Franchise Agreement Company shall Divert Organic Materials Collected through curbside Collection, Commercial Organic Materials Collection program, Roll -Off Container Collection, and holiday tree Collection and dropped off at Company site from Disposal through composting, mulching or other non -Disposal method. The Company must provide end uses for Organic Materials that meet SB 1383 requirements and that maximize Diversion credits for the City according,to regulations established by CalRecycle, and may not use Organic Materials as Alternative Daily Cover (ADC) or Alternative Intermediate Cover AIC). Company shall retain proceeds from sales of any Organic Materials products. 4.7.12 Diversion and Customer Participation Compliance Requirements 4. 7.12. 1 Diversion Reauirements The minimum amount that shall be Diverted through Recycling, Organic Materials Collection, and Transformation is fifty percent (50%) or the State mandated Diversion goal. Transformation shall consist of a maximum of ten percent (10%) of the total waste stream. Should the City not reach the AB 939 fifty percent (50%) Diversion goal or approved future State mandate(s) for its entire waste stream, the Company agrees to make reasonable efforts to implement programs and provide equipment necessary in order for the City to meet the fifty percent (50%) Diversion goal. City may require Company to meet a higher Diversion rate for Solid Waste Collected by Company. In the event the State increases minimum Diversion goals above the fifty percent (50%) required by AB 939, Company shall ensure City will meet the higher Diversion level, with a rate adjustment equal to the reasonable, actual cost of such additional programs. 4.7.12.2 Customer Particivation Comvliance Reauirement The minimum required level of Customer participation that must be achieved by Company on or before January 1, 2023, and maintained thereafter for the duration of the Term includes the following: 1. SB 1383 Proerams. A. Residential Premises Company must fully implement a Residential Organic Materials Diversion program where all Residential Premises are provided, individual or centrally located, Containers that comply with SB 1383. City of Palm Desert 55 March 10, 2022 City of Palm Desert Contract No. C42860 B. Commercial Premises Franchise Agreement Company must implement and maintain an SB 1383 compliant Commercial Recycling and Organic Materials Diversion program with the goal of providing Recycling and Organic Materials Containers to all Customers required to have such Containers under CalRecycle requirements. At a minimum, Company shall provide Containers to at least ninety-five percent (95%) of Customers required to have Recyclable Materials Containers, and ninety-five percent 95%) of Customers required to have Organic Materials Containers, that have not otherwise been granted a waiver per the City Municipal Code, do not otherwise comply via Self -Haul or Back -Haul programs, or have not been forwarded to the City's Code Enforcement Department for enforcement action. Commercial Customers that refuse to implement programs and have been inspected by the Company per Section 5.5.3 and have been forwarded to the City's Code Enforcement Department for City enforcement of the City's Municipal Code will not be included in the calculation of the ninety-five percent (95%) compliance requirement. For example, if there were one thousand (1,000) Commercial Customers required to have compliant programs under SB 1383 and twenty-five (25) of those have been forwarded for to City's Code Enforcement Department for enforcement action, the minimum number of Commercial Customers required to have a compliant program under this Section 4.7.1.2 would be calculated as follows: (1,000 — 25) X 95% = 926 Commercial Customers. 2. Comvanv Has Maintained Full Implementation of all AB 341 and AB 1826 Diversion Proerams. Company must implement and maintain AB 341 and AB 1826 Diversion programs such that all Commercial Customers required to have such programs are subscribed to the Company -provided program, unless the Customer has been granted a waiver per the City Municipal Code or do not otherwise comply via Self -Haul or Back -Haul programs. 3. Non -Compliant Customers Company shall document any Customers that do not subscribe to the required mandatory programs per AB 341, AB 1826, and/or SB 1383, and forward the list of non- compliant Customers to the City's Code Enforcement Department. 4.7.13 CNG Fueling Station Company will allow City to use Company's public access CNG fueling station at the pump price available to the general public. City of Palm Desert 56 March 10, 2022 City of Palm Desert Contract No. C42860 4.7.14 Hazardous Waste Services Franchise Agreement The Company shall maintain the following Hazardous Waste services/programs: A. At -Home Collection Service: The Company shall provide all labor, equipment, and services necessary to Collect HHW from individual Residential dwellings and Multi -Family housing complexes upon request of the occupant or property manager/management. The service shall be operated according to the following guidelines: 1. The service will be provided to any Residential dwelling within five (5) Business Days of a telephone or written request by the occupant. 2. Collections shall be made Monday through Friday during normal business hours of 6:OO,,a.m. to 5:00 p.m. 3. Residents must store HHW materials in a secure location not accessible to the general public until Collected by Company. 4. The total amount of HHW materials Collected from an individual dwelling unit shall not exceed fifteen (15) gallons per pickup as regulated by State regulations. Other limitations shall consist of ten (10) CFL bulbs/bulbs, 32 oz. can of household batteries and other limitations as may be approved by the City. 5. The number of Collections at any dwelling shall be limited to four (4) in each calendar year. 6. Materials to be Collected must be presented for Collection in spill and leak- proof Containers. 7. Prior to acceptance for Collection, all materials shall be inspected by Company's representative and only those materials that can be identified by either their original Container labeling or by sight recognition of a trained technician will be accepted for Collection. 8. The dwelling occupant or a responsible adult representative of the dwelling must be present at the time of Collection or the material must be placed at a side gate or secure area. No items will be accepted at the curbside of any residents. City of Palm Desert 57 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 9. The cost of the on -going at-home HHW Collection service may be paid through grant funding as outlined in Section 6.7. The Company will invoice the City an $19.58 service charge per stop plus actual Disposal Cost. The service charge will be subject to increases in accordance with Article 6 of this Agreement. 10. At such time as the City deems appropriate, City and Company will negotiate in good faith a rate to be implemented with the annual rate increase process. 11. Multi -Family Dwelling Units shall keep materials in a safe but accessible location for Collection. Property manager/Company shall be responsible for setup of a central location that all tenants may temporarily place materials that is safe and accessible for pickup. Limited to four (4) times per year. 12. Materials to be Collected through at-home HHW Collection service: acids, kerosene, other household flammable liquids, bases, lamp oil, paint strippers, ethylene glycol, latex paint, pesticides, herbicides, fertilizers, lead acid batteries, small quantities of Mercury from home -based Mercury containing devices, household batteries, oil -based paints, used motor oil/used oil filters, household cleaners, old gasoline, Sharps, E-Waste, and Universal Wastes. B. Conditionally Exempt Small Quantity Generators (CESQG) (Commercial Businesses) Hazardous Waste Program: Palm Desert Commercial businesses shall drop-off Hazardous Waste materials at Company site located at 41-800 Corporate Way, Palm Desert, CA. Following is the process in order to schedule an appointment for drop-off: Palm Desert Commercial businesses must contact Company's contractor at 1-800-952-5566, unless contractor changes. Customer would then contact Company at (760) 340-2113 to schedule an appointment for drop-off. Company's contractor shall contact City prior to setting appointment to confirm that Commercial business is licensed and physically located within the Palm Desert City limits. Company's contractor to finalize appointment with business after approval from City. If Company's contractor determines the Hazardous Waste materials Collection and Disposal amount will exceed the City cost allotment provided in the following paragraph, Company will provide an invoice for the additional cost to the Commercial Customer to remit payment during the scheduled appointment directly to Company or Company's contractor. City of Palm Desert 58 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Palm Desert Commercial businesses shall be allotted three hundred dollars 300.00) per calendar year. Allocated funds shall not be carried -over to the following year. Business shall be responsible to pay all costs over three hundred dollars ($300.00) in the calendar year. The three hundred dollars 300.00) allotment may be eliminated or reduced at City discretion. CESQG are regulated to State and federal laws that limit the use of Hazardous Waste Collection programs as follows: one hundred (100) kilograms (twenty-seven (27) gallons or two hundred and twenty (220) pounds) of Hazardous Waste per month. Businesses that generate more than this amount are required by law to use a licensed Hazardous Waste hauler to manifest and Transport their waste. Company's contractor to require business to complete the CESQG Data Sheet and Waiver and keep on file and submit copies of all forms to City quarterly. C. Other Responsibilities of Company: Additional responsibilities of the Company include: 1. A written operating plan for the HHW Facility and the HHW at-home Collection service; 2. The development, preparation, and distribution of public education materials and participation in school education programs; 3. Maintenance of any required HHW Facility, handling of Transportation permits; 4. Selection of a permitted Hazardous Waste hauler (unless performed by Company); 5. Management of the HHW Facility/Services when operated at Company's yard; and 6. Assistance to City in the preparation of grant applications. D. Annual Statement of Cost - The Company shall submit an annual statement to the City by March 315t of each year for operations during the previous calendar year. This report shall include _ the detailed costs and operating statistics (e.g., number of Customers by jurisdiction and quantities by waste type for each jurisdiction) for the HHW services during the previous calendar year and for At - City of Palm Desert 59 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Home Collection Service and CESQG. E. Materials to be Accepted at Facility - The Company shall accept and remain permitted to accept the following HHW that are defined as HHW: Electronic Waste: cathode ray tube containing devices, cathode ray tubes, computer monitors, desktop computers, computer keyboards, fax machine, computer scanners, hard drives, ink toner cartridges, iPads and tablets, laptop computers, LCD containing desktop monitors, microwaves, paper shredders, printers, portable DVD players, radios, routers, speakers, small wine coolers and down size refrigerators, televisions, telephones, cell phones, answering machines, video cassette recorders, and calculators; and, Universal Waste: household batteries (including AAA, AA, C, D, button cell, and 9-volt), household lightbulbs, florescent lamps, non -PCB ballasts, motor oil, motor oil filters, and household thermometers that contain Mercury. F. Household Hazardous Waste Services Reporting - Company will submit a quarterly (unless otherwise noted) report within thirty (30) days of the end of each calendar quarter showing the following information by month: 1. Commercial HHW Collection Service The name, address, and number of Palm Desert business participants. The number of vehicles that used the services by City origin. The average cost per vehicle paid to the operations subcontractor. The total monthly cost and year-to-date cost of operating the HHW services for Palm Desert Customers. If applicable, grant funds utilized during the month and year-to-date for the cost of the HHW services operation for Palm Desert Customers, and remaining grant funds for the balance of the calendar year. The quantity and type of materials Disposed through HHW Collection services. 2. At -Home HHW Collection Service The number and addresses of dwellings from which Collections were made. The average cost per dwelling serviced. The total monthly cost and year-to-date for the cost of the HHW at-home City of Palm Desert 60 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Collections for Palm Desert Customers. The quantity and type of materials Collected in the HHW at-home Collection program. The number of households that utilized the At -Home Collection Service. CESQG Data and Waiver Sheet — submitted to City monthly. 4.7.15 Medication Takeback Program Company will assist the City in increasing awareness of medication takeback programs provided by local pharmacies, or programs offered by other government entities. Promotional activities will include: posting on Company's website, inclusion in the outreach materials mailed to each Residential Premises Customer, Billing inserts, social media targeted outreach, and press releases to local news outlets. 4.7.16 Procurement of Recovered Organic Waste Products Beginning April 1, 2022, Company shall procure sufficient Compost, Mulch, and/or Renewable Natural Gas to meet the City's per capita procurement annual recovered Organic Waste product procurement requirement contained in 14 CCR Section 18993.1, and all such materials shall meet specifications and requirements in 14 CCR Sections 18982(a) and 18993.1. The estimated quantity of Compost to meet this obligation based on the population as of 2021 is two thousand five hundred and one (2,501) tons and will adjust annually based on future population. Company may meet this obligation by one or a combination of the following activities: Bulk Compost and/or Mulch, derived from California Organic Materials, Reserved for City - Company shall make available, and Transport to City upon request, for City Compost or Mulch for use in City parks and facilities at no cost to the City estimated not to exceed delivery to six (6) sites and one hundred (100) tons per year for City use. Bulk Compost and/or Mulch, derived from California Organic Materials - Company shall procure and distribute the required amount of Compost to other parties on behalf of the City and provide all required documentation so the City receives procurement credit. Compost Giveaway as described in Section 4.7.8. Use of Renewable Natural Gas in Collection vehicles. Company shall ensure sufficient storage capacity and supply of California recovered Organics Waste products to meet the procurement requirements for jurisdictions contained in SB 1383, as may be amended, during the Term of this Agreement including Agreement extensions granted by the City. City of Palm Desert 61 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 4.7.17 Company Warranty of Recovered Organic Waste Products Company shall provide assurance through the execution of a liability waiver stating that all Organic Waste products provided by the Company and used within the City meet all Applicable Laws, including with respect to allowable levels of pathogens and inorganic waste material that may be harmful to the health and welfare of the City. The Company shall indemnify and hold harmless the City against any claims arising from recovered Organic Waste products provided by the Company that do not comply with Applicable Law. 4.7.18 Special Cleanup Events Company shall annually provide Containers for up to twelve (12) cleanup events per year at locations requested by the City at no additional charge. Containers for use at events shall not exceed one, forty (40) yard Roll -off Box or equivalent Container capacity using multiple smaller Containers. These cleanup events include, but are not limited to cleanup of temporary encampments as may be directed by the City. 4.7.19 Community Composting Facilities If a properly permitted community Composting site as defined in 14 CCR Section 18982(a)(8) becomes available in or around the City of Palm Desert, Company will Transport Organic Materials Collected in the City to the site per the direction of the City. The Approved Facilities table in Exhibit 8 will be administratively updated by the City at the time a community Composting site is approved by the City for delivery of Organic Materials. Company is required to provide records of the amount of Source Separated Organic Materials delivered to any community Composting sites as an additional item in the monthly reports per Section 8.3.2. 4.8 Operations 4.8.1 Schedules Solid Waste shall be Collected according to the City Code as follows: Commercial: a) Winter Months (October 1st through April 30th) - between 6:00 a.m. and 6:00 p.m.; b) Summer Months (May 1st through September 30th) - between 5:30 a.m. and 6:00 p.m. City of Palm Desert 62 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Residential: a) Winter Months (October 1st through April 30th) — between 6:30 a.m. and 6:00 p.m.: b) Summer Months (May 1st through September 30th) — between 5:30 a.m. and 6:00 p.m. Solid Waste shall be Collected from Commercial zones Monday through Saturday, and Residential zones Monday through Friday, unless Saturday Collection shall be necessary due to holiday scheduling. If the regularly scheduled Collection day falls on New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, or Christmas Day, alternate Collection shall be performed on the following day, unless the alternate day falls on Sunday. Alternate Collection shall then be performed on the following Monday. All other Collection days falling on a legal holiday shall remain as scheduled. Collections for the remainder of the week following a holiday shall be delayed for one day. The Company shall be prepared to review its operations plan outlining the Collection routes, intervals of Collection and Collection times for all materials Collected under this Agreement with the City once annually upon thirty (30) day written notice requesting said review. More frequent reviews may be required if operations are not satisfactory based on documented observations or reports of complaints. If the plan is determined to be inadequate by the City, the Company shall revise its plan incorporating any changes into a revised plan and review said revised plan with the City within thirty (30) calendar days. When notified of a missed pick-up, the Company shall Collect the Refuse, Recyclable Materials, and/or Organic Materials within one (1) Business Day. 4.8.2 Vehicles A. General. The Company shall provide Collection vehicles sufficient in number and capacity to efficiently perform the work required by this Agreement in strict accordance with its terms as described in the Company's Proposal. Any additional vehicles/routes that may be required to meet the service standards during the Term of this Agreement, above the number included in the Company's Proposal shall be done so at the Company's sole expense. The Company shall have available on Collection days sufficient back-up vehicles for each type of Collection vehicle used to respond to complaints and emergencies. Company shall provide electronic communication with the route supervisor and Commercial and Residential Collection vehicles. B. Specifications. All vehicles used by the Company in providing Refuse, Recycling, City of Palm Desert 63 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 and Organic Materials Collection services shall be registered with the California Department of Motor Vehicles. All such vehicles shall have water -tight bodies designed to prevent leakage, spillage or overflow. C. Alternative Fuel Vehicles. The Company shall comply with the requirements of the South Coast Air Quality Management District Rule No. 1193. Further, all regular Residential, Commercial, and Roll -Off Collection vehicles used by the Company to Collect Refuse, Recyclable Materials, Organic Materials, Food Waste, and Organic Materials generated within City shall be alternative fuel vehicles. Qualifying vehicles include: 1) Compressed Natural Gas (CNG) vehicles; and, 2) Liquefied Natural Gas (LNG) vehicles 3) Other alternative fuel vehicles with similar emission performance standards if such vehicles are approved in writing by the City in advance of implementation of such vehicles. D. Vehicle Identification. The Company's name, local telephone number, and a unique vehicle identification number designed by the Company for each vehicle shall be prominently displayed on all vehicles, in letters and numbers no less than three (3) inches high. The Company shall not place the City's name and/or any City logos on the Company vehicles. E. Cleaning and Maintenance 1) The Company shall maintain all of its properties, vehicles, Facilities, and equipment used in providing service under this Agreement in a good, safe, neat, clean and operable condition at all times. 2) Vehicles used in the Collection of Refuse, Recyclable Materials, and Organic Materials shall be painted, thoroughly washed, and thoroughly steam cleaned on a regular basis so as to present a clean appearance. The City may inspect vehicles at any time to determine compliance with this Agreement. The Company shall also make vehicles available to the Riverside County Health Department for inspection, at any frequency it requests. The Company agrees to replace or repair to the City's satisfaction, any vehicle which the City determines to be of unsightly appearance, leaking, or in unsatisfactory operating condition. 3) The Company shall repaint all vehicles used in the Collection of Refuse, City of Palm Desert 64 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Recyclable Materials and Organic Materials within sixty (60) days notice from the City, if the City determines that their appearance warrants painting. 4) The Company shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles which are not operating properly, or vehicles in such a condition as to be unsafe or excessively noisy, shall be removed from service until repaired and operating properly. The Company shall reasonably perform all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. The Company shall keep accurate records of all vehicle maintenance, recorded according to date and mileage (or hours of operation) and shall make such records available to the City upon request. 5) The Company shall repair, or arrange for the repair of, all of its vehicles and equipment for which repairs are needed because of accident, breakdown or any other cause so, as to maintain all equipment in a safe and operable condition. If an item of repair is covered by a warranty, the Company shall obtain warranty performance. The Company shall maintain accurate records of repair, which shall include the date and mileage (or hours of operation), nature of repair and the verification by signature of a maintenance supervisor that the repair has been properly performed. 6) Upon request by the City, the Company shall furnish the City a written inventory of all Collection equipment, including vehicles and Containers used in providing service, and shall update the inventory upon request, up to once annually. The inventory shall list all equipment by manufacturer, ID number, date of acquisition, type, and capacity. 7) Company shall clean up any leaks or spills from its vehicles per the National Pollutant Discharge Elimination System (NPDES) permit in effect at the time. No fluids shall be washed into storm drains at any time. All NPDES dry- cleaning measures shall be complied with. All Collection Vehicles must be equipped with absorbent for such clean-up efforts. F. Operation. Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances. The Company shall not load vehicles in excess of the manufacturer's recommendations or limitations imposed by State or local weight restrictions on vehicles. Equipment shall comply with US EPA noise emission regulations, currently codified at 40 CFR Part 205 and other applicable noise control regulations, and City of Palm Desert 65 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 shall incorporate noise control features throughout the entire vehicle. In no event shall the noise level of equipment used for Collection exceed 75 dba when measured at a distance of 25 feet from the vehicle, five feet from the ground. The Company shall store all equipment in safe and secure locations in accordance with the City's applicable zoning regulations. Subject to Section 9.1, the Company shall be responsible for any damage resulting from or directly attributable to any of its operations, and which it causes to: the City's driving surfaces, whether or not paved; associated curbs, gutters and traffic control devices; other public improvements; and private roads and alleys. G. City Inspection Per Code. The City may cause any vehicle used in performance of this Agreement to be inspected and tested at any commercially reasonable time and in such manner as may be appropriate to determine that the vehicle is being maintained in compliance with the applicable provisions of the State Vehicle Code, including all Vehicle Code Sections regarding smog equipment requirements. The City may direct the removal of any vehicle from service if that vehicle is found to be in nonconformance with applicable codes. No vehicle directed to be removed from service by the City shall be returned to service until it conforms with applicable codes, and its return to service has been approved by the City. H. Vehicle Inspections. Company shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles that are not operating properly shall be taken out of service until they are repaired and operate properly. Company shall repair, or arrange for the repair of all its vehicles and equipment for which repairs are needed because of accident, breakdown, or any other cause so as to maintain all equipment in a safe and operable condition. City may inspect vehicles at any reasonable time, and within three (3) calendar days of such a request, to determine compliance with sanitation requirements. I. Correction of Defects. Following any inspection, the City Manager or their designee shall have the right to cause the Company, at its sole cost and expense, to recondition or replace any vehicle or equipment found to be unsafe, unsanitary or unsightly. The City Manager or their designee's determination may be appealed to the City Council, which decision shall be final. 4.8.3 Containers 4.8.3.1 Cart Design Requirements These Carts shall be manufactured by injection or rotational molding and meet the Cart design requirements as specified below and performance requirements in Section 4.8.3.2. Carts must meet color, size, uniformity, and quality requirements of the City. The City City of Palm Desert 66 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 will not permit Carts with inconsistent colors or in poor condition to be used in the City at any time during the Term of this Agreement, and may require Company to replace such Carts. 4.8.3.1. 1 Capacitv The Company shall continue to provide new and replacement Carts in the same three sizes and appearance for Residential Refuse, Recycling and Organic Materials Collection as in use at the start of this Agreement Term: 95, 65, and 35-gallon sizes. 4.8.3.1.2 Cart Handles The Cart handles and handle mounts may be an integrally molded part of the Cart body or molded as part of the lid. Bolt -on handles are acceptable. The Cart handles will provide comfortable gripping area for pulling or pushing the Cart or lifting the lid. Pinch points are unacceptable. 4.8.3.1.3 Cart Lid Each Container shall be provided with a lid that continuously overlaps and comes in contact with the Container body or otherwise causes an interface with the Container body that simultaneously: Prevents the intrusion of rainwater, rodents, birds, and flies; Prevents the emission of odors; Enables the free and complete flow of material from the Container during the dump cycle without interference with the material already deposited in the truck body or the truck body itself and its lifting mechanism; Permits users of the Container to conveniently and easily open and shut the lid throughout the serviceable life of the Container; The lid handle shall be an integrally molded part of the lid; The lid (and body) must be of such design and weight that would prevent an empty Container from tilting backward when flipping the lid open; and, The lid shall be hinged to the Cart body in such a manner so as to enable the lid to be fully opened, free of tension, to a position whereby it may rest against the backside of the Container body: City of Palm Desert 67 March 10, 2022 City of Palm Desert Contract No. C42860 4.8.3.1.4 Cart Colors Franchise Agreement The Refuse, Recycling, and Organic Materials Carts will continue to be differentiated by color. The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Color must be uniform within each Container, and the colors must be uniform for all Carts throughout the City. Cart or Cart lid colors shall be consistent throughout the City, and shall comply with SB 1383 requirements under 14 CCR Section 18984.7. 4.8.3.1.5 Cart Identification Markines Labels used on Carts shall be placed on the inside of the Cart lid, and hot stamps shall be on the top of the lid and/or on the body of the Cart. Each Cart shall be hot stamped with the material type (e.g., Refuse, Recycling, Organic Materials) in English and Spanish. Labels shall include graphic instruction on what materials should and should not be placed in each Cart. Design for both the labels and the hot stamps must be approved by City prior to ordering labels or Carts. City shall approve what information is included on the label and in the hot stamp, as well as approve design and quality. Labels shall be replaced when worn, and when information on the label is in need of updating, but no later than ninety (90) days of request from City. Additionally, all Carts shall be labeled in accordance with CalRecycle requirements under SB 1383 under 14 CCR Section 18984.8 for new Containers after January 1, 2022. 4.8.3.1.6 Recvcline Cart Replacement for SB 1383 Compliance Upon execution of the Agreement, Company will initiate replacement of all Residential Recycling Carts. The existing gray Recycling Carts will be transitioned for use as Refuse Carts with new identification included on the Cart lids, and Company will deliver a new, blue Recycling Cart to replace all current Recycling Carts in use by Residential Customers. All Residential Recycling Carts will need to be replaced as described above within six (6) months of the effective date of the Agreement. 4.8.3.2 Cart Performance Rea uirements All Carts shall be designed and manufactured to meet the minimum performance requirements described below. 4.8.3.2.1 Cart Load Capacity Depending on the capacity, the Carts shall have a minimum load capacity as noted below without Container distortion, damage, or reduction in maneuverability or any other functions as required herein. City of Palm Desert 68 March 10, 2022 City of Palm Desert Contract No. C42860 Cart Size (Gallons) 90-101 60-70 30-35 4.8.3.2.2 Cart Durabilitv Franchise Agreement Minimum Load Capacity LBS) 200 130 70 Carts shall remain durable, and at a minimum, shall meet the following durability requirements to satisfy its intended use and performance, for the Term of this Agreement: Maintain its original shape and appearance; Be resistant to kicks and blows; Require no routine maintenance and essentially be maintenance free; Not warp, crack, rust, discolor, or otherwise deteriorate over time in a manner that will interfere with its intended use; Resist degradation from ultraviolet radiation; Be incapable of penetration by biting or clawing of household pets (i.e., dogs and cats); The bottoms of Cart bodies must remain impervious to any damage, that would interfere with the Cart's intended use after repeated contact with gravel, concrete, asphalt or any other rough and abrasive surface; All wheel and axle assemblies are to provide continuous maneuverability and mobility as originally designed and intended; and, Resist degradation by other airborne gases or particulate matter currently present in the ambient air of the City. 4.8.3.2.3 Chemical Resistant Carts shall resist damage from common household or Residential products and chemicals. Carts, also, shall resist damage from human and animal urine and feces. City of Palm Desert 69 March 10, 2022 City of Palm Desert Contract No. C42860 4.8.3.2.4 Stabilitv and Maneuverabilitv Franchise Agreement The Carts shall be stable and self -balancing in the upright position, when either empty or loaded to its maximum design capacity with an evenly distributed load, and with the lid in either a closed or open position. The Carts shall be capable of maintaining its upright position in sustained or gusting winds of up to twenty-five (25) miles per hour as applied from -any direction. The Carts shall be capable of being easily moved and maneuvered, with an evenly distributed load equal in weight to its maximum design capacity on a level, sloped or stepped surface. 4.8.3.2.5 Lid Performance Cart lid assemblies shall meet the following minimum requirements: Prevent damage to the Cart body, the lid itself or any component parts through repeated opening and closing of the lid by residents or in the dumping process as intended; Remain closed in winds up to twenty-five (25) miles per hour from any direction. All lid hinges must remain fully functional and continually hold the lid in the original designed and intended positions when either opened or closed or any position between the two extremes; and, Lid shall be designed and constructed such that it prevents physical injury to the user while opening and closing the Container. 4.8.3.2.6 Repairabilitv Minor cracks, holes, and other damages to hinges, wheels, axle, hardware, and other component parts shall be readily repairable by the Company personnel. All repairs must restore the Container to its full functionality to meet the design and performance requirements as set for herein. 4.8.3.2.7 Cart Replacement The majority of the Carts in distribution at the start of this Agreement Term are aging and may need replacing during the Agreement Term. Company shall replace any Cart upon request of City or Customer with a uniform -looking new Cart. Carts removed from service due to a complaint of poor appearance may not be placed back into service, in either the same or another location, unless specifically authorized in writing by the City. Replacement of Carts shall also be in conformance with Sections 4.8.3.1.5 and 4.8.3.1.6. City of Palm Desert 70 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 4. 8. 3. 3 Cart Ownership and Maintenance Responsibilities The Company shall be responsible for Cart repair and maintenance, graffiti removal, and replacing lost, stolen or damaged Carts within five (5) 'Business Days at no additional charge to the Customer or to the City. All Carts provided under this Agreement may become the property of the City at the end of this Agreement, although the City retains the right to direct the Company to remove some or all of the Carts at the end of this Agreement Term at no additional charge. Minor cracks, holes, and other damages to hinges, wheels, axle, hardware, and other component parts shall be readily repairable by Company personnel. All repairs must restore the Cart to its full functionality to meet the design and performance requirements as set for herein. Unsightly/worn-out Carts shall be replaced upon Customer request. Company shall replace, repair, and/or remove graffiti on Carts that require maintenance. Company shall proactively inspect all Carts for damage on an annual basis during the regular servicing of Customer Carts. Company shall provide a report to City on an annual basis documenting the results of the inspections. The inspection report shall summarize the number of Carts replaced by waste stream (Refuse, Recyclables, Organics). Additionally, the report shall identify the addresses where Carts were replaced and who requested the replacement Cart for each address (Customer, City, or Company). 4.8.3.4 Bins The Company shall provide Commercial, industrial, apartment and homeowner association Customers requesting such service with Containers for Collection of Solid Waste. Containers shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted. Wheels, forklift slots, and other appurtenances which were designed for movement, loading, or unloading of the Container shall be maintained in good repair. Bin Cleaning - The Company shall maintain its Containers in a clean, sound condition free from Putrescible Waste. Company shall inspect all Bins at least once per year, and clean or replace all Commercial and Industrial Containers as necessary, or upon Customer request. One free cleaning or replacement per calendar year shall be provided to each Customer at no additional charge, with two free cleanings/replacements per calendar year for food establishments. Company shall perform cleaning or replacement of Containers more frequently if necessary, for an additional fee, to prevent a nuisance caused by odors or vector harborage. Customer may request additional cleanings for a fee, in accordance with the approved rate schedule. Food handling establishments must have Bins cleaned at a minimum of one (1) time per year and must be maintained in accordance with the City Municipal Code and may be charged for cleanings beyond two 2) per year in accordance with this Section. Graffiti shall be removed from any Container City of Palm Desert 71 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 within one (1) Business Day of request by City or Customers. Each Container placed in the City by the Company shall have the name of the Company in letters not less than three (3) inches high on the exterior of the Container so as to be visible when the Container is placed for use. Company shall proactively inspect all Bins for damage on an annual basis during regular servicing of Customer Bins. Company shall provide a report to City on an annual basis documenting the results of the inspection including, but not limited to, the number of Bins replaced by Bin type broken down by City, Customer, or Company request, and the addresses where Bins were replaced. In addition, drivers shall be proactive in reporting Bins that require repair, replacement, and/or graffiti removal. Bin Identification, Colors, and Labels - All Bins shall be the same color, except where the City states otherwise, and shall carry the Company's name and phone number, at least three (3) inches high. All Refuse, Source Separated Recyclable Materials, and/or Organics Materials Bins at a Customer, location shall be uniform in color. Any new Containers purchased after January 1, 2022 shall include labeling in compliance with the Container labeling requirements specified in SB 1383,14 CCR Section 18984.8. However, Company shall not be required to replace existing Containers that do not comply with the labeling requirements,, including Containers purchased prior to January 1, 2022, prior to the end of the useful life of those Containers, or prior to January 1, 2036, whichever comes first. Company shall submit a sample of its proposed label design to the City for approval in advance of purchasing and distributing Containers to Customers. 4.8.3.5 Roll -off Boxes Company shall provide clean Roll -off Boxes, free from graffiti, equipped with reflectors, and shall have the name and phone number of Company in letters not less than three (3) inches high on the exterior of the Roll -off Box so as to be visible when the Roll -off Box is placed for use. Company shall properly cover all open Roll -off Boxes during Transport as required by the State Vehicle Code. Roll -off Boxes that are painted or purchased after January 1, 2022 shall comply with the Container color requirements specified in SB 1383 14 CCR Section 18982 and 14 CCR, Division 7, Chapter 12, Article 3) for Solid Waste, Recyclable Materials, and Organic Materials. 4.8.4 Litter Abatement A. Minimization of Spills. The Company shall use due care to prevent Solid Waste or fluids from leaking, being spilled and/or scattered during the Collection or Transportation process. If any Solid Waste or fluids leak or are spilled during Collection, the Company shall promptly clean up all such materials. Each Collection vehicle shall carry a broom and shovel at all times for this purpose. City of Palm Desert 72 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 The Company shall not transfer loads from one vehicle to another on any public street, unless it is necessary to do so because of mechanical failure, accidental damage to a vehicle, or a pre -approved method of Solid Waste transfer between vehicles, without prior written approval by the City. B. Clean Up. During the Collection or Transportation process, the Company shall clean up litter in the immediate vicinity of any Solid Waste storage or Collection area whether or not the Company has caused the litter. The Company shall identify instances of repeated spillage not caused by it directly with the Customer responsible and will report such instances to the City. The City will attempt to rectify such situations with the Customer if the Company has already attempted to do so without success. C. Covering of Loads. The Company shall properly cover all open Roll -off Boxes during Transport to an Approved Facility. 4.8.5 Personnel The Company shall furnish such qualified drivers, mechanical, supervisory, clerical, management and other personnel as may be necessary to provide the services required by this Agreement in a satisfactory, safe, economical and efficient manner. All drivers shall be trained and qualified in the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department of Motor Vehicles. The Company also agrees to establish and vigorously enforce an educational program which will train the Company's employees in the identification of Hazardous Waste. The Company's employees shall not knowingly place such Hazardous Waste in the Collection vehicles, nor knowingly Dispose of such Hazardous Wastes at the Processing Facility or Disposal Site. The Company shall train its employees in Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection crews to perform the work quietly. The Company shall use its best efforts to assure that all employees present a neat appearance and conduct themselves in a courteous manner. If any employee is found to be discourteous or not to be performing services in the manner required by this Agreement, the Company shall take all necessary corrective measures including, but not limited to, transfer, discipline or termination. If the City has notified the Company of a complaint related to discourteous or improper behavior, the Company will consider reassigning the employee to duties not entailing contact with the public while the Company is pursuing its investigation and corrective action process. City of Palm Desert 73 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 The Company shall provide suitable operations, health and safety training for all of its employees who use or operate equipment or who are otherwise directly involved in Collection or other related operations. 4.8.6 Identification Required The Company shall provide its employees, companies and subcontractors with identification for all individuals who may make personal contact with residents or businesses in the City. The City may require the Company to notify Customers yearly of the form of said identification. The Company shall provide a list of current employees, companies, and subcontractors to the City upon request. The City reserves the right to perform a security and identification check through law enforcement agencies upon the Company and all its present and future employees, in accordance with accepted procedures established by the City, or for probable cause. 4.8.7 Fees and Gratuities The Company shall not, nor shall it permit any agent, employee, or subcontractors employed by it, to request, solicit, demand, or accept, either directly or indirectly, any compensation or gratuity for temporary Bin/Roll-off Box services or the Collection, Transportation, Recycling, Processing, and Disposal of Solid Waste, otherwise required under this Agreement. 4.8.8 Equal Opportunity Employment Company represents that it is an equal opportunity employer and it shall not discriminate against any contractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non- discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Company shall also not discriminate against any Customer because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Lastly, Company shall comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 4.8.9 Coordination with Street Sweeping Services Company shall coordinate route schedules with the City's street sweeping schedule. Company shall provide all routes and route schedules to the City and work with City to resolve conflicts with street sweeping schedules. City of Palm Desert 74 March 10, 2022 City of Palm Desert Contract No. C42860 4. 8.10 Change in Collection Schedule Franchise Agreement The Company shall notify the City in writing forty-five (45) days prior to, and homeowner associations and other Residential Customers not later than thirty (30) days prior to, any change in homeowner association and other Residential Collection operations which results in a change in the day on which Solid Waste Collection occurs. The Company will not permit any Customer to go more than seven (7) days without service in connection with a Collection schedule change. The City's approval of any change in homeowner association and other Residential Collection is required prior to such change, and such approval will not be withheld unreasonably. Any changes in the route map or Collection schedule shall require the prior approval of the City. The City may require changes in the route map or Collection schedule, to improve service, to resolve complaints or for other reasons. 4.8.11 Report of Accumulation of Solid Waste; Unauthorized Dumping The Company shall direct its drivers to note the addresses of any Premises at which they observe that Solid Waste is accumulating and is not being delivered for Collection; and the address, or other location description, at which Solid Waste has been dumped in an apparently unauthorized manner. The Company shall deliver the address or description to the City within five (5) working days of such observation. Company shall cooperate with City in the investigation and prosecution of any violations of the Palm Desert City Code. 4.9 Transportation of Discarded Materials Company shall Transport all Discarded Materials to the Approved Facility(ies) specified in Exhibit 8 and shall transfer, Process, and/or Dispose of Discarded Materials in accordance with this Section and Exhibit 8. If the Approved Facilities change during the Term of this Agreement, and the Company does not own or operate one or more of the Approved Facilities, Company shall enter into a subcontract agreement with the Owner or Facility operator of such Approved Facility(ies) and the requirements of this this Section and Exhibit 8 shall pertain to the subcontractor. In addition, subcontractor requirements or obligations related to indemnification (Article 9) and insurance requirements (Section 9.4) shall apply, as well as any other subcontractor requirements or obligations stated in other Sections of this Agreement. The Approved Facilities shall comply with the following requirements. A. Approved Transfer Facility. Company's Approved Transfer Facility shall be a transfer Facility or operation that transfers Single Family Dwelling, Multi -Family Dwelling, and Commercial Source Separated Recyclable Materials, Source City of Palm Desert 75 March 10, 2022 City of Palm Desert Contract No. C42860 Separated Organic Materials, accordance with this Agreement. Franchise Agreement and/or Gray Container Waste Collected in B. Approved Source Separated Recyclable Materials Processing Facility (Blue Containers). Company's Approved Recyclables Processing Facility shall be a Facility or operation that Processes Residential Premise, Multi -Family Dwelling, and Commercial Source Separated Recyclable Materials to recover materials designated for Collection in the Blue Containers. C. Approved Organic Waste Processing Facility (Green Containers). Company's Approved Organic Waste Processing Facility shall be a Facility that Processes Single Family Dwelling, Multi -Family Dwelling, and Commercial Source Separated Organic Materials to recover Source Separated Organic Materials. D. Approved Disposal Facility (Gray Containers). Company's Approved Disposal Facility shall be a Disposal Facility that accepts Single Family Dwelling, Multi - Family Dwelling, and Commercial Gray Container Waste Collected in accordance with this Agreement for Disposal. 4.9.1 Processing Facility Temporary Equipment or Operational Failure Waiver A. Notification to the City. The Company, or their subcontractor (such as a Facility operator), shall notify the City of any unforeseen operational restrictions that have been imposed upon the Approved Facility by a regulatory agency or any unforeseen equipment or operational failure that will temporarily prevent the Approved Facility from Processing and recovering Blue Container and/or Green Container materials. The Company or subcontractor shall notify the City as soon as possible and no later than two (2) Business Days from the time of the incident. The notification shall include the following: (i) name of Approved Facility; (ii) the Recycling and Disposal Reporting System Number of the Approved Facility; (iii) date the Approved Facility became unable to Process Blue Container and/or Green Container materials; (iv) description of the operational restrictions that have been imposed upon the Approved Facility by a regulatory agency or unforeseen equipment failure or operational restriction that occurred; (v) the period of time the Company anticipates the temporary inability of the Approved Facility to Process Blue Container and/or Green Container materials; (vi) Company's proposed action plan to deliver materials to an Alternative Facility for Processing (refer to Section 8.1.G of Exhibit 8) or Company's request for waiver to deliver Blue Container and/or Green Container materials to the Approved Disposal Facility. B. Use of Alternative Facility or Waiver for Disposal of Materials. City of Palm Desert 76 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Upon notification by Company or subcontractor of the Approved Facility's inability to Process materials, City shall evaluate the notification and determine if City shall require Company to use an Alternative Facility or allow the Company to Transport the Blue Container and/or Green Container materials to the Approved Disposal Facility for Disposal on a temporary basis for a time period specified by the City. Upon City's decision, the City shall notify the Company of its requirement to use an Alternative Facility for Processing or to use the Approved Disposal Facility for Disposal, and the period of time that the City will allow the Blue Container and/or Green Container materials to be redirected to the Alternative Facility or Approved Disposal Facility. Pursuant to 14 CCR Section 18984.13, the approved Disposal period shall not exceed ninety (90) days from the date the Approved Facility's Processing restriction or failure, commenced. In such case, the Company must receive written permission from the City prior to depositing any Discarded Material in a Landfill. C. Record Keeping and Reporting. Company shall maintain a record of any Approved Facility incidents and report this information to the City in accordance with Article 8. 4.9.2 Transportation to Non -Approved Facilities Prohibited If Company Transports Discarded Materials to a Facility other than the Approved Facility(ies) or an Alternative Facility without prior City approval, Company's failure to comply may result in assessment of liquidated damages, as described in Section 11.4. 4.9.3 City Option to Direct Facility Changes The Company shall Transport all Discarded Materials Collected under this Agreement to an Approved Facility in Exhibit 8, or to an alternative Facility if directed by City. City's direction of a change to one of the Facilities that involves a change in Company's cost of Transportation or tip fees shall include a change in the Company's compensation to offset Company's reasonable changes in operating costs. Company shall not redirect Discarded Materials without first notifying City in writing 30-days prior to the proposed change. City's approval shall not be unreasonably withheld. City may periodically request Company to report the tip fees or Processing fees charged at the Approved Facilities and may evaluate those tip fees and Processing fees when considering rate increases requested by Company pursuant to Article 6 hereof. City's evaluation of tip fees and Processing fees at Approved Facilities used by Company shall be for the purpose of determining that said fees are within a reasonable range for City of Palm Desert 77 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 comparable Facilities within the same market area and shall consider all relevant cost factors including Transportation and Approved Facility output quality. City shall notify Company in writing if it determines any such fee is not within a reasonable range for comparable Facilities within the same market area. Within thirty (30) days of City's notification of unreasonable tip fees or Processing fees, Company shall either provide written justification for the fee or redirect materials to an alternative Facility in the same market area or adjust the fee in question. If a written justification for a fee is provided by the Company the City and Company shall hold a meeting to review the justification provided. The City shall have the final determination as to whether the justification is acceptable and authority to redirect materials. 4.10 Status of Disposal Site Any landfill utilized by Company shall comply with Applicable Law and shall have been issued all permits from federal, State, regional, county and the City agencies necessary for it to operate as a Class III Landfill and is in full regulatory compliance with all such permits. 4.11 Route Audit At City's request Company shall conduct an audit of its Commercial Collection routes in the City. Additionally, if requested by the City, the route audit shall also include Residential Collection routes. City shall request route(s) audit in writing. Within ninety 90) days of written notice to perform a route audit, Company shall perform the route audit and submit a report summarizing the audit findings and attaching the completed audit findings. The route audit shall be conducted by a Person(s), other than the route driver, selected by Company and approved in advance by the City. The route audit information shall include, as a minimum, the following information for each account: For Residential Routes: The number of routes, Collection vehicles, and stops for each day of the week and for each type of service (Refuse, Recycling, Organic Material, and other) prepared form physical observation. A report generated from Company's Customer records detailing all Customers organized by route and day of week and specifying the service address and type of service. A report of route audit findings identifying any variances between the physical audit and review of the Company's Customer records and the location of any City of Palm Desert 78 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 substandard Company -provided Cart. The number of routes, Collection vehicles, stops for each day of the week and for each type of service (Refuse, Recycling, Organic Material, and other) and tonnage of each. For Commercial Routes: The account name, number, address, and service level. The number of routes, Collection vehicles, and stops for each day of the week and for each type of service (Refuse, Recycling, Organic Material, and other) prepared form physical observation. A report generated from Company's Customer records detailing all Customers organized by route and day of week and specifying the service address and type of service. A report of route audit findings identifying any variances between the physical audit and review of the Company's Customer records and the location of any substandard Company -provided Cart. The number of routes, Collection vehicles, stops for each day of the week and for each type of service (Refuse, Recycling, Organic Material, and other) and tonnage of each. For Roll -Off Routes: The account,name, number, address, and service level. The number of routes, Collection vehicles, and stops each day of the week and for each type of service (Refuse Roll -off Boxes, Refuse compactors, and Organic Materials Roll -off Boxes) prepared from physical observation. Temporary accounts shall be excluded from the route audit. A report generated from Company's Customer records detailing all Customers organized by route and day of week and specifying the service address and type of service. A report of route audit findings identifying any variances between the physical audit and review of the Company's Customer records and the location of any substandard Company -provided Cart. The number of routes, Collection vehicles, stops for each day of the week and for each type of service (Refuse, Recycling, Organic Material, and other) and tonnage of each. Until such time as the Company exclusively services Palm Desert routes without merging with other jurisdictions routes audit shall also confirm that all routes are dedicated City of Palm Desert 79 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 exclusively to Palm Desert Customers and shall provide information exclusively related to Palm Desert Customers. 4.12 Service Exceptions; Hazardous Waste Notifications A. Failure to Collect. When Solid Waste is not Collected from any Customer, the Company shall notify the Customer in writing, at the time Collection is not made, through the use of a Container "tag' or otherwise, of the reasons why the Collection was not made through handwritten explanations or use of check boxes. In addition to providing a tag on the Container, Company shall contact the Customer to educate the Customer on the exact reason for non -Collection including providing. Logs of Container tags and reasons for non -Collection shall be provided to the City monthly. B. Hazardous Waste Inspection and Reporting. The Company reserves the right and has the duty under law to inspect Solid Waste put out for Collection and to reject Solid Waste observed to be contaminated with Hazardous Waste and the right not to Collect Hazardous Waste put out with Solid Waste. The Company shall notify all agencies with jurisdiction, if appropriate, including the California Department of Toxic Substances Control and Local Emergency Response Providers and the National Response Center of reportable quantities of Hazardous Waste, found or observed in Solid Waste anywhere within the City. In addition to other required notifications, if the Company observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Wastes unlawfully Disposed of or released on any City property, including storm drains, streets or other public rights of way, the Company will immediately notify the City Manager or their designee. C. Hazardous Waste Diversion Records. The Company shall maintain records showing the types and quantities, if any, of Hazardous Waste found in Solid Waste and which was inadvertently Collected from Customers within the City, but Diverted from landfilling. 4.13 Disaster Preparedness Plan Company shall work with City to develop a Disaster Debris Plan by July 1,2022. Both Parties shall review and update plan on an annual basis thereafter. The Plan should detailing, at minimum, how Refuse services will be delivered in a time of emergency or natural disaster. For the plan, City shall provide Company with a written list of critical Facilities being those Facilities that the City deems in need of special consideration in a time of emergency because they are critical to City's emergency response, of priority to the need of the community and/or represent a public health risk to the community. City of Palm Desert 80 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Company's written plan shall contain a protocol for contacting Company management in the event of an emergency, an overview of Company's resources available for emergency response, a plan for Collecting and disposing of Refuse generated by critical Facilities until the time of emergency passes and a plan for resuming normal operations following an emergency. 4.14 Dedicated Routes Company shall not commingle City Collection routes with other city or county routes. If this is not feasible, upon approval by the City, Company may commingle routes, but must submit to City a detailed monthly report setting forth the breakdown of tonnage Collected from the commingled routes within thirty (30) days after the end of each month. Company shall have the methodology used to segregate the loads between jurisdictions approved in advance by the City. City of Palm Desert 81 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 ARTICLE 5.OTHER SERVICES 5.1 Services and Customer Billing 5.1.1 Service Description Company shall annually, in May, prepare and distribute, subject to the direction of the City, a notice to each Customer listing the Company's Collection rates for services including the estimated adjustment for the upcoming July 1 rate adjustment), annual holiday schedule, Recycling and Organic Materials Collection programs offered, and a general summary of services required to be provided hereunder and optional services which may be furnished to the Customer by the Company. Such notice shall be in a form subject to the City's approval prior to its distribution. Notice may be included with Billings. The notice may also be included as part of the Company's public education plan described below in Section 5.3. 5.1.2 Billing 5.1.2.1 Comvanv Billine of Master -Billed Accounts Company shall invoice all Master -Billed Accounts Customers directly, excluding Customers in the Commercial Assessment District, for which the Company shall invoice the City. Master -Billed Accounts shall be billed in accordance with the rates established in Exhibit 3 and adjusted annually pursuant to Exhibit 4. Company shall design detailed billing formats to clearly and fully explain all charges to Customers. City must approve, and may alter, all billing formats. City's written approval is required prior to the Company charging, or agreeing to charge, a Customer rates other than those listed on the City -approved rate schedule. 5.1.2.2 Citv Tax Roll Billins of Individuallv Billed Residential Customers City shall Bill all Tax Roll Billing Accounts via the County tax roll at Company's expense. Company shall submit updated Residential Billing information to City on or before July 1 of each year of the Term. City shall review the information and request any additional data, changes, or additions as required. Annually, Company shall promptly provide such additional or revised information to City such that City can review the new information provided and meet the County due date of August 10 for submittal of the Residential Tax Roll Billing data. Company shall work with City and County staff as needed to ensure that all Billing information is complete, accurate, complaint with all Applicable Law, and received in a format that is acceptable to the City and to the County of Riverside. With respect to tax roll receipts received by the City, the City shall deduct from the payments due to Company the Franchise Fee amount and other fees owed to the City by the City of Palm Desert 82 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Company pursuant to Article 3 of this Agreement. The City shall remit the net portion due Company for each Rate Year in two (2) installments due within sixty (60) days of receipt of each tax bill installment payment from the County of Riverside. 5.1.2.3 Comvanv Billing of All Master -Billed Residential Dwelling_ Unit Customers, and Commercial and Industrial Customers Company shall bill all Master -Billed Residential Dwelling Unit Customers and Commercial and Industrial Customers, on a monthly basis, thirty (30) days in advance in accordance with the City's approved rate schedule. Commercial and Industrial Customers shall be billed based on the number and size of their Containers and frequency of Collection. Master Billed Residential Dwelling Units will be based on the number of units or Carts and the types of services provided. To start service new Customers will pay for one month's service in advance. Company may offer homeowners associations who are Master -Billed an eleven percent (11%) discount. 5. 1.2.4 Comvanv Billing of, Roll -off Box Customers In regard to the billing of Roll -off Box Customers and the collection of those bills: For Residential Premises Customers who request Roll -off Box service, the Company shall accept major credit cards for payment. Residential Premises Customers that do not use credit cards may be required by the Company to post a security deposit or pay on a "Cash on Delivery" (C. O. D.) basis. Any unused portion of a security deposit shall be refunded to the Customer within five (5) Working Days of the termination of service. For all other Roll -off Box Customers, the Company shall invoice monthly or semi- monthly in arrears with payment due within fifteen (15) or thirty (30) days from the invoice date (i.e., the beginning of the month or the inception of service). Company may require a security deposit from Customers for temporary Roll -off Boxes, with the unused portion refunded to the Customer within five (5) Working Days of the termination of service. 5.1.2.5 Citv Tax Roll Billing of Commercial Assessment District The City shall Bill Customers within the Commercial Assessment District on the tax roll according to the approved rate schedule. The Company shall Bill the City for such accounts and otherwise handle accounts as Commercial Customers. 5.1.2.6 Temvorary Susvension of Service Residential Can and Cart Customers may suspend service for a total of four (4) months, split into either one request for a total of four (4) consecutive months or two (2) requests City of Palm Desert 83 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 with each request being a maximum of two (2) consecutive months during which the Customer is not residing at the Residential Premises. Service may also be suspended due to non-payment. The re -start fee after any suspension of service or stop service would be due as per the rate schedule. The re -start fee does not apply to a Customer establishing service at a new address, but only when service has been suspended and restarted at the same location by the same Customer. 5.1. 2.7 Application of Contamination Surcharges In accordance with Section 5.5.2, the Company shall assess contamination Processing fees on Customers with repeated occurrences of excess contamination with photo evidence. Any contamination Processing fees to be assessed for a Customer shall be included and itemized on the Customer's invoice for the billing period in which the Company notified the Customer of the assessment of the contamination Processing fee. 5.1.2.8 Universal Subscription for Master -Billed Accounts Commencing within six (6) months of the effective date of a City Ordinance mandating subscription with Recyclables and Organic Materials Collection Services, upon such time that City requires that Generators are enrolled in Recyclable and Organic Material Collection services, Company shall assist the City in ensuring that the enrollment of Generators occurs in a timely and efficient manner. In.accordance with record keeping and reporting, Company shall maintain records and provide reports necessary for the City to verify the enrollment of Generators. At least annually thereafter, Company shall provide reports on the Generators' service level and list of non -enrolled Generators, and other information necessary for the City to verify the universal enrollment of Generators. 5.1.3 Review of Billings The Company shall review its Billings to Customers under Section 5.1.2. The purpose of the review is to determine that the amount that the Company is billing each Customer is correct in terms of the level of service being provided to such Customer by the Company. The Company shall review Customer accounts annually, and submit to the City a written report of that review annually on the anniversary of the Effective Day of this Agreement. The Company shall maintain copies of said Billings and receipts, each in chronological order, for a period of five (5) years after the date of service for inspection by the City upon request. The Company may, at its option, maintain those records in computer form, on microfiche, or in any other manner, provided that the records can be preserved and retrieved for inspection and verification in a timely manner, are sufficient to verify accuracy of Franchise Fees and/or other fees owed to the City, and may be produced in City of Palm Desert 84 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 a form and manner sufficient to establish the existence of Customer obligations in a court of competent jurisdiction. 5.2 Customer Service 5.2.1 Office Hours Company shall provide an office within Coachella Valley, and office hours shall be, at a minimum, from 8:00 A.M. to 5:00 P.M., Monday through Friday, excluding holidays. A responsible and qualified representative of the Company shall be available during office hours for communication with the public at the office. Normal office hour telephone numbers shall be a toll -free call. The Company's telephone system shall be adequate to handle the volume of calls typically experienced on the busiest days, with a maximum hold time of three (3) minutes for Customers of the City of Palm Desert. Automated telephone answering systems with menu -driven options must provide callers with an option to connect to a live operator. Phone answering staff shall be competent to handle questions on City's specific programs and be able to easily identify Customers that reside in Palm Desert versus County unincorporated areas such and Sun City. The Company shall also maintain a toll -free telephone number for use during other than normal business hours. The Company shall have a representative, answering or message providing/receiving (voicemail) service available at said,after-hours telephone number. After-hours calls shall be responded to on the next Working Day. Company shall provide the City staff with the phone number of a live Person who may be reached twenty-four 24) hours a day. 5.2.2 Complaint Documentation All service complaints shall be directed to the Company. Daily logs of complaints concerning Collection of Solid Waste, Recyclable Materials and Organic Materials shall be retained for a minimum of twenty-four (24) months and shall be available to the City at all times upon request. The Company shall log all complaints received by telephone and said log shall include the date and time the complaint was received, name, address and telephone number of caller, description of complaint, employee recording complaint and the action taken by the Company to respond to and remedy complaint. All written Customer complaints and inquiries shall be date -stamped when received. All complaints shall be initially responded to within one (1) Working Day of receipt. The Company shall log action taken by the Company to respond to and remedy all complaints. All Customer service records and logs kept by the Company shall be available to the City upon request and at no cost to the City. Company shall supply the City, within seven (7) City of Palm Desert 85 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 days of written notice, copies of all complaints on a form approved by the City and indicate the disposition of each. The City shall, at any time during regular the Company business hours, have access to the Company's Customer service department for purposes that may include monitoring the quality of Customer service or researching Customer complaints. For complaints received in which the Person alleges that an entity is in violation of SB 1383 Regulations, Company shall document the information listed in Section 8.3.2. Company shall provide this information in a brief complaint report to the City for each SB 1383-noncompliance complaint within seven (7) calendar days of receipt of such complaint, and a monthly summary report of SB 1383-noncompliance complaints in accordance with Section 8.3.2. 5.2.3 Missed or Requested Pick-ups In case of a missed pick-up of Refuse, Recyclable Material, or Organic Materials, Company shall Collect the Refuse, Recyclable Material, or Organic Materials from the Customer within one (1) Working Day. Missed pick-ups shall be logged and reported under Section 8.3.2. Requested pick-ups due to Bins filling up prior to normal Collection shall also be responded to within twenty-four (24) hours and logged and reported under Section 8.3. Company can charge for additional Customer requested pick-ups in accordance with the approved rate schedule. 5.2.4 Resolution of Customer Complaints Disputes between the Company and its Customers regarding the services provided in accordance with this Agreement may be resolved by the City. The City's decision shall be final and binding. Should Company and Customers not be able to establish a mutually acceptable fee to be charged for special hauling services, the matter shall also be determined by the City, whose written approval is required for any charges that deviate from the rate schedules, and the City's decision shall be final. Intervention by the City is not a condition precedent to any rights or remedies third parties might otherwise have in any dispute with Company. Nothing in this Section is intended to affect the remedies of third parties against the Company. To the extent that remedies are warranted through this Agreement, this shall apply. 5.2.5 Investigation of SB 1383-Noncompliance Complaints City, or its designee, shall be responsible for investigating complaints received by the City that an entity may not be compliant with SB 1383 Regulations. Within two (2) days City of Palm Desert 86 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 of the City's or its agent's request, Company shall provide City or its agent with the Customer's then -current Service level information and other documentation that may be useful in the investigation, such as records of the Customer's two (2) most recent change(s) in service level and other Customer service records. 5. 2. 6 Government Liaison The Company shall designate in writing a "Government. Liaison" to work with the City and/or the City's designated representative(s) on contractual matters and to resolve Customer complaints. Liaison shall be well versed in City's programs. City shall be able to contact liaison via e-mail. City shall have the right to approve the Company's choice for a liaison and shall be notified in writing of relevant personnel changes. 5.2.7 On-line Customer Account Viewing Capabilities The Company shall provide all Customers with on-line access to their account, including detailed Billing information and the ability to make payments on-line. Upon City request, Company shall provide City with requested Customer data from Company's billing system in electronic form on computer disks or other portable storage device. Alternatively, other methods of monitoring account information that are pre -approved by the City are acceptable. 5. 3 Education and Public Awareness 5.3.1 General Company acknowledges and agrees that education and public awareness are critical, key and essential elements of any efforts to achieve AB 939 goals, SB 1383 Regulations, and compliance with other Applicable Law. Accordingly, the Company agrees to implement a public education program to educate; expand, and enhance the public's awareness of reducing, reusing and Recycling properly. In addition, Company agrees to include public education on source reduction of household Solid Waste. Company and City shall work cooperatively in this regard. Company shall designate in writing a representative that will serve as the liaison responsible for coordinating the public education plan and its corresponding activities. Company shall submit the public education program for approval by the City prior to the Effective Date of the Agreement. The approved public education program shall be incorporated as Exhibit 2 into this Agreement. Company shall maintain its own program of providing information relevant to billing and Solid Waste services, issues and needs, to Customers. All public education materials shall be approved in advance by City. All printed materials shall be printed on Recycled paper wherever possible. City of Palm Desert 87 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 City may require the Company to perform mailing services. City will provide not less than thirty (30) days notice to the Company prior to the mailing date of any proposed mailing to permit the Company to make appropriate arrangements for inclusion of the City's materials. The City will provide the Company the mailers at least fifteen (15) days prior to the mailing date. The City shall normally bear the expense of reproduction and distribution of such additional information only to the extent it is clearly in excess of the Company's normal Billing costs and represents services beyond the approved public education plan. The Company shall make all public education and outreach materials required by this Section available in English and Spanish. Upon City request, Company shall provide materials in additional languages beyond those specified in this Section in response to shifting demographics within the City; or updates to State requirements or Applicable Law. The Company may allow Customers to request mailings electronically in lieu of hardcopies. Company shall be required to provide an annual report to the City of Customers that have requested to receive mailings electronically. Customers will be provided the option to request electronic mailings annually. Company will provide a minimum of the following public education items to be developed and distributed at Company's expense, subject to the City's review and approval before distribution: Annual Notice of Requirements. Not less than once per year during each Rate Year, Company shall prepare and distribute to each Generator in the City a mailing that includes information specified in SB 1383 (14 CCR Section 18985.1(a). Such mailer shall be distributed by Company to all Residential and Commercial mailing addresses, including individual Multi -Family Dwelling Units. Biennial Brochure — Company shall work with City to create biennial brochure to City's criteria that shall be in English and Spanish and mailed to both Residential and Commercial Customers. Creation and distribution shall be at Company's expense. Inserts in City Newsletter by Company — Company is responsible for sending providing inserts/notices promoting and explaining programs such as, but not limited to, and Collection schedules regulatory requirements (Including AB 341, AB 1826, AB 827, and SB 1383) contamination awareness, Food Recovery, source reduction tips, and other related topics deemed appropriate by City at least four (4) times per year to all Customers, with City's review and approval of the materials. Through these and other notices sent by the Company and approved by the City, Customers shall be notified of upcoming events such as Household Hazardous City of Palm Desert 88 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement Waste round -ups and other events not serviced under this Contract, as requested by the City. Bill Notices by Company — Company is responsible for including notices promoting and explaining programs, contamination awareness, legislative requirements, and other topics mutually agreed upon by City and Company to all Company Billed Customers, with City's review and approval of notices. Corrective Action Notice — For use in instances where the Customer sets out inappropriate materials as specified in Section 5.5. 2.C. Public Service Announcements — Company shall produce and distribute one (1) public service announcements per year to advertise such events as, for example, Annual Cleanup per Section 4.5.1 or holiday tree Recycling. Such announcements shall be 1/8 of a page in size. Circulation shall be at the discretion of the City. Annual Neighborhood Cleanup Insert - Company shall produce once annually for inclusion in the City's April issue of the BrightSide Newsletter. Website — Website page dedicated to City services, schedules and programs for City Customers to access. Website shall include Company Customer service contact information and Recycling programs and education. Company is responsible for having a link on the City website directing inquiries to Company's website. Truck Signs — Company will fit trucks with the required equipment to place truck signs. Company will cover cost to change sign once annually. If the City requests additional signs during any Agreement year, the additional sign is to be paid for by the City. Residential Food Waste Program Implementation — Beginning upon the effective date of the agreement, Company shall conduct an education campaign (as outlined in Exhibit 2) focused on informing Customers of the Collection program changes in connection with the Residential Food Waste program on July 1, 2022. At a minimum, Company shall perform these services in a manner that complies with requirements of 14 CCR, Division 7, Chapter 12, Article 4. Additionally, Company shall develop and distribute an initial mailer to each Residential dwelling unit that includes a "how-to" flyer describing how to properly set out material. All brochures, mailings, and other educational materials shall bear the City logo, unless otherwise approved by the City. All Residential dwelling units, including Multi -Family and Master -Billed Customers, shall directly receive mailings from Company. It is not sufficient to send information to the Billing address of record. 5.3.2 Use of Advertising Agency Company may hire an advertising agency to assist in the development of certain public education materials. These include, at a minimum, materials on: City of Palm Desert 89 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 a) City's Annual Customer Brochure; b) City's Annual Neighborhood Cleanup Flier; If approved by the City in advance, Company may use internal resources rather than an outside agency to produce other materials as needed and/or directed by the City. However, if the City requires Company to hire an advertising agency, the City and Company will in good faith negotiate cost to both Parties up to an amount not exceeding fifty thousand dollars ($50,000). 5.3.3 Community Events At the direction of the City, the Company shall participate in and promote Recycling and Organic Materials Collection and other Diversion techniques at community meetings, special events, and other local activities. Such participation would normally include providing, without cost to City, provision of educational information promoting the goals of the City's Solid Waste Diversion or Recycling, Organic Materials, and Edible Food Recovery programs, and provision of guest speakers at meetings. 5.3.4 Field Representative Company shall designate in writing one or more field representatives who will contact each Commercial, Multi -Family Premises, and Master -Billed Residential account at least once per year to solicit feedback about current Collection services and modify Collection programs and Customer service levels where appropriate. Recyclable Materials and Organic Materials Collection programs must be re -offered by Company at least once per year. Company shall maintain a log of such contacts and submit it to the City monthly. Field representative(s) shall attend meetings at a minimum of one (1) time per year with civic groups, homeowners' associations, and building managers at apartment complexes and Commercial businesses to promote and explain Recycling, Organic Materials, and other Solid Waste programs and education Tier One and Tier Two Commercial Edible Food Generators on SB 1383 Regulations for Edible Food Recovery. Company shall maintain a log of such contacts and group visits and submit it to the City quarterly. Field representative and the Recycling coordinator, as specified in the following Section, may be the same individual from the Company. 5.3.5 Recycling Coordinator Company shall provide a Recycling coordinator to: a) be a liaison between the Company's Refuse, Recycling, and Organic Materials City of Palm Desert 90 March 10, 2022 City of Palm Desert Contract No. C42860 operations and the City; Franchise Agreement b) formulate, communicate, and coordinate public education campaigns; c) produce educational material regarding all Collection programs being implemented by the City; d) develop an annual calendar of milestones to be submitted by December 15th prior to the start of each calendar year for City to review and approve (sample milestone calendar attached as Exhibit 9) and be responsible for informing the public of events and deadlines; and, e) assist in preparing grants that enhance public education in regards to Refuse, Recyclable Materials, and Organic Materials Collection, source reduction, and Diversion activities as stated in the Public Education and Outreach Plan in Exhibit 2. Recycling coordinator and field representative, as specified in Section 5.3.4, may be the same individual from the Company. 5.4 Discarded Materials Characterization and Capacity Planning Studies The Company acknowledges that the City may be required to perform or may choose to perform Recyclable Materials, Organic Materials, and Refuse characterization studies periodically to support compliance or fulfillment of AB 939, SB 1383, or other Diversion goals or requirements. The Company agrees to participate and cooperate with the City and its agents and to accomplish such studies at no additional cost the City. The Company acknowledges that the City is required by SB 1383 to coordinate with the County and participate in Organic Waste and Edible Food Recovery capacity planning studies. The Company shall participate and/or provide information to the City as needed for the City's participation in such capacity planning studies. This information and/or participation may include, but is not limited to: conducting or supporting waste characterization studies; providing information regarding existing and potential new or expanded capacity in the Company's operations for the Collection, Transport, transfer, or Processing of Source Separated Recyclable Materials and Source Separated Organic Materials; and, any other information deemed necessary by the City or County for purposes of the study. The Company shall respond to requests for information or participation from the City within thirty (30) days, unless another timeframe is otherwise specified or authorized by the City. City of Palm Desert 91 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 5. 5 Other SB 1383 Company Requirements 5.5.1 Generator Waiver Program Coordination Generators may submit requests for de minimis waivers, and physical space waivers to the Company. Company shall, within ten (10) Workings Days, review the Generator's waiver application and inspect the Generator's Premises to verify the accuracy of the application. Company shall provide documentation of the inspection, including the Company's recommendation to approve or deny the waiver request, and send this information to the City within thirty (30) days of receipt of the Generator's waiver application for the City's review and approval. The City ultimately retains the right to approve or deny any application, regardless of the Company's recommendation. Company shall report information regarding waivers reviewed on a monthly basis, in accordance with Section 8.3.2.G In accordance with this Section 5.5.1, Company shall verify Commercial Generator de minimis and physical space constraint waivers, if applicable, at least once every five (5) years from the date of issuance of the waiver, and verify Collection frequency waivers at least frequent enough to comply with the SB 1383 Regulations. 5.5.2 Contamination Monitoring 5.5.2.1 Contamination Monitoring Procedures A. General. This Section presents contamination inspection method(s) to be used by the Company in conducting contamination monitoring required under Section 5.5.2. Company must implement the below method to meet the contamination monitoring requirements of this Section 5.5.2: B. Container Inspection Methods. 1. Waste Evaluation Monitoring by Company. Company shall, at its sole expense, conduct waste evaluations that comply with the requirements of this Section and meet the requirements of 14 CCR Section 18984.5(c). The City maintains the right to observe, or hire a third party to observe, the waste evaluations. Company shall, no later than January 15 of each calendar year, provide the City with a proposed waste evaluation methodology and a schedule of waste evaluations for the calendar year for review and approval by City. The City may request, and Company shall accept, modifications to the schedule to permit observation by the City or City's third -party designee. In addition, Company shall provide an email notice to the City no less than ten (10) Working Days prior to each scheduled waste evaluation study that includes the specific time(s) and location(s) for the waste evaluation study. If City of Palm Desert 92 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 City requests to attend a waste evaluation study, Company and City shall work together to schedule a time for City staff or designee to attend. C. Actions upon Identification of Prohibited Container Contaminants. 1. Record Keeoine. The driver or other Company representative shall record each event of identification of Prohibited Container Contaminants in a written log or in the on -board computer system including date, time, Customer's address, type of Container; and maintain photographic evidence, if required. Company shall submit this record to the Company's Customer service department, and Company's Customer service department shall update the Customer's account record to note the event, if the documentation of the on- board computer system did not automatically update the Customer's account record. 2. Identification of Excluded Waste. If Company's personnel observe Excluded Waste in an uncollected Container, the Company's personnel shall issue a non -Collection notice for this Container in accordance with Section 5.5.2.1.C.5 and shall not Collect the Discarded Materials that contain Excluded Waste. Company's personnel shall record that observation and immediately inform their route supervisor. Company shall follow protocols specified this Section. The route supervisor shall investigate and initiate applicable action within one 1) Working Day or sooner if the Hazardous Waste may cause immediate danger. 3. Courtesv Pick-Uo Notices. Upon identification of Prohibited Container Contaminants in a Customer's Container, Company shall provide the Customer a courtesy pick-up notice. The courtesy pick-up notification shall: i) inform the Customer of the observed presence of Prohibited Container Contaminants; (ii) include the date and time the Prohibited Container Contaminants were observed; (iii) include information on the Customer's requirement to properly separate materials into the appropriate Containers, and the accepted and prohibited materials for Collection in the specified Container; (iv) inform the Customer of the courtesy pick-up of the contaminated materials on this occasion with information that following three 3) instances Company may assess contamination fees or issue a non - Collection notice; and, (v) shall include photographic evidence. Company shall leave the courtesy pick-up notice attached to or adhered to the Generators' contaminated Containers; at the Premises' door or gate; or, subject to City's approval, may deliver the notice by mail, e-mail, or text message. Company shall Collect the contaminated Container and Transport the City of Palm Desert 93 1March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 material to the appropriate Approved Facility for Processing; or, Company may Collect the contaminated materials with Refuse Container and Transport the contaminated materials to the appropriate Approved Facility for Disposal or Processing. 4. Notice of Assessment of Contamination Processine Fees. If the Company observes twenty percent (20%) or more Prohibited Container Contaminants in a Generator's Green Container or Blue Container on more than three (3) occasions in a three (3) month period and issued courtesy pick-up notices on each of those occasions, the Company may impose a contamination Processing fee of as listed in the approved rate schedule. Company shall notify the City in its monthly report of Customers for which contamination Processing fees were assessed. Company shall leave a contamination Processing fee notice attached to or adhered to the Generators' contaminated Containers; at the Premises' door or gate; or, subject to City's approval, may deliver the notice by mail, e-mail or text message. The contamination Processing fee notice shall describe the specific material(s) of issue, explain how to correct future set outs, and indicate that the Customer will be charged a contamination Processing fee on its next bill. The format of the contamination Processing fee notice shall be approved by the City Agreement Manager. City may waive any contamination fees issued by Company. Company shall Collect the contaminated Container and Transport the material to the appropriate Approved Facility for Processing. To ensure that assessment of fees are to be used for the intended purposes and not as a form of revenue generation, Company agrees that Contamination fees shall not exceed one percent (1%) of Company's Gross Receipts in any calendar quarter. In the event that Contamination fees exceed one percent 1%) of Company's Gross Receipts in any calendar quarter, the assessment of Contamination fees shall be suspended immediately and indefinitely pending a program assessment by the City and Company. Upon program suspension or at the request of the City at any time during the Term of the Agreement, City and Company shall meet and confer regarding the application and effectiveness of Contamination fees in accomplishing the behavior change. If the program is suspended due to excessive revenue generation, the City may require Company to either: i) modify the program parameters; ii) modify the amount of the Contamination fee; or, iii) return to the City any funds generated by the Contamination fee which exceed one percent (1%) of Company's Gross Receipts for a given period of time. City of Palm Desert 94 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement 5. Non -Collection Notices. Upon identification of Prohibited Container Contaminants in a Container in excess of standards agreed upon by the Parties or Excluded Waste, Company shall provide a non -Collection notice to the Generator. The non -Collection notice shall, at a minimum: (i) inform the Customer of the reason(s) for non -Collection; (ii) include the date and time the notice was left or issued; (iii) describe the premium charge to Customer for Company to return and Collect the Container after Customer removes the Contamination; and, (iv) provide a warning statement that a contamination Processing fee may be assessed if Prohibited Container Contaminations are observed on more than three (3) occasions. The non -Collection notice shall include photographic evidence of the violation(s). The Company's notice of non -Collection may be left attached to or adhered to the Generator's Container, or at the Premises' door or gate at the time the violation occurs, or subject to City's approval, may be delivered by mail, e- mail, or text message. Company shall submit a sample of its non -Collection notice to the City Manager or their designee for approval prior to implementing use of it with Customers. 6. Communications with Customer. Whenever a Container at the Premises of a Commercial or a Multi -Family Customer is not Collected, Company shall contact the Customer on the scheduled Collection day or within twenty-four 24) hours of the scheduled Collection day by telephone, email, text message, or other verbal or electronic message to explain why the Container was not Collected. Whenever a Container is not Collected because of Prohibited Container Contaminants, a Customer service representative shall contact the Customer to discuss, and encourage the Customer to adopt proper Discarded Materials preparation and separation procedures. 7. Comoanv Return for Collection. Upon request from Customer, Company shall Collect Containers that received non -Collection notices within one (1) Working Day of Customer's request if the request is made at least two (2) Working Days prior to the regularly scheduled Collection Day. Company shall bill Customer for the extra Collection service event ("extra pick-up") at the applicable City -approved rates only if Company notifies Customer of the premium rate for this service at the time the request is made by Customer. D. Disposal of Contaminated Materials. If the Company observes visible Prohibited Container Contaminants in a Generator's Organics Container or Recycling City of Palm Desert 95 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Container, Company may Dispose of the Container's contents provided Company complies with the noticing requirements in Section 5.5.2.1.C.5 above. 5.5.2.2 Ongoing Contamination Monitoring Route Personnel Monitoring. Company shall assist on an ongoing basis in minimizing contamination by helping to educate Customers on acceptable and non -acceptable materials through ongoing education and outreach efforts and through on -going monitoring of the contents of Collection Containers. The ongoing Container monitoring shall be performed by Company using the method described in Section 5.5.2.1. 5. 5.2.3 Comnanv Ongoing Contamination Monitoring 5.5.2.3.1. Methodoloav and Freauencv Commencing upon the effective date of this Agreement, Company shall, at its sole expense, conduct waste evaluations that comply with the requirements of this Section and meet the requirements of 14 CCR Section 18984.5(c). The City maintains the right to observe, or hire a third party to observe, the waste evaluation studies. The City may request and Company shall accept modifications to the schedule to permit observation by the City. In addition, Company shall provide an email notice to the City no less than ten (10) Working Days prior to each scheduled waste evaluation study that includes the specific time(s). If City requests to attend a waste evaluation study, Company and City shall work together to schedule a time for City staff or designee to attend. The Company shall conduct waste evaluation studies at least twice per year and the studies shall occur in two distinct seasons of the year. The waste evaluation studies shall include samples from each Container type served by the Company (i.e., Source Separated Recyclable Materials, Source Separated Organic Materials, and Solid Waste) and shall include samples taken from different areas in the City that are representative of the City's waste stream. The study shall include a minimum of forty (40) samples per route. The Company shall Transport all of the material Collected for sampling to a sorting area at the Approved Facility, where the presence of Prohibited Container Contaminants for each Container type shall be measured to determine the ratio of Prohibited Container Contaminants present in each material stream by weight. To determine the ratio of Prohibited Container Contaminants, the Company shall use the following protocol: A. The Company shall take one sample of at least a 200 pounds from the material Collected from each material stream for sampling. For example, Company shall take a 200-pound sample taken from the combined contents of the Source Separated Organic Materials Container samples. City of Palm Desert 96 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 B. The 200-pound sample shall be randomly selected from different areas of the pile of Collected material for that material stream. C. For each 200-pound sample, the Company shall remove any Prohibited Container Contaminants and determine the weight of Prohibited Container Contaminants. D. The Company shall determine the ratio of Prohibited Container Contaminants in the sample by dividing the total weight of Prohibited Container Contaminants by the total weight of the sample. E. All weights shall be recorded in pounds. F. The Facility, scales, and weighing process used for the study shall ,meet the standards of Section 8.4 of Exhibit 8. 5.5.2.3.2 Contamination Response If the sampled weight of Prohibited Container Contaminants exceeds twenty-five percent 25%) of the measured sample for any material stream, the Company shall notify the City within fifteen (15) Working Days of the waste evaluation. Company shall perform either of the following options if the weight exceeds the twenty-five percent (25%) weight threshold. Option 1: Within fifteen (15) Working Days of the waste evaluation, notify all Generators on the sampled hauler route of their requirement to properly separate materials into the appropriate Containers. The Company may provide this informationby placing a written notice on the Generators' Containers or the gate or door of the Premises; and/or by mailing, emailing, or texting the notice to the Generators. The format of the warning notice shall be approved by the City. Option 2: Within fifteen (15) Working Days of the waste evaluation, perform a targeted hauler route review of Containers on the hauler route sampled for waste composition studies to determine the sources of contamination and notify those Generators of their obligation to properly separate materials. The Company may provide this information to these Generators by placing a written notice on the Generators' Containers or the gate or door of the Premises; and/or by mailing, e-mailing, or texting education notices to the applicable Generators. The format of the warning notice shall be approved by the City. 5.5.2.3.3. Noticins of Generators with Contamination. Non -Collection, and Disposal of Materials Upon finding Prohibited Container Contaminants in a Container, Company shall follow the contamination noticing procedures and contaminated Container handling protocols set forth in Sections 5.5.2.1.C. City of Palm Desert 97 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 5.5.2.3.4. Monthly Reportine Reauirements. Company shall maintain records and report to the City monthly on contamination monitoring activities and actions taken, in accordance with Article 8. 5. 5.3 Inspection and Enforcement Company Performance of Compliance Reviews The Company shall complete a compliance review of all Multi -Family and Commercial Customers that generate two (2) cubic yards or more per week of Solid Waste, including Organic Waste to determine their compliance with: (i) Generator requirements under the City's Discarded Materials Collection program; and, (d) if applicable for the Generator, if Self -Haul is allowed) Self -Hauling requirements pursuant to 14 CCR Section 18988.3, including whether a Commercial Business is complying through Back -Hauling Organic Materials. The compliance review shall mean a "desk" review of records to determine Customers' compliance with the above requirements and does not necessarily require on - site observation of service; however, the City may request that the Company perform an on -site observation of service in addition to or in lieu of the desk review if needed to obtain the required information. a) Number of Reviews. The Company shall conduct a sufficient number of compliance reviews, Hauler Route reviews, and inspections of Generators, to adequately determine the Generators' overall compliance with SB 1383, AB 1826, and AB 341. Company shall propose the number of reviews in total and/or for each review type and the timeframe to achieve regulatory compliance as part of the annual education plan. City reserves the right to require additional inspections, if the City determines that the amount of inspections conducted by the Company is insufficient. City may require the Company to prioritize inspections of entities that the City determines are more likely to be out of compliance. b) Non -Compliant Entities. From January 1, 2022 through December 31, 2023, when compliance reviews are performed by Company pursuant to Section 5.5.3, Company shall provide educational materials in response to violations. Company shall provide these educational materials to the non -compliant Customers and Generators within ten (10) Business Days of determination of non-compliance or immediately upon determination of non-compliance if such non-compliance is determined during an inspection or Hauler Route review. Company shall document the non -compliant Customers and Generators and the date and type of education materials provided, and report such information to the City in accordance with Section 8.3. Beginning January 1, 2024, the Company shall document non -compliant Customers and Generators determined through City of Palm Desert 98 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement Company's compliance reviews pursuant to Section 8.3, and shall report all Customers and Generators with SB 1383 violations to the City in accordance with Section 8.3. The City shall be responsible for subsequent enforcement action against the Generators. c) Documentation of Inspection Actions. The Company shall generate a written and/or electronic record and maintain documentation for each inspection, Hauler Route review, and compliance review conducted, including the information described Section 8.3. 5.6 Food Recovery Assistance Commencing January 1, 2022 and at least annually thereafter, Company shall cooperate with City and/or its consultants to conduct inspections of Tier One Commercial Edible Food Generators, Food Recovery Organizations, and Food Recovery Services to assess compliance with the requirements of 14 CCR Chapter 12 Article 10. Commencing January 1, 2024 and at least annually thereafter, Company shall expand its assistance to include Tier Two Commercial Edible Food Generators. At least annually, the Company shall provide Commercial Edible Food Generators with the following information: Information about the County's and/or City's Edible Food Recovery program; Information about the Commercial Edible Food Generator requirements under 14 CCR Chapter 12 Article 10; Information about Food Recovery Organizations and Food Recovery Services operating within the City, and where a list of those Food Recovery Organizations and Food Recovery Services can be found; and, Information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste. The Company may provide the information required by this Section by including it with regularly scheduled notices, newsletters, education materials, billing inserts, or other information disseminated to Commercial Businesses so long as the information above is distributed to the required entities at least once annually. Company shall cooperate with the implementation, expansion, or operation of Food Recovery efforts in the City, Food Recovery Organizations, and/or Food Recovery Services. City of Palm Desert 99 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 5.7 Universal Enrollment Monitoring Company shall assist the City in ensuring that the enrollment of Generators in the City's Collection program occurs in a timely and efficient manner. In accordance with Section 8.3, Company shall maintain records and provide reports necessary for the City to verify the enrollment of Generators. At least one (1) time per year, Company shall reconcile and confirm universal enrollment of Generators by comparing its Customer list to parcel information and calculating the percentage of total Generators enrolled in City's Collection program. As part of this analysis, Company shall provide the City with a summary of any discrepancies found between the Customer list and parcel information, including the names and addresses of all Generators that were found to be the subject of a discrepancy. Company shall also provide a list of Generators that are not enrolled in the City's Collection program due to the provision and approval of a waiver pursuant to Section 5.5.1, including the name, address, and type of waiver for each Generator. In accordance with Section 8.3, Company shall maintain records and provide reports on the Generators' service level and list of non -enrolled Generators, and other information necessary for the City to verify the universal enrollment of Generators. City of Palm Desert 100 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 ARTICLE 6. COMPANY COMPENSATION AND RATES 6. 1 General The Company Compensation provided for in this Article shall be the full, entire and complete compensation due to the Company pursuant to this Contract for all labor, equipment, materials and supplies, taxes, insurance, bonds, overhead, Processing, Disposal, transfer, profit and all other things necessary to perform all the services required and reasonably anticipated by this Agreement in the manner and at the times prescribed. The Company will perform the responsibilities and duties described in this Agreement in consideration of the right to receive compensation for services rendered at maximum rates fixed by the City from time -to -time. The City and the Company agree that the Company will retain any proceeds from the sale of Recyclable Materials and Organic Materials. 6.2 Rates The rates through June 30, 2023 shall not exceed those set forth in Exhibit 3, unless amended by a written amendment to this Agreement entered into by and between the City and the Company. Unless and until the rates set forth on Exhibit 3 are adjusted, the Company will provide the services required by this Agreement, charging no more than the rates authorized by Exhibit 3, except as provided herein and in Sections 6.3 and 6.5. 6. 3 Schedule of Future Adjustments Subject to the limitations set forth in Section 6.4, beginning July 1, 2023 and for all subsequent Rate Years, the Company may request an annual adjustment to the rates shown in Exhibit 3. The Company shall submit its request in writing, to be received by the City in person or via certified mail, at least ninety (90) days prior to the start of the new Rate Year based on the method of adjustment described in Section 6.4. Failure to submit a written request at least ninety (90) days prior to the start of the new Rate Year shall result in the Company waiving the right to request such an increase for the new Rate Year. 6.4 Method of Adjustments 6.4.1 General Pursuant to Section 6.3, the Company may request an annual adjustment to the rates according to the method described below and the formulas shown in Exhibits 4A, 413, and City of Palm Desert 101 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 4C, subject to review and approval of the City. All future adjustments are to be effective July 1, and shall be based on the rates in Exhibit 3 and calculations in Exhibit 4. In addition, all other fees associated with other services shall be included within Exhibit 3 e.g., locking Bin rate, Roll -off Box rate, temporary service rate, two -tiered C&D Debris rate). 6.4.1.1 Compliance with Proposition 218 If required by Applicable Law or if City voluntarily wishes to subject a rate increase to the procedural requirements of Proposition 218, all increases in the maximum rates shall be conditioned upon the successfully completion of the majority protest process, other applicable procedural requirements, and the absence of related legal challenges. The cost of all printing, copying and mailing notices related to such procedural requirements shall be Company's sole responsibility. 6.4.1.2 Proposition 218 Protest Agreement Remedv In the event that Company is unable to increase the maximum rates due to the procedural requirements of Section 6.4.1. 1, City and Company agree to negotiate in good faith, for a period not to exceed sixty (60) days, a reduction in services or other Agreement requirements that would offset the amount of the rate increase that would otherwise be paid to Company. In the event that City and Company cannot reach an agreement on revised terms, then Company may either: 1) accept that the rate will remain at the rates in effect prior to the requested rate increase, or 2) submit in writing to the City its intent to terminate the Agreement. A request to terminate the Agreement under this Section would require a two-year advance written notice and must be submitted within 90 days of the denial of the rate increase request. This right to terminate does not apply to rate adjustments requested under Section 6.5 or any other Section of this Agreement, or for any other reason other than requests under Section 6.3. 6.4.2 Residential and Commercial Rates Subject to the requirements of Sections 6.4.1. 1 and 6.4.1.2, maximum rates shall be adjusted according to the following procedures except for Roll -off Box rates which shall be adjusted in accordance with Section 6.4.3. Example calculations are shown in Exhibit 4A for Residential rates and Exhibit 4B for Commercial rates. Step One — Determine the rate revenue net of City fees by deducting the City fees portion from actual gross rate revenues for the twelve-month period ending on the date six months prior to the effective date of the rate adjustment. City of Palm Desert 102 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Step Two — Determine the proportionate share of the Disposal fee component, and the service component of the rate revenue net of City fees. Step Three — Calculate the percentage change in the Garbage and Trash Collection Index GTCI) in U.S. city average, all urban consumers, not seasonally adjusted CUUROOOOSEHG02) and the percent change in the Refuse Disposal tipping fee per ton. The change in the GTCI shall be for the twelve-month period ending six months prior to the effective date of the rate adjustment and the allowable portion used for the rate adjustment shall be equal to 100% of the change in the GTCI and capped at a 5% increase Note: Change in GTCI in excess of 5% will not be carried over in the following year). The change in the Refuse Disposal tipping fee shall be based on the change between the most recent tipping fee on which rates are based and the new tipping fee; provided, however, if the Company owns the Disposal Site, the annual change in the Disposal tipping fee shall not exceed the annual change in the GTCI. Step Four — Calculate the weighted percent change in maximum rates by: 1. Multiplying the Refuse Disposal component as a percent of rate revenue net of City fees by the percent change in the Refuse Disposal tipping fee; 2. Multiplying the service component as a percent of rate revenue net of City fees by 100% of the percent change in the GTCI and capped at 5% (Note: Change in GTCI in excess of 5% shall not be carried over in following year); and, 3. Adding the results of 1 and 2 above to determine the weighted percent change in rates. Step Five — Multiply the current monthly rates by weighted rate adjustment percentage to determine the amount of the rate adjustment. 6.4.3 Roll -off Box and Other Services Rates Subject to the requirements of Sections 6.4.1. 1 and 6.4.1.2, maximum load charges, delivery charges, overweight charges for Roll -off Box Customers, and other services shall be adjusted according to the following procedures and the example calculations shown in Exhibit 4C. Step One — Calculate the percent change in the GTCI for the twelve-month period for the most recent twelve months ending on the most recent Dec. 31. Multiply the percentage change in the GTCI by 100% and capped at 5% (Note: Change in GTCI in excess of 5% will not be carried over in the following year) to determine the rate adjustment percent change. City of Palm Desert 103 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Step Two — Multiply the rate adjustment percent change by current rates to determine the amount of the rate adjustment. 6. 5 Extraordinary Adjustments Subject to the requirements of Sections 6.4.1. 1 and 6.4.1.2, the Company or the City may request an adjustment to rates at reasonable times other than that required in Section 6.3 for unusual changes in the cost of providing service under this Agreement. Such changes may include changes in the scope of services, changes in components of the landfill tipping fee, changes in the Disposal Site requested by the City, and changes in State or local government Solid Waste fees and charges. Such changes shall not include changes in the market value of Recyclables, inaccurate estimates by the Company of its cost of operations, or change in wage rates or employee benefits. For each such request, the Company shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to the City with support for assumptions made by the Company in preparing the estimate. Company shall also submit a schedule reporting its total costs and total Gross Receipts each year for the past three (3) years for the Collection and Transportation of Solid Waste pursuant to this Agreement. City shall make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. Extraordinary rate adjustment shall only be effective after approval by the City Council and may not be applied retroactively. City shall render its decision within sixty (60) days of receipt of Company's request which shall not be considered received unless and until all information required of this Section is submitted to City. City's decision on Company's request shall be based upon the reasonableness of Company's analysis of the impact of the extraordinary costs prompting the request and on Company's overall financial performance for its performance of this Agreement. 6.6 Supporting Information In the event the Company requests a rate adjustment on the basis of unusual changes or extraordinary increases or costs of doing business, the Company shall provide the City with documentation supporting its request. Additionally, if required by the City, the Company will also provide a copy of its certified annual financial statements prepared by a Certified Public Accountant or a licensed public accountant, which shall have been prepared in compliance with Rule 58 of the "Rules and Regulations of the State Board of Accountancy," as established by the California Code of Regulations, Title 16, Chapter I. Such Certified Public Accountant or licensed public accountant shall be entirely independent of the Company and shall have no financial interest whatsoever in the business of the Company. The City may specify the form and detail of the financial statements. City of Palm Desert 104, March 10, 2022 City of Palm Desert Contract No. C42860 6.7 Grants Franchise Agreement From time to time, Federal, State, or local agencies including the City may provide to the Company grants to assist in financing qualified programs provided by the Company. The Company agrees that the Company Compensation, calculated as described in Sections 6.2 through 6.5; shall be reduced by the amount of any such grant, unless the grant is used exclusively to pay for new services. The City Council shall determine whether the reduction in the Company Compensation shall be: (1) passed through to those Customers designated by the City as a reduction to their rates; (2) as an offset to a rate increase calculated in accordance with Sections 6.3 through 6.5; (3) paid to the City for use,as the City directs; or, (4) applied in any combination of (1) through (3). 6.8 Annual Recycling Rebate The annual Recycling rebate will be calculated based on the formulas provided in Exhibit 10 using the Recyclable Materials revenue and tonnage from the prior calendar year. The Recycling calculations are due from the Company for review by the City by March 31, consistent with the regular rate adjustment of each calendar year. If the calculations in Exhibit 10 result in a ,credit, the rebate will be applied to both Residential and Commercial Customers. The Residential Customers billed on the tax roll will receive the rebate on the tax roll and Residential and Commercial Customers billed by Company will receive a credit on their August invoice for July services. 6. 9 New Program Residential Rate Phase -In In an effort to reduce the initial rate impact to ratepayers, the Contractor shall receive the following compensation, in addition to the adjustment calculated in Section 6.4.2, as described below: July 1, 2023, an additional three dollars and ninety-one cents ($3.91) per month added to the Residential basic service rates calculated July 1, 2024, an additional two dollar and forty-three cents ($2.43) per month added to the Residential basic service rates calculated July 1, 2025, an additional sixty-three cents ($0.63) per month added to the Residential basic service rates calculated City of Palm Desert 105 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement 6.10 Residential Basic Service Organics One-time Adjustments 6.10.1 Residential Tonnage Adjustment Effective on July 1, 2024, along with the annual adjustment calculated in Section 6.4, there will be a one-time adjustment to account for changes in actual versus projected amounts of Refuse and Organic Materials Residential tonnage volumes as described below and as shown in Exhibit 11: If the actual Organic Materials weight in pounds per home in calendar year 2023 is higher or lower than the Company projected 14.8 .pounds per home per week, each Residential Customer will receive a corresponding adjustment in their monthly rate calculated as shown in Exhibit 11. 2. If the reduction in actual Refuse Disposal weight in pounds per home in calendar year 2023 is higher or lower than the Company projected 9.51 pounds per week, each Residential Customer will receive a corresponding adjustment in their monthly rate calculated as shown in Exhibit 11. 6.10.2 Residential Collection Productivity Adjustment Effective on July 1, 2024, in collaboration with the annual adjustment calculated in Section 6.4, there will be a one-time adjustment to account for changes in the actual versus projected Residential Organic Materials Collection productivity. The amount of any such adjustment as calculated in Exhibit 11 will be included as part of the July 1, 2024 Residential Customer basic service rate adjustment. City of Palm Desert 1 106 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement ARTICLE 7. REVIEW OF SERVICES AND PERFORMANCE 7.1 Performance Hearing The City may hold a public hearing on or about the two-year anniversary of the start of this Agreement, and annually thereafter, at which time the Company shall be present and shall participate, to review the Collection, source reduction, Processing, and other Diversion services and overall performance. The purpose of the hearing is to provide for a discussion and review of technological, economic, and regulatory changes in Collection, source reduction, Recycling, Processing, and Disposal to achieve a continuing, advanced Collection, source reduction, Recycling, Processing, and Disposal system; and to ensure services are being provided with adequate quality, effectiveness and economy. Forty-five (45) days after receiving notice from the City of a Franchise Services and Performance Review Hearing, the Company shall, at a minimum, submit a report to the City indicating the following: a) Changes recommended and/or new services to improve the City's ability to meet the goals of AB 939 and requirements of SB 1383 and to contain costs and minimize impacts on rates. b) Any specific plans for provision of changed or new services by the Company. c) A summary of its complaint logs and an assessment of problems reported in the past twelve (12) months. The reports required by this Agreement regarding Customer complaints shall be used as one basis for review. The Company may submit other relevant performance information and reports for consideration. The City may request the Company to submit specific information for the hearing. In addition, any Customer may submit comments or complaints during or before the hearing, either orally or in writing, and these shall be considered. Topics for discussion and review at the Franchise Services and Performance Review Hearing shall include, but shall not be limited to, services provided, feasibility of providing new services, application of new technologies, Customer complaints, amendments to this Agreement, developments in the law, new initiatives for meeting or exceeding AB 939's goals and SB 1383 Regulations, regulatory constraints, and the Company performance. The City and the Company may each select additional topics for discussion at any Franchise Services and Performance Review Hearing. Not later than sixty (60) days after the conclusion of each Franchise Services and Performance Review Hearing, the City may issue a report. As a result of the review, the City of Palm Desert 107 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement City may require the Company to provide expanded or new services within a reasonable time and for reasonable rates and compensation and the City may direct or take corrective actions for any performance inadequacies. City of Palm Desert 108 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 ARTICLE 8. RECORDS, REPORTS AND INFORMATION REQUIREMENTS 8.1 General The Company shall maintain such accounting, statistical and other records related to its performance under this Agreement as shall be necessary to develop the financial statements and other reports required by this Agreement. Also, the Company agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with Applicable Laws and regulation and to meet the reporting and Solid Waste program management needs of the City. To this extent, such requirements set out in this and other Articles of this Agreement shall not be considered limiting or necessarily complete. In particular, this Article is intended to only highlight the general nature of records and reports and is not meant to define exactly what the records and reports are to be and their content. Further, with the written direction or approval of the City, the records and reports to be maintained and provided by the Company in accordance with this and other Articles of the Agreement shall be adjusted in number, format, or frequency. 8.2 Records 8.2.1 General The Company shall maintain records required to conduct its operations, to support requests it may make to the City, and to respond to requests from the City in the conduct of the City business. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a fire, theft and earthquake. Electronically maintained data/records shall be protected and backed up. All records shall be maintained for three (3) years after the expiration of this Agreement. The Company agrees that the records of any and all companies conducting operations addressed in the Agreement shall be provided or made available to the City and its official representatives during normal business hours. The City may review or utilize any of the records described in this Section for any purpose whatsoever. 8.2.2 Financial Records Financial records shall be maintained and expense and revenue information for the City shall be segregated from other areas served by the Company. City of Palm Desert 109 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 8.2.3 Solid Waste, Recycling, and Organic Materials Service Records Records shall be maintained by the Company for the City relating to: Customer services and billing; Routes; Facilities, equipment and personnel used; Complaints; Missed pick ups; Number of Refuse, Recycling, and Organic Materials Carts; and Tons Collected, Processed, Diverted, and Disposed by type of service (Cart, Bin, Can, or Roll -off Box), Discarded Materials stream (Refuse, Recycling, Organic Materials) and Customer (Residential and Commercial). 8.2.4 CERCLA Defense Records The City views the ability to defend against the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and related litigation as a matter of great importance. For this reason, the City regards the ability to prove where Solid Waste Collected in the City was taken for Disposal, as well as where it was not taken, to be matters of concern. The Company shall maintain data retention and preservation systems which can establish where Solid Waste Collected in the City was landfilled (and therefore establish where it was not landfilled) and provide a copy of the reports required in Section 8.3 for five (5) years after the Term during which Collection services are to be provided pursuant to this Agreement, or to provide copies of such records to the City. The Company agrees to notify the City's Risk Manager and the City Attorney at least ninety (90) days before destroying such records. This provision shall survive the expiration of the period during which Collection services are to be provided under this Agreement. 8.2.5 Disposal Records The Company shall maintain records of all Solid Waste Collected, Processed, recovered and Disposed in the City for the period of this Agreement and all extensions to this Agreement or successor Agreements. In the event the Company discontinues providing Solid Waste services to the City, the Company shall provide all records of Disposal or Processing of all Solid Waste Collected in the City within thirty (30) days of discontinuing service. Records shall be in chronological and organized form and readily and easily interpreted. City of Palm Desert 110 March 10, 2022 City of Palm Desert Contract No. C42860 8.2.6 Other Programs' Records Franchise Agreement Records for other programs shall be tailored to specific needs. In general, they shall include: a) Plans, tasks, and milestones; and, b) Accomplishments in terms such as dates, activities conducted, quantities of products used, produced or distributed, and numbers of participants and responses. 8.2.7 Scope and Cost of Audit City may conduct an audit of Company every three (3) years. Company to reimburse for audit up to fifty thousand dollars ($50,000). This amount in subsequent years shall be increased based on the Garbage and Trash Collection Index (GTCI) in U.S city average for all urban consumers as calculated in Section 6.4. The scope of the audit, and auditing party, will be determined by City and the scope may include, but is not limited to, Company revenue, expenses, and methodology of Franchise Fee allocation The scope of the audit, and auditing party, will be determined by City and the scope may include, but not limited to, compliance with terms of this Agreement, Customer service levels and billing, fee payments, Gross Receipts, tonnage, and verification of Diversion rate. Company will provide the necessary details support for the allocation of costs to the various services areas and between the local jurisdictions. 8.2.8 Payments and Refunds Should an audit by the City disclose that the Franchise Fees, Recycling Fees, or other fees, if any, payable by the Company were underpaid or that Customers were overcharged for the period under review, the Company shall pay to the City any underpayment of Franchise Fees and/or Recycling Fees and/or refund to the Company's Customers any overcharges. Undercharges may not be retroactively billed more than three months in arrears. Should an audit disclose that Franchise Fees and/or Recycling Fees were over paid, the City shall promptly refund to the Company the amount of the overpayment. Any refunds to be made by either Party shall be due and payable thirty (30) days following the date of the audit. City of Palm Desert 111 March 10, 2022 City of Palm Desert Contract No. C42860 8.3 Reports 8.3.1 Report Formats and Schedule Franchise Agreement Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed. Reports are intended to compile recorded data into useful forms of information that can be used to, among other things: a) Determine and set rates and evaluate the efficiency of operations; b) Evaluate past and expected progress towards achieving AB 939, AB 1826, AB 341, and SB 1383 goals and objectives compliance requirements; c) Determine needs for adjustment to programs; and, d) Evaluate Customer service and complaints. The Company may propose report formats that are responsive to the objectives and audiences for each report. The format of each report shall be approved by the City and the City reserves the right to adjust, modify, or request additional reports as reasonably necessary or required by CalRecycle. The Company agrees to submit all reports on computer discs or by electronic means in a format compatible with the City's software/computers at no additional charge, if requested by the City. The Company will provide a certification statement by an authorized Company official that the report being submitted is true and correct. Monthly reports shall be submitted within twenty (20) calendar days after the end of each month unless otherwise noted below: If requested, the Company's complaint summary, described in Section 8.3.2.17 below, shall be sent to the City Manager within five (5) days of request. Annual reports shall be submitted before January 31 following the reporting year. All reports shall be submitted to: City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 8.3.2 Monthly Reports Monthly reports shall be submitted by Company to City and shall include the following information pertaining to the most recently completed calendar month. In addition, each monthly report shall include a year-to-date summary page that includes the data submitted from the monthly report(s) submitted in the calendar year prior to the City of Palm Desert 112 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement submittal of the current monthly report. Company shall report the information included in the following Subsections. The information listed shall be the minimum reported: The information listed shall be the minimum reported: A. Gross receipts for the month by sector (Residential, Commercial, Roll -off). B. The following information shall be included in the reports: 1. Warning notices issued during the reporting month for Containers with Prohibited Container Contaminants. 2. Quantity of Recyclable Materials recovered by material type, as well as quantity of material Diverted from landfills in compliance with Applicable Law or the reporting month; 3. Description of Company outreach activities and copies of promotional and public education materials sent during the reporting month. C. Tonnage Report 1. Company shall report the total quantities in tons of Discarded Materials Collected, transferred, Processed, and Disposed by the Company, all of which shall be based on actual certified scale weights for each load, if available, or similarly accurate methodology pursuant to weighing protocols in Section 8.4 of Exhibit 8. Tonnage shall be reported separately by: a. Material type, which shall include, at a minimum, separate reporting of Source Separated Recyclable Materials, Source Separated Organic Materials, Gray Container Waste, and any other type of Discarded Material separately Collected by Company (including, but not limited to: Bulky Items, used oil, mixed C&D Materials, dirt, rock, metals, cardboard, wood waste, reusable items, salvageable materials, etc.); b. Customer/sector type (Single Family Dwelling, Multi -Family Dwelling, Commercial, Roll -off, C&D Debris). Multi -Family Dwellings and Commercial Containers that are Collected on the same route may have tonnage allocated based on Container capacity; and, C. Approved Facility and Facility type. 2. Report Residue level and tonnage for all Discarded Materials Processed, listed separately by material type Collected and Approved Facility(ies) used. City of Palm Desert 113 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement 3. Source Separated Recyclable Materials tonnage marketed, by commodity, and including average commodity value for each, and Processing residue tonnage Disposed, listed separately by material type Collected and Approved Facility(ies) used. 4. Documentation of all Discarded Materials exported out of State, as provided in 14 CCR Sections 18800 through 18813. 5. Tonnage Collected by month separately for each C&D project site and other data as it relates to the C&D Debris services described in this Agreement. 6. Recyclables commodity Diversion report to show what is currently being Diverted through Processing. This report shall be submitted within thirty (30) calendar days after the end of each month. D. Collection and Subscription Report 1. Number of Containers at each service level by Customer type and program, including: a. A summary of the total gallons of Cart service, cubic yards of Bin Service, and pulls; and cubic yards or tons of Roll -off Box and compactor service by Customer type. b. Calculation of the average volume of service received per: Residential Premises (separately identifying dwelling units in a duplex, triplex, or fourplex); Multi -Family Dwelling unit; and Commercial Customer. 2. A summary of Customer subscription data, including the number of accounts; the number of Customers subscribing to each Cart, Bin, and Roll -off service level listed separately for Single Family Dwelling, Multi -Family Dwelling, and Commercial and separately for each type of Discarded Material; and the number of Bulky Items Collections performed. 3. Documentation of the universal service enrollment process including a copy of the City-wide Generator enrollment level evaluation conducted pursuant to Section 5.8 of this Agreement. 4. List of all Commercial and Multi -Family Dwelling Customers with a Solid Waste service level of two (2) cubic yards of service capacity per week or more. Such list shall include each such Customer's service address and Gray City of Palm Desert 114 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement Container Waste, Source Separated Recyclable Materials, and Source Separated Organic Materials Service Levels. The total number of de minimis waivers, and physical space constraint waivers granted in the month, including the Generator name and address for each waiver. 6. The number of waiver reverifications performed by the Company pursuant to Section 5.5.1 of this Agreement in the month, if any, including a copy of documentation for each reverification inspection, which shall include, at a minimum: the Generator's name, address, and Generator type; the type of waiver being verified; any photographic or other evidence collected during the inspection; and the resulting recommended conclusion by the Company regarding the validity of the waiver. The Company shall provide a summary of recommendations to the City of all waivers which the Company concludes to no longer be warranted. 7. Number of Bulky Item/reusable materials Collection events by Customer type. E. Contamination Monitoring Report Waste Evaluation Studies (Section 5.5.2.3) The Company shall submit the following information regarding waste evaluation studies conducted pursuant to Section 5.5.2.3 of this Agreement: 1. A description of the Company's process for conducting waste evaluations. 2. Documentation of the results of the waste evaluation studies and the number of resulting targeted Company route reviews. The documentation shall at a minimum include: dates of the studies; the location of the Facility where the study was'performed; Company routes from which samples were Collected, and number of Generators on those Company routes; the source sector Customer type) of the material (Single Family Dwelling, Multi -Family Dwelling, or Commercial); number of samples collected; total sample size (in pounds); weight of Prohibited Container Contaminants (in pounds); ratio of Prohibited Container Contaminants to total sample size; and, any photographic documentation taken or other physical evidence gathered during the process. 3. Copies of all notices issued to Generators that have Prohibited Container City of Palm Desert 115 March 10, 2022 City of Palm Desert Contract No. C42860 Contaminants. Franchise Agreement 4. Documentation of the number of loads or Containers Disposed of due to observation of Prohibited Container Contaminants, including the estimated weight based on Container size of material Disposed. 5. Any other information reasonably requested by the City, or specified in contamination monitoring provisions of this Agreement. F. Customer Service Report 1. Number of Customer calls separated by category (e.g., missed pickups, scheduled cleanups, billing concerns, damage claims). These complaints shall be documented and reported separately from SB 1383 noncompliance complaints or other regulatory noncompliance complaints. 2. Number of missed or incomplete Collections reported in total, and per one thousand (1,000) Service Opportunities in the City, presented in a graph format, which compares total missed Collections in the City during the current report period to total missed Collections in the City in past reporting periods. 3. Number of new service requests for each Customer type and requested service(s). 4. Company shall maintain a record of all SB 1383 noncompliance complaints and resolutions pursuant to Section 5.2.4 of this Agreement and submit the following information: a. Total number of complaints received and total number of complaints investigated b. Copies of documentation recorded for each complaint received, which shall at a minimum include the following information: i. The complaint as received; ii. The name and contact information of the complainant, if the complaint is not submitted anonymously; iii. The identity of the alleged violator, if known; City of Palm Desert 116 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 iv. A description of the alleged violation, including location(s) and all other relevant facts known to the complainant; V. Any relevant photographic or documentary evidence submitted to support the allegations in the complaint; and, vi. The identity of any witnesses, if known. C. Copies of all complaint reports submitted to the City, pursuant to Section 5.2.2 of this Agreement. d. Copies of all investigation reports submitted to the City pursuant to Section 5. 2.5 of this Agreement, which shall include at a minimum: i. The complaint as received; ii. The date the Company investigated the complaint; iii. Documentation of the findings of the investigation; iv. Any photographic or other evidence collected during the investigation; and, V. Company's recommendation to the City on whether or not the entity investigated is in violation of SB 1383 based on the Company's investigation. G. Generator Waivers Company shall provide a report that documents each Generator waiver request reviewed by Company, which are required by Section 5.5.1 Identify in the report the Generator name and service address, the type of waiver requested, the status of the waiver accepted, denied, pending), and other information reasonably requested by the City. H. Education Program Report The monthly status of activities identified in the public education plan described in Section 5.3 of this Agreement. I. Discarded Materials Evaluation Reports In accordance with Section 8.1 of Exhibit 8, Company shall provide reports of evaluations of Discarded Materials conducted at Approved Facilities. City of Palm Desert 117 March 10, 2022 City of Palm Desert Contract No. C42860 8.3.3 Annual Report Franchise Agreement A. In addition to the monthly reporting requirements in Section 8.3.2, the Company shall provide an "Annual Report," covering the most recently completed Calendar Year. The Annual Report shall include the information in the following Subsections: B. The Annual Report is to be essentially in the form and content of the monthly reports, but shall also include: 1. A summary of the number of Containers in service as of December 31 by size number of gallons, number of yards), sector (Residential, Commercial, Roll - off), service frequency, and type of service (Refuse, Recycling, Yard Waste). 2. An account list of all Master -Billed Residential accounts, including homeowner association name, service address, billing address, number of units, services provided (Refuse, Recycling, Organic Materials), Container location (curbside, in -ground, backyard), Collection method (manual or automated), and monthly rates. 3. A complete inventory of vehicles used to provide all services, including make, year, type, fuel used, use, and California license number. 4. Number of routes and route hours per day by type of service as of December 31. 5. CERCLA Defense records required under Section 8.2.4. 6. Other information or reports that City may reasonably request or require. C. Company shall provide the following information in the annual report: 1. Collection and Subscription Report a. A summary of all data provided in the tonnage report section, including monthly and annual totals. b. The type(s) of Collection service(s) provided, a list of all hauler routes serviced, and a record of the addresses served on each hauler route. C. A summary of Customer subscription data, including the number of accounts; the total number of Generators enrolled with Company for City of Palm Desert 118 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement service, listed separately by service level and Container type (Cart, Bin, and Roll -off service), separately by Residential, Multi -Family Dwelling, and Commercial Customers, and separately for each type of Discarded Material; and the number of Bulky Items Collections performed. d. A detailed list of Residential, Multi -Family Dwelling, and Commercial Customer information, including Gray Container Waste, Source Separated Recyclable Materials, and Source Separated Organic Materials service levels, Customer type, and Customer service addresses reflecting Customer service levels as of June 30 (for the year in which the report is submitted) e. The number of C&D Debris Collection sites served and tonnage Collected, tonnage Diverted, and Diversion level for each C&D Debris Collection site. 2. Processing Facility Report a. Temporary Equipment or Operations Failure: If the Company is granted a Processing Facility temporary equipment or operational failure waiver, in accordance with Section 4.9.1 of the Agreement, the Company shall include the following documents and information: i. The number of days the Processing Facility temporary equipment waiver or operation failure waiver was in effect; ii. Copies of any notifications sent to the City pursuant to Section 4.9.1.A of the Agreement, and copies of City notices to Company pursuant to Section 4.9.1.B of the Agreement; iii. Documentation setting forth the date of issuance of the waiver, the timeframe for the waiver; and, iv. A record of the tons of Source Separated Recyclable Materials, Source Separated Organic Materials, and/or Gray Container Waste redirected to an Alternative Facility or Disposed at an Approved Disposal Facility as a result of the waiver, recorded by Collection vehicle or transfer vehicle number/load, date, and weight. b. Quarantined Organic Waste: A record of all compliance agreements or other documentation for quarantined Organic Waste that are Disposed of, including the name of Generator, date issued, location of final disposition, and the amount of quarantined Organic Waste that was City of Palm Desert 119 March 10, 2022 City of Palm Desert Contract No. C42860 required to be Disposed at a landfill. Franchise Agreement C. Compostable Plastics in Green Containers: Written notification that the Approved Organic Waste Processing Facility(ies), only if applicable, has and will continue to have the capabilities to Process and recover the Compostable Plastics included with the Source Separated Organic Materials Transported to the Approved Organic Waste Processing Facility. This is not required if the Approved Organic Waste Processing Facility(ies) do not accept Compostable Plastics, but is required if at any point during the Term of the Agreement any of the Approved Organic Waste Processing Facility(ies) can Process and recover Compostable Plastics. d. Plastic Bags in. Green Containers: Written notification to the City that the Approved Organic Waste Processing Facility has and will continue to have the capabilities to Process and recover plastic bags when it recovers Source Separated Organic Materials. 3. Public Education and Outreach Report a. A copy of all education and outreach materials provided to Generators, or otherwise used for education and outreach efforts in accordance with Section 5.3 of the Agreement, including, but not limited to: flyers, brochures, newsletters, invoice messaging/billing inserts, and website and social media postings. b. A record of the date and to whom the information was disseminated or direct contact made, in the form of a list that includes: the Generator's name or account name, the type of education or outreach received; the distribution date, and the method of distribution. C. The number of Organic Waste Generators and Commercial Edible Food Generators that received information and the type of education and outreach used. d. For any mass distribution through mailings or Bill inserts, the Company shall maintain a record of the date, a copy of the information distributed, and the type and number of accounts that received the information. e. A copy of electronic media, including the dates posted of: social media posts, e-mail communications, or other electronic messages. f. Company shall maintain a record of all technical assistance efforts conducted pursuant to the Agreement, including: City of Palm Desert 120 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 i. The name and address of the Customer/Generator receiving technical assistance, and account number, if applicable. ii. The date of any technical assistance conducted and the type of technical assistance, including, but not limited to: site visits, waste assessments, compliance assessments, direct outreach, workshops, meetings, events, and follow-up communications. iii. A copy of any written or electronic educational materials distributed during the technical assistance process. g. A copy of all special event reports. 4. Compliance Monitoring and Enforcement Report a. A summary of the total number of SB 1383 non-compliance complaints that were received and investigated, and the findings based on investigation of those complaints, in accordance with Section 5.2.5 and Section 8.3.21 of the Agreement. b. The number of inspections conducted by type for Commercial Edible Food Generators, Food Recovery Organizations, Food Recovery Services, and Commercial businesses. C. A copy of written and/or electronic records and documentation for all audits, studies, compliance reviews, and all other inspections conducted pursuant to Section 5.5 of the Agreement. d. The number of Commercial businesses that were included in a compliance review performed by the Company, and the number of violations found and corrected through compliance reviews, if different from the number reported in Subsection 4.f. of this Section; including a list with each Generator's name or account name, address, and Generator type. f. The number of enforcement actions that were resolved, categorized by type of Generator. g. Copies of all written notices, violations, educational materials, or other enforcement mechanisms issued to noncompliant Generators. 5. Food Recovery Program Support a. The total number of Generators classified as Tier One and Tier Two City of Palm Desert 121 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Commercial Edible Food Generators located within the City. b. The number of Food Recovery Services and Food Recovery Organizations located and operating within the City that contract or have written agreements with Commercial Edible Food Generators for Food Recovery, if known. C. The number of Generators participating in the Edible Food Recovery program, as described in Section 5.6 of the Agreement. 6. Vehicle and Equipment Inventory a. A list of all vehicles used in performing services under this Agreement including the license plate number, VIN, make, model, model year, and fuel type (e.g, CNG or RNG). b. If applicable, the name, physical location, and contact information of each entity, operation, or Facility from whom the RNG was procured. C. If applicable, the total amount of RNG procured by the Company for use in Company vehicles, in diesel gallon equivalents (DGE), including copies of any receipts, invoices, or other similar documentation evidencing procurement. In addition to the amount procured, Company shall include the total amount actually used in Company vehicles in the calendar year, if these values are different. Customer Revenue and City Fee Payment Report. Provide a statement detailing Gross Revenue from all operations conducted or permitted pursuant to this Agreement and report of all City fees paid in accordance with Article 3 of this Agreement. 8.3.4 CalRecycle Annual Electronic Report and SB 1383 Annual Report Company shall prepare an initial draft of the CalRecycle Electronic Annual Report and SB 1383 Annual Report (if not included as part of the CalRecycle Electronic Annual Report) for City review no later than forty-five (45) days before the due date for such reports by CalRecycle. Upon completion of City review, Company will then update and provide additional information as needed. City is responsible for final submittal of the Electronic Annual Report and SB 1383 Annual Report. City of Palm Desert 122 March 10, 2022 City of Palm Desert Contract No. C42860 8.3.5 Financial Report Franchise Agreement The City may, at the City's option, request the Company's annual audited financial reports/statements for the most recently completed fiscal year. Company shall have the audited financial reports/statements be made available for City review. Financial statements shall include a supplemental combining schedule showing the Company's results of operations, including the specific revenues and expenses in connection with the operations provided for in this Agreement, separated from others included in such financial statements. The financial statements and footnotes shall be prepared in accordance with Generally Accepted Accounting Principles (GAAP) and audited, in accordance with Generally Accepted Auditing Standards (GAAS) by a certified public accountant (CPA) licensed (in good standing) to practice public accounting in the State of California as determined by the State of California Department of Consumer Affairs Board of Accountancy. The cost for preparation of the financial statements and audit shall be borne by the Company as a direct cost of service. In addition, the Company shall provide to the City the supplemental schedule on a compiled basis. The Company shall, in its agreement with the CPA preparing the audit above, have its CPA make available to the City (or the City's designated representative) for review such CPA's working papers related to the audit. The cost, if any, incurred by the Company's CPA shall be included in the cost of the audit. At the City's request, the Company shall make available for review the City the working papers or other documentation deemed relevant by the City relating to information shown in the disclosure letter. The disclosure letter shall be provided to the City. 8.4 Adverse Information A. Reporting Adverse Information. The Company shall provide the City two copies one to the City Manager, and one to the City Attorney) of all reports, pleadings, applications, notifications, Notices of Violation, communications or other material relating specifically to the Company's performance of services pursuant to this Agreement, submitted by the Company to, or received by the Company from, the United States or California Environmental Protection Agency, the California Integrated Waste Management Board, the Securities and Exchange Commission or any other federal, State or local agency, including any federal or State court. Copies shall be submitted to the City simultaneously with the Company's filing or submission of such matters with said agencies. The Company's routine correspondence to said agencies need not be routinely submitted to the City, but shall be made available to the City promptly upon the City's written request. City of Palm Desert 123 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 B. Failure to Report. The refusal or failure of the Company to file any required reports, or to provide required information to the City, or the inclusion of any materially false or misleading statement or representation by the Company in such report shall be deemed a material breach of the Agreement as described in Section 11.1 and shall subject the Company to all remedies which are available to the City under the Agreement or otherwise. 8.5 Right to Inspect Records The City shall have the right to inspect the Company's internal documents or records that are required expressly or by inference pursuant to this Agreement, or any other documents or records of the Company or its related Party entities that the City shall deem, in its sole discretion, necessary to evaluate the Company's performance provided for in this Agreement. City of Palm Desert 124 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 ARTICLE 9. INDEMNIFICATION, INSURANCE AND BOND 9.1 Indemnification To the maximum extent permitted by law, the Company hereby agrees to and shall indemnify and hold harmless the City, its elected and appointed boards, commissions, officers, employees, and agents (collectively, Indemnitees) from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description (including, but not limited to, injury to and death of any Person and damage to property, or for contribution or indemnity claimed by third parties) arising or resulting from and in any way connected with (1) the negligence or willful misconduct of the Company, its officers, employees, agents, Companies and/or Subcontractors in performing services under this Contract; (2) the failure of the Company, its officers, employees, agents, Companies and/or subcontractors to comply in all respects with the provisions of this Agreement, Applicable Laws (including, without limitation, the Environmental Laws), ordinances and regulations, and/or applicable permits and licenses; (3) the acts of the Company, its officers, employees, agents, Companies and/or subcontractors in performing services under this Agreement; and (4) any challenge to the award of, or any provisions of this Agreement (including any claim that the application of any provision hereof violates any provision of the California Constitution). The Company further agrees to and shall, upon demand of the City, at the Company's sole cost and expense, defend (with attorneys acceptable to the City) the Indemnitees against any claims, actions, suits in law or equity or other proceedings, whether judicial, quasi-judicial or administrative in nature, arising or resulting from any of the aforementioned events. The Company, upon demand of the City, made by and through the City Attorney, shall protect the City and appear in and defend the Indemnitees, in any claims or actions by third parties, whether judicial, administrative or otherwise, including, but not limited to disputes and litigation over the definitions of "Solid Waste", "Recyclable Material", or Organic Materials" or the limits of the City's authority with respect to the grant of licenses, or agreements, exclusive or otherwise, asserting rights under the Dormant Commerce Clause or federal or State laws to provide Solid Waste services in the City. This provision shall survive the expiration of the period during which Collection services are to be provided under this Agreement. The City and the Company agree to confer following any trial to decide jointly whether to appeal or to oppose any appeal. In the event the City and the Company jointly agree to appeal, or to oppose any appeal, the City and the Company agree to share equally the costs of appeals. Should either the City or the Company decide to appeal, or to oppose an appeal, and the other decide not to appeal, City of Palm Desert 125 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement or to oppose an appeal, the Party which decides to appeal, or to oppose an appeal, shall bear all fees and costs of the appeal or the opposition to the appeal. The Company's duty to indemnify and defend from the aforementioned events arising during the Term of the Agreement and as it may be extended shall survive the expiration or earlier termination of this Agreement. 9.2 Hazardous Substances Indemnification A. Without regard to any insurance coverage or requirements, and without limiting the above general indemnification obligation in any way, Company specifically agrees to and shall, to the maximum extent permitted by law, defend (with counsel acceptable to City), reimburse, indemnify, and hold harmless Indemnities from and against any and all claims, actions, liabilities, damages, demands, judgments, losses, costs, liens, expenses, suits, actions, attorneys' fees, consultant fees, penalties and any and all other losses, damages, fees and expenses of whatever kind or nature ("Claims") (including but not limited to response costs, investigative costs, assessment costs, monitoring costs, treatment costs, cleanup costs, removal costs, remediation costs, and similar costs, damages and expenses) that arise out of or are alleged to arise out of or in any way relate to any action, inaction or omission of Company that: 1. Results in any demand, claim, notice, order, or lawsuit, asserting that any Indemnitee is liable, responsible or in any way obligated to investigate, assess, monitor, study, test, treat, remove, remediate, or otherwise cleanup, any Hazardous Contaminant (as defined herein); or 2. Relates to material Collected, Transported, Recycled, Processed, treated, or Disposed of by Company. B. Company's obligations pursuant to this Section shall apply, without limitation, to: 1. Any Claims brought pursuant to or based on the provisions of any Environmental Law; 2. Any Claims based on or arising out of or alleged to be arising out of the ownership, use, lease, sale, design, construction, maintenance or operation of Company of any Facility; 3. Any Claims based on or arising out of or alleged to be arising out of the marketing, sale, distribution, storage, Transportation, Disposal, Processing, or use of any materials recovered by Company; City of Palm Desert 126 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 4. Any Claims based on or arising out of or alleged to be arising out of any breach of any express or implied warranty, representation or covenant arising out of or in connection with this Agreement. C. The foregoing indemnity and defense, obligations shall apply irrespective of the negligence or willful misconduct of Company or any Affiliate of Company. D. For purposes of this Section, the term "Hazardous Contaminant" shall mean any Hazardous Substance, any Hazardous Waste any crude oil or refined or unrefined petroleum product or any fraction or derivative thereof; and any asbestos or asbestos -containing material. The term "Hazardous Contaminant" shall also include any and all amendments to any referenced statutory or regulatory provisions made before or after the date of execution of this Agreement. E. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE AND SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 9.3 CalRecycle Indemnification and Guarantee To the extent authorized by law, Company's duty to defend and indemnify herein includes payment of all fines and/or penalties imposed by CalRecycle, subject to the restrictions set forth in Public Resources Code Section 40059.1, if the requirements of Applicable Law, including AB 939, AB 341, AB 1826, and/or SB 1383, are not met by the Company or City with respect to the Discarded Materials Collected under this Agreement, and such failure is: (i) due to the failure of Company to meet its obligations under this Agreement, or, (ii) due to Company delays in providing information that prevents Company or City from submitting reports required by AB 939, AB 341, AB 1826, and/or SB 1383 in a timely manner. The provisions of this Section shall survive the termination or expiration of this Agreement. 9.4 Insurance Company shall not commence work under this Agreement until it has provided evidence satisfactory to the City of Palm Desert that it has secured all insurance required under this Section. In addition, Company shall not allow any subcontractor(s), consultant(s), or any other party providing services under this Agreement to commence work until it has provided evidence satisfactory to the City that such parties have secured all insurance required under this Section. Without limiting Company's indemnification of the City of Palm Desert, and prior to commencement of Work, Company shall obtain, provide and maintain at its own expense City of Palm Desert 127 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 during the Term of this Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to the City. General Liabilitv Insurance: Company shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $5;000,000 per occurrence, $10,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions limiting coverage for contractual liability. The limits required may be satisfied by a combination of general liability and umbrella/excess insurance. Products/completed operations coverage shall extend a minimum of three years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed "by or on behalf" of the insured. Policy shall specifically provide for a duty to defend on the part of the insurer. The City of Palm Desert, its officers, officials, employees, agents, and volunteers shall be included as additional insureds under the policy. Automobile Liability Insurance: Company shall maintain commercial automobile liability insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Company arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than $5,000,000 combined single limit for each accident. The limits required may be satisfied by a combination of auto liability and umbrella/excess insurance. Workers' Compensation Insurance: Company shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least 1,000,000). Company shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City of Palm Desert, its officers, agents, employees and volunteers. Pollution Liabilitv Insurance: Environmental Impairment Liability Insurance shall be written on a Transportation Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $6,000,000 dollars per claim and 6,000,000 in the aggregate. All activities contemplated in this Agreement shall be specifically scheduled on the policy as "covered operations." The policy shall provide coverage for the hauling of waste from the Collection site to the final Disposal location, including non -owned Disposal Sites. The policy shall contain no endorsements or provisions limiting contractual liability. City of Palm Desert 128 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Umbrella or Excess Liability Insurance: Company may opt to utilize umbrella or excess liability insurance in meeting. insurance requirements. In such circumstances, Company shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than $5,000,000 that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer's liability. Such policy or policies shall include the following terms and conditions: A drop -down feature requiring the policy to respond if any primary insurance that would otherwise have applied due to exhaustion of limits; Pay on behalf of wording as opposed to reimbursement; Concurrency of effective dates with primary policies; and Policies shall "follow form" to the underlying primary policies. Insureds under primary policies shall also be insureds under the umbrella or excess policies Other provisions or requirements Insurance for Subcontractors: The Company shall be responsible for ensuring all subcontractors and consultants purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City and its officers, officials, employees, and agents as additional insureds to their insurance policies. Company shall provide to City satisfactory evidence as required under Insurance Section 9.4 of this Agreement. Company agrees to ensure that its consultants and subcontractors . provide the same minimum insurance coverage and endorsements required of Company. Company agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. Company agrees that upon request, all insurance documentation provided by subcontractors, consultants, and others engaged with this Agreement will be submitted to the City for review. Proof of Insurance: Company shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with all necessary endorsements as outlined in this Section. Insurance certificates and endorsements must be approved by the City's Risk Manager prior to commencement of performance. The certificates and endorsements for each insurance policy shall be signed by a Person authorized by that insurer to bind coverage on its behalf. Current certification of insurance shall be kept on file with City at all times during the Term of this Agreement. City reserves the right to require complete, certified copies, of all required insurance policies, at any time. City of Palm Desert 129 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Duration of Coverage: Company shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to Persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Company, its agents, representatives, employees, subcontractors, or consultants. Citv's Rights of Enforcement: In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Company. Acceptable Insurers: All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. Waiver of Subrogation: All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against the City of Palm Desert, its elected or appointed officials, agents, and employees or shall specifically allow Company or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Company hereby waives its own right of recovery against the City of Palm Desert, its elected or appointed officials, officers, agents, employees, and volunteers and shall require similar written express waivers and insurance clauses from each of its subcontractors. Enforcement of Agreement Provisions (non estoppel): Company acknowledges and agrees that any actual or alleged failure on the part of the City to inform Company of noncompliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. Primary and Non -Contributing Insurance: Coverage provided by Company shall be primary and any insurance or self-insurance procured or maintained by the City of Palm Desert shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City's own insurance or self-insurance shall be called upon to protect it as a named insured. Requirements Not Limiting: Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to City of Palm Desert 130 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C4M60 a given issue and is not intended by any Party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. Notice of Cancellation: Company agrees to oblige its insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment of premium for which a ten 101 day notice is required) for each required coverage. Additional Insured Status: General liability, Automobile Liability, and if applicable, Pollution Liability, policies shall provide, or be endorsed to provide, that the City of Palm Desert and its officers, officials, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess liability policies. Sevaration of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Company's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer's limits of liability. The policy(ies) shall not contain any cross -liability exclusions. Citv's Rieht to Revise Svecifications: The City or its Risk Manager reserves the right at any time during the Term of the Agreement to change the amounts and types of insurance required by giving the Company ninety (90) days advance written notice of such change. If such change results in cost to the Company, the City and Company may renegotiate Company's compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. Deductibles and Self -Insured Retentions: Any deductibles or self -insured retentions must be declared to and approved by City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respect to Indemnitees; or the Company shall procure a bond guaranteeing payment of losses and related investigations, claim administration anddefense expenses in the amount of such deductibles or self -insured retentions. Timelv Notice of Claims: Company shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Company's performance under this Agreement, which involve or may involve coverage under any of the required liability policies for incidents that cause significant third -party property damage and/or any third personal injury that occurs in the City of Palm Desert. Safet : Company shall execute and maintain its work so as to avoid injury or damage to any Person or property. In carrying out its Services, the Company shall at all times be in compliance with all applicable local, State and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. City of Palm Desert 131 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Additional Insurance: Company shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. Additional Provisions: 1. The City does not, and shall not, waive any rights against the Company which it may have by reason of the aforesaid hold harmless agreements, because of acceptance by the City or the deposit with the City by the Company of the insurance policies described in this Section 9.4. 2. In the event any services are delegated to another company, subcontractor, or consultant, the Company shall require such company, subcontractor, or consultant to provide statutory workers' compensation insurance and employer's liability insurance for all of the other company's, subcontractor's, or consultant's employees engaged in the work in accordance with this Section 9.4. The liability insurance,required by this Section 9.4 shall cover all Company, subcontractors, and consultants, or these parties must furnish evidence of insurance that meets all of the requirements of this Section 9.4. 3. The Company shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve the Company from any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self -insured reserves is made by any third Person against the Company, or any subcontractor or consultant on account of any occurrence related to this Agreement, the Company shall promptly report the facts in writing to the insurance carrier and to the City. 9.5 Faithful Performance Bond Concurrently with execution of this Agreement, the Company shall deliver to the City a performance bond, from an admitted surety insurer, in the amount of One Million Dollars 1,000,000), similar to the form provided in Exhibit 6, which secures the faithful performance of this Agreement, including, without limitation, payment of any penalty and the funding of any work to cure a breach of this Agreement. The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bond shall be unconditional and remain in force during the entire Term of the Agreement and shall be null and void at the conclusion of the Term of this Agreement only if the Company promptly and faithfully performs all terms and conditions of this Agreement. City of Palm Desert 132 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 9.6 Forfeiture of Performance Bond In the event the Company shall for any reason become unable to, or fail in any way to, perform as required by this Agreement, the City may declare a portion or all of the performance bond which is necessary to recompense and make whole the City, forfeited to the City. Upon partial or full forfeiture of the performance bond, the Company shall restore the performance bond to its face amount within thirty (30) days of the City's declaration. Failure to restore the performance bond to its full amount within thirty (30) days shall be a material breach of Agreement. 9.7 Performance Security Beyond Service Term Some Agreement requirements extend beyond the Term of this Agreement and other requirements, such as minimum Diversion rates per Section 4.7.12, will not be substantiated until after the final service date. Therefore, the Company shall not terminate the performance bond required in Section 9.5, and will renew them to ensure continuous availability to the City, until receiving a written release from the City. Permission from the City to discontinue holding these performance securities does not relieve Company of payments to the City that may be due, or may become due. City of Palm Desert 133 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement ARTICLE 10. CITY'S RIGHT TO PERFORM SERVICE 10.1 General In addition to, but not in lieu of, any other rights or remedies City might have under this Agreement, at law or in equity, in the event that the Company, for any reason whatsoever including interruptions and discontinuance due to events described in Section 11.5), fails, refuses, or is unable to Collect, Recycle, Process, Transport or Dispose of any or all Solid Waste (including Recyclable Materials and Organic Materials) which it is required by this Agreement, at the time and in the manner provided in this Agreement, for a period of more than forty-eight (48) hours, and if, as a result thereof, Solid Waste should accumulate in the City to such an extent, in such a manner, or for such a time that the City should find that such accumulation endangers or menaces the public health, safety or welfare, then the City shall have the right, but not the obligation, upon notice to the Company during the period of such emergency as determined by the City, as hereinafter set forth, (1) to perform, or cause to be performed, such services itself with its own or other personnel without liability to the Company; and/or (2) to take possession of any or all of the Company's land, equipment and other property used or useful in the Collection and Transportation of Solid Waste, and to use such property to Collect and Transport any Solid Waste generated within the City which the Company would otherwise be obligated to Collect, Transport and properly Dispose of or Process pursuant to this Agreement. Notice of the Company's failure, refusal or neglect to Collect, Transport and properly Dispose of or Process Solid Waste may be given orally by telephone to the Company at its principal office and shall be effective immediately. Written confirmation of such oral notification shall be sent to the Company within one Business Day of the oral notification. The Company further agrees that in such event: A. It will take direction from the City to effect the transfer of possession of equipment and property to the City for the City's use. B. It will, if the City so requests, keep in good repair and condition all of such equipment and property, provide all motor vehicles with fuel, oil and other service, and provide such other service as may be necessary to maintain said property in operational condition. C. The City may immediately engage all or any personnel necessary or useful for the Collection and Transportation of Solid Waste, including, if the City so desires, employees previously or then employed by the Company. The Company further agrees, if the City so requests, to furnish the City the services of any or all man- agement or office Personnel employed by the Company whose services are neces- sary or useful for Solid Waste Collection, Transportation, Processing and Disposal City of Palm Desert 134 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 operations and for the Billing and Collection of fees for these services. The City agrees that it assumes complete responsibility for the proper and normal use of such equipment and Facilities while in its possession. If the interruption or discontinuance in service is caused by any of the reasons listed in Section 11.5, the City shall pay to the Company the reasonable rental value of the equipment and Facilities, possession of which is taken by the City, for the period of the City's possession, if any, which extends beyond the period of time for which the Company has rendered bills in advance of service, for the class of service involved. 10.2 Billing and Compensation to the City during the City's Possession During such time that the City is providing Solid Waste services, as above provided, the Company shall bill and collect payment from all users of the above -mentioned services as described in Section 5.1. The Company further agrees that, in such event, it shall reimburse the City for any and all costs and expenses incurred by the City beyond that billed and received by the City in taking over possession of the above -mentioned equipment and property for Solid Waste service in such manner and to an extent as would otherwise be required of the Company under the terms of this Agreement. Such reimbursement shall be made from time to time after submission by the City to the Company of each statement listing such costs and expenses, but in no event later than five (5) working days from and after each such submission. 10.3 City's Right to Relinquish Possession It is further mutually agreed that the City may at any time at its discretion relinquish possession of any or all of the above -mentioned property to the Company and thereupon demand that the Company resume the Solid Waste services as provided in this Agreement, whereupon the Company shall be bound to resume the same. 10.4 City's Possession Not A Taking The City's exercise of its rights under this Article 10 (1) does not constitute a taking of private property for which compensation must be paid; (2) will not create any liability on the part of the City to the Company; and (3) does not exempt the Company from .the indemnity provisions of Article 9, which are meant to extend to circumstances arising under this Section, provided that the Company is not required to indemnify the City against claims and damages arising from the sole negligence of the City, its elective and appointive boards, commissions, officers, employees and agents in the operation of Collection vehicles during the time the City has taken possession of such vehicles. City of Palm Desert 135 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 10.5 Duration of the City's Possession The City's right pursuant to this Article to retain temporary possession of the Company's Facilities and equipment, and to render Collection services, shall terminate when the City determines that such services can be resumed by the Company, or when the City no longer reasonably requires such property or equipment. In any case, the City has no obligation to maintain possession of the Company's property or equipment and/or continue its use for any period of time and may at any time, in its sole discretion, relinquish possession to the Company. City of Palm Desert 136 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement ARTICLE 11. DEFAULT, REMEDIES AND LIQUIDATED DAMAGES 11.1 Events of Default All provisions of this Agreement to be performed by the Company are considered material. Each of the following shall constitute an event of default. A. Fraud or Deceit. If the Company practices, or attempts to practice, any fraud or deceit upon the City. B. Insolvency or Bankruptcy. If the Company becomes insolvent, unable, or unwilling to pay its debts, files a bankruptcy petition or takes steps to liquidate its assets. C. Failure to Maintain Coverage. If the Company fails to provide or maintain in full force and effect the Workers' Compensation, liability, or indemnification coverage as required by this Agreement. D. Violations of Regulation. If the Company violates any orders or filings of any regulatory body having jurisdiction over the Company or City relative to this Agreement, provided that the Company may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Franchise and this Agreement shall be deemed to have occurred. E. Failure to Perform. If the Company ceases to provide Collection, Processing, Recycling, or Disposal services as required under this Agreement for a period of two (2) consecutive days or more, for any reason within the control of the Company, including labor disputes. F. Failure to Pay. If the Company fails to make any payments required under this Agreement and/or refuses to provide the City, within ten (10) days of the demand therefor, with required information, reports, and/or records in a timely manner as provided for in the Agreement. G. Acts or Omissions. Any other act or omission by the Company which violates the terms, conditions, or requirements of this Agreement, Applicable Law, any Environmental Law as it may be amended from time to time, or any law, statute, ordinance, order, directive, rule, or regulation issued thereunder and which is not corrected or remedied within the time set in the written notice of the violation or, if the Company cannot reasonably correct or remedy the breach within the time set forth in such notice, if the Company should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect, such correction or remedy thereafter. City of Palm Desert 137 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 H. False or Misleading Statements. Any representation or disclosure made to the City by the Company in connection with or as an inducement to entering into this Agreement, or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time such representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement. I. Attachment. There is a seizure of, attachment of, or levy on, the operating equipment of the Company, including without limits its equipment, maintenance or office facilities, or any part thereof. J. Suspension or Termination of Service. There is any termination or suspension of the transaction of business by the Company, including without limit, due to labor unrest including strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action lasting more than two (2) consecutive days. K. Failure to Provide Assurance of Performance. If the Company fails to provide reasonable assurances of performance as required under Section 11.7. L. Failure to Provide Processing Capacity. Company fails to provide adequate Processing capacity in accordance with Exhibit 8, which is essential for the City to achieve SB 1383 compliance. M. Failure to Achieve Processing Standards. Company fails to achieve the Processing standards specified in Exhibit 8, including achievement of minimum Organic Materials recovery rates, which are essential for the City to achieve SB 1383 compliance. N. Failure to Comply with Other Requirements of SB 1383. Company fails to comply with other requirements of the Agreement including, but not limited to, public education, reporting, contamination monitoring, recordkeeping and reporting, or other obligations of this Agreement that delegate the City's responsibility and/or authority under SB 1383 to the Company. O. Failure to Implement Collection Program. Company fails to implement a Collection program that complies with the requirements of Article 4, which is essential for the City to achieve compliance with SB 1383. The Company shall be given forty-eight (48) hours from notification by the City to cure any default arising under Subsections E, F, I, f and K provided, however, that the City shall not be obligated to provide the Company with a notice and cure opportunity if the Company has committed the same or similar breach within a twenty-four (24) month period. City of Palm Desert 138 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 11.2 Criminal Activity of Company Should the Company or any of its officers or directors be found guilty of felonious conduct related to the performance of this Agreement, or of felonious conduct related to anti-trust activities, illegal Transport, Processing, or Disposal of hazardous or toxic materials, or bribery of public officials, the City reserves the right to unilaterally terminate this Agreement or impose other such sanctions (which may include financial sanctions, temporary suspensions or any other condition deemed appropriate short of termination) as it shall deem proper. 11.3 Right to Terminate Upon Default Upon a default by the Company, the City shall have the right to terminate this Franchise and this Agreement upon a ten (10) days notice if the public health or safety is threatened, or otherwise a thirty (30) days notice, but without the need for any hearing, suit or legal action. The City's rights to terminate this Agreement, or to take possession of the Company's Facility are not exclusive, and the City's termination of this Agreement shall not constitute an election of remedies. Instead, they shall be in addition to any and all other legal and equitable rights and remedies which the City may have. By virtue of the nature of this Agreement, the urgency of timely continuous and high - quality service, the time required to effect alternative service, and the rights granted by the City to the Company, the remedy of damages for a breach hereof by the Company is inadequate and the City shall be entitled in injunctive relief. 11.4 Liquidated Damages 11.4.1 General The City finds, and the Company agrees, that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by the City as a result of a breach by the Company of its obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) the services provided under this Agreement might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of City of Palm Desert 139 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. 11.4.2 Service Performance Standards; Liquidated Damages for Failure to Meet Standards The Parties further acknowledge that consistent, reliable Collection service is of utmost importance to the City and that the City has considered and relied on the Company's representations as to its quality of service commitment in awarding the Franchise to it. The Parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The Parties further recognize that if the Company fails to achieve the performance standards, or fails to submit required documents in a timely manner, the City and its residents will suffer damages and that it is and will be impractical and •extremely difficult to ascertain and determine the exact amount of damages which the City will suffer. Therefore, without prejudice to the City's right to treat such non-performance as an event of default under this Article 11, the Parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to the range of harm to the City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each Party specifically confirms the accuracy of the statements made above and the fact that each Party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions at the time that the Agreement was made. Company Initial Here City Initial Here The Company agrees to pay (as liquidated damages and not as a penalty) the amounts set forth below: 1. Collection Reliability a) For each failure to commence service to a new Customer account within seven 7) days after order, which exceed five (5) such failures annually: $150.00 per occurrence b) For each failure to Collect Discarded Materials, which has been properly set out for Collection, from an established Customer account, or accounts, on the scheduled Collection day and not Collected within the period described in this City of Palm Desert 140 March 10, 2022 City of Palm Desert Contract No. C42860 Agreement occurrence Franchise Agreement which exceeds ten (10) such failures annually: $150.00 per c) For each failure to Collect Discarded Materials, which has been properly set out for Collection,, from the same Customer on two (2) consecutive scheduled pickup days: $150.00 per occurrence 2. Collection Quality a) For each occurrence of violating a transfer station conditional use permit C.U.P.): $500.00 per occurrence b) For each occurrence of uncompensated damage to private property which exceeds five (5) such occurrences annually: $250.00 per occurrence c) For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Cans upright with lids secured (in areas where Customers own their Containers, if applicable) which exceeds ten (10) service locations annually: $150.00 per occurrence d) For each occurrence of excessive noise or discourteous behavior: $250.00 per occurrence e) For each failure to clean up Discarded Materials spilled from Containers which exceeds ten (10) such failures annually: $150.00 per occurrence f) For each occurrence of Collecting Discarded Materials during unauthorized hours which exceeds five (5) such occurrences annually: $250.00 per occurrence g) For each failure to clean or replace Commercial Containers in accordance with Section 4.8.3 of this Agreement which exceeds ten (10) such failures annually: 150.00 per occurrence h) For each failure to replace locks on locking Containers after Collection in accordance with Section 4.6.1 which exceeds three (3) annually: $50.00 per occurrence 3. Customer Responsiveness a) For each failure to initially respond to a Customer complaint within one (1) City of Palm Desert 141 March 10, 2022 City of Palm Desert Contract No. C42860 Working Day: $100.00 per occurrence G! 61 Franchise Agreement b) For each failure to process Customer complaints to the City as required by Article 5 herein: $500.00 per occurrence c) For each failure to remove graffiti from Containers, or to replace with Containers bearing no graffiti, within one (1) Working Day of request from City or Customers: $100.00 per occurrence d) For each failure of a Company field representative to annually contact a Commercial, Industrial or Master -Billed Residential account: $50.00 per account per year per occurrence e) For each occurrence where a City inquiry is not provided a response or action plan within two (2) Working Days from receipt of inquiry which exceeds three 3) times annually: $100.00 per occurrence f) For each occurrence where Solid Waste is not Collected from any Customer and a tag is not provided per Section 4.12.A which exceeds five (5) times annually: $100.00 per occurrence Timeliness of Submissions to the City Any report shall be considered late until such time as a correct and complete report is received by the City. For each calendar day a report or report component is late, the daily liquidated damage amount shall be: a) Monthly Reports: b) Annual Reports: 25.00 per day 350.00 per day c) For each day beyond 30 days after the end of each calendar quarter that Company has not submitted complete and accurate supporting data and calculations for Franchise and Recycling Fees paid, in accordance with Article 3 of the Agreement, Company shall pay: $50.00 per day Accuracy of Billing a) Each Customer invoice that is not prepared in accordance with the City's approved rate schedule that is not cured within 30 days of initial invoicing: 250.00 per Customer invoice City of Palm Desert 142 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 b) Each occurrence in which a service address is "double billed" with multiple invoices sent to different Billing addresses (for examples, both a tenant and an off -site Property Owner are billed for service at the same location): 250.00 per occurrence 6. Implementation of Public Education Plan a) For each failure to perform any individual education and outreach activity as required and in the timeframe specified by this Agreement: $200.00 per day 7. Use of Alternative Fuel Route Vehicles a) For each day that the Company fails to have one hundred percent (100%) of its route trucks powered by alternative fuel sources (non -diesel): 500.00 per day 8. SB 1383 Program Implementation a) Use of Unauthorized Facilities. For each individual occurrence of delivering Discarded Materials to a Facility other than an Approved/Designated Facility(ies) for each Discarded Material type under this Agreement: 25.00 per ton b) Failure to Comply with Container Labeling and Colors. For each occurrence of Company's failure to comply with Container labeling and color requirements pursuant to this Agreement: $25.00 per occurrence c) Failure to Conduct Compliance Tasks. For each failure to conduct any compliance review, Discarded Materials evaluations pursuant and/or other inspection required by this Agreement: $500.00 per occurrence d) Failure to Conduct Follow -Up Inspections. For each failure to conduct a follow-up inspection as required in this Agreement as required by Section 5.5.2: $25.00 per occurrence 9. Cooperation with Service Provider Transition a) For each day routing information requested by City in accordance with Section 12.9 is received after City -established due dates, both for preparation of a request for proposals and for new service provider's implementation of service: $1,000.00 per day City of Palm Desert 143 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 b) For each day delivery of keys, access codes, remote controls, or other means of access to Solid Waste Containers is delayed beyond one (1) day prior to new service provider servicing Customers with access issues, as described in Section 12.9: $1,000.00 per day c) For delay in not meeting the requirements contained in Sections 4.13 and 12.9 in a timely manner, in addition to the daily liquidated damages for breach under 12(a) and 12(b) above, liquidated damages of: $35,000.00 per occurrence 10. General Agreement Adherence a) For each day that Franchisee fails to provide services required under the Agreement, or comply with terms of the Agreement, five (5) Business Days after receipt of written notification from City that such services are not being provided or terms are not being met: $300.00 per day Liquidated damages will only be assessed after the Company has been given the opportunity but failed to rectify the damages as described in this Agreement. The City may determine the occurrence of events giving rise to liquidated damages through the observation of its own employees or representative or investigation of Customer complaints. Prior to assessing liquidated damages, the City shall give the Company notice of its intention to do so. The notice will include a brief description of the incident(s)/non- performance. The Company may review (and make copies at its own expense) all non - confidential information in the possession of the City relating to incident(s)/non- performance. The Company may, within ten (10) days after receiving the notice, request a meeting with the City Manager or their designee. The Company may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. The City Manager or their designee will provide the Company with a written explanation of their determination on each incident(s)/non- performance prior to authorizing the assessment of liquidated damages. The decision of the City Manager or their designee shall be final. 11.4.3 Amount The City may assess liquidated damages for each calendar day or event, as appropriate, that the Company is determined to be liable in accordance with this Agreement. City of Palm Desert 144 March 10, 2022 City of Palm Desert Contract No. C42860 11.4.4 Timing of Payment Franchise Agreement The Company shall pay any liquidated damages assessed by the City within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, the City may proceed against the performance bond required by the Agreement or order the termination of the Franchise granted by this Agreement, or exercise any other right or remedy available to City under this Agreement or at law or in equity, or any combination of these remedies. f1.5 Excuse from Performance The Parties shall be excused from performing their respective obligations hereunder in the event they are actually prevented from so performing by reason of floods, earthquakes, other natural disasters, war, civil insurrection, riots, pandemic, quarantine, travel or movement restrictions, "social distancing' or public health advisories against large gatherings, the acts, order, requirement or recommendation of governmental agencies or public authorities acts (including judicial action), picketing at Customer Collection locations that blocks access to Container pick up points, and other similar catastrophic events which are beyond the control of and not the fault of the Party claiming excuse from performance hereunder ("Uncontrollable Circumstances"). Labor unrest, including but not limited to strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action conducted by the Company's employees or directed at the Company is not an excuse from performance and the Company shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events. The Party claiming excuse from performance shall, within two (2) days after such Party has notice of such cause, give the other Party notice of the facts constituting such cause and asserting its claim to excuse under this Section. The interruption or discontinuance of the Company's services caused by one or more of the events excused shall not constitute a default by the Company under this Agreement. Notwithstanding the foregoing, however, if the Company is excused from performing its obligations hereunder for any of the causes listed in this Section for a period of seven (7) days or more, the City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) days' notice, in which case the provisions relative to taking possession of the Company's land, equipment and other property and engaging the Company's Personnel in Article 10 and this Article 11 will apply. 11.6 Arbitration Any dispute arising out of or relating to this Agreement, which dispute involves claims or controversies having no monetary value, or are in an amount or amounts, if combined, not exceeding twenty-five thousand dollars ($25,000), shall be first mediated between the City of Palm Desert 145 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Parties. The Party making demand for mediation shall select a panel of three (3) mediators from those mediators listed and approved by the local Superior Court of jurisdiction, and the Party not selecting the panel shall choose one (1) of the listed mediators who shall serve in that capacity. The Parties shall share equally in the cost and expense of the mediation. Any dispute arising out of or relating to this Agreement, which dispute involves claims or controversies, having a monetary value in an amount or amounts, if combined, not exceeding twenty-five thousand dollars ($25,000), which dispute was not resolved by mediation as required herein, shall be decided by arbitration in accordance with the commercial rules of the American Arbitration Association then pertaining, unless the Parties agree otherwise and consent, in writing, to a different method of dispute resolution, including mediation or judicial arbitration. Any dispute arising out of or relating to this Agreement, which dispute involves claims or controversies in an amount or amounts, if combined, exceeding twenty-five thousand dollars ($25,000), shall not involve arbitration, or any other method of dispute resolution, unless the Parties agree otherwise and consent, in writing, but shall instead be brought in a court of competent jurisdiction in the County of Riverside, State of California. Venue for any action, including those actions subject to arbitration, shall be Riverside County. Company hereby expressly waives any right to remove any such action to a County other than Riverside County otherwise provided by California Code of Civil Code of Civil Procedure Section 394. Notice of the demand for arbitration is to be filed in writing with the other Party to this Agreement and with the American Arbitration Association. The demand is to be made within a reasonable period of time after the claim, dispute, or other matter in controversy has arisen. In no event, however, is the demand for arbitration to be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in controversy would be barred by the applicable statute of limitations. Any award rendered by.the arbitrator shall be final and judgment may be entered upon it in accordance with Applicable Law in any court having jurisdiction thereof. 11.7 Assurance of Performance The City may, at its option and in addition to all other remedies it may have, demand from the Company reasonable assurances of timely and proper performance of this Agreement, in such form and substance as the City may require. If the Company fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by the City, such failure or refusal shall be an event of default. City of Palm Desert 146 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 ARTICLE 12.OTHER AGREEMENTS OF THE PARTIES 12.1 Relationship of Parties The Parties intend that the Company shall perform the services required by this Agreement as an independent Company engaged by the City and not as an officer or employee of the City nor as a partner of or joint venture with the City. No employee or agent or Company shall be or shall be deemed to be an employee or agent of the City. Except as expressly provided herein, the Company shall have the exclusive control over the manner and means of conducting the Solid Waste Collection services performed under this Agreement, and all Persons performing such services. The Company shall be solely responsible for the acts and omissions of its officers, employees, Companies, subcontractors, Affiliates and agents. Neither the Company nor its officers, employees, Companies, subcontractors, Affiliates and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to the City employees by virtue of their employment with the City. 12.2 Compliance with Law In providing the services required under this Agreement, the Company shall at all times, at its sole cost, comply with all Applicable Laws and regulations of the United States, the State of California, and local agencies. The City shall comply with all applicable regulations promulgated by federal, State, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended during the Term. 12.3 Governing Law This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 12.4 Jurisdiction Any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits. With respect to venue, the Parties agree that this Agreement is made in and will be performed in Riverside County. City of Palm Desert 147 March 10, 2022 City of Palm Desert Contract No. C42860 12.5 Assignment Franchise Agreement Except as may be provided for in Article 10 (City's Right to Perform Service), Company shall not assign its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement (collectively referred to as an "assignment') to any other Person without the prior written consent of City. Any such assignment made without the consent of City shall be void and the attempted assignment shall constitute a material breach of this Agreement. For purposes of this Section the term "assignment" shall be given the broadest possible interpretation, and shall include, but not be limited to (i) a sale, exchange or other transfer of substantially all of Company's assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of outstanding membership interest in Company to a third party provided said sale, exchange or transfer results in a change of control of Company; (iii) any dissolution, reorganization, consolidation, merger, re- capitalization, stock issuance or re -issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction which results in a change of control of Company; (iv) any assignment by operation of law, including those resulting from mergers or acquisitions by or of Company of any of its Affiliates, insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution being levied against this Agreement, appointment of a receiver taking possession of Company's property, or transfer occurring in the event of a probate proceeding, which results in a change of control of Company; and (v) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer (under clause (i) above) or results in a change of control of Company. Notwithstanding the foregoing, nothing is this Section shall prohibit or prevent an assignment by or among Company's present members, whether as trustees of trusts or otherwise, or to or among trusts controlled by such members or trustees, so long as such assignment does not result in a change of control of Company. For the purpose of this Section, the term "Change of Control of Company" means that the Company's present members shall cease to own, individually or collectively, either directly or indirectly through one or more Affiliates or one or more trusts as to which one or more of such individuals is or becomes a trustee, more that forty-nine (49) percent of the voting membership interests in Company. Company acknowledges that this Agreement involved rendering a vital service to City's residents and businesses, and that City has selected Company to perform the services specified herein based on (1) Company's experience, skill and reputation for conducting its Collection, Transportation, Recycling, Processing, and Disposal services in a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations and best Solid Waste (including Recyclable Materials and Organic City of Palm Desert 148 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 Materials) management practices, and (2) Company's financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. City has relied on each of these factors, among others, in choosing Company to perform the services to be rendered by Company under this Agreement. If Company requests City's consideration of and consent to an assignment, City may deny or approve such request in its sole and absolute discretion. Any request for an assignment must be approved by the City Manager, and no request by Company for consent to an assignment need be considered by City unless and until Company has met (or with respect to matters that would only occur upon completion of the assignment if approved, made reasonable assurances that it will meet) the following requirements: a) Company shall pay City its reasonable expenses for attorney's fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment. An advance payment towards expenses may be requested by City prior to City consideration of any assignment request and Company shall be responsible to pay all costs incurred by City in considering a request for assignment, including those in excess of the aforesaid deposit amount, regardless of whether City consents to the assignment. b) Company shall pay the City a transfer fee equal to one percent (1%) of the Gross Receipts, not to exceed one hundred and fifty thousand dollars ($150,000), it, or its assignee, will receive during the remaining Term of the Agreement, as estimated by City. c) Company shall furnish City with audited financial statements for itself, and the proposed assignee's operations for the immediately preceding three (3) operating years. d) A proforma financial statement (income statement and balance sheet) for the proposed assignee with the projected results of operations assuming that the assignment is completed. Such proforma financial statement shall reflect any debt to be incurred by the assignee as part of the acquisition of Company's operations. e) Company shall furnish City with satisfactory proof: (i) that the proposed assignee has at least ten (10) years of Solid Waste management experience on a scale equal to or exceeding the scale of operations conducted by Company under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any significant citations or other censure from any federal, State or local agency having jurisdiction over its Solid Waste management operations due to any significant failure to comply with State, federal or local Environmental Laws and that the assignee has provided City with a complete list of any such citations and City of Palm Desert 149 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its Solid Waste management practices in accordance with sound Solid Waste management practices in full compliance with all federal, State and local laws regulating the Collection and Disposal of Solid Waste including Hazardous Substances; and, (v) of any other information required by City to ensure the proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner. Under no circumstances shall City be obliged to consider any proposed assignment by City if Company is in default at any time during the period of consideration. Should City consent to any assignment request, such assignment shall not take effect until all conditions relating to City's approval have been met. An assignment among the existing shareholders or their related trusts shall not require the City's prior approval and shall not be subject to the transfer fees, submittals, and investigations articulated in this Section 12.5. Company shall notify City in writing of any assignment among its existing shareholders or their related trusts within thirty (30) days of the event. 12.6 Affiliated Companies The Company's accounting records shall be maintained on a basis showing the results of the Company's operations under this Agreement separately from operations in other locations, as if the Company were an independent entity providing service only to the City. The costs and revenues associated with providing service to the City shall not be combined, consolidated or in any other way incorporated with those of other operations conducted by the Company in other locations, or with those of an Affiliate. If the Company enters into any financial transactions with a related Party entity for the provision of labor, equipment, supplies, services, capital, etc., related to the furnishing of service under this Agreement, that relationship shall be disclosed to the City, and in the financial reports submitted to the City. In such event, the City's rights to inspect records, and obtain financial data shall extend to such related Party entity or entities. Any application for a change of ownership or a Franchise transfer shall be made in a manner prescribed by the City Manager. The application shall include a transfer fee in an amount to be set by a resolution of the City Council, to cover the reasonable costs of all direct and indirect administrative expenses of the City, including, without limitation, consultants and attorneys, necessary to analyze the application and to reimburse the City for all its direct and indirect expenses. The applicant shall pay such invoices prior to any authorized change of ownership or Franchise transfer becoming effective. City of Palm Desert 150 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 12.7 Contracting or Subcontracting The Company shall not engage any, companies or subcontractors for Collection, transfer, Processing, Recycling or Disposal of Solid Waste without the prior written consent of the City. 12.8 Binding on Assigns The provisions of this Agreement shall inure to the benefit of and be binding on the permitted assigns of the Parties. 12.9 Transition to the Next Company Prior to, and at, the end of the Term or in the event this Agreement is terminated for cause prior to the end of the Term, Company shall cooperate fully with City and any subsequent City -designated Collection company to assure a smooth transition of Collection, Transportation, Recycling, Processing, and Disposal services. Company's cooperation shall include, but not be limited to, providing route lists, Billing information and other operating records needed to service all Premises covered by this Agreement. The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance of this covenant and/or other equitable relief necessary to enforce this covenant. Company shall provide a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures. Company shall be responsible for coordinating transfer immediately after Company's final pickups, so as not to disrupt service. Company shall provide City with detailed route sheets containing service names and addresses, Billing names and addresses, monthly rate and service levels (number and size of Containers and pickup days) at least ninety (90) days prior to the transition date, and provide an updated list two weeks before the transition and a final list of changes the day before the transition. Company shall provide means of access to the new service provider at least one (1) full Working Day prior to the first day of Collection by another party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers. 12.10 Parties in Interest Nothing in this Agreement, whether express or implied, is intended to confer any rights on any Persons other than the Parties to it and their representatives, successors and permitted assigns. City of Palm Desert 151 March 10, 2022 City of Palm Desert Contract No. C42860 12.11 Waiver Franchise Agreement The waiver by either Party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of violation of the same or any other provision. The subsequent acceptance by either Party of any moneys which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other Party of any provision of this Agreement. 12.12 The Company's Investigation The Company has made an independent investigation (satisfactory to it) of the conditions and circumstances surrounding the Agreement and the work to be performed by it. 12.13 Condemnation The City fully reserves the rights to acquire the Company's property utilized in the performance of this Agreement, by purchase or through the exercise of the right of eminent domain. This provision is additive, and not intended to alter the rights of the Parties set forth in Article 10. 12.14 Notice All notices, demands, requests, proposals, approvals, consents and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative of the Parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows: If to the City: If to the Company: City Manager City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 District Manager Burrtec Waste and Recycling Services, LLC 41-575 Eclectic Street Palm Desert, CA 92260 City of Palm Desert 152 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 The address to which communications may be delivered may be changed from time to time by a written notice given in accordance with this Section. Notice shall be deemed given on the day it is personally delivered or, if mailed, three days from the date it is deposited in the mail. 12.15 Representatives of the Parties References in this Agreement to the "City" shall mean the City Council and all actions to be taken by the City shall be taken by the City Council except as provided below. The City Council may delegate, in writing, authority to the City Manager, and/or to other City employees and may permit such employees, in turn, to delegate in writing some or all of such authority to subordinate employees. The Company may rely upon actions taken by such delegates if they are within the scope of the authority properly delegated to them. The Company shall, by the effective date, designate in writing a responsible officer who shall serve as the representative of the Company in all matters related to the Agreement and shall inform the City in writing of such designation and of any limitations upon their authority to bind the Company. The City may rely upon action taken by such designated representative as actions of the Company unless they are outside the scope of the authority delegated to him/her by the Company as communicated to the City. 12. 16 City Free to Negotiate with Third Parties Notwithstanding the exclusive nature of the Franchise, the City may investigate all options for the Collection, Transporting, Recycling, Processing and Disposal of Solid Waste at any time prior to the expiration of the Term. Without limiting the generality of the foregoing, the City may solicit proposals from the Company and from third parties for the provision of Collection services, Disposal services, Recycling services, Organic Materials services and Processing, and any combination thereof, and may negotiate and execute agreements for such services which will take effect upon the expiration or earlier termination under Section 11.1 of this Agreement. 12.17 Compliance with Municipal Code The Company shall comply with those provisions of the municipal code of the City which are applicable, and with any and all amendments to such applicable provisions during the Term of this Agreement. The Company and any subcontractors must maintain a current City business license during the Term of this Agreement. City of Palm Desert 153 March 10, 2022 City of Palm Desert Contract No. C42860 12.18 Privacy Franchise Agreement The Company shall strictly observe and protect the rights of privacy of Customers. Information identifying individual Customers or the composition or contents of a Customer's waste stream shall not be revealed to any Person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the Customer. This provision shall not be construed to preclude the Company from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. This provision shall not apply to reports or records provided to City pursuant to this Agreement so long as City maintains reports or records with Customer identification or confidential information in accordance with this Section 12.18, in which case this Section 12.18 shall apply to City in the same manner to which it applies to Company. 12.19 Cooperation Following Termination Prior to, and at, the end of the Term or in the event this Agreement is terminated for cause prior to the end of the Term, the Company covenants to cooperate fully with the City and any subsequent company to assure a smooth transition of Solid Waste management services. The Company's cooperation shall include, but not be limited to, providing operating records needed to service all properties covered by this Agreement. The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance of this covenant and/or other equitable relief necessary to enforce this covenant. Company shall provide a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures. Company shall be responsible for coordinating transfer immediately after Company's final pickups, so as not to disrupt service. Company shall provide City with detailed route sheets containing service names and addresses, Billing names and addresses, monthly rate and service levels (number and size of Containers and pickup days) at least ninety (90) days prior to the transition date, and provide an updated list two weeks before the transition and a final list of changes the day before the transition. Company shall provide means of access to the new service provider at least one (1) full Working Day prior to the first day of Collection by another party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers. 12.20 Compliance with Immigration Laws The Company agrees that, in the performance of this Agreement, it will comply with all immigration laws. City of Palm Desert 154 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 12.21 Proprietary Information, Public Records The City acknowledges that a number of the records and reports of the Company are proprietary and confidential. Regular monthly, and annual reports described in Sections 8.3.2 and 8.3.3 are not proprietary. The Company is obligated to permit the City inspection of its records on demand and to provide copies to the City where requested. The City will endeavor to maintain the confidentiality of all proprietary information provided by the Company. Notwithstanding the foregoing, and notwithstanding Section 12.18 (as it applies to City), any documents provided by the Company to the City that are public records may be disclosed pursuant to a proper public records request. 12.22 Guarantee of Company's Performance Pursuant to a guarantee in substantially the form attached as Exhibit 5, Burrtec Waste Group, Inc., a California corporation, has agreed to guarantee the performance of this Agreement by Burrtec Waste and Recycling Services, LLC. The Guarantee is being provided concurrently with the Company's execution of this Agreement. 12.23 Attorney's Fees In any action or proceeding to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall be entitled to an award to attorney's fees in the amount reasonably incurred in the prosecution or defense of such action. The term prevailing Party" shall mean the Party entitled to recover costs of suit, upon the conclusion of the matter, in accordance with the laws of the State of California. City of Palm Desert 155 March 10, 2022 City of Palm Desert Contract No. C42860 Franchise Agreement ARTICLE 13. MISCELLANEOUS AGREEMENTS 13.1 Entire Agreement This Agreement, including the Exhibits, represents the full and entire Agreement between the Parties with respect to the matters covered herein. No verbal agreement or conversation with any office, agent, or employee of the City, either before, during, or after the execution of this Agreement, shall affect or modify any of the terms or obligations herein contained nor such verbal agreement or conversation entitle the Company to any additional payment whatsoever under the terms of this Agreement. The Agreement amends and restates the Initial Agreement and Amended Agreement. 13.2 Section Headings The article headings and section headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions. 13.3 References to Laws and Other Agreements All references in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or recodified, unless otherwise specifically provided. This Agreement supersedes any and all agreements heretofore entered into by the Parties and the City. 13.4 Interpretation This Agreement, including the exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party participated in its drafting. 13.5 Agreement This Agreement may not be modified or amended in any respect except by a writing signed by the Parties. 13.6 Severability If any non -material provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect City of Palm Desert 156 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 any of the remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 13.7 Exhibits Each of the Exhibits identified in this Agreement is attached hereto and incorporated herein and made a part hereof by this reference. 13.8 Non -Waiver Provision Failure of either Party to exercise any of the remedies set forth herein within the time periods provided for shall not constitute a waiver of any rights of that Party with regard to that failure to perform or subsequent failures to performing whether determined to be a breach, excused performance or unexcused defaults by the other Party. 13.9 Counterparts This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. City of Palm Desert 157 March 10, 2022 City of Palm Desert Franchise Agreement Contract No. C42860 IN WITNESS WHEREOF, the City and the Company have executed this Agreement as of the day and year first above written. CITY OF PALM DESERT Approved By: C. HARNIK9YOR ODLll t2L 9oLZ Date Attested Bu: BURRTEC WASTE AND RECYCLING SERVICES, LLC Sign ure J Name V tc t'C'GbirYPw f, Title N'eeos M). 20Z2 Date\` City of Palm Desert 158 March 10, 2022 1 CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of R (cV a1 c e On NMA, , fo . Zo12 before me, 11 Date Here Insert Name and Title of the O cer personally appeared 7M 13r11 Nome( s) of Signers) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. P. J. BLACN Notary Public -California c Riverside County > Commission k 2305749 My Comm. Expires Sep 17, 2023 i Place Notary Seal and/or Stamp Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary —Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: lime &A g4Rrx_l \<</4...Me. rE 4-u o.FF Document Date: 1 tr 14, to, ZO2,7_ Number of Pages: 115 Signer( s) Other Than Named Above: Capacity( ies) Claimed by Signer(s) Sipner' s Name:Tr..e.tk `Ci IV Corporate Officer — Title(s): Partner — Limited General Individual Attorney in Fact Trustee Guardian or Conservator Other: Signer is Representing: 2018 National Notary Association Signer' s Name: Corporate Officer — Title(s): Partner — Limited General Individual Attorney in Fact Trustee Guardian or Conservator Other: Signer is Representing: EXHIBIT 1: CITY FACILITIES EXHIBIT 1. CITY FACILITIES City facilities to receive Refuse, Recyclable Materials, Organic Materials, and all other Collection services offered by Company to the City, Processing and Disposal services at no additional cost to the City or ratepayers include, but are not limited to the following locations: LOCATION All Civic Center Park Except Commercially Operated Buildings Citv Hall Portola Communitv Center Enclosed yard Fire Station #33 Historical Societv Corporation Yard Desert Recreation District East Yard Hovlev Soccer Park Fire Station # 67 Fire Station # 71 Riv. Co. Sheriff's Sub -Station Palm Desert Library Toe Mann Park Washington Charter School Park Ironwood Park Freedom Park Cahuilla Hills Park Magnesia Falls City Park Palma Village Park Cap Homme / Ralph Adams Park I Palm Desert Aquatic Center Universitv Dog Park Universitv Park East SERVICE ADDRESS . 73-510 Fred Waring Dr. 73-510 Fred Waring Dr. 45480 Portola Ave. 47500 Portola Ave., North of Haystack 44400 Town Center Wav 72-861 El Paseo 74-705 42nd Ave. 43900 San Pablo Ave. 74796 Velie Wav 74735 Hovlev Ln. 73200 Mesa View Dr. 73995 Country Club Dr. 73520 Fred Waring Dr. 73300 Fred Waring Dr. 77-810 California Dr. 45768 Portola Ave. 47-800 Chia Dr. 77-400 Country Club Dr. 45825 Edgehill Dr. 74200 Rutledge Way 44550 San Carlos Ave. 72500 Thrush Rd. 73-751 Magnesia Falls Dr. 74802 Universitv Park Dr. 74902 Universitv Park Dr. City of Palm Desert 1-1 March 10, 2022 EXHIBIT 2: PUBLIC EDUCATION AND OUTREACH PLAN EXHIBIT 2 PUBLIC EDUCATION AND OUTREACH PLAN 1. General Administration The City has placed the utmost importance on effective public outreach and education in helping residents and businesses fully understand options for and benefits of source reduction, Reuse, Recycling, and Composting. General provisions for public education and outreach are as follows: A. Company shall provide the City of Palm Desert with an annual public education plan no later than sixty (60) days prior to commencing New Year for both Parties to mutually agree and fulfil. Each public education plan shall specify the target audience for services provided, include upcoming promotions for ongoing and known special events, identify program objectives, individual tasks, public education materials to be distributed, opportunities for expanded partnerships, and a timeline for implementation. The City Contract Manager shall be permitted to provide input on each annual public education plan. Company shall meet with the City Contract Manager to present and discuss the plan, review the prior year's activities (including sponsorships and services provided to City -sponsored events) and determine whether community activities and the provision of services to the City reflect the needs of City staff and the City Council. City Contract Manager shall be allowed up to thirty (30) calendar days after receipt to review and request modifications. The City Contract Manager may request, modifications to be completed prior to approving the plan, modifications will be mutually agreed. Company shall have up to thirty (30) Working Days to revise the plan in response to any agreed upon changes by the City Contract Manager. B. Upon request, the City Contract Manager and Company's contract manager may meet up to one (1) time per month to discuss services, outreach, and educational campaigns and discuss any proposed changes or adaptations to the annual public education plan. C. Company shall distribute instructional information, public education, and promotion materials throughout the commencement of services. This shall entail, at a minimum, distributing program literature to all Customers at the beginning of the Agreement as well as to any new Customer during the Agreement Term. Company may use multiple media sources including print, radio, television, electronic/social media, and events to notify Customers of the change in their services, if applicable, and to highlight new program offerings. D. All City facilities shall receive any and all public education and outreach materials and services provided to the Commercial sector. Company shall provide all printed public education materials to City offices and facilities to have available for the public that visits those facilities and shall replenish the materials as City of Palm Desert 2-1 March 10, 2022 EXHIBIT 2 PUBLIC EDUCATION AND OUTREACH PLAN requested by the City Contract Manager. E. Company may provide electronic bill messages (or separate email attachments) to Commercial Customers who are billed electronically and to Customers who receive paper bills. Company agrees to distribute brochures, newsletters, or other information developed by the City to all Customers Company as attachments to Customer invoices as mutually agreed with a minimum of forty-five (45) days in advance. Upon City request for billing messages, Company shall comply with such request during its next billing cycle for the targeted Customer group, if specified and agreed upon with a minimum notice to Company of forty-five (45) days. F. Company must maintain a website specific to its operations in the City, with a section specific to City programs and Customers, that may be used to post educational materials for download, highlight program successes, and provide Diversion statistics. The Company's website may also include links to relevant web pages of the City's website where further information can be found. 2. Public Education and Outreach Team To best achieve the highest possible level of public education and awareness, Company has proposed to employ a minimum of one (1) full-time equivalent staff member to coordinate and implement all public education and outreach activities required by this Agreement with further clarification provided in Sections 5.3.4 and 5.3.5. The public education and outreach staff shall perform the following tasks in addition to the responsibilities in Sections 5.3.4 and 5.3.5: 1. Work to develop partnerships with and incorporate City program and educational activities into Company activities, and vice versa; 2. Prepare presentations for City entities; 3. Participate in community activities; 4. Oversee Customer satisfaction of all program services, as described in the Agreement; 5. Coordinate and produce the annual education and outreach plan required by this Section 1 of this Exhibit 2 to the Agreement; 6. Coordinate implementation of the annual public education plan; 7. Perform visits to identify the service needs of Customers, by conducting Diversion opportunity assessments" of Customer locations and facilities and City of Palm Desert 2-2 March 10, 2022 EXHIBIT 2 PUBLIC EDUCATION AND OUTREACH PLAN annual visits in accordance with Section 4.6.6 of the Agreement; 8. Manage follow-up Diversion opportunity assessments for businesses to conduct a more comprehensive investigation and educational process after the initial review per Section 4.6.6 of the Agreement; 9. Provide Customers with appropriate educational information necessary to make informed, environmentally -forward decisions relative to waste reduction, Reuse, and recovering activities; and, 10. Assist in planning service needs for special events and Large Venues with a focus on reducing the Disposal of materials resulting from such events or venues. 3. Sector -Specific Activities The following tables present the public education and outreach activities to be performed by Company annually and specifies which items require the use of the third -party vendor, selected by Company, to create the outreach materials. Items for creation by a third -party vendor are to be agreed upon annually during the annual outreach plan review. Customer typefaces unique Discarded Materials management opportunities and challenges; therefore, Company shall develop targeted, sector -specific educational materials and perform outreach activities as described for Customers. Additional ongoing public education and technical outreach assistance is included in the Agreement and not specified here. Some of this assistance includes, but not limited to assistance with waiver verification, contamination follow-up upon completion of waste evaluations, compliance surveys, Proposition 218 noticing, etc. City of Palm Desert 2-3 March 10, 2022 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN Public Education and Outreach I All Sectors The following general public education and outreach materials shall each be produced for the benefit of all Customer types that receive Collection service from the Company. Activity Description Newsletter (Brightside) Produce and distribute advertisements that explain services, programs and opportunities to maximize services, programs and information to assist City with Third Party Vendor use outreach compliance for various Applicable Laws related to Mandatory Recycling and may be Required by City) Organics, including but not limited to SB 1383 (Section 5.3.1). At least one (1) insert will meet the public education and outreach requirement specifications included in SB 1383 for annual noticing. The April insert shall promote the annual neighborhood cleanup event. Public Service Distribute one (1) public service announcement to promote Recycling awareness or Announcement other topics as agreed. Holiday Press Release Distribute a press release to advertise and promote service impacts and programs. Holiday closures, service impacts and/or program promotions Corrective Action Notices Produce and distribute a Notice for use in instances where the Customer includes Cops Tag" Prohibited Container Contaminants in a Container or fails to properly prepare Containers (Section 4.7.9 and Section 5. 5.2.1.C). Biennial Recycling Produce and distribute a "Recycling Guide". This guide can include information such as Brochure Collection methodologies, set out instructions, contact information, and acceptability and necessary preparation of materials for all sectors in the community. A section of Third Party Vendor Use the guide will specifically address proper methods of handling and Disposal of Required) Hazardous Wastes and other programs and services as it pertains to meeting City Diversion goals (Section 5.3.1). Website Company to prepare a section of its website where it will present Customers with educational and Diversion programs, upcoming outreach events, services, and resources specific to City. Website must include Company Customer service contact, Distribution/Frequency 4 Full Page inserts during months agreed upon with City. One (1) time annually. Six (6) Holiday Closure Service Impacts. As needed. Biennial. First year to commence in 2022 via direct mail to each Property Owner. Mailed to each property that is sold in a year or mail a letter with website information and the option to request a brochure. Updated as mutually agreed City of Palm Desert 2-4 March 10, 2022 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN Activity Description D_ istributio,n/Frequency material on source reduction of household Solid Waste and relevant legislative requirements (Section 5.3. 1). Company to make available an interface where tax roll billed Customers can look -up their account and monthly charges by property number. City of Palm Desert 2-5 March 10, 2022 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN Public Education and Outreach I Residential Education and Outreach Activities Activity Description Distribution/Frequency New Programs Mailing Produce and distribute a mailing to Single -Family Customers, which may One (1) time (30 days prior to Third Party Vendor Use include content such as explaining the program changes, regulatory Commencement Date of SB Required) requirements, including SB 1383; and the effective date of the change. 1383 program deliverables) Company may include its holiday schedule and the Recycling guide. via direct mail to Property Owner. New Customer Welcome Kit Company to produce and distribute a new Customer welcome kit specific to As needed. Third Party Vendor Use residents. Company to be responsible for providing kits to renters or Owners of Required) properties that recently transitioned occupancy in digital format, or in print upon Customer request. Company must annually notice Customers of the Welcome kits via at least one (1) annual mailing that can be combined with another outreach requirement of the Agreement. Welcome kits to be made available in digital format on Company website and provided to City for inclusion on the City's website. Corrective Action Notices— Produce and distribute a Customer -oriented notice for use in instances where As needed. Oops Tag" the Customer includes Prohibited Container Contaminants in a Container or fails to properly prepare Containers (Section 4.7.9 and Section 5. 5.2.1.C). Mandatory Recycling and Produce and distribute outreach materials containing information to assist City Distributed during technical Organics Outreach Activities with outreach compliance for various Applicable Laws related to mandatory assistance Diversion Recycling and Mandatory Organic Waste Diversion, including but not limited to opportunity assessments. SB 1383 (Section 5.3.1). How-to" Guide on proper Produce and distribute a "how-to" guide on proper Source Separation of Available electronically, handling of materials Recycling/Organic Materials (Section 5.3.1), handling and Disposal of published in annual mailing Household Hazardous Waste, E-Waste, and U-Waste directly to residents included as part of welcome Third Party Vendor Use Section 5. 3.1). kit and/or in brochure), and Required) used as distribution material. City of Palm Desert 2-6 March 10, 2022 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN Description Purpose Distribution/Frequency Technical Assistance: Diversion Offer Diversion opportunity assessments at least one (1) time annually to all Offer direct contact Opportunity Assessments Customers to meet with the property manager or Owner to promote opportunities to Customers, Recyclable and Organic Materials Collection. as needed. New Customer Welcome Kit Produce, distribute. and make available in digital and, upon request, printed Distributed during technical welcome kits for Property Owners of Commercial businesses and managers of assistance Diversion Third Party Vendor Use Required) Multi -Family Premises to provide new tenants. Move -in kits may include, at a opportunity assessments. minimum if not only requested digitally, a "How-to" guide and decal that clearly define the accepted and prohibited materials in the Company's programs. Company must annually notice Customers of the Welcome kits via at least one (1) annual mailing that can be combined with another outreach requirement of the Agreement. Welcome Kits to be made available in digital format on Company website and provided to City for inclusion on the City's website. Workshops Offer and respond to requests for on -site meetings and workshops. Company At Customer's request. may conduct workshops for Customers that will show property managers and residents, how to use the Recycling and Organics program and will provide resources for additional information and support. City of Palm Desert 2-7 March 10, 2022 ublic Eclu=g- Description How-to" Flyer: Recyclable Materials Third Party Vendor Use Required) Can be combined with Organic Materials flyer below How-to" Flyer: Organic Materials Third Party Vendor Use Required) Can be combined with Recyclable Materials Flyer above Recycling Organics Posters Third Party Vendor Use Required) EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN nmerdil Educatinn iind. Outreach Activities Purpose Prepare and distribute a "how-to" flyer explaining the Recycling Materials Collection programs for each general business sector type. Prepare and distribute a flyer describing the Organic Materials Collection services available and how to prepare Organic Materials for Collection for each general business sector type (Section 5.3.1). Distribution/Frequency Distributed during Diversion opportunity assessments. As requested and needed. Distributed during Diversion opportunity assessments. As requested and needed. Produce and distribute (during Diversion opportunity assessments) Recycling Distributed during Diversion Organics posters that provide graphic illustrations of acceptable and opportunity assessments as prohibited materials within each program. requested and needed. Bill Notices by Company Prepare and distribute quarterly bill messages that creatively inform One (1) time per quarter via Commercial Customers about such topics as: cost savings available from direct mail to each source reduction, Reuse, and Recycling; tips for overcoming common Commercial Customer in City. operational challenges businesses have with Recycling and Organics programs Section 5.3.1). Corrective Action Notices — Produce a Customer oriented corrective action notice for use in instances As needed. OOPS Tag where the Customer includes Prohibited Container Contaminants materials in a Container or fails to properly prepare or set -out Containers (Section 4.7.9 and Section 5.5.2. 1.C). City of Palm Desert 2-8 March 10, 2022 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN Description Purpose: Distribution/Frequency Mandatory Recycling and Company must disseminate outreach materials related to the mandatory One (1) time annually. Organics Outreach Activities nature of Recyclable Materials and Organic Materials Collection services. Such outreach to be designed to assist the City in complying with the outreach requirements of various Applicable Laws related to the mandatory provision of Recyclable Materials and Organic Materials Collection and Diversion services (Section 5.3.1). Commercial Edible Food Company shall provide Customers that are Commercial Edible Food One (1) time annually; or Generator Education Generators with the following: more frequently upon Third Party Vendor Use 1. City's Edible Food Recovery program fact sheet; Information about the Customer request. Required) Commercial Edible Food Generator requirements under 14 CCR, Division 7, Chapter 12, Article 10; Information about Food Recovery Organizations and Food Recovery Services operating within the City, and where a list of those Food Recovery Organizations and Food Recovery Services can be found; and, information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste (Section 5.6). Newsletter (Brightside) —Same Produce and distribute advertisements that explains services, programs and 4 full page inserts during inserts as Residential/Multi- opportunities to maximize services, and programs and information to assist months agreed upon with Family City with outreach compliance for various Applicable Laws related to City. Mandatory Recycling and Organics, including but not limited to SB 1383. At Third Party Vendor use may be least one (1) insert will meet the public education and outreach requirement Required by City) specifications included in SB 1383 for annual noticing. Multi -Family inserts are to be provided to each dwelling unit located within the City (Section 5.3.1). Workshops Offer and respond to requests for on -site meetings and workshops. Company At Customer's request. may conduct workshops for Customers that will show property managers and residents, how to use the Recycling and Organics program and will provide resources for additional information and support. City of Palm Desert 2-9 March 10, 2022 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN Description:' Purpose Technical Assistance: Diversion Offer Diversion opportunity assessments at least one (1) time annually to Opportunity Assessments meet with the property manager or Owner to promote Recyclable and Organic Materials Collection. Distribution/Frequency.. Offer direct contact opportunities to Customers, as needed. City of Palm Desert 2-10 March 10, 2022 Description Community Event Exhibits EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN Special Events/City-Wide Outreach Purpose Distribution/Frequency Company to staff an exhibit booth and distribute promotional and educational All special events listed below. materials at special events mutually agreed by Company and City. Company • City Concerts in the Park may provide visual displays, copies of educational materials (including all (attend minimum of two per guides, flyers, and brochures produced for this Agreement), and Recycling series in May Concert Series education activities appropriate to a variety of age groups (Section 5. 3.3). and October Concert Series) Truck -Sign Advertising Implement a City-wide truck -sign advertising campaign to educate the public about Company's programs under this Agreement. Campaign content should be coordinated, in terms of both message, timing and located on Residential/Commercial vehicles. If the City wishes to update signs more than one (1) time per year, City will pay for additional truck signs (Section 5.3.1). City Sponsored Events The Company shall provide Refuse, Recycling, and Organic Materials Collection, Processing and Disposal services at up to six (6) individual City - sponsored, not for profit events each year. City shall designate the six (6) events. In addition to providing Collection services, the Company shall provide portable toilet and sink service at up to four (4) individual City -sponsored events (Section 4.7.3). Independence Day Celebration Farmers Market (attend once per month October through May) Golf Cart Parade Up to six additional events per year as requested by the City New Truck Campaign Annually. Six (6) events annually Medication Takeback Program Company will assist the City in increasing awareness of medication takeback Ongoing in various outreach. programs provided by local pharmacies, or programs offered by other government entities. Promotional activities will include posting on Company's City of Palm Desert 2-11 March 10, 2022 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN Description Purpose,: Distribution/Fr_equer>icy website, inclusion in the outreach materials mailed to each Residential Premises Customer, Billing inserts, social media targeted outreach, and press releases to local news outlets (Section 4.7.15). Large Venue and Event Company will assist City planners of Large Events and events at Large Venues If needed or requested. Assistance with reporting and planning needs to provide Recycling and Organics Materials Collection service and Diversion as may be useful in meeting the requirements of AB 2176 and SB 1383, and in lowering Disposal quantities generated at such events. Recycle Coach Company is responsible for updating Recycle Coach when accepted materials As needed. change, holidays alter regular service, or other changes are made to service. Company to notify City of changes to service or modified Collection activities. Company may utilize the app to send e-blasts to subscribed Customers. E- blasts must be approved in advance by City before distribution. City of Palm Desert 2- 12 March 10, 2022 EXHIBIT 3: INITIAL RATES EXHIBIT 3. INITIAL RATES 3A. Residential Service Rate Sheet 3B. Commercial Service Rate Sheet 3C. Roll -off Box Service Rate Sheet City of Palm Desert 3-1 March 10, 2022 EXHIBIT 3. INITIAL RATES 3A - Residential Maximum Rates Customer Rates Customer Rates Rate Category April 1, 2022 - June 30, July 1, 2022 -June 30, 2022) 2023) Individually Billed Customers (Tax Roll Billed) Automated Cart Service Based on Refuse Cart Size - Includes one Refuse, one Recycling, and one Organic Materials Cart 1) 96 Callon Cons 13.30 per unit per month 15.13 per unit per month 64 QUon Carts 10.65 per unit per rromth 12.48 per tra per narth' 32 Gallon Carts 7.97 per unit per month 9.80 per unit per moult• Marrakesh Rate (2wtveek Collection) 27.60 per unit per moth 29.43 per unit per nontl* Automated Walk-in Fee - for Three Carts 22.00 per tvrit per month 22. 00 per unit per month Automated Walk-in Fee - aciditiornl Carts 11.00 per cart per month 11.00 per cart per nonth iManual Refuse Curbside Service Maraal Reftse Ctatside Service 14.63 per unit per mouth 16.46 per unit per nonth• Manual Walk-in Service 25.61 per unit per month 27.44 per trait per month* Manal In Gmtnd Can 24.30 per unt per month 26.13 car unit per monih Master-Billed Customers Automated Cart Service - Includes one Refuse, one Recycling, and one Organic Materials Cart 1) 96 Gallon Carts 11.84 cer unit per rrontlt 13.67 per unit per rmnth 64 Gann Cads 9.47 per unit per morh 11.30 per trot per mufti' 32 Gifts Cads 7.11 per writ per month 8.94 per unit per month• Attotmted Walk-in Fee - for Ttuee Carla (4) 19.58 per unit per month 1958 per unit per month Manual Refuse Curbside Service Snide Fammly or NUttFanily lx tvk. Colection 13.03 per unit per mo th 14.86 per taut per aunt* Snide Fammly or Multi -Family 2xhvk. Collection 17.16 per unit per rrondr 18.99 per unit per north" Mobile Hone Park 11.84 per *unit per north 13.67 per tout per north* Manual Irramw can 16.57 per unit per mordlt 18.40 per unit per month* Marnnl In Cirri" Can 2xAvk. Collection 20.72 per unit per mouth 22.55 per unit per north* iAdditbinal Residential Carts for Individual or Master -Billed Customers Refuse Cads 96 Gallon Carts $ 6.66 cer cartcer month 64 Gallon Cads $ 5.32 per cartcer mouth 32 Gallon Carts $ 4.01 per cartcer month I Organic Materials or Recyclable Materials Cart Other Residential Services Extra Pick -tip of a8 Carts (won Customer realest only) Residential Cart Contamination fee Replacement Kitchen Pail ( upon Cr stonier regtest only) Bulcv Item Pick- tcs Sugle-Fanuly- rtoludes fotr itens Multi-Faxmly Comdex - includes fou items (per Section 4.5.2) B,&yItens - Over a otted4 itemrs per pkkLp 6.66 cer cartcer montlu 1 5.32 per cart per marith 4.01 per cart cer rrorth i1 per cart per north $ 2.95 per cart per month I 50.00 per dcktro 10. 00 per cart per occurence Actual Contractor cost plus 7.00 delivery fee no c}arne o charge 14.91 per additional item 50.00 cer vickw 10.00 per cart per occurrence Actual Contractor cost plus 7.00 delivery fee no clarke no Charge 14.91 per additmr at item Bulky Item Pickup- Mtilti- Famdy Complexes over allotted Fick -ups 6288 per pickup 6288 per prktp per Sectkm4.5.2Ritemkff) Restart Fee - (2) $ 21. 26 per mctrrence 21.26 per occtmence Retuned Check Fee $25. 26 percdeck 25.26 percheck Cart Exchange - Entire HOA Section4.3.1.2 $ 6.00 per cart 6.00 per cart HHW Service Charge (3) $ 19.58 per stop 19.58 per stop These Residential rates are subject to the special rate adjustment phase -fir idenhied in Section 6.9. 1) Per urtt for single and Multi-Fardly D%vilings with Can service. 2) Following voluntary or involuntary suspension of service. 3) Conpany to invoice the city for at-home H IN Collection service per section 4.7.14.A.9. 4) Disabled Persons, identified as those meting the DMV requirement form-Pemanent disabled patki g placard, shall receive such service Porno additional charge per Section 43.4. City of Palm Desert 3-2 March 10, 2022 EXHIBIT 3. INITIAL RATES 3B - Commercial Maximum Rates Commercial Solid Waste Service Rates - Effective Avril 1, 2022 - T une 30. 2023 k Pickups per Week I Extra Container Size 1 2 3 4 5 6 Pickup 1 Refit,-, Cut 15. 14 30.24 45.41 60. 52 $ I 75.66 90.81 15.40 12 Clbic Yard Bin 96.22 168.71 241.74 314.01 1 $ 386.82 506.40 45.03 13 Carr Yard Bin 126.71 226.41 295.31 416.13 1 $ 516.36 616.25 61.69 14 Cdric Yazd Bin 174.20 292.34 414.44 536.99 $ 687.67 771.56 83.37 16 Cubic Yard Bin 264.00 443.82 630.02 816.09 $ 986.14 1,174.21 125.09 Commercial Recvclin¢_ Service Rates - Effective Avril 1, 2022 - Tune 30.2023 of Trash Service Rate: 35.00% Container Size I 1 kkVs per Week I Extra 1 2 3 4 5 6 Pickup IRecwkCart 5.30 10.59 15.89 21.18 26.48 31.78 5.39 12 Cdrr Yazd Bin 33.68 59.05 84. 61 109.90 135.39 177.24 15.76 13 Crbr Yard Bin 44.35 79.24 103.36 145.64 180.73 215.69 21.59 14 Cdbic Yard Bin 60.97 102.32 145.05 187.95 240.68 270.04 29.18 16 Ctbic Yard Bin 92.40 155.34 220.51 285.63 345.15 410.97 43.78 City of Palm Desert 3-3 March 10, 2022 EXHIBIT 3. INITIAL RATES 3B - Commercial Maximum Rates Commercial Oreanic Materials Service Rates - Effective Avril1. 2022 - tune 30, 2023 Container Size l Greemvaste Only Cart 11- 64-Gallon Cart 12 - 64-GalbnCarts 13 - 64-Gallon Carts 14 - 64-GanonCarts Additional64-Gallon Carts above 4, per Cart) I1 Cubic Yard Bin 12 Cubic Yard Bin Pickups per Week Extra Pickup12345 11.83 23.61 35.45 47.25 59. 08 11.92 74.81 149.56 224.33 299.09 373.88 21.80 133.66 267.32 400.97 534.65 668.30 40.85 188.59 389.06 565.76 754.35 942.96 55. 09 235.58 471.12 706.70 942.27 1,177.84 73.47 57.12 $ 114.12 $ 171.31 $ 228.39 $ 285.50 $ 91.81 168.30 $ 322.31 $ 490.61 $ 658.91 $ 827.22 $ 50.49 218.71 $ 423.12 $ 641.83 $ 860.54 $ 1,079.25 $ 65.61 Other Commercial Service Rates -Effective Avril 1. 2022 - T une 30, 2023 Description Rate ITenporary Front Erd Load Bin- ntol delivery, pickup, and disposal 6 166.73 Tenporary Front End Load Bin - additiorel durps $ 166.73 Contanw ated Recycling Or Orgu do Materials Contairer Charge - per Container (Refuse ryE,M,ra, Pickupatvw) Re -Start Fee - follovvicug volurtW or i uhrtary suspension of service $ 24.46 j Retuned Check Fee $ 25.44 Lockhr; Bun Fee - Monthly charw based onrurber of pick upshvk. $ 11.45 Bin CkarirgEmlosure Clean- upCharW- for over9ovuedbins,after required warrir s $ 50. 06 Errurw- cv Service - hourty rate for ore crew nwrber and ore collection truck $ 115.13 City of Palm Desert 3-4 March 10, 2022 EXHIBIT 3. INITIAL RATES 3C — Roll -Off and Temporary Service Maximum Rates Roll Off Service Rates - Effective April 1, 2022 - Tune 30, 2023 Description Rate Per Pull or Per Ton Standard. Reftse Pull Charge (b and c) 175.62 Standard Recyclable Matenals,Orgark Materiak,ConsbactYon& Demolition Pull Charge (b and 166.80 c) Compactor Pull Charge (c) 283.44 j Und0 Disposal Charge actual cost (a) Source Separated Recyclable Materials Per Ton Charge acttal cost l neenwaste Only Per Ton ChnW actual cost 10wrw Materials Per Ton Charge achal cost lConst rttion and Dermlition0 sposal Charge actral cost a) The Disposal charge per ton includes: landfill tipping fee (actual cost) plus $8.25 per ton. b) Tenporary Roll -Off Custorrers nay be charged a delivery charge, a pull charge, plus four tons (4) of Disposal or applicable rretenal per ton charge. If tonnage is less than four (4) tons or greater than four (4) tons, the custorrer will be credited,hharged accordingly. c) Roll -Off Custorrers tray be charged a Roll -Off Boxrental fee after seven (7) business days if there has been no pulls within the 7- day period. Roll -Off Custorrers who are using Roll -Off Boles for Recyclable Materials or Organic Materials are not charged this rental fee. Other Roll -Off Service Rates - Effective April 1, 2022 - Tune 30, 2023 Description Rate Roll -Off Organic Materials and Recyclable Materials Coniam ation Fee - Does not apply to C&D Debris Ctstomthei erswhoreedr materials Processed achieve the Ca)Green Billed at Trash mrnimrner> fs. Rate JRoll- OffDehmy, RelocationCharW, Re -Start Fee $ 24.90 Renal Fee Per Day for Reftse $ 10.81 Rehmed Check Fee Is 25.44 City of Palm Desert 3-5 March 10, 2022 EXHIBIT 4: RATE ADJUSTMENT FORMULA EXHIBIT 4. RATE ADJUSTMENT FORMULA 4A. Residential Rate Adjustment 4B. Commercial Rate Adjustment Roll -off Box and Other Services Rate Adjustments City of Palm Desert 4-1 March 10, 2022 EXHIBIT 4. RATE ADJUSTMENT FORMULA EXHIBIT 4A Residential Rate Adjustment Example Onlv Step One: Deduct City fees from gross rate revenue Revenue Component (including Franchise Fees) Annual Amount (a)l Gross Residential Rate Revenue $ 4,003,231 Residential Franchise, VIF, City Recycle Fees and Taxroll Credits (b) $ 799,747 Residential Rate Revenue Net of Fees and Credits $ 3,203, 484 Step Two: Determine disposal expense and service revenue Revenue Component (net of Franchise Fees) Annual Amount percentage of Rate Revenue Net of City Fees Residential Rate Revenue Net of Fees (c) $ 3,203, 484 100.00% ILess: Actual Residential Refuse Disposal Expense $ 654. 090 20.42% Residential Service Revenue $ 2,549, 394 79.58% Step Three: Calculate percentage change in adjustment factors Index Rate Component Adjustment Factor Old New Change Percent Change d) Disposal Tipping Fee per Ton 47.55 48.97 $ 1.42 2 99%IGarbageandTrashCollectionIndex (Capped at 5%) (a) 486. 708 508.190 21.48 4.41 % Step Four: Calculate weighted percentage change in single family rates Components of Actual Revenue Component Rate Component Percent Weighted Rate Weight (a) Change (f) Adjustment Refuse Disposal 20.42% 2.99% 0.61% Service 79. 58% 4.41% 3.51% Change 100.00% 4.12% Total Rate % Adjustment 4.12% Step Five: Apply weighted percentage change to single family rates Service (g) Current Monthly Rate Weighted Rate Rate Adjusted Monthly h) Adjustment (i) Change Rate (j) 90-gallon automated cart collection 12.74 4.12% $0.52 13.26 Manual curbside collection 13. 95 4.12% $0.57 14.52 Walk-in service fee 10.53 4.12% $0.43 10.96 a) CUUROOOOSEHGO2 Garbage and trash collection in U.S. city average, all urban consumers, not seasonally adjusted. For the twelve months ending the December before the July 1 rate adjustment. b) City fees to be calculated per Section 3.1 of the Agreement. c) From Step One above. d) 'Index Change" multiplied by "Allowable Portion of Index Change." a) From "Percentage of Rate Revenue Net of Franchise Fees" in Step Two. f) From last column in Step Three. g) Not all rate categories are shown in this example. h) The weighted rate adjustment should be applied to the total rate, including all fees. i) From weighted rate adjustment in Step Four. 0) "Current Monthly Rate" plus "Rate Change." City of Palm Desert 4-2 March 10, 2022 EXHIBIT 4. RATE ADJUSTMENT FORMULA EXHIBIT 4B Commercial Rate Adjustment Refuse, Recycling, and Organic Materials Rates) Example Only I Step One: Deduct City fees from gross rate revenue Revenue Component (including franchise fees) Annual Amount (a) Gross Commercial and Multi -Family Rate Revenue $ 5,469, 563 Commercial and Multi -Family Franchise, VIF and City Recycle Fees (b) $ 770,243 Commercial and Multi -Family Rate Revenue Net of Fees $ 4,699,320 I Step Two: Determine disposal expense and service revenue Rate Revenue Revenue Component (net of Franchise Fees) Annual Amount Net of Commercial and Multi -Family Rate Revenue Net of Fees (c) $ 4,699,320 100.00% Less: Actual Commercial and Multi -Family Disposal Expense $ 1.254.570 26.70% Commercial and Multi -Family Service Revenue less Disposal $ 3,444,751 1 73.30% Step Three: Caluclate percentage change in adjustment factors Rate Component Adjustment Factor Old New Index Change Percent Change d) Disposal Tipping Fee per Ton 47. 55 $ 48. 97 $ 1.42 2.99% Garbage and Trash Collection Index (a) 486.708 508.190 21.48 4.41 % Step Four: Calculate weighted percentage change in single family rates Components of Actual Revenue Component Weight Rate Component Percent Weighted Rate a) Change (f) Adjustment Refuse Disposal 26.70% 2.99% 0.80% Service 73. 30% 4.41% 3.24% Total 100.00 % 4.04% Step Five: Apply weighted percentage change to commercial and multi -family rates Service (g) One 3-yard Refuse Bin 1x/week One 3-yard Refuse Bin 2x/week One 3-yard Refuse Bin 3x/week One 3-yard Refuse Bin 4x/week One 3-yard Refuse Bin 5x/week One 3-yard Refuse Bin 6x/week One 64-gallon Organic Materials Cart Ix/week Extra Refuse Bin 3-yard empty Current Monthly Weighted Rate Adjusted Monthly` Rate (h) Adjustment (1) pate Change Rate (j) 11 115.33 4.04% 4.66 119.99 206.06 4.04% 8.32 214.36 268.78 4.04% 10. 86 279.64 378.73 4.04% 15.30 394.03 469.96 4.04% 18.99 488.95 560.87 4.04% 22.66 583.53 70.84 4.04% 2.86 73.70 56.15 4.04% 2.27 58.42 a) CUUR0000SEHG02 Garbage and trash collection in U.S, city average, all urban consumers, not seasonally adjusted. For the twelve months ending the December before the July 1 rate adjustment. Capped at 5%. b) City fees to be calculated per Section 3.1 of the Agreement. c) From Step One above. d) 'Index Change" multiplied by "Allowable Portion of Index Change." a) From 'Percentage of Rate Revenue Net of Franchise Fees" in Step Two. f) From last column in Step Three. g) Not all rate categories are shown in this example. h) The weighted rate adjustment should be applied to the total rate, including all fees. 1) From weighted rate adjustment in Step Four. 0) "Current Monthly Rate" plus "Rate Change." City of Palm Desert 4-3 March 10, 2022 EXHIBIT 4. RATE ADJUSTMENT FORMULA EXHIBIT 4C Roll -Off Box and Other Services Rate Adjustments Example Onlv' Step One: Calculate percentage change in CUUR0000SEHG02 Garbage and trash collection in U.S. city average Allowable Rate Adjustment Factor Old New Index Change Portion of Component Index Change Percent Change(b) Garbage and Trash Collection Index (Capped at 5%) ( a) 486.708 508.190 21.48 100.0%j 4.41%( Step Two: Apply 100% of percentage change in Garbage and trash collection Index to Service Portion of Roll -off Rates Current Weighted Rate Adjusted Service Monthly Rate Adjustment (h) Rate Change Monthly Rate Standard Roll -off Charge Per Load (20yd to 30yd box) (b) 152.83 4.41% 6.75 159.58 Standard Roll -off Charge Per Load (40yd Box)) (b) 160.92 4. 41% 7.10 168.02 Compactor Charge Per Load 259.70 4.41%1 11.46 271.16 Relocation Charge 22.81 4.41% 1.01 23.82 Delivery Charge 22.81 4.41% 1.01 23.82 Note: Rate adjustment for "Other Services" not shown, but the adjustment would follow the same methodology. a) CUUROOOOSEHGO2 Garbage and trash collection in U.S. city average, all urban consumers, not seasonally adjusted. For the twelve months ending the December before the July 1 rate adjustment. b) Excluding Disposal. Disposal is billed at actual cost based on the tipping fee per ton at landfill used by the Company, plus 8.25/ton, multiplied by the number of tons. City of Palm Desert 4-4 March 10, 2022 EXHIBIT 5: CORPORATE GUARANTY EXHIBIT 5. CORPORATE GUARANTY Guaranty THIS GUARANTY (the "Guaranty) is given as of the _ day of _, 2022. THIS GUARANTY is made with reference to the following facts and circumstances: A. Burrtec Waste and Recycling, LLC, hereinafter ("Owner") is a corporation organized under the laws of the State of California, and is an Affiliate of Burrtec Waste Group, Inc. (Guarantor). B. Owner and the City of Palm Desert ("the City") have negotiated an Agreement for Collection, Processing, and Disposal of Solid Waste dated as of hereto. hereinafter "Agreement"). A copy of this Agreement is attached C. It is a requirement of the Agreement, and a condition to the City entering into the Agreement, that Guarantor guaranty Owner's performance of the Agreement. D. Guarantor is providing this Guaranty to induce the City to enter into the Agreement. NOW, THEREFORE, in consideration of the foregoing, Guarantor agrees as follows: 1. Guaranty of the Agreement. Guarantor hereby irrevocably and unconditionally guarantees to the City the complete and timely performance, satisfaction and observation by Owner of each and every term and condition of the Agreement which Owner is required to perform, satisfy or observe. In the event that Owner fails to perform, satisfy or observe any of the terms and conditions of the Agreement, Guarantor will promptly and fully perform, satisfy or observe them in the place of the Owner or cause them to be performed, satisfied or observed. Guarantor hereby guarantees payment to the City of any damages, costs or expenses which might become recoverable by the City from Owner due to its breach of the Agreement. 2. Guarantor's Obligations Are Absolute. The obligations of the Guarantor hereunder are direct, immediate, absolute, continuing, unconditional and unlimited, and with respect to any payment obligation of Owner under the Agreement, shall City of Palm Desert 5-1 March 10, 2022 EXHIBIT 5. CORPORATE GUARANTY constitute a guarantee of payment and not of Collection, and are not conditional upon the genuineness, validity, regularity or enforceability of the Agreement. In any action brought against the Guarantor to enforce, or for damages for breach of, its obligations hereunder, the Guarantor shall be entitled to all defenses, if any, that would be available to the Owner in an action to enforce, or for damages for breach of, the Agreement (other than discharge of, or stay of proceedings to enforce, obligations under the Agreement under bankruptcy law). 3. Waivers. Except as provided herein the Guarantor shall have no right to terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligations under it for any reason whatsoever, including, without limitation: (1) the insolvency, bankruptcy, reorganization or cessation of existence of the Owner; (2) the actual or purported rejection by a trustee in bankruptcy of the Agreement, or any limitation on any claim in bankruptcy resulting from the actual or purported termination of the Agreement; (3) any waiver with respect to any of the obligations of the Agreement guaranteed hereunder or the impairment or suspension of any of the City's rights or remedies against the Owner; or (4) any merger or consolidation of the Owner with any other corporation, or any sale, lease or transfer of any or all the assets of the Owner. Without limiting the generality of the foregoing, Guarantor hereby waives the rights and benefits under California Civil Code Section 2819. The Guarantor hereby waives any and all benefits and defenses under California Civil Code Section 2846, 2849, and 2850, including without limitation, the right to require the City to (a) proceed against Owner, (b) proceed against or exhaust any security or collateral the City may hold now or hereafter hold, or (c) pursue any other right or remedy for Guarantor's benefit, and agrees that the City may proceed against Guarantor for the obligations guaranteed herein without taking any action against Owner or any other guarantor or pledgor and without proceeding against or exhausting any security or collateral the City may hold now or hereafter hold. City may unqualifiedly exercise in its sole discretion any or all rights and remedies available to it against Owner or any other guarantor or pledgor without impairing the City's rights and remedies in enforcing this Guaranty. The Guarantor hereby waives and agrees to waive at any future time at the request of the City to the extent now or then permitted by Applicable Law, any and all rights which the Guarantor may have or which at any time hereafter may be conferred City of Palm Desert 5-2 March 10, 2022 EXHIBIT 5. CORPORATE GUARANTY upon it, by statute, regulation or otherwise, to avoid any of its obligations under, or to terminate, cancel, quit or surrender this Guaranty. Without limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of the following shall not affect the liability of the Guarantor hereunder: (a) at any time or from time to time, without notice the Guarantor, performance or compliance herewith is waived; (b) any other of any provision of its Agreement indemnification with respect to Owner's obligations under the Agreement or any security therefore is released or exchanged in whole or in part or otherwise dealt with; or (c) any assignment of the Agreement is effected which does not require the City's approval. The Guarantor hereby expressly waives, diligence, presentment, demand for payment or performance, protest and all notices whatsoever, including, but not limited to, notices of non-payment or non-performance, notices of protest, notices of any breach or default, and notices of acceptance of this Guaranty. If all or any portion of the obligations guaranteed hereunder are paid or performed, Guarantor's obligations hereunder shall continue and remain in full force and effect in the event that all or any part of such payment or performance is avoided or recovered directly or indirectly from the City as a preference, fraudulent transfer or otherwise, irrespective of (a) any notice of revocation given by Guarantor or Owner prior to such avoidance or recovery, and (b) payment in full of any obligations then outstanding. 4. Term. This Guaranty is not limited to any period of time, but shall continue in full force and effect until all of the terms and conditions of the Agreement have been fully performed or otherwise discharged and Guarantor shall remain fully responsible under this Guaranty without regard to the acceptance by the City of any performance bond or other collateral to assure the performance of Owner's obligations under the Agreement. Guarantor shall not be released of its obligations hereunder so long as there is any claim by the City against Owner arising out of the Agreement based on Owner's failure to perform which has not been settled or discharged. 5. No Waivers. No delay on the part of the City in exercising any rights under this Guaranty or failure to exercise such rights shall operate as a waiver of such rights. No notice to or demand on Guarantor shall be a waiver of any obligation of Guarantor or right of the City to take other or further action without notice or demand. No modification or waiver of any of the provisions of this Guaranty shall be effective City of Palm Desert 5-3 March 10, 2022 EXHIBIT 5. CORPORATE GUARANTY unless it is in writing and signed by the City and by Guarantor, nor shall any waiver be effective except in the specific instance or matter for which it is given. 6. Attornev's Fees. In addition to the amounts guaranteed under this Guaranty, Guarantor agrees in the event of Guaranty's breach of its obligations including to pay reasonable attorney's fees and all other reasonable costs and expenses incurred by the City in enforcing this Guaranty, or in any action or proceeding arising out of or relating to this Guaranty, including any action instituted to determine the respective rights and obligations of the Parties hereunder. 7. Governine Law: Turisdiction. This Guaranty is and shall be deemed to be a contract entered into in and pursuant to the laws of the State of California and shall be governed and construed in accordance with the laws of California without regard to its conflicts of laws, rules for all purposes including, but not limited to, matters of construction, validity and performance. Guarantor agrees that any action brought by the City to enforce this Guaranty may be brought in any court of the State of California and Guarantor consents to personal jurisdiction over it by such courts. Guarantor appoints the following person as its agents for service of process in California: With a copy by certified mail to: 8. Severability. If any portion of this Guaranty is held to be invalid or unenforceable, such invalidity will have no effect upon the remaining portions of this Guaranty, which shall be severable and continue in full force and effect. 9. Bindine On Successors. This Guaranty shall inure to the benefit of the City and its successors and shall be binding upon Guarantor and its successors, including transferee(s) of substantially all of its assets and its shareholder(s) in the event of its dissolution or insolvency. City of Palm Desert 5- 4 March 10, 2022 EXHIBIT 5. CORPORATE GUARANTY 10. Authority. Guarantor represents and warrants that it has the corporate power and authority to give this Guaranty, that its execution of this Guaranty has been authorized by all necessary action under its Article of Incorporation and By -Laws, and that the Person signing this Guaranty on its behalf has the authority to do so. 11. Notices. Notice shall be given in writing, deposited in the U.S. mail, registered or certified, first class postage prepaid, addressed as follows: To the City: City Manager City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 with a copy to the City Counsel at the same address. To the Guarantor: By: title) By: title) City of Palm Desert 5-5 March 10, 2022 EXHIBIT 6: COMPANY'S FAITHFUL PERFORMANCE BOND EXHIBIT 6. COMPANY'S FAITHFUL PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That . a California , as PRINCIPAL, and a Corporation organized and doing business by virtue of the laws of the State of California, and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings required or authorized by the laws of the State of California, as SURETY, are held and firmly bound to City, hereinafter called OBLIGEE, in the penal sum of One Million Dollars($1,000,000.00) lawful money of the United States, for the payment of which, well and truly to be made, we and each of us hereby bind ourselves, and our and each of our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT: WHEREAS, the above bounden PRINCIPAL has entered into an Agreement, entitled "INTEGRATED SOLID WASTE MANAGEMENT SERVICES" with the City of Palm Desert, to do and perform the following work, to wit: Collect, Process and Dispose of Solid Waste generated within City, in accordance with the Agreement. NOW, THEREFORE, if the above bounden PRINCIPAL shall well and truly perform, or cause to be performed each and all of the requirements and obligations of said Agreement to be performed by said PRINCIPAL, as in said Agreement set forth, then this BOND shall be null and void; otherwise it will remain in full force and effect. And the said Surety, for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any wise affect its obligations on this BOND, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or to the work or to the specifications. IN WITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be duly signed and sealed this DAY OF 2022. City of Palm Desert 6-1 March 10, 2022 EXHIBIT 6. COMPANY'S FAITHFUL PERFORMANCE BOND a California Corporation a PRINCIPAL) SEAL) SURETY a ATTORNEY IN FACT) SEAL) City of Palm Desert 6-2 March 10, 2022 EXHIBIT 7: NOTARY CERTIFICATION EXHIBIT 8: PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Company has selected and arranged with City approval for Discarded Materials to be Transported to Approved Facilities for transfer, Source Separated Recyclable Materials Processing, Source Separated Organic Materials Processing, C&D Processing, and Disposal. The Approved Facilities which are owned by the Company or its Affiliates Affiliated Approved Facilities') shall comply with the standards specified in this Exhibit. Pursuant to Article 4 of the Agreement, if the Company does not own or operate one or more of the Approved Facilities, "Third Party Approved Facilities," which as of the date hereof includes the Approved C&D Processing Facility and the Approved Disposal Facility, Company shall enter into an agreement with the Owner or Facility operator of such Third Party Approved Facility(ies) and the requirements of Article 4 of the Agreement and this Exhibit shall pertain to such use of the Third Party Approved Facility(ies) by Company under this Agreement. 8.1 General Requirements A. Overview. Company agrees to Transport and deliver Discarded Materials it Collects in the City to an appropriate Approved Facility(ies) for transfer, Processing, or Disposal, as applicable for each type of Discarded Material. As of the Commencement Date of this Agreement, the Approved Facilities, which were selected by Company and reviewed and approved by the City, are listed in the table on the following page and in the definitions in Article 1 of this Agreement. Company will perform all transfer, Processing, and Disposal services at Approved Facilities in accordance with Applicable Law, standard industry practice, and specifications and other requirements of this Agreement. City of Palm Desert 8-1 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Annroved Facilities Description of Processing Approved Methodology Material Type Transfer Facility Approved Facility Material Recovery if applicable) Processing or Disposal Facility) Facility, composting Facility, anaerobic digestion, etc.) Source Separated Edom Hill Transfer Station Approved Source Separated Recyclable All Facilities are Material Recyclable Materials SWIS: (33-AA-0296) Materials Processing Facility(ies): Recovery Facilities 70-100 Edom Hill Road West Valley Materials Recovery Facility Cathedral City, CA 92234 SWIS: (36-AA-0341) Owner: Riverside County 13373 Napa Street Department of Waste Resources Fontana, CA 92335 Operator: Burrtec Waste Owner: West Valley MRF, LLC Industries, Inc. Operator: West Valley Recycling and Transfer Robert A. Nelson Transfer & Material Recovery Facility SWIS: (33-AA-0258) 1830 Agua Mansa Road Riverside, CA 92509 Owner: Agua Mansa Properties Operator: Yeager, E L Construction Co East Valley Recycling SWIS: (36-AA-0453) 1150 & 1250 South Tippecanoe Ave. San Bernardino, CA 92408 City of Palm Desert 8-2 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS D&cription of Processing Approved Methodology Material Type Transfer Facility Approved Facility (Material Recovery if applicable) (Processing or Disposal Facility) Facility, composting Facility, anaerobic Source Separated Edom Hill Transfer Station Organic Materials SWIS: (33-AA-0296) 70-100 Edom Hill Road Cathedral City, CA 92234 Owner: Riverside County Department of Waste Resources Operator: Burrtec Waste Industries, Inc. Owner: Burrtec Waste Industries, Inc. Operator: Burrtec Waste Industries, Inc. SANCO Services, LP SWIS: (37-AA-0906) 1044 W Washington Ave. Escondido, CA 92025 Owner: SANCO Services, LP Operator: SANCO Services Approved Organic Waste Processing Land application or Facility(ies): Compost Facility Edom Hill Transfer Station SWIS: (33-AA-0296) 70-100 Edom Hill Road Cathedral City, CA 92234 Owner: Riverside County Department of Waste Resources Operator: Burrtec Waste Industries, Inc. Edom Hill Compost SWIS: (33-AA-0376) 67780 Edom Hill Road City of Palm Desert 8-3 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Description of Processing Approved Methodology Material Type Transfer Facility Approved Facility (Material Recovery if applicable) (Processing or Disposal Facility) Facility, composting Facility, anaerobic digestion, etc.) Cathedral City, CA 92235 Owner: Burrtec Waste Industries, Inc. Operator: Burrtec Waste Industries, Inc. Coachella Valley Compost SWIS: (33-AA-0292) 87011 Landfill Road Coachella, CA 92236 Owner: Riverside County Department of Waste Resources Operator: Burrtec Waste Industries, Inc. Imperial Western Products, Inc. CDFA Commercial Feed License No.: 15340 86600 Avenue 54, Coachella CA 92236 Owner: Trent Trawick Owner Address: P.O. Box 1110, Coachella CA 92236 Operator: Imperial Western Products, Inc. City of Palm Desert 8-4 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Material Type Approved Transfer Facility if applicable) Approved Facility Processing or Disposal Facility) Description of Processing Methodology Material Recovery Facility, composting Facility, anaerobic digestion, etc.) Operator Address: 86600 Avenue 54, Coachella CA 92236 Refuse (Gray Edom Hill Transfer Station Approved Disposal Facility(ies): All Facilities are landfills Container) SWIS: (33-AA-0296) Lamb Canyon Sanitary Landfill for Disposal 70-100 Edom Hill Road SWIS: (33-AA-0007) Cathedral City, CA 92234 16411 State Hwy 79 Owner: Riverside County Beaumont, CA 92223 Department of Waste Resources Owner: Riverside County Department Operator: Burrtec Waste of Waste Resources Industries, Inc. Operator: Riverside County Department of Waste Resources Coachella Valley Transfer Station CVTS) Badlands Sanitary Landfill SWIS: (33-AA-0248) SWIS: (33-AA-0006) 87011-A Landfill Road 31125 Ironwood Avenue Coachella, CA 92236 Moreno Valley, CA 92555 Owner: Riverside County Owner: Riverside County Department Department of Waste Resources of Waste Resources Operator: Coachella/Indio TS. Operator: Riverside County Authority Department of Waste Resources Salton City Solid Waste Site SWIS: (13-AA-0011) 935 W. Highway 86 City of Palm Desert 8-5 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Description of Processing MethodologyApproved Approved Facility (Material RecoveryMaterialTypeTransferFacility ( Processing or Disposal Facility) Facility, compostingifapplicable) Facility, anaerobic digestion, etc.) Salton City, CA 92275 Owner: County of Imperial, Public Works Operator: Burrtec Waste Industries, Inc. El Sobrante SWIS: (33-AA-0217) 10910 Dawson Canyon Road Corona, CA 91719 Owner: USA Waste Service of California, Inc. Operator: USA Waste Service of California, Inc. C&D Materials Approved C&D Processing Facility(ies): C&D Processing Desert Recycling Inc. SWIS: (33-AA-0309) 27105 Sierra Del Sol Thousand Palms, CA 92276 Owner: Robert and Stephanie Mehring Operator: Bob Mehring Coachella Valley Compost SWIS: (33-AA-0292) City of Palm Desert 8-6 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Description of Processing Approved Methodology Material Type Transfer Facility Approved Facility (Material Recovery if applicable) (Processing or Disposal Facility) Facility, composting Facility, anaerobic dieestion. etc.) 87011 Landfill Road Coachella, CA 92236 Owner: Riverside County Department of Waste Resources Operator: Burrtec Waste Industries, Inc. Remainder of page intentionally blank) City of Palm Desert 8-7 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS B. Facility Capacity Guarantee. Company shall guarantee sufficient capacity over the Term of this Agreement at any Approved Facility to transfer (if applicable), Transport, and Process all Source Separated Recyclable Materials, Yard Trimmings, Food Waste, and Source Separated Organic Materials Collected under this Agreement and to Transfer (if applicable), Transport all Refuse Collected under this Agreement. Company shall cause the Affiliated Approved Facility(ies) to Recycle or Process the Discarded Materials as appropriate; market the Source Separated Recyclable Materials, and Source Separated Organic Materials recovered from such operations. Company shall cause Approved Third -Party Facility(ies) for Disposal to Dispose of Refuse. Company shall provide the City, upon request, with documentation demonstrating the availability of such Transfer if applicable), Transport, Processing, and Disposal capacity as described below. 1. Company or Affiliate is Owner of Approved Facilities: City may request that Company report aggregate Facility capacity committed to other entities through Company's contracts. City, or its agent, will have the right to seek verification of Company's reported aggregate capacity through inspection of pertinent sections of Company's contracts with such entities to determine the duration of Company's commitment to accept materials from such entities and the type and volume of materials Company is obligated to accept through the contracts. In addition, City, or its agent, will have the right to review tonnage reports documenting the past three (3) years of tonnage accepted at the Approved Facility(ies) by such entities. To the extent allowed by law, City, or its agent(s), agree to maintain the confidentiality of the information reviewed related to the individual contracts with other contracting entities and agree to review all related material at the Company's office and will not retain any copies of reviewed material. Company will fully cooperate with the City's request and provide City and its agent(s) or access to Company's records. 2. Company's subcontractor is the Owner and/or operator of Approved third party Facilities: Upon request, Company shall demonstrate that such capacity is available and allocated to the City by provision of its agreement with the Approved Facility(ies) Owner(s)/operator(s) (subcontractor(s)) documenting the subcontractor's guarantee to accept the Discarded Materials Company delivers over the Term of this Agreement. C. Facility Permits. Company or Facility operator shall keep all existing permits and approvals necessary for use of the Approved Facility(ies), in full regulatory compliance. Company, or Facility operator of such Facility, shall, upon request, City of Palm Desert 8-8 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS provide copies of permits and/or notices of violation of permits to the City. D. Transfer Facility. Company may rely on a transfer Facility and, in such case, shall Transport and deliver some or all Discarded Materials to an Approved Transfer Facility for pre -Processing (if applicable) and transfer. At the transfer Facility, Discarded Materials shall be unloaded from Collection vehicles and loaded into large -capacity vehicles and Transported to the Approved Facility(ies) for Processing or Disposal, in a timely manner and in accordance with Applicable Law. Company or subcontractor shall perform the following pre -Processing activities at the Approved Transfer Facility included in the Approved Facilities Table above. If Company delivers some or all Discarded Materials to a transfer Facility, it shall receive assurances from Facility operator that Facility operator will Transport or arrange for Transport of the Discarded Materials to appropriate Approved Facility(ies) for Processing or Disposal, as applicable for each type of Discarded Material. In such case, Company shall receive written documentation from the Facility operator(s) of the Facilities used for Processing and Disposal of Discarded Materials. Company shall pay all costs associated with Transport, transfer, Processing, and/or Disposal of all Discarded Materials Collected in accordance with this Agreement, including marketing of recovered materials and Disposal of all Residue. Company shall comply with separate handling requirements in Section 8.2.13 of this Exhibit. E. Company -Initiated Change in Facility(ies). Company may change its selection of one or more of the Approved Facility(ies) following City Agreement Manager's written approval, which may be conditioned on various factors including, but not limited to: the performance of the current versus proposed Facility, the permitting status of and LEA inspection records related to the proposed Facility, the distance of the Facility from the City, and any other factor that may reasonably degrade the value received by the City. If Company elects to use a Facility(ies) that is(are) not listed on the then -current list of Approved Facility(ies) in this Exhibit, it shall submit a written request for approval to the City one hundred and twenty (120) days prior to the desired date to use the Facility and shall obtain the City Agreement Manager's/Director's written approval prior to use of the Facility. Company's compensation and Rates shall not be adjusted for a Company -initiated change in Facilities. F. Notification of Emergency Conditions. Company or Facility operator of each Approved Facility shall notify the City of any unforeseen operational restrictions City of Palm Desert 8-9 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS that have been imposed upon the Facility by a regulatory agency or any unforeseen equipment or operational failure that will temporarily prevent the Facility from Processing the Discarded Materials Collected under this Agreement. Company shall notify the City in accordance with the Agreement. G. Approved Facility Unavailable/Use of Alternative Facility. If Company is unable to use an Approved Facility due to a sudden unforeseen closure of the Facility or other emergency condition described in Section 8.1.17 of this Exhibit, Company may use an Alternative Facility provided that the Company provides verbal and written notice to the City Agreement Manager and receives written approval from the City Agreement Manager at least twenty-four (24) hours prior to the use of an Alternative Facility to the extent reasonably practical given the nature of the emergency or sudden closure. The Company's written notice shall include a description of the reasons the Approved Facility is not feasible and the period of time Company proposes to use the Alternative Facility. As appropriate for the type of Discarded Materials to be delivered to the Alternative Facility, the Alternative Facility shall meet the applicable Facility standards in this Agreement and shall be sent to: (i) an allowable Facility, operation, or used for an activity specified by pursuant to 14 CCR Section 18983.1(b) and not subsequently sent to Landfill Disposal; (ii) a transfer Facility; or, (iii) a Disposal Facility. If Company is interested in using an Affiliated Facility for Source Separated Organic Materials or Mixed Waste technology that is not listed above and not currently approved by CalRecycle, Company or Facility operator of the Facility shall be responsible for securing the approvals necessary from CalRecycle prior to the City's final approval of such Facility or activity, and shall do so in accordance with the procedures specified in 14 CCR Section 18983.2. If any Approved Facility specified in this Exhibit becomes unavailable for use by Company for Discarded Materials Collected in the City for a period of more than two (2) days, City may designate an Alternative Facility. The Parties agree that an Approved Facility shall only be deemed to be "unavailable" if one or more of the following has occurred: (i) a Force Majeure event/Uncontrollable Circumstance as described in Article 12 of this Agreement has occurred; (ii) a Facility has lost one or more permits to operate; (iii) a Facility has exhibited a pattern of violation through the receipt of repeated notices of violation from one or more regulatory agencies. Further, the Parties agree that a Facility shall only be deemed to be unavailable" if the lack of availability of the Facility is not due to Company's negligence, illegal activity, neglect, or willful misconduct. At City's request, Company shall research and propose Alternate Facility(ies) for the impacted Discarded Material(s), and shall submit a written analysis and recommendation to the City within five (5) days concerning the cost for use of Alternative Facility(ies) and any logistical changes that would be required to utilize such Alternative City of Palm Desert 8-10 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Facility(ies). City and Company will discuss the advantages and disadvantages of use of the potential Alternative Facility(ies) and City will designate the approved Alternative Facility(ies). The decision of the City shall be final. The change in Facility shall be treated as City -directed change in scope pursuant to Section 2.8 of this Agreement. In the event an Approved Facility becomes unavailable due to the negligence, illegal activity, neglect, or willful misconduct of Company, Company shall bear all additional costs for use of an Alternative Facility including increased Processing costs, Disposal Costs, Transportation costs, transfer costs, and all other costs. The table listing Approved Facilities in this Exhibit shall be modified accordingly to reflect the new City -Approved Facility(ies). If Company is not the Owner of the new Approved Facility, Company shall enter into an agreement with the Facility operator of the Alternative Facility to ensure compliance with the requirements of Article 4 of this Agreement and this Exhibit unless City Agreement Manager waives one or more requirements. H. Discarded Materials Monitoring/Waste Evaluation Requirements. Company shall conduct material sampling, sorting, and waste evaluations of various material streams as further described in Section 5.5 to meet or exceed SB 1383 Regulations. I. Compliance with Applicable Law. Company (including its Affiliates) warrants throughout the Term that the Approved Facilities are respectively authorized and permitted to accept Discarded Materials in accordance with Applicable Law and are in full compliance with Applicable Law. J. Records and Investigations. Company shall maintain accurate records of the quantities of Discard Materials Transported to and Accepted at the Approved Facility(ies) and shall cooperate with City and any regulatory authority in any audits or investigations of such quantities. K. Inspection and Investigations. An authorized City employee or agent shall be allowed to enter each Facility during normal working hours in order to conduct inspections and investigations in order to examine Facility operations; provided such employee or agent follows all appropriate Facility procedures and safety rules; Processing activities; contamination monitoring; material sampling and sorting activities, including inspection of end -of -line materials after sorting; and records pertaining to the Facility in order to determine compliance with Applicable Law, including SB 1383, to understand protocols and results, and City of Palm Desert 8-11 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS conduct investigations, if needed. Company shall permit City or its agent to review or copy, or both, any paper, electronic, or other records required by City. 8. 2 Processing Standards A. Recovery Required. Company agrees to Transport and deliver all Source Separated Recyclable Materials, Source Separated Organic Materials, and C&D Collected under this Agreement to an Approved Facility for Processing as applicable for each material type. Company or Facility operators of Approved Facilities shall conduct Processing activities for all Source Separated Recyclable Materials, Source Separate Organic Materials, and C&D to recover Recyclable Materials and Organic Materials to reduce Disposal. The Processing shall be performed in a manner that minimizes Disposal to the greatest extent practicable and complies with Applicable Law, including SB 1383. Pursuant to Sections 4.7.11 and 4.7.18 of this Agreement, Company may Dispose of Organic Waste from illegal Disposal Sites, Special Cleanup Events, and quarantined Organic Waste rather than Process such materials. B. Separate Handling Requirements 1. Company or Facility operators of Approved Facilities shall keep Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, and C&D separate from each other and separate from other Solid Waste streams and shall Process the materials separately from each other and separately from other Solid Waste streams. 2. Pursuant to 14 CCR Section 17409.5.6(a)(1), remnant Organic Waste, as defined by 14 CCR Section 17409.5.6(a)(1), separated from the Refuse for recovery can be combined with Organic Waste removed from the Source Separated Organic Materials for recovery once the material from the Source Separated Organic Materials has gone through the Organic Waste recovery measurement protocol described in 14 CCR Section 17409.5.4. 3. Pursuant to 14 CCR Section 17409.5.6(b), Source Separated Organic Materials and Organic Waste removed from Mixed Waste for recovery shall be: a. Stored away from other activity areas in specified, clearly identifiable areas as described in the Facility Plan or transfer/Processing Report which are defined in 14 CCR); and, b. Removed from the Facility consistent with 14 CCR Section 17410.1 and City of Palm Desert 8- 12 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS either: i. Transported only to another Facility or operation for additional Processing, composting, in -vessel digestion, or other recovery as specified in Section 8.2.F of this Exhibit; or, ii. Used in a manner approved by local, State, and federal agencies having appropriate jurisdiction. C. Residue Disposal. Company shall be responsible for Disposal of Residue from Processing activities at its own expense and may select the Disposal Facility(ies) to be used for such purpose. D. Processing Facility Residue Guarantees. Upon request of the City, Company shall provide a certified statement from the Facility operators of the Approve Facilities documenting its Residue level. The Residue level shall be calculated separately for each material type and for each Approved Facility used for Recycling and Processing. The Residue level calculation method shall be reviewed and approved by the City. E. Source Separated Recyclable Materials Processing Standards. Company shall arrange for Processing of all Source Separated Recyclable Materials at a Facility that recovers materials designated for Collection in the Recyclable Materials Container and in a manner deemed not to constitute Landfill Disposal pursuant to 14 CCR Section 18983.1(a) which states that Landfill Disposal includes final deposition of Organic Waste at a Landfill or use of Organic Waste as Alternative Daily Cover (ADC) or Alternative Intermediate Cover (AIC). The Approved Recyclable Materials Processing Facility used by the Company shall comply with transfer/Processing Facility requirements in SB 1383 as applicable. F. Source Separated Organic Materials Processing Standards 1. Company shall arrange for Processing of all Source Separated Organic Materials at a Facility that recovers Source Separated Organic Waste and in a manner deemed not to constitute Landfill Disposal pursuant to 14 CCR Section 18983.1(a) which states that Landfill Disposal includes final deposition of Organic Waste at a Landfill or use of Organic Waste as Alternative Daily Cover or Alternative Intermediate Cover. Company's compliance with the ADC and AIC prohibition shall occur no later than January 1, 2020, in recognition of AB 1594, under which Yard Trimmings and green material used as ADC shall not constitute Diversion as of that date. City of Palm Desert 8-13 March 10; 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS 2. Company shall arrange for Source Separated Organic Materials Processing at an Approved Organic Waste Processing Facility that meets one or more of the following criteria, and such Facility or operation is capable of and permitted to accept and recover the types of Organic Wastes included in the Source Separated Organic Materials: a. A "Compostable Material Handling Operation or Facility" as defined in 14 CCR Section 17852(a)(12); small composting Facilities that are otherwise excluded from that definition; or Community Composting as defined within 14 CCR Section 18982(a)(8). The compostable materials handling operation or Facility shall, pursuant to 14 CCR Section 17867(a)(16), comply with the measurement standards included in 14 CCR Section 17409.58(c)(2), unless measurement is amended by 14 CCR Section 17409.5.9, demonstrating that the percentage of Organic Waste in the materials sent to Disposal is: i. On and after January 1, 2022, less than 20 percent (20%); and, ii. On and after January 1, 2024, less than 10 percent (10%). b. An "In -vessel Digestion Operation or Facility" as defined in 14 CCR 17896.5. The in -vessel digestion Facility or operation shall, pursuant to 14 CCR Section 17896.44.1, shall comply with the measurement standards included in Section 17409.5.8(c)(3), unless measurement is amended by Section 17409.5.9, demonstrating that the percentage of Organic Waste in the materials sent to Disposal is: On and after January 1, 2022, less than 20 percent (20%); and, ii. On and after January 1, 2024, less than 10 percent (10%). C. A 'Biomass Conversion Operation" as defined in Section 40106 of the California Public Resources Code. d. Soil amendment for erosion control, revegetation, slope stabilization, or landscaping at a Landfill, that is defined as a reduction in Landfill Disposal in accordance with 14 CCR Section 18983.1(b). e. Land application of compostable materials consistent with 14 CCR Section 17852(a)(24.5) and subject to the conditions in 14 CCR Section 18983,1(b)(6). f. Lawful use as animal feed, as set forth in California Food and City of Palm Desert 8- 14 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Agricultural Code Section 14901 et seq. and Title 3, Division 4, Chapter 2, Subchapter 2 commencing with 14 CCR Article 1, Section 2675. g. Other operations or Facilities with processes that reduce short-lived climate pollutants that are approved by the State in accordance with 14 CCR Section 18983.2. 3. If Company is interested in using an operation, Facility, or activity not expressly identified above for Source Separated Organic Materials Processing, Company or Facility operator shall be responsible for securing the approvals necessary from CalRecycle prior to the City's final approval of such operation, Facility, or activity, and shall do so in accordance with the procedures specified in 14 CCR Section 18983.2. 4. Preparation of Materials for Processine. The Company shall be responsible for preparing materials for Processing at the Approved Organic Waste Processing Facility, which shall include, but is not limited to, removal of visible physical contaminants such as plastic, glass, metal, and chemicals prior to size reduction. 5. Limits on Incompatible Materials in Recovered Organic Waste a. Limits. Except as described in Section 8.2.F.4.c of this Exhibit, Company's transfer/Processing Facility or operation shall only send offsite that Organic Waste recovered after Processing the Source Separated Organic Materials that meets the following requirements or as otherwise specified in 14 CCR Section 17409.5.8(a): On and after January 1, 2022 with no more than 20 percent (20%) of Incompatible Material by weight; and, ii. On and after January 1, 2024 with no more than 10 percent (10%) of Incompatible Material by weight. b. Measurement. Company shall measure the actual levels of Incompatible Materials in accordance with procedures described in 14 CCR Section 17409.5.8(b), and 14 CCR Section 17409.5.9. C. Exceptions. The limits in Section 8.2.F.4.a of this Exhibit shall not apply to the recovered Organic Waste sent offsite from the transfer/Processing Facility or operation, if the Company sends the recovered Organic City of Palm Desert 8-15 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Waste from the transfer/Processing Facility or operation to one or more of the following types of Facilities that will further Process the Organic Waste, or as otherwise specified in 14 CCR Section 17409.5.7(c): i. A transfer/Processing Facility or operation that complies with Section 8.2.F.4.a of this Exhibit; ii. A compostable materials handling Facility or operation that, pursuant to 14 CCR Section 17867(a)( 16), demonstrates that the percentage of Organic Waste in the materials sent to Disposal is: A) On and after January 1, 2022, less than 20 percent (20%); and, B) On and after January 1, 2024, less than 10 percent (10%). iii. An in -vessel digestion Facility or operation that, pursuant to 14 CCR Section 17896.44.1, demonstrates that the percentage of Organic Waste in the materials sent to Disposal is: A) On and after January 1, 2022, less than 20 percent (20%); and, B) On and after January 1, 2024, less than 10 percent (10%). iv. An activity that meets the definition of a Recycling center as described in 14 CCR Section 17402.5(d). G. C&D Program Standards 1. Company shall comply with the City's Construction and Demolition Materials Recycling program requirements pursuant to the City's Municipal Code. 2. Company shall deliver mixed C&D loads to an Approved C&D Processing Facility for Recycling. 3. Company shall deliver Source Separated C&D such as, but not limited to, dirt, concrete, wood waste, cardboard, or other Recyclable C&D Materials to an Approved C&D Processing Facility or other Facility authorized for Recycling C&D, and shall deliver Salvageable Materials to a party for Reuse or salvage. 4. Company shall arrange for Processing of Organic Waste in the C&D at a City of Palm Desert 8-16 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Facility that recovers Organic Waste from C&D and in a manner deemed not to constitute Landfill Disposal pursuant to 14 CCR Section 18983.1(a), which states that Landfill Disposal includes final deposition of Organic Waste at a Landfill or use of Organic Waste as Alternative Daily, Cover (ADC) or Alternative Intermediate Cover (AIC). H. Plastic Bags. Company shall annually submit to City written notice from the Approved Organic Waste Processing Facility confirming said Facility can remove plastic bags when Processing Source Separated Organic Materials. I. Compostable Plastics. Company may accept Compostable Plastics at the Approved Organic Waste Processing Facility. Pursuant to Article 5 of this Agreement, Company shall annually submit to City written notice from the Approved Organic Waste Processing Facility confirming said Facility can Process and recover these Compostable Plastics. J. Marketing. Company or Facility operator of the Approved Facility(ies), shall be responsible for marketing materials recovered from Discarded Materials Collected under this Agreement. Company or Facility operator of Approved Facilities marketing methods for materials shall be performed in a manner that supports achievement of Disposal reductions and in such a manner that complies with State regulations, including, but not limited to, AB 901, AB 939, SB 1016, AB 341, AB 1594, AB 1826, and SB 1383. Company or Facility operator of Approved Facilities shall retain revenues resulting from the sale and marketing of said materials with the exception of the curbside supplemental payments and City/County payments under the California Beverage Container Recycling and Litter Reduction Act, which shall be retained by the City. Company shall continue to receive the State's curbside rebate as outlined in Exhibit 10. Upon request, Company shall provide proof to the City that all Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, and C&D Collected by Company were Processed and recovered materials were marketed for Recycling, salvage, or Reuse or as organics products in such a manner that materials are not deemed Landfill Disposal pursuant to SB 1383 and in a manner that materials are deemed Diversion pursuant to AB 939. All Residue from the Recycling and Processing activities that is not marketed shall be reported to the City as Residue and accounted for as Disposal tonnage at the Approved Disposal Facility. No Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, or C&D shall be Transported to a domestic or foreign location if Landfill Disposal of such material is its intended use. If Company becomes aware that a broker or buyer has illegally handled, Disposed of, or used material generated in the City that is not consistent with Applicable Law, City of Palm Desert 8- 17 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Company shall immediately inform the City and terminate its contract or working relationship with such party. In such case, Company shall find an alternative market for the material(s) recovered from the Source Separated Recyclable Materials, Source Separated Organic Materials, and/or C&D that is compliant with Applicable Law. The performance of commodity markets for materials recovered from Source Separated Recyclable Materials shall not be considered a reason for deeming a Facility "unavailable' in this Section 8.1.J of this Exhibit, nor shall it be considered an acceptable basis for the need to use an Alternative Facility, nor shall it serve as the basis for any adjustment in Company's compensation under this Agreement, other than as specifically contemplated in Article 6 of this Agreement. K. Disposal of Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, and C&D Prohibited. With the exception of Processing Residue, which shall not exceed the limits established under Applicable Law, Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, and C&D Collected under this Agreement may not be Disposed of in lieu of Recycling, Processing, or marketing the material, without the expressed written approval of the City Agreement Manager. If for reasons beyond its reasonable control, Company believes that it cannot avoid Disposal of the Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, or C&D Debris Collected in the City, then it shall prepare a written request for City approval to Dispose of such material. Such request shall contain the basis for Company's belief (including, but not limited to, supporting documentation), describe the Company's efforts to arrange for the Processing of such material, the period required for such Disposal, and any additional information supporting the Company's request. In addition, the request shall describe the Company's proposed interim plans for implementation while the City is evaluating its request. If the City objects to the interim plans, the City shall provide written notice to the Company and request an alternative arrangement. The City shall consider the Company's request and inform Company in writing of its decision within sixty (60) days. Depending on the nature of the Company's request, City may extend the sixty (60) day period, at its own discretion, to provide more time for evaluation of the request and negotiation of an acceptable arrangement with the Company. City of Palm Desert 8-18 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS 8.3 Refuse Disposal Standards A. Disposal of Refuse Collected. Company shall Transport all Refuse Collected under this Agreement to the Approved Transfer Facility for transfer and Disposal at the Approved Disposal Facility. B. Disposal at Approved Facility. Company shall not Dispose of,Refuse or Residue by depositing it on any public or private land, in any river, stream, or other waterway, or in any sanitary sewer or storm drainage system or in any other manner which violates Applicable Laws. 8.4 Weighing of Discarded Materials A. Maintenance and Operation. This Section 8.4 of this Exhibit applies to motor vehicle scales used at the Approved Facilities. Approved Facilities shall be equipped with one or more State -certified motor vehicle scales in accordance with Applicable Law. Upon request, Company shall arrange for Facility operator to provide documentary evidence of such scale certification within ten (10) days of City's request during the Term. Company shall arrange for Approved Facility operator to provide City with access to weighing information at all times and copies thereof within three (3) Working Days following the City's request. Exceptions to weighing requirements are specified in Section 8.4.G of this Exhibit. B. Vehicle Tare Weights for Approved Facility(ies). Within thirty (30) days prior to the Commencement Date, Company shall coordinate with the Facility operator(s) to ensure that all Collection vehicles used by Company to Transport Discarded Materials to Approved Facilities are weighed to determine unloaded ("tare') weights: Company shall work with Facility operator(s) to electronically record the tare weight, identify vehicle as Company's, and provide a distinct vehicle identification number for each vehicle. Company shall provide City with a report listing the vehicle tare weight information upon request. Company shall promptly coordinate with Facility operator to weigh additional or replacement Collection vehicles prior to Company placing them into service. Company shall check tare weights at least annually, or within fourteen (14) days of a City request, and shall retire vehicles immediately after any major maintenance service that could impact the weight of the vehicle by more than fifty (50) pounds. C. Substitute Scales. If any scale at an Approved Facility is inoperable, being tested, or otherwise unavailable, Approved Facility operator shall use reasonable business efforts to weigh vehicles on the remaining operating scale(s). To the extent that all the scales are inoperable, being tested, or otherwise unavailable, City of Palm Desert 8-19 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Approved Facility operator shall substitute portable scales until the permanent scales are replaced or repaired. Facility operator shall arrange for any inoperable scale to be repaired as soon as possible. D. Estimates. Pending substitution of portable scales or during power outages, Facility operator shall estimate the tonnage of the Discarded Materials Transported to and accepted at the Approved Facilities by utilizing the arithmetic average of each vehicle's recorded tons of Discarded Materials delivered on its preceding three (3) deliveries. During any period of time the scales are out of service, Approved Facility operator shall continue to record all information required by this Section 8.4 of this Exhibit for each delivery of Discarded Materials to the Approved Facilities and each load of material transferred to another Approved Facility(ies). E. Weighing Standards and Procedures. At the Approved Facilities, Facility operator shall weigh and record inbound weights of all vehicles delivering Discarded Materials when the vehicles arrive at the Approved Facility. F. Records. Approved Facility operator shall maintain scale records and reports that provide information including date of receipt, inbound time, inbound and outbound weights (or tare weights) of vehicles, vehicle identification number, jurisdiction of origin of materials delivered, type of material, company/hauler identification, and classification, type, weight, and final destination of Discarded Material if the Discarded Materials are transferred to another Approved Facility(ies). G. Exceptions to Weighing Requirements. If an Approved Facility does not have motor vehicle scales to weigh Company's vehicles and Discarded Materials delivered to the Facility, Company shall obtain a receipt for delivery of the Discarded Materials that identifies the date and time of delivery, the type of material delivered, and the vehicle number. Company or Facility operator shall estimate the tonnage of material delivered for each load based ion the volumetric capacity of the vehicle and material density factors (e.g., pounds per cubic yard) approved by or designated by the City Manager or their designee. H. Upon -Request Reporting. If vehicle receiving and unloading operations are recorded on video cameras at the Approved Facilities, Company shall make those videos available for City review during the Approved Facilities' operating hours, upon request of the City, and shall provide the name of the driver of any particular load if available. City of Palm Desert 8-20 March 10, 2022 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS 8.5 Rejection of Excluded Waste A. Inspection. Company. or Facility operators of Approved Facilities will use standard industry practices to detect and reject Excluded Waste in a uniform and non-discriminatory manner and will not knowingly accept Excluded Waste at the Approved Facility(ies). Company or Facility operators of Approved Facilities will comply with the inspection procedure contained in its permit requirements. Company or Facility operator of Approved Facilities will promptly modify that procedure to reflect any changes in permits or Applicable Law. B. Excluded Waste Handling and Costs. Company or Facility operators of Approved Facilities will arrange for or provide handling, Transportation, and delivery to a Recycling, incineration, or a Disposal Facility permitted in accordance with Applicable Law of all Excluded Waste detected at the Approved Facility(ies). Company is solely responsible for making those arrangements or provisions and all costs thereof. Nothing in this Agreement will excuse the Company or Facility operators of Approved Facilities from the responsibility of handling Excluded Wastes that Company or Facility operators of Approved Facilities inadvertently accepts in a lawful manner and of arranging for the disposition of that Excluded Waste in accordance with Applicable Law. City of Palm Desert 8-21 March 10, 2022 EXHIBIT 9: SAMPLE RECYCLING COORDINATOR CALENDAR OF MILESTONES Sample Burrtec Recycling Coordinator Calendar of Milestones Event or Program Brief Description Quarter Quarter Quarter Quarter4 Provide 3 Omp-in Shredding events for Palm Shred It Recycle Program DesertCustomers. May limit customers to(10) TBD TBD TBD boxes per event. Sharps Recycle Program(Residential) Provide a mail -in program for residents. Ongoing Residential Accept Sharps at HH W Center. Conduct at least (1) compost giveaway event. Provide (1) 30yard roll -off. City to utilize any Compost Giveaway remaining compost. City residents to bring Anticipated their own containers at first come, first -served basis. Around Rate year, provide annual notice to include 5813a3 Information. Mailer to be Annual Notice of Requirements distributed by Company to all residential and PropsNotice commercial mailing addresses including Multi - Family dwelling units. Create a brochure for residential and Biannual Brochure commercial customers biannually, Anticipated commencing in 2022. At least (4) times per year, Company to Winter Edition Inserts in CityNewsletter Bri htside g ) provide inserts on programs,services, TBD TBD TBD regulations and other related topics. Organics Annual Neighborhood Clean up Insert Produce once annually for inclusion in the Cleanup Flyer Citv' s April Issue of the Brightside. Issue a bill notice to all Company billed Bill Notices customers on programs, services, regulations Anticipated and other related topics. Provide ( 1) public service announcement per Public5ervice Announcement year to advertise such events such as annual Holiday Tree Ad clean- up or holiday tree recycling Beginning at the effective date of the Residential Food Waste Program Implementati agreement, residential mplementation iOngoing Ongoing Ongoing conducteducationcampaigntoincludeInitialmailer and how-to guide. Perform visits to identify the service needs by Outreach and Education conducting diversion opportunity assessments Ongoing Ongoing Ongoing of customer locations Company to participate In City events to promote recycling and organics material Farmers Market, Farmers Market, Community Events collectiontechniques at Farmers Market, Independence Fall Concert Spring Concert community meetings, special events and mmuniymeetings, spa Wildflower Festival Day Celebration Series and Golf Series other local activities. Cart Parade Recycling Coordinator Ongoing Monthly Meeting Second Tuesday of the Month EXHIBIT 10: ANNUAL RECYCLING REBATE FORMULA EXHIBIT 10: ANNUAL RECYCLING REBATE FORMULA F-1:Data to be entered in bold, outlined boxes with yellow highlight during time of rebate calculation IBM CY 2019 Actuals CY 2022• Difference I 1 State Curbside Rebate Revenues 26,096 30,000 Enter Actuals 12 I Commercial OCC Sales Revenues 19,083 50,000 Enter Actuals 3 I Annual Commodity Sales Revenue 99,335 150,000 - Enter Actuals I 4 ITotal Recycling Revenue a$ 5 144,514 230, 000 Calculation: Sum R1-R3 1 5 JRecVcIabIe Tons Collected 10,590 11,000 Enter Actuals I 6 Ilncrease In Recyclables Sales Revenue/Ton 13.65 2091.$ 7.26 Calculation: R4 a R5 IRO July1 2023 Customer Rebate 7 CY 2022 Recyclable Tons Collected I 8 Increase In Recyclables Sales Revenue/Ton I 9 Total Allocation Amount based on CY 2022 IROW 30 Tonnage Category 11 Residential Recyclable Tons CY 2022' 12 Commercial Recyclable Tons CY 2022' 113 Total Recyclable Tons Collected CY 2022 I Row July 1. 2023 Residential Customer Rebate' 14 Residential Customer Allocation Amount 115 Total Homes in City based on Burrtec Data Residential Customer Allocation Amount per Home effective 16 7/1/2023 based on CY 2022' 117 Maximum Annual Rebate per Home 118 (Amount Over/(Under) Maximum Annual Rebate 119 (Residential Customer Annual Rebate Notes 11,000 From R5, Column "Actuals CY 2022" 7.26 From R6, Column "Difference" 79,891 Calcuation: R7 x R8 Notes Allocation Based on Sector Recylable Tons Allocation% Customer Allocation Notes Collected 7,800 70.9 f $ 56,650 3,200 29.1 $ 23,241 Maximum annual commercial rebate cannot exceed$299, 062 per year. 11,000 100.0% $ 79,891 Notes 56,650 From R11, Column "Customer Allocation" 29,181 Enter Actuals 1.94 Calculation: R14. R15 17.28 Based on $1.44/month x 12 months/year 15.341 Calculation: R16-R17 1.94 IRC July 1, 2023 Commercial Recycling Customer Rebate" Notes 120 Commercial Customer Allocation Amount 23,241 From R12, Column "Customer Allocation" 121 Current Total Monthly Cubic Yards of Recycling Capacity 24,592 Enter Actuals Commercial Recycling Allocation Amount per Monthly CY effective1227/1/2023 based on CY 2022' 0.95 Calculation: R20 . R21 I Example Commercial Customer with 3 CY Recvcline gin Collected 2x/week Notes 23 I Weekly Recycling Service in CY for Example Customer 6 Example customer service level 3x2. 24I Weeks/Month 4,33 25 IExample Customer Recycling Service in CY/Month 25.98 Calculation: R23 X R24 26 ICommercial Allocation per CY 0.95 From R22 27 ICommercial Recycling Example Customer Annual Rebate 24.55 R25 X R26 Calculation to be performed annually beginning with CY 2022 results. Estimates provided for example purposes only. City of Palm Desert 10-1 March 10, 2022 EXHIBIT 11: ONE-TIME RESIDENTIAL ORGANIC MATERIALS RATE ADJUSTMENT FORMULA EXHIBIT 11: ONE-TIME RESIDENTIAL ORGANIC MATERIALS RATE ADJUSTMENT FORMULA Data to be entered in bold, outlined boxes with yellow highlight only during time of one-time true -up calculation. Organic Materials Volume Adjustment Column A B C Actual 2023 Increase (Decrease) Row 2021 Organic to Customer Monthly Notes Projected Materials Rate Tonnage 1 Processing Cost/Ton of Organic Materials- 85.00 85.00 2 Lbs./Ton 2,000 2,000 3 Organic Materials Processing Cost/Lb. 0.04 0,04 Calculation: R1> R2 4 Lbs. of Organic Materials/Name/Week 14.79 10.00 5 Organic Materials Processing Cost/Home/Week 0.64 0.43 Calculation: R3 x R4 6 Weeks/Month 4.33 4,33 7 Organic Materials Processing Cost/Home/Month 2.75 1,86 $ (0,89) Calculation: R5 x R6 Refuse Volume Adjustment Column D E F Actual 2023 Increase (Decrease) Row 2021 Refuse to Customer Monthly Notes Projected Tonnage Rate 8 Refuse Disposal Cost/Ton" 51.49 51.49 9 Lbs./Ton 2,000 2,000 10 Refuse Disposal Cost/Lbs. 0.03 0.03 Calculation: Fill +R9 11 Change in Refuse Lbs./Home/Week'" 9.51) 6.00( 12 Refuse Disposal Cost/Home/Week 0.25) 016) Calculation: R10x RSS 13 Weeks/Month 4.33 4.33 14 Refuse Disposal Cost/Home/Month 1.07) 0.68) $ 0.40 Calculation: R12 x R13 Organic Materials Collection Productivity Adjustment Column G H I Increase (Decrease) Row 2021 Actual 2023 to Customer Monthly Notes Projected Productivity Rate 15 Residential Organic Materials Productivity Lift/Hour 95.00 100.00 16 Collection Cost/Hour" 100.29 100.29 17 Collection Cost/Lift of Residential Organic Materials 1.06 1.00 Calculation: R16+ R15 18 Weeks/Month 4.33 433 19 Cost/Month/lift of Residential Organic Materials 4.57 4.34 $ (0.23j Calculation: R17 x R18 ) Adjustments Summary Row-,- Adjustments Notes 20 Organic Materials Volume Adj. 0.8j, From R7, Column C ) 21 Refuse Volume Adj. 0.40 11 From R14, Column F 22 Organic Materials Collection Productivity Adj. 0.23 From R19, Column I 23 Total Increase/(Decrease) to Customer Monthly Rate 0.73) Calculation: Sum R20 - R22 These figures remain constant for purposes of the one-time true -up. 2019 Actual Trash Its/home including Residual from Residential Recycling Carts 20.62 see talc below) Trash Tons Res Units Ibs/Unit/Wk ) 15,643.00 29,181.00 20.62 ( I City of Palm Desert 11 1 March 10, 2022 EXHIBIT 11: ONE-TIME RESIDENTIAL ORGANIC MATERIALS RATE ADJUSTMENT FORMULA Key Assumptions Row.Assumption. - Units..',.. Nofe's/Source, 1 14.79 Organic Materials Lbs. /Home/Week Burrtec Cost Proposed on 4/13/ 21. 2 85. 00 Organic Materials Processing Rate/Ton Burrtec Cost Proposed on 4/13/21. 3 12. 00 Decrease in Refuse Lbs./Home/Week for New Burrtec Cost Proposed on 4/13/21. Organic Materials Collection 4 51.49 Refuse Tip Fee at Edom Hill/Ton Burrtec Cost Proposed on 4/13/21. 5 95. 00 Organic Container Lifts/Truck Hour Burrtec Cost Proposed on 4/13/ 21. 6 100.29 Organic Materials Operating Cost/Truck Hour Burrtec Cost Proposed on 4/13/ 21. Organic Materials Collection Truck Capital'Cost Row Notes 7 Total Residential Dwelling Units 29,181 Per Burrtec 4'/13/2021 spreadsheet. 8 Lifts/Hour 95. 00 9 Collection Hours/Week 307.17 Calculation R7 — R8 10 Hours/Route 50. 00 11 Number of Routes/Week 6.14 Calculation R9 _ R10 Organic Materials Collection Operating Cost 12 Total Route Collection Hours/Week 13 Operating Cost/Hour 14 Total Operating Cost/Week 15 Weeks/Year 16 Annual Operating Costs Notes 307.17 From R9 100.29 From R6 30,806 Calculation R12 x R13 52 1,601,912 Calculation R14 x R15 Assumptions Continued on Next Page... City of Palm Desert 11-2 March 10, 2022 EXHIBIT 11: ONE-TIME RESIDENTIAL ORGANIC MATERIALS RATE ADJUSTMENT FORMULA Row 17 18 19 20 21 22 23 Organic Materials Processing and Tonnage Estimates _ _ 2019 Residential Organic Materials Tons Weeks/Year Organic Materials Tons/Week Homes with Organic Materials Collection Service in 2019 Organic Materials Tons/Week/Home Lbs./Ton Organic Materials Lbs./Week/Home 24 Homes in Need of Organic Collection Service 25 Projected Lbs./Week/Home of Organic Materials 26 Projected Lbs./Week 27 Lbs./Ton 28 Projected Organic Materials Tons/Week 29 Weeks/Year 30 Projected Organic Materials Tons/Year 31 Tons Residential Organic Materials/2019 32 Organic Materials Tons/Year (Excluding Food Waste) 33 Food Waste as a Percent of Organic Materials 34 Additional Food Waste Tons/Year 35 Total Organic Materials Tons/Year 36 Homes with Organic Materials Collection Service in 2019 37 Homes in Need of Organic Collection Service 38 Total Homes 39 Tons/Home/Year of Organic Materials 40 Lbs./Ton 41 Lbs./Year/Home 42 Weeks/Year 43 Lbs./Home/Week of Organic Materials 44 Total Organic Materials Tons/Year 45 Organic Materials Processing Rate/Ton 46 Annual Cost - Organic Materials Processing 47 Decrease in Refuse Lbs./Week/Home 48 Homes without Organic Collection Service 49 Lbs./Week 5o Lbs./Ton 51 Tons/Week 52 Weeks/Year 53 Total Decrease in Refuse Tons/Year 54 Tip Fee/Ton (Edom Hill 7/1/21) 55 Decrease in Refuse DisposalCosts 56 Net Annual Cost to Residential Services 57 Estimated Total Decrease in Refuse Tons/Year 58 Total Homes 59 Total Decrease in Refuse Tons/Home/Year 60 Lbs./Ton 61 Total Decrease in Refuse Lbs./Home/Year 62 Weeks/Year 63 Estimated Lbs./Home/Week Decrease in Refuse Notes 3, 473 Per 2019 tonnage report. 52 66. 78 Calculation: R17=R18 6, 058 0. 01 Calculation: R19 _ R20 2, 000 22. 05 Calculation: R21 X 1122 23, 123 12. 00 From R3 277, 476 Calculation: R24 X R25 2, 000 138. 74 Calculation: R26 a R27 52 7, 214 Calculation: R28 X R29 3, 473 From R17 10, 687 Calculation: Sum R30 and R31 5. 00% 534 Calculation: R32 X R33 11, 222 Calculation: R32 + R34 6, 058 From R20 23, 123 From R24 29, 181 Calculation: Sum R36 and R37 0. 38 Calculation: R35 _ R38 2, 000 769. 10 Calculation: R39 x R40 52 14. 79 Calculation: R41+R42 11, 222 From R34 85. 00 953, 830 Calculation: R44 X R45 12. 00 Projected decrease in Refuse from R25 23, 123 From R24 277, 476 Calculation: R47 X R48 2, 000 138. 74 Calculation: R49 _ R50 97 7, 214.38 Calculation: R51 X R52 51. 49 From R4 371, 468 Calculation: R53 X R54 582, 362 Calculation: R46 less R55 7, 214) From R53 29, 181 From R38 0. 25) Calculation: R57=R58 2, 000 494) Calculation: R59 X R60 52 9. 51) Calculation: R56+R57 City of Palm Desert 11-3 March 10, 2022 1 Gloria Sanchez From:Claudia Bray <cbray@carlwarren.com> Sent:Wednesday, February 14, 2024 12:23 PM To:Andrea Staehle Cc:Tim Varon; Amber Molina; Gloria Sanchez Subject:RE: CJP 3050349 Palm Desert - Glovicki/Sawchuk/Evans T232970077 My recommendation would be to proceed to resolve the claims with the claimants since they have agreed to drop the injury claims and are only looking for their property damage claim to be resolved. Of course, I would have them sign a full release so they can not come back and pursue and injury claim at a later date. Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 | Fax: (866) 254-4423 Carl Warren & Company LLC | A Venbrook Company CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the in tended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. From: Andrea Staehle <astaehle@palmdesert.gov> Sent: Wednesday, February 14, 2024 11:00 AM To: Claudia Bray <cbray@carlwarren.com> Cc: Tim Varon <TVaron@carlwarren.com>; Amber Molina <amolina@palmdesert.gov>; Gloria Sanchez <gsanchez@palmdesert.gov> Subject: RE: CJP 3050349 Palm Desert - Glovicki/Sawchuk/Evans T232970077 Hi Claudia, What is your recommendation? 2 Thanks, Andrea Staehle Human Resources Manager City of Palm Desert 73510 Fred Waring Drive, Palm Desert, CA 92260 astaehle@palmdesert.gov | 760.776.6337 | www.palmdesert.gov From: Gloria Sanchez <gsanchez@palmdesert.gov> Sent: Wednesday, February 14, 2024 10:26 AM To: Claudia Bray <cbray@carlwarren.com> Cc: Tim Varon <TVaron@carlwarren.com>; Amber Molina <amolina@palmdesert.gov>; Andrea Staehle <astaehle@palmdesert.gov> Subject: RE: CJP 3050349 Palm Desert - Glovicki/Sawchuk/Evans T232970077 Good morning, Claudia: By way of this reply, I will forward your email to Andrea. Thank you and have a good day . M. Gloria Sanchez Records Coordinator City of Palm Desert 73510 Fred Waring Drive, Palm Desert, CA 92260 gsanchez@palmdesert.gov | 760.776.6354 | www.palmdesert.gov From: Claudia Bray <cbray@carlwarren.com> Sent: Wednesday, February 14, 2024 10:04 AM To: Gloria Sanchez <gsanchez@palmdesert.gov> Cc: Tim Varon <TVaron@carlwarren.com>; Amber Molina <amolina@palmdesert.gov> Subject: RE: CJP 3050349 Palm Desert - Glovicki/Sawchuk/Evans T232970077 Hello Gloria, Wanted to follow up to see if Andrea has had any feedback on the 2 options provided, please advise. Claudia BraySr Claims Examinercbray@carlwarren.comTel: (657) 622-4216 | Fax: (866) 254-4423Carl Warren & Company LLC | A Venbrook CompanyCA Entity License No: 260 Hello Gloria, 3 Wanted to follow up to see if Andrea has had any feedback on the 2 options provided, please advise. Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 | Fax: (866) 254-4423 Carl Warren & Company LLC | A Venbrook Company CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the in tended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. From: Gloria Sanchez <gsanchez@palmdesert.gov> Sent: Wednesday, February 7, 2024 4:54 PM To: Claudia Bray <cbray@carlwarren.com> Cc: Tim Varon <TVaron@carlwarren.com>; Amber Molina <amolina@palmdesert.gov> Subject: RE: CJP 3050349 Palm Desert - Glovicki/Sawchuk/Evans T232970077 By way of this reply, I will fold in the City’s Risk Manager Andrea Staehle to make that call. Thank you and have a nice evening. M. Gloria Sanchez Records Coordinator City of Palm Desert 73510 Fred Waring Drive, Palm Desert, CA 92260 gsanchez@palmdesert.gov | 760.776.6354 | www.palmdesert.gov From: Claudia Bray <cbray@carlwarren.com> Sent: Wednesday, February 7, 2024 3:12 PM To: Gloria Sanchez <gsanchez@palmdesert.gov> 4 Cc: Tim Varon <TVaron@carlwarren.com> Subject: RE: CJP 3050349 Palm Desert - Glovicki/Sawchuk/Evans T232970077 Thank you, Gloria, for verifying that there is no further information on the Burrtec driver. I spoke with the claimant, and he/they are not pursuing bodily injury claims and only want to be reimbursed for the damage caused to their road bikes. They are looking for $2,000 as settl Thank you, Gloria, for verifying that there is no further information on the Burrtec driver. I spoke with the claimant, and he/they are not pursuing bodily injury claims and only want to be reimbursed for the damage caused to their road bikes. They are looking for $2,000 as settlement for each claimant. That being said, I have not received all their receipts so the amount might be less. We have a couple of ways we can handle these property damage claims. 1. We can reject the claims and advised them that the city did not have any prior notice of the oil spill as required by the Government Code, therefore, the city cannot be held liable. Plus, the city did not create the condition therefore their only recourse would be for them to contact Burrtec themselves and file a claim against the company. 2. We can settle the claims as a good neighbor policy in an exchange for a full release since the claimants are not pursing injury claims and their property damage claims are minimal. Does the City have a preference on how you’d like us to proceed. Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 | Fax: (866) 254-4423 Carl Warren & Company LLC | A Venbrook Company CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the in tended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. From: Gloria Sanchez <gsanchez@palmdesert.gov> Sent: Wednesday, February 7, 2024 2:47 PM To: Claudia Bray <cbray@carlwarren.com> Subject: RE: CJP 3050349 Palm Desert - Glovicki/Sawchuk/Evans T232970077 Hi, Claudia: I spoke with Jose (Joe) Rojas who was the sole staff person who not only had contact with the driver of the Burrtec garbage truck on the day of the incident, but he is the one who took the pictures provided to you. AddiƟonally, Joe menƟoned that the driver is the same driver that to date collects the trash/recyclables here at the Civic Center. He knows this because they always wave at each other. However, he does not have or know his name nor did Joe write down the license plate. 1 Gloria Sanchez From:Gloria Sanchez Sent:Wednesday, February 7, 2024 2:47 PM To:Claudia Bray Subject:RE: CJP 3050349 Palm Desert - Glovicki/Sawchuk/Evans T232970077 Hi, Claudia: I spoke with Jose (Joe) Rojas who was the sole staff person who not only had contact with the driver of the Burrtec garbage truck on the day of the incident, but he is the one who took the pictures provided to you. AddiƟonally, Joe menƟoned that the driver is the same driver that to date collects the trash/recyclables here at the Civic Center. He knows this because they always wave at each other. However, he does not have or know his name nor did Joe write down the license plate. I hope this concludes this maƩer. Have a great day. From: Claudia Bray <cbray@carlwarren.com> Sent: Tuesday, February 6, 2024 2:47 PM To: Gloria Sanchez <gsanchez@palmdesert.gov> Subject: RE: CJP 3050349 Palm Desert - Glovicki/Sawchuk/Evans T232970077 Hello Gloria, Just following up to see if you were able to secure the information below. Please advise. I’d like to direct the claimants to pursue their claim against Burrtec as it was their truck that spilled the oil onto the roadway. Claudia BraySr Claims Examinercbray@ca Hello Gloria, Just following up to see if you were able to secure the information below. Please advise. I’d like to direct the claimants to pursue their claim against Burrtec as it was their truck that spilled the oil onto the roadway. Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 | Fax: (866) 254-4423 Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, 1 Gloria Sanchez From:Claudia Bray <cbray@carlwarren.com> Sent:Friday, January 19, 2024 12:59 PM To:Tim Varon Cc:Gloria Sanchez Subject:Glowicki et al v. City of Palm Desert CJP-3050349 Below you will find the most recent diary review on these pending claims. DIARY REVIEW Event: 3 male bicyclist were riding in a group of 4 heading n/b on San Pablo and as there were going around the traffic circle to head w/b on Magnesia Falls, they encountered oil on the road causing 3 of them to fall off their bikes and sustain injuries and property damage. Statute of Limitations: 10/24/2025 Action plan items from last review and status: 1. Confirm city has jurisdiction of loss location. City has confirmed they do have jurisdiction of the loss location. 2. Determine if city had any prior notice of the oil on the roadway. City has confirmed they did not have prior notice of the oil on the roadway. 3. Attempt to determine where the oil came from, any nearby construction? The oil came from a Burtec Waste Industries, Inc. garbage truck. City’s landscaper, Joe Rojas, witnessed the spill as the garbage truck pulled into the Palm Desert Civic Center. Joe Rojas alerted the driver. 4. Secure copy of the police report. A copy has bene secured. Oil spill by a Burtec Waste Management truck due to a broken hydraulic oil line. The bicyclists were unable to maneuver around the spill. 3 of the 4 slipped on the oil and collided into each other. They all got up and continued their ride. 5. Attempt to take the claimant’s record statement. An appointment has been set up to take David’s r/s on 1/25/2024 @ 10am. 6. Secure repair receipts/supports for bicycles. Received repair receipts from David $434.94 and Dan $418.90, Grant still pending. 7. Review photos sent in with claim form of injuries and damaged bicycles. Photos have been reviewed, minor scrapes to bicyclist and minor damage to bicycles. 8. Finalize liability. Liability has been finalized. Coverage: Confirmed under the MOC Liability Review: Appears favorable to the city. The city’s defense should be No Notice of the Dangerous Condition. The bicyclist should be pursuing their claim against the garbage truck company, Burtec Waste Management as it was their truck which leaked the oil onto the roadway due to a broken hydraulic oil line. 2 Damages Review – bloody scrapes, bruises, wrist and back injury, no medical treatment sought. Repair and tune up to bicycles. Submitted Medical Bills: None Considered: None anticipated Residuals: None anticipated Loss of Earnings Alleged: None Reserve Review: $ 10,000 per BI aggregate $30,000 and $18,500 for PD Updated Action Plan: 1. Secure claimant David’s r/s. 2. Confirm if others are making a claim or not. 3. Advise claimants they should be pursuing their claim against the garbage truck and not the city. 4. Reject the claims after r/s is secured. 5. Provide claimants with responsible parties’ info. 6. Close file. Subrogation Referral: NA Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 | Fax: (866) 254-4423 Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the in tended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. 1 Gloria Sanchez From:Gloria Sanchez Sent:Wednesday, January 17, 2024 4:14 PM To:Claudia Bray Subject:CJP 3050349 Palm Desert - Glovicki/Sawchuk/Evans T232970077 Attachments:T232970077.pdf Hi, Claudia: Just received the police report for the subject claim. Also, waiƟng to hear back from City staff about the Burrtec driver and garbage truck license plate. I browsed through the police report and saw nothing of that nature. I will forward any informaƟon I obtain from City staff, if any. Gloria TRAFFIC CRASH REPORT OWNER'S NAME CHP 555 Page 1 (Rev. 9-19) OPI 060 SPECIAL CONDITIONS LATE-REPORTED NUMBER INJURED 3 HIT & RUN FELONY CITY PALM DESERT JUDICIAL DISTRICT Desert LOCAL REPORT NUMBER T232970077 NUMBER KILLED 0 HIT & RUN MISD.COUNTY Riverside REPORTING DISTRICT 36Q3 BEAT 36 DAY OF WEEK Tuesday TOW AWAY CRASH OCCURRED ON SAN PABLO AVE MO. DAY YEAR 10/24/2023 TIME (2400) 1235 NCIC # 3300 OFFICER I.D. N3418 MILEPOST INFORMATION FEET OF AT INTERSECTION WITH OR FEET OF MAGNESIA FALLS DR GPS COORDINATES STATE HWY REL PARTY 1 DRIVER'S LICENSE NUMBER STATE CLASS AIR BAG SAFETY EQUIP. DRIVER NAME (FIRST, MIDDLE, LAST) DAVID GLOWICKI PEDES- TRIAN STREET ADDRESS 714 BYNG ST. PARKE D CITY / STATE / ZIP VICTORIA / BC / V8S5B BICY- CLIST SEX M HAIR BLK EYES BLU HEIGHT 600 WEIGHT 170 BIRTH DATE 06/12/1967 RACE White OTHER HOME PHONE (250) 704-8603 BUSINESS PHONE INSURANCE CARRIER POLICY NUMBER DIR OF TRAVEL NORTH ON STREET OR HIGHWAY SAN PABLO AVE SPEED LIMIT 15 VEH. YEAR TREK EMONDA BLACK MAKE / MODEL / COLOR LICENSE NUMBER STATE SAME AS DRIVER OWNER'S ADDRESS OFFICER DRIVER OTHER NONE APPARENT REFER TO NARRATIVE VEHICLE IDENTIFICATION NUMBER: UNK.NONE MOD.MAJOR MINOR ROLL-OVER CA DOT CAL-T TCP/PSC MC/MX PREPARER'S NAME Zendejas, M. N3418 Yes No N/A REVIEWER'S NAME OLSON, D. 3452 DATE REVIEWED 01/17/2024 DISPOSITION OF VEHICLE ON ORDERS OF: PRIOR MECHANICAL DEFECTS: PHOTOGRAPHS BY L O C A T I O N DISPATCH NOTIFIED 1/17/2024 3:37:58 PM W10-SDPDS41766 1.1.053.06 160801357407318 STATE OF CALIFORNIA DEPARTMENT OF CALIFORNIA HIGHWAY PATROL VEHICLE TYPE 04 DESCRIBE VEHICLE DAMAGE SHADE IN DAMAGE AREA SAME AS DRIVER OWNER'S NAME PARTY 2 DRIVER'S LICENSE NUMBER STATE CLASS AIR BAG SAFETY EQUIP. DRIVER NAME (FIRST, MIDDLE, LAST) DANIEL SAWCHUK PEDES- TRIAN STREET ADDRESS 3360 WOODBURN AVE. PARKED VEHICL CITY / STATE / ZIP VICTORIA / BC / V8P5C BICY- CLIST SEX M HAIR BLN EYES BLU HEIGHT 602 WEIGHT 200 BIRTH DATE 11/07/1965 RACE White OTHER HOME PHONE (250) 883-7006 BUSINESS PHONE ( ) - INSURANCE CARRIER POLICY NUMBER DIR OF TRAVEL NORTH ON STREET OR HIGHWAY SAN PABLO AVE SPEED LIMIT 15 VEH. YEAR TREK BLACK MAKE / MODEL / COLOR LICENSE NUMBER STATE SAME AS DRIVER OWNER'S ADDRESS OFFICER DRIVER OTHER NONE APPARENT REFER TO NARRATIVE VEHICLE IDENTIFICATION NUMBER: UNK.NONE MOD.MAJOR MINOR ROLL-OVER CA DOT CAL-T TCP/PSC MC/MX DISPOSITION OF VEHICLE ON ORDERS OF: PRIOR MECHANICAL DEFECTS: VEHICLE TYPE 04 DESCRIBE VEHICLE DAMAGE SHADE IN DAMAGE AREA SAME AS DRIVER OWNER'S NAME PARTY 3 DRIVER'S LICENSE NUMBER STATE CLASS AIR BAG SAFETY EQUIP. DRIVER NAME (FIRST, MIDDLE, LAST) GRANT EVANS PEDES- TRIAN STREET ADDRESS 622 INGLEWOOD TERR PARKED VEHICLE CITY / STATE / ZIP VICTORIA / BC / V8S5B BICY- CLIST SEX M HAIR BLK EYES BRO HEIGHT 510 WEIGHT 175 BIRTH DATE 12/30/1969 RACE White OTHER HOME PHONE (250) 881-5988 BUSINESS PHONE INSURANCE CARRIER POLICY NUMBER DIR OF TRAVEL NORTH ON STREET OR HIGHWAY SAN PABLO AVE SPEED LIMIT 15 VEH. YEAR FRACTOR RED MAKE / MODEL / COLOR LICENSE NUMBER STATE SAME AS DRIVER OWNER'S ADDRESS OFFICER DRIVER OTHER NONE APPARENT REFER TO NARRATIVE VEHICLE IDENTIFICATION NUMBER: UNK.NONE MOD.MAJOR MINOR ROLL-OVER CA DOT CAL-T TCP/PSC MC/MX DISPOSITION OF VEHICLE ON ORDERS OF: PRIOR MECHANICAL DEFECTS: VEHICLE TYPE 04 DESCRIBE VEHICLE DAMAGE SHADE IN DAMAGE AREA SAME AS DRIVER NONE LATITUDE 33.736105 LONGITUDE -116.382486 OPER- ATOR LANE 1 THRU LANES 1 TOTAL LANES 1 LANE 1 THRU LANES 1 TOTAL LANES 1 OPER- ATOR OPER- ATOR LANE 1 THRU LANES 1 TOTAL LANES 1 OLSON, D.345201/17/2024Complaint ofPain300Complaint ofPain300No1/17/2024 3:37:01PM|160801357407318|W10-SDPDS4176 Page 1 of 6 CITED PROPERTY DAMAGE PRIMARY CRASH FACTOR LIST NUMBER (#) OF PARTY AT FAU TRAFFIC CONTROL DEVICES VEHICLE AUTOMATION LEVEL123 321 MOVEMENT PRECEDING CRASH CVC SECTION VIOLATEDA OTHER IMPROPER DRIVING:*B OTHER THAN DRIVER*CX UNKNOWN*D WEATHER (MARK 1 TO 2 ITEMS) A CLEAR B CLOUDY C RAINING D SNOWING E FOG / VISIBILITY F OTHER*: G WIND LIGHTING A DAYLIGHT B DUSK - DAWN C DARK - STREET LIGHTS D DARK - NO STREET LIGHTS E DARK - STREET LIGHTS NOT FUNCTIONING* ROADWAY SURFACE A DRY B WET C SNOWY - ICY D SLIPPERY (MUDDY, OILY, ETC.) ROADWAY CONDITIONS (MARK 1 TO 2 ITEMS) A HOLES, DEEP RUTS B LOOSE MATERIAL ON ROADWAY* C OBSTRUCTION ON ROADWAY* D CONSTRUCTION-REPAIR ZONE E REDUCED ROADWAY WIDTH F FLOODED* G OTHER:* H NO UNUSUAL CONDITIONS A CONTROLS FUNCTIONING B CONTROLS NOT FUNCTIONING* C CONTROLS OBSCURED D NO CONTROLS PRESENT/FACTOR* TYPE OF COLLISION A HEAD - ON B SIDESWIPE C REAR END D BROADSIDE E HIT OBJECT F OVERTURNED G VEHICLE PEDESTRIAN H OTHER*: MOTOR VEHICLE INVOLVED WITH (MARK 1 TO 2 ITEMS) A NON - COLLISION B PEDESTRIAN C OTHER MOTOR VEHICLE D MOTOR VEHICLE ON OTHER ROADWAY E PARKED MOTOR VEHICLE F TRAIN G BICYCLE H ANIMAL: I FIXED OBJECT : J OTHER OBJECT: PEDESTRIAN'S ACTIONS A NO PEDESTRIANS INVOLVED B CROSSING IN CROSSWALK AT INTERSECTION C CROSSING IN CROSSWALK - NOT AT INTERSECTION D CROSSING - NOT IN CROSSWALK E IN ROAD - INCLUDES SHOULDER F NOT IN ROAD G APPROACHING / LEAVING SCHOOL BUS A HAZARDOUS MATERIAL B CELL PHONE HANDHELD IN USE C CELL PHONE HANDSFREE IN USE D CELL PHONE NOT IN USE F SCHOOL BUS RELATED OTHER ASSOCIATED FACTOR(S) (MARK 1 TO 2 ITEMS)1 2 3 A VC SECTION VIOLATION B VC SECTION VIOLATION C VC SECTION VIOLATION E VISION OBSCUREMENT F INATTENTION*: G STOP & GO TRAFFIC H ENTERING / LEAVING RAMP I PREVIOUS CRASH J UNFAMILIAR WITH ROAD K DEFECTIVE VEH. EQUIP. L UNINVOLVED VEHICLE M OTHER*: N NONE APPARENT O RUNAWAY VEHICLE A STOPPED B PROCEEDING STRAIGHT C RAN OFF ROAD D MAKING RIGHT TURN E MAKING LEFT TURN F MAKING U TURN G BACKING H SLOWING / STOPPING I PASSING OTHER VEHICLE J CHANGING LANES K PARKING MANEUVER L ENTERING TRAFFIC M OTHER UNSAFE TURNING N XING INTO OPPOSING LANE O PARKED P MERGING Q TRAVELING WRONG WAY R OTHER*: A HAD NOT BEEN DRINKING B HBD - UNDER INFLUENCE C HBD - NOT UNDER INFLUENCE.* D HBD. -IMPAIRMENT UNKNOWN.* E UNDER DRUG INFLUENCE* F IMPAIRMENT - PHYSICAL* G IMPAIRMENT NOT KNOWN H NOT APPLICABLE I SLEEPY / FATIGUED* SOBRIETY - DRUG PHYSICAL (MARK ALL THAT APPLY)1 2 3 .FT OIL BICYCLES Miscellaneous ITEMS MARKED BELOW FOLLOWED BY AN ASTERISK (*) SHOULD BE EXPLAINED IN THE NARRATIVE STATE OF CALIFORNIA DEPARTMENT OF CALIFORNIA HIGHWAY PATROL TRAFFIC CRASH CODING CHP 555 Page 2 (Rev. 3-20) OPI 060 SEATING POSITION 1 TO 9 - STANDARD SAFETY EQUIPMENT AIR BAG INATTENTION CODES EJECTED FROM VEHICLESEATING POSITION 10 - REAR OCC. TRK.. VAN. STATION WAGON. ETC.* 0 - OTHER A - NONE IN VEHICLE B - UNKNOWN C - LAP BELT USED D - LAP BELT NOT USED E - SHOULDER HARNESS USED G - LAP/SHOULDER HARNESS USED J - PASSIVE RESTRAINT USED P - NOT REQUIRED F - SHOULDER HARNESS NOT USED H - LAP/SHOULDER HARNESS NOT USED K - PASSIVE RESTRAINT NOT USED Q - IN VEHICLE USED R - IN VEHICLE NOT USED S - IN VEHICLE USE UNKNOWN T - IN VEHICLE IMPROPER USE U - NONE IN VEHICLE DRIVER PASSENGER V - NO X - NO W - YES Y - YES B - UNKNOWN L - AIR BAG DEPLOYED M - AIR BAG NOT DEPLOYED N - OTHER P - NOT REQUIRED 0 - NOT EJECTED 1 - FULLY EJECTED 2 - PARTIALLY EJECTED 3 - UNKNOWN A - CELLPHONE HANDHELD B - CELLPHONE HANDSFREE C - ELECTRONIC EQUIPMENT D - RADIO / CD F - EATING E - SMOKING G - CHILDREN H - ANIMALS I - PERSONAL HYGIENE J - READING K - OTHER OCCUPANTS CHILD RESTRAINT M / C BICYCLE HELMET DATE OF CRASH (MO. DAY. YEAR)TIME (2400)NCIC #OFFICER ID NUMBER 10/24/2023 1235 N34183300 T232970077 CITED CITED CITED "See Attached Sketch" "See Attached factual diagram" SAME AS OWNER OWNER'S NAME PERSON NOTIFIED TELEPHONE NUMBER OWNER'S ADDRESS METHOD OF NOTIFICATION (MARK ALL THAT APPLY) IN PERSON PHONE DISPATCH CHP 422 LOG / INCIDENT NUMBER DESCRIPTION OF DAMAGE A SAE LEVEL - 0 B SAE LEVEL - 1 C SAE LEVEL - 2 D SAE LEVEL - 3 E SAE LEVEL - 4 F SAE LEVEL - 5 G UNKNOWN VEHICLE AUTOMATION ENGAGED123 A NO AUTOMATION B DRIVER ASSISTANCE C PARTIAL ASSISTANCE D CONDITIONAL AUTOMATION E HIGH AUTOMATION F FULL AUTOMATION G UNKNOWN* S LANE SPLITTING K ADDITIONAL OBJECT(S) STRUCK E CELL PHONE USE UNKNOWN SPECIAL INFORMATION BIKEWAY FACILITY 1 2 3 1 2 3 A SHARED ROADWAY B CLASS I - BIKE PATH * C CLASS II - BIKE LANE * D CLASS III - BIKE ROUTE * E CLASS IV - SEPERATED BIKEWAY * DRE EXAM CONDUCTED STIMULANT HALLUCINOGEN NARCOTIC ANALGESIC DISSOCIATE ANESTHETICS INHALANT CANNABIS DEPRESSANT D 11- POSITION UNKNOWN OLSON, D.345201/17/2024T23297007710/24/202312353300N3418T23297007710/24/202312353300N3418T23297007710/24/202312353300N3418 Page 2 of 6 WITNESS ONLY 56 M EXTENT OF INJURY ("X" ONE)INJURED WAS ("X" ONE) DESCRIBE INJURIES abasion on left knee 1 1 P 3 NAME / D.O.B. / ADD DAVID GLOWICKI / 06/12/1967 / 714 BYNG ST. V8S5B CANADA Telephone (250) 704-8603 (INJURED ONLY) TRANSPORTED BY EMS RUN NUMBER SEXAGE FATAL INJURY DRIVERSUSPECTED SERIOUS INJURY SUSPECTED MINOR INJURY POSSIBLE INJURY PASS PED.BICYCLIS OTHER PARTY NUMBER SEAT POS. AIR BAG SAFETY EQUIP.EJECTEDPASSENGER ONLY STATE OF CALIFORNIA INJURED / WITNESS / PASSENGER CHP 555 Page 3 (Rev. 9-19) OPI 060 DATE OF CRASH (MO. DAY. YEAR)TIME (2400)NCIC #OFFICER ID NUMBER 10/24/2023 1235 N34183300 T232970077 TAKEN TO PREPARED BY Zendejas, M. N3418 ID NUMBER N3418 MO DAY YEAR REVIEWERS NAME MO DAY YEAR 10/24/2023 OLSON, D. 3452 01/17/2024 58 M DESCRIBE INJURIES pain to left wrist 2 1 P 3 NAME / D.O.B. / ADDRESS DANIEL SAWCHUK / 11/07/1965 / 3360 WOODBURN AVE. V8P5C CANADA Telephone (250) 883-7006 (INJURED ONLY) TRANSPORTED BY EMS RUN NUMBER TAKEN TO 54 M DESCRIBE INJURIES abrasion to hands 3 1 P 3 NAME / D.O.B. / ADDRESS GRANT EVANS / 12/30/1969 / 622 INGLEWOOD TERR V8S5B CANADA Telephone (250) 881-5988 (INJURED ONLY) TRANSPORTED BY EMS RUN NUMBER TAKEN TO 54 M DESCRIBE INJURIES NAME / D.O.B. / ADDRESS JASON EARDLEY / 05/01/1969 / 3320 GIBBS RD. V8P4Y CANADA Telephone (250) 883-5062 (INJURED ONLY) TRANSPORTED BY EMS RUN NUMBER # 1 TAKEN TO DESCRIBE INJURIES NAME / D.O.B. / ADDRESS / / Telephone (INJURED ONLY) TRANSPORTED BY EMS RUN NUMBER TAKEN TO DESCRIBE INJURIES NAME / D.O.B. / ADDRESS / / Telephone (INJURED ONLY) TRANSPORTED BY EMS RUN NUMBER TAKEN TO DEPARTMENT OF CALIFORNIA HIGHWAY PATROL OPER. Page 3 of 6 AOI-1 AOI-2 AOI-3 P-1 P-2 P-3 STATE OF CALIFORNIA DEPARTMENT OF CALIFORNIA HIGHWAY PATROL SKETCH CHP 555 Page 4 (Rev. 4-11) OPI 060 DATE OF COLLISION (MO. DAY. YEAR)TIME (2400)NCIC #OFFICER I.D.NUMBER 10/24/2023 1235 N34183300 T232970077 PREPARED BY Zendejas, M. N3418 ID NUMBER N3418 MO DAY YEAR REVIEWERS NAME MO DAY YEAR 10/24/2023 OLSON, D. 3452 01/17/2024 ALL MEASUREMENTS ARE APPROXIMATE AND NOT TO SCALE UNLESS STATED [[{"x":534,"y":477,"width":83,"height":83,"scalex":13.855421686746983,"scaley":13.855OLSON, D.345201/17/2024T23297007710/24/202312353300N3418[[{"x":534,"y":477,"width":83,"height":83,"scalex":13.855421686746983,"scaley":13.855T23297007710/24/202312353300N3418[[{"x":534,"y":477,"width":83,"height":83,"scalex":13.855421686746983,"scaley":13.855T23297007710/24/202312353300N3418[[{"x":534,"y":477,"width":83,"height":83,"scalex":13.855421686746983,"scaley":13.855 Page 4 of 6 STATE OF CALIFORNIA DEPARTMENT OF CALIFORNIA HIGHWAY PATROL NARRATIVE/SUPPLEMENTAL CHP 556 Page 4 (Rev. 4-11) OPI 060 DATE OF COLLISION (MO. DAY. YEAR)TIME (2400)NCIC #OFFICER I.D.NUMBER 10/24/2023 1235 N34183300 T232970077 PREPARED BY Zendejas, M. N3418 ID NUMBER N3418 MO DAY YEAR REVIEWERS NAME MO DAY YEAR 10/24/2023 OLSON, D. 3452 01/17/2024 "0M8R4KGxGuEAAAAAAAAAAAAAAAAAAAAAPgADAP7/CQAGAAAAAAAAAAAAAOLSON, D.345201/17/2024T23297007710/24/202312353300N3418"0M8R4KGxGuEAAAAAAAAAAAAAAAAAAAAAPgADAP7/CQAGAAAAAAAAAAAAA"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"e1xydGYxXGRlZmYwe1xmb250dGJse1xmMCBDYWxpYnJpO317XGYxIFRpbWVzIE5"0M8R4KGxGuEAAAAAAAAAAAAAAAAAAAAAPgADAP7/CQAGAAAAAAAAAAAAA"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"e1xydGYxXGRlZmYwe1xmb250dGJse1xmMCBDYWxpYnJpO317XGYxIFRpbWVzIE5"0M8R4KGxGuEAAAAAAAAAAAAAAAAAAAAAPgADAP7/CQAGAAAAAAAAAAAAA"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"e1xydGYxXGRlZmYwe1xmb250dGJse1xmMCBDYWxpYnJpO317XGYxIFRpbWVzIE5"0M8R4KGxGuEAAAAAAAAAAAAAAAAAAAAAPgADAP7/CQAGAAAAAAAAAAAAA"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"e1xydGYxXGRlZmYwe1xmb250dGJse1xmMCBDYWxpYnJpO317XGYxIFRpbWVzIE5 Page 5 of 6 STATE OF CALIFORNIA DEPARTMENT OF CALIFORNIA HIGHWAY PATROL NARRATIVE/SUPPLEMENTAL CHP 556 Page 4 (Rev. 4-11) OPI 060 DATE OF COLLISION (MO. DAY. YEAR)TIME (2400)NCIC #OFFICER I.D.NUMBER 10/24/2023 1235 N34183300 T232970077 PREPARED BY Zendejas, M. N3418 ID NUMBER N3418 MO DAY YEAR REVIEWERS NAME MO DAY YEAR 10/24/2023 OLSON, D. 3452 01/17/2024 "0M8R4KGxGuEAAAAAAAAAAAAAAAAAAAAAPgADAP7/CQAGAAAAAAAAAAAAAOLSON, D.345201/17/2024T23297007710/24/202312353300N3418"0M8R4KGxGuEAAAAAAAAAAAAAAAAAAAAAPgADAP7/CQAGAAAAAAAAAAAAA"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"e1xydGYxXGRlZmYwe1xmb250dGJse1xmMCBDYWxpYnJpO317XGYxIFRpbWVzIE5"0M8R4KGxGuEAAAAAAAAAAAAAAAAAAAAAPgADAP7/CQAGAAAAAAAAAAAAA"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"e1xydGYxXGRlZmYwe1xmb250dGJse1xmMCBDYWxpYnJpO317XGYxIFRpbWVzIE5"0M8R4KGxGuEAAAAAAAAAAAAAAAAAAAAAPgADAP7/CQAGAAAAAAAAAAAAA"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"e1xydGYxXGRlZmYwe1xmb250dGJse1xmMCBDYWxpYnJpO317XGYxIFRpbWVzIE5"0M8R4KGxGuEAAAAAAAAAAAAAAAAAAAAAPgADAP7/CQAGAAAAAAAAAAAAA"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"e1xydGYxXGRlZmYwe1xmb250dGJse1xmMCBDYWxpYnJpO317XGYxIFRpbWVzIE5 Page 6 of 6 1 Gloria Sanchez From:Gloria Sanchez Sent:Wednesday, January 10, 2024 12:27 PM To:Claudia Bray Subject:RE: File# CJP-3050349 -Palm Desert - Glovicki/Sawchuk/Evans Attachments:IMG_1660.JPG; IMG_1663 - Where the spill began.JPG; IMG_1664.JPG; IMG_1667.JPG Good afternoon, Claudia: See response to your questions below in red and photographs attached. I followed up on the police report, today. Therefore, I will get that to you as soon as I receive it. Thank you and have a great rest of the day. Gloria From: Claudia Bray <cbray@carlwarren.com> Sent: Thursday, December 21, 2023 9:14 AM To: Gloria Sanchez <gsanchez@palmdesert.gov> Cc: Andrea Staehle <astaehle@palmdesert.gov>; Amber Molina <amolina@palmdesert.gov> Subject: RE: File# CJP-3050349 -Palm Desert - Glovicki/Sawchuk/Evans Hello Gloria, As Tim mentioned I have been assigned to handle these new claims against the city. I have a few questions for the city to answer in order to complete my fact development for liability. Does the city have jurisdiction of the loss location?If not, who does?Was the cit Hello Gloria, As Tim mentioned I have been assigned to handle these new claims against the city. I have a few questions for the city to answer in order to complete my fact development for liability. 1. Does the city have jurisdiction of the loss location? Yes. a. If not, who does? N/A 2. Was the city made aware of the oil on the roadway prior to this incident occurring? No. Any documented complaints? a. If so, when? (date/time) 3. Can the city verify that the substance on the street was indeed oil? Yes, it was oil. 4. Did city staff go out to the scene and take their own photos? Yes. a. If so, please send them to me for my review. Attached. 5. Any idea where the oil came from or how it got on the roadway? From a Burrtec Waste Industries, Inc. garbage truck. Witnessed by the City’s Landscape Specialist Joe Rojas who saw the spill as the garbage truck pulled into the Palm Desert Civic Center. Joe Rojas alerted the driver. Joe Rojas followed the spill to the trailer park on the northwest corner of Magnesia Falls Drive and Portola Avenue where the spill began and continued west on Magnesia Falls Drive through the roundabout and then south on San Pablo Avenue where the garbage truck entered the Palm Desert Civic Center. 6. Is there a nearby construction site that the oil could have possibly come from? No. 7. Please secure a copy of the police report and send it to me for my review. Police report has been requested from the Riverside County Sheriff’s Office (Palm Desert Police). 8. Is there any additional information the city would like to share with me with regards to these claims? No. Thank you for your help and support. Claudia Bray 2 Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 | Fax: (866) 254-4423 Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the in tended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. From: Tim Varon <TVaron@carlwarren.com> Sent: Wednesday, December 20, 2023 4:08 PM To: Gloria Sanchez (gsanchez@palmdesert.gov) <gsanchez@palmdesert.gov> Cc: Claudia Bray <cbray@carlwarren.com>; Andrea Staehle <astaehle@palmdesert.gov>; Amber Molina Nunez (amolinanunez@cityofpalmdesert.org) <amolinanunez@cityofpalmdesert.org> Subject: FW: File# CJP-3050349 -Palm Desert - Glovicki Hi Gloria, Please find attached copies of our Notification Letters for your records. Have a great day! Tim Tim Varon Claims Supervisor TVaron@carlwarren.com Tel: (657) 622-4287 | Fax: (866) 254-4423 3 Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. From: gsanchez@palmdesert.gov <gsanchez@palmdesert.gov> Sent: Wednesday, December 20, 2023 11:11 AM To: thileman@palmdesert.gov; Isra.Shah@bbklaw.com; cjpia Claims <cjpia@carlwarren.com> Cc: cescobedo@palmdesert.gov; amejia@palmdesert.gov; astaehle@palmdesert.gov; Tim Varon <TVaron@carlwarren.com> Subject: File# CJP-3050349 -Palm Desert - Glovicki Attached for your review and appropriate action is Claim No. 911 submitted by David Glowicki. I will contact the Palm Desert Police for a copy of police report T232970077 and will forward to Carl Warren as soon as possible. If you have questions or need additional information, please do not hesitate to contact me. Kind regards, City of Palm Desert Clerk's Office Some people who received this message don't often get email from gsanchez@palmdesert.gov. Learn why this is important 1 Gloria Sanchez From:Tim Varon <TVaron@carlwarren.com> Sent:Wednesday, December 20, 2023 4:08 PM To:Gloria Sanchez Cc:Claudia Bray; Andrea Staehle; Amber Molina Subject:FW: File# CJP-3050349 -Palm Desert - Glovicki Attachments:Claim Against the City of Palm Desert For Damage(s.pdf; dan bike 2.jpg; dan bike.jpg; dave bike 2.jpg; dave bike 3.jpg; dave bike.jpg; dave scrape.jpg; grant bike.jpg; road 2.jpg; road.jpg; 20231220 Glowicki Palm Desert NOTIFICATION LETTER 3050349.pdf; 20231220 Sawchuk Palm Desert NOTIFICATION LETTER 3050349.pdf; 20231220 Evans Palm Desert NOTIFICATION LETTER 3050349.pdf Hi Gloria, Please find attached copies of our Notification Letters for your records. Have a great day! Tim Tim Varon Claims Supervisor TVaron@carlwarren.com Tel: (657) 622-4287 | Fax: (866) 254-4423 Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public PO Box 2411, Tustin, CA 92781 T: 657-622-4200 | F: 866-254-4423 | www.carlwarren.com CA License #2607296 December 20, 2023 Grant Evans 622 Inglewood Terr. Victoria, BC, V8S 5B9, Canada RE: Claimant : Grant Evans Date of Loss : 10/24/23 Claim Filing Date : 12/20/23 Our File Number : 3050349 CBV Carl Warren & Company is the claims management company for the City of Palm Desert. The above-captioned claim has been assigned to Claudia Bray for handling. Ms. Bray may be reached at 657-622-4216. When our investigation is complete, we will advise you as to whether or not we can recommend settlement. Very Truly Yours, CARL WARREN & CO. Timothy M. Varon Timothy M. Varon Claims Supervisor cc: Member Agency: City of Palm Desert, attn:Gloria Sanchez PO Box 2411, Tustin, CA 92781 T: 657-622-4200 | F: 866-254-4423 | www.carlwarren.com CA License #2607296 December 20, 2023 David Glowicki 714 Byng St. Victoria, BC, V8S 5B2, Canada RE: Claimant : David Glowicki Date of Loss : 10/24/23 Claim Filing Date : 12/20/23 Our File Number : 3050349 CBV Carl Warren & Company is the claims management company for the City of Palm Desert. The above-captioned claim has been assigned to Claudia Bray for handling. Ms. Bray may be reached at 657-622-4216. When our investigation is complete, we will advise you as to whether or not we can recommend settlement. Very Truly Yours, CARL WARREN & CO. Timothy M. Varon Timothy M. Varon Claims Supervisor cc: Member Agency: City of Palm Desert, attn:Gloria Sanchez PO Box 2411, Tustin, CA 92781 T: 657-622-4200 | F: 866-254-4423 | www.carlwarren.com CA License #2607296 December 20, 2023 Daniel Sawchuk 3360 Woodlawn Ave. Victoria, BC V8P 5C1, Canada RE: Claimant : Daniel Sawchuk Date of Loss : 10/24/23 Claim Filing Date : 12/20/23 Our File Number : 3050349 CBV Carl Warren & Company is the claims management company for the City of Palm Desert. The above-captioned claim has been assigned to Claudia Bray for handling. Ms. Bray may be reached at 657-622-4216. When our investigation is complete, we will advise you as to whether or not we can recommend settlement. Very Truly Yours, CARL WARREN & CO. Timothy M. Varon Timothy M. Varon Claims Supervisor cc: Member Agency: City of Palm Desert, attn:Gloria Sanchez 1 Gloria Sanchez From:gsanchez@palmdesert.gov Sent:Wednesday, December 20, 2023 11:11 AM To:Todd Hileman; Isra Shah; cjpia@carlwarren.com Cc:Chris Escobedo; Anthony Mejia; Andrea Staehle; tvaron@carlwarren.com Subject:Claim Against the City of Palm Desert - 911 - David Glowicki Attachments:Claim Against the City of Palm Desert For Damage(s.pdf; dan bike 2.jpg; dan bike.jpg; dave bike 2.jpg; dave bike 3.jpg; dave bike.jpg; dave scrape.jpg; grant bike.jpg; road 2.jpg; road.jpg Attached for your review and appropriate action is Claim No. 911 submitted by David Glowicki. I will contact the Palm Desert Police for a copy of police report T232970077 and will forward to Carl Warren as soon as possible. If you have questions or need additional information, please do not hesitate to contact me. Kind regards, City of Palm Desert Clerk's Office