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HomeMy WebLinkAboutC17230A 1st Amendment Assignment From WM to Burrtec Waste IndustriesContract No. C17230A CITY OF PALM DESERT Community Services INTEROFFICE MEMORANDUM REQUEST: REQUEST FOR APPROVAL OF FIRST AMENDMENT TO THE SOLID WASTE FRANCHISE AGREEMENT RELATIVE TO THE ASSIGNMENT FROM WASTE MANAGEMENT OF THE DESERT TO BURRTEC WASTE INDUSTRIES. SUBMITTED BY: Frankie Riddle, Director of Special Programs DATE: September 28, 2006 CONTENT: 1. Amendment Agreement to the Solid Waste Franchise Agreement 2. Exhibits No. 1 and No. 2 3. Annual Contract Bond (Corporate Guaranty) RECOMMENDATION: By Minute Motion, approve the First Amendment to the Solid Waste Franchise Agreement, contingent upon approval of the items listed in Findings No. 6 and No. 7. BACKGROUND: At its meeting of April 27, 2006, City Council approved the assignment of the Solid Waste Franchise Agreement between the City of Palm Desert and Waste Management of the Desert to Burrtec Waste Industries, contingent upon resolution of Findings No. 6 and 7 outlined within the Review of Proposed Assignment of Solid Waste Agreement Report prepared by Hilton, Farnkoph, & Hobson, LLC (HFH) dated April 17, 2006. The attached Franchise Agreement Amendment and Exhibits address the items specifically identified within Findings No. 6 and No. 7 as part of the Agreement Assignment from Waste Management to Burrtec. The Findings that required further review and the status of each are as follows: Finding No. 6: Performance (Corporate) Guaranty: The City should require Burrtec Waste Industries to execute a performance guaranty to assure the performance of Burrtec Waste & Recycling, which would be similar to that required of Waste Management per Agreement: Attached as Exhibit 2. Finding No. 7: Update of Agreement: Items within the existing Agreement that should be MEETING DATE CONTINUED TO updated to ensure compliance: A) Compressed Natural Gas (CNG) vehicles: All seven (7) CNG ‘qNI...:ement trucks are now in service. * By Minute Motion, continued to October 12, 2006. 2-0-1 (Ferguson ABSTAINING, Benson ABSENT) i� PASSED TO 2ND READING Contract No. C17230A City Council Staff Report Meeting of September 28, 2006 B) Implementation of the mandatory automated collection system: Phase III completion date is 9/30/2006 and Phase IV commences 10/1/2006. Anticipated final completion date is 12/31/2006. C) Remittance of Franchise and Recycling Fees with backup documentation: Documentation is now being received. D) Food Waste Recycling Program: Attached as Exhibit No. 1. E) Walk-in service fee of $8.20 per household per month clarification: With the approval of the 2006 rates, the fee increased to $8.61. The fee will cover one trash and one recycle totter. An additional $8.61 will be required to include walk-in service for the green waste totter. City staff has been working with HFH, Waste Management, and Burrtec over these past couple of months to finalize the remaining items as identified within the report. As of September 2006, all items have been resolved to the satisfaction of City staff and (now) Burrtec. (Burrtec officially became the new owner/operator of the Coachella Valley facilities as of July 2006.) Staff recommends that the City Council approve the First Amendment to the Solid Waste Franchise Agreement for Integrated Solid Waste Management Services. Submitted By: Approval: FRANKIE RIDDLE CARLOS L. 0 DIRECTOR OF SPECIAL PROGRAMS CITY MANAG 1 SHEILA ILLIG ACM/COMMUNIRVICES 2 FIRST AMENDMENT TO THE SOLID WASTE FRANCHISE AGREEMENT FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES This first amendment (the "Amendment") to that certain agreement entitled "Franchise Agreement Between City of Palm Desert and Waste Management of California, Inc. d/b/a Waste Management of the Desert for Integrated Solid Waste Management Services" (the "Agreement") is entered between the City of Palm Desert (hereinafter "City") and Burrtec Waste and Recycling Services, LLC (hereinafter "Burrtec" and/or "Company") so as to be effective as of the 28th day of September, 2006. RECITALS A. City and Waste Management of California, Inc., a California Corporation dba Waste Management of the Desert ("Waste Management") entered the Agreement, which is dated September 11, 2000. B. Waste Management has requested that its rights and obligations as set forth in the Agreement be transferred and assigned to Burrtec. The City Council through its action on April 27, 2006, has consented to this request contingent upon various factors, including Burrtec's agreement to make certain amendments to the Agreement, which amendments the parties desire to memorialize by entering into this Amendment. �K�I•L���M�E.� Section 1. Company. The term "Company" as used in the Agreement shall now refer to Burrtec. Section 2. Assumption of Obligations. By executing this Amendment, Burrtec agrees to assume all of Waste Management's right, title, and interest in and to the Agreement, and Burrtec agrees to timely discharge, perform or cause to be performed and to be bound by all of the liabilities, duties and obligations imposed in connection with the Agreement as if it had been the original party designated as the "Company" thereto. Included specifically, without limitation, in the obligations and liabilities assumed by Burrtec are those set forth in Article 9 of the Agreement. In this regard, Burrtec shall specifically assume any obligations and liabilities of Waste Management resulting from the application of the hazardous substances indemnification provisions of Section 9.2 in connection with the disposal of materials at facilities chosen by Waste Management or owned by Waste Management or any of its Affiliates. While as between Company and City this Agreement requires Company to assume any obligations and liabilities of Waste Management that may exist pursuant to the terms of the Agreement, it is not intended to abrogate any rights which Company may have pursuant to that certain asset purchase agreement entered between Burrtec and Waste Management, dated January 25, 2006, to seek indemnification or other remedies from Waste Management as a result of Company's obligations hereunder. 1-1 Section 3. Maintenance of Existing Service Levels. Burrtec shall provide programs, staffing levels, and services that meet or exceed the programs, staffing levels and services provided by Waste Management prior to City's consent to the transfer and assignment of the Agreement, without regard to whether such programs, staffing levels or services are specifically called out in the Agreement or this Amendment. Section 4. Insurance and Suretv Bond. As a condition precedent to the effectiveness of City's consent to the transfer the Agreement to Burrtec, Burrtec shall provide evidence of insurance and a performance bond meeting the requirements of Sections 9.4 and 9.5 in the Agreement. Section 5. Vehicles. Burrtec understands that Section 4.8.2.0 of the Agreement requires the exclusive use of route trucks powered by compressed natural gas (CNG), liquefied natural gas (LNG) or other alternative fuel that results in similar emission performance standards. Waste Management requested a temporary waiver of this requirement until June 2006; City approved a waiver through January 2006. Burrtec agrees to use only conforming route trucks in the City by June 30, 2006. Section 6. Conversion to Automation. Burrtec will continue the transition of all single- family residential homes with individual collection service to automated refuse, recycling, and green waste cart service. The transition has already begun and a rate adjustment has already been implemented to compensate Burrtec. Burrtec will complete the transition of all such homes by December 31, 2006, and meet all intermediate implementation progress deadlines agreed upon by Waste Management and City. Only homes approved by City on a case by case basis shall be exempt from this requirement. Section 7. Documentation of Fee Payments. Sections 3.1.1 and 3.1.2 of the Agreement require Company's payment of Franchise and Recycling fees to the City on a quarterly basis. Along with these payments, Burrtec shall submit documentation of the prior quarter's Gross Receipts by line of service, identifying the Disposal cost and Recyclables processing fee components, and tonnage collected by line of service (residential, commercial, roll -off) and disposed under the Agreement. This documentation is due by the 30t' day following the end of each quarter and must be complete and accurate to be considered received by the City. Section 8. Food Waste Recycliniz Program. Upon written notice from the City Manager, Burrtec shall implement a pilot food waste recycling program as described in Attachment 1 to this amendment. Section 9. Wheelout Service Charge (Walk-in Fee). Single family customers requesting walk-in service (to have their carts manually wheeled out to the point of collection) per Section 4.3.4 of the Agreement may be charged an additional monthly service charge, currently $8.61, for the wheelout of one refuse and one recycling cart (the combined cost for the pair of carts is $8.61). For each additional refuse and/or recycling cart, and for any green waste carts, to be wheeled out by Company, Company may charge an additional $8.61 per cart per month. 1-2 Section 10. Transition Obligations: The parties agree that the Agreement shall be amended to add the following language to Section 21.2: 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 solid waste enterprise it designates to assure a smooth transition of 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, and providing such information for the City's use in negotiating with a new contractor or in issuing a request for proposals for a service provider, as well as at the time of transition. 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 any new solid waste enterprise with all keys, security codes and remote controls used to access garages, gates and bin enclosures. Company shall be responsible for coordinating transfer immediately after its final collection activities, so as to not disrupt services. 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 90 days prior to the transition date, provide an updated list two weeks before the transition, and a final updated list with any changes the day before the transition. Company shall provide means of access to the new solid waste enterprise at least one full business day prior to its first day of collection, and within sufficient time so as to not impede in any way the new solid waste enterprise from easily servicing all containers. Section 11. Liquidated Damages: The parties agree that the following events shall be added to the list of events in Section 11.4 that result in the assessment of liquidated damages: 7. Use of Alternative Fuel Route Vehicles c) For each day after June 30, 2006 that any route truck that does not utilize alternative fuel, in accordance with Section 4.8.2.0 of the Agreement and Section 5 of this Amendment, is used in the City, Company shall pay per non- conforming truck: $100.00/day Transition to Citv-wide Automation For each day after December 31, 2006, that any single family residential home with individual service has not yet been transitioned to collection services using automated refuse, recycling and green waste carts per Section 6 of this Agreement, Company shall pay: $100.00/day 1-3 9. Documentation of Fee Calculation 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 and Section 7 of this Amendment, Company shall pay: $50.00/day 10. Food Waste Recycling Program Implementation For each day after the 120 day period following the City's written request for Company to implement a pilot food waste program that Company has not implemented the pilot food waste recycling program as described in Exhibit 1 to this Addendum, Company shall pay: $100.00/day Section 12. Guarantee of Companv's Performance. Concurrent with executing this Amendment, Company shall deliver to City a Corporate Guarantee, in the form attached hereto as Exhibit 2, executed by Burrtec Waste Group Inc. affirming that it shall act as guarantor of Company's obligations as set for in the Agreement, as amended by this Amendment. Section 13. Effectiveness of Agreement. All provisions of the Agreement, except for those expressly amended herein, shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to be effective as of the date written above. CITY OF PALM DESERT BURRTEC WASTE AND RECYCLING SERVICES, LLC LIM Attest: Loin Jim Ferguson, Mayor Rachelle Klassen, City Clerk Approved as to form: IN Dave Erwin, City Attorney I-4 By: Print Name Signature Title EXHIBIT 1 FOOD WASTE DIVERSION PROGRAM Pilot Restaurant Food Waste Diversion Program Upon written direction of the City Manager, Company shall implement a restaurant food waste diversion pilot program within one hundred twenty (120) days of City's request. The Pilot program will include all customer training, collection services, disposal, processing, administration, and all other services (aspects) required to implement program, and shall be provided by Company at no cost to the City or participants. Company shall not be required to implement the pilot program if there is not a properly permitted processing facility to accept the food waste in the Coachella Valley. Pilot program shall consist of the following: a. Participants — Participants shall be restaurant customers receiving commercial refuse service. Company shall identify at least five restaurant customers for advance approval by City as program participants. Company shall accompany this list of recommended participants with a complete restaurant customer list that includes: 1) Restaurant refuse customer name, 2) customer address, and 3) solid waste collection service level (number and size of containers and frequency of collection). City may instruct Company to select alternative participants. b. Program Containers — Company shall provide each participant with 64-gallon wheeled carts for the separation and collection of food waste. Each participant shall be entitled to a sufficient number of carts to accommodate all food waste generated. Pickup of food waste containers shall be at least twice per week. c. Training — Company shall conduct training for all participating restaurant staff. Company shall provide training on site, at times coordinated with the restaurant owners and operators. Company estimates training time of approximately thirty (30) hours per restaurant. d. WeiahinR and Monitoring of Tonnage — Prior to initiating pilot program, Company shall weigh all of participants' refuse collected for a one -week period to calculate the average weight per yard of refuse bin capacity. After the pilot program has started, Company shall separately weigh all refuse and food waste collected for a one -week period once each quarter during the pilot program and report the results to the City. Company shall be responsible for reporting weights for the five sample periods, including the pre - implementation measurement and the four quarterly post -implementation measurements. e. Participant Service Levels — This pilot program is intended to reduce the quantity of refuse being collected from participants and sent to the landfill for disposal. As a result, participants may elect to reduce their refuse collection service levels by requesting a smaller refuse container or reducing the frequency of collection. Participants' billings will be adjusted to reflect their lower service levels. 1-5 f. Reoortins to City Prior to Implementation — Prior to commencing the restaurant food waste diversion pilot program, Company shall submit the following information to the City: Name and address of each participant ii. Each participant's refuse service level prior to implementation of the food waste program, including the number and size of containers, and frequency of collection for each wastestream (refuse, recycling) iii. Each participant's solid waste collection billings (for the reported service levels before implementation of the pilot food waste program) iv. Initial refuse tonnage weight measurements, as determined per section "d" above v. Name of facility to be used for food waste processing and per ton gate fee to be paid by Company g. Monthly Reports During Pilot Prop -ram - Within 20 days of the end of each calendar month, Company shall submit the following information: i. Food waste tons collected and diverted ii. Complaints and challenges encountered. iii. Results of the most recent tonnage measurements, as conducted under section "d" above, if performed that month h. Final Report to City — 30 days after the completion of the pilot program, Company shall submit to City: Name and address of each participant ii. A comparison of each participant's service level, including the number and size of containers, and frequency of collection type for each wastestream (refuse, recycling, food waste) before and after implementation of the food waste program iii. A comparison of each participant's solid waste collection billings before and after implementation of the food waste program iv. Final tonnage weight measurements, per section "d" above v. A proposed strategy to implement the food waste program City-wide, including supporting calculations and assumptions. Duration of Pilot Program — Company shall conduct the pilot program for a minimum of six (6) months. City and Company may, by agreement, choose to extend the program beyond the initial six-month period. Hwel City -Wide Restaurant Food Waste Diversion Program The purpose of the pilot program is to help evaluate the effectiveness of a City-wide Restaurant Food Waste Program, and to provide guidance for an effective implementation. Based upon City's goals and needs, and results of the pilot program, City may request Company to implement a City-wide restaurant food waste diversion program. 1-7 EXHIBIT 2 CORPORATE GUARANTY THIS GUARANTY (the "Guaranty) is given as of the _A day of , 2006, and is made with reference to the following facts and circumstances: A. Burrtec Waste and Recycling Services, Inc., hereinafter ("Contractor") is an affiliate of Burrtec Waste Group (Guarantor). B. Contractor has assumed the obligations of Waste Management of California, Inc., a California Corporation dba Waste Management of the Desert ("Waste Management") in that certain agreement with the City of Palm Desert ("City") dated September 11, 2000 and entitled "Franchise Contract Between City of Palm Desert and Waste Management of California, Inc. d/b/a Waste Management of the Desert for Integrated Solid Waste Management Services" (the "Agreement"). C. Contractor has additionally entered into an agreement with City dated the 28`h day of September. 2006 and entitled "First Amendment to Franchise Contract for Integrated Solid Waste Management Services" (the "First Amendment") D. It is a requirement of the First Amendment, and a condition to the City approving the transfer and assignment of the Agreement to Contractor, that Guarantor guaranty Contractor's performance of the Agreement, including as it has been modified by the First Amendment. E. Guarantor is providing this Guaranty to induce the City to approve the transfer of the Agreement and enter into the First Amendment. 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 Contractor of each and every term and condition of the Agreement, as amended and modified by the First Amendment, which Contractor is required to perform, satisfy or observe. In the event that Contractor fails to perform, satisfy or observe any of the terms and conditions of the Agreement, as amended and modified by the First Amendment, Guarantor will promptly and fully perform, satisfy or observe them in the place of the Contractor (including by causing the services required of Contractor to be performed by a solid waste enterprise acceptable to City). Guarantor hereby guarantees payment to the City of any damages, costs or expenses which might become recoverable by the City from Contractor due to its breach of the Agreement, as amended and modified by the First Amendment. 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 Contractor under the Agreement, or the First Amendment, 2-1 shall constitute a guarantee of payment and not of collection, and are not conditional upon the genuineness, validity, regularity or enforceability of the Agreement or First Amendment. 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 Contractor in an action to enforce, or for damages for breach of, the Agreement as amended and modified by the First Amendment (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 Contractor; (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, as amended and modified by the First Amendment, guaranteed hereunder or the impairment or suspension of any of the City's rights or remedies against the Contractor; or (4) any merger or consolidation of the Contractor with any other corporation, or any sale, lease or transfer of any or all the assets of the Contractor. 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 Contractor, (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 Contractor 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 it sole discretion any or all rights and remedies available to it against Contractor 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 upon it, by statute, regulation or otherwise, to avoid any of its obligations under, or to terminate, cancel, quit or surrender this Guaranty. 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 Contractor prior to such avoidance or recovery, and (b) payment in full of any obligations then outstanding. 2-2 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 Contractor's obligations under the Agreement. Guarantor shall not be released of its obligations hereunder as long as there is any claim by the City against Contractor arising out of the Agreement based on Contractor'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 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. Governing Law: Jurisdiction. This Guaranty is and shall be deemed to be an agreement 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. 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. Binding 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. 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. 2-3 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 73-510 Fred Waring Drive Palm Desert, CA 92260 with a copy to the City's Legal Counsel at the same address. To the Guarantor: President Burrtec Waste Group 9890 Cherry Avenue Fontana, CA 92335 Guarantor: Burrtec Waste Group, Inc. By: Signature Print Name: Title: 2-4 WESTCHESTER FIRE INSURANCE COMPANY ANNUAL CONTRACT BOND Bond No.: K06954583 Premium: $15,000.00 Annually KNOW ALL MEN BY THESE PRESENTS, That we, Burrtec Waste & Recyling, LLC, as Principal, and th- WESTCHESTER FIRE INSURANCE COMPANY, as Surety, are held and firmly bound unto City of Palm Desert, a�-; Obligee, in the penal sum of one million and 00/100 Dollars ($1.000.000.00), for the payment of which sum, well and truly to be made, the Principal and Surety bind themselves, their heirs, administrators, executors, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, The Principal has entered into a certain written contract with the Obligee, dated April 27, 2006 for the intergrated solid waste management services in accordance with the terms and conditions of said contract, which is hereby referred to and made a part hereof as if fully set forth herein. PROVIDED, HOWEVER, by acceptance of this bond, Obligee acknowledges and agrees that this bond only covers a tern; beginning June 30, 2006 and ending June 30, 2007 regardless of the number of years the aforesaid contract shall cover or be in force, and not withstanding anything in the aforesaid contract to the contrary. Such term may be continued from yea, to year by the issuance of a continuation certificate executed by the Surety. If such term is so continued, the liability of the Surety for each successive term shall not be cumulative, but rather, the liability of the Surety shall be limited to the penal amount of this bond for the entire period of time which such bond may be in effect pursuant to such continuation certificates. Failure to renew said bond shall not constitute a default under the contract. Any suit under this bond must be instituted before the expiration of thirty days from the date of termination of this bond. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, That, if the above bounden Principal shall weal and truly keep, do and perform, each and every, all and singular, the matters and things in said contract set forth and specified to be by the said Principal kept, done and performed at the time and in the manner in said contract specified, and, shall pay over, make good and reimburse to the above named Obligee, all loss and damage which said Obligee may sustain by reason of failure or default on the part of said Principal then this obligation shall be void; otherwise. it sha?i remain in full force and effect. SEALED with our seals and dated this 18m day of September, 2006. BURRTEC WASTE & RECYCLING, LLC Principal BY: S V WESTCHESTER FIRE INSUR E COMPANY -- rety BY: John Kookootseja3, Attorrti�y { act ACKNOWLEDGMENT State of California County of Orange On September 18, 2006 before me, Jefferey W. Pursley, Notary Public, personally appeared John Kookootsedes, personally know to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on this instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Signature�:'D- - x� v� nian�r 1676377 1lolay ►�OMc - caMloir+Io 0 ago car* MyComn,�.�yw�s+t�.zot (Seal) THE BACK OF THIS DOCUMENT LISTS VARIOUS SECURITY FEATURES THAT WILL PROTECT AGAINST COPY COUNTERFEIT AND ALTERATION. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT tw X h� - - State of California ss. County of _ .cN \'��z L\c i� w1C� On �,i��1C)�o before me, Date N e and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared��,c� Name(s) of Signer(s) j DEBRA G. HANSEN Commission # 1379077 Z Z -m Notary Public - California ; San Bernardino County My Comm. Expires Oct 8, 2006 drp'ersonally known to me C= proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is re subscribed to (thin instrument and acknowledged to me that ha�hey executed the same in e hi / their authorized capacity(ies), and that by hit/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ITNESS my hand and official seal. Place Notary Seal Above Signature of Notary Public OPTIONAL Though the information below is not required by law. it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Individual Corporate Officer — Title(s): Partner — _ Limited ❑ General MiLeW Attorney in Fact Top of trumb here ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number of Pages: Signer's Name: ❑ Individual C Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General i1flelill1m, I , ... . Attorney in Fact Top of thumb he e J Trustee ❑ Guardian or Conservator _] Other: Signer Is Representing: 0 2004 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313.2402 Item No. 5907 Reorder: Call Toll -Free 1-800-876.6827