HomeMy WebLinkAboutReso 85-1997RESOLUTION N0.~5 ~;~
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING AN AG][~EEMENT FOR
COLLECTION AND DISPOSAL OF SOLID WASTE
BETWEEN THE CITY OF SOUTH SAI`T FRANCISCO AND
SOUTH SAN FRANCISCO SCAVENGER COMPANY AND
AUTHORIZING EXECUTION OF THE AGREEMENT
WHEREAS, South San Francisco Scavenger Company is currently the exclusive franchisee for
collection and disposal of solid waste generated within South San Francisco pursuant to an exclusive
franchise agreement dated August 1, 1990; and
WHEREAS, South San Francisco Scavenger Company currently provides recycling services for
recyclable materials generated within the City of South San Francisco pursuant to an agreement dated July
20, 1989; and
WHEREAS, the parties wish to ensure the health, safety, ,and public welfare of the City of South
San Francisco's residents and businesses by providing efficient services for recycling and the collection
and disposal of all solid waste generated in the City pursuant to the. terms of a long term agreement
providing for competitive services rates; and
WHEREAS, the City of South San Francisco desires to obtain, and the South San Francisco
Scavenger Company is willing to provide, against the City indemnity, on the terms and conditions
contained within the proposed agreement, against penalties assessed for failure to meet the fifty percent
diversion requirement under the California Integrated Waste Management Act (AB939); and
WHEREAS, the City of South San Francisco desires to obtain solid waste collection and disposal
services according to crate-setting mechanism which will, according to the terms of the proposed
agreement, ensure that rate payers within the City of South San Francisco receive solid waste collection
and disposal services at rates below those paid in comparable citie;c; and
WHEREAS, the City of South San Francisco hereby finds and determines that, pursuant to section
40059(a) (2) of the California Public Resources Code, the public; health, safety, and well-being require that
solid waste handling services within the City be provided pursuant to exclusive franchise.
Francisco that:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
1. The City Council of City of South San Francisco hereby approves the execution of the
agreement for the collection and disposal of solid waste matter i:n the City of South San Francisco between
the City of South San Francisco and South San Francisco Scavenger Company, a copy of which is attached
hereto as exhibit "A"
2. The City Manager is hereby authorized to execute the aforementioned agreement on
behalf of the City of South San Francisco.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City
Council of the City of South San Francisco at a regular __ meeting held on the 9th day of
J u 1 y , 1997 by the following vote:
AYES: Counci 1 members James L . Datzm~n~~~aene R. Mullin
Robert Yee and Joseph A. Fernekes
NOES:
None
ABSTAIN: C,pi~ n~i 1 mamhar .lnhn R Pa~nd -
ABSENT: None _
/~
ATTEST:.
City Clerk
A:\WASTE.RES
EXHIBIT A TO RESOLUTION N0. 85-97
-- AGREEMENT FOR THE COLLECTION AND DISPOSAL OF SOLID
WASTE MATTER IN THE CITY OF SOUTH SAN FRANCISCO
This Agreement, dated , 1997, is made by and between the
City of South San Francisco, a municipal corporation (hereinafter "City"), and South
San Francisco Scaven er Company, Inc., a California corporation (hereinafter
"Scavenger Company', with reference to the following:
WHEREAS, the Integrated Waste Management Act of 1989 ("AB 939")
requires that City divert fifty percent (50%) of its waste stream from landfills by the
year 2000; and
WHEREAS, City and Scavenger Companyy have determined that the primary
method for City to satisfy this requirement v~nll be to increase the recycling and reuse
of materials otherwise disposed of in landfills; and
WHEREAS, the most contemporary public education and recycling programs,
and a modern materials recovery facility capable of diverting greater amounts of solid
waste, will be needed to accomplish such result; and
WHEREAS, such new programs and facility will entail a significant, long-term
financial investment; and
WHEREAS, City desires for Scavenger Company to assume, and Scavenger
Company is willin to assume, the obligation to ensure that compliance with the
requirements of A~ 939 is achieved, subject to the terms and conditions in this
Agreement and applicable law; and
WHEREAS, City desires, and Scavenger Company is willing to provide, an
indemnity, on the terms and conditions in this Agreement, against penalties assessed
for failure to meet the 50% diversion requirement under AB 939; and
WHEREAS, City desires to provide adequate, ongoing service revenues to fund
the required programs and facilities while assuring City's residents and businesses of
service rates that are competitive with those charged in neighboring communities;
and
WHEREAS, Scavenger Company currently collects and disposes of solid waste
matter accumulated in the City pursuant to an exclusive franchise agreement with
City entitled AGREEMENT FOR THE COLLECTION AND DISPOSAL OF SOLID
WASTE REFUSE IN THE CITY OF SOUTH SAN FRANCISCO and dated August
1, 1990 (hereinafter the "Prior Franchise Agreement"); and
WHEREAS, Scavenger Company currently collects and sells recyclable
materials enerated in City pursuant to an exclusive franchise a eement with Cityy
entitled A~REEMENT TO PROVIDE RECYCLING SERVICE and dated July 20,
1989 (hereinafter the "Prior Recycling Agreement"); and
~..
-- WHEREAS, the pparties wish to assure the health, safety and public welfare of
the City's residents andl~usinesses by providing efficient services for recycling and the
collection and disposal of all solid waste generated in the City pursuant to the terms
of a long-term agreement providing for competitive service rates;
NOW, THEREFORE, the parties agree as follows:
1. Franchise Grant.
1.1 City hereby grants to Scavenger Company, and Scavenger Company
hereby accepts from City, the exclusive franchise right and privilegge, subject only to
Section 1.3 below, as City's Scavenger and Authorized Recycling A ent under
applicable law, to collect, remove, transport, recycle, compost and dispose of all solid
waste generated in City in accordance with the provisions of City's laws and
regulations pertaining to the accumulation, collection and removal thereof and any
applicable State and Federal statutes or administrative rules.
1.2 All solid waste collected by Scavenger Company pursuant to this
Agreement shall become the property of Scavenger Company upon its possession
thereof; provided that nothing in this section shall be deemed a waiver by City of its
rights and duties under this Agreement.
(a) To the extent permitted by applicable law, City agrees to take such
steps as may be reasonably necessary to protect Scavenger Company's ownership of
solid waste, including recyclable materials, placed at the curbside or designated
cAollection location for collection by Scavenger Company under the terms of this
gr ement. City and Scavenger Company shall a so cooperate to protect Scavengger
Company's exclusive rights to collect all solid waste, including recyclable materiars, in
accordance with the terms hereof, to the extent permitted by applicable law.
1.3 The franchise to collect, remove, transport, recycle, compost and dispose
of solid waste (including recyclable materials) granted to Scavengger C-ompany
hereunder shall, througflout the term hereof and in all respects, be exclusive, except
as otherwise provided by applicable law and as follows:
(a) recyclable materials and salvageable materials generated at any
residential, commercial and industrial or institutional property that are source
separated may be transported personally by the generating person for donation to or
collection by a collection or processing facility that has been duly approved and
authorized as such by a governmental or other appropriate authority, including
beverage containers recycled at authorized facilities under the California Beverage
Container Recycling Litter Reduction Act;
(b) recyclable materials and salvageable materials generated at any
residential, commercial and industrial or institutional property that are source
separated may be sold or donated by the generating person to any charitable entity;
(c) recyclable materials and salvageable materials generated at any
residential, commercial and industrial or institutional pro erty that are source
separated may be accumulated by the generating person for collection and collected
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..__ by licensed junk collectors;
(d) solid waste generated at any residential, commercial and industrial,
or institutional property maybe personally transported by the person generating
same to any transfer station or materials recovery facility;
(e) yard waste removed from a residential, commercial and industrial or
institutional property by a ggardening, landscaping or tree trimming contractor as an
incidental part of a comprehensive service offered by such contractor, rather than as a
hauling service, may be disposed of by such contractor at any licensed landfill,
transfer station or materials recovery facility;
(f) construction debris and demolition debris removed from a
residential, commercial and industrial or institutional property by a licensed
construction or demolition contractor using its own employees and equipment as an
incidental part of a comprehensive service offered by such contractor, rather than as a
hauling service, may be disposed of by such contractor at any transfer station or
materials recovery facility; and
(g) hazardous waste and household hazardous waste may be disposed
of in any lawful manner.
1.4 Except as expressly pprovided herein, this Agreement shall su ersede the
Prior Franchise Agreement and tfie Prior Recycling Agreement as of .the e~fective date
set forth in Section 3 below, when such Prior Agreements shall cease to have any
r-- effect (except for pperiods prior to such effective date). In particular, the amount
remaining in the balancin account under the Prior Franchise Agreement as of the
effective date of the new franchise granted hereunder shall be eliminated without cost
to City.
2. Definitions.
2.1 "Charitable entity" means any, not-for-profit organization or entity
maintained for community service, education or the public good, including service
clubs, scouting organizations, religious and educational organizations and recognized
charities.
2.2 "Collect" or "collection" means the collection, transportation, and
removal of solid waste within and from City.
2.3 "Commercial and industrial property" means property upon which
business activity is conducted, including but not limited to retail sales, services,
wholesale operations, manufacturing and industrial operations, but excluding
businesses conducted upon residential property whicfi are permitted under applicable
zoning regulations and are not the primary use of the property.
2.4 "Construction debris" means construction materials generated during the
construction or renovation of a residential, commercial and industrial or institutional
property.
2.5 "Containers" means any and all types of solid waste receptacles including
but not limited to rectangular bins, cylindrical aontainers commonly available at
retail stores for residential use, and any and all other kinds of receptacles, irrespective
of size or shape.
2.6 "Demolition debris" means used construction materials generated during
the razing or renovation of a residential, commercial and industrial or institutional
property.
2.7 "Hazardous waste" means all substances defined as hazardous waste,
acutely hazardous waste or extremely hazardous waste by the State of California, or
identified as hazardous waste by the U.S. EnvirOnmentalProtection Agency, under
applicable laws or regulations.
2.8 "Household hazardous waste" means hazardous household waste
generated at residential properties within the City.
2.9 "Institutional property" means the premises or site of any governmental
entity, includin, g.ycit, count-y,, s-tat~and/or federal buildings, public scho-ols, colleges,
and pubhc recreauonal s~tes.
2.10 "Licensed junk collector" means a person that is licensed with City to
collect source separated recyclable materials and source separated salvageable
materials from tine person generating such materials in accordance with applicable
law.
2.11 "Recyclable materials" means solid waste which may be reused or
processed into a fbrm suitable for reuse through reprocessing or remanufacture
consistent with the requirements of AB 939, including, witinout limitation, paper,
newsprint, printed ma£ter, pasteboard, paper containers, cardboard, glass, aIufninum,
PET, HDPE, and other plas-tics, beverage containers, compostable m&erials
(including yard waste), and wood, bricl~ and stone in reusable size and condition.
Recyclabl-e materials shall include those items of construction debris and demolition
debris which are described in this Section 2.11.
2.12 "Residential property" means property used for residential purposes,
irrespective of whether suc-h dwelling units are rental units or are owner--occ-upied.
Com-plexes of four or more units, wlS~ether in a single structure, or connected -
structure, or series of structures may be subject to procedures and rates which differ
from other lower density residentialproperties.
2.13 "Salvageable materials" means used articles capable of being restored or
resold for reuse, in e-ither case without reprocessing or remanufacture, iffcluding
antiques, used building supplies and automobiles, and automobile parts. Salvageable
materials shall include those items of construcuon debris and demolition debris
which are described in this Section 2.13.
2.14 "Solid waste" means all putrescible and nonputrescible residential refuse,
commercial solid waste, institutional solid waste, garbage, yard waste and rubbish as
defined in Public Resources Code Section 40191, incluaing, withoUt limitation, for
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the purposes of this Agreement construction debris, demolition debris, recyclable
materials and salvageable materials, but excluding hazardous waste and household
hazardous waste.
2.15 "Source separated," as. to recTclable. materials, means recT. clable materials
that have been separated from sohd waste that is not recTclable material and from all
other types of recTclable materials by the person generating such solid waste or
recyclable materials at the residential, commercial and industrial or institutional
rPerOperty where such solid waste or recyclable materials are generated to form one
aaily identifiable category of recTclable,, material as set fo,,rth in Section 2.11 above
that is saleable without t:urther sorting. Source separated, as to salvageable
materials, means salvageable materials that have been separated from solid waste that
is not salvageable material by the person generating such solid waste or salvageable
materials a(the residential, commercial and industrial or institutional property where
such solid waste or salvageable materials are generated. (For example, cardboard that
has been separated by a Business from glass, PET plastic and wet garbage is source
separated s6 long as the separation is accomplished by the generator at the
commercial and industrial 'property where all of such items are generated and all of
such items are generated by such business.)
2.16 "Yard waste" means tree trimmin, g. grs, ass.cuttin, gs, dead p . .lants, leaves,
branches and dead trees (not more that s~x (6) inches in diameter) and similar
materials generated at a residential, commercial and industrial or institutional
property.
3. Term.
3.1 The term of the franchise shall be for a period of twenty_ (20) years,
commencing on the effective date of November 1, 1997 and ending October 31,
2017.
3.2 Subject to Section 10.2 of this Agreement, Scavenger Company shall
have one (1) option to extend this Agreement. and the franchise granted-hereunder, on
the terms and conditions herein for a period of ten (10) years comme.n_,clng November
1, 2017 and ending October 31, 2027. Notice of Scavenger Company s exercise of
such option must be ~ven at least six (6) months prior to October 31, 2007. City
shall endeavor to nou~v Scavenger Company in writing of this deadline at least nine
(9) months prior to Ortober 31, 2007, provided that City's failure to do so shall not
serve to extend the deadline. The option to extend hereunder may not be exercised
unless Scavenger Company shall be in material compliance with the terms of this
Agreement at the time of exercise and on October 31, 201 . '
3.3 Prior to Scavenger Company's exercise of its option to extend, the
parties shall meet to review the terms and conditions of this Agreement in light of
Ehanges in circumstances and conditions affecting the subject ~natter hereof~hat have
occurred since the date hereof. Each party hereby agrees to use its best efforts to
identify and agree to any modifications in Such terms and conditions needed to fairly
and reasonabl~fi address any such changes in circumstances and conditions.
4. Franchise Fee.
4.1 On or before the twentieth (20th) day of each month during the term of
this franchise., Scavenger Company shall remit to City a sum of money equal to seven
percent (7%) of the g~oss revenues collected by Scavenger Company fron~ customers
within the City limits during thepreceding calendar month as a franchise fee. If the
franchise fee is not paid on or before the twentieth (20th) day of any month, a late
payment fee in an amount equal to eighty-three one-hundredths of a percent (0.83%)
of the amount owing per mouth will b~e charged for each thirty (30) day period the
franchise fee remains unpaid.
4.2 Each monthly~ remittance to City shall be accompanied by a statement
detailing gross revenue of Scavenger Company from customers for the period covered
from operations conducted or permitted pursuant to this A eement. In addition,
Scavenger Company shall maintain copies of all billings an~r~ollection records for
three (3) years following the date of billing for inspection and verification by City.
5. Services.
5.1 Solid Waste. Scavenger Company shall collect and dispose of all solid
waste (other than source separated-recyclable materials, which are subject to Section
5.2 below) generated by any person at every residential, commercial and industrial,
and institutional property within City at least once each week on a regularly
scheduled day in accordance with this Agreement.
5.2 Recvclable Materials. Scavenger Company shall collect all source
separated recyclable materials generated by any person at every residential property
(excluding multi le-unit residences) within City at least once each week ona
regularl schedu~d da in accordance with this A eement, exce t that ard waste
Y Y gr P Y
shall be collected from such ro erties at least once eve two weeks Scaven er
P P ry . · g
Company shall collect all source separated recyclable materials generated by any
person at every commercial and industrial, institutional and multiple-unit residential
prolperty within City upon a schedule established between Scavenger Company and
each generating person (or the owner, landlord or property manager, in the case of
multi, i~.l..le-unit residential pro p erties), but not. less . fre quently.than is re quired to
expeditiously collect sucl~ recyclable materials, w~thout creating storage, health, or
safety hazards.
(a) Scavenger Company may refuse to collect recyclable materials
generated by, and shall not be obligated to continue to provide any recycling
receptacle or container to, any person who after reasonable warning_, fails to sort
re clable materials~pro erly, or fails or refuses, to allow Scaven. get Compan to
on
shall report to City any warning notices issued by Scavenger Company }'or this
Purpose, and City shah investigate same to determine whether the person receiving
the notice has violated the applicable ordinance.
5.3 Changes: Missed Pick-Ups, Scavenger Company shall not alter or adiust
collection services ~vithout providing .prior notice to all sei'vice addresses, and any '
schedule modifications shall not result in reduced service frequency to any customer.
Scavenger CoTM.panysshall collect and remove, solid waste and recyclable materials
from any premises "missed" or "skipped" dunng the regularly scheduled time, within
one (I) working day after demand for collection is made by the customer or City.
5.4 Containers-Solid Waste. Scavenger Company shall collect solid waste
from containers of a size and weight customarily sold for use upon residential
propert, y and which, when filled, are safely ca_ap~able of bein.g handled, by one person,
prowded that such containers have lids capable of preventing sohd waste from
spilling out under normal circumstances. Nothin,g in this section shall be deemed to
preclude the use of bins or other containers of a s~ze and shape acceptable to
Scavenger Company and, in the event. City. and Scavenger Compan. y shall institute
newprograms hereunder which reNmre bros. or other containers, of a particular size
and shape, customers on residential properues shall use bras or other containers
meeting such requirements.
5.5 Containers-Recyclable Materials.
(a) Single Unit Residential. Scavenger Company shall provide and
distribute one set of residential recycling containers, at no cost in addiuon to the
monthly rates, to each residential p pyro err (other than multiple-unit residential
properties) in City. The recycling containers are those containers described in the
attached Schedula 1, entitled "Re-cycling Containers," or other similar containers
mutually agreed upon b Scavenger Company and City. The cost of suppl 'rig such
recycling containers sha~l be borne by Scavenger Company, at no cost in a~iuon to
the monthly rates.
(i) Replacement of Containers. The parties acknowledge that
from time to time a single unit residential generator may damage or destroy the
recycling containers supp- lied by Scavenger Compan~y, and that-such unusu'al loss or
damage would not be considered within the reasonable control of the residential
generator..Scaveng.er Comp ygran a ees that it will encourag.e the residential, generator
to replace sa~d recychng containers at the expense of the res~denual generator. To
this end, Scavenger Co~npany shall make sets of three (3) such recycling containers
available for purchase by any single unit residential generator at a price not to exceed
the prevailing cost to Scavenger Company. The parties also acknowledge that from
time to time residential recycling containers may be stolen from the cur~b. When
notified of such occurrence~ Sca9enger Company shall replace, at no charge to the
single unit residential generator, not more than a reasonable number of times, the
stolen container(s). The frequency with which this shall occur shall be determined
mutually between City and Scavenger Company. Following the distribution of a
recycling container to-each single uhit residential p pro erty,-Scavenger Comp yan shall
not be required to purchase or provide additional, recycling containers, to such
P
roperty, unless requested to do SOo}Yunusualb C~ty, or as replacement containers are needed
by a residential generator because loss or damage beyond the reasonable
control of the resident as described above. In the event Cfty requests Scavenger
Company to provide additional single unit residential recycling containers, the cost of
the containers and the distribution-thereof shall be borne by City, except as provided
above.
(b) Multiple-Unit Residential, Commercial and Institutional.
Scavenger Company shall also make available recycling containers for each
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multiple-unit residential, each commercial and industrial and each institutional
property, within City of a size and shape suitable for each such location. The cost of
supplying, repairing,' and replacing such recycling containers shall be borne by
Scavenger Company.
(c) Ownership. The ownership of all recycling containers purchased
~ Scavenger Company under this Agreement shall be and remain with Scavenger
~ompany.
5.6 Personnel and Equipment. Scavenger Company shall furnish the
personnel,, labor and e q ui p ment re q uired for. the collection,, removal,, handling and
d~sposal of all solid waste generated within the corporate hm~ts of the City.
5.7 Disposal Facilities. Scavenger Company shall haul all solid waste
IC°llected by it in City to the existin· g transfer station ogrp_erated by Blue Line Transfer,
nc.., a related party entity. As soon as the Blue Line. ~ mnsfer, Inc. relocated transfer
station and materials recovery facility referred to in the Recitals above are
operational, Scavenger Company shall haul all solid waste collected by it in City to
such facilit All of such solid waste that is neither rec~clable nor salva eable shall be
h Y' g
auled to a licensed and suitable disposal facility (i.e., ~andfill) located outside City
selected by Scavenger Company. In the event that such a disposal facility is not
readily available due to no fault of Scavenger Comtpany, or. due to events beyond the
control of Scavenger Company, such as acts of God, public emergency, strike or
lockout by emplo~/ees of another entity, Scavenger Company shall us~ its best efforts
to locate such a disposal facility, but shall not be held liable to the extent that such
lack of disposal facility prevents the hauling of solid waste to a site outside City.
5.8 Local Office. Scavenger Company shall maintain an office where service
ma:y be a~ppllied for and complaints made. The..address and telephone number of such
office shall regularly be included in customer billings and service information
distributed to the public. Scavenger Company's office shall have a responsible
individual availablh dail betweeffthe hours of ei ht o'clock a m and five o'clock
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p m, exceptin Saturda , Sunda and holidays ~alls for "missed" collections shall be
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received 24 hours per day.
5.9 Pick-Ups at City Facilities. Scavenger Company shall remove, without
charge, all solid was£e genera'ted at all City facilities (of the nature and in the
amounts currently collected) at least once. per week, but Scavenger Company may
charge all. other public agencies for services rendered at the same rates and on the
same bas~s as private firms or individuals are charged for similar services.
5.10 Annual Citywide Clean-Up. Scavenger Company shall provide one
annual free all purpose City-wide collection, at which it will accept all nature of solid
waste, except hazardous waste and household hazardous waste. The dates for such
collections shall be publicized in advance by Scavenger Company. The collection
shall be made each ~ear throughout the term of this-franchish in' accordance with
Er. actices and procedures established by Scavenger Company, and approved by the
city Manager.
5.11 Additional Services. Scavenger Company shall provide additional
services upon request of City, or upon the proposal of Scavenger Company as
~pprovedb,~ City pursuant to Section 5.13 beIow, subject, if the costs incurred by
scavenger company to provide such services increase, to the establishment by mutual
written agreement of a reasonable rate therefor. .
5.12 Permits and Licenses. Scavenger Company shall obtain and maintain
throughout the term of the franchise all permits, licenses and approvals necessary or
required for Scavenger Company to perform the work and services described herein.
Cit. y shall cooperate with Scavenger Com any in connection, with such permits,
hcenses and approvals, and shall renew a~lP such permtts, licenses and approvals issued
by City, provided that Scavenger Company is not in material breach of-this
Agreement and provided Scave~ger Company shall have fulfilled all existing
requirements for the renewal of such permits, licenses and approvals.
5.13 Diversion Requirement.
(a) Programs: AB 939 Compliance: Indemnification. In order to
achieve compliance witl5 the fifty percent (50%) or, if applicable, lesser diversion
requirement of AB 939, Scavenger Company shall propose and implement various
rec~rcling, solid waste reduction, public education and reportingprograms for City
and its residents, including the basic elements set forth in Exhibit "A" attached to this
Agreement. (Scavenger Company shall continue to propose and implement new or
improved pro,ams, t-or. so loftg as compliance .... with A~ 939's diversio-n requirements is
legally reqmred.) Subject to the condmons set forth tn Secnon 5.13(b) below,
Scavenger Company hereby agrees (I) to divert the percentage of the City's solid
waste, and perfdrm such other actions, as necessary to achieve compliancb with the
requirements of AB 939 as it may be amended from time to time; and (ii) to protect,
defend and indemnify City and its Council, boards, commissions, officers, agents,
representatives and employees against all fines or penalties imposed, after reasonable
o test, by the California Integrated Waste Management Board as the result of the
failure to meet such 50% or, if applicable, any lesser percentage diversion
requirement imposed under AB 939 as it may be amended from time to time;
provided, that Scavenger Company is given the opportunity to jointly control the
contest of any such fines and/or penalties so imposed with City.
(b) City Responsibilities. Other Factors. Notwithstanding any other
provision in this Agreerhent, Scavenger Company's obligations pursuant to Section
5.13(a), above, relating to AB 939 compliance and indemnification shall depend
upon:
(I) City taking all actions necessary to implement pro,ams and
adopt reasonable rate increases as ~0roposed by Scavenger Com-pany in kccoVrdance
herewith;
(ii) City considering, enacting, administering, and enforcing
appropriate laws, re:gutlations, incentives and sanctions. . necessary to assure the
exclusive nature of Scavenger Company's franchise rights hereunder and to gain the
waste diversion participation of residential properties, commercial and industrial
properties and institutional properties within City as deemed reasonably necessary to
ensure diversion goal compliance;
(iii) The fines or penalties which give rise to such
indemnification obligations, or the failure to achieve AB 939 compliance, not
9
resulting from the negligent or willful acts or omissions of City (excluding for this
]purpose andy ne.~ligent or willful acts or omissions by Scavenger Company that would
ve imputed to city);
(iv) Scavenger Company not being required by City or by a
change in applicable law or regulation to cease performing any of i{s recycling or
other services which contribute to landfill diversion; and
(v) There being no change in any applicable law or regulation
which materially impairs Scavenger Company's ability to find bona fide end users of
recyclable materials.- - - -
(c) Unforeseeable Circumstances. In the event that Scavenger
Company shall have used its best efforts consistent with Exhibit "A" to ensure that
the 50% (or lesser) diversion requirement of AB 939 is achieved, but shall determine
that such requirement may nonetheless not be satisfied, Scavenger Company shall
/0ve City prompt written notice of such determination. City and Scavenger
Company shall then meet promptly to decide whether to increase rates b~yond the
rates called for in Section 6 below to fund additional efforts which were
unforeseeable on the date hereof and which Scavenger Company has reasonably not
undertaken to date (excluding any residential yard waste program, and excluding the
construction and operation ota new materials recovery facility in a commercially
reasonable manner-for the purpose of achieving compriance wi'th AB 939's divers'ion
requirements) to satisfy such diversion requirement, provided that, if City is
unwilling to do so, Scavenger Company shall be relieved of its AB 939 compliance
and indemnification obligations set forth in Section 5.13(a) above.
6. Rates.
6.1 Establishment of Rates. The maximum service rates specified in Exhibit
"B" to this Agreement have been agreed upon by City and Scavenger Company and
shall take effect on the effective date of the franchise as set forth i-n Section 3 above.
Such maximum service rates shall be subject to review and revision as set forth in
Sections 6.2, 6.3 and 6.4 below. Scavenger Company shall not charge any amount in
excess of the approved rates for services £equired by or permitted un~ler tfiis
Agreement.
6.2 Modification Based on Consumer Price Index. The maximum rates
specified under this Agreement shall be increased July 1 st every_ year (beginning in
1998, but excluding t~e year 2000 and every third year'thereafter) by an amount
eq.ual to eighty ercent (80%) of the percentage increase, if any, in the Consumer
Price Index for ~rban Wage Earners and Clerical Workers, as published and
maintained bythe United States Bureau of Labor Statistics for the San
Francisco-Oakland Metropolitan Area (1982-84= 100), for the prior year, using the
Index most recently published before March 31 st of such year and before the prior
March 31 st; provide~l, however, that, in 1998, the maximum rates set forth on
Exhi '" ......
b~t B shall be adjusted by the percentage ~ncrease ~n the Index for the prior
seventeen (17) months, using the Index most recently published before March 3 i,
1998 and before November I, 1996. The procedure f6r rate adjustments under this
Section 6.2 shall be as follows.
(a) Not later than March 31 st of each year that is subject to a rate
increase under this Section 6.2, Scavenger Company shall file with City a written
10
Notice of Intention to adjust each of the then current maximum rates effective as of
July. 1 st' of the same year by the above-specified percentage of the percentage increase
~n the Index for the applicable period.
(b) W£thin thirty (30) days of the filing of the Notice of Intention,
the City Manager shall review the Notice of Intention, and either confirm that the
proposed maxifnum rates are within the limit of Section 6.2(a) above or establish by
mutual agreement with Scavenger Company any necessary changes to the proposed
maximum rates to make such confirmation.
(c) The City Manager shall immediately inform the City Council in
writing of the new maximum rates determined in accordance with this Section 6.2
and, not later than June 30th of the year of the Notice of Intention, the City Council
shall act upon the new maximum rates as appropriate, with any new maximum rates
to become effective on July 1 st of the same year.
(d) In the extent that the Consumer Price Index described in Section
6.2 (a) above shall be discontinued or materially modified during the term of the
franchise, the parties shall use their best efforts to substitute a replacement index
and/or otherwise change Section 6.2(a) above so as to replicate, as nearly as possible,
the mutual intention of the parties to rely on the results of the Consumer Price Index
described in Section 6.2(a) ~is in effect on the date hereof.
6.3 Extraordinary Items. In addition to adjustments under Sections 6.2
above and 6.4 below, the maximum rates hereunder shall be subject to increase or
decrease to reflect extraordinary increases or decreases in Scavenger Company's costs
of providing services hereunder', such as landfill or disposal costs, costs mand-ated by
governmenfal action or judicial decisions, franchise fees and similar items. Increases
or decreases in maximum rates pursuant to this Section 6.3 shall take effect so as to
eliminate, to the maximum extent possible, Scavenger Company's loss or gain of
revenUe and/or profit resulting from the extraordinary increase or decreas, e in costs
from the date(s)such increase or decrease first occurred.
6.4 Modification Based on Neighboring Cities' Rates. Irrespective of any
adjustments to maximum rates pursuant to Sections 6.2 and/or 6.3 above, every
maximum service rate applicable under this Agreement shall be adjusted effective as
of July 1 in each of the years 2000 and every third_year thereafter (I) in the case of
each of the service categories set forth in Exhibit "C" attached to this Agreement, not
to exceed ninety-five percent (95%) of the average of the most current rates for such
service category charged in the jurisdictions set Forth in Exhibit "D", and (ii) in the
case of eveO other se-nice category not set forth on Exhibit "C", to equal an amount
reasonably a' rrived at by extrapblating from the new rates determined7 in accordance
with Section 6.4(I) above. The most current rate ch,a,~,ed in each jurisdiction listed
in Exhibit "D" for a service category listed in Exhibit C' shall mean the rate that
applies as of the date ScavengefCompany files the Notice of Intention described in
Section 6.4(a), below, and shall be based on the actual published rate for a period
including such date. The average of the most current rates for a particular service
category listed on Exhibit "C" stiall be determined by adding all the most current rates
for such service category, and dividing by the number of jurisdictions set forth in
Exhibit "D". The procedure for rate adjustments under this Section 6.4 shall be as
follows.
(a) Not later than March 31 st of each year that is subject to a rate
adjustment under this Section 6.4, Scavenger Company shall file with City a written
11
Notice of Intention to adjust, effective as of July 1 st of the same year, each of the
then current maximum service rates in accordance with Section 6.4 above.
(1) An example of such calculation for an Exhibit "C" service
category and for a related service category not listed in Exhibit "C" is as follows: if
the total of the most current rates in the applicable jurisdictions, which number
thirty-two (32), for weekly 2-y_ard commercial front end loader service per month as
of March 31, 2000 were $4,480, Scavenger Company's Notice of Intention for July 1,
2000 would specify $133 [$4,480 divided by 32 mukiplied by .95] as the new
maximum rate for such service category, andcould specify $266 for weekly 4- yard
commercial front end loader service per month.
(b) Within thirty_ (30) days of the filing of the Notice of Intention, the
City Manager shall review the Notice of Intention, and either confirm that the
proposed maximum rates conform with Section 6.4 above, or meet with Scavenger
Company to establish by mutual agreement with Scavenger Company any necessary
changes to the proposed maximum rates to make such confirmation.
(c) The City Manager shall immediately inform the City Council in
writing of the new maximum rates determined in accordance with this Section 6.4
and, not later than June 30th of the year of the Notice of Intention, the City Council
shall act upon the new maximum rates as appropriate, with any new maximum rates
to become effective on July 1 st of the same year.
(d) From time to time during the term of the franchise, but at least
every seven (7) years after the beginning ot: such term, City and Scavenger Company
shall meet to review the list of jurisdictions set forth in Exhibit "D" for the purPose of
assuring that the services and rate structures in such jurisdictions are comparable to
those ot: Scavenger Company in City. Such comparison shall take into account such
factors as each p~artv reas*ona'bly beh'eves to be reIevant, including those set forth in
Exhibit "E" attakhed to this Agreement. Any change to the jurisc~ictions set forth in
Exhibit "D" shall require the consent of each party, which consent shall not be
unreasonably withheld.
7. Provisions Applicable to Equipment and Personnel.
7.1 Scavenger Company shall use in connection with transportation of solid
waste modem motofdump timcks with water tight bodies, suffiCient in number and
capacity to efficientlvPerform the work recluireit by the Agreement. Scavenger
Company shall keep'tile outside of the truck bodies free from dirt and filth, and shall
clean the inside of the trucks in a sanitary manner on a regular basis. Suitable
measures shall be taken to prevent refuse from falling into public streets or places.
Scavenger Company shall l~eep all trucks freshly painted in a uniform manner, and
the firm name, telephone number, and truck number of each truck shall appear on
each side thereof in a conspicuous manner. Scavenger Company shall keep all trucks
in good maintenance and repair, regt~_larly inspect same, and keep accurate records of
all vehicle maintenance. Scavenger Company shall, also be resp.onsible, for causing
Blue Line Transfer, Inc. to maintain all of its eqmpment and vehicles ~n safe and
sanitary condition in accordance with the standards set forth for Scavenger
Company's vehicles in this Section 7.1.
..7 2 Scavenger Company shall not litter premises, in thel~rrocess of.making
collecuons nor allow refuse to blow or fall from any vehicle used tor collections.
Scavenger Company shall clean-up any and all spills, including oil and debris on the
12
streets, resulting: from its operations. Should Scavenger Company fail to promptly
clean up such s~ills resultifi~: from its operations after notice from City, Scavenger
Company shallq0e liable to City for all reasonable costs incurred by City in doing so.
7.3 Scaven~:er Company shall provide suitable operational and safety
training for all of its~employees who utilize or operate vehicles or equipment for
collection of solid waste or who are otherwise d~rectly involved in sucti collection.
Scavenger Company shall use its best efforts to assure that all employ_ees present a
neat appearance, conduct themselves in a courteous manner, and perform the work as
quietly as possible. Scaven er Compan. y shall also .designate one or more. qualified.
employees as supervisors of§ield operauons, who will devote a substanual pomon of
their time in the field checking on collection operations, including responding to
complaints.
8. Records, Reports and Audited Statements.
8.1 Scavenger Company shall keep and maintain accurate books and records
clearly showing its rgvenues and expenses in connection with the operations provided
for in this Agreement.
8.2 Each fiscal year of Scavenger Company, commencing with fiscal year
1997-98, Scaven~:er Company shall provide City, within ninety (90) days of
Scaven~:er Comr~inv's fisc~al vear-enc[, a copy of its annual audited financial
statem~'nts and~ma~agemeniletter for thai'fiscal year, provided the City Manager
may grant an extension of thirty (30) days. Such financial statements shall include a
supplemental combining schedule showing Scavenger Company's results of operations
by franchise area, incluclin~ the specific revenues and expenses in connection with the
operations provided for in this A~eement and others included ~ such
financial statements. The finand'al statements and supplemental schedule shall be
re ared in accordance with generally accepted accounting principles (GAAP) and
P - · · a
audited, in accordance with generally accepted aud~ung standards (GAAS), by
certified public accountant (CPA) licensed(in good standing) to practice public
accounting in the State of California as determined by the S~tate of California
De artment of Consumer Affmrs Board of Accountancy. The CPA s op~mon o
Scavenger Comnanv's annual financml statements and supplemental schedule shall be
unqualified, exdeptJas to uncertainties for which the ultimate outcome cannot be
determined by the date of the CPA's opinion.
Scaven~:er Company shall, in its aKreement with the CPA performing its annual
audit referred~to above, have its CPA make available to City (or City's designated
representative) such CPA's working papers related to the audit.
Scavenger Company shall make available to City such of its additional records,
information or reports, as requested by City from time-to-time upon reasonable
notice by City.
8.3 Scavenger Company, agrees that the records of any and all related party
entities including but not limiteoto Blue Line Transfer, Inc. but excluding Royal
Salvage Company shall be made available to City (or City's design_ ated representative)
so long as the related party entity does business with Scavenger Company and, in
13
general, is associated with the removal and disposal of solid waste or recyclable
materials. As part of the annual audit requirement described in Section 8.2,
Scavenger Company shall provide City, within ninety (90) days ,o_f Blue Line
TransfEr, Inc. s fiscal year-end, a copy of Blue Line Transfer, Inc. s annual audited
Mfinancial statements and management letter for that fiscal y_ear, provided the Cit
anager may grant an extension of thirty (30) days. The financial statements s~all
be prepared in accordance with GAAP and audited, in accordance with GAAS, by a
certified public accountant (CPA) licensed in the State of California as determined by
the .S, tate-of California Department of Co,nsumer Affairs Board of Accountancy. The-
CPA s opinion on Blue Line Transfer, Inc. s annual financial statements shall be
unqualified, except as to uncertainties for which the ultimate outcome cannot be
determined by the date of the CPA's opinion.
Blue Line Transfer, Inc. shall, in its agreement with the CPA performing its
.annual audit referred to above, have its CP~ make available to City (or City's
designated representative) such CPA's working papers related to th'e audit. -
For purposes of this Section 8.3, "related party entity" shall mean any entity
the ma'oritl y of which is owned or effectively controlled, by one or more of the resent
and former shareholders, directors, officers or semor management employees o~
Scavenger Company or their families.
8.4 Every three (3) months during the period from the commencement of
the franchise throhgh the date which applies for purposes of measuring compliance
with the diversion requirements of AB 939, Scavenger Company shall supply City
with a written report setting forth Scavenger Company's best estimate of the
diversion rate as of the end of the most recent month. Scavenger Company shall also
supply City_ with such related information as City may reasonably request and as
Scavenger Company possesses concerning such estimate.
9. Hold Harmless and Insurance.
9.1 Scavenger Company shall indemnify and hold harmless City, its
Council, boards, commissions, o[ficers, agents, representatives and empl6yees from
any and all actions, claims or damages brought for or on account of injuries to or
death of anyp_erson or damage to p~operty resulting from or arising otit of the
op erations, of°S caven)Igt~eer Com p andy,, its officers, a gents, em.p loyees, or servants pursuant
to th~s Agreement. duty of Scavenger Company to ,ndemmfy and hold harmless
shall include the duty to defend as set forth in California Civil Code Section 2778.
9.2 Scav,enger Company shall have in effect during the term of the
franchise, workers compensation and employer liability insurance providing full
statutory coverage. In signing this Agreement, Scaver/ger Company makes the
following certification required by Section 1861 of the California Labor Code.
"I am aware of the provisions of Section 3700 of the California Labor Code
which require eve employer to be insured against liability of workers' compensation
or to undertake s~SYf-insurance in accordance with the provisions of the code, and I
will comply with such provisions before commencing the performance of the work of
this Agreement."
14
9.3 Scavenger Company shall take out and maintain during the term of the
franchise liability insurance for the following types and minimum amounts:
(a) General liability, including comprehensive form, premises
operations, products/completed operations, hazard, contractual insurance, broad form
property damaze, independent contractors and personal liability, with limits for
bodily and property dimage combined of $500,000 each occurrence and $500,000
aggregate.
(b) Automobile liability, includingcomprehensive form, owned, hired
and non-oWned, with a limit of $1,000,000 forbodily injury and prOperty damage
combined.
(c) Excess liability, umbrella form, with a limit for bodily injury and
property damage combined of $5,000,000 each occurrence and $5,000,000 aggregate.
Insuran(e certificates evidencing the required coverage shall be filed wii~ City
and shall be subject to approval by the City Aitorney. City, its City Council, boards,
commissions, officers, agents and employees shall be named as additional insureds on
any such policies of insurance which shall also contain a provision that the insurance
afforded thereby shall be primary. No such policy shall 1oe canceled or modified
except upon thirty (30) days' prior written notice to City. '
10. Franchise Termination.
10.1 In the event Scavenger Company defaults in the performance of any of
the duties to be performed by it under the terms of this Agreement, City shall give
Scavenger Company written notice, either by mail or by personal service, setting
forth tlfe default. Scavenger Company shall correct such default within fifteen (15)
days after receipt of such notice unless the default cannot, by its nature, be cured
within said period, in which case the cure period shall be extended for such
additional time as is reasonably necessary to effect a cure, provided that Scavenger
Company shall commence eff6rts to effect a cure as soon as practicable and shall
diligently pursue the cure. If Scavenger Company fails, neglects or refuses for the
applicable cure period to correct any default which constitutes a material breach of
t~fs Agreement, then City, without further notice and without suit or other
proceedings, may cancel and annul the rights and privileges of the franchise grant.
Nothing in this section shall prohibit the parties ffom meeting to discuss ways to
resolve the issue.
10.2 Notwithstanding Section 10.1, above, the sole remedy for Scavenger
Company's failure to divertihe percentage of the City's solid waste, and/or perform
such other actions, as necessary to achieve compliance with the requirements of AB
939 as it may be amended from time to time, shall be as set forth in this Section
10.2. Provided that all the conditions t° Scavenger Company's AB 939 compliance
obligation set forth in Section 5.13(b), above, shall have been satisfied, and City shall
have suffered material harm as the result ,of such failure by Scavenger Company to
achieve compliance, Scavenger Company s ability to exercise its option to extend the
term of this Agreement for ~n additional ten (10) years, under Section 3.2, shall be
subject to approval by City, and such circumstances shall constitute the sole
permissible*ground f6r Cify to deny a requested extension of this Agreement under
this Section 10.2.
15
10.3 In the event of termination of this Agreement for default by Scavenger
Company as above specified, City shall have the fight forthwith to grant a franchise
to another scavenger service or t6take possession of trucks and other equipment of
Scavenger Compafiy used to Perform Work under this Agreement. City shall have the
right to-retain pfossession of the trucks and equipment, until, other suitable trucks and.
equipment can be purchased or otherwise acquired by C~ty for the purpose and C~ty
shall pay Scavenger Company the reasonable rental value of such trucks and
equipmknt, and l~ee:ep then iff good maintenance and repair, during the time the same
are used by City. City shall also have access to Scavenger Company's records for the
purpose of billihg serffice accounts during the period City is providing the services
described in this-Agreement, and shall retain all fees collected for such services.
10.4 In the event of any dispute arising between the parties under this
Agreement, the parties shall first submit such dispute to non-binding mediation
before a recogni2ed mediator having experience with contracts like the Agreement
and that is mutually acceptable to the parties, provided that neither partS, shall '
unreasonably withhold itiacceptance. If the parties are unable, after a period of
thirty (30) days, to agree on a mediator, either party shall be entitled to petition a
court of competent jffrisdiction to appoint such a mediator for the parties. Each
party shall bear its Own costs, including attorney's fees, incurred in connection with
the mediation. If the mediation does riot result in a resolution of the dispute that is
acceptable to both parties, either party may institute litigation. The prevailing party
in such litigation sh-all be entitled to recover from the other party its reasonabIe-
attorney's fees, costs and necessary disbursements, including expert witness fees,
incurred in such litigation.
10.5 If Scavenger Company_ shall at any time during the term of this
Agreement or any extension thereof, become insolvent, or ifproceeding_s in
bankruptcy shall'be instituted by or against Scavenger Company, or if Scavenger
Company shall be adjudged bankrupt or insolvent 15y a_ny Court, or if a receiver or
trustee in bankruptcy or a receiver of any property by Scavenger Company shall be
appointed in any suit or proceeding brought by or against the Scavenger Company, or
if Scavenger Company sliall make an assignment for the benefit of creditors, then and
in each arid every-such case, and provided that such proceedings, adjudication, '
appointment or a' ssignment, as the case may be, continue in effect for ninety (90)
days without being va- cared, removed or withdrawn, this Agreement shall immediately
cease and come to-an end, and the rights and privileges granted shall immediately be
canceled and annulled without notic~ or action required on behalf of City.
10.6 Notwithstanding any other provision herein, no default, delay or failure
to perform on the part of either party shall be considered a breach hereunder if such
default, delay or fai- lure to perform i§due to causes beyond such party's control,
including, but not limited t-o, riots, civil disturbances, actions or inactions of
governmental authorities, epidemic, war, embargoes, severe weather, fire, earthquake,
acts of God, defaults by the-other party, or defaults by carriers. In the event of any
such default, delay or failure to perform, any dates or times by which the affected
party otherwise is'scheduled to perform shall be extended for a period of time equal
in duration to the additional time required because of the excused default, delay or
failure to perform.
16
1 1. Assignment.
1 1.1 Scavenger Company shall not assigr~_ this Agreement, or any interest
therein, without the written aonsent of the City Council. City may review the
competency and financial integrity of the proposed assignee. A consent to one
assignmen{ shall not be deem(d to be a consent to any subsequent assignment. Any
assignment without such consent and approval shall be void and shall at the option
of City, terminate this Agreement. '
City shall be notified of any stock transaction in which an existing stockholder
transfers, §ells or otherwise relinquishes majority interest in his or her stock in
Scavenger Company.
Any stock transaction involving transfer, sale or exchange of stock which
results in a change in majority control of Scavenger Company shall be subject to City
review and approval.
12. Waiver.
12.1 The waiver by either party of an..y breach or violation of any term or
condition of this Agreement or of any provision of law by the other party, shall not
be deemed to be a waiver of the term, condition or provision of law, or of any
subsequent breach or violation of the same or any_ other term, condition or provision
of law. The acceptance by City of any_ franchise fee or other fee or other monies
which may become due hereunder to City shall not be deemed to be a waiver of any
preceding breach or violation by Scavenger Company.
13. Administration.
13.1 The administration and enforcement of this Agreement shall be the
responsibility of the City Manager or a designated representative of that office. This
section is not intended to indicate or suggest the City Manager has the authority to
grant, amend, or revoke the franchise.
13.5 Termination of Blue Line Transfer Station
Within one year of commencement of operation of a new facility designed to
handle waste transfer and AB 939 diversion requirements, including but not-limited
to a materials recovery facility or compliance with applicable diversion requirements
of AB 939 through actions o~her than construction oi:a new facility, whichever occurs
first, Blue Line Transfer Incorporated shall terminate operation of the transfer station
it operates on Oyster Point B6ulevard in South San Francisco.
14. Independent Contractor.
14.1 Scavenger Company, its emp_ ,}:.1o ees and agents, are independent
contractors and not employees or agents oF t2~ty.
¸17
15. Notices.
15.1 All notices required hereunder shall be in writing and shall be delivered
in person or transmitted bff the United States Postal Service, certified mail, postage
prepaid, and addressed as i~ollows:
CITY: City Manager
City Hall
P.0. Box 711
South San Francisco, CA 94083
SCAVENGER COMPANY: President
South San Francisco Scavenger Co.
P.O. Box 348
South San Francisco, CA 94080
or to such other person or address as may be specified from time to time in writin, qg~by
either party. Each such notice shall be deemed effective upon receipt or, if mailed-as
aforesaid, three (3) days after so mailed.
16. Amendments.
16.1 This Agreement may be amended from time to time only by
written agreement b~tween the parties signed by an authorized representative of each
party.
17. Successors and Assigns.
17.1 This Agreement shall be binding upon, and shall inure to the benefit of,
each of the permitted successors and assigns of the parties.
18. Integration: Severability.
18.1 This Agreement, including the Exhibits hereto, constitutes the entire
agreement of the parties with respect to the subject matter hereof and supersedes all
prior or contempo-raneous agreements between the parties, whether written or oral,
relating to such-subject matfer. If a court finds any provision of this Agreement
invalid-or unenforceable as applied to any circumstance, the remainder-of this
Agreement. and. the application of. such provision to other persons or. circumstances
shall remain in effect. The parties .furtlier agree to replace such void or unenforceable
provision with a valid and enforceable provision which will achieve, to the extent
possible, the economic, business and other purposes of the void or unenforceable
provision.
18
IN WITNESS WHEREOF, the parties have executed this Agreement.
SOUTH SAN FRANCISCO SCAVENGER COMPANY, INC. /
BLUE LINE TRANSFER, INC.
By:
By:
CITY OF SOUTH SAN FRANCISCO
ATTEST:
By:
Mayor
City Clerk
APPROVED AS TO FORM:
City Attorney
19
SCHEDULE 1
SINGLE-UNIT RESIDENTIAL RECYCLING CONTAINERS
Scavenger Company shall provide to each residential unit, a set of three (3)
re_cycling containers, specially made of rigid plastic construction for stacking into each
other, to assist residents in participating in the recycling program.
One container is useo to store glass; one container is used to store newspapers;
and the third container is used to store metal food and beverage containers as w~ll as
PET plastic beverage containers.
Each container shall be respectively identified with contrasting lettering
appropriately denoting: "glass", "newspapers", and "cans".
The distributioh of the recycling containers shall be the responsibility of
Scavenger Company, and the ownership of the recycling containers shall remain in
Scavenger Com-anp y. Similar alternative containers may be provided upon mutual
agreement between City and Scavenger Company.
2O
EXHIBIT A
DIVERSION PROGRAM
YEAR 2000 DIVERSION PROGRAM
In 1989, the California State Legislature passed Assembly Bill 939 which
mandates that all cities and counties in the state divert 25% of their waste by_ 1995,
and 50% by the year 2000. In 1990, when an initial survey was conducted, South
San Francisco hid a diversion rate of 11%. Through a variety of new programs,
however, the City of South San Francisco has surpassed the i995 goal-, w~th a
diversion rate of'25.31%. Although this is an important achievement, the City must
continue to be aggressive in its digersion efforts in order to reach the goal of 5'0%.
New programs mi1 need to be implemented to reach 50%, and existing programs will
need to fie expanded aggressively. These -new programs will take additional-resources,
yet they are important ~n order to reach the state mandated goals.
Below is an overview of existing programs and possible new programs that can
bring South San Francisco above the 50% diversion rate goal. Much 6fthe
additional diversion will need to come from the commercial industrial sector, as a
majority of the waste in the City comes from this sector. To achieve 50% will not
only require strengthening existing programs and implementation of new programs,
but also the consthaction ~)f new sorting lines in order to extract additional materials
from the waste stream. Expanding education, in both the residential and
commercial/industrial sectors, stressing the importance of participating in the
programs is also critical, and will represent a cost effective way to increase diversion.
The tonnage that is currently hauled and disposed of by non-franchised
haulers is also extremely important. Because of the amount being disposed by these
haulers (estimated to be 22% of existinggenerated tonnage), it would-be unlikely
that the 50% diversion goal could be achieved without recovery of this tonnage. The
diversion estimates listed in the program categories below are calculated based on the
amount of material currently being hauled by South San Francisco Scavenger
Company (SSFSC)and self:hauleis, without the non-franchised hauler tonnage. The
additional diversion that might be achieved as a result of recovery of the materials
currently being hauled by non-franchised haulers is considered separately in Section
7.
Since the 1990 Source Reduction and Recycling Element (SRRE) was based on
a subset of total tonnage which did not include non-franchised haulers, we made a
conservative estimate that the initial waste characterization applies to non-franchised
haulers as well, even though non-franchised hauler tonnage is disproportionately in
the commercial sector as compared to tonnage in the SRRE.
1. Yard Waste
Currently the South San Francisco Scavenger Company picks up yard waste
once per month from residential customers. There are two trucks picking up material
each morning before continuing with other assignments. Because of the lack of
regular, xpe osure to the program, residents do not utilize the service to its fullest
potenual. In order to achieve maximum utilization from the yard waste program, a
21
greater degree of exposure and publicity is necessary.
Currently SSFSC is diverting about 65 tons per month from the yard waste
program, which translates to 6.8 pounds per household per month. An informal
survey of Bay Area communities reveals mat there is an average of about 40 pounds
per householdper month collected from their yard waste, programs. Because of the
smaller lot sizes in SSF than in some of the surrounding communities, we are using a
20 pound per household per month figure as a reasonable estimate for yard waste
collection. Using this figure would resuV It in an additional yearly diversion of
approximately 2%.
Additional yard waste can also be diverted upon the completion of new sorting
lines and transfer stations in South San Francisco. As in the ca§e with construction
and demolition debris recove, ry, as well as.yard waste,, desi. gn gin a line specifically for
recovery.of targeted materials can greatl.y,. ~ncrease. d~vers~on, rates. The amount of
yard waste generated by the commercial/~ndustnal sector ~n South San Francisco is
about four times that produced by the residential sector, and although little is
currently diverted, most of this will be captured over ans~L~im roved sorting line. If
50% of the commercial/industrial yard waste (based on tonnage adjusted to
1995) is diverted, it would add approximately 2.0% to the diversion total. Because
the SRRE was done during a drought, the tonnage in the SILRE is most likely
underestimated, thus making the 50% diversion of the original SRRE a very
achievable goal.
Prior to implementation of a yard waste program, as well as any other new
services, the SSF Scavenger Company will undertake a public awareness campaign to
explain the program, as x3ell as the benefits of participating in the program. - v
2. Construction & Demolition Debris CC&D) and Wood Waste
Presently, there is no formal program in South San Francisco to recycle C & D
debris and wood waste. The materiel that is currently diverted is generallSr from
construction companies that rent debris boxes for their waste, and the tonnage
amounts from these construction customers is relatively small. The amount ~)f these
materials in the overall waste stream is significant, however, comprising 12.7% of the
generated. .waste tonna e in South San Francisco. . As. a result, recovery-of these
materials ~s essential i~g~he goal of 50% ~s to be reahzed.
In order to make diversion of these materials successful, resources must be
employed to educate ~generators about the materials, as well as to increase recovery at
the transfer station, source separation at construction sites is an important part of
any building material diversion program. Companies that do large scale projects, as
ell as those that do smaller projects such as remodehng, need to be made aware of
the importance of diverting these materials from the landfill, as well as the laws that
recluire the city to do so.. Financial. incentives, can. be very. helpful, and. an explanation
of the costs and benefits assocmted wxth separatxng materials at the lob site could
help£ gain the participation of contractors. A tiered hauling (or disp6sal, for self haul)
ee may be considered for certain materials in order to increase tonnage diverted. A
separate wood waste collection program for businesses could also be Considered at
least on an "on call" basis.
22
i ·
It is important to work closely with the contractors in order to maximize
diversion. Site visits for large proiects in order to discuss disposal options may be an
important step. As each proiect is different, unth dlf erent quant~tles of m tenals
being disposed, so are the possible disposal options. A quick waste audit and training
of th~ crdw will go a long way in maximizing diversion. Also helpful are printed
materials,, such as a booklet explaining the o tions, for recyclin, g building materials,
which has been shown to be an effective tooFfor increasing recycling. It can also be
effective in creating a relationship with the local building industry association in
order to distribute]nformation ahd to become known as a resource for the industry.
The status of the market can also be an important criteria, as low valUe
materials may be handled differently_ than high value ones. C & D recycling is
growing, however, and markets for the materials have been expanding over the last
several~years, making the future promising. There has also been an increase in re-use
of building material~-, as several stores exist in the Bay Area that sell previously-used
building nSaterials.
In order to implement the above programs and maximize diversion of the
materials, a new sorting line designed for these materials must be considered.
Recovery at Material Recovery Facilities (MRF's) has consistently proven to be an
important step in the diversion of C&D and wood debris. Although source
separation of hll materials at iob sites is not realistic, a combination of customer
education and increased recovery at the MRF can significantly_ increase diversion. If
40% of the material is recovered with dedicated lines as specified in the SRRE,
consistent with documented experience at other MRF facilities, this will increase
diversion by approximately 3.8% annually.
3. Food Waste
Currently there is no formal program in South San Francisco to divert food
waste from the'commercial sector, although commercial food waste constitutes 6% of
the waste stream (according to the SRRE~. In various areas of the country there has
been increased collection and composting of food waste for the last several years.
These programs tend to concentra[e on the large quantity generators, such as larger
restaur-ants- and grocery stores. Large grocery stores tend to produce the most
compostable waste and there are different issues that need to be addressed when
composting restaurant waste, as compared to produce waste. As a result,
implementation of food waste programs may be facilitated by first concentrating on
produce Waste, and then expandin-g to other organics. The issue of composting this
material will have to be discussed with the compost facility operator, but collection
and composting of these materials has been shown to be both economically and
technologically feasible. In order to get cooperation of the producers, a lower rate for
collection of these materials may be necessary. It is anticipated that a food waste
program would divert an additional (approximately) 1.5%.
4. Residential Recycling
The current residential curbside recycling program in South San Francisco is
comprehensive, collecting all paper, cardboard, glass, tin, aluminum, PET and HDPE
plastics. Although the rn~aterial types collected are varied, there still is potential for
23
increased., diversion through higher p..articipation in the existingp rogram. As.p aper is
a majority of the material recycled, it is also an area where the most potentml
diversion exists.
Participation is not the only indicator of the success of a residential program,
however. It is also important to ensure that those participating in the progr-am~s are
efficient in their recycling, and are keeping their recyclable material out of-the
garbage cans. Generally ~ cost-effective way to increase residential tonnage is
increased information and education. Mailings to customers, as well as presentation
to citizen and neighborhood groups can help to increase diversion.
If recovery of residential paper and cardboard eventually reached 70% (a
realistic goal) which is consistent with some estimates for potential diversion, an
additional 770 tons 4.1% total (2.1% additional) could be recovered.
5. Commercial Recycling
Commercial recycling is an area that has substantial potential for increased
diversion. There are several programs that could be implemented to increase
diversion.
Increase Education and Information - Similar to residential recycling, a cost
effective way to increase participation and diversion rates in commercial recycling is
by increasing communication with customers, both by mailing educational fnate~als
and conducting site visits.
Speaking to Business Groups - This is often an efficient way to meet with
many businessis leaders and owners at one time. Workshops can be held for
businesses to help with waste management.
Target Largest Producers - There are often a few large commercial customers
that prodtfce a silgm.v ificantportion of the waste stream. Inspection. of these
generators, as well as site visits (in order to conduct waste audits) can help to increase
recycling.
Small Business "Strip" Recycling - It is often cost effective to identify areas
with large concentrations of smalI businesses that can cooperatively participate in
recycling programs. This may also require site visits.
Award a Yearly "Recycler of the Year" - This can help to increase awareness
and participation.
Recyclable paper and cardboard from the commercial/industrial sector is 15.5%
of the generated ~as-te, in which recyclable glass is 1.2% and metals are 5.0%. If 50%
of the ?ecoverable paper, metals, ancl glass are recycled, 11.14 tons will be diverted
(an additional 7.1%). If commercial recycling programs fail to demonstrate such a
performance it is very unlikely that diversion goals could be reached, and as a result,
this should be considered a critical area.
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6. New Sorting Lines
New sorting lines with better designs and increased capacity can achieve
additional diversion beyond yard waste and. C & D, many additional materials can be
recovered from the waste stream with sorting lines that have increased capacity and
sorting ability. The ability of having flexibility in sorting is a major reason that many
of theprograms listed above can succeed. There are other materials, not included
above, that may be able to be recovered from the waste stream as a result of increased
sorting capability. A reasonable estimate of increased diversion beyond the programs
listed above is 3%.
7. Increased Recycling Due to Tonnage Recovered from Non-Franchised Haulers
As mentioned above, haulers servicing customers in South San Francisco
contra, ry to the franchise are disposing, of a si:gnificantpcortion of the waste in the
City, and it is felt that there are materials being landfilled that could be recycled if
they were collected through the franchised hauler. Recovery of this material is an
important part of increasing diversion in the City. If SSFSC was hauling this
materialper the franchise a. greement, .... there would be increased tonnages in all of the
above programs, and thus increased dlvers~on. Some of this material would likely
end u~p in source separated recycling programs, while other material would go to the
transter station, with an additional opportunity for recovery. We believe tlSat an
additional 5% of the waste stream could be diverted from the landfill through the
recovery of this tonnage.
8. Increased Educational and Outreach Efforts
Although increased education and outreach is not a separate diversion category
for theprpu os~es of this study, it is an essential part of all diversion efforts. As a - --
result, Below is a summation of the education and outreach efforts suggested for the
above programs, as well as additional educational outreach.
Yard Waste - Mailings to customers explaining the benefits of the program, as
well as newspaper articles ahd other media. -
Food Waste - Public education targeted at large restaurants, supermarkets, and
produce stores may help to maximize participation in the program.
Construction and Demolition Debris - On site visits to construction projects in
order to educate the crew on material separation can be beneficial. Printed materials
reviewing disposal options have been shown to be. successful. Meeting with industry
groups to educate them on the benefits of recycling can also be useful.
Residential Recycling - Mailings to customers, as well as newspaper articles and
media advertising can be effective methods. An audit of partici:~paation in the
programs can allow educational efforts to be more directed, and-henceforth more
cost-effective.
Commercial Recycling - Speaking with staff of large commercial customers in
order to educate them about programs and the benefits of recycling can help to
25
increaseparticipation and diversion. Building relationships with business groups is a
cost effective method to get educational information to customers and can also be
useful.
School Programs - Sponsoring special events and/or curriculum, for primary
and secondary sch~ools can be an effective educational tool, as well as field trips t6 the
transfer station/MRF facility.
Conclusion
In summary, we've discussed an overview of existing programs and possible
new programs that can bring South San Francisco above the 50% diversion rate goal.
As presehted, additional diversion must come from the commercial/industrial sector,
as a majority of the waste in the City comes from this sector. We have the ability to
reach 50%, but it will require strengthening existing programs and the
implementation of new programs. It will aIso necessitate the construction of new
sorting lines in order to extract additional materials from the waste stream. A crucial
factor is the expansion of education in both the residential and commercial/industrial
sectors regarding the importance of participating in rec)f_cling programs. With the
assistance-of th~City, tfiere is the ability to comply with AB 939 and meet the
mandated diversion goals.
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EXHIBIT B
MAXIMUM SERVICE RATES
Effective November 1, 1997
Residential Can Service (Per Month) - includes curbside recycling
A. Service Level by Container Volume
20 Gallons (Senior Citizen)
30 Gallons
32 Gallons
64 Gallons
96 Gallons
128 Gallons or more
11.28
13.22
14.10
31 .O2
48.65
67.68
Commercial and Institutional Can Service (Per Month) - no
charge for source separated recyclable materials
30 Gallons $ 14.36
32 Gallons 15.31
40 Gallons 19.14
45 Gallons 21.53
55 Gallon Drum 26.32
Commercial and Institutional Compactor Service
Per Cubic Yard $ 28.81
Debris Box Service, Residential and Commercial and
Institutional
Temporary/One Time Use
5 Yard Mini-Box $ 106.87
7 Yard 233.52
14 Yard 233.52
20 yard 317.95
30 Yard ' 458.67
Rental Charge (per day, over 3 days for 5 Yard and
over 7 days for others) $ 8.79
Permanent Commercial Use
7 Yard $ 197.01
14 Yard 197.01
20 Yard 281.44
30 Yard 422.16
Overwei ht Char_~r. gee
g .
Content Wmght in excess
of 3 tons, per ton
27
$ 55.02
Commercial and Institutional Bin Service - no charge for
source separated recyclable materials
A. Regular Pick-Up (Per Month)
1 - Yard Container $ 85.46
2 - Yard (Front End Loader Bin) 128.14
3 - Yard (Front End Loader Bin) 192.22
4 - Yard (Front End Loader Bin) 256.29
5 - Yard (Front End Loader Bin) 320.37
6 - Yard (Front End Loader Bin) 384.43
Bo
On Call Pick-Up, Per Yard
Per Pick-Up, Per yard
Plus Container Rental Per Month
$ 14.79
Rental Charges: 1 Yardi Container
2 Yard Container
3 Yard Container
4 Yard Container
5 Yard Container
6 Yard Container
$ 22.38
24.29
26.08
27.99
31.70
33.62
2g
EXHIBIT C
SERVICE CATEGORIES TO BE BENCHMARKED
Residential Can Service: 20 Gallons (Senior Citizen)
32 Gallons
Commercial and Institutional Can Service: 32 Gallons
Commercial and Institutional Compactor Service: Per Cubic Yard
Debris Box Service: 14 Yard
Commercial and Institutional Bin Service-Regular Pick-Up: 2 - Yard (Front End Loader Bin)
29
Alameda
Burlingame
CamplSell
Castro Valley
Cupertino
DaIy City
E1 Cerrito
E1 Sobrante
Fremont
Gilroy
Hayward
Hercules
Los Altos
Los Gatos
Martinez
Menlo Park
Millbrae
Monte Sereno
Mor an Hill
Palog~to
Piedmont
Pinole
Pittsburg
Richmond
San Bruno
San Leandro
San Mateo
San Pablo
Saratoga
Sunnyvale
Union City
Woodside
EXHIBIT D
BENCHMARICING JURISDICTIONS
30
EXHIBIT E
NON-EXCLUSIVE FACTORS AFFECTING CHOICE OF JURISDICTIONS
Container size
Franchise fees
Disposal fees
Haul distance to the disposal site
Billing/Collection
Franchise exclusivity
Level of service provided (e.g., materials collected)
Frequency of collection
Location of containers
Provision of containers
Recycling program - frequency and commodities
Recycling pro gr ams - se - arat~ratesp or char g es
Topography and geography
Nature of streets and-ease of access
Potential for commercial subsidy
Demographic information
Revenue information
J :\WPDX~IODEM~RAGSF.JNK
31