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HomeMy WebLinkAboutMINUTES - 08081995 - SD11 SD. 11 TO: BOARD OF SUPERVISORS FROM: Val Alexeeff, Director, Growth Management and Economic Development Victor J. Westman, County Counselkwo DATE: August 8, 1995 SUBJECT: Joining Central Contra Costa Solid Waste Authority SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS : Consider actions to be taken on: 1 . First Amended Joint Exercise of Powers Agreement for the Central Contra Costa Solid Waste Authority and ratification of County membership therein. 2 . Resolution Authorizing Central Contra Costa Solid Waste Authority to enter Solid Waste Collection Agreements and delegating County franchise authority. 3 . Transitional Agreements Between County and Central Contra Costa Sanitary District for the Collection of Solid Waste: A. Within Unincorporated Areas of North Concord, Pacheco and Clyde. B. Within Unincorporated Areas to be within the Jurisdiction of the Authority (unincorporated South County areas of Danville, Alamo , etc. ) . Consider County' s acceptance of the terms of this Agreement (unincorporated South County area) being made contingent upon the Central Contra Costa Sanitary District agreeing, in writing, that an amount equal to the franchise fees established by the County for the said area for the period commencing April 1, 1996 be paid by the District to the County. 4 . Authorizing staff (GMEDA Director and County Counsel) to review final documents for conformance with the Board' s action as (See continuation) CONTINUED ON ATTACHMENT: xx YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON August 8 , 1995 APPROVED AS RECOMMENDED x OTHER x SEE ADDENDUM ATTACHED FOR BOARD ACTION VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A x UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Orig: Community Development Department ATTESTED August 8 , 1995 cc: County Counsel PHIL BATCHELOR, CLERK OF GMEDA THE BOARD OF SUPERVISORS 5a: \centrljp. 895 AND COUNT ADMIN77TOR BY , DEPUTY RECOMMENDATIONS - CONTINUED: well as take any ministerial action necessary to finalize the aforementioned membership in the Central Contra Costa Solid Waste Authority (e.g. , filling in dates in the final document) , and authorizing GMEDA Director to file any further documents necessary for membership in said Authority with the Clerk of the Board. FISCAL IMPACT: Short term: Under the Transitional Agreement for the North Concord/Pacheco/Clyde area, the County would assume franchising responsibility without benefit of franchise fees . Long term: The Franchise Agreement to be issued to BFI pursuant to the RFP process provides for the County' s collection of franchise fees for the unincorporated areas. BACKGROUND/REASONS FOR RECOMMENDATIONS: For the past several months, the Board' s Solid Waste Committee has been participants at meetings with the Central Contra Costa Solid Waste Authority ("Authority") concerning the County' s joining the JPA for the provision of solid waste services in the unincorporated territory in the Central/South County area. Past substantial concerns of County staff have been addressed in the current documents (most of which documents have been before the Committee) . These documents are briefly discussed in the following paragraphs . 1. First Amended Joint Exercise of Powers Agreement for the Authority. As the Board members are aware, the Authority (currently the City of Walnut Creek and the Central Contra Costa Sanitary District ("Sanitary District") ) issued a Request For Proposals (RFP) for the provision of solid waste collection service within the territories represented by the member agencies, including the unincorporated territory within the Sanitary District' s jurisdiction. The Board' s Solid Waste Ad Hoc Committee has been the principal participants in meetings with the Authority for the County' s joining the JPA (for the unincorporated territory within the jurisdiction of the Sanitary District) and subsequent or concurrent delegation to the Authority, of the County' s franchising authority in the unincorporated territory within the Sanitary District ' s jurisdiction. As the Board members are also aware, Browning Ferris Industries submitted the lowest bid for solid waste collection services, and Valley Waste Management submitted the lowest bid for recycling services. 2. Resolution Authorizing Authority to enter Solid Waste Collection Agreement and Delegations. The Resolution Authorizing the Authority to enter Solid Waste Collection Agreements delegates to the Authority for a term of eight years (with a possibility of this term being extended for two years) , the County' s franchising authority for specified unincorporated areas within the jurisdiction of the Sanitary District. The resolution also delegates to the Authority, implementation of the County' s Source Reduction and Recycling Element ("SRRE") and Household Hazardous Waste Element ("HHWE") for specified unincorporated areas within the jurisdiction of the Sanitary District. Delegation is subject to the limitation that any franchise .t agreement entered into by the Authority shall be substantially similar to franchise agreements prepared by the Authority dated August 3 , 1995 , appropriate amendments to the Joint Exercise of Authority Agreement being adopted, and upon the County reserving the right to withdraw its delegation at any time, provided the County must continue to administer the Authority negotiated and entered contract. The above-referenced franchise agreement provides for the county' s levy of franchise fees in the unincorporated area. 3. Transitional Agreements Between County and Central Contra Costa Sanitary District: A. North Concord, Pacheco, Clyde This agreement provides for the Sanitary District' s assigning its franchise with Pleasant Hill Bayshore Disposal to the County for the remainder of the franchise term (March 31, 1996 expiration date) . The Sanitary District would continue to administer AB 939 recycling activities for the area, including activities being undertaking pursuant to the Sanitary District' s franchise agreement with Pleasant Hill Bayshore Disposal, Inc. , until the franchise' s termination on March 31, 1996. B. Unincorporated South County Area (Danville, Alamo, etc. ) This agreement provides for the Sanitary District delegating to the County (for the County' s delegation to the JPA) , the District ' s authority to franchise solid waste collection service in the unincorporated south county area within the jurisdictional territory of the Sanitary District, upon the expiration of the current Sanitary District - Valley Waste Management franchise (March 31, 1996 expiration date) . The Sanitary District will retain all franchise fees and will administer the franchise until its termination on March 31, 1996. This transitional agreement also provides for a one-year extension of the Sanitary District-Valley Waste Management franchise. The County' s approval of this transitional agreement should be made contingent on the County receiving franchise fees from this area commencing April 1, 1996. 4. Final Transitional Agreements . On Tuesday, August 1, 1995, we were advised by an attorney for the Sanitary District that on Friday, July 28, the Sanitary District made further changes to the transitional agreements . As of the date of the writing of this report, County staff has not been advised that the only "conceptual" change requested concerns allocation of Acme litigation costs. However, final drafts have not been presented to County staff for presentation to the Board. Prior to this latest communication, County staff reviewed drafts of the documents, and had presented staff' s comments (based upon Committee expressed concerns) to the District' s legal counsel . If final documents are received from the District before Tuesday, August 8, 1995, staff will submit them to the Clerk of the Board for inclusion in the Board' s packet. 5a: \cenjpa8 . 95 ADDENDUM The Board of Supervisors on this date considered the recommendations of Val Alexeeff, Director, Growth Management and Economic Development relative to joining the Central Contra Costa Solid Waste Authority. Mr. Alexeeff presented the staff report on the issue . The Board discussed various issues and concerns . The following persons presented testimony: Sue Rainey, 160 Bixley Place, Walnut Creek; Roger Dolan, Centra Contra Costa Sanitary District . The Board deferred to the afternoon calendar further consideration of the matter, requesting staff to address concerns that had been expressed this morning. In the afternoon, following consideration of revised language worded to capture the spirit of the morning discussion, and further Board discussion, Supervisor DeSaulnier moved the staff recommendations with the changes that were before the Board on page 8 of the transitional agreements . With the understanding that the change would be in both transitional agreements, Supervisor Smith seconded the motion. IT IS BY THE BOARD ORDERED that the First Amended Joint Exercise of Powers Agreement for the Central Contra Costa Solid Waste Authority and ratification of the County membership therein is APPROVED; Resolution 95/638 authorizing Central Contra Costa Solid Waste Authority to enter Solid Waste Collection Agreements and delegating County franchise authority is ADOPTED; Transition Agreements between the County and Central Contra Costa Sanitary District are APPROVED as amended; GMEDA Director and County Counsel are AUTHORIZED to review final documents for conformance with the Board' s action as well as take any ministerial action necessary to finalize the aforementioned membership in the Central Contra Costa Solid Waste Authority; AUTHORIZED the GMEDA Director to file any further documents necessary for membership in said Authority with the Clerk of the Board. BOARD OF SUPERVISORS, CONTRA COSTA COUNTY, CALIFORNIA Re: Authorizing Central Contra Costa RESOLUTION NO. 95/ 638 Solid Waste Authority to enter Solid Waste Collection Agreements The Board of Supervisors of Contra Costa County RESOLVES THAT: WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (hereinafter "AB 939"), as set forth in Public Resources Code §§ 40000 et seq., as it may be amended from time to time, has declared that it is within the public interest to authorize and require local agencies, including cities, to make adequate provisions for solid waste handling within their jurisdiction; and WHEREAS, County of Contra Costa, pursuant to Public Resources Code § 40000, Government Code § 25827, the California Constitution and preexisting laws, could have historically provided for the collection, transfer and disposal of solid waste generated within its unincorporated limits through issuance of exclusive collection franchises; and WHEREAS, Central Contra Costa Sanitary District (hereinafter "CCCSD"), pursuant to its enabling act, case law and as otherwise provided for in Public Resources Code §§40000 et seq., has historically provided for the collection, transfer and disposal of solid waste generated within certain portions of its jurisdictional boundaries in some unincorporated County areas through issuance of exclusive collection franchises; and WHEREAS, Central Contra Costa Solid Waste Authority (hereinafter "CCCSWA") is a joint powers agency formed pursuant to Government Code § 6500, et seq. and currently is and will be comprised of member agencies of the City of Walnut Creek, Contra Costa County and CCCSD; and WHEREAS, a joint powers agency, as a separate public entity, may exercise those powers commonly held by its respective members, to the extent the member agencies provide for the exercise of such common powers to the joint powers agency, and accordingly, CCCSWA, through the Joint Powers Agreement, as it is to be amended, will have the authority to contract for the collection, transfer and disposal of solid waste generated within specified jurisdictional boundaries of its member agencies; and WHEREAS, the Contra Costa County has concluded that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries will serve to consolidate coordination and planning of such collection, transfer and disposal activities, while providing an opportunity to maximize the ratepayers' market power while providing for economies of scale, thus benefiting the public served by CCCSWA, including the citizens of involved unincorporated County areas, and WHEREAS, AB 939 has authorized and directed counties' among other public agencies, to develop and implement plans with respect to the Source Reduction and Recycling Elements and Household Hazardous Waste Elements as specified therein; and RESOLUTION NO. 95/ 6 3 8 1 WHEREAS, the Contra Costa County has concluded that implementation of these Source Reduction and Recycling Elements and Household Hazardous Waste Elements can be accomplished most efficiently through use of CCCSWA to administer and coordinate implementation on a regional basis for certain specified unincorporated areas; and WHEREAS, franchise agreements have been prepared by the CCCSWA for use in entering into franchises between CCCSWA and Browning-Ferris Industries for Refuse Collection, Transfer and Disposal, and between CCCSWA and Valley Waste Management for Recycling and Green Waste Collection, Processing and Marketing Services; and WHEREAS, Contra Costa County is willing to delegate its solid waste collection franchise authority (for refuse, recycling and green waste) to CCCSWA for specified unincorporated areas, provided that the terms of the franchises therefor to be executed by CCCSWA provide for the basic provisions and are in a form substantially similar to the above agreements prepared by CCCSWA dated August 3 , 1995 NOW, THEREFORE, the Board of Supervisors of Contra Costa County resolves as follows: 1. With this County's membership in CCCSWA, this County delegates its authority to CCCSWA to enter into contracts concerning solid waste collection, transfer and disposal for the territory within the jurisdictional boundaries of the County as identified in the aforesaid amended Joint Powers Agreement for provision of refuse, recycling and green waste service; and 2. The County delegates its authority to CCCSWA to implement the SRREs and HHWEs of the County through the CCCSWA franchising authority for the specified unincorporated areas identified in the amended Joint Powers Agreement for these additional delegations; 3. Said delegation of authority from the County to CCCSWA, as set forth in (1) and (2) above is for the eight (8) year term of the proposed franchise agreements and is subject to the limitation that any franchise agreements entered into by CCCSWA shall be in a form substantially similar to the franchise agreements dated August 3 , 19 95 referenced hereinabove, and further conditioned upon appropriate amendments to the Joint Powers Agreement being enacted by CCCSWA prior to execution of the franchise agreements; and 4. Said delegation is further conditioned upon Contra Costa County reserving the right to withdraw at any time, for any reason, the delegations of authority. However, in doing so, agrees to administer the franchise agreement as negotiated for the term of the contract. 5. This resolution shall take effect August 8 , 1995 RESOLUTION NO. 951 6 3 8 2 w ` _ PASSED AND ADOPTED on August 8 , 1995 , 1995, by the Board of Supervisors by the following vote: AYES: Supervisors Rogers , Smith, DeSaulnier, Torlakson and Bishop NOES: None ABSENT: None ABSTAIN: None I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: August 8 , 1996 PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By: D puty RESOLUTION NO. 95/ 6 3 8 3 DRAFT - Jady 24, 1995 FIRST AMENDED JOINT EXERCISE QF POWERS AGREEMENT CENTRAL CONTRA COSTA SOLID WASTE AUTHORITY ARTICLE 1: PURPOSE A. Purpose of Agreement: It is the purpose of this Agreement to establish, pursuant to the Joint Exercise of Powers Act, a public entity separate from each of the agencies. This public entity is to be known as the Central Contra Costa Solid Waste Authority, hereinafter referred to as the "Authority". B. Purpose of Authority_: The purpose of the Authority shall be to exercise certain powers set forth below, in a manner which will (1) assure the citizens of the Member Agencies that certain solid waste transfer station(s), regional resource recovery facility(ies), recycling facility(ies), household hazardous waste facility(ies), and/or landfill(s) and related programs will be operated in the most cost effective manner possible consistent with the proper concern for the environment; and (2) allow for the public ownership and/or management of said facilities; and (3) allow for certain or all of the Member Agencies to participate in individual or joint efforts concerning issuing Requests for Proposals and entering into contracts for franchising of solid waste collection, handling and disposal, including green waste and recyclables; and (4) allow for such other joint efforts concerning the handling and disposal of the solid waste stream as may be beneficial to constituents of the Member Agencies. C. Members of Authority: This Agreement was entered into as of September 11, 1990 by and between the cities of Walnut Creek and San Ramon and the Central Contra Costa Sanitary District (hereinafter "Initial Members"), as individual public entities which mutually promise and agree as hereinafter set forth. Membership in the Authority is open to any public entity that is authorized to franchise the collection or handling of solid waste in Central Contra Costa County and does so franchise or delegate the authority to franchise to the Authority. Membership in the Authority is granted upon a two-thirds (2/3) vote of all members of the Authority Board, as then constituted, approving the application for membership, and upon compliance with the terms and conditions of membership set forth by the Board and/or in force at that time. 1 F:\DMS\TCS.DIR\0115230.05 For purposes of this Agreement "solid waste handling" or "handling" shall be as defined pursuant to California Public Resources Code Section 40195, and is to include collection, recycling, transportation, storage, transfer, or processing of solid wastes. D. jurisdictional Boundaries of Authority• The jurisdictional boundaries of the Authority shall include the jurisdictional boundaries of the Authority's respective Member Agencies as set forth in, and as limited by,�the Service Area Map for the Authority, attached hereto as Exhibit 1. E. Avvortionment of Expenses: It is the intention of the Authority to collect revenues to cover the costs of Authority operations. To the extent that the Authority regulates the operation of transfer facilities, reclamation facilities, recycling facilities, household hazardous waste facilities, landfill facilities and/or other facilities, the Authority may recover a portion or all its costs of operation through facility fees and through such other fees as the Authority may lawfully impose. The Authority may, in addition or alternatively, recover its costs of operation through administration of franchise agreements granted by the Authority, including franchise fees and through the collection of other fees as may be provided for in the various franchise agreements. Such Authority costs of operation may, in addition, be recovered through franchise fees or other fees lawfully imposed by or on behalf of the Authority through its Member Agencies with regard to the Authority's solid waste management activities. To the extent that operating expenses exceed revenues during any period, including the initial start-up period of the Authority, the Member Agencies shall be responsible for providing the requisite funds to the Authority to ensure that such expenses are met in the proportion that the total tonnage of solid waste collected within the jurisdiction of each agency bears to the total tonnage of solid waste collected within the jurisdiction of all members of the Authority. Solid waste collected from areas of a.Member Agency located outside of the jurisdictional boundaries of the Authority are not included in these calculations. Each Member Agency's contribution to such expenses is dependent upon such Member Agency's governing body's yearly approval of such contribution, provided, however, that if such Member Agency's governing body does not approve such contribution, such Member Agency may be expelled. It is the intent of this Agreement that monies and Membership Fees advanced to the Authority by individual Member Agencies to cover Authority costs of operation, including costs of establishing the Authority, are to be reimbursed to said Member Agencies. Such reimbursement of funds shall be collected through the fee structures set forth above. Such reimbursement shall be authorized to the extent that it does not impair necessary working capital or the ability of the Authority to repay any bond or other debt obligations. Notwithstanding the above provisions, where two or more Member Agencies have dual or overlapping authority to franchise solid waste handling within any portion of the 2 f:\DMS\TCS.DIR\0115230.05 Authority's jurisdictional boundaries, the total solid waste collected within said dual or duplicative jurisdictional boundaries shall only be-counted toward or included within the total tonnage of the Member Agency actually delegating to the Authority the authority to franchise solid waste handling for the area or areas involved. ARTICLE 2: POWERS OF THE AUTHORITY A. General Powers: 1. The Authority shall have all powers common to its Member Agencies, and such general powers shall further include, but not necessarily be limited to the following: a) To advise the Member Agencies on issues related to solid waste handling and disposal; b) To advocate the interests of the Member Agencies related to solid waste management issues with local, state and federal officials; c) To plan for transfer station(s), resource recovery facility(ies), recycling facility(ies), household hazardous waste facility(ies), landfill(s), and other solid waste facility(ies) and programs, and/or any related closure and post-closure thereof; d) To develop transfer station(s), resource recovery facility(ies), recycling facility(ies), household hazardous waste facility(ies), landfill(s), any other solid waste facility(ies) and program(s) and/or any related closure and post-closure thereof; e) To acquire and/or operate and/or contract for the operation of transfer station(s), resource recovery facility(ies), recycling facility(ies), household hazardous waste facility(ies), landfill(s) and other solid- waste facility(ies) program(s) and/or any - related closure and post-closure thereof; f) To regulate rates of transfer station(s), resource recovery facility(ies), recycling facility(ies), household hazardous waste facility(ies) and landfill(s); g) To issue Requests for Proposals and enter into agreements to franchise for the handling and/or disposal of solid waste, green waste, and recyclables; h) To provide any or all of the solid waste handling and/or disposal services, green waste and recycling services as set forth herein to other public agencies not members of the Authority, including issuing Requests for Proposals and entering into agreements with and on behalf of these other public agencies concerning, but not limited to, the administration and/or regulation of rates, rate setting, 3 F:\DMS\TCS.DIR\0115230.05 franchising and provision of any other solid waste services deemed reasonable or necessary by the Authority Board; i) To advise on matters of solid waste handling and disposal rates and charges; j) To advise public entities as to market conditions affecting the marketability of recyclable commodities; k) To market and sell recyclable commodities; and 1) To conduct joint studies and/or institute joint programs as may be required by law or are appropriate regarding solid waste handling and disposal including, but not limited to, such efforts as may be required regarding reduction of the waste stream disposed at landfills. 2. Notwithstanding the provisions of this Agreement, each Member Agency retains its own existing authority to franchise solid waste handling and disposal services and landfills within its own jurisdictional boundaries. Any Member Agency may elect to delegate to the Authority such rights with respect to solid waste handling and disposal and upon such terms and conditions as the Authority may agree. Nothing in this Agreement is intended to or does provide authority for the Authority to regulate the Acme Landfill, Keller Canyon Landfill, or any transfer station located at the Acme Landfill, or any of their respective operations. 3. The Authority's exercise of the above general powers shall only affect those portions of the Member Agencies lying within the jurisdictional boundaries of the Authority as set forth in the Map, Exhibit 1 hereto. This provision is not intended to limit the scope of Article 2(A)(1)(h). B. Syecific Powers: In carrying out its general powers, the Authority is hereby authorized to perform all acts necessary or proper for the exercise of said powers which may include, but are not limited to, the following: 1. To make and enter into contracts and to issue Requests for Proposals; 2. To apply for and accept grants, advances and contributions; 3. To employ or contract for the services of agents, employees, consultants and such other persons or entities as it deems necessary; .4. To conduct studies; 4 F:\DMS\TCS.DIR\0115230.05 5. To review the Contra Costa Integrated Waste Management Plan and other such public planning documents as may be developed, and recommend revisions or amendments thereto; 6. To acquire, construct, manage, maintain, operate and control any buildings, works or improvements; 7. To acquire, hold or dispose of property; 8. To acquire by condemnation proceedings such real and/or personal property and/or rights of way as in the judgment of the Authority are necessary or proper to the exercise of its powers; 9. To incur debts, liabilities or obligations subject to limitations herein set forth; 10. To levy and collect fees and charges to the extent permitted by law; 11. To assess and collect, subject to Article 5, Section A and Article 1, Section E, of both Initial Members and future agency members, fees for membership in the Authority, so as to provide moneys for the financing of its activities, operations, and expansion which are not adequately funded by the revenues collected for services provided by the Authority; 12. To issue bonds, subject to the provisions andlimitations of the laws of the State of California; and 13. To adopt annually, by April 1 of each fiscal year, a budget setting forth all administrative, operational and capital expenses for the Authority, together with the apportionment of such expenses by levy against each Member Agency to the extent necessary, subject to Article 1, Section E. ARTICLE 3: ORGANIZATION OF AUTHORITY A. Board of Directors: The Authority shall be governed by a Board of Directors, hereinafter "Board", which shall exercise all powers on behalf of the Authority. The Board shall have the authority to carry out all duties and functions within the power of the Joint Exercise of Powers Agreement. The Board shall be composed of two (2) representatives from each Authority agency, who shall be elected members of such agency's governing body. Each member representative shall have the right to vote on each issue pending before the Board. The term of Board membership is unlimited except as a Member Agency may provide for its own representatives; however, as to such member representatives, such term shall 5 F:\DMS\TCS.DIR\0115230.05 automatically expire when the representative is no longer an elected officer of the agency that he or she represents on the Board. B. Duties of the Board of Directors: The Board shall perform all acts necessary or proper to carry out the purposes of this Agreement and to execute the General and Specific Powers of the Authority, which acts include but are not limited to the following: a) Conduct Board meetings pursuant to a schedule adopted by the Board; b) Consider, modify and approve the annual work program and budget; C) Levy, fix, set and/or impose fees, assessments and charges to the extent permitted by law and by this Agreement; d) Authorize, review and accept reports and studies; e) Review, recommend, approve and/or regulate rates for services provided by the Authority or over which the Authority has regulatory power through contract or otherwise; f) Recommend action to Member Agencies and other public bodies on: i) The Contra Costa County Integrated Waste Management plan and any other such public planning documents as may be developed and revisions or amendments thereof; and ii) The planning, financing, development and operation of Authority activities; g) Accept agencies as subsequent parties to the Agreement and members of the Authority, and their representatives as Board members; h) Authorize the hiring and/or engagement of Authority staff; i) The Board may, from time to time, declare one of the Member Agencies as the lead agency for specific purposes as may be set forth by the Board or for the general purpose of staffing the Authority and carrying out the Authority's functions. At the time said Member Agency is appointed as a lead agency, the Board shall determine whether the member is to bear the costs of such lead agency activity or be reimbursed therefor. The Authority, in any event, shall reimburse agency members for personnel costs associated with the staffing of the Authority with Member Agency personnel; 6 F:\DMS\TCS.DIR\0115230.05 j) Establish committees to carry out Authority purposes, and appoint committee members from the Authority Board, the legislative bodies or administration of Member Agencies, Authority staff, and/or staff of the Member Agencies. The Authority shall reimburse agency members for personnel costs associated with the staffing of committees with Member Agency personnel; k) Establish policies governing the compensation of staff employed by the Authority, which policies are subject to approval of the governing bodies of the agency members by a two-thirds (2/3) vote thereof; 1) Delegate duties to Authority or Board staff and/or members, appointed committees and committee members, the City Councils and/or staff, or the Sanitary District Board and/or staff or the County Board of Supervisors and/or staff. C. Voting Requirements: All actions of the Board may be undertaken by a majority vote of the Board members present, provided a quorum exists, except for such Board actions requiring a two-thirds (2/3) vote as may otherwise be set forth herein. Each Board member shall have one vote. D. Board of Directors Members: Upon execution of this Agreement, the governing body of each agency shall, by resolution, appoint two (2) member/representatives to serve as members of the Board in conformity with the requirements of Article 3, Section A. E. Subsequent Authority Members: Any agency which has the authority to franchise solid waste collection in Central Contra Costa County, and franchises the same or delegates such authority to franchise to the Authority (including cities incorporated and districts formed after the effective date of this Agreement, and including the County), may become members of the Authority. Its representatives may become voting members of the Board by: (1) presenting an adopted resolution to the Board which includes a request to become a member of the Authority, (2) receiving a two-thirds (2/3) vote of all members of the Board to accept the new member, and (3) by payment of any charges and execution of all documents as may be required by the Board. Such charges may include such items as compensation to the existing Authority members for previously expended costs in furtherance of Authority purposes, including staffing expenses, capital expenses, financing expenses, and assessments for losses in prior Authority operations. These examples are purely illustrative, however, and are not intended to limit the power of the Authority or the Board to fix whatever buy-in, capitalization or other equalization charges deemed necessary or -proper. Payment of such charges may be made in any manner deemed necessary or proper by the Board, including, but not limited to cash payment, a differential rate structure at Authority facilities, future capital contributions, surcharges or by other plan which might include appropriate security. 7 F:\DMS\TCS.DIR\0115230.05 F. Board Officers: The Board. shall by a majority vote elect from its members a Chairperson and a Vice Chairperson. The Chairperson and Vice Chairperson shall have one-year terms and may be re-elected so as to serve a maximum of two (2) consecutive one-year terms, unless the Board unanimously approves additional consecutive term(s) as to a particular Chairperson or Vice Chairperson. The Chairperson shall preside over all meetings according to the Rules of Procedure adopted by the Board. The Board Chairperson shall represent the Authority and execute any contracts and other documents when required by the Rules of Procedure. G. Board Rules: The Board is empowered to establish its own Rules of Procedure to the extent those rules are not inconsistent with the laws of the State of California governing the operations of this Authority. H. Meetings of the Board: a) Regular Meetings: The Board shall hold scheduled public meetings at a location selected by the Board. b) Special Meetings: Special meetings of the Board may be called in accordance with the provisions of Section 54956 of the California Government Code. c) Notice of Meetings: All meetings of the Board shall be held subject to the current provisions of the Ralph M. Brown Act, being Sections 54950 et sea. of the California Government Code, and other applicable laws of the State of California requiring public meetings. d) Minutes: The Board Chairperson shall cause minutes of all meetings to be kept and shall, as soon as possible after such meeting, cause a copy of the minutes to be forwarded to each member of the Board. I. Staffing: Each of the Member Agencies shall use its best efforts to provide staff to the Authority as may be necessary initially for the Authority to execute its powers and duties and as may be required by the Board thereafter. Staff may be drawn from Member Agencies or agency staff. Additionally, the Authority may contract with or employ entities and/or individuals not associated with Member Agency staff, as permitted by Article 2, Section B(3). J. Officers: The Board has the power to appoint as staff to the Board the following officers: a) Executive Director: There may be an Executive Director appointed who will serve as the chief administrative officer of the Authority. He or she shall be responsible to the Board for the management and administration of all Authority affairs pursuant to the Board's direction. 8 F:\DMS\TCS.DIR\0115230.05 Until such time as the Board may determine to appoint an Executive Director who is not a staff member of a Member Agency, and for such other times as there is no Executive Director serving, the Board may appoint an interim Executive Director, who shall have such powers and duties as are set forth in this section. An interim Executive Director shall be the chief administrative officer of one of the Member Agencies, or such other agency staff member as the Board deems appropriate. b) Treasurer and Controller: There shall be a Treasurer and Controller to be the custodian of all Authority funds, to pay demands and to make or contract for an annual audit. Such Treasurer shall be the Treasurer of one of the Member Agencies, the County Treasurer, a Certified Public Accountant or one of the Authority's officers or employees as set forth in California Government Code §§6505.5 and 6505.6. C) Secretary: There shall be a Secretary appointed by the Executive Director who shall be responsible for the noticing of meetings and recording of minutes of meetings as required by the Brown Act and the Rules of Procedure, in addition to such other duties as the Executive Director may assign. K. Funds. Expenditures and Audits: Each and every expenditure of moneys shall be authorized or approved by the Board or by a person designated by the Board to authorize expenditures. The Treasurer shall draw warrants to pay demands so authorized for payment by the Board. Before the Authority may expend any moneys or incur any financial obligation, it shall adopt a budget showing proposed expenditures for the Fiscal Year and the proposed means of financing such expenditures. The budget shall be for the ensuing Fiscal Year, beginning on July 1 of each calendar year and ending on June 30 of the following calendar year. The Board shall periodically cause an audit to be performed with regard to the financial operations of the Authority. ARTICLE 4: TERMS OF AGREEMENT A. Effective Date: This Agreement shall become effective on the date of its execution by _F all the agencies identified as Initial Members in Article 1, Section C. B. Amendments: This Agreement may be amended by a two-thirds (2/3) vote of all members of the Board. Any such amendment shall be effective upon the date of such action. 9 F:\DMS\TCS.DIR\0115230.05 C. Undertaking of Specific Projects: Although it is the intent of this Agreement, and therefore the purpose of the Authority, to cooperate jointly amongst the Member Agencies so as to provide the most efficient operation of solid waste facilities and most efficient means of handling and/or disposal of solid waste, green waste and recyclables on a regional basis, nothing contained in this Agreement is intended to prevent the Authority from undertaking projects and agreements to provide services pursuant to separate contacts between the Authority and individual Member Agencies and non- member public agencies, which projects and agreements are not intended to benefit all of the Member Agencies. The Authority shall hold title to each project and to the rights and benefits of each agreement in trust for the use of the members who participate. The members who participate in a project or agreement shall indemnify and hold harmless the members who do not participate from liability of any kind resulting from, or in any way related to, the financing, construction, acquisition, operation or maintenance of such project, or resulting from or arising out of performance of such agreement. The Authority shall have the power to proceed with the final acquisition and construction of a project which is not joined in by all Authority members, only when a separate project contract has been entered into which provides arrangements for obtaining funds sufficient to pay for all costs of such project. D. Withdrawal: a) Any Member Agency, upon written notice given by January 1 of any year to the Chairperson of the Board of Directors, and to all other Member Agencies, may withdraw from the Authority effective no earlier than July 1 of that year; provided, however, that the withdrawal of such Member Agency shall not terminate such Member Agency's responsibility under any obligation of such Member Agency or the Authority or any action taken in connection therewith, and further provided that the withdrawing agency may pay to the Authority on the effective date of withdrawal, all money owing to the Authority, and as to those capital expenditures that the withdrawing agency has agreed to participate in by contract or otherwise, its share of such capital expenditures. Such financial obligations of such withdrawing agency may be assumed by another entity upon a two-thirds (2/3) vote of the Board, absent the participation of the representative of the withdrawing agency. b) Notwithstanding subsection (a) above, a member shall not be permitted to withdraw from the Authority-unless the Board determines by majority vote, absent the participation of the representatives of the withdrawing agency, that as of the effective date of withdrawal the Authority will have a waste stream sufficient to meet all Authority operating expenses and obligations outstanding as of the effective date of withdrawal, whether capital, operational, maintenance- related or otherwise, and to ensure that all Authority operations will not be i0 F:\DHS\TCS.DIR\0115230.05 adversely affected to a material extent by the withdrawal of the withdrawing member. C) Notwithstanding subsections 1 and 2, above, any Member Agencies, regardless of whether it withdraws from Authority membership, may at any time, for any reason, upon thirty (30) days prior written notice to the chairperson of the Board of Directors, terminate the delegation of authority from said Member Agency granting the Authority the right to franchise on behalf of said Member Agency. As of the effective date of termination of said delegation of franchise authority, said Member Agency shall no longer be a party subject to any franchise agreement entered into on its behalf by the Authority. Said Member Agency agrees, however, to accept an assignment of all rights and obligations under each said franchise agreement entered into on its behalf by the Authority with respect to those portions of the service area of each franchise agreement located within the jurisdictional boundaries of said Member Agency. Said Member Agency further agrees to administer such partially assigned franchise agreements in good faith, pursuant to the terms of each said franchise agreement, for the balance of their respective terms. Nothing contained herein limits the right of said Member Agency and any of said franchisees from subsequently agreeing to amend said partially assigned franchise agreements. d) The withdrawing agency shall also continue to be liable for its share of Authority obligations, including, but not limited to, operations costs and the General Budget, until the effective date of its withdrawal. E. Expulsion of Member: The Board may, by a two-thirds (2/3) vote of the Board members, terminate a Member Agency's membership in the Authority for a material breach of this Agreement after six (6) months' notice to such Member Agency. A Member Agency so expelled shall be responsible for capital expenditures and non-capital obligations of the Authority as set forth in Article 4, Section D above. Further, a Member Agency so expelled shall have the rights as set forth in Article 4 D(3) with respect to termination of its delegation of franchising authority and partial assignment of the franchise agreements. F. Reinstatement: An agency, subsequent to its withdrawal, or subsequent to expulsion, may seek reinstatement as a Member of the Authority. Application for reinstatement shall be made in writing to the Board. An agency shall be reinstated upon a two-thirds (2/3) vote of all members of the Board as then constituted. The Board may require an agency seeldng reinstatement to meet any terms and conditions which the Board deems appropriate. G. Division of ProI&M and Obligations on Dissolution: Upon dissolution of the Authority as a legal entity, all debts and obligations of the Authority, including all bonded indebtedness, shall be paid, and the remaining property of the Authority shall be divided 11 F:\DKS\TCS.DIR\0115230.05 in proportion to the contributions made among all of the agencies who are parties to this Agreement at the time of its dissolution. H. Flow Control: With regard to any flow control rights that Member Agencies may have with respect to any solid waste, Member Agencies shall not exercise such flow control rights for solid waste collected within the Authority's jurisdictional boundaries in any manner inconsistent with the terms of any Authority franchise or other contractual agreements. To the extent that Member Agencies may now, or in the future, have the authority to exercise flow control for the said waste stream collected within their jurisdictional boundaries, the Authority shall, on entering into a contract or franchise concerning collection, transfer and disposal of solid waste, be deemed to have the authority to exercise such flow control rights for the solid waste within the jurisdictional boundaries of the Authority under the terms of this Agreement. .Nothing herein is intended in any manner to constitute an exercise of flow control by the Authority or its Member Agencies. The intent of this Agreement is to provide recognition of the respective roles of the Authority and its Member Agencies with respect to solid waste flow control issues. Moreover, this Agreement shall be interpreted to be limited by existing and developing law on issues of flow control and interstate commerce. I. AApcWtance of Waste Stream: The Authority shall accept the waste stream of any Member Agency, whether delivered for solid waste handling by the Member Agency or by a franchisee of the Authority or Member Agency, to the extent the Authority owns or operates solid waste handling facilities designed and constructed to accommodate the waste stream from the affected Member Agency and the facility or facilities have adequate capacity to serve the Member Agency's entire need. The Authority shall attempt to acquire, construct and/or operate Authority facilities in such a manner as to best accommodate the solid waste handling needs of all Member Agencies. J. Funding From Member Agencies: Subject to Article 1, Section E, each Member Agency shall provide its share of the Authority's general budgetary obligation. Each initial member's share is set forth in Exhibit A attached hereto and incorporated herein by reference and made a part hereof as if fully set forth herein. K. Liability: The turt liability of the Authority, all members of the Board, and all officers and employees of said Authority shall be controlled by the provisions of Division 3.6 of Title I of the Government Code of the State of California. Any tort and contractual liability incurred by or imposed upon the "Authority" shall remain the sole liability of the Authority rather than the liability of the Member Agencies, to the full extent such allocation of liability is permitted by law. The provisions of said Division relating to the indemnification of public employees and the defense of actions against them arising out 12 F:\DMS\TCS.DIR\0115230.05 of any act or omission occurring within the scope of their employment shall apply to all Authority directors, officers and employees. Notwithstanding the specific terms of this section, the Authority and the Member Agencies shall retain the power to allocate liability between the Authority and the Member Agencies, or among the Member Agencies, in a manner other than as set forth above pursuant to written agreement or to do the same for specific projects or undertakings of the Authority. To the extent that any liability of the Authority, whether based on contract, tort or otherwise, passes through to a Member Agency, or Member Agencies, said liability shall be apportioned based upon principals of fault. If, for any reason, apportionment between Member Agencies cannot be based upon fault under the circumstances involved, then apportionment shall be based upon that proportion that the total tonnage of solid waste collected within the jurisdiction of each Member Agency bears to the total tonnage of solid waste collected within the jurisdiction of all members of the Authority as more fully described in Article 1(E). L. Indemnity: The Authority shall indemnify, defend (at the Authority's sole expense), and hold harmless the Member Agencies, their respective officers, directors, employees, and agents from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding, or suit of any and every kind and description (including, but not limited to, injury to and death of any person and damage to property, or for contribution or indemnity claimed by third parties) arising as the sole result of the Member Agency or Agencies' status as members of the Joint Powers Authority, i.e. liability of the Member Agency is derivative only. The Authority's duty to indemnify, hold harmless and defend shall survive the expiration or earlier termination of this- Agreement. M. Insurance: Each Member Agency and its respective officers, directors and employees shall be named as additional insured to the same extent and degree that the Authority and its officers, directors and employees are named as additional insureds with respect to any insurance as required by the Authority pursuant to the terms of any contract or franchise agreement entered into by any other party with the Authority. N. Term and Termination: This Agreement shall continue in force until terminated as specified by this section. This Agreement may be terminated at the end of any Fiscal Year by consent of all Member Agencies; however, this Agreement and the Authority shall continue to exist for the purpose of disposing of all claims, the distribution of assets, and any other functions necessary to conclude the affairs of the Authority. Upon termination, payment of the obligations and division of the property of the Authority_ shall be conducted pursuant to Section G of this Article. 13 F:\DMS\TCS.DIR\0115230.05 ARTICLE 5: PROJECT FINANCING A. Separate Contracts: Financing of specific capital projects, such as the acquisition or construction of solid waste facilities by the Authority, shall be subject to separate contracts between the Authority and Member Agencies which intend to participate in the specific facility. The contracts shall set forth each agency's responsibility for capital expenditures and operating expenses, as well as such other terms as may be appropriate. B. Debt: The Authority may issue or cause to be issued bond and other indebtedness, and pledge any property and/or revenues as security to the extent permitted by law. Any and all debts, liabilities, and obligations incurred by or imposed upon the Authority shall be the debts, liabilities, and obligations solely of the Authority, rather than the debts, liabilities, and obligations of the individual Member Agencies. C. Financial Contribution: For agencies joining the Authority after the effective date of this Agreement, the Board shall determine such agencies' proportionate financial contribution, which is due upon joining the Authority. D. Funding: It is intended that the liabilities of the Authority, to the fullest extent possible, are funded by revenues generated by facility operations or through solid waste fees and franchise fees based on services provided by Authority or pursuant to Authority direction or regulation. ARTICLE 6: EXERCISE OF AUTHORITY'S POWERS This Agreement is entered into under the provisions of Article 1 of Chapter 5, Division 7, Title One of the Government Code concerning Joint Powers Agreements. As to those powers vested in the Authority pursuant to Section 6508 of the Government Code, they shall be exercised in the same manner and subject to the same restrictions as those applicable to a sanitary district pursuant to statutes and laws of the State of California. 14 F:\DMS\TCS.DIR\0115230.05 ARTICLE 7: OBLIGATIONS OF AUTHORITY Any and all debts, liabilities, and obligations incurred by or imposed upon the Authority shall be the debts, liabilities, and obligations solely of the Authority and no capital or administration debt, liability, or obligation shall thereby be imposed upon any party to this Agreement or the collective parties hereto. PASSED AND ADOPTED this day of , 19, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors Central Contra Costa Solid Waste Authority COUNTERSIGNED: Secretary Central Contra Costa Solid Waste Authority APPROVED AS TO FORM: Kenton L. Alm District Counsel 15 F:\DMS\TCS.DIR\0115230.05 A TRANSITIONAL AGREEMENT BETWEEN COUNTY OF CONTRA COSTA AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS TO BE WITHIN THE JURISDICTION OF CCCSWA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for the transfer.of the authority to manage collection of garbage, and franchising thereof. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection,transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512, and as otherwise provided for in Public Resources Code §40000, et seq; and B. WHEREAS, CCCSD entered into a Franchise Agreement with Valley Disposal Service, Inc. granting Valley Disposal Service, Inc. the exclusive franchise to collect garbage within, a portion of CCCSD's jurisdictional boundaries, including both incorporated and unincorporated areas, for a term of ten years expiring February 29, 1996; and F:\DMS\TCS.DIR\0118669.08 C. WHEREAS, Waste Management Collection and Recycling, Inc., through its Division, Valley Waste Management (hereinafter "VWM"), is the current franchisee under the Valley Disposal Service, Inc. Franchise Agreement (hereinafter "VWM Franchise"); and D. WHEREAS, the County, pursuant to California Government Code §25827, the California Constitution and Public Resources Code §§40,000 et sea. has the authority to collect or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and E. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and F. WHEREAS Central Contra Costa Solid Waste Authority(hereinafter"CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised of member agencies of CCCSD and the City of Walnut Creek); and G. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the First Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and H. WHEREAS, the County desires to have clear exclusive authority to franchise or contract for the collection of solid waste within the unincorporated sections of the current CCCSD-VWM franchise area; and 2 F:\DMS\TCS.DIR\0118669.08 1. WHEREAS, the County has requested by action of the Board of Supervisors on January 24, 1995 and thereafter to become a member of CCCSWA; and J. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and K. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas as well as constituents of other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and L. WHEREAS, CCCSD .is willing to cede its solid waste collection franchise authority for the unincorporated areas to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegates (in the same manner as the City of Walnut Creek for its City area) to CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of CCCSWA as set forth in the CCCSWA November 1994 Franchising RFP; and M. WHEREAS, County previously indicated its intent to directly assume franchise administration in unincorporated areas within CCCSD on and after the expiration of the Franchise Agreement (CCCSD-VWM Franchise) on February 29, 1996; and N. WHEREAS, CCCSD disputes the County authority to assume franchise administration in,the unincorporated areas within CCCSD. 3 F:\DMS\TCS.DIR\0118669.08 NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: ARTICLE 1 Definitions 1.1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at §40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-VWM'Unincorporated Franchise Area "CCCSD-VWM Unincorporated Franchise Area" means and includes only the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the VWM Franchise. The franchise area is further described by the 600 scale maps as referenced in the Franchise Agreement. 1.3 Effective Date "Effective Date" means the first date upon which this agreement is legally effective following all signatures and approvals required by the parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is,the agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which Agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 4 F:\DMS\TCS.DIR\0178669.08 1.5 Franchise Agreement "Franchise Agreement" or "VWM Franchise," for purposes herein, means the "Agreement for Collection, Removal, and Disposal of Garbage, Zone 2," between Valley Disposal Services; Inc. and CCCSD dated March 1, 1986. 1.6 RFP, RFP Process "RFP" and "RFP Process" means the process by which CCCSWA solicited proposals for solid waste'-handling and related AB 939 activities pursuant to a document dated November, 1994, entitled Central Contra Costa Solid Waste Authority Request for Proposals for Integrated Solid Waste Management Services and the receipt and evaluation process by CCCSWA of responses to the request for proposals. 1.7 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 and regulations promulgated thereunder, as amended from time to time, including green waste and recyclables. (The term "garbage" is the defined term used within the Franchise Agreement, which term is defined therein at section 1(e) and is synonymous with the term "solid waste" within this agreement). ARTICLE 2 Obligations of Countv 2.1 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing 5 F:\DMS\TCS.DIR\0178669.08 members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this agreement. 2.2 Concurrent with the execution of this agreement, the County shall file a resolution with respect to the CCCSD-VWM Unincorporated Franchise Area delegating its franchising authority as of March 1, 1996 to the CCCSWA at least in the same manner as the City of Walnut Creek as of the:date this agreement is approved by the Board of Supervisors. The County shall further execute any other reasonably necessary documents for the purpose of enabling the CCCSWA to undertake its role as the regional franchising authority as specified in the above noted Walnut Creek delegation. If the current CCCSD Franchise Agreement with VWM (Franchise Agreement) is extended for a period of time not to exceed one year, the effective date for the delegation of the franchise authority to CCCSWA by the County shall be extended by a like period of time; hereinafter, said term of the franchise and any extension not to exceed one year shall be collectively referred to as the "franchise term" or "term of the franchise." 2.3 As between the County and CCCSD, the County shall be responsible, to the extent allowed by law, and except as delegated to CCCSWA, for all solid waste management of the unincorporated areas of the CCCSD-VWM Unincorporated Franchise Area set forth in this agreement beginning at the end of the VWM franchise term. 6 F:\DMS\TCS.DIR\0118669.08 ARTICLE 3 Obligations of CCCSD 3.1 CCCSD shall delegate to the County and thereafter refrain from exercising its franchising authority in the CCCSD-VWM Unincorporated Franchise Area so long as the County exercises its franchising or equivalent authority (such as County's delegation to CCCSWA) within that area. :This delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective on the date of termination of the current franchise agreement with VWM, provided that the conditions precedent in Article 8, section 8.1 have been satisfied. If said conditions precedent have not been so satisfied, this agreement and the delegation and/or agreement to refrain from further exercise of authority to franchise shall not be effective until said conditions precedent have been met. The District agrees that once the County joins the CCCSWA and the new franchise agreements with Browning Ferris Industries and Waste Management begin, the District will not challenge the County's right to franchise solid waste in unincorporated areas. 3.2 CCCSD shall be responsible for administration of the current Franchise Agreement for the remaining term of said agreement. In addition, CCCSD shall continue to administer all AB 939 diversion and recycling activities currently being undertaken pursuant to the Franchise Agreement and otherwise currently being undertaken by CCCSD, or on its 7 F:\DMS\TCS.DIR\0118669.08 behalf within the CCCSD-VWM Unincorporated Franchise Area for the remaining term of said Franchise Agreement. 3.3 CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the Franchise Agreement, as are available and requested by County. 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-VWM Unincorporated Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-VWM Unincorporated Franchise Area shall be subject to the jurisdiction of the CCCSWA in accordance with the County's aforenoted delegation. 4.2 County shall, in good faith, participate as a member of CCCSWA in the RFP process, including the execution (along with the City of Walnut Creek) of the franchise agreements providing for solid waste services within the CCCSWA jurisdictions contemplated by the RFP; provided that CCCSWA Board of Directors determines that such solid waste franchise agreements are acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 8 F:\DMS\TCS.DIR\0118669.08 4.3 During the period between the effective date of this agreement and the effective date of a new franchise agreement covering the CCCSD-VWM Unincorporated Franchise Area entered into pursuant to the ongoing CCCSWA RFP Process, County shall be allowed full opportunity to participate on staff and Board level, on all decisions with regard to processing the RFP proposals and with regard to entering into appropriate franchise and disposal agreements. 4.4 CCCSD and County agree that except for the authority delegated herein to CCCSWA with respect to the provision of solid waste services, upon the termination of.the Franchise Agreement, County shall (as and to the extent provided and allowed by law) be responsible for administration of all AB 939 activities including diversion and recycling within the CCCSD-VWM Unincorporated Franchise Area. ARTICLE 5 Franchise Fees 5.1 CCCSD has received all franchise fee payments pursuant to the Franchise Agreement and shall receive any additional payments during the term of said franchise. County shall receive no portion of said franchise fees; however, County shall not be required to pay any membership fee for joining CCCSWA. The CCCSWA expenses are prorated to Member Agencies annually on a tonnage basis. The CCCSWA fees with respect to the CCCSD-VWM Unincorporated Franchise Area have been paid to date, and will be paid 9 F:\DMS\TCS.DIR\0118669.08 by, or on behalf of, CCCSD during the remaining term of the Franchise Agreement and any extension thereof not to exceed one year. Thereafter, CCCSD will have no responsibility for County's share of membership fees or costs due CCCSWA for the unincorporated areas within the CCCSWA jurisdictional boundaries. 5.2 If the VWM franchise is extended beyond March 1, 1996, the County may impose, in its discretion, such additional franchise fees as may be allowed by law. CCCSD agrees to set rates to provide for such fees and direct VWM to collect such County franchise fees during the remaining term of said Franchise Agreement. ARTICLE 6 Liability Issues 6.1 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical, Inc., US District Court, Northern District of California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme. Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-VWM Unincorporated Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base in the existing CCCSD-VWM Unincorporated Franchise Area, 10 F:\DMS\TCS.DIR\0118669.08 notwithstanding the assignment/transfer of the franchise authority to the County. The proportionate share of responsibility for the customers in the existing franchise area shall be based on the waste derived historically from the wasteshed area. By entering into this Agreement, the County is not assuming any responsibility or liability for the defense of the Acme Lawsuit for this wasteshed area. 6.2 The County as the future franchising authority, either directly or through the CCCSWA, agrees that the proportionate share of any liability or settlement costs (including a proportionate share of net legal costs and expenses incurred after the termination of the Franchise Agreement) shall be borne by the customer/constituent base of the CCCSD- VWM Unincorporated Franchise Area, and amounts sufficient to pay for the net proportionate liability, costs and expenses, if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided and collected to the fullest extent allowed by law as a pass-through in the collector franchise rates for the Area, whether the liability and/or settlement costs for this wasteshed be directly imposed on CCCSD and/or the County in the Acme Lawsuit. If deemed appropriate, the County may (at its discretion) collect such proceeds as charges or fees imposed at any County franchised landfill and/or transfer station facility receiving solid waste from the VWM- CCCSD Unincorporated Franchise Area. 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission. 11 F:\DMS\TCS.DIR\0118669.08 or concession concerning said litigation. The County and CCCSD each, respectively, deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current Franchise Agreement or arising from other solid waste administration activities.within,the CCCSD-VWM Unincorporated Franchise Area as a result of occurrences during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of termination of the VWM Franchise Agreement. As between County and CCCSD, County shall be responsible for any liability arising as a result of occurrences after said date of termination of the VWM Franchise and during County franchise administration. In no event is County, by entering into this agreement, assuming any legal liability for any period prior to the said Franchise Agreement termination for the wasteshed area, except as specifically set forth above. ARTICLE 7 Indemnity 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including 12 F:\DMS\TCS.DIR\0118669.08 attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 arising at any time from occurrences prior to the effective date of the termination of the current Franchise Agreement. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 County shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above arising from occurrences after the effective date of the termination of the current Franchise Agreement. ARTICLE 8 Conditions Precedent 8.1 The following shall be conditions precedent to the terms of this agreement becoming legally effective (in addition to the proper execution of this agreement by-both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives 13 F:\DMS\TCS.DIR\0118669.08 seated as full members of the CCCSWA Board; and (2) County shall in the same manner as the City of Walnut Creek take such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994-1995 RFP documents and the map attached hereto as Exhibit A) to the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994-1995 RFP process. ARTICLE 9 Miscellaneous Provisions 9.1 Entire Agreement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 9.2 Section headin&s The article headings and section headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 9.3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 14 F:\DMS\TCS.DIR\0118669.08 9.4 Amendment This agreement may not be modified or amended in any respect except by a writing signed by the parties hereto. 9.5 Severability If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of.this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 9.6 Attorna's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 9.7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. 9.8 Future Franchising Authority Except for the up-to-one-year extension period allowed by this agreement for CCCSD administration of the current VWM franchise, it has been and remains the County's position that on and after the expiration of the Franchise Agreement (February 29, 1996), CCCSD has no franchise authority for the unincorporated areas covered by this 15 F:\DMS\TCS.DIR\0118669.08 agreement to the extent the County thereafter franchises and/or regulates (e.g., delegates, etc.) for said areas. Nothing herein shall be construed as a waiver or modification of past County actions or its position in this regard, except for the said up-to-one-year extension period. It is understood and recognized that CCCSD does not agree with this County position. The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: , 1995 C O RICT T/ %ilnaaZ BY:Rog , erlYanager Dated: 1995 COUNTY OF CONTRA COST BY: APPROVED AS TO FORM: Kenton L.-Arm, General Counsel Central Contra Costa Sanitary District ctor J. W tm n, Caunty Counsel County of Contra Costa 16 F:\DMS\TCS.D1R\0118669.08 CENTRAL CONTRA COSTA SOLID WASTE AUTHORITY SERVICE AREA aoDrflr e P0RT CHCW mo mrr CLYM wM f. 16. �► o PIf15BM g+ s MARTINEZ a CONCORD m PLEASAN HILL 4 °AYMN .me � e e o � `� Kms'+j f LAFAYEi tE 4 Y z 4 AL4niIC� BLACKHAWK t �a w�ao - - e s SERVICE AREA INCLUOES THE CmES OF WALNUT CRREI K,ORWDA.LAPAYEM MORAGA. DANMUE,ALAMO.BLACKHAWK AND All OTHER CENTRAL COUNT/UNINCORPORATED - ARFAS ELCEPT PACHECO, AND CLYDE.(NOTE.ONLY THE LARGER UNNCORPORATED MEAS WRFRN CRIES ARE SHOWN. DMCLAU46t:This map shows peneral od boundaries drawn according to information provided to CCCSD prior io ihs above data.D'nsaspwtaes dnoutd be moNed with" appropriate agency and sent to CCCSD to be included in the nsd edition aNhis map. B TRANSITIONAL AGREEMENT BETWEEN COUNTY OF CONTRA COSTA AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS OF THE NORTH CONCORD/PACHECO/CLYDE SOLID WASTE FRANCHISE AREA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for : the transfer of the authority to manage collection, transport and disposal of solid waste, and franchising thereof within certain unincorporated areas within North Concord, Pacheco and Clyde. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection, transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512 and as otherwise provided for in Public Resources Code §§40000, et seq; and F:\DMS\TCS.DIR\0118828.08 J B. WHEREAS, CCCSD entered into a franchise agreement with Boyd Olney,Jr. dba Pleasant Hill Bayshore Disposal, a sole proprietorship (hereinafter "PHBS")dated April 1, 1986 granting PHBS the exclusive franchise to collect garbage within the CCCSD-PHBS Franchise Area, defined below, for a term of ten years expiring March 31, 1996 (hereinafter "PHBS Franchise") attached hereto as Exhibit A; and C. WHEREAS, Pleasant Hill Bayshore Disposal, Inc. (hereinafter PHBS, Inc.) a wholly owned subsidiary of Browning-Ferris Industries of California, Inc. is now operating as the successor in interest to PHBS; and D. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and E. WHEREAS, Central Contra Costa Solid Waste Authority (hereinafter "CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised by member agencies of CCCSD and the City of Walnut Creek); and F. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the First Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and G. WHEREAS, the County desires to have clear exclusive authority to franchise or contract for the collection of solid waste within the CCCSD-PHBS Franchise Area; and H. WHEREAS, the County, pursuant to California Government Code §25827, the California Constitution and Public Resources Code §§40,000 et sea. has the authority to collect 2 f:\DMS\TCS.DIR\0118828.08 or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and I. WHEREAS, the County has requested by actions of the Board of Supervisors on January 24, 1995 and thereafter to become a member of CCCSWA; and J. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and K. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas as well as constituents of the other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and L. WHEREAS, CCCSD is willing to delegate its solid waste collection franchise authority to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegates (in the same manner as the City of Walnut Creek for its City area) to CCCSWA its authority to franchise solid waste collection, . transport and disposal in the unincorporated areas within the jurisdictional boundaries of CCCSWA set forth in the CCCSWA November, 1994 Franchising RFP, exclusive of the unincorporated areas within the CCCSD-PHBS Franchise Area; and M. WHEREAS, County previously indicated its intent to directly assume franchise administration in unincorporated areas within CCCSD on and after the expiration of the CCCSD- PHBS Franchise Agreement; and 3 F:\DMS\TCS.DIR\0118828.08 N. WHEREAS,CCCSD disputes County authority to assume franchise administration in the unincorporated areas within CCCSD. NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: ARTICLE 1 Definitions 1.1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at §40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-PHBS Franchise Area "CCCSD-PHBS Franchise Area" means and includes the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the PHBS Franchise Agreement. .The franchise area is further described by the 600 scale maps as referenced in the franchise agreement. 1.3 Effective Date "Effective Date" means the first date upon which this agreement is legally effective following all signatures and approvals required by the parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is the-agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which 4 F:\DMS\TCS.DIR\0118828.08 agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 1.5 PHBS Franchise Agreement "PHBS Franchise Agreement," for purposes herein, means the "Agreement for Collection, Removal and Disposal of Garbage, Zone 3," dated April 1, 1986, between PHBS and CCCSD. 1.6 RFP, RFP Process "RFP" and "RFP Process" means the process by which CCCSWA solicited proposals for solid waste handling and related AB 939 activities pursuant to a document dated November, 1994, entitled Central Contra Costa Solid Waste Authoritvfequest for Proposals for Integrated Solid Waste Management Services and the receipt and evaluation process by CCCSWA of responses to the request for proposals. 1.7 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 and regulations promulgated thereunder, as amended from time to time, including green waste and recyclables. (The term "garbage" is the defined term used within the PHBS Franchise Agreement, which term is defined therein at section 1(e) and is synonymous with the term "solid waste" within this agreement.) 5 F:\DMS\TCS.DIR\0118828.08 ARTICLE 2 Obligations of County 2.1 County agrees to apply for membership in, and become a full and, equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this agreement. 2.2 Except as provided herein below, as between the County and CCCSD, the County shall be responsible to the full extent allowed by law for all solid waste management of the unincorporated areas of the CCCSD-PHBS Franchise Area as of the effective date of this agreement. County shall accept the assignment of the PHBS Franchise Agreement from CCCSD by the date specified in section 3.1. 2.3 Upon the expiration of the current unextended term of the PHBS Franchise Agreement, as between the County and CCCSD, the County shall be responsible, to the full extent allowed by law, for administration of all AB 939 activities including diversion and recycling within the existing CCCSD-PHBS Franchise Area. As of the effective date of this agreement, the County shall assume any and all responsibilities for AB 939 activities, except for those specifically reserved in section 3.2 to CCCSD for the remainder of the PHBS Franchise Agreement term. 6 F:\DMS\TCS.DIR\0118828.08 ARTICLE 3 Obligations of CCCSD 3_1 CCCSD shall file a resolution assigning the PHBS Franchise Agreement for the remainder of its term and thereafter refraining from exercising its franchising authority within the CCCSD-PHBS Franchise Area so long as the County exercises its franchising authority within that area. This assignment and delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective on October 1, 1995; provided that the conditions precedent in Article 8, section 8.1 have been satisfied. If said conditions precedent have not been so satisfied, this agreement and the delegation and/or agreement to refrain from further exercise of authority to franchise shall not be effective until said conditions precedent have been met. The District agrees that once the County joins the CCCSWA and the new franchise agreements with Browning Ferris Industries and.Waste Management begin, the District will not challenge the County's right to franchise solid waste in unincorporated areas. 3.2 CCCSD shall continue to administer those AB 939 diversion and recycling activities currently being undertaken pursuant to the PHBS Franchise Agreement and otherwise currently being undertaken by CCCSD, or on its behalf within the CCCSD-PHBS Franchise Area until March 31, 1996. CCCSD, notwithstanding the assignment of the franchise agreement to County, shall continue to provide this service for the balance of 7 F:\DMS\TCS.DIR\0118828.08 the franchise term, for programs which have already been initiated, such as the home composting workshops and current recycling promotion. 3.3 CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the PHBS Franchise Agreement as are available and requested by County. 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-PHBS Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-PHBS Franchise Area shall not be subject to the jurisdiction of the CCCSWA and it is not intended that this area be included within the CCCSWA jurisdictional boundaries, nor is it included in the 1994-1995 CCCSWA collection, transport and disposal franchise RFP process. 4.2 County shall, in good faith, participate as a member of CCCSWA in the RFP process, including the execution (along with the City of Walnut Creek) of the franchise agreements providing for solid waste services within the CCCSWA jurisdiction contemplated by the RFP; provided that the CCCSWA Board of Directors determines 8 F:\DMS\TCS.DIR\0118828.08 that such solid waste franchise agreements are acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. ARTICLE 5 Franchise Fees 5.1 CCCSD has received all franchise fee payments pursuant to the PHBS Franchise Agreement for the remainder of the current term expiring in March 31, 1996, which franchise agreement shall not be extended. Such fees have already been allocated by CCCSD to programs for carrying out AB 939 activities within the CCCSD-PHBS Franchise Area through the remaining term of the PHBS Franchise Agreement. County shall receive no payment of said previously collected franchise fees; however, nor shall County be required to pay any membership fee for participation in CCCSWA for the remainder of the term of the PHBS Franchise Agreement. Nothing in this agreement is intended to limit County from .imposing additional franchise fees or taking any other action in administration of the PHBS Franchise Agreement during its remaining term following the effective date of assignment of said franchise to the County. ARTICLE 6 Liability Issues 6 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical, Inc., US District Court, Northern District of California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County 9 F:\DMS\TCS.DIR\0118828.08 and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-PHBS Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base of the existing CCCSD-PHBS Franchise Area, notwithstanding the assignment/transfer of the franchise authority to the County. The proportionate share of responsibility for the constituents/customers in the CCCSD-PHBS Franchise Area shall be based on the waste derived historically from the wasteshed area. By entering this agreement, the County is not assuming any responsibility or liability for the defense of the Acme Lawsuit for this wasteshed area. 6.2 The County as the future rate setting entity, agrees that the proportionate share of any liability or settlement costs (including a proportionate share of net legal costs and expenses incurred after the termination of the Franchise Agreement) shall be borne by the customer/constituent base of the CCCSD-PHBS Franchise Area, and amounts sufficient to pay for the net proportionate liability, costs and expenses, if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided and collected to the fullest extent allowed by law as a pass-through in the collector franchise rates for the area, whether the liability and/or settlement costs for this wasteshed be directly imposed on CCCSD and/or the County in the Acme Lawsuit. If 10 F:\DMS\TCS.D1R\0118828.08 deemed appropriate, the County may (at its discretion) collect such proceeds as charges. or fees imposed at any County franchised landfill and/or transfer station facility receiving solid waste from the PHBS Franchise Area. 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively, deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current PHBS Franchise Agreement or arising from other solid waste administration activities within the CCCSD-PHBS Franchise Area as a result of occurrences during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of assignment of the PHBS Franchise Agreement, as set forth in section 3.1. As between County and CCCSD, County shall be responsible for any liability arising as a result of occurrences after said date of assignment of the PHBS Franchise Agreement and during County franchise administration. In no event is County, by entering this agreement, assuming any legal liability for the said wasteshed area for any period prior to the said effective date of assignment of the PHBS Franchise Agreement except as specifically set forth above. 11 _ F:\DMS\TCS.DIR\0118828.08 ARTICLE 7 Indemnity 7_1 CCCSD shall indemnify, defend and'hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 arising at any time from occurrences prior to the effective date of the assignment the current PHBS franchise agreement. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 County shall indemnify, defend.and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to.or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above arising from occurrences after the effective date of the assignment of the current PHBS Franchise Agreement. 12 F:\DMS\TCS.DIR\0118828.08 ARTICLE 8 Conditions Precedent 8.1 The following shall be conditions precedent to the terms of this agreement becoming legally effective (in addition to the proper execution of this agreement by both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall in the same manner as the City of Walnut Creek take such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994-1995 RFP documents and the map attached hereto as Exhibit B) td-the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994-1995 RFP process. ARTICLE 9 Consent to Assi ng ment 9.1 This agreement is subject to CCCSD obtaining consent by PHBS, Inc. to,the assignment of the franchise agreement from CCCSD to the County, said. written consent to be acceptable to and approved by CCCSD and the County. Said consent shall include a provision.from PHBS, Inc. that PHBS, Inc. will not bring suit or seek any other relief from CCCSD concerning any issues relating to the exclusivity of the franchise agreement 13 F:\DMS\TCS.D1R\0118828.08 and/or the jurisdictional boundaries of the franchise for all periods prior to the effective date of assignment of the PHBS franchise agreement. If this consent is not obtained and approved by CCCSD and the County by-the expiration (March 31, 1996)of the CCCSD- PHBS Franchise Agreement, nothing herein shall be construed to prevent the County's exercising of whatever franchising authority it has in the Franchise Area. ARTICLE 10 Miscellaneous Provisions 10.1 Entire Agreement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 10.2 Parag=raph headings The article headings and paragraph headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 10.3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 10.4 Amendment This agreement may not be modified or amended in any respect except by a writing signed by the parties hereto. 14 F:\DMS\TCS.DIR\0118828.08 10.5 Severability If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall.not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 10.6 Attorney's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 10.7 Surviving_Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. 10.8 Future Franchising, Authority Except for the up-to-one-year extension period allowed by a separate County-CCCSD Transitional Agreement for CCCSD administration of the current Waste Management Collection and Recycling, Inc. (Valley Waste Management) franchise, it has been and remains the County's position that on and after the expiration of the CCCSD-PHBS Franchise Agreement, CCCSD has no franchise authority for the unincorporated,areas covered by this agreement to the extent the County thereafter franchises and/or regulates 15 F:\DMS\TCS.DIR\0118828.08 (e.g., delegates, etc.) for said areas. Nothing herein shall be construed as a waiver or modification of past County actions or its position in this regard, except for the said up- to-one-year extension period. It is understood and recognized that CCCSD does not agree with this County position. The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: 101, 1995 C O A ARY DISTRICT BY: ! Roger Dolan, neral anager Dated: 1995 COUNTY OF CONTRA OSTA BY: APPROVED AS TO FORM: Kenton L. Alm, Ge al ounsel Central Contra Costa Sanitary District ictor J. Westman, County Counsel County of Contra Costa 16 F:\DMS\TCS.D I R\0118828.08 AGREEMENT FOR COLLECTION, REMOVAL AND DISPOSAL OF GARBAGE ZONE 3 I 0 AGREEMENT FOR COLLECTION, REMOVAL AND DISPOSAL OF GARBAGE ZONE 3 This Agreement made and entered into this 1st day of April, 1986, by and between the District and the Contractor, WHEREAS the District and Contractor ' have entered into a Second Amended Agreement for Collection, Removal and Disposal of Garbage dated the 1st day of July, 1976s (hereinafter referred to as "said Agreement") granting . to Contractor the exclusive privilege to collect, remove and dispose of garbage in the Zone until November 30, 1986; and WHEREAS, said Agreement provides that it may be extended on November 30, 1986 at the option of the Contractor, unless at least two years prior to the termination of said Agreement the District has notified the Contractor in writing that it does not desire said Agreement to be extended for an additional period; and WHEREAS, the Contractor exercised its option to extend said Agreement; and WHEREAS, the District has notified the Contractor that it does not desire said Agreement to be extended under the same terms and conditions. NOW, THEREFORE, in consideration of the covenants and agreements of the parties hereto and the payment of certain fees as hereinafter set forth, it is mutually covenanted and agreed as follows: 1. DEFINITIONS: As used herein, the following terms shall have the meanings set forth below . (a) "Agreement": This Agreement for the collection, removal , recycling and disposal of garbage by and between the District and the Contractor entered into as of the date first written above. (b) "Contractor": Boyd M. Olney, Jr. , dba Pleasant Hill Bay Shore Disposal. (c) "Customers": Those who have contracted with the Contractor for the collection, removal, recycling or disposal of garbage as provided herein, or who may be required to accept and pay for said service by local ordinance. (d) "District": The Central Contra Costa Sanitary District, a C public corporation. -1- TABLE OF CONTENTS Section Page 1. Definitions 1 2. Exclusive Privilege 3 3. Intent to Regulate All Garbage Collection, 3 Removal or Disposal 4. Exceptions to Exclusive Privilege 3 5. Right to Sell Valuable Commodity 4 6. Rates 4 7. Duty of Contractor to Maintain Records-- 4 Right of District to Examine Contractors Records 8. Applications by Contractor for Rate Increase 6 9. Operation By Contractor 6 10. Complianco with Federal , State and Local Ordinances 6 11. Limitation of Time on Collection 7 12. District May Require Efficiencies in Operation 7 13. Salvage 7 14. Faithful Performance Bond 7 15. Insurance 8 16. Legal Liability 8 17. Attorneys' Fees 9 18. Miscellaneous Obligations of Contractor 9 19. Fee for Exclusive Privilege 9 20. Billing 10 21. Assignability of Agreement 10 22. Involuntary Assignment 11 23. Notice Provisions 11 24. Recycling 11 25. Waste to Energy Program 12 26. Hazardous Waste 13 27. Disposal of Garbage 13 i Section Page 28. Annexation and Change of Zone Boundaries 14 29. Takeover of Franchise Rights by Other Public 15 Entity 30. Affiliated Entities 15 31. Breach and Termination 16 32. Emergency 17 33. District Code 18 34. Term of the Agreement 18 35. Contest of Agreement's Term by the Parties 19 36. Severability 19 37. Terms of Agreement Bargained For 19 38. This Agreement Shall Supersede Prior Agreements 19 ii i (e) "Garbage": (1) animal , fruit and vegetable refuse; (2) offal ; (3) leaves and cuttings, trimmings from trees, shrubs and grass; (4) inorganic refuse and rubbish; (5) anything thrown away as worthless; provided, however, that garbage shall not be defined as or include Hazardous Waste, Septage or Industrial Waste. (f) "Hazardous Waste": A waste, or combination of wastes, which because of its quantity, concentration, or physical , chemical , or infectious characteristics may either: (1) cause, or significantly contribute to an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; or (2) pose a substantial present or potential hazard to human health or environment when improperly treated, stored, transported, or disposed of, or otherwise managed. ( This definition will include, but not be limited to, hazardous waste as defined by the State of California and its agencies, or the United States or its agencies. (g) "Industrial Waste": Non-sewered liquid waste and solid waste produced as by-products of industrial processes, or other refuse produced or accumulated as a result of industrial processes, including waste produced by the District and other public entities as a result of treatment or other processes undertaken in providing public utility services. (h) "Septage": Non-sewered liquid or semi-liquid waste which may be trucked to the District or other treatment facility for disposal, to include, but not limited to, waste from residential septic tanks, commercial grease cleanouts, and industrial waste holding facilities. ( i) "Waste stream": The garbage to be collected under this Agreement from the time of the collection by the Contractor to the disposal of same by the Contractor. (j) "Zone": The geographic area generally described in Exhibit A to this Agreement, which exhibit is attached hereto and Incorporated herein by reference, and more particularly as set forth in the six hundred (600) scale maps maintained and available for inspection at the office of the Secretary of the District, excepting therefrom any geographic area which is within the boundaries of another jurisdiction, including any military base, which is exercising its authority to -2- regulate garbage collection. Said six hundred (600) scale maps shall reflect changes of boundaries of the Zone in such a manner as to identify each alteration to the Zone and the effective date thereof. 2. EXCLUSIVE PRIVILEGE The District, by this Agreement, grants to the Contractor for the term as set forth in paragraph 34 of this Agreement, unless terminated in accordance with this Agreement, the exclusive privilege and duty to collect, remove and dispose of all garbage as said term is defined in this Agreement within the Zone. This exclusive privilege to collect, remove, and dispose of garbage is only qualified as set forth in this Agreement. The Zone may be expanded or reduced in size (a) by mutual agreement of the parties; or (b) as provided in paragraphs 28 and 29 of this Agreement. 3. INTENT TO REGULATE ALL GARBAGE COLLECTION, REMOVAL OR DISPOSAL: The parties hereto agree that the District currently has jurisdiction to regulate the collection, removal and disposal of all garbage in the Zone. The parties further agree that by the terms of this Agreement the District has exercised its jurisdiction and is regulating the collection, removal and disposal of all garbage in the Zone. This Agreement does not regulate the collection, removal and disposal of industrial waste, hazardous waste or septage. Whether a particular garbage collection activity is regulated by this Agreement or not, is within the sole determination of the District. If there is any question as to whether the garbage collection activity is regulated or unregulated, it shall be the responsibility of the Contractor to inquire of the District and thereafter provide such information as the District may require to enable the District to provide Contractor with a formal written opinion as to whether the garbage collection activity is regulated or unregulated. 4. EXCEPTIONS TO EXCLUSIVE PRIVILEGE: The exclusive privilege granted by this Agreement shall not apply if: (a) The person or entity generating garbage personally collects, removes and disposes of such in a clean and sanitary manner in conformance with all applicable laws and regulations, or (b) The person or entity generating inorganic refuse or rubbish contacts the Contractor to arrange for the collection, removal and disposal of such and the Contractor declines to do so or is unable to do so in a.timely manner, or (c) The person generating the garbage contracts with another to remove and dispose of ( i) inorganic refuse or rubbish, or (ii) leaves, cuttings, trimmings from trees, shrubs or grass by truck or other -3- ` vehicular means, when such removal is incidental to other contract work being performed. Nothing in this paragraph shall be construed to eliminate or qualify the exclusive privilege of the Contractor to provide drop boxes and/or bulk collection containers for collection of garbage within the Zone. 5. RIGHT TO SELL VALUABLE COMMODITY: This Agreement is not intended to and does not affect or limit the right of any person to sell any valuable commodity to the Contractor or to any other person lawfully doing business within the Zone at prices agreed upon by the parties to such transaction, provided that the valuable commodity is separated at the source by the generator and that the person purchasing the valuable commodity does not collect and dispose of other garbage. 6. RATES: Contractor shall perform the responsibilities and duties herein agreed in the Zone in accordance with and in consideration of the reasonable rates fixed by the District from time to time. The statement that the actions in paragraphs 12, 24, 25, and 27 may be directed "at no cost to the District" shall not be construed to mean that the Contractor is prohibited, subject to the District's approval, from passing on its costs of taking those actions to- the Customers. It is the intent of the parties that the rates fixed shall be in conformity with applicable law. 7. DUTY OF CONTRACTOR TO MAINTAIN RECORDS -- RIGHT OF DISTRICT TO EXAMINE CONTRACTOR'S RECORDS: Contractor shall maintain a proper set of books and records in accordance with generally accepted accounting principles, accurately reflecting the business done by it under this Agreement. Contractor shall further maintain records as to its total number of customers, said records to detail the types of customers and such other operating statistics in such manner and with such detail as the District may require. The Contractor shall, by March 31 of each year, submit to the District an operating statement for Zone 3 for the most recent reporting year, prepared on a compiled basis by a Certified Public Accountant which will comply with the following requirements: (a) A statement by the Certified Public Accountant that the operating statement was prepared on a compiled basis, as defined in American Institute of Certified Public Accountants' Statement on Standards for Accounting and Review Services No. 1, will be affixed to the operating statement. (b) The operating statement will be based on revenue and expense accounts which will be established to determine the results of such operation as a separate division within the Contractor's single entity. -4- (c) The operating statement will present revenues by category of regulated service, and expenses will be reported in accordance with the formats developed in the Price Waterhouse report dated February 70 1983. (d) Customary footnote disclosure should be provided with the statement of operations, and should include an explanation of the allocation bases used for all expense accounts. In the event the Contractor is required by another public entity or regulator to provide audited financial statements, the Contractor will transmit a copy of the audited financial statements to the District and thereafter submit such audited financial statements to the District by March 31 each year, in lieu of the compiled operating statement. The Contractor shall further furnish to the District a report of its total number of customers within the Zone by types .of customers and such other operating statistics in such manner and with such detail as the District may request. The District may, at its own expense, at any time during the term of this Agreement, examine the books and records of the Contractor, or have the books and records of the Contractor examined by a person appointed for that purpose by the District. District shall give thirty (30) days written notice to the Contractor in advance of such examination date. The information required by this paragraph shall pertain to lie Contractor's operations in the Zone. Nothing contained herein shall require the Contractor to provide the District with information pertaining to the Contractor's operations which are not regulated by the District; provided that the District's agent may examine the Contractor's books, records and financial statements pertaining to operations not regulated by the District for the sole purpose of gathering information necessary to allow the agent to ascertain and communicate to the District whether income, expenses, assets and liabilities are reasonably and consistently allocated among operations regulated by the District and operations not regulated by the District. As used in this paragraph "District Agent" shall mean an independent Certified Public Accountant, as agreed upon by the parties, or, failing agreement, appointed by the Presiding Judge of the Contra Costa County Superior Court. Notwithstanding this requirement to use an independent Certified Public Accountant as the "District Agent," the District may use District employees, or any other person designated by the District, to examine records of the Contractor otherwise available to other public entities. Information gained from such examination of records pertaining to operations not regulated by the District shall be treated by the District and its agents as confidential information. However, nothing in this paragraph will prevent the District allowing public access to District records as provided for under the California Government Code, and in the event any dispute arises as to the public access to information provided by the Contractor under the terms of this Agreement, the District shall in its discretion provide public access to said information according to law or tender the defense of any claims made against the District concerning said information to the Contractor. t -5- 8. APPLICATIONS BY CONTRACTOR FOR RATE INCREASE: Any and all requests for rate increases, excepting those provided for under paragraphs 12, 24, 25, and 27 of this Agreement, may be made no more frequently than on an annual basis. Any such request for rate increase by the Contractor, excepting those provided for in paragraphs 12, 24, 25, and 27 of this Agreement, shall be submitted together with the compiled operating statement required under paragraph 7 of this Agreement by March 31 of that year. Approval of the rate increase, or other action by the Board on the application, shall occur only after the District- has had sufficient time to review the application and financial statement, and in no event will a rate increase take effect before July 1 of the year in question. Rate increase applications submitted by Contractor will be prepared using such formats, including such operating statistics as the District may prescribe from time to time. Any rate increase application will be accompanied by the compiled operating statement for the most recent reporting year preceding the requested effective date of rate increase. In the event the Contractor is required to make . changes in its operation pursuant to the conditions set forth in paragraphs 12, 24, 25, and 27 of this Agreement, the Contractor may petition the Board using the format mentioned herein, at any time during the calendar year. The District staff shall calendar the petition for rate increase within ( seventy-five (75) days of receipt of an extraordinary petition presented pursuant to paragraphs 12, 24, 25, and 27 of this Agreement. 9. OPERATION BY CONTRACTOR: Contractor shall furnish all necessary equipment for the operation of refuse collection service in the Zone and shall maintain such equipment in a sanitary condition at all times. Contractor shall furnish all necessary labor in connection with the operation of a refuse collection service in the Zone. The Contractor, in performance hereof, shall use covered (by tarpaulin or otherwise) water-tight bodied motor trucks with truck bodies constructed of sufficient strength to withstand a fire within, without endangering adjacent property. The trucks, drop boxes, bins, or similar types of equipment shall be kept neat and clean and in good repair. The Contractor shall paint its name, permit number and telephone number on the side of each truck (in letters at least four (4) inches high) and each drop box, bin or similar type equipment owned or leased by the Contractor. 10. COMPLIANCE WITH FEDERAL, STATE AND LOCAL ORDINANCES: The Contractor shall comply with all applicable ordinances and rules and regulations that are now in effect or may be promulgated or amended from time to time by the Government of the United States, the State of i California, the County of Contra Costa, the District and any other agency now authorized or which may be authorized in the future to regulate the services to be performed herein regarding the collection, removal and disposal of garbage. -6- 11. LIMITATION ON TIME OF COLLECTION: The Contractor shall make a systematic collection of garbage from each place where collection is made in a manner that the person receiving the service can predict the day on which collection will be made. Contractor shall not collect garbage from an inhabited dwelling or dwelling unit between the hours of 7 p.m. and 4 a.m. 12. DISTRICT MAY REQUIRE EFFICIENCIES IN OPERATION: The District may from time to time at Its discretion and at Its expense, examine the Contractor►s operation in order to insure that the Contractor is operating at a satisfactory level of efficiency. The Contractor agrees to cooperate in any such examination and shall provide for inspection to the District or its designated representatives, at the Contractor's principal place of business, such information as the District may require, including but not limited to, such things as collection routes and equipment records. In addition, the District may require the Contractor to evaluate alternative methods of garbage collection for the purpose of improved efficiencies and to develop and submit a plan to implement the efficiencies within one hundred and eighty (180) days of notice to the Contractor, The District can require the Contractor to Implement the l efficiencies within one (1) year of approval of the Contractor's plan, unless the Contractor can demonstrate that one (1) year is unreasonable. Should the District commence such a program as outlined in this paragraph, Contractor agrees to not only do those things specified herein, but also to act at the direction of the District on other matters that may be necessary for the success and efficiency of such a project(s). 13. SALVAGE: District shall be entitled to the right of salvage at the expense of the District from the garbage collected pursuant to this Agreement, but at its sole discretion may delegate this right to, or waive the same In favor of, the Contractor. District has temporarily waived its right of salvage and has delegated such to Contractor; and such waiver and delegation shall continue until notice in writing by the District to the contrary is given. In the event the District independently wishes to exercise its right to salvage, the District shall give in writing to the Contractor notice of its intent and said right shall commence and accrue W to the District ninety (90) days from the date of said notice. The salvage rights set forth in this paragraph specifically are intended to refer to salvage operations once the garbage is in the waste stream. This paragraph should not be read to be in conflict with the rights to recycle set forth in paragraph 24. 14. FAITHFUL PERFORMANCE BOND: i The Contractor shall submit to the District simultaneously with the execution of this Agreement a corporate surety bond in the amount of -7- $50,000.00. The bond shall be executed by a surety company licensed to do business in the State of California and acceptable to the District. The bond shall be approved by the District and shall be payable to the District. The condition of the bond shall be that the Contractor will faithfully perform the duties imposed by ordinance, this Agreement and the rules and regulations of the District. Any action by the District to proceed against the Bond shall not limit or affect the right of the District to use other remedies available to the District under the Agreement, or in courts of law or equity. Notwithstanding the foregoing, in lieu of the corporate surety bond, Contractor may provide to District a letter of credit or cash bond in a form satisfactory to the District. 15. INSURANCE: The Contractor shall maintain and continue in force during the term of this Agreement, public liability insurance, property damage insurance and workers' compensation insurance in amounts as shall be annually set by the General Manager-Chief Engineer after discussion with the Contractor. The Contractor has the right within ten (10) days' notice of the insurance coverage amounts, to appeal the decision of the General Manager-Chief Engineer, to the Board of Directors. Such insurance shall be obtained from a company or companies licensed to do business in the State of California and acceptable to the District. District shall be named as an additional insured on the public liability and property damage policies and each policy, including workers' compensation, shall contain a clause providing that the insurer will not cancel or decrease the insurance coverage without first giving thirty (30) days' notice in writing to the District. A certificate of Insurance shall be provided to the District any time the Contractor alters a policy or changes carriers. A copy of the certificate for each policy, or at the District's request, a copy of each policy shall be provided to the District by March 31 of each year. Failure of the Contractor to maintain Insurance In the manner and amount stated herein and as directed by the General Manager-Chief Engineer, subject to the approval of the Board, will constitute a breach of this Agreement. 16. LEGAL LIABILITY: All work and performance covered by this Agreement shall be at the risk of the Contractor. Contractor agrees to save, indemnify and keep harmless the District, Its officers, employees, agents and assigns against any and all liability, claims, ,judgments, or demands, including demands arising from injuries or deaths of persons and damage to property, arising directly or indirectly out of the obligations here undertaken or out of the operations conducted by the Contractor, save and except claims or litigation arising through the sole negligence or willful misconduct of the District, and will make good to and reimburse District for any expenditures, including reasonable attorneys' fees, that the District may make by reason of such matters and, if requested by District shall defend any suit at the sole cost and expense of Contractor. -8- Upon request by the District, the Contractor shall appear for and defend the District in any action which challenges the validity of this Agreement or the procedure by which this Agreement was entered into, or the validity of any District ordinance which authorizes District to enter into this Agreement. Defense of the District shall be provided by counsel satisfactory to the District. All costs of litigation including attorneys' fees, and, to the extent permitted by law, any money Judgment entered against District, its Board members, officers or employees or agents, shall be borne by the Contractor. In each case the District shall have the sole and final authority to determine whether such costs and/or Judgment be chargeable as an operating expense or chargeable against Contractor's profits. Should any party successfully challenge the validity of this Agreement or the procedure by which this Agreement was entered into or the validity of any District ordinance which authorizes the District to enter into this Agreement, then in such case the Contractor shall have no cause of action for damages or any other relief against the District as a result of such successful challenge. 17. ATTORNEYSt FEES: In the event of litigation between the parties arising hereunder, the prevailing party shall recover its reasonable costs of litigation, including attorneys' fees and costs as determined by the Court. 18. MISCELLANEOUS OBLIGATIONS OF CONTRACTOR: The Contractor shall maintain an office with adequate telephone service within the District, and shall keep the office open during usual business hours for the transaction of business with its Customers and the public. No less than once every twenty-four (24) months, and each time the Contractor requests a rate increase, the Contractor shall notify each Customer with printed information setting forth the rates, days of collections, Contractor's complaint procedures, and the amount and manner of refuse to be collected. The Contractor shall consult with the General Manager-Chief Engineer, or his designee, to determine the appropriate manner of notifying each Customer. The Contractor shall provide three additional all-purpose pickups per year not to exceed two cubic yards per residential unit in the residential areas of the Zone. The dates for said additional pickups may be set by the Contractor, however it is the intent of this Agreement that they shall be as evenly spaced throughout the year as is practicable and that the Contractor will provide notice to the Customers of said pickup dates. 19. FEE FOR EXCLUSIVE PRIVILEGE: �. The Contractor shall pay to the District for the privilege granted by this Agreement an annual fee fixed by the District which is reasonably calculated to reimburse the District for its direct costs in administering this Agreement, including, but not limited to, outside professional fees incurred by the District, plus a reasonable allowance for . overhead of the District as said overhead relates to garbage franchising; which sums shall be fixed by the District and paid annually In advance by the contractors, in proportion to the number of customers served by each franchised contractor. Amounts due each year shall be paid in advance within thirty (30) days after July 1 of each fiscal year following the effective date of this Agreement or within thirty (30) days after the District gives notice of the amount of the annual fee, whichever comes later. The fee for the fiscal year beginning July 1, 1985, is hereby fixed at $4,665, and has been paid. The last payment pursuant to this paragraph shall be prorated from the beginning of the fiscal year in which this Agreement ends to the date this Agreement ends. 20. BILLING: The Contractor may bill its Customers in advance or in arrears. Bills in advance shall be due and payable thirty (30) days after the beginning of the billing period. The billing periods for advance billing shall be at least quarterly unless the District approves a less frequent billing. Contractor agrees not to discontinue service to a Customer until a Customer's account billed in advance has been delinquent for a period of at least sixty (60) days, and notice of the termination is provided to the Customer thirty (30) days prior to the termination. Where the Contractor bills in arrears, the bill shall be due and payable upon presentation and the Contractor agrees not to terminate service until the Customer's account billed in arrears has been delinquent for thirty (30) days. Full payment for debris boxes may be required by the Contractor prior to delivery of debris box to Customer. 21. ASSIGNABILITY OF AGREEW NT: The Contractor shall not sell, assign, or transfer this Agreement or any part hereof, including probate proceedings, to a person other than David Olney, without the written consent of the District. Neither this Agreement nor any part hereof, nor any obligation or service to be performed hereunder shall be assigned or subcontracted without written consent of District. The term assignment shall include any dissolution; merger, consolidation or other reorganization of the Contractor, which results in change of control of the Contractor, or the sale or other transfer by probate proceeding or otherwise of a controlling percentage of the Contractor's capital stock to a person not a shareholder on the date of the execution of this Agreement. In the event the Contractor herein attempts to assign or subcontract this Agreement or any part hereof or any obligation hereunder, the District shall , have the right to elect to terminate forthwith, without suit or other proceeding. -10- t The District may, following a properly noticed public hearing, assign or transfer this Agreement, or any part hereof, without the consent of the Contractor to any legally authorized public entity, including, but not limited to, the County of Contra Costa or any Joint powers authority created pursuant to Chapter 5, Division 7, Title I of the California Government Code. 22. INVOLUNTARY ASSIGNMENT: No interest of Contractor in this Agreement shall be assignable by operation of law. Each or any of the following acts should be considered an involuntary assignment providing the District with the right to elect to terminate the Agreement forthwith, without suit or other proceeding: (1) If the Contractor is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors or institutes a proceeding under the Bankruptcy Act in which the Contractor is the bankrupt, (2) If Writ of Attachment or Execution is levied on this Agreement, (3) If in any proceeding to which the Contractor is a party a Receiver is appointed with authority to take possession of the Contractor's property, (4) In the event of a probate proceeding where the rights of the Contractor under the Agreement would pass to another individual or other individuals. 23. NOTICE PROVISIONS: Any notice required or permitted under this Agreement shall be in writing and shall be deemed to have been given if delivered personally or ten (10) days after posted by certified mail , return receipt requested, addressed as appropriate, either to the Contractor at: 441 No. Buchanan Circle, Pacheco, California 94553, or to the District at 5019 Imhoff Place, Martinez, California 94553, Attention: General Manager-Chief Engineer. 24. RECYCLING: District is currently studying refuse recycling as a means to conserve resources, energy, money and to further enhance the environment. The parties hereto recognize that refuse recycling, use of waste or garbage products and improvements in garbage collecting efficiencies are changing and developing technologies. Notwithstanding anything in this Agreement to the contrary, at any time during the term of this Agreement the District may require the Contractor to prepare and submit a plan to provide refuse recycling in the Zone. The Contractor shall provide such a recycling plan within 180 days of receiving the written notice requiring preparation of a recovery plan. The District shall review and comment upon the proposed recycling plan within sixty (60) days. The ` Contractor shall have thirty (30) days from receipt of District's comments to modify the Contractor's proposed plan in order to make said -11- Qd � J ' proposed plan acceptable to the District. If the plan is approved by the District Board of Directors, the Contractor shall implement the plan within ninety (90) days unless that is impracticable under the circumstances. . Implementation of a refuse recycling plan will be at no cost to the District.. The District may require, as an element of a program to recycle refuse among other things, that the Contractor undertake curbside or home pickup of recyclable material , and segregate the garbage into elements suitable for recycling and elements not so suited. The District may further require that the Contractor deliver the segregated recyclable refuse to locations or sites selected by the District. Contractor agrees to not only do those things specified herein, but also to act at the direction of the District on other matters that may be necessary for the success and efficiency of a recycling project. The District shall give reasonable advance notice to Contractor of changes in the Contractor's operations which may, in the District's discretion, become necessary due to the implementation of a recycling program. In the event the Contractor fails to submit or implement a plan in a timely manner as set forth in this section of the Agreement, or fails to reasonably act at the direction of District on matters relating to recycling, any and all such failures will be treated as a breach of this Agreement and the District shall have the right to elect to terminate forthwith, without suit or other proceeding. 25. WASTE TO ENERGY PROGRAM: The District may evaluate the feasibility of a waste to energy ` project as a means to conserve resources, energy and further enhance the ` environment. The parties hereto recognize the technologies in regard to production of energy from waste refuse are changing and developing. The i District may, at any time during the term of this Agreement, undertake a waste to energy project singularly or in conjunction with another entity. In the event the District undertakes such a waste to energy project, or determines that the waste stream under this Agreement should be diverted to another entity's waste to energy facility, the District shall give thirty-six (36) months' notice to the Contractor of its intent to commence or participate in such a program. At the expiration of the thirty-six (36) months, the Contractor shall implement the changes in the Contractor's operations which may become necessary due to the waste to energy project. The District may require, as an element of the waste to energy project, that the Contractor deliver the garbage collected under this Agreement, or portion thereof, as directed by the District, to locations or sites selected by the District for waste to energy production. The Contractor agrees also to act at the direction of the District on other matters that may be necessary for the success and efficiency of a waste to energy project. In this regard, the District shall give reasonable advance . notice to the Contractor of changes in the Contractor's operations which may, in the District's discretion, become necessary due to the implementation of the waste to energy project. -12- The Contractor shall have the right and duty to collect and dispose of nonhazardous waste or refuse produced as a result of operations of a District owned or controlled waste to energy facility, including, but not limited to, ash and other solid noncombustible material . The Contractor shall collect and dispose of a share of the refuse produced by the facility and said share shall be in proportion to the Contractor's share of the total garbage delivered to the facility. In the event that District directs the Contractor to deliver the garbage to a publicly-owned waste to energy facility, not controlled by the District, the District will make reasonable effort to secure for the Contractor the right to collect any waste or refuse produced, or at least a proportional share thereof. The District may, in its discretion, undertake a waste to energy project in conjunction with a recycling program or other garbage program as set forth in paragraphs 13 and 24 of this Agreement. Nothing in this paragraph shall be read to be in conflict with the provisions set forth In paragraphs 13 and 24. 26. HAZARDOUS WASTE: The parties hereto recognize that federal, state and local agencies with responsibility for the defining of hazardous waste and for regulating the collection, hauling or disposing of such substances, are continually providing new definitions, tests and regulations concerning these substances. Under this Agreement, it is the Contractor's responsibility to keep current with the regulations and tests on such substances and to identify such substances and to comply with all federal, state and local regulations concerning such substances. Contractor agrees to provide to the District upon its request the Contractor's program for identifying hazardous waste and complying with all federal, state and local statutes and regulations dealing with hazardous waste. The Contractor shall make every reasonable effort to prohibit the collection and the disposal of hazardous waste in any manner inconsistent with applicable law. 27. DISPOSAL OF GARBAGE: Throughout the term of the Agreement, unless District gives notice as provided for' herein, it shall be the Contractor's sole responsibility and duty to dispose of the garbage and waste and other material collected by virtue of this Agreement, including any extension granted by the Board, in a safe manner in compliance with all federal, state and local regulations. (a) Prior to April 1, 1991, the Contractor must provide the District with conclusive proof that: (1) the Contractor has ownership i of, or a legally binding right to use, a properly approved and permitted disposal site(s); (2) that said disposal site(s) has sufficient capacity available to the Contractor to provide for disposal of all garbage to be -13- collected under this Agreement; (3) and that said site(s) provides an economically satisfactory disposal alternative. Proof of each of these conditions shall be provided in writing to the satisfaction of the District Board of Directors. In the event said conditions have not been met to the Board's satisfaction by April 1, 1991, the District shall have the right to declare a breach or default of said Agreement and may proceed, pursuant to paragraph 31 of this Agreement, to terminate this Agreement. Subject to the provisions set forth hereinafter in subsection (b), the District, in its sole discretion, may direct the garbage collected under this Agreement to be delivered to any site of . its choosing. This shall include the right of the District to direct the disposal, at no cost to the District, of all garbage collected by virtue of this Agreement, to a transfer station or stations, disposal site or sites selected by the District, including disposal sites that may be owned and operated by the District, provided that the disposal of garbage at such transfer station(s) or site(s) is authorized by law. Contractor agrees that the District may charge the Contractor a reasonable fee for the disposal of garbage collected by virtue of this Agreement, if such garbage is disposed of at the site(s) owned by or controlled by the District and said charge shall be passed on to the Customer by means of rates fixed by the District. (b) District agrees in the -event that the Contractor becomes owner of or interest holder in a privately owned disposal site, other than the current ACME Landfill Corporation disposal site in Martinez, and secondly, that the Contractor tenders to the District all rights and legal authority to regulate rates and charges for use of such site by all persons or entities, including but not limited to site inspections and audits, the District will direct all garbage collected under this Agreement to be delivered to said privately owned disposal site for the term of the Agreement, including any extensions which may be granted. The District may thereafter, in its discretion, assume the rate setting authority or any portion thereof. This Agreement on the part of the District is conditioned upon the privately owned disposal site being properly approved and permitted by the necessary public boards and entities. The District in all instances retains the right to direct the garbage collected under this Agreement to a transfer station prior to the delivery to a privately owned disposal site. Nothing in this subsection shall be construed to be in conflict with or eliminate the rights and obligations provided for in paragraphs 24 and 25. 28. ANNEXATION AND CHANGE OF ZONE BOUNDARIES: The District agrees to give notice to the Contractor by April 1 of the next calendar year of any geographic area which has been annexed to or deannexed from the District during the preceding calendar year or which has been included in, or excluded from, the Zone. Such notice shall specifically describe the changed boundaries of the Zone. If such notice is given to the Contractor, all of the provisions of this Agreement shall apply to the collection, removal , and disposal of garbage within such changed boundaries of the Zone beginning on July 1 of the -14- calendar year following the preceding calendar year during which such annexation or deannexation occurred. The Contractor shall give notice to the District by April 1 of the next calendar year of any geographic area in the Zone or immediately contiguous to the Zone, in which the Contractor has commenced service within the preceding year, notwithstanding whether the Contractor deems that area to be regulated or unregulated. The Contractor realizes that the District and Zone boundaries may be altered by virtue of actions taken by the Contra Costa County Local Agency Formation Commission (LAFCO). The Contractor agrees that should a municipal corporation, which at the date of the signing of this Agreement exercises its lawful authority to franchise garbage collection, lawfully annex territory which is within the Zone, the District may make such alterations to the Zone as the annexation necessitates. Should the District boundaries be amended so as to change the boundaries of the Zone, the Contractor agrees that it will abide by whatever changes in the Zone which become necessary due to changes in the District boundaries made by the Local Agency Formation Commission. The Contractor agrees that the District Board of Directors may make such alterations to the Zone as are necessitated by such Local Agency Formation Commission actions and shall have no right or claim to damages or other relief against the , District for such alterations to the Zone. The District shall provide notice to the Contractor of all petitions or resolutions sent by the District to LAFCO for annexation or deannexations which may directly affect the territories included in the Zone. 29. TAKEOVER OF FRANCHISE RIGHTS BY OTHER PUBLIC ENTITY: In the event that the County, or a municipal corporation, which at the date of the signing of this Agreement has boundaries within the Zone which areas are franchised under this Agreement, takes action, after such date of signing, to assume the powers and responsibilities of the franchisor in relation to garbage collection and disposal in those areas within the Zone, the rights of the respective parties in regard to this Agreement shall be set forth in Health and Safety Code 4270 et seq. and other applicable law of the State of California. Notwithstanding any lawful action by another public entity to take over the right to franchise solid waste handling, collection and disposal , the District shall retain the right at all times during the term of this Agreement, including any extensions granted by the District Board, to direct the disposition of. all garbage collected within the Zone. Contractor agrees, notwithstanding any actions taken by another public entity in regard to assuming the role of the solid waste franchisor, to deliver the garbage collected under this Agreement to the location or locations designated by the District during the term of this Agreement, including any extensions granted by the District Board. 30. AFFILIATED ENTITIES: The Contractor shall provide information necessary to satisfy the District that the charges made by any affiliated entity are reasonable. -15- L "Affiliated entity" shall be defined, for purposes of this paragraph, as ( any entity which provides products or services to the Contractor and in which the Contractor owns a ten percent <10%> or greater interest. The District shall have the right to inspect the financial records of any affiliated entity in which the Contractor owns a ,majority interest. For purposes of this paragraph the term "Contractor" shall include the Contractor, if an individual, and all members of his or her immediate family; or if a corporation, the controlling shareholder and the controlling shareholder's immediate family members. For the purpose of this paragraph, "Immediate Family" includes spouses, children, and relatives of the first degree of sanguinity. 31. BREACH AND TERMINATION: The General Manager-Chief Engineer of the District shall have authority, subject to review by the Board of Directors of the District upon appeal, to determine whether a breach of any provision of this Agreement by the Contractor has occurred. Any waiver or breach shall not be deemed to be a waiver of any subsequent breach or to be construed as approval of a course of conduct. In the event that a breach occurs, the District shall give the Contractor notice of the breach, in writing, setting forth the breach or default. The Contractor shall have a reasonable period to cure the noticed breach, said period not to exceed sixty (60) days. In the event the breach or default is cured to the satisfaction of the General Manager-Chief Engineer of the District within the period of time allotted, the breach shall not be deemed a material ( breach. In the event that the General Manager-Chief Engineer determines that the Contractor has failed to satisfactorily cure the breach or default within the period of time allotted, the General Manager-Chief Engineer may determine such breach or default to be material. Multiple or repeated breaches, or a pattern of breaches and subsequent attempts to cure said breaches by Contractor shall provide an adequate basis for the General Manager-Chief Engineer, in his discretion, to declare any subsequent breach to be material, notwithstanding whether or not that breach is ultimately cured by the Contractor. If such a determination of material breach is made, the General Manager-Chief Engineer's determination shall be automatically appealed to the Board for final action. A material breach shall be cause for termination of this Agreement by the Board of Directors of the District. In the event of a termination prior to the natural expiration of the term of this Agreement, the District shall have the right to temporarily assume the obligations of the Contractor and shall therefor have the right to forthwith take possession of all trucks and other equipment of the Contractor and exercise the Contractor's right to enter and use any disposal facilities for the purpose of performing the services agreed to be performed by the Contractor herein until such time as the District can make other arrangements for the performance of said services. However, such temporary assumption of Contractor's obligations under the Agreement shall not be continued by the District for a period exceeding twelve (12) months from the date such operations are undertaken by the District. -16- t Lei '5H, During any period in which District has temporarily assumed the obligations of Contractor under this Agreement, District shall be entitled to the gross revenue attributable to operations during such period and shall pay therefrom only those costs and expenses applicable or allocable to said period, including the reasonable rental value of the trucks and equipment to be paid to the Contractor. The excess, if any, of revenue over applicable or allocable costs and expenses during such period shall be deposited with the District funds to the credit of the operation and maintenance account. The loss, if any, during such period shall be a charge against Contractor, and shall be paid to the District by the Contractor upon demand. Final adjustment and allocation of gross revenue, costs, and expenses to the period during which the District temporarily assumed the obligations of Contractor shall be determined by an audit by a Certified Public Accountant and prepared in report form with his unqualified opinion annexed thereto. District shall indemnify Contractor against and hold it harmless from, any and all liability claims, Judgments or demands, including demands arising from injuries or deaths of persons and damage to property, arising directly or indirectly out of the operations and obligations of Contractor which District assumes pursuant to the provisions of this paragraph 31, save and except claims or litigation arising through the sole negligence or willful misconduct of Contractor and will make good to and reimburse Contractor for any expenditures, Including reasonable attorneys' fees, that the Contractor may make by reason of such matters and, if requested by Contractor, shall defend any suit at the sole cost and expense' of District. Nothing in this Agreement shall prevent the District during any period in which District temporarily assumes the obligations of the Contractor under this Agreement, from employing persons who were employed by the Contractor for the collection of garbage under this Agreement. Upon the occurrence of said breach and the declaration of such by the Board of. Directors of the District, this Agreement and the franchise granted thereunder shall be of no further force and effect, excepting these provisions concerning District's right to temporarily assume the Contractor's obligations and to use Contractor's facilities upon early termination as provided herein. The District then shall be free to enter Into whatever other arrangements are deemed justified and necessary for the collection, removal and disposal of garbage within the Zone. Failure by the District to provide the Contractor with the exclusive franchise to collect and dispose of garbage within the Zone, as defined in this Agreement, and except as set forth in paragraph 32, shall constitute a material breach of this Agreement which will allow the Contractor, in its discretion, to terminate the Agreement and be relieved of all obligations and duties hereunder. Notice of termination by the. Contractor must be provided to the District one (1) year prior to cessation of the duties and responsibilities of the Contractor hereunder. 32. EWMENCY: Notwithstanding the Contractor's exclusive franchise rights set forth in paragraph 31, in the event of an emergency due to natural -17- disaster or labor strike which interrupts the collection of garbage by the Contractor, the Board of Directors of the District shall have the right to declare a temporary suspension of this Agreement for the reasonable duration of the emergency and until such time as the District determines that the Contractor is able to reassume all obligations under this Agreement. Should Contractor fail to demonstrate to the satisfaction of the Board of Directors of the District that required services can be resumed by Contractor prior to the expiration of a six (6) month period, this Agreement may be terminated at the direction of the Board of Directors. An emergency or a declaration terminating the Agreement may be declared by a resolution adopted by a four-fifths <4/5> vote by the District's Board of Directors. 33. DISTRICT CODE: This Agreement is entered into under and by virtue of the authority of and pursuant to Title 8 of the Code of the District and in accordance with the provisions thereof, and any subsequent amendment thereto, which are hereby incorporated in this Agreement by reference. 34. TERM OF THE AGREEMENT: The term of this Agreement and the exclusive franchise granted hereunder shall be for a period. of ten (10) years from April 1, 1986, to March 31, 1996, subject to the provisions of paragraphs 27 and 31 of this Agreement. In the event that the three (3) conditions set forth in paragraph 27(a) have been met to the satisfaction of the Board by April 10 1991, and the further event that the Board thereafter determines that the Contractor has provided a satisfactory level of service at rates reasonable to the ratepayers, the Board may, in its discretion, extend the term of this Agreement for a period not to exceed five (5) additional years, or for a total term not to exceed fifteen (15) years. If the Board wishes to take action concerning this option to extend, such Board action shall be taken and notice given to the Contractor of such action prior to April 1, 1994. The Board has the option to: (a) Extend the franchise for a period up to five (5) years under the terms of this Agreement, or; (b) Extend the franchise for a period of up to five (5) years, under the terms of this Agreement including any modifications thereof as may be required in the discretion of the Board, or; (c) Refuse to extend the term beyond March 31, 1996. Failure of the Board to take action with regard to the extension of term under this paragraph by April 1, 1994 shall constitute a rejection by the District of the option to extend and the Agreement shall terminate in due course on March 31, 1996. -18- All modifications of the Agreement which may become a condition of an extension of the term shall be in writing and notice of such modification shall be served upon the Contractor prior to April 1, 1994. The Contractor shall give notice to the District as to acceptance or rejection of the extension under the terms offered within three (3) months of the date of service of the notice from the Board. Failure of the Contractor to give timely notice will constitute a rejection of the offer to extend. 35. CONTEST OF AGREEMENT' S TERMS BY THE PARTIES: In the event either party to this Agreement attempts to challenge the validity of any portion of this Agreement, such action in attempting to challenge the Agreement shall constitute a material breach of this Agreement and the nonbreaching party shall have the right to elect to terminate forthwith without suit or other proceeding. This paragraph 35 shall not be construed to prevent either party from seeking redress to the courts for the purposes of legal review of administrative procedures in regard to rate setting or District actions taken pursuant to this Agreement, or for the purpose of enforcing the provisions contained in this Agreement. 36. SEVERABILITY: In the event legal action is brought by a person or entity, other than the parties to this Agreement, to challenge, invalidate, contest or set aside any of the provisions of this Agreement, each and every term and condition, and each and every section and paragraph is severable from the remaining terms, conditions, sections, and paragraphs. The Invalidation of any term, condition, section or paragraph as a result of a legal action, brought by a person or entity not a party to this Agreement, shall not affect the validity or enforceability of the remaining provisions. Each of said remaining provisions shall remain in full force and effect. 37. TERMS OF AGREEMENT BARGAINED FOR: All terms, conditions and obligations contained in this Agreement have been bargained for and agreed upon by the parties in good faith. Further, the parties have entered into this Agreement on the advice of counsel . 38. THIS AGREEMENT SHALL SUPERSEDE PRIOR AGREEMENTS: This Agreement shall supersede any and all agreements heretofore entered into by the parties hereto. i -19- A may'�,•�. �v .. _ �._� RFs IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate by its duly authorized officers and representatives as of the date first above written. CENTRAL CONTRA COSTA SANITARY DISTRICT By: Its: President of the Board of Directors By: Its: Sec' t ry of the District Approved as t o'4L/avo/ hm: unsel the gj.s ct PLEASANT HILL BAY SHORE DISPOSAL "-.'Z' / its: 6cJfyfd Approved as to form: Counsel to Pe Contractor Ua -20- NORTH CONCORD/PACHECO/CLYDE SOLID WASTE FRANCHISE AREA SUISUN BAY s (\ m \ITDOtT< 9Qfs mP 2 A PORT CHICAGO r/ �apn mmouro sn "''::£%•£`Si? <:: CLYDE wmr nso PI MURG 3' e MARTINEZ CONCORD •b m Paro / oa LEASANT b HILL CuttoN ialoe o e o Fs P 41, ORINDA ~� ''�, V�ALNUT k CREEK g LAFAYETTE o MOUNT g ,qf °ter m DIABLO o� "fin e n ,•" ° \ ALAMO m« "� m BLACKHAWK MORAGA a a DANVILLE `m+w `mow ° 1 ° q N � oew � iaWe I P F� 2 �+@ MILES Y a e �b DISCLAIMER: This map shows generalized boundaries drawn according to information provided to CCCSD prior to the above date. Discrepancies should be resolved with the appropriate agency and sent to CCCSD to be included in the ne#edition of this map. b RECEIVED April 26, 1996 .®. APR 2 6 1996 To: Clerk of the Board CLERK BOARD OF SUPERVISORS CONTRA COSTA Co. From: Mary Fleming Solid Waste Program Manager Subject: Assignment of Pleasant Hill Bayshore Disposal Franchise Agreement from Central C.C. Sanitary District to County and Pleasant Hill Bayshore Disposal Consent;North Concord, Pacheco, Clyde Enclosed is an original of the Assignment with attachments ( Transitional Agreement Between County of Contra Costa and Central Contra Costa Sanitary District for the Collection of Solid Waste within Certain Unincorporated Areas of the North Concord/Pacheco/Clyde Solid Waste Franchise Area) that was heard by the Board of Supervisors on Aug. 8, 1995 as item SD.11- 3 and 4. Also enclosed is the Transitional Agreement Between County of Contra Costa and Central Contra Costa Sanitary District for the Collection of Solid Waste Within Certain Unincorporated Areas the be Within the Jurisdiction of CCCSWA COMMA MM ° COO& MUMS CONNUM 7V DEVELOO PNCM7 DD EPARMEH7 ASSIGNNIENT OF PLEASANT HELL BAYSHORE DISPOSAL FRANCHISE AGREEMENT FROM CENTRAL CONTRA COSTA SANITARY DISTRICT TO THE COUNTY OF CONTRA COSTA AND CONSENT TO SAID ASSIGNMENT BY PLEASANT HH L BAYSHORE DISPOSAL, INC. WHEREAS, Central Contra Costa Sanitary District (hereinafter "CCCSD") entered into a franchise agreement dated April 1, 1986(hereinafter"PHBS Franchise Agreement")with Boyd Olney, Jr., dba Pleasant Hill Bayshore Disposal (a sole proprietorship) (hereinafter "PHBS"), granting PHBS the exclusive privilege to collect garbage within the CCCSD-PHBS Franchise Area as defined in the Transitional Agreement, infra, for a term of ten (10) years, said PHBS Franchise Agreement expiring March 31, 1996 and attached hereto as part of Exhibit "A." (Exhibit "A" consists of the Transitional Agreement between County of Contra Costa and Central Contra Costa Sanitary District for the Collection of Solid Waste Within Certain Unincorporated Areas of North Concord/Pacheco/Clyde Solid Waste Franchise Area(hereinafter "Transitional Agreement") and the PHBS Franchise Agreement); and WHEREAS, Pleasant Hill Bayshore Disposal, Inc. (hereinafter "PHBS, Inc.) a wholly owned subsidiary of Browning - Ferris Industries of California, Inc., is now operating as the successor in interest to PHBS; WHEREAS, as set forth in the Transitional Agreement, CCCSD and the County of Contra Costa (hereinafter "County") have agreed to an assignment of the PHBS Franchise Agreement from CCCSD to the .County; and WHEREAS, the Board of Directors of CCCSD has, by Resolution No. 95-09$ effective December 21 , 1995, authorized assignment of the PHBS Franchise Agreement from CCCSD I f:\DMS\TCS.DIR\0125410.04 c to the County, provided that certain conditions specified in the Transitional Agreement have been met; and WHEREAS, said conditions specified in the Transitional Agreement have been met; and WHEREAS, PHBS benefits from the assignment of the PHBS Franchise Agreement from CCCSD to the County; and WHEREAS, PHBS consents to the.above assignment pursuant to the terms of the Transitional Agreement and further agrees to waive and release any claim or other legal remedy that it may have against CCCSD and County concerning any issues relating to exclusivity of the Franchise Agreement and/or the jurisdictional boundaries of the franchise for all periods prior to the effective date of assignment of the PHBS Franchise Agreement. WHEREAS, the County has agreed to accept assignment of CCCSD's rights and obligations in the PHBS Franchise Agreement pursuant to the terms of the Transitional Agreement. IT IS HEREBY AGREED AS FOLLOWS: Pursuant to the Transitional Agreement, CCCSD hereby assigns and transfers CCCSD's rights and obligations as set forth in the PHBS Franchise Agreement to the County and its assigns. Such assignment and transfer of the PHBS Franchise Agreement is not intended to relieve the franchisee's successor in interest, PHBS, Inc., to the extent of any obligation set forth in the said franchise agreement to indemnify CCCSD with respect to any occurrences before the date of this Assignment Agreement and upon which any claim against CCCSD is based. 2 F:\DMS\TCS.DIR\0125410.04 The County, in performance of its obligations as set forth in the Transitional Agreement, consents to and hereby accepts assignment of the PHBS Franchise Agreement from CCCSD, subject to the terms and conditions as set forth in the attached Transitional Agreement. PHBS, Inc. consents herein to the assignment of the PHBS Franchise Agreement from CCCSD to the County. PHBS, Inc. further agrees that it will not bring suit or seek any other relief from CCCSD and/or the County concerning any issues relating to the exclusivity of the PHBS Franchise Agreement and/or the jurisdictional boundaries of the franchise for all periods prior to the effective date of assignment of the PHBS Franchise Agreement and does hereby waive and release any such claims PHBS, Inc, may have against CCCSD, and/or the County. The parties each respectively agree to the terms of this Assignment Agreement. However, PHBS, Inc. does not waive any claim under the Franchise Agreement to seek a rate increase if County improves additional franchise fees or takes additional action for which a rate increase may be justified during the remaining term of the Franchise Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement to be executed in triplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: CENTRAL CONTRA COSTA SANITARY DISTRI I' By: Roger . Dol , General Manager Dated: -- �' I b COUNTY OF CONTRA COSTA • U By: Valen 3 f:\DMS\TCS.DIR\0125410.04 Dated: PLEASA HIL B SHO DISPOSAL, INC. By: `dN APPRO ED AS TO FO KE ON L. ALM, General Counsel, Central Contra Costa Sanitary District vi T R J.W. Si't,1 ,tJ,Co s7ty Grun ,I % Deouty._ LILLIAN T. FUJII General Counsel, County of Contra Costa 4 F:\DMS\TCS.DIR\0125410.04 EXHIBIT A TRANSITIONAL AGREEMENT BETWEEN COUNTY OF CONTRA COSTA AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS OF THE NORTH CONCORD/PACHECO/CLYDE SOLID WASTE FRANCHISE AREA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for the transfer of the authority to manage collection, transport and disposal of solid waste, and franchising thereof within certain unincorporated areas within North Concord, Pacheco and Clyde. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection, transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512 and as otherwise provided for in Public Resources Code §§40000, et seq; and F:\DMS\TCS.DIR\0118828.08 B. WHEREAS, CCCSD entered into a franchise agreement with Boyd Olney,Jr. dba Pleasant Hill Bayshore Disposal, a sole proprietorship (hereinafter "PHBS")dated April 1, 1986 granting PHBS the exclusive franchise to collect garbage within the CCCSD-PHBS Franchise Area, defined below, for a term of ten years expiring March 31, 1996 (hereinafter "PHBS Franchise") attached hereto as Exhibit A; and C. WHEREAS, Pleasant Hill Bayshore Disposal, Inc. (hereinafter PHBS, Inc.) a wholly owned subsidiary of Browning-Ferris Industries of California, Inc. is now operating as the successor in interest to PHBS; and D. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and E. WHEREAS, Central Contra Costa Solid Waste Authority (hereinafter "CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised by member agencies of CCCSD and the City of Walnut Creek); and F. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the First Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and G. WHEREAS, the County desires to have clear exclusive authority to franchise or contract for the collection of solid waste within the CCCSD-PHBS Franchise Area; and H. WHEREAS, the County, pursuant to California Government Code §25827, the California Constitution and Public Resources Code §§40,000 eggs,, . has the authority to collect 2 F:\DMS\TCS.DIR\0118828.08 or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and 1. . WHEREAS, the County has requested by actions of the Board of Supervisors on January 24, 1995 and thereafter to become a member of CCCSWA; and J. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and K. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas as well as constituents of the other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and L. WHEREAS, CCCSD is willing to delegate its solid waste collection franchise authority to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegates (in the same manner as the City of Walnut Creek for its City area) to CCCSWA its authority to franchise solid waste collection, transport and disposal in the unincorporated areas within -the jurisdictional boundaries of CCCSWA set forth in the CCCSWA November, 1994 Franchising RFP, exclusive of the unincorporated areas within the CCCSD-PHBS Franchise Area; and M. WHEREAS, County previously indicated its intent to directly assume franchise administration in unincorporated areas within CCCSD on and after the expiration of the CCCSD- PHBS Franchise Agreement; and 3 F:\DMS\TCS.DIR\0118828.08 N. WHEREAS, CCCSD disputes County authority to assume franchise administration in the unincorporated areas within CCCSD. NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: ARTICLE 1 Definitions is 1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at §40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-PHBS Franchise Area "CCCSD-PHBS Franchise Area" means and includes the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the PHBS Franchise Agreement. The franchise area is further described by the 600 scale maps as referenced in the franchise agreement. 1.3 Effective Date "Effective Date" means the first date upon which this agreement is legally effective following all signatures and approvals required by the parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is the agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which 4 F:\DMS\TCS.DIR\0118828.08 agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 1.5 PHBS Franchise Agreement "PHBS Franchise Agreement," for purposes herein, means the "Agreement for Collection, Removal and Disposal of Garbage, Zone 3," dated April 1, 1986, between PHBS and CCCSD. 1.6 RFP, RFP Process "RFP" and "RFP Process" means the process by which CCCSWA solicited proposals for solid waste handling and related AB 939 activities pursuant to a document dated November, 1994, entitled Central Contra Costa Solid Waste Authority Request for Prop sals for Integrated Solid Waste Management Services and the receipt and evaluation process by CCCSWA of responses to the request for proposals. 1.7 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 and regulations promulgated thereunder, as amended from time to time, including green waste and recyclables. (The term "garbage" is the defined term used within the PHBS Franchise Agreement, which term is defined therein at section 1(e) and is synonymous with the term "solid waste" within this agreement.) 5 F:\DMS\TCS.DIR\0118828.08 ARTICLE 2 Obligations of County 21 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this agreement. 22 Except as provided herein below, as between the County and CCCSD, the County shall be responsible to the full extent allowed by law for all solid waste management of the unincorporated areas of the CCCSD-PHBS Franchise Area as of the effective date of this agreement. County shall accept the assignment of the PHBS Franchise Agreement from CCCSD by the date specified in section 3.1. 2.3 Upon the expiration of the current unextended term of the PHBS Franchise Agreement, as between the County and CCCSD, the County shall be responsible, to the full extent allowed by law, for administration of all AB 939 activities including diversion and recycling within the existing CCCSD-PHBS Franchise Area. As of the effective date of this agreement, the County shall assume any and all responsibilities for AB 939 activities, except for those specifically reserved in section 3.2 to CCCSD for the remainder of the PHBS Franchise Agreement term. 6 F:\DMS\TCS.DIR\0118828.08 ARTICLE 3 Obligations of CCCSD 3.1 CCCSD shall file a resolution assigning the PHBS Franchise Agreement for the remainder of its term and thereafter refraining from exercising its franchising authority within the CCCSD-PHBS Franchise Area so long as the County exercises its franchising authority within that area. This assignment and delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective on October 1, 1995; provided that the conditions precedent in Article 8, section 8.1 have been satisfied. If said conditions precedent have not been so satisfied, this agreement and the delegation and/or agreement to refrain from further exercise of authority to franchise shall not be effective until said conditions precedent have been met. The District agrees that once the County joins the CCCSWA and the new franchise agreements with Browning Ferris Industries and Waste Management begin, the District will not challenge the County's right to franchise solid waste in unincorporated areas. 3.2 CCCSD shall continue to administer those AB 939 diversion and recycling activities currently being undertaken pursuant to the PHBS Franchise Agreement and otherwise currently being undertaken by CCCSD, or on its behalf within the CCCSD-PHBS Franchise Area until March 31, 1996. CCCSD, notwithstanding the assignment of the franchise agreement to County, shall continue to provide this service for the balance of 7 f:\DMS\TCS.DIR\0118828.08 the franchise term, for programs which have already been initiated, such as the home composting workshops, and current recycling promotion. CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the PHBS Franchise Agreement as are available and requested by County. 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-PHBS Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-PHBS Franchise Area shall not be subject to the jurisdiction of the CCCSWA and it is not intended that this area be included within the CCCSWA jurisdictional boundaries, nor is it included in the 1994-1995 CCCSWA collection, transport and disposal franchise RFP process. 4.2 County shall, in good faith, participate as a member of CCCSWA in the RFP process, including the execution (along with the City of Walnut Creek) of the franchise agreements providing for solid waste services within the CCCSWA jurisdiction contemplated by the RFP; provided that the CCCSWA Board of Directors determines 8 f:\DMS\TCS.DIR\0118828.08 that such solid waste franchise agreements are acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. ARTICLE 5 Franchise Fees 5.1 CCCSD has received all franchise fee payments pursuant to the PHBS Franchise Agreement for the remainder of the current term expiring in March 31, 1996, which franchise agreement shall not be extended. Such fees have already been allocated by CCCSD to programs for carrying out AB 939 activities within the CCCSD-PHBS Franchise Area through the remaining term of the PHBS Franchise Agreement. County shall receive no payment of said previously collected franchise fees; however, nor shall County be required to pay any membership fee for participation in CCCSWA for the remainder of the term of the PHBS Franchise Agreement. Nothing in this agreement is intended to limit County from imposing additional franchise fees or taking any other action in administration of the PHBS Franchise Agreement during its remaining term following the effective date of assignment of said franchise to the County. ARTICLE 6 Liability Issues 6.1 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical, Inc., US District Court, Northern District of California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County 9 F:\DMS\TCS.DIR\0118828.08 and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-PHBS Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base of the existing CCCSD-PHBS Franchise Area, notwithstanding the assignment/transfer of the franchise authority to the County. The proportionate share of responsibility for the constituents/customers in the CCCSD-PHBS Franchise Area shall be based on the waste derived historically from the wasteshed area. By entering this agreement, the County is not assuming any responsibility or liability for the defense of the Acme Lawsuit for this wasteshed area. 6.2 The County as the future rate setting entity, agrees that the proportionate share of any liability or settlement costs (including a proportionate share of net legal costs and expenses incurred after the termination of the Franchise Agreement) shall be borne by the customer/constituent base of the CCCSD-PHBS Franchise Area, and amounts sufficient to pay for the net proportionate liability, costs and expenses, if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided and collected to the fullest extent allowed by law as a pass-through in the collector franchise rates for the area, whether the liability and/or settlement costs for this wasteshed be directly imposed on CCCSD and/or the County in the Acme Lawsuit. If 10 F:\DHS\TCS.D1R\0118828.08 deemed appropriate, the County may (at its discretion) collect such proceeds as charges. or fees imposed at any County franchised landfill and/or transfer station facility receiving solid waste from the PHBS Franchise Area. 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively, deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current PHBS Franchise Agreement or arising from other solid waste administration activities within the CCCSD-PHBS Franchise Area as a result of occurrences during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of assignment of the PHBS Franchise Agreement, as set forth in section 3.1. As between County and CCCSD, County shall be responsible for any liability arising as a result of occurrences after said date of assignment of the PHBS Franchise Agreement and during County franchise administration. In no event is County, by entering this agreement, assuming any legal liability for the said wasteshed area for any period prior to the said effective date of assignment of the PHBS Franchise Agreement except as specifically set forth above. 11 _ F:\DMS\TCS.DIR\0118828.08 ARTICLE 7 In emni 71 CCCSD shall indemnify,defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 arising at any time from occurrences prior to the effective date of the assignment the current PHBS franchise agreement. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 County shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above arising from occurrences after the effective date of the assignment of the current PHBS Franchise Agreement. 12 F:\DMS\TCS.DIR\0118828.08 ARTICLE 8 Conditions Precedent 8.1 The following shall be conditions precedent to the terms of this agreement becoming legally effective (in addition to the proper execution of this agreement by both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall in the same manner as the City of Walnut Creek take such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994-1995 RFP documents and the map attached hereto as Exhibit B) to the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994-1995 RFP process. ARTICLE 9 Consent to Assi ng ment 9.1 This agreement is subject to CCCSD obtaining consent by PHBS, Inc. to the assignment of the franchise agreement from CCCSD to the County, said written consent to be acceptable to and approved by CCCSD and the County. Said consent shall include a provision from PHBS, Inc. that PHBS, Inc. will not bring suit or seek any other relief from CCCSD concerning any issues relating to the exclusivity of the franchise agreement 13 F:\DMS\TCS.D1R\0118828.08 and/or the jurisdictional boundaries of the franchise for all periods prior to the effective date of assignment of the PHBS franchise agreement. If this consent is not obtained and approved by CCCSD and the County by the expiration (March 31, 1996)of the CCCSD- PHBS Franchise Agreement, nothing herein shall be construed to prevent the County's exercising of whatever franchising authority it has in the Franchise Area. ARTICLE 10 Miscellaneous Provisions 10.1 Entire Agreement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 10.2 Parag_Wh headings The article headings and paragraph headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 10.3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 10.4 Amendment This agreement may not be modified or amended in any respect except by a writing signed by the parties hereto. 14 F:\DMS\TCS.DIR\0118828.08 10.5 Severability If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 10.6 Attorney's The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 10.7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. 10.8 Future Franchising Authority Except for the up-to-one-year extension period allowed by a separate County-CCCSD Transitional Agreement for CCCSD administration of the current Waste Management Collection and Recycling, Inc. (Valley Waste Management) franchise, it has been and remains the County's position that on and after the expiration of the CCCSD-PHBS Franchise Agreement, CCCSD has no franchise authority for the unincorporated areas covered by this agreement to the extent the County thereafter franchises and/or regulates 15 F:\DMS\TCS.D1R\0118828.08 (e.g., delegates, etc.) for said areas. Nothing herein shall be construed as a waiver or modification of past County actions or its position in this regard, except for the said up- to-one-year extension period. It is understood and recognized that CCCSD does not agree with this County position. The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: , 1995 C O A ARY DISTRICT BY: ' Roger Dolan, neralanager Dated: g-2 , 1995 COUNTY OF CONTRA OSTA BY: APPROVED AS TO FORM: `, J Kenton L. Alm, e . ounsel Central Contra Costa Sanitary District ictor J. estman, County Counsel County of Contra Costa 16 f:\DMS\TCS.D I R\0118828.08 7� 1 - AGREEMENT FOR COLLECTION, REMOVAL AND DISPOSAL OF GARBAGE ZONE_ 3 LJ U�DD is �• \=� r TABLE OF CONTENTS Section Page 1. Definitions 1 2. Exclusive Privilege 3 3. Intent to Regulate All Garbage Collection, 3 Removal or Disposal 4. Exceptions to Exclusive Privilege 3 5. Right to Sell Valuable Commodity 4 6. Rates 4 7. Duty of Contractor to Maintain Records-- 4 Right of District to Examine Contractors Records 8. Applications by Contractor for Rate Increase 6 9. Operation By Contractor 6 10. Compliance with Federal, State and Local Ordinances 6 11. Limitation of Time on Collection 7 12. District May Require Efficiencies in Operation 7 13. Salvage 7 14. Faithful Performance Bond 7 15. Insurance 8 16. Legal Liability 8 17. Attorneys' Fees 9 18. Miscellaneous Obligations of Contractor 9 19. Fee for Exclusive Privilege 9 20. Billing 10 21. Assignability of Agreement 10 22. Involuntary Assignment 11 23. Notice Provisions 11 24. Recycling 11 25. Waste to Energy Program 12 26. Hazardous Waste 13 27. Disposal of Garbage 13 i Section Pam 28. Annexation and Change of Zone Boundaries 14 29. Takeover of Franchise Rights by Other Public 15 Entity 30. Affiliated Entities 15 31. Breach and Termination 16 32. Emergency 17 33. District Code 18 34. Term of the Agreement 18 35. Contest of Agreement's Term by the Parties 19 36. Severability 19 37. Terms of Agreement Bargained For 19 38. This Agreement Shall Supersede Prior Agreements 19 { AGREEMENT FOR COLLECTION, REMOVAL AND DISPOSAL OF GARAGE ZONE 3 This Agreement made and entered into this 1st day of April, 1986, by and between the District and the Contractor, WHEREAS the District and Contractor have entered into a Second Amended Agreement for Collection, Removal and Disposal of Garbage dated the 1st day of July, 1976, (hereinafter referred to as "said Agreement") granting to Contractor the exclusive privilege to collect, remove and dispose of garbage in the Zone until November 30, 1986; and WHEREAS, said Agreement provides that it may be extended on November 30, 1986 at the option of the Contractor, unless at least two years prior to the termination of said Agreement the District has notified the Contractor in writing that it does not desire said Agreement to be extended for an additional period; and WHEREAS, the Contractor exercised its option to extend said Agreement; and ( WHEREAS, the District has notified the Contractor that it does not desire said Agreement to be extended under the same terms and conditions. NOW, THEREFORE, in consideration of the covenants and agreements of the parties hereto and the payment of certain fees as hereinafter set forth, it is mutually covenanted and agreed as follows: 1. DEFINITIONS: As used herein, the following terms shall have the meanings set forth below: (a) "Agreement": This Agreement for the collection, removal, recycling and disposal of garbage by and between the District and the Contractor entered into as of the date first written above. (b) "Contractor": Boyd M. Olney, Jr. , dba Pleasant Hill Bay Shore Disposal . (c) "Customers": Those who have contracted with the Contractor for the collection, removal, recycling or disposal of garbage as provided herein, or who may be required to accept and pay for said service by local ordinance. (d) "District": The Central Contra Costa Sanitary District, a public corporation. -1- (e) "Garbage": (1) animal, fruit and vegetable refuse; (2) offal ; (3) leaves and cuttings, trimmings from trees, shrubs and grass; (4) inorganic refuse and rubbish; (5) anything thrown away as worthless; provided, however, that garbage shall not be defined as or include Hazardous Waste, Septage or Industrial Waste. (f) "Hazardous Waste": A waste, or combination of wastes, which because of its quantity, concentration, or physical , chemical, or Infectious characteristics may either: (1) cause, or significantly contribute to an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; or (2) pose a substantial present or potential hazard to human health or environment when improperly treated, stored, transported, or disposed of, or otherwise managed. ( This definition will include, but not be limited to, hazardous waste as defined by the State of California and its agencies, or the United States or its agencies. (g) "Industrial Waste": Non-sewered liquid waste and solid waste produced as by-products of industrial processes, or other refuse produced or accumulated as a result of industrial processes, including waste produced by the District and other public entities as a result of treatment or other processes undertaken in providing public utility services. (h) "Septage": Non-sewered liquid or semi-liquid waste which may be trucked to the District or other treatment facility for disposal, to include, but not limited to, waste from residential septic tanks, commercial grease cleanouts, and industrial waste holding facilities. (i) "Waste stream": The garbage to be collected under this Agreement from the time of the collection by the Contractor to the disposal of same by the Contractor. (J) "Zone": The geographic area generally described in Exhibit A to this Agreement, which exhibit is attached hereto and incorporated herein by reference, and more particularly as set forth in the six hundred (600) scale maps maintained and available for inspection at the office of the Secretary of the District, excepting therefrom any l geographic area which is within the boundaries of another Jurisdiction, including any military base, which is exercising its authority to -2- 4-1 regulate garbage collection. Said six hundred (600) scale maps shall reflect changes of boundaries of the Zone in such a manner as to identify each alteration to the Zone and the effective date thereof. 2. EXCLUSIVE PRIVILEGE The District, by this Agreement, grants to the Contractor for the term as set forth in paragraph 34 of this Agreement, unless terminated in accordance with this Agreement, the exclusive privilege and duty to collect, remove and dispose of all garbage as said term is defined in this Agreement within the Zone. This exclusive privilege to collect, remove, and dispose of garbage is only qualified as set forth in this Agreement. The Zone may be expanded or reduced in size (a) by mutual agreement of the parties; or (b) as provided in paragraphs 28 and 29 of this Agreement. 3. INTENT TO REGULATE ALL GARBAGE COLLECTION, REMOVAL OR DISPOSAL: The parties hereto agree that the District currently has Jurisdiction to regulate the collection, removal and disposal of all garbage in the Zone. The parties further agree that by the terms of this Agreement the District has exercised its Jurisdiction and is regulating the collection, removal and disposal of all garbage in the Zone. This Agreement does not regulate the collection, removal and disposal of industrial waste, hazardous waste or septage. Whether a particular garbage collection activity is regulated by this Agreement or not, is within the sole determination of the District. If there is any question as to whether the garbage collection activity is regulated or unregulated, it shall be the responsibility of the Contractor to inquire of the District and thereafter provide such information as the District may require to enable the District to provide Contractor with a formal written opinion as to whether the garbage collection activity is regulated or unregulated. 4. EXCEPTIONS TO EXCLUSIVE PRIVILEGE: The exclusive privilege granted by this Agreement shall not apply if: (a) The person or entity generating garbage personally collects, removes and disposes of such in a clean and sanitary manner in conformance with all applicable laws and regulations, or (b) The person or entity generating inorganic refuse or rubbish contacts the Contractor to arrange for the collection, removal and disposal of such and the Contractor declines to do so or is unable to do so in a.timely manner, or (c) The person generating the garbage contracts with another to remove and dispose of (1) inorganic refuse or rubbish, or (ii) leaves, cuttings, trimmings from trees, shrubs or grass by truck or other -3- vehicular means, when such removal is incidental to other contract work being performed. Nothing in this paragraph shall be construed to eliminate or qualify the exclusive privilege of the Contractor to provide drop boxes and/or bulk collection containers for collection of garbage within the Zone. 5. RIGHT TO SELL VALUABLE COMMODITY: This Agreement is not intended to and does not affect or limit the right of any person to sell any valuable commodity to the Contractor or to any other person lawfully doing business within the Zone at prices agreed upon by the parties to such transaction, provided that the valuable commodity is separated at the source by the generator and that the person purchasing the valuable commodity does not collect and dispose of other garbage. 6. RATES: Contractor shall perform the responsibilities and duties herein agreed in the Zone in accordance with and in consideration of the reasonable rates fixed by the District from time to time. The statement that the actions in paragraphs 12, 24, 25, and 27 may be directed "at no cost to the District" shall not be construed to mean that the Contractor is prohibited, subject to the District's approval, from passing on its costs of taking those actions to the Customers. It is the intent of the parties that the rates fixed shall be in conformity with applicable law. 7. DUTY OF CONTRACTOR TO MAINTAIN RECORDS -- RIGHT OF DISTRICT TO EXAMINE CONTRACTOR'S RECORDS: Contractor shall maintain a proper set of books and records in accordance with generally accepted accounting principles, accurately reflecting the business done by it under this Agreement. Contractor shall further maintain records as to its total number of customers, said records to detail the types of customers and such other operating statistics in such manner and with such detail as the District may require. The Contractor shall, by March 31 of each year, submit to the District an operating statement for Zone 3 for the most recent reporting year, prepared on a compiled basis by a Certified Public Accountant which will comply with the following requirements: (a) A statement by the Certified Public Accountant that the operating statement was prepared on a compiled basis, as defined in American Institute of Certified Public Accountants' Statement on Standards for Accounting and Review Services No. 1, will be affixed to the operating statement. (b) The operating statement will be based on revenue and expense accounts which will be established to determine the results of such operation as a separate division within the Contractor's single entity. -4- (c) The operating statement will present revenues by category of regulated service, and expenses will be reported in accordance with the formats developed in the Price Waterhouse report dated February 7, 1983. (d) Customary footnote disclosure should be provided with the statement of operations, and should include an explanation of the allocation bases used for all expense accounts. In the event the Contractor is required by another public entity or regulator to provide audited financial statements, the Contractor will transmit a copy of the audited financial statements to the District and thereafter submit such audited financial statements to the District by March 31 each year, in lieu of the compiled operating statement. The Contractor shall further furnish to the District a report of its total number of customers within the Zone by types of customers and such other operating statistics in such manner and with such detail as the District may request. The District may, at its own expense, at any time during the term of this Agreement, examine the books and records of the Contractor, or have the books and records of the Contractor examined by a person appointed for that purpose by the District. District shall give thirty (30) days written notice to the Contractor in advance of such examination date. The information required by this paragraph shall pertain to the Contractor's operations in the Zone. Nothing contained herein shall require the Contractor to provide the District with information �. pertaining to the Contractor's operations which are not regulated by the District; provided that the District's agent may examine the Contractor' s books, records and financial statements pertaining to operations not regulated by the District for the sole purpose of gathering information necessary to allow the agent to ascertain and communicate to the District whether income, expenses, assets and liabilities are reasonably and consistently allocated among operations regulated by the District and operations not regulated by the District. As used in this paragraph "District Agent" shall mean an independent Certified Public Accountant, as agreed upon by the parties, or, failing agreement, appointed by the Presiding Judge of the Contra Costa County Superior Court. Notwithstanding this requirement to use an independent Certified Public Accountant as the, "District Agent," the District may use District employees, or any other person designated by the District, to examine records of the Contractor otherwise available to other public entities. Information gained from such examination of records pertaining to operations not regulated by the District shall be treated by the District and its agents as confidential information. However, nothing in this paragraph will prevent the District allowing public access to District records as provided for under the California Government Code, and in the event any dispute arises as to the public access to information provided by the Contractor under the terms of this Agreement, the District shall in its discretion provide public access to said information according to law or tender the defense of any claims made against the District concerning said information to the Contractor. -5- 8. APPLICATIONS BY CONTRACTOR FOR RATE INCREASE: Any and all requests for rate increases, excepting those provided for under paragraphs 12, 24, 25, and 27 of this Agreement, may be made no more frequently than on an annual basis. Any such request for rate increase by the Contractor, excepting those provided for in paragraphs 12, 24, 25, and 27 of this Agreement, shall be submitted together with the compiled operating statement required under paragraph 7 of this Agreement by March 31 of that year. Approval of the rate increase, or other action by the Board on the application, shall occur only after the District has had sufficient time to review the application and financial statement, and in no event will a rate increase take effect before July 1 of the year in question. Rate increase applications submitted by Contractor will be prepared using such formats, including such operating statistics as the District may prescribe from time to time. Any rate increase application will be accompanied by the compiled operating statement for the most recent reporting year preceding the requested effective date of rate increase. In the event the Contractor is required to make . changes in its operation pursuant to the conditions set forth in paragraphs 12, 24, 25, and 27 of this Agreement, the Contractor may petition the Board using the format mentioned herein, at any time during the calendar year. The District staff shall calendar the petition for rate increase within ( seventy-five (75) days of receipt of an extraordinary petition presented pursuant to paragraphs 12, 24, 25, and 27 of this Agreement. 9. OPERATION BY CONTRACTOR: Contractor shall furnish all necessary equipment for the operation of refuse collection service in the Zone and shall maintain such equipment in a sanitary condition at all times. Contractor shall furnish all necessary labor in connection with the operation of a refuse collection service in the Zone. The Contractor, in performance hereof, shall use covered (by tarpaulin or otherwise) water-tight bodied motor trucks with truck bodies constructed of sufficient strength to withstand a fire within, without endangering adjacent property. The trucks, drop boxes, bins, or similar types of equipment shall be kept neat and clean and in good repair. The Contractor shall paint its name, permit number and telephone number on the side of each truck (in letters at least four (4) inches high) and each drop box, bin' or similar type equipment owned or leased by the Contractor. 10. COMPLIANCE WITH FEDERAL, STATE AND LOCAL ORDINANCES: The Contractor shall comply with all applicable ordinances and rules and regulations that are now in effect or may be promulgated or amended from time to time by the Government of the United States, the State of l California, the County of Contra Costa, the District and any other agency now authorized or which may be authorized in the future to regulate the services to be performed herein regarding the collection, removal and disposal of garbage. -6- t 11. LIMITATION ON TIME OF COLLECTION: The Contractor shall make a systematic collection of garbage from each place where collection is made in a manner that the person receiving the service can predict the day on which collection will be made. Contractor shall not collect garbage from an inhabited dwelling or dwelling unit between the hours of 7 p.m. and 4 a.m. 12. DISTRICT MAY REQUIRE EFFICIENCIES IN OPERATION: The District may from time to time at its discretion and at its expense, examine the Contractor's operation in order to insure that the Contractor is operating at a satisfactory level of efficiency. The Contractor agrees to cooperate in any such examination and shall provide for inspection to the District or its designated representatives, at the Contractor's principal place of business, such information as the District may require, including but not limited to, such things as collection routes and equipment records. In addition, the District may require the Contractor to evaluate alternative methods of garbage collection for the purpose of improved efficiencies and to develop and submit a plan to implement the efficiencies within one hundred and eighty (180) days of notice to the Contractor. The District can require the Contractor to implement the efficiencies within one (1) year of approval of the Contractor's plan, unless the Contractor can demonstrate that one (1) year is unreasonable. Should the District commence such a program as outlined in this paragraph, Contractor agrees to not only do those things specified herein, but also to act at the direction of the District on other matters that may be necessary for the success and efficiency of such a project(s). 13. SALVAGE: District shall be entitled to the right of salvage at the expense of the District from the garbage collected pursuant to this Agreement, but at its sole discretion may delegate this right to, or waive the same in favor of, the Contractor. District has temporarily waived its right of salvage and has delegated such to Contractor; and such waiver and delegation shall continue until notice in writing by the District to the contrary is given. In the event the District independently wishes to exercise its right to salvage, the District shall give in writing to the Contractor notice of its intent and said right shall commence and accrue to the District ninety (90) days from the date of said notice. The salvage rights set forth in this paragraph specifically are intended to, refer to salvage operations once the garbage is in the waste stream. This paragraph should not be read to be in conflict with the rights to recycle set forth in paragraph 24. 14. FAITHFUL PERFORMANCE BOND: i i The Contractor shall submit to the District simultaneously with the execution of this Agreement a corporate surety bond in the amount of -7- S50,000.00. The bond shall be executed by a surety company licensed to do business in the State of California and acceptable to the District. The bond shall be approved by the District and shall be payable to the District. The condition of the bond shall be that the Contractor will faithfully perform the duties imposed by ordinance, this Agreement and the rules and regulations of the District. Any action by the District to proceed against the Bond shall not limit or affect the right of the District to use other remedies available to the District under the Agreement, or in courts of law or equity. Notwithstanding the foregoing, in lieu of the corporate surety bond, Contractor may provide to District a letter of credit or cash bond in a form satisfactory to the District. 15. INSURANCE: The Contractor shall maintain and continue in force during the term of this Agreement, public liability insurance, property damage insurance and workers' compensation insurance in amounts as shall be annually set by the General Manager-Chief Engineer after discussion with the Contractor. The Contractor has the right within ten (10) days' notice of the insurance coverage amounts, to appeal the decision of the General Manager-Chief Engineer, to the Board of Directors. Such insurance shall be obtained from a company or companies licensed to do business in the State of California and acceptable to the District. District shall be named as an additional insured on the public liability and property damage policies and each policy, including workers' compensation, shall contain a clause providing that the insurer will not cancel or decrease the insurance coverage without first giving thirty (30) days' notice in writing to the District. A certificate of Insurance shall be provided to the District any time the Contractor alters a policy or changes carriers. A copy of `the certificate for each policy, or at the District's request, a copy of each policy shall be provided to the District by March 31 of each year. Failure of the Contractor to maintain insurance in the manner and amount stated herein and as directed by the General Manager-Chief Engineer, subject to the approval of the Board, will constitute a breach of this Agreement. 16. LEGAL LIABILITY: All work and performance covered by this Agreement shall be at the risk of the Contractor. Contractor agrees to save, indemnify and keep harmless the District, its officers, employees, agents and assigns against any and all liability, claims, judgments, or demands, including demands arising from injuries or deaths of persons and damage to property, arising directly or indirectly out of the obligations here undertaken or out of the operations conducted by the. Contractor, save and except claims or litigation arising through the sole negligence or willful misconduct of the District, and will make good to and reimburse District for any expenditures, including reasonable attorneys' fees, that the District may make by reason of such matters and, if requested by District shall defend any suit at the sole cost and expense of Contractor. -8- Upon request by the District, the Contractor shall appear for and defend the District in any action which challenges the validity of this Agreement or the procedure by which this Agreement was entered into, or the validity of any District ordinance which authorizes District to enter Into this Agreement. Defense of the District shall be provided by counsel satisfactory to the District. All costs of litigation including attorneys' fees, and, to the extent permitted by law, any money judgment entered against District, its Board members, officers or employees or agents, shall be borne by the Contractor. In each case the District shall have the sole and final authority to determine whether such costs and/or judgment be chargeable as an operating expense or chargeable against Contractor's profits. Should any party successfully challenge the validity of this Agreement or the procedure by which this Agreement was entered into or the validity of any District ordinance which authorizes the District to enter into this Agreement, then in such case the Contractor shall have no cause of action for damages or any other relief against the District as a result of such successful challenge. 17. ATTORNEYS' FEES: In the event of litigation between the parties arising hereunder, the prevailing party shall recover its reasonable costs of litigation, including attorneys' fees and costs as determined by the Court. 18. MISCELLANEOUS OBLIGATIONS OF CONTRACTOR: The Contractor shall maintain an office with adequate telephone service within the District, and shall keep the office open during usual business hours for the transaction of business with its Customers and the public. No less than once every twenty-four (24) months, and each time the Contractor requests a rate increase, the Contractor shall notify each Customer with printed information setting forth the rates, days of collections, Contractor's complaint procedures, and the amount and manner of refuse to be collected. The Contractor shall consult with the General Manager-Chief Engineer, or his designee, to determine the appropriate manner of notifying each Customer. The Contractor shall provide three additional all-purpose pickups per year not to exceed two cubic yards per residential unit in the residential areas of the Zone. The dates for said additional pickups may be set by the Contractor, however it is the intent of this Agreement that they shall be as evenly spaced throughout the year as is practicable and that the Contractor will provide notice to the Customers of said pickup dates. 19. FEE FOR EXCLUSIVE PRIVILEGE: �. The Contractor shall pay to "the District for the privilege granted by this Agreement an annual fee fixed by the District which is reasonably calculated to reimburse the District for its direct costs in -9- administering this Agreement, including, but not limited to, outside professional fees incurred by the District, plus a reasonable allowance for overhead of the District as said overhead relates to garbage franchising; which sums shall be fixed by the District and paid annually in advance by the contractors, in proportion to the number of customers served by each franchised contractor. Amounts due each year shall be paid in advance within thirty (30) days after July 1 of each fiscal year following the effective date of this Agreement or within thirty (30) days after the District gives notice of the amount of the annual fee, whichever comes later. The fee for the fiscal year beginning July 1, 1985, is hereby fixed at $4,665, and has been paid. The last payment pursuant to this paragraph shall be prorated from the beginning of the fiscal year in which this Agreement ends to the date this Agreement ends. 20. BILLING: The Contractor may bill its Customers in advance or in arrears. Bills in advance shall be due and payable thirty (30) days after the beginning of the billing period. The billing periods for advance billing shall be at least quarterly unless the District approves a less frequent billing. Contractor agrees not to discontinue service to a Customer until a Customer's account billed in advance has been delinquent for a period of at least sixty (60) days, and notice of the termination is provided to the Customer thirty (30) days prior to the termination. Where the Contractor bills in arrears, the bill shall be due and payable upon presentation and the Contractor agrees not to terminate service until the Customerts account billed in arrears has been delinquent for thirty (30) days. Full payment for debris boxes may be required by the Contractor prior to delivery of debris box to Customer. 21. ASSIGNABILITY OF AGREEMENT: The Contractor shall not sell, assign, or transfer this Agreement or any part hereof, including probate, proceedings, to a person other than David Olney, without the written consent of the District. Neither this Agreement nor any part hereof, nor any obligation or service to be performed hereunder shall be assigned or subcontracted without written consent of District. The term assignment shall include any dissolution, merger, consolidation or other reorganization of the Contractor, which results in change of control of the Contractor, or the sale or other transfer by probate proceeding or otherwise of a controlling percentage of the Contractor's capital stock to a person not a shareholder on the date of the execution of this Agreement. In the event the Contractor herein attempts to assign or subcontract this Agreement or any part hereof or any obligation hereunder, the District shall , have the right to elect to terminate forthwith, without suit or other proceeding. -10- Qj The District may, following a properly noticed public hearing, assign or transfer this Agreement, or any part hereof, without the consent of the Contractor to any legally authorized public entity, including, but not limited to, the County of Contra Costa or any Joint powers authority created pursuant to Chapter 5, Division 7, Title I of the California Government Code. 22. INVOLUNTARY ASSIGNMENT: No interest of Contractor in this Agreement shall be assignable by operation of law. Each or any of the following acts should be considered an involuntary assignment providing the District with the right to elect to terminate the Agreement forthwith, without suit or other proceeding: (1) If the Contractor is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors or institutes a proceeding under the Bankruptcy Act in which the Contractor is the bankrupt, (2) If Writ of Attachment or Execution is levied on this Agreement, (3) If in any proceeding to which the Contractor is a party a Receiver is appointed with authority to take possession of the Contractor's property, (4) In the event of a probate proceeding where the rights of the ( Contractor under the Agreement would pass to another individual or other individuals. 23. NOTICE PROVISIONS: Any notice required or permitted under this Agreement shall be in writing and shall be deemed to have been given if delivered personally or ten (10) days after posted by certified mail, return receipt requested, addressed as appropriate, either to the Contractor at: 441 No. Buchanan Circle, Pacheco, California 94553, or to the District at 5019 Imhoff Place, Martinez, California 94553, Attention: General Manager-Chief Engineer. 24. RECYCLING: District is currently studying refuse recycling as a means to conserve resources, energy, money and to further enhance the environment. The parties hereto recognize that refuse recycling, use of waste or garbage products and improvements in garbage collecting efficiencies are changing and developing technologies. Notwithstanding anything in this Agreement to the contrary, at any time during the term of this Agreement the District may require the Contractor to prepare and submit a plan to provide refuse recycling in the Zone. The Contractor shall provide such a recycling plan within 180 days of receiving the written notice requiring preparation of a recovery plan. The District shall review and comment upon the proposed recycling plan within sixty (60) days. The Contractor shall have thirty (30) days from receipt of District's comments to modify the Contractor's proposed plan in order to make said -11- • J proposed plan acceptable to the District. If the plan is approved by the District Board of Directors, the Contractor shall implement the plan within ninety (90) days unless that is impracticable under the circumstances. Implementation of a refuse recycling plan will be at no cost to the District. The District may require, as an element of a program to recycle refuse among other things, that the Contractor undertake curbside or home pickup of recyclable material and segregate the garbage into elements suitable for recycling and elements not so suited. The District may further require that the Contractor deliver the segregated recyclable refuse to locations or sites selected by the District. Contractor agrees to not only do those things specified herein, but also to act at the direction of the District on other matters that may be necessary for the success and efficiency of a recycling project. The District shall give reasonable advance notice to Contractor of changes in the Contractor's operations which may, in the District's discretion, become necessary due to the implementation of a recycling program. In the event the Contractor fails to submit or implement a plan in a timely manner as set forth in this section of the Agreement, or fails to reasonably act at the direction of District on matters relating to recycling, any and all such failures will be treated as a breach of this Agreement and the District shall have the right to elect to terminate forthwith, without suit or other proceeding. 25. WASTE TO ENERGY PROGRAM: The District may evaluate the feasibility of a waste to energy project as a means to conserve resources, energy and further enhance the environment. The parties hereto recognize the technologies in regard to production of energy from waste refuse are changing and developing. The District may, at any time during the term of this Agreement, undertake a waste to energy project singularly or in conjunction with another entity. In the event the District undertakes such a waste to energy project, or determines that the waste stream under this Agreement should be diverted to another entity's waste to energy facility, the District shall give thirty-six (36) months' notice to the Contractor of its intent to commence or participate in such a program. At the expiration of the thirty-six (36) months, the Contractor shall implement the changes in the Contractor's operations which may become necessary due to the waste to energy project. The District may require, as an element of the waste to energy project, that the Contractor deliver the garbage collected under this Agreement, or portion thereof, as directed by the District, to locations or sites selected by the District for waste to energy production. The Contractor agrees also to act at the direction of the District on other matters that may be necessary for the success and efficiency of a waste to energy project. In this regard, the District shall give reasonable advance notice to the Contractor of changes in the Contractor's operations which may, in the District's discretion, become necessary due to the implementation of the waste to energy project. -12- The Contractor shall have the right and duty to collect and dispose of nonhazardous waste or refuse produced as a result of operations of a District owned or controlled waste to energy facility, including, but not limited to, ash and other solid noncombustible material . The Contractor shall collect and dispose of a share of the refuse produced by the facility and said share shall be in proportion to the Contractor's share of the total garbage delivered to the facility. In the event that District directs the Contractor to deliver the garbage to a publicly-owned waste to energy facility, not controlled by the District, the District will make reasonable effort to secure for the Contractor the right to collect any waste or refuse produced, or at least a proportional share thereof. The District may, in its discretion, undertake a waste to energy project in conjunction with a recycling program or other garbage program as set forth in paragraphs 13 and 24 of this Agreement. Nothing in this paragraph shall be read to be in conflict with the provisions set forth in paragraphs 13 and 24. 26. HAZARDOUS WASTE: The parties hereto recognize that federal, state and local agencies with responsibility for the defining of hazardous waste and for regulating the collection, hauling or disposing of such substances, are continually providing new definitions, tests and regulations concerning these substances. Under this Agreement, it is the Contractor's responsibility to keep current with the regulations and tests on such substances and to identify such substances and to comply with all federal, state and local regulations concerning such substances. Contractor agrees to provide to the District upon its request the Contractor's program for identifying hazardous waste and complying with all federal, state and local statutes and regulations dealing with hazardous waste. The Contractor shall make every reasonable effort to prohibit the collection and the disposal of hazardous waste in any manner inconsistent with applicable law. 27. DISPOSAL OF GARBAGE: Throughout the term of the Agreement, unless District gives notice as provided for herein, it shall be the Contractor's sole responsibility and duty to dispose of the garbage and waste and other material collected by virtue of this Agreement, including any extension granted by the Board, in a safe manner in compliance with all federal, state and local regulations. (a) Prior to April 1, 1991, the Contractor must provide the District with conclusive proof that: (1) the Contractor has ownership of, or a legally binding right to use, a properly approved and permitted disposal site(s); (2) that said disposal site(s) has sufficient capacity available to the Contractor to provide for disposal of all garbage to be -13- collected under this Agreement; (3) and that said site(s) provides an economically satisfactory disposal alternative. Proof of each of these conditions shall be provided in writing to the satisfaction of the District Board of Directors. In the event said conditions have not been met to the Board's satisfaction by April 1, 1991, the District shall have the right to declare a breach or default of said Agreement and may proceed, pursuant to paragraph 31 of this Agreement, to terminate this Agreement. Subject to the provisions set forth hereinafter in subsection (b), the District, in its sole discretion, may direct the garbage collected under this Agreement to be delivered to any site of A is choosing. This shall include the right of the District to direct the disposal, at no cost to the District, of all garbage collected by virtue of this Agreement, to a transfer station or stations, disposal site or sites selected by the District, including disposal sites that may be owned and operated by the District, provided that the disposal of garbage atsuch transfer station(s) or site(s) is authorized by law. Contractor agrees that the District may charge the Contractor a reasonable fee for the disposal of garbage collected by virtue of this Agreement, if such garbage is disposed of at the site(s) owned by or controlled by the District and said charge shall be passed on to the Customer by means of rates fixed by the District. t (b) District agrees in the -event that the Contractor becomes owner of or interest holder in a privately owned disposal site, other than the current ACME Landfill Corporation disposal site in Martinez, and secondly, that the Contractor tenders to the District all rights and legal authority to regulate rates and charges for use of such site by all persons or entities, including but not limited to site inspections and audits, the District will direct all garbage collected under this Agreement to be delivered to said privately owned disposal site for the term of the Agreement, including any extensions which may be granted. The District may thereafter, in its discretion, assume the rate setting authority or any portion thereof. This Agreement on the part of the District is conditioned upon the privately owned disposal site being properly approved and permitted by the necessary public boards and entities. The District in all instances retains the right to direct the garbage collected under this Agreement to a transfer station prior to the delivery to a privately owned disposal site. Nothing in this subsection shall be construed to be in conflict with or eliminate the rights and obligations provided for in paragraphs 24 and 25. 28. ANNEXATION AND CHANGE OF ZONE BOUNDARIES: The District agrees to give notice to the Contractor by April 1 of the next calendar year of any geographic area which has been annexed to or deannexed from the District during the preceding calendar year or which has been included in, or excluded from, the Zone. Such notice shall specifically describe the changed boundaries of the Zone. If such t notice is given to the Contractor, all of the provisions of this Agreement shall apply to the collection, removal, and disposal of garbage within such changed boundaries of the Zone beginning on July 1 of the -14- calendar year following the preceding calendar year during which such annexation or deannexation occurred.' The Contractor shall give notice to the District by April 1 of the next calendar year of any geographic area in the Zone or immediately contiguous to the Zone, in which the Contractor has commenced service within the preceding year, notwithstanding whether the Contractor deems that area to be regulated or unregulated. The Contractor realizes that the District and Zone boundaries may be altered by virtue of actions taken by the Contra Costa County Local Agency Formation Commission (LAFCO). The Contractor agrees that should a municipal corporation, which at the date of the signing of this Agreement exercises its lawful authority to franchise garbage collection, lawfully annex territory which is within the Zone, the District may make such alterations to the Zone as the annexation necessitates. Should the District boundaries be amended so as to change the boundaries of the Zone, the Contractor agrees that it will abide by whatever changes in the Zone which become necessary due to changes in the District boundaries made by the Local Agency Formation Commission. The Contractor agrees that the District Board of Directors may make such alterations to the Zone as are necessitated by such Local Agency Formation Commission actions and shall have no right or claim to damages or other relief against the District for such alterations to the Zone. The District shall provide notice to the Cont-actor of all petitions or resolutions sent by the District to LAFCO for annexation or deannexations which may directly affect the territories included in the Zone. 29. TAKEOVER OF FRANCHISE RIGHTS BY OTHER PUBLIC ENTITY: In the event that the County, or a municipal corporation, which at the date of the signing of this Agreement has boundaries within the Zone which areas are franchised under this Agreement, takes action, after such date of signing, to assume the powers and responsibilities of the franchisor in relation to garbage collection and disposal in those areas within the Zone, the rights of the respective parties in regard to this Agreement shall be set forth in Health and Safety Code 4270 et seg. and other applicable law of the State of California. Notwithstanding any lawful action by another public entity to take over the right to franchise solid waste handling, collection - and disposal, the District shall retain the right at all times during the term of this Agreement, including any extensions granted by the District Board, to direct the disposition of. all garbage collected within the Zone. ' Contractor agrees, notwithstanding any actions taken by another public entity in regard to assuming the role of the solid waste franchisor, to deliver the garbage collected under this Agreement to the location or locations designated by the District during the term of this Agreement, including any extensions granted by the District Board. 30. AFFILIATED ENTITIES% The Contractor shall provide information necessary to satisfy the District that the charges made by any affiliated entity are reasonable. -15- "Affiliated entity" shall be defined, for purposes of this paragraph, as any entity which provides products or services to the Contractor and in which the Contractor owns a ten percent <10%> or greater interest. The District shall have the right to inspect the financial records of any affiliated entity in which the Contractor owns a majority interest. For purposes of this paragraph the term "Contractor" shall include the Contractor, if an individual, and all members of his or her immediate family; or if a corporation, the controlling shareholder and the controlling shareholder's immediate family members. For the purpose of this paragraph, "Immediate Family" includes spouses, children, and relatives of the first degree of sanguinity. 31. BREACH AND TERMINATION: The General Manager-Chief Engineer of the District shall have authority, subject to review by the Board of Directors of the District upon appeal, to determine whether a breach of any provision of this Agreement by the Contractor has occurred. Any waiver or breach shall not be deemed to be a waiver of any subsequent breach or to be construed as approval of a course of conduct. In the event that a breach occurs, the District shall give the Contractor notice of the breach, in writing, setting forth the breach or default. The Contractor shall have a reasonable period to cure the noticed breach, said period not to exceed sixty (60) days. In the event the breach or default is cured to the satisfaction of the General Manager-Chief Engineer of the District within the period of time allotted, the breach shall not be deemed a material ( breach. In the event that the General Manager-Chief Engineer determines that the Contractor has failed to satisfactorily cure the breach or default within the period of time allotted, the General Manager-Chief Engineer may determine such breach or default to be material. Multiple or repeated breaches, or a pattern of breaches and subsequent attempts to cure said breaches by Contractor shall provide an adequate basis for the General Manager-Chief Engineer, in his discretion, to declare any subsequent breach to be material, notwithstanding whether or not that breach is ultimately cured by the Contractor. If such a determination of material breach is made, the General Manager-Chief Engineer's determination shall be automatically appealed to the Board for final action. . A material breach shall be cause for termination of this Agreement by the Board of Directors of the District. In.the event of a termination prior to the natural expiration of the term of this Agreement, the District shall have the right to temporarily assume the obligations of the Contractor and shall therefor have the right to forthwith take possession of all trucks and other equipment of the Contractor and exercise the Contractor's right to enter and use any disposal facilities for the purpose of performing the services agreed to be performed by the Contractor herein until such time as the District can make other arrangements for the performance of said services. However, t such temporary assumption of Contractor's obligations under the Agreement shall not be continued by the District for a period exceeding twelve (12) months from the date such operations are undertaken by the District. -16- t IL During any period in which District has temporarily assumed the obligations of Contractor under this Agreement, District shall be entitled to the gross revenue attributable to operations during such period and shall pay therefrom only those costs and expenses applicable or allocable to said period, including the reasonable rental value of the trucks and equipment to be paid to the Contractor. The excess, if any, of revenue over applicable or allocable costs and expenses during such period shall be deposited with the District funds to the credit of the operation and maintenance account. The loss, if any, during such period shall be a charge against Contractor, and shall be paid to the District by the Contractor upon demand. Final adjustment and allocation of gross revenue, costs, and expenses to the period during which the District temporarily assumed the obligations of Contractor shall be determined by an audit by a Certified Public Accountant and prepared in report form with his unqualified opinion annexed thereto. District shall indemnify Contractor against and hold it harmless from, any and all liability claims, judgments or demands, including demands arising from injuries or deaths of persons and damage to property, arising directly or indirectly out of the operations and obligations of Contractor which District assumes pursuant to the provisions of this paragraph 31, save and except claims or litigation arising through the sole negligence or willful misconduct of Contractor and will make good to and reimburse Contractor for any expenditures, including reasonable attorneys' fees, that the Contractor may make by reason of such matters and, if requested by Contractor, shall defend any ( suit at the sole cost and expense' of District. Nothing in this Agreement shall prevent the District during any period in which District temporarily assumes the obligations of the Contractor under this Agreement, from employing persons who were employed by the Contractor for the collection of garbage under this Agreement. Upon the occurrence of said breach and the declaration of such by the Board of Directors of the District, this Agreement and the franchise granted thereunder shall be of no further force and effect, excepting these provisions concerning District's right to temporarily assume the Contractor's obligations and to use Contractor's facilities upon early termination as provided herein. The District then shall be free to enter into whatever other arrangements are deemed justified and necessary for the collection, removal and disposal of garbage within the Zone. Failure by the District to provide the Contractor with the exclusive franchise to collect and dispose of garbage within the Zone, as defined In this Agreement, and except as set forth in paragraph 32, shall constitute a material breach of this Agreement which will allow the Contractor, in its discretion, to terminate the Agreement and be relieved of all obligations and duties hereunder. Notice of termination by the Contractor must be provided to the District one (1) year prior to cessation of the duties and responsibilities of the Contractor hereunder. 32. EMERGENCY: Notwithstanding the Contractor's exclusive franchise rights set forth in paragraph 31, in the event of an emergency due to natural -17- disaster or labor strike which interrupts the collection of garbage by the Contractor, the Board of Directors of the District shall have the right to declare a temporary suspension of this Agreement for the reasonable duration of the emergency and until such time as the District determines that the Contractor is able to reassume all obligations under this Agreement. Should Contractor fail to demonstrate to the satisfaction of the Board of Directors of the District that required services can be resumed by Contractor prior to the expiration of a six (6) month period, this Agreement may be terminated at the direction of the Board of Directors. An emergency or a declaration terminating the Agreement may be declared by a resolution adopted by a four-fifths <4/5> vote by the District's Board of Directors. 33. DISTRICT CODE: This Agreement is entered into under and by virtue of the authority of and pursuant to Title 8 of the Code of the District and in accordance with the provisions thereof, and any subsequent amendment thereto, which are hereby incorporated in this Agreement by reference. 34. TERM OF THE AGREEMENT: The term of this Agreement and the exclusive franchise granted hereunder shall be for a period. of ten (10) years from April 1, 1986, to March 31, 1996, subject to the provisions of paragraphs 27 and 31 of this Agreement. In the event that the three (3) conditions set forth in paragraph 27(a) have been met to the satisfaction of the Board by April 1, 1991, and the further event that the Board thereafter determines that the Contractor has provided a satisfactory level of service at rates reasonable to the ratepayers, the Board may, in its discretion, extend the term of this Agreement for a period not to exceed five (5) additional years, or for a total term not to exceed fifteen (15) years. If the Board wishes to take action concerning this option to extend, such Board action shall be taken and notice given to the Contractor of such action prior to April 1, 1994. The Board has the option to: (a) Extend the franchise for a period up to five (5) years under the terms of this Agreement, or; (b) 'Extend the franchise for a period of up to five (5) years, under the terms of this Agreement including any modifications thereof as may be required in the discretion of the Board, or; (c) Refuse to extend the term beyond March 31, 1996. Failure of the Board to take action with regard to the extension of term under this paragraph by April 1, 1994 shall constitute a rejection by the District of the option to extend and the Agreement shall terminate In due course on March 31, 1996. -18- All modifications of the Agreement which may become a condition of an extension of the term shall be in writing and notice of such modification shall be served upon the Contractor prior to April 18 1994. The Contractor shall give notice to the District as to acceptance or rejection of the extension under the terms offered within three (3) months of the date of service of the notice from the Board. Failure of the Contractor to give timely notice will constitute a rejection of the offer to extend. , 35. CONTEST OF AGREEMENT'S TERMS BY THE PARTIES: In the event either party to this Agreement attempts to challenge the validity of any portion of this Agreement, such action in attempting to challenge the Agreement shall constitute a material breach of this Agreement and the nonbreaching party shall have the right to elect to terminate forthwith without suit or other proceeding. This paragraph 35 shall not be construed to prevent either party from seeking redress to the courts for the purposes of legal review of administrative procedures in regard to rate setting or District actions taken pursuant to this Agreement, or for the purpose of enforcing the provisions contained in this Agreement. 36. SEVERABILITY: In the event legal action is brought by a person or entity, other than the parties to this Agreement, to challenge, invalidate, contest or set aside any of the provisions of this Agreement, each and every term and condition, and each and every section and paragraph is severable from the remaining terms, conditions, sections, and paragraphs. The invalidation of any term, condition, section or paragraph as a result of a legal action, brought by a person or entity not a party to this Agreement, shall not affect the validity or enforceability of the remaining provisions. Each of said remaining provisions shall remain in full force and effect. 37. TERMS OF AGREEMENT BARGAINED FOR: All terms, conditions and obligations contained in this Agreement have been bargained for and agreed upon by the parties in good faith. Further* the parties have entered into this Agreement on the advice of counsel. 38. THIS AGREEMENT SHALL SUPERSEDE PRIOR AGREEMENTS: This Agreement shall supersede any and all agreements heretofore entered into by the parties hereto. i -19- J IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate by its duly authorized officers and representatives as of the date first above written. CENTRAL CONTRA COSTA SANITARY DISTRICT By: Its: President of the Board of Directors By: L tL6.-/�ttratL/,� Its: Seq",t ry of the District Approved as t �",ohm: ,aAj:;j1 4Va:�l t!!!i--1o the 41,s ct f PLEASANT HILL BAY SHORE DISPOSAL Its: bwr✓E/� Approved as to form: /0y Counsel to pe Contractor ad t -20- i i I i i NORTH CONCORD/PACHECO/ CLYDE SOLID WASTE FRANCHISE AREA SUISUN �9y m Cw= rr = v �.-. i?:iyz» � is eoeo iw 4YDE MARTINEZ « ; % CONCORD PLEASANT d • HILL °"tt°" i a o \ ORINDA �" a, : '�\ yfALNUT CREEK LAFAYETTE a i • v \ I +'° ��� ALAMO � w • BLACKHAWK MORAGA eew • q� °�DANVILLE hw e r"4 w�• � e I l N °/ • z ls' NIPS • g DtSCLkKR:This mop shows gorwalizd boundaries drown according b information iprovided to CCCSD prior to the above date. Disvponaas should be resolved with the g nsppropriab agency and wit to CCCSD to be indudd in the next edition of this mop. I i RECEIVED 23 AUG 8 1995 CLERK BOARD OF SUPERVISORS As between the County and CCCSD, the County shall S allowed by law and except as delegated to CCCSWA for all solid waste management of the unincorporated areas of the CCCSD-VWM Uninco=rated Franchise Area set forth in this agreement beginning Mmh 1, extensien f the GGGSD X15 M fi mne :9e-g the end of the VWM franchise term. ARTICLE 3 Obligations of CCCSD 3.1 CCCSD shall delegate to the County and thereafter refrain from exercising its franchising authority in the CCCSD-VWM Unincorporated Franchise Area so long as the County exercises its franchising or equivalent authority (such as County's delegation to CCCSWA) within that area. This delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective r!Effeh ' 1996, a on the date of termination of the current franchise agreement with VWM, if extended, -whdeh extengie., provided that the conditions precedent in Article 8. section 8.1 have been satisfied. If said conditions precedent have not been so satisfied, this aareement and the delegation and/or agreement to refrain from further exercise of authority to franchise shall not be effective until said conditions precedent have been met. The District agrees that once the County joins the CCCSWA and the new ADDED 8/8/95 franchise .agreement with Browning Ferris Industries and Waste Management begin, the District will not challenge the County's right to franchise solid waste in unincorporated areas. 8 F:\DHS\TCS.DIR\0118669.06 r Ulu e COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ, CALIFORNIA Date: July 24 , 1995 To: Kent Alm and Tom Sites, SELLAR, HAZARD, SNYDER, KELLY, & FITZGERALD From: Victor J. Westman, County CounselM.M. . Re: "Transitional Agreements" Attached are my proposed hand written revisions to pages 2, 3 , 5, 6, 7, 8 , 9, 10, 11, 12 , and 14 of your June 12, 1995 draft for the CCCSD - VWM Franchise Area for your consideration. Similar revisions are, of course, proposed for the North Concord/Pacheco/ Clyde June 12 , 1995 Transitional Agreement; except that all references to "August 6, 1996" should be changed to "the expiration of the . CCCSD - PHBS Franchise, " and see additional proposed revisions to X9 . 1 on attached page 12 for this second agreement . If possibly, we should meet later this week to discuss these draft agreements . Depending on that meeting' s time and date, I will attempt to determine if Val Alexeeff can also attend. At this time, I can be available to meet Wednesday (7-26-95) from 3 : 30 to 5 : 00 p.m. or any time on Friday (7-28-95) except from 1 : 30 to 2 :30 p.m. VJW:bmw CC : Supervisor Gayle Bishop Supervisor Jeff Smith Val Alexeeff, GMEDA Attachments vjw-1:a:\tran-agr.me2 FILE URI I r / — - DRAFT—June-12,-1995 C. WHEREAS, Waste Management Collection and Recycling, Inc., through its 1 Division, Valley Waste Management (hereinafter "VWM"), is the current franchisee under the Valley Disposal Service, Inc. franchise agreement (hereinafter "VWM Franchise"); and V/ D. WHEREAS, the County,pursuant to California Government Code §2582Ras the authority to collect or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and E. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and F. WHEREAS Central Contra Costa Solid Waste Authority(hereinafter"CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised of member agencies of CCCSD and the City of Walnut Creek; and G. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and C,Max V/ H. WHEREAS, the County desires to have *e exclusive authority to franchise or contract for the collection of solid waste within the CCCSD-VWM Franchise Area;-and - � � �� r I. WHEREAS, the County, pursuant to California Government Code §25827�and other authority found in §40000 et seq. of the California Public Resources Code, has the 2 F:\DMS\TCS.DIR\0118669.03 z DRAFT- June 12, 1995 authority to collect or contract for the collection, or both of solid waste within the unincorporated areas of the County; and J. WHEREAS, the County has requested by action of the Board of Supervisors on to become a member of CCCSWA; and K. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and L. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas as well as constituents of other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and M. WHEREAS, CCCSD is willing to delegate its solid waste collection franchise authority to the County, providgJ that the County becomes a full and equal member of � y CCCSWA, and provided furtKer that the County * I`o CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of the Authority as set forth in the CCCSWA 1994-1995 Franchising RFP. V/ NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: C F:\DMS\TCS.DIR\0118669.03 DRAFT- June 12, 1995 1.5 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code _ §40191 and regulations promulgated thereunder, as amended from time to time. (The term "garbage" is the defined term used within the VWM Franchise, which term is defined therein and is relatively synonymous with the use of the term "solid waste" within this Agreement). ` Y` ARTICLE 2 � 'w Obligations of County 21 County agrees to apply for membership in, and become a full and equ4 signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously ' with the Effective Date of this Agreement. 2.2 ` Concurrent with the execution of this agreement, the County shall file a resolution with respect to the CCCSD-VWM Franchise Area delegating its franchising authority as of March 1, 1996 to the CCCSWA The County shall further execute any other reasonably necessary documents for the purpose of enabling the/CCCS,WA/p undertal�e its role as l�ej�a c P f A the regional franchising authority If the current CCCSD franchise agreement with VWM is extended for a period of time not to exceed one year, the effective date for the 5 F:\DMS\TCS.DIR\0118664.03 DRAFT-,lune 12, 1995 t.� delegation of the franchise authority to CCCSWA by the County shall be extended by a like period of time. l 2.3 County shall be responsiblifor all solid waste management of the unincorporated areas of the CCCSD-VWM Franchise Area set forth in this agreement beginning March 1, 1996 or such later date resulting from the extension of the CCCSD-VWM franchise. ARTICLE 3 .� ,t -41 Obligations of CCCSD CY: 3_1 / CCCSD shall delegate to the County and ther refrain from exercising its franchising authority in the CCCSD-VWM Franchi Area so long as the County exercises its franchising�authority within that ar This delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective March 1, 1996, or the date of termination of the current franchise agreement with VWM if extended, which extension may not exceed one year. 3.2 CCCSD shall be responsible for administration of the current VWM franchise agreement for the remaining term of said agreement, including any extension thereof not exceeding one year. In addition, CCCSD shall continue to administer all AB 939 diversion and recycling activities currently being undertaken pursuant to the VWM franchise agreement 6 F:\DMS\7CS.DIR\0118669.03 DRAFT- June 12, 1995 and otherwise currently being undertaken by CCCSD, or on it behalf within the CCCSD- VWM Franchise Area for the remaining term of said franchise, including any extension thereof not to exceed one year. 3 CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the VWM Franchise, as are available and requested by County. 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-VWM Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-VWM Franchise Area shall be subject to the jurisdiction of the CCCSW ti' 4.2 Y County and CCCSD shall; in good faith, participate as members of CCCSWA in the RFP process, including the executio Vof the franchise agreements providing for solid waste services within the CCCSWA jurisdictions contemplated by the RFP; provided that CCCSWA Board of Directors determines that such solid waste franchise agreements are 7 F:\DMS\TCS.DIR\0118669.03 i - DRAFT - June 12, 1995 acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 4.3 During the period between the effective date of this agreement and the effective date of a new franchise agreement covering the CCCSD-VWM Franchise Area entered into pursuant to the ongoing CCCSWA RFP process, County shall be allowed full opportunity to participate on staff and Board level, on all decisions with regard to processing the RFP proposals and with regard to entering into appropriate franchise and disposal agreements. 4.4 lC&O ,.r-7 7-f ' � �/ Ijf Q . CCCSD and County agree that except for the authority delegated herein to CCCSWA with respect to the provision of solid waste services, upon the termination of the VWM Franchise, including any extension not to exceed one year thereof, County shall be responsible for administration of all AB 939 activities including diversion and recycling within the CCCSD-VWM Franchise Area. ARTICLE 5 Franchise Fees 5.1 CCCSD has received all franchise fee payments pursuant to the VWM Franchise and shall receive any additional payments under any extension thereof not to exceed one year. County shall receive no portion of said franchise fees, however, County shall not be 8 F:\DMS\TCS.DIR\0118669.03 1 DRAFT - June 12, 1995 required to pay any membership fee for joining CCCSWA. The CCCSWA is funded annually on a tonnage basis. The CCCSWA fees with respect to the CCCSD-VWM Franchise Area have been paid to date, and will be paid by, or on behalf of, CCCSD during the remaining term of the lVWM franchise agreement and extension thereof ' A not to exceed one year. Thereafter,z for share of�� membership fees or costs due CCCSWA for the County areas within the CCCSWA jurisdictional boundaries. ARTICLE 6 Liability Issues 6.1 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical, Inc.. US District Court, Northern District of California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-VWM Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base in the existing CCCSD-VWM Franchise Area, notwithstanding the assignment/transfer of the 9 F:\DMS\TCS.DIR\0118669.03 DRAFT- June 12, 1995 franchise authority to the County. The proportionate share of responsibility for the customers in the exiss ng franchise area shall be based on the waste derived historically from the area. J -�U W� The County as the future franchising authority, either directly or through the CCCSWA, agrees that the proportionate share of any liability or settlement costs to be borne by the customer/constituent base of the CCCSD-VWM Franchise Area, and amounts sufficient h to pay for the net proportionate liability, if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provid;as a pass-through in �i4-­X1se -res -err le 1/ the r whether the liability for this wpa�steshed be directly,imposed on CCCSD and/or e County in the Acme Lawsuit.Z ,� olln-f fv'-�4 663 ��ws i ��'� t4 tx�,v7,., ?'�re�A� ;S /�sM4177` ���l•'7`' �rc� �� .,�i�U��� ,�-�►e.� -rain hIV Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current VWM franchise agreement or any extension 10 F:\DMS\TCS.DIR\0118669.03 lee, RAFI-June 12 1995 thereof not to exceed one year, or.arising from other solid waste administration activities within the CCCSD-VWM Franchise Area Burin such term, shall be the responsibility 7 g Po Y of CCCSD with respect to occurrences prior to the effective date of termination of the VWM franchise agreement.�County shall be responsible for any liability arising f 4 i ii �nr rences after said date o ,terminati of e VWM Franchise.e '.� - ARTICLE 7 Indemni 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any lil4lity arising from events specified in prior to the effective date of the termination of the current VWM franchise agreement or any extension thereof not to exceed one year. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 11 F:\DMS\TCS_DIR\0118669.03 DRAFT-dune 12, 1995 County shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties,, forfeitures, or fines as a result of any liability arising frodt events as specified in 6.4 24v)eoeo g after the effective date of the termination of the current VWM Franchise or any extension thereof not to exceed one yea ARTICLE 8 Conditions Precedent 8.1 The following shall be conditions precedent to the terms of this Agreement becoming legally effective (in addition to the proper execution of this Agreement by both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives f seated as full members of the CCCSWA Board; and (2) Cotvty shalT' al a such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994- 1995 RFP documents and map therefrom attached as Exhibit B) to the CCCSWA to 12 F:\DMS\TCS.DIR\0118669.03 DRAFT-.lune 12, 1995 If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 96 Attorney's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of the this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 9.7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7'shall-survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. V WA-1 �• ,e.P[h,r„ .�Gy! /i�-�s� c�c•oL-�s.fL `�P'•. ! 6 • /�/ .eta- %��'�'�/e"�'3� (�� ,,�'// � f:CDMS\TCS-DIR�01189-.03------ 14VY -- - r =' l DRAFT-June 12, 1995 (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall take such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994- 1995 RFP documents and map therefrom attached as Exhibit B) to the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994- 1995 RFP process. ARTICLE 9 Consent to Assi nment J 9.1 This agreement is subject to CCCSD obtaining consent by PHBS, Inc. to the assignment kliz�ftl of t e1Vfranchise agre ment from CCCSD to the County, said consent to be immfiwo Amer? 41�. G'�u t acceptable to.CCCSW Said consent shall include a provision from PHBS, Inc. that PHBS, Inc. will not bring suit or seek any other relief from CCCSD concerning any issues relating to the exclusivity of the franchise agreement and/or the jurisdictional boundaries of the franchise for all periods prior to the effective date of assignment of the PHBS franchise agreement. j-� ,5 wHsu A4.;C P14B SI) A/ gk� ej1pj4rUa 4- ) PWS' I 1.2 F:\DMS\TCS.DIR\0118828.03 DRAFT-.dune 12, 1995 TRANSITIONAL AGREEMENT BETWEEN COUNTY OF CONTRA COSTA AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS TO BE WITHIN THE JURISDICTION OF CCCSWA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for the transfer of the authority to manage collection of garbage, and franchising thereof. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection,transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512, and as otherwise provided in for in Public Resources Code §40000, et seq; and B. WHEREAS, CCCSD entered into a franchise agreement with Valley Disposal Service, Inc. granting Valley Disposal Service, Inc. the exclusive franchise to collect garbage within the CCCSD-VWM Franchise Area, defined below, for a term of ten years expiring February 28, 1996; and F:\DMS\TCS.DIR\0118669.03 . r DRAFT -June 12, 1995 C. WHEREAS, Waste Management Collection and Recycling, Inc., through its Division, Valley Waste Management (hereinafter "VWM"), is the current franchisee under the Valley Disposal Service, Inc. franchise agreement (hereinafter "VWM Franchise"); and D. WHEREAS, the County,pursuant to California Government Code§25827 has the authority to collect or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and E. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and F. WHEREAS Central Contra Costa Solid Waste Authority(hereinafter"CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised of member agencies of CCCSD and the City of Walnut Creek; and G. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and H. WHEREAS, the County desires to have the exclusive authority to franchise or contract for the collection of solid waste within the CCCSD-VWM Franchise Area; and I. WHEREAS, the County, pursuant to California Government Code §25827 and other authority found in §40000 et seq. of the California Public Resources Code, has the 2 F:\DMS\TCS.DIR\0118669.03 DRAFT-lune 12, 1995 authority to collect or contract for the collection, or both of solid waste within the unincorporated areas of the County; and 1. WHEREAS, the County has requested by action of the Board of Supervisors on to become a member of CCCSWA; and K. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and L. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas as well as constituents of other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and M. WHEREAS, CCCSD is willing to delegate its solid waste collection franchise authority to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegate to CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of the Authority as set forth in the CCCSWA 1994-1995 Franchising RFP. NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: 3 F:\DMS\TCS.DIR\0118669.03 DRAFT -June 12, 1995 ARTICLE 1 Definitions 1.1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at §40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-VWM Franchise Area "CCCSD-VWM Franchise Area" means and includes the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the VWM Franchise. The franchise area is further described by the 600 scale maps as referenced in the franchise agreement, 1.3 Effective Date "Effective Date" means the first date upon which this Agreement is legally effective following all signatures and approvals required by the parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is the agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 4 F:\DMS\TCS.DIR\0118669.03 DRAFT- June 12, 1995 1.5 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 and regulations promulgated thereunder, as amended from time to time. (The term "garbage" is the defined term used within the VWM Franchise, which term is defined therein and is relatively synonymous with the use of the term "solid waste" within this Agreement). ARTICLE 2 Obligations of County 2�1 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this Agreement. 2.2 Concurrent with the execution of this agreement, the County shall file a resolution with respect to the CCCSD-VWM Franchise Area delegating its franchising authority as of March 1, 1996 to the CCCSWA. The County shall further execute any other reasonably necessary documents for the purpose of enabling the CCCSWA to undertake its role as the regional franchising authority. If the current CCCSD franchise agreement with VWM is extended for a period of time not to exceed one year, the effective date for the 5 F:\DMS\TCS.DIR\0118669.03 DRAFT-,dune 12, 1995 delegation of the franchise authority to CCCSWA by the County shall be extended by a like period of time. 2.3 County shall be responsible for all solid waste management of the unincorporated areas of the CCCSD-VWM Franchise Area set forth in this agreement beginning March 1, 1996 or such later date resulting from the extension of the CCCSD-VWM franchise. ARTICLE 3 Obligations of CCCSD 3.1 CCCSD shall delegate to the County and thereafter refrain from exercising its franchising authority in the CCCSD-VWM Franchise Area so long as the County exercises its franchising authority within that area. This delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective March 1, 1996, or the date of termination of the current franchise agreement with VWM if extended, which extension may not exceed one year. 3.2 CCCSD shall be responsible for administration of the current VWM franchise agreement for the remaining term of said agreement, including any extension thereof not exceeding one year. In addition, CCCSD shall continue to administer all AB 939 diversion and recycling activities currently being undertaken pursuant to the VWM franchise agreement 6 F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 and otherwise currently being undertaken by CCCSD, or on it behalf within the CCCSD- VWM Franchise Area for the remaining term of said franchise, including any extension thereof not to exceed one year. CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the VWM Franchise, as are available and requested by County. 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-VWM Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-VWM Franchise Area shall be subject to the jurisdiction of the CCCSWA. 4.2 County and CCCSD shall; in good faith,participate as members of CCCSWA in the RFP process, including the execution of the franchise agreements providing for solid waste services within the CCCSWA jurisdictions contemplated by the RFP; provided that CCCSWA Board of Directors determines that such solid waste franchise agreements are 7 F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 4.3 During the period between the effective date of this agreement and the effective date of a new franchise agreement covering the CCCSD-VWM Franchise Area entered into pursuant to the ongoing CCCSWA RFP process, County shall be allowed full opportunity to participate on staff and Board level, on all decisions with regard to processing the RFP proposals and with regard to entering into appropriate franchise and disposal agreements. 4.4 CCCSD and County agree that except for the authority delegated herein to CCCSWA with respect to the provision of solid waste services, upon the termination of the VWM Franchise, including any extension not to exceed one year thereof, County shall be responsible for administration of all AB 939 activities including diversion and recycling within the CCCSD-VWM Franchise Area. ARTICLE 5 Franchise Fees 5.1 CCCSD has received all franchise fee payments pursuant to the VWM Franchise and shall receive any additional payments under any extension thereof not to exceed one year. County shall receive no portion of said franchise fees, however, County shall not be 8 F:\DMS\TCS.DIR\0118669.03 DRAFT -June 12, 1995 required to pay any membership fee for joining CCCSWA. The CCCSWA is funded annually on a tonnage basis. The CCCSWA fees with respect to the CCCSD-VWM Franchise Area have been paid to date, and will be paid by, or on behalf of, CCCSD during the remaining term of the VWM franchise agreement and any extension thereof not to exceed one year. Thereafter, County shall be responsible for its share of membership fees or costs due CCCSWA for the County areas within the CCCSWA jurisdictional boundaries. ARTICLE 6 Liability Issues 6.1 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical. Inc., US District Court, Northern District of California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-VWM Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base in the existing CCCSD-VWM Franchise Area, notwithstanding the assignment/transfer of the 9 F:\DNS\TCS.DIR\0118664.03 DRAFT-June 12, 1995 franchise authority to the County. The proportionate share of responsibility for the customers in the existing franchise area shall be based on the waste derived historically from the watershed area. 6.2 The County as the future franchising authority, either directly or through the CCCSWA, agrees that the proportionate share of any liability or settlement costs to be borne by the customer/constituent base of the CCCSD-VWM Franchise Area, and amounts sufficient to pay for the net proportionate liability, if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided as a pass-through in the rates, or otherwise funded through county action, whether the liability for this wasteshed be directly imposed on CCCSD and/or the County in the Acme Lawsuit. 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current VWM franchise agreement or any extension 10 F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 thereof not to exceed one year, or arising from other solid waste administration activities within the CCCSD-VWM Franchise Area during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of termination of the VWM franchise agreement. County shall be responsible for any such liability arising from occurrences after said date of termination of the VWM Franchise. ARTICLE 7 In emni 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above occurring prior to the effective date of the termination of the current VWM franchise agreement or any extension thereof not to exceed one year. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 11 F:\DMS\TCS.DIR\0118669.03 DRAFT- June 12, 1995 County shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above occurring after the effective date of the termination of the current VWM Franchise or any extension thereof not to exceed one year. ARTICLE S Conditions Precedent 8.1 The following shall be conditions precedent to the terms of this Agreement becoming legally effective (in addition to the proper execution of this Agreement by both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall take such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994- 1995 RFP documents and map therefrom attached as Exhibit B) to the CCCSWA to 12 F:\DMS\TCS.DIR\0118669.03 DRAFT-,June 12, 1995 enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994- 1995 RFP process. ARTICLE 9 Miscellaneous Provisions 9_1 Entire Agreement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 9.2 Section headings The article headings and section headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 9_3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 9.4 Amendment This agreement may not be modified or amended in any respect except by a writing signed by the parties hereto. 9.5 Severability 13 F:\DMS\TCS.DIR\0118669-03 DRAFT-June 12, 1995 If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 996 Attorney's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of the this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 997 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. 14 F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: , 1995 CENTRAL CONTRA COSTA SANITARY DISTRICT BY: Roger Dolan, General Manager Dated: , 1995 COUNTY OF CONTRA COSTA BY: APPROVED AS TO FORM: Kenton L. Alm, General Counsel Central Contra Costa Sanitary District General Counsel County of Contra Costa 15 F:\DMS\TCS.D1R\0118669.03 DRAFT -June 12, 1995 TRANSITIONAL AGREEMENT BETWEEN COUNTY OF CONTRA COSTA AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS OF THE NORTH CONCORDIPACHECO/CLYDE SOLID WASTE FRANCHISE AREA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for the transfer of the authority to manage collection, transport and disposal of solid waste, and franchising thereof within certain unincorporated areas within North Concord, Pacheco and Clyde. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection, transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512 and as otherwise provided for in Public Resources Code §§40", et seq; and F:\DMS\TCS.DIR\0118828.03 DRAFT - June 12, 1995 B. WHEREAS, CCCSD entered into a franchise agreement with Boyd Olney,Jr. dba Pleasant Hill Bayshore Disposal, a sole proprietorship (hereinafter "PHBS") dated April 1, 1986 granting PHBS the exclusive franchise to collect garbage within the CCCSD-PHBS Franchise Area, defined below, for a term of ten years expiring March 31, 1996 (hereinafter "PHBS Franchise") attached hereto as Exhibit A; and 1 C. WHEREAS, Pleasant Hill Bayshore Disposal, Inc. (hereinafter PHBS, Inc.) a wholly owned subsidiary of Browning-Ferris Industries of California, Inc. is now operating as the successor in interest to PHBS; and D. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and E. WHEREAS, Central Contra Costa Solid Waste Authority (hereinafter "CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised by member agencies of CCCSD and the City of Walnut Creek); and F. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and G. WHEREAS, the County desires to have the exclusive authority to franchise or contract for the collection of solid waste within the CCCSD-PHBS Franchise Area; and 2 F:\DMS\TCS.DIR\0118828.03 DRAFT - June 12, 1995 H. WHEREAS, the County,pursuant to California Government Code §25827 has the authority to collect or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and I. WHEREAS, the County has requested by action of the Board of Supervisors on to become a member of CCCSWA; and J. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and K. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas, as well as constituents of the other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and L. WHEREAS, CCCSD is willing to delegate its solid waste collection franchise authority to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegate to CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of the Authority set forth in the CCCSWA 1994-1995 Franchising RFP. NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: 3 f:\DMS\TCS.DIR\0118828.03 DRAFT - June 12, 1995 ARTICLE 1 Definitions 1.1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at §40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-PHBS Franchise Area "CCCSD-PHBS Franchise Area" means and includes the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the PHBS Franchise. The franchise area is further described by the 600 scale maps as referenced in the franchise agreement. 1.3 Effective Date "Effective Date" means the first date upon which this Agreement is legally effective following all signatures and approvals required by the parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is the agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 4 F:\DMS\TCS.DIR\0118828.03 DRAFT- June 121, 1995 1.5 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 and regulations promulgated thereunder, as amended from time to time. (The term "garbage" is the defined term used within the PHBS Franchise, which term is defined therein and is relatively synonymous with the use of the term "solid waste" within this Agreement.) ARTICLE 2 Obligations of CountX 2.1 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this Agreement. 2.2 Except as provided herein below, County shall be responsible for all solid waste management of the unincorporated areas of the CCCSD-PHBS Franchise Area as of the effective date of this agreement. 2.3 Upon the expiration of the current unextended term of the PHBS franchise agreement, County shall be responsible for administration of all AB 939 activities including diversion and recycling within the existing CCCSD-PHBS Franchise Area. 5 F:\DMS\TCS.DIR\0118828.03 DRAFT-June 12, 1995 ARTICLE 3 Obligations of CCCSD 3.1 CCCSD shall file a resolution assigning the PHBS Franchise for the remainder of its term and thereafter refraining from exercising its franchising authority within the CCCSD-PHBS Franchise Area so long as the County exercises its franchising authority within that area. This assignment and delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective on 1995. 3.2 CCCSD shall continue to administer all AB 939 diversion and recycling activities currently being undertaken pursuant to the PHBS franchise agreement and otherwise currently being undertaken by CCCSD, or on its behalf within the CCCSD-PHBS Franchise Area until March 31, 1996. CCCSD, notwithstanding the assignment of the franchise agreement to County, shall continue to provide this service for the balance of the franchise term, based on programs which have already been initiated, and planned and budgeted for. 3.3 CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the PHBS Franchise as are available and requested by County. 6 F:\DMS\TCS.DIR\0118828.03 DRAFT -June 12, 1995 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-PHBS Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-PHBS Franchise Area shall not be subject to the jurisdiction of the CCCSWA and it is not intended that this area be included within the CCCSWA jurisdictional boundaries, nor is it included in the 1994-1995 CCCSWA collection, transport and disposal franchise RFP process. 4.2 County and CCCSD shall, in good faith,participate as members of CCCSWA in the RFP process, including the execution of the franchise agreements providing for solid waste services within the CCCSWA jurisdiction contemplated by the RFP; provided that the CCCSWA Board of Directors determines that such solid waste franchise agreements are acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 7 F:\DMS\TCS.DIR\0118828.03 DRAFT - June 12, 1995 ARTICLE 5 Franchise Fees 51 CCCSD has received all franchise fee payments pursuant to the PHBS Franchise for the remainder of the current term expiring in March 31, 1996. Such fees have already been allocated by CCCSD to programs for carrying out AB 939 activities within the CCCSD- PHBS Franchise Area through the remaining term of the PHBS Franchise. County shall receive no payment of said previously collected franchise fees, however, nor shall County be required to pay any membership fee for participation in CCCSWA for the remainder of the term of the PHBS Franchise. [Alternative language: County shall receive $ of the current year's franchise fees under the PHBS Franchise, based on the Effective Date of the within Agreement.] Nothing in this -agreement is intended to limit County from imposing additional franchise fees or taking any other action in administration of the PHBS Franchise during its remaining term following the Effective Date of assignment of said franchise to the County. ARTICLE 6 Liability Issues 61 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation V. A1thin CD Medical, Inc., US District Court, Northern District of California, Case No. C91- 8 F:\DMS\TCS.DIR\0118828.03 DRAFT -June 12, 1995 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-PHBS Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base of the existing CCCSD-PHBS Franchise Area, notwithstanding the assignment/transfer of the franchise authority to the County. The proportionate share of responsibility for the constituents/customers in the CCCSD-PHBS Franchise Area shall be based on the waste derived historically from that wasteshed. 6.2 The County as the future rate setting entity, agrees that the proportionate share of any liability or settlement costs to be borne by the customer/constituent base of the CCCSD- PHBS Franchise Area, and amounts sufficient to pay for the net proportionate liability, if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided as a pass-through in the rates, or otherwise funded through County action, whether the liability for this wasteshed be directly imposed on CCCSD and/or the County in the Acme Lawsuit. 9 F:\DMS\TCS.DIR\0118828.03 DRAFT-June 12, 1995 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current PHBS franchise agreement or arising from other solid waste administration activities within the CCCSD-PHBS Franchise Area during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of assignment of the PHBS franchise agreement. County shall be responsible for any such liability arising from occurrences after said date of assignment of the PHBS Franchise. ARTICLE 7 Indemnity 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and 10 F:\DMS\TCS.DIR\0118828.03 DRAFT -June 12, 1995 damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above occurring prior to the effective date of the assignment the current PHBS franchise agreement. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 72 County shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for,injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above occurring after the effective date of the assignment of the current PHBS Franchise. ARTICLE 8 Conditions Precedent 8.1 The following shall be conditions precedent to the terms of this Agreement becoming legally effective (in addition to the proper execution of this Agreement by both parties): 11 F:\DMS\TCS.DIR\0118828.03 DRAFT -June 12, 1995 (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall take such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994- 1995 RFP documents and map therefrom attached as Exhibit B) to the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994- 1995 RFP process. ARTICLE 9 Consent to Assi ng_ment 9.1 This agreement is subject to CCCSD obtaining consent by PHBS, Inc. to the assignment of the franchise agreement from CCCSD to the County, said consent to be in form acceptable to CCCSD. Said consent shall include a provision from PHBS, Inc. that PHBS, Inc. will not bring suit or seek any other relief from CCCSD concerning any issues relating to the exclusivity of the franchise agreement and/or the jurisdictional boundaries of the franchise for all periods prior to the effective date of assignment of the PHBS franchise agreement. 1.2 F:\DMS\TCS.DIR\0118828.03 DRAFT -June 12, 1995 ARTICLE 10 Miscellaneous Provisions 10.1 Entire Agreement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 13 F:\DMS\TCS.DIR\0118828.03 DRAFT-June 12, 1995 10.2 Paragraph headings The article headings and paragraph headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 10.3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 10.4 Amendment This agreement may not be modified or amended in any respect except by a writing signed by the parties hereto. 10.5 Severability If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 10.6 Attorney's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of the this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover 14 F:\DMS\TCS.DIR\0118828.03 n DRAFT - June 12, 1995 its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 10.7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: 1995 CENTRAL CONTRA COSTA SANITARY. DISTRICT BY: Roger Dolan, General Manager Dated: , 1995 COUNTY OF CONTRA COSTA BY: APPROVED AS TO FORM: Kenton L. Alm, General Counsel Central Contra Costa Sanitary District General Counsel County of Contra Costa 15 F:\DMS\TCS.DIR\0118828.03 SELLAR,HAZARD,SNYDER,KELLY&FITZGERALD RUDD SELLAR A PROFESSIONAL LAW CORPORATION DEAN E.BARBIERI A.J.ENGLEKING(1924-1981) 1111 Civlc DRrvE,SUITE 300 ROBERT B.HUNTER,II JAMES L.HAZARD A.DUANE PINKERTON,II MARTIN T.SNYDER POST OFFICE BOX 3510 WILLIAM E.MANNING JOHN KELLY WALNUT CREEK,CALIFORNIA 94598 JILL LATCHAW JAMES V.FITZGERALD,III TELEPHONE(510)938-1430 THOMAS C.SITES RICHARD M.MCNEELY FAX(510)256-7508 ANNE D.JACOBBERGER KENTON L.ALM LORRAINE M.TALLARICO CHARLES A.WOOD,JR. MARK CORNELIUS August 2, 1995 RONI S.ANDRESEN Valentin Alexeeff, Director Growth Management and Economic Development Agency 651 Pine Street, No. Wing, Second Floor Martinez, California 94553-1213 Lillian Fujii Deputy County Counsel County Counsel Office 651 Pine Street, 9th Floor Martinez, California 94553 Reference: TRANSITIONAL AGREEMENTS Our File No.: C3100-010.46 Dear Mr. Alexeeff and Ms. Fujii: Enclosed are the two separate transitional agreements in final form, including changes requested by County Counsel's office, along with additional redlined revisions. The strikeout and underlining in these separate additional copies indicate changes subsequently requested by Roger Dolan. The changes for the most part were for purposes of clarification only, with the possible exception of changes made to section 6.2. These latter changes may be viewed as partially substantive in nature. We hope that you can proceed to place these Agreements on your agenda for the Board of Supervisor's meeting of August 8, 1995. We assume you will have no further comments. Thank you for your courtesy and cooperation in this matter. Your truly, SELLAR, HAZARD, SNYDER, KELLpTY/& FITZGERALDJ/ THOMAS C. SITES TCS:clb Enclosure REDLINE A TRANSITIONAL AGREEMENT BETWEEN COUNTY OF CONTRA COSTA AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS TO BE WITHIN THE JURISDICTION OF CCCS WA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for the transfer of the authority to manage collection of garbage, and franchising thereof. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection,transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512, and as otherwise provided in for in Public Resources Code §40000, et seq; and B. WHEREAS, CCCSD entered into a Franchise Agreement with Valley Disposal Service, Inc. granting Valley Disposal Service, Inc. the exclusive franchise to collect garbage within the GGGSD 3,0Aw F fan,. ise Af-ea, defiiied below, a portion of CCCSD's jurisdictional boundaries. including both incorporated and unincorporated areas, for a term of ten years expiring February 29, 1996; and F:\DMS\7CS.DIR\0118669.06 C. WHEREAS, Waste Management Collection and Recycling, Inc., through its Division, Valley Waste Management (hereinafter "VWM"), is the current franchisee under the Valley Disposal Service,Inc. Franchise Agreement (hereinafter "VWM Franchise"); and D. WHEREAS, the County, pursuant to California Government Code §25827, the California Constitution and Public Resources Code §§40,000 et sea, has the authority to collect or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and E. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and F. WHEREAS Central Contra Costa Solid Waste Authority(hereinafter"CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised of member agencies of CCCSD and the City of Walnut Creek); and G. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the First Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and H. WHEREAS, the County desires to have clear exclusive authority to franchise or contract for the collection of solid waste within the unincorporated sections of the current CCCSD-VWM F_franchise -4area; and i. > the Getifity, 2 F:\DMS\TCS.DIR\0118669.06 or-both of se4id waste > > H. WHEREAS, the County has requested by action of the Board of Supervisors on January 24. 1995 and thereafter to become a member of CCCSWA; and Y.J. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate'local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and I K. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities r jointly for all constituents of the unincorporated areas as well as constituents of other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and ML. WHEREAS, CCCSD is willing to delegate cede its solid waste collection franchise authority for the unincorporated areas to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegates (in the same manner as the City of Walnut Creek for its City area) to CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of CCCSWA asset forth in the CCCSWA November 1994-1993 Franchising RFP; and AFM. WHEREAS, County previously indicated its intent to directly assume franchise administration in unincorporated areas within CCCSD on and after the expiration of the Franchise Agreement (CCCSD-PIIBSVWM Franchise) on February 29. 1996; and 3 F:\DMS\7CS.DIR\0118669.06 ON. WHEREAS, CCCSD disputes the County authority to assume franchise administration in the unincorporated areas within CCCSD. NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: r 4 F:\DMS\TCS.DIR\0118669.06 ARTICLE 1 Definitions 1.1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at §40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-VWM Unincor,,,porated Franchise Area "CCCSD-VWM Unincorporated Franchise Area" means and includes only the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the VWM Franchise. The franchise area is further r described by the 600 scale maps as referenced in the Franchise Agreement. 1.3 Effective Date "Effective Date" means the first date upon which this Agreement is legally effective following all signatures and approvals required by the parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is the agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 5 F:\DMS\TCS.DIR\0118669.06 n 1.5 Franchise Agreement "Franchise Agreement" or "VWM Franchise," for purposes herein means the "Agreement for Collection Removal and Disposal of Garbage Zone 2 " between Valley Disposal Services Inc and CCCSD dated March 1. 1986, 1.6 RFP, RFP Process "RFP" and "RFP Process" means the process by which CCCSWA solicited proposals for solid waste handling and related AB 939 activities pursuant to a document dated November. 1994, entitled Central Contra Costa Solid Waste Authority ReQuest for ProMsals for Integrated Solid Waste Management Services and the receipt and evaluation process by CCCSWA of responses to the request for proposals. Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 and regulations promulgated thereunder, as amended from time to time,,including green waste and recyclables. (The term "garbage" is the defined term used within the NWAI Franchise Agreement, which term is defined therein at section 1(e) and is felatively synonymous with the use ef th term "solid waste" within this Agreement). 6 F:\DMS\TCS.DIR\0118669.06 ARTICLE 2 Obligations of County 2.1 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this Agreement. 2.2 Concurrent with the.execution of this agreement, the County shall file a resolution with r respect to the CCCSD-VWM Unincorporated Franchise Area delegating its franchising authority as of March 1, 1996 to the CCCSWA at least in the same manner as the City of Walnut Creek as of the date this Agreement is approved by the Board of Supervisors. The County shall further execute any other reasonably necessary documents for the purpose of enabling the CCCSWA to undertake its role as the regional franchising authority as specified in the above noted Walnut Creek delegation. If the current CCCSD Franchise Agreement with VWM (Franchise Agreement) is extended for a period of time not to exceed one year, the effective date for the delegation of the franchise authority to CCCSWA by the County shall be extended by a like period of time; hereinafter. said term of the franchise and any extension not to exceed one year shall be collectively referred to as the "franchise term" or "term of the franchise." 7 F:\DMS\TCS.DIR\0118669.06 2.3 As between the County and CCCSD, the County shall be responsible to the extent allowed by law and except as delegated to CCCSWA for all solid waste management of the unincorporated areas of the CCCSD-VWM Uninco=rated Franchise Area set forth in this agreement beginning , ,.,,.,,,io of the GGGSD 3,Wvq l c...e d-s .at the end of the VWM franchise term. ARTICLE 3 Obligations of CCCSD 3.1 CCCSD shall delegate to the County and thereafter refrain from exercising its franchising authority in the CCCSD-VWM Unincorporated Franchise Area so long as the County exercises its franchising or equivalent authority (such as County's delegation to CCCSWA) within that area. This delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective rafeh 1, 1996, e on the date of termination of the current franchise agreement with VWM, if,..,«,,..ded, w :,.i.. a -te provided that the conditions precedent in Article 8. section 8.1 have been satisfied. If said conditions precedent have not been so satisfied, this agreement and the delegation and/or agreement to refrain from further exercise of authority to franchise shall not be effective until said conditions precedent have been met. 8 F:\DMS\TCS.DIR\0118669.06 3.2 CCCSD shall be responsible for administration of the current WALN 4Franchise eA_greement for the remaining term of said agreement, In addition, CCCSD shall continue to administer all AB 939 diversion and recycling activities currently being undertaken pursuant to the *WN €Franchise a,A_greement and otherwise currently being undertaken by CCCSD, or on it behalf within the CCCSD-VWM Unincorporated Franchise Area for the remaining term of said Franchise Agreement.., ' . 3 CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the VVA Franchise Agreement, as are available and requested by County. 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-VWM Unincorporated Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-VWM Uninco orated Franchise Area shall be subject to the jurisdiction of the CCCSWA in accordance with the County's aforenoted delegation. 9 F:\DMS\TCS.DIR\0118669.06 42 County and GGGSD shall, in good faith, participate as a members of CCCSWA in the RFP process, including the execution (along with the City of Walnut Creek) of the franchise agreements providing for solid waste services within the CCCSWA jurisdictions contemplated by the RFP; provided that CCCSWA Board of Directors determines that such solid waste franchise agreements are acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 3 During the period between the effective date of this agreement and the effective date of a new franchise agreement covering the CCCSD-VWM Unincorporated Franchise Area entered into pursuant to the ongoing CCCSWA RFP pProcess, County shall be allowed full opportunity to participate on staff and Board level, on all decisions with regard to processing the RFP proposals and with regard to entering into appropriate franchise and disposal agreements. 4.4 CCCSD and County agree that except for the authority delegated herein to CCCSWA with respect to the provision of solid waste services, upon the termination of the 4 Franchise, Agreement, ' , County shall (as and to the extent provided and allowed by law) be responsible for administration of all AB 939 activities including diversion and recycling within the CCCSD-VWM Unincorporated Franchise Area. 10 F:\DMS\TCS.DIR\0118669.06 ARTICLE 5 Franchise Fees CCCSD has received all franchise fee payments pursuant to the Franchise Agreement and shall receive any additional payments during the term of said franchise. County shall receive no portion of said franchise fees, however, County shall not be required to pay any membership fee for joining CCCSWA. The CCCSWA expenses are prorated to Member Agencies is €aged annually on a tonnage basis. The CCCSWA fees with respect to the CCCSD- VWM Uninco orated Franchise Area have been paid to date, and will be paid by, or on behalf of, CCCSD during the remaining term of the €Franchise eA_greement and any extension thereof not to exceed one year. Thereafter, CCCSD will have no responsibility for County's share of membership fees or costs due CCCSWA for the £etifity unincorporated areas within the CCCSWA jurisdictional boundaries. 5.2 If the VWM franchise is extended beyond March 1, 1996. the County may impose, in its discretion, such additional franchise fees as may be allowed by law. CCCSD agrees to set rates to provide for such fees and direct VWM to collect such County franchise fees during the remaining term of said Franchise Agreement. 11 F:\DMS\7CS.DIR\0118669.06 ARTICLE 6 Liability Issues 61 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical. Inc.. US District Court, Northern District of California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-VWM Unincorporated Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base in the existing CCCSD-VWM Unincorporated Franchise Area, notwithstanding the assignment/transfer of the franchise authority to the County. The proportionate share of responsibility for the customers in the existing franchise area shall be based on the waste derived historically from the wasteshed area. By entering into this Agreement, the County is not assuming any responsibility or liability for the defense of the Acme lawsuit for this wasteshed area. 12 F:\DMS\TCS.DIR\0118669.06 6.2 The County as the future franchising authority, either directly or through the CCCSWA, agrees that the proportionate share of any liability or settlement costs (including_a proportionate share of net legal costs and expenses incurred after the termination of the Franchise Agreement) to shall be borne by the customer/constituent base of the CCCSD- VWM Unincorporated Franchise Area, and amounts sufficient to pay for the net proportionate liability, costs and expenses, if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided and collected to the fullest extent allowed by law as a pass-through in the collector franchise rates for the Area, whether the liability and/or settlement costs for this wasteshed be directly imposed on CCCSD and/or the County in the Acme Lawsuit. If deemed appropriate, the County may (at its discretion) collect such proceeds as charges or fees imposed at any County franchised landfill and/or transfer station facility receiving solid waste from the VWM- CCCSD Unincorporated Franchise Area. wasteshed. 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 13 F:\DMS\TCS.DIR\0118669.06 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current VVA €Franchise eA_greement or any ex ension thereof not te emeeed one year-, r arising from other solid waste administration activities within the CCCSD-VWM Unincorporated Franchise Area as a result of occurrences during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of termination of the VWM Franchise Agreement. As between County and CCCSD, County shall be responsible for any liability arising as a result of occurrences after said date of termination of the VWM Franchise and during County franchise administration. In no event is County, by entering into this Agreement assuming any legal liability for any period prior to the said Franchise Agreement termination for the seRd wasteshed area. except as specifically set forth above. ARTICLE 7 Indemni 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 arising at any time from occurrences prior to the effective date of the termination of the current I►AR4 14 F:\DMS\TCS.DIR\0118669.06 €Franchise eAgreement. . The liabilities, damages and expenses, as set forth.herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 County shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above arising from occurrences after the effective date of the termination of the current N Franchise Agreement. ARTICLE 8 Conditions Precedent 8.1 The following shall be conditions precedent to the terms of this Agreement becoming legally effective (in addition to the proper execution of this Agreement by both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall in the same manner as the City of Walnut Creek take such legal action as may be required to delegate the . 15 F:\DMS\TCS.DIR\0118669.06 County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994-1995 RFP documents and the map attached hereto as Exhibit A). to the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994-1995 RFP process. ARTICLE 9 Miscellaneous Provisions 9_1 Entire Agreement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 9.2 Section headings The article headings and section headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 9_3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 9.4 Amendment This agreement may not be modified or amended in any respect except by a writing signed by the parties hereto. 16 F:\DMS\TCS.DIR\0118669.06 9 Severability If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 9_6 Attorney's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of the this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 9_7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. 9_8 Future Franchising Authority Except for the up-to-one-year extension period allowed by this agreement for CCCSD administration of the current VWM franchise, it has been and remains the County's position that on and after the expiration of the GGGSD P! Franchise Agreement (February 29. 1996), CCCSD has no franchise authority for the unincorporated areas covered by this agreement to the extent the County thereafter franchises and/or regulates (e.g., delegates, etc.) for said areas. Nothing herein shall be construed as a waiver or modification of past County actions or its position in this regard, except for the said up- 17 F:\DMS\TCS.D1R\0118669.G6 to-one-year extension period. It is understood and recognized that CCCSD does not agree with this County position. The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: 1995 CENTRAL CONTRA COSTA SANITARY DISTRICT BY: Roger Dolan, General Manager Dated: 1995 COUNTY OF CONTRA COSTA BY: APPROVED AS TO FORM: Kenton L. Alm, General Counsel Central Contra Costa Sanitary District General Counsel County of Contra Costa 18 F:\DMS\TCS.DIR\0118669.06 rl REDLINE B TRANSITIONAL AGREEMENT BETWEEN COUNTY OF CONTRA COSTA AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS OF THE NORTH CONCORD/PACHECO/CLYDE SOLID WASTE FRANCHISE AREA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for the transfer of the authority to manage collection, transport and disposal of solid waste, and franchising thereof within certain unincorporated areas within North Concord, .Pacheco and Clyde. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection, transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512 and as otherwise provided for in Public Resources Code §§40000, et seq; and B. WHEREAS, CCCSD entered into a franchise agreement with Boyd Olney, Jr. dba Pleasant Hill Bayshore Disposal, a sole proprietorship (hereinafter "PHBS") dated April 1, 1986 granting PHBS the exclusive franchise to collect garbage within the CCCSD-PHBS Franchise Area, defined below, for a term of ten years expiring March 31, 1996 (hereinafter "PHBS Franchise") attached hereto as Exhibit A; and C. WHEREAS, Pleasant Hill Bayshore Disposal, Inc. (hereinafter PHBS, Inc.) a wholly owned subsidiary of Browning-Ferris Industries of California, Inc. is now operating as the successor in interest to PHBS; and D. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and E. WHEREAS, Central Contra Costa Solid Waste Authority (hereinafter "CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised by member agencies of CCCSD and the City of Walnut Creek); and F. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the First Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and G. WHEREAS, the County desires to have the clear exclusive authority to franchise or contract for the collection of solid waste within the CCCSD-PHBS Franchise Area; and H. WHEREAS, the County, pursuant to California Government Code §25827, the California Constitution and Public Resources Code §§40,000 es . has the authority to collect or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and 2 F:\DMS\TCS.DIR\0118828.06 1. WHEREAS, the County has requested by actions of the Board of Supervisors on Janu 24. 1995 and thereafter to become a member of CCCSWA; and 1. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and K. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas as well as constituents of the other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and L. WHEREAS, CCCSD is willing to delegate its solid waste collection franchise authority to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegates (in the same manner as.the City of Walnut creek for its City area) to CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of the Atithefity CCCSWA set forth in the CCCSWA November, 1994-14 Franchising RFP., exclusive of the unincorporated areas within the CCCSD-PHBS Franchise Area; and M. WHEREAS, County previously indicated its intent to directly assume franchise administration in unincorporated areas within CCCSD on and after the expiration of the CCCSD- PHBS Franchise Agreement; and N. WHEREAS, CCCSD disputes County authority to assume franchise administration in the unincorporated areas within CCCSD. 3 F:\DMS\TCS.DIR\0118828.06 NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: ARTICLE 1 Definitions 1.1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at §40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-PHBS Franchise Area "CCCSD-PHBS Franchise Area" means and includes the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the PHBS Franchise Agreement. The franchise area is further described by the 600 scale maps as referenced in the franchise agreement. 1.3 Effective Date "Effective Date" means the first date upon which this Agreement is legally effective following all signatures and approvals required by the parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is the agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 4 F:\DMS\TCS.DIR\011882$.06 1.5 PHBS Franchise Agreement "PHBS Franchise Agreement." for puMQses herein, means the "Agreement for Collection Removal and Disposal of Garbage. Zone 3." dated April 1. 1986. between PHBS and CCCSD, 1,6 RFP, RFP Process "RFP" and "RFP Process" means the process by which CCCSWA solicited proposals for solid waste handling and related AB 939 activities pursuant to a document dated November, 1994, entitled Central Contra Costa Solid Waste Authority Rmuest for Pro2gsals for Integrated Solid Waste Management Services and the receipt and evaluation process by CCCSWA of responses to the request for proposals 1.57 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 an"�regulations promulgated thereunder, as amended from time to time,including green waste and recyclables. (The term "garbage" is the defined term used within the PHBS Franchise Agreement, which term is defined therein at section I(e) and is relay synonymous with the term "solid waste" within this Agreement.) 5 F:\DMS\TCS.DIR\0118828.06 AkTICLE 2 Obligations of County 2.1 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this Agreement. 22 Except as provided herein below, as between the County and CCCSD, the County shall r be responsible to the full extent allowed by law for all solid waste management of the unincorporated areas of the CCCSD-PHBS Franchise Area as of the effective date of this agreement. County shall accUt the assignment of the PHBS Franchise Agreement from CCCSD by the date specified in section 3.1. 2.3 Upon the expiration of the current unextended term of the PHBS 4Franchise aAgreement, as between the County and CCCSD, the County shall be responsible to the full extent allowed by law for administration of all AB 939 activities including diversion and recycling within the existing CCCSD-PHBS Franchise Area. As of the effective date of this agreement. the County shall assume any and all responsibilities for AB 939 activities, except for those specifically reserved in section 3.2 to CCCSD for the remainder of the PHBS Franchise Agreement term. 6 F:\DMS\TCS.DIR\0118828.06 ARTICLE 3 Obligations of CCCSD 3.1 CCCSD shall file a resolution assigning the PHBS Franchise Agreement for the remainder of its term and thereafter refraining from exercising its franchising authority within the CCCSD-PI-IBS Franchise Area so long as the County exercises its franchising authority within that area. This assignment and delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective on October 1 1995• provided that the conditions precedent in Article 8. section 8.1 have been satisfied. If said conditions precedent have not been so satisfied, this agreement and the delegation and/or agreement to refrain from further exercise of authority to franchise shall not be effective until said conditions precedent have been met. 3.2 CCCSD_ shall continue to administer all those AB 939 diversion and recycling activities currently being undertaken pursuant to the PHES fEranchise$Agreement and otherwise currently being undertaken by CCCSD, or on its behalf within the CCCSD-PHBS Franchise Area until March 31, 1996. CCCSD, notwithstanding the assignment of the franchise agreement to County, shall continue to provide this service for the balance of the franchise term, based on fQ_r programs which have already been initiated,and plat and b such as the home composting workshops and current recyclinE promotion. 7 F:\DMS\TCS.DIR\0118828.06 CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the PHBS Franchise Agreement as are available and requested by County. 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-PHBS Franchise Area. ARTICLE 4 r Participation in CCCSWA 4.1 The CCCSD-PHBS Franchise Area shall not be subject to the jurisdiction of the CCCSWA and it is not intended that this area be included within the CCCSWA jurisdictional boundaries, nor is it included in the 1994-1995 CCCSWA collection, transport and disposal franchise RFP process. 4.2 County afid GGGS , shall, in good faith, participate as a members of CCCSWA in the RFP process, including the execution (along with the City of Walnut Creek) of the franchise agreements providing for solid waste services within the CCCSWA jurisdiction contemplated by the RFP; provided that the CCCSWA Board of Directors determines that such solid waste franchise agreements are acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 8 F:\DNS\TCS.DIR\0118828.06 ARTICLES Franchise Fees CCCSD has received all franchise fee payments pursuant to the PHBS Franchise Agreement for the remainder of the current term expiring in March 31, 1996, which franchise aareement shall not be extended. Such fees have already been allocated by CCCSD to programs for carrying out AB 939 activities within the CCCSD-PHBS Franchise Area through the remaining term of the PHBS Franchise Agreement. County shall receive no payment of said previously collected franchise fees, however, nor shall County be required to pay any membership fee for participation in CCCSWA for the remainder of the term of the PHBS Franchise Agreement. Nothing in this agreement is intended to limit County from imposing additional franchise fees or taking any other action in administration of the PHBS Franchise Agreement during its remaining term following the Effective Date of assignment of said franchise to the County. ARTICLE 6 Liability Issues 6.1 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical, Inc., US District Court, Northern District of California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed 9 f:\DHS\TCS.DIR\0118828.06 or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-PHBS Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base of the existing CCCSD-PHBS Franchise Area, notwithstanding the assignment/transfer of the franchise authority to the County. The proportionate share of responsibility for the constituents/customers in the CCCSD-PHBS Franchise Area shall be based on the waste derived historically from the wasteshed area. By entering this Agreement, the County is not assuming any responsibility or liability for the defense of the Acme lawsuit for this r wasteshed area. 6.2 The County as the future rate setting entity, agrees that the proportionate share of any liability or settlement costs (including a proportionate share of net legal costs and' expenses, incurred after the termination of the Franchise Agreement) to shall be borne by the customer/constituent base of the CCCSD-PIBS Franchise Area, and amounts sufficient to pay for the net proportionate liability, costs and expenses. if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided and collected to the fullest extent allowed by law as a pass-through in the collector franchise rates for the area, whether the liability and/or settlement costs for this wasteshed be directly imposed on CCCSD and/or the County in the Acme Lawsuit. If deemed appropriate, the County may (at its discretion) collect such proceeds as charges 10 F:\DMS\TCS.DIR\0118828.06 or fees imposed at any County franchised landfill and/or transfer station facility receiving solid waste from the PHBS Franchise srea��d. 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively deny all liability with respect to the Acme Lawsuit and deny any and all responsibility . for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current PHBS -fFranchise eA_greement or arising from other solid waste administration activities within the CCCSD-PHBS Franchise Area as a result of occurrences during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of assignment of the PHBS -fFranchise $A_greement, as set forth in section 3.1. As between County and CCCSD, County shall be responsible for any liability arising as a result of occurrences after said date of assignment of the PHBS Franchise Agreement and during County franchise administration. In no event is County, by entering this Agreement, assuming any legal liability for the said wasteshed area for any period prior to the said effective date of assignment of the PHBS F_franchise Agreement except as specifically set forth above. 11 F:\DMS\TCS.DIR\0118828.06 ARTICLE 7 In. ,mnity 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 arising at any time from occurrences prior to the effective date of the assignment the current PHBS franchise agreement. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 County shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above arising from occurrences after the effective date of the assignment of the current PHBS Franchise Aareement. 12 F:\DHS\TCS.DIR\0118828.06 ARTICLE 8 Conditions Precedent $1 The following shall be conditions precedent to the terms of this Agreement becoming legally effective (in addition to the proper execution of.this Agreement by both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall in the same manner as the City of Walnut Creek take such legal action as may be required to delegate the ' County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994-1995 RFP documents and the map attached hereto as Exhibit B) to the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994-1995 RFP process. ARTICLE 9 Consent to Assignment 9.1 This agreement is subject to CCCSD obtaining consent by PHBS, Inc. to the assignment of the franchise agreement from CCCSD to the County, said written consent to be acceptable to and approved by CCCSD and the County. Said consent shall include a provision from PHES, Inc. that PHBS, Inc. will not bring suit or seek any other relief from CCCSD concerning any issues relating to the exclusivity of the franchise agreement 13 F:\DMS\TCS.DIR\0118828.06 and/or the jurisdictional boundaries of the franchise for all periods prior to the effective date of assignment of the PHBS franchise agreement. If this consent is not obtained and approved by CCCSD and the County by the expiration (March 31, 1996) of the CCCSD- PHIS Franchise Agreement, nothing herein shall be construed to prevent the County's exercising of whatever franchising authority it has in the Franchise Area. ARTICLE 10 Miscellaneous Provisions 10.1 Entire Agreement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 10.2 Paragraph headings The article headings and paragraph headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 10.3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 10.4 Amendment This agreement may not be modified or amended in any respect except by a writing signed by the parties hereto. 14 F:\DMS\TCS.DIR\0118828.06 10=5 Severability If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 15 F:\DMS\TCS.D1R\011882S.06 1 0.6 Attorney's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of the this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 10.7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. 10.8 Future Franchising Authority Except for the up-to-one-year extension period allowed by a separate County-CCCSD Transitional Agreement for CCCSD administration of the current Waste Management Collection and Recycling, Inc. (Valley Waste Management) franchise, it has been and remains the County's position that on and after the expiration of the CCCSD-PHBS Franchise Agreement, CCCSD has no franchise authority for the unincorporated areas covered by this agreement to the extent the County thereafter franchises and/or regulates (e.g., delegates, etc.) for said areas. Nothing herein shall be construed as a waiver or modification of past County actions or its position in this regard, except for the said up- 16 F:\DMS\TCS.DIR\0118828.06 to-one-year extension period. It is understood and recognized that CCCSD does not agree with this County position. The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: 1995 CENTRAL CONTRA COSTA SANITARY DISTRICT BY: Roger Dolan, General Manager Dated: 1995 COUNTY OF CONTRA COSTA BY: APPROVED AS TO FORM: Kenton L. Alm, General Counsel Central Contra Costa Sanitary District General Counsel County of Contra Costa 17 F:\DMS\TCS.DIR\0178828.06 COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ, CALIFORNIA Date: March 8, 1996 To: Anne Cervelli, Clerk of the Board From: Victor J. Westman, County Counsel �( By: Lillian T. Fujii, Deputy County Counsel Re: Resolution Authorizing Central Contra Costa Solid Waste Authority to enter Solid Waste Collection Agreements. Pursuant to your request, I contacted the Community Development Department and was advised by Mary Flemming that "August 3, 1995" is the date to be filled in the first two blanks of the subject draft resolution, as well as the blank on page three of the Growth Management Director's and the County Counsel's August 8, 1995 report to the Board on the same subject. (August 3, 1995 is the date of the draft franchise agreement prepared by the Contra Costa County Solid Waste Authority.) The effective dated of the resolution is the date of its adoption. Attach.: 1) Copy, August 8, 1995 Board Report from Director of Growth Managementand County Counsel concerning Joining Central Contra Costa Solid Waste Authority; 2) Draft Resolution. cc w/ Attach.: Mary Flemming, Community Development Department 5.jpa-res.95 SD. 11 TO: BOARD OF SUPERVISORS FROM: Val Alexeeff, Director, Growth Management and Economic Development Victor J. Westman, County Counsel k�� �i s DATE: August 8, 1995 SUBJECT: Joining Central Contra Costa Solid Waste Authority SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: Consider actions to be taken on: 1 . First Amended Joint Exercise of Powers Agreement for the Central Contra Costa Solid Waste Authority and ratification of County membership therein. 2. Resolution Authorizing Central Contra Costa Solid Waste Authority to enter Solid Waste Collection Agreements and delegating County franchise authority. 3 . Transitional Agreements Between County and Central Contra Costa Sanitary District for the Collection of Solid Waste: A. Within Unincorporated Areas of North Concord, Pacheco and Clyde. B. Within Unincorporated Areas to be within the Jurisdiction of the Authority (unincorporated South County areas of Danville, Alamo , etc. ) . Consider County' s acceptance of the terms of this Agreement (unincorporated South County area) being made contingent upon the Central Contra Costa Sanitary District agreeing, in writing, that an amount equal to the franchise fees established by the County for the said area for the period commencing April 1, 1996 be paid by the District to the County. 4 . Authorizing staff (GMEDA Director and County Counsel) to review final documents for conformance with the Board' s action as (See continuation) CONTINUED ON ATTACHMENT: xx YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Orig: Community Development Department ATTESTED cc: County Counsel PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR 5a: \centrljp. 895 BY DEPUTY RECOMMENDATIONS - CONTINUED: well as take any ministerial action necessary to finalize the aforementioned membership in the Central Contra Costa Solid Waste Authority (e.g. , filling in dates in the final document) , and authorizing GMEDA Director to file any further documents necessary for membership in said Authority with the Clerk of the Board. FISCAL IMPACT: Short term: Under the Transitional Agreement for the North Concord/Pacheco/Clyde area, the County would assume franchising responsibility without benefit of franchise fees. Long term: The Franchise Agreement to be issued to BFI pursuant to the RFP process provides for the County' s collection of franchise fees for the unincorporated areas. BACKGROUND/REASONS FOR RECOMMENDATIONS: For the past several months, the Board' s Solid Waste Committee has been participants at meetings with the Central Contra Costa Solid Waste Authority ("Authority") concerning the County' s joining the JPA for the provision of solid waste services in the unincorporated territory in the Central/South County area. Past substantial concerns of County staff have been addressed in the current documents (most of which documents have been before the Committee) . These documents are briefly discussed in the following paragraphs. 1. First Amended Joint Exercise of Powers Agreement for the Authority. As the Board members are aware, the Authority (currently the City of Walnut Creek and the Central Contra Costa Sanitary District ("Sanitary District") ) issued a Request For Proposals (RFP) for the provision of solid waste collection service within the territories represented by the member agencies, including the unincorporated territory within the Sanitary District' s jurisdiction. The Board' s Solid Waste Ad Hoc Committee has been the principal participants in meetings with the Authority for the County' s joining the JPA (for the unincorporated territory within the jurisdiction of the Sanitary District) and subsequent or concurrent delegation to the Authority, of the County' s franchising authority in the unincorporated territory within the Sanitary District' s jurisdiction. As the Board members are also aware, Browning Ferris Industries submitted the lowest bid for solid waste collection services, and Valley Waste Management submitted the lowest bid for recycling services. 2. Resolution Authorizing Authority to enter Solid Waste Collection Agreement and Delegations. The Resolution Authorizing the Authority to enter Solid Waste Collection Agreements delegates to the Authority for a term of eight years (with a possibility of this term being extended for two years) , the County' s franchising authority for specified unincorporated areas within the jurisdiction of the Sanitary District. The resolution also delegates to the Authority, implementation of the County' s Source Reduction and Recycling Element ("SRRE") and Household Hazardous Waste Element ("HHWE") for specified unincorporated areas within the jurisdiction of the Sanitary District. Delegation is subject to the limitation that any franchise r agreement entered into by the Authority shall be substantially similar to franchise agreements prepared by the Authority dated , appropriate amendments to the Joint Exercise of Authority Agreement being adopted, and upon the County reserving the right to withdraw its delegation at any time, provided the County must continue to administer the Authority negotiated and entered contract. The above-referenced franchise agreement provides for the county' s levy of franchise fees in the unincorporated area. 3. Transitional Agreements Between County and Central Contra Costa Sanitary District: A. North Concord, Pacheco, Clyde This agreement provides for the Sanitary District ' s assigning its franchise with Pleasant Hill Bayshore Disposal to the County for the remainder of the franchise term (March 31, 1996 expiration date) . The Sanitary District would continue to administer AB 939 recycling activities for the area, including activities being undertaking pursuant to the Sanitary District' s franchise agreement with Pleasant Hill Bayshore Disposal, Inc. , until the franchise' s termination on March 31, 1996. B. Unincorporated South County Area (Danville, Alamo, etc. ) This agreement provides for the Sanitary District delegating to the County (for the County' s delegation to the JPA) , the District' s authority to franchise solid waste collection service in the unincorporated south county area within the jurisdictional territory of the Sanitary District, upon the expiration of the current Sanitary District - Valley Waste Management franchise (March 31, 1996 expiration date) . The Sanitary District will retain all franchise fees and will administer the franchise until its termination on March 31, 1996. This transitional agreement also provides for a one-year extension of the Sanitary District-Valley Waste Management franchise. The County' s approval of this transitional agreement should be made contingent on the County receiving franchise fees from this area commencing April 1, 1996. 4 . Final Transitional Agreements . On Tuesday, August 1, 1995, we were advised by an attorney for the Sanitary District that on Friday, July 28, the Sanitary District made further changes to the transitional agreements. As of the date of the writing of this report, County staff has not been advised that the only "conceptual" change requested concerns allocation of Acme litigation costs. However, final drafts have not been presented to County staff for presentation to the Board. Prior to this latest communication, County staff reviewed drafts of the documents, and had presented staff' s comments (based upon Committee expressed concerns) to the District ' s legal counsel . If final documents are received from the District before Tuesday, August 8, 1995, staff will submit them to the Clerk of the Board for inclusion in the Board' s packet. 5a: \cenjpa8 . 95 i BOARD OF SUPERVISORS, CONTRA COSTA COUNTY, CALIFORNIA Re: Authorizing Central Contra Costa RESOLUTION NO. 95/ Solid Waste Authority to enter Solid Waste Collection Agreements The Board of Supervisors of Contra Costa County RESOLVES THAT: WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (hereinafter"AB 939"), as set forth in Public Resources Code §§ 40000 et seq., as it may be amended from time to time, has declared that it is within the public interest to authorize and require local agencies, including cities, to make adequate provisions for solid waste handling within their jurisdiction; and WHEREAS, County of Contra Costa, pursuant to Public Resources Code § 40000, Government Code § 25827, the California Constitution and preexisting laws, could have historically provided for the collection, transfer and disposal of solid waste generated within its unincorporated limits through issuance of exclusive collection franchises; and WHEREAS, Central Contra Costa Sanitary District (hereinafter"CCCSD"), pursuant to its enabling act, case law and as otherwise provided for in Public Resources Code §§40000 et seq., has historically provided for the collection, transfer and disposal of solid waste generated within certain portions of its jurisdictional boundaries in some unincorporated County areas through issuance of exclusive collection franchises; and WHEREAS, Central Contra Costa Solid Waste Authority (hereinafter "CCCSWA") is a joint powers agency formed pursuant to Government Code § 6500, et seq. and currently is and will be comprised of member agencies of the City of Walnut Creek, Contra Costa County and CCCSD; and WHEREAS, a joint powers agency, as a separate public entity, may exercise those powers commonly held by its respective members, to the extent the member agencies provide for the exercise of such common powers to the joint powers agency; and accordingly, CCCSWA, through the Joint Powers Agreement, as it is to be amended, will have the authority to contract for the collection, transfer and disposal of solid waste generated within specified jurisdictional boundaries of its member agencies; and WHEREAS, the Contra Costa County has concluded that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries will serve to consolidate coordination and planning of such collection, transfer and disposal activities, while providing an opportunity to maximize the ratepayers' market power while providing for economies of scale, thus benefiting the public served by CCCSWA, including the citizens of involved unincorporated County areas; and WHEREAS, AB 939 has authorized and directed counties' among other public agencies, to develop and implement plans with respect to the Source Reduction and Recycling Elements and Household Hazardous Waste Elements as specified therein; and RESOLUTION NO. 95/ 1 WHEREAS, the Contra Costa County has concluded that implementation of these Source Reduction and Recycling Elements and Household Hazardous Waste Elements can be accomplished most efficiently through use of CCCSWA to administer and coordinate implementation on a regional basis for certain specified unincorporated areas; and WHEREAS, franchise agreements have been prepared by the CCCSWA for use in entering into franchises between CCCSWA and Browning-Ferris Industries for Refuse Collection, Transfer and Disposal, and between CCCSWA and Valley Waste Management for Recycling and Green Waste Collection, Processing and Marketing Services; and WHEREAS, Contra Costa County is willing to delegate its solid waste collection franchise authority (for refuse, recycling and green waste) to CCCSWA for specified unincorporated areas, provided that the terms of the franchises therefor to be executed by CCCSWA provide for the basic provisions and are in a form substantially similar to the above agreements prepared by CCCSWA dated NOW, THEREFORE, the Board of Supervisors of Contra Costa County resolves as follows: 1. With this County's membership in CCCSWA, this County delegates jts authority to CCCSWA to enter into contracts concerning solid waste collection, transfer and disposal for the territory within the jurisdictional boundaries of the County as identified in the aforesaid amended Joint Powers Agreement for provision of refuse, recycling and green waste service; and 2. The County delegates its authority to CCCSWA to implement the SRREs and HHWEs of the County through the CCCSWA franchising authority for the specified unincorporated areas identified in the amended Joint Powers Agreement for these additional delegations; 3. Said delegation of authority from the County to CCCSWA, as set forth in (1) and (2) above is for the eight (8) year term of the proposed franchise agreements and is subject to the limitation that any franchise agreements entered into by CCCSWA shall be in a form substantially similar to the franchise agreements dated referenced hereinabove, and further conditioned upon appropriate amendments to the Joint Powers Agreement being enacted by CCCSWA prior to execution of the franchise agreements; and 4. Said delegation is further conditioned upon Contra Costa County reserving the right to withdraw at any time, for any reason, the delegations of authority. However, in doing so, agrees to administer the franchise agreement as negotiated for the term of the contract. 5. This resolution shall take effect RESOLUTION NO. 96/ 2 PASSED AND ADOPTED on , 1995, by the Board of Supervisors by the following vote: AYES: NOES: ABSENT: ABSTAIN: I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By: Deputy RESOLUTION NO. 951 3 SD. 11 TO: BOARD OF SUPERVISORS FROM: Val Alexeeff, Director, Growth Management and Economic Development Victor J. Westman, County Counselk2W DATE: 'August 8, 1995 SUBJECT: Joining Central Contra Costa Solid Waste Authority SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: Consider actions to be taken on: 1 . -F-Irst Amended Joint Exercise of Powers Agreement for the Central Contra Costa Solid Waste Authority and ratification of County membership therein. 2 . Resolution Authorizing Central Contra Costa Solid Waste Authority to enter Solid Waste Collection Agreements and delegating County franchise authority. 3 . Transitional Agreements Between County and Central Contra Costa Sanitary District for the Collection of Solid Waste: A. Within Unincorporated Areas of North Concord, Pacheco and Clyde. B. Within Unincorporated Areas to be within the Jurisdiction of the Authority (unincorporated South County areas of Danville, Alamo , etc. ) . Consider County' s acceptance of the terms of this Agreement. (unincorporated South County area) being made contingent upon the Central Contra Costa Sanitary District agreeing, in writing, that an amount equal to the franchise fees established by the County for the said area for the period commencing April 1, 1996 be paid by the District to the County. 4 . Authorizing staff (GMEDA Director and County Counsel) to review final documents for conformance with the Board' s action as (See continuation) CONTINUED ON ATTACHMENT: xx YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Orig: Community Development Department ATTESTED cc: County Counsel PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR 5a: \centrljp. 895 BY , DEPUTY GsTgou2a; IIuP q2q4 uOT424TUTT aqq off. goaCgns ST uoTg2baTaQ •40T-74STQ Aap4TupS aq4 go uOT4oTPSTanC aq4 =44TM spaap pagpaodaoouTun PGT;Toads ao; (►►SMHH►►) 4uauzaTS a4spM snopapzpH pTouasnOH Put (►►SddS►►) quauiaT,S buTTo,�Oag Pup uOTgonpag aoanoS s ,,�qunoO agq go uoT4P4uauiaTduiT ',�gTaoggnV aq4 off. sagpbaTaP OSTP uOTgnTosaa aqs •gOTagSTQ ,�ap4TupS aqq go uOT40TPSTanC aqq uTT4gTM spaap pagpaodaoouTun paT;Toads JO; 1�4Taog4np buTSTuouPJJ S ,A4unOO aqq ' (SapaA Om4 JO; papuagxa buTaq uzaaq ST144 go AgTTTgTssod p g4TM) SapaA 411bTa go utaaq p JO; AgTaogqnV aqq 04 sa4pbaTap SquauiaaabV uOT40aTTOO agSPM PTTOS aa4ua 04 A4TaoggnV aqq 5UTZTaog4TIV uoT-4nTosad aqs •suoz49baTsa pue quauraasby UOT409TTOD 64SRM PTTOS 204ua 04 Al Tlog4nV buizTaoggny uOT4nTosag •z • SaotnaaS buTTOAOaa ao; pTq 4saMOT aq4 pa44Tuigns quauzabpuPW agsPM AaTTPA Pup 'SaoTA.zaS uOTgoaTTOO agsPm PTTOS 30; pTq, 4samOT aq4 PaggTuiqns saTagsnpul sTaaa,3 buTuMOag 'aJPmP OSTP Gap saaquiam papog agq sV 'uOTgOTPSTanC S , gOTagSTQ Aap4Tu2S aqq uTqqTM A304Taaaq pagpaodaoouTun auq uT A Taoq np buTSTgoupaJ s ,AqunoO aqq go 'AgTaoqqnV aqq 04 uOT4PbaTaP quaaanouoo ao quanbasgns pup (40Ta4sTQ AapgTupS aqq go uOTgOTPSTanC aqq uTggTM Aa04Taaa4 pagpaodaoouTun aqq ao;) Vdp aqq buTuTOC s ,Aquno0 agq JO; f4TaoggnV aqq g4TM SbuTgaali uT squpdToTgapd TpdTouTad aq4 uaaq Spq a94qTuMOO OOH P'd ags?M 'PTTOS S ,Papog aqs •uOTgOTpsT.znC S , gDTagSTQ A'PgTupS aq4 uTgggTM AJ04Taaa4 pagpaodaOOurun aqq buTpnTOuT 'SaTouabp aagwam aqq Aq paquasaadaa SaTaogTaaa4 aqq uTggTM aoTnaaS uOT40aTTOo agsPm pTTos go uoTSTnoad aqq ao; (d32i) sTosodoad aO3 gsanbaU p pansST ( („-4oTa'4sT(J Aap'4Tu2S„) '4oT.z'4STQ ,AapqTupS p-4SOO 23-.uOO TpaquaO a114 pun xaaa0 gnuT2M go AgTO ago ATquaaano) A4TaoggnV aqq 'aapMp Gap saaquiaw papog aqq sV •AgTaog4nv aqq ao3 quauraazby saemog go aszozaxa 4uior papumm 4sxra •T • sgdpabpapd buTMOTTOJ aqq uT passnosTp AT;aTaq Gap squaumoop asags • (aa4gTunuOO ago aao;aq uaaq anpq squamnoop goTgM go .sour) squaumoop quaaano aq4 uT Passaappp uaaq anpq 3;pqs AqunoO go suaaouoo TPT4uP4sgns gspd •Paap AqunoO ggnos/Tpa4uaO aqq uT AaOgTaaaq pagpaodaoouTun aqq uT SaoTnaaS a4sPm pTTos Jo uOTSTnoad aqq aoj Vdr aqqbuTuToC s ,AqunoO aq4 buTuaaou00 ( „A4TaoggnV„) A4TaoggnV agS2M pTTOS 124SOO pa4uo3 Tpa4uaO aq4 g4TM sbuTgaauI q2 squpdToTgapd uaaq S2q aag4TunuOD a4spM PTTOS s ,Papog aqq 'Sgquoui TuaanaS qspd aqq ao3 SNOIIVCNSWWOOS'd Wa SNOSVEU/QNfIO'dS 3VE • spaap pag2aodaoouzun aqq ao; saa; asTgoupa; go uOT40aTToo s ,AqunoO agq ao; saPTnoad ssaooad dad agq oq qupnsand Iag oq panssT aq oq quawaaabv asTgoupaz aqy :uiaaq buoq ' Saa; aSTgoup.z; go 4T;auaq qnog4TM A4TTTgTsuodsa.z buTSTgoupa; aumssp PTnOM AqunoO aqq 'paap aPATO/ooagopd/PaoouOO g4JON aq4 30; quauzaaabV TpuOTgTsupay aqq aapun :uiaaq gaogS IZ)VdWI rIdOSI3 •papog a44 JO NlaTO aqq 144TM A4TaoggnV PTps uT dTgsaa(q.uaui JOJ AJPSSaoau squaumoop aaggan; Aup aTT; off. a040aaTa VCEWO buTzTaoggnp pup ' (quaumoOP TpuT; aqq uT SagPP uT buTTTT; ' •b•a) k4Taog4nV agspM PTTOS pgsOO paquO3 Tpa4uaO aqq uT dTgsaacpuaui pauoTquauiaao;p aqq azTTpuT; 04 AIPSsaoau uOT40p TPTaagSTuTuz Aup axp-4 Sp TTaM :aznxiSNoo - SNOI LVCNSb1HODEd RECOMMENDATIONS - CONTINUED: well as take any ministerial action necessary to finalize the aforementioned membership in the Central Contra Costa Solid Waste Authority (e.g. , filling in dates in the final document) , and authorizing GMEDA Director to file any further documents necessary for membership in said Authority with the Clerk of the Board. FISCAL IMPACT: Short term: Under the Transitional Agreement for the North Concord/Pacheco/Clyde area, the County would assume franchising responsibility without benefit of franchise fees. Long term: The Franchise Agreement to be issued to BFI pursuant to the RFP process provides for the County' s collection of franchise fees for the unincorporated areas . BACKGROUND/REASONS FOR RECOMMENDATIONS: For the past several months, the Board' s Solid Waste Committee has been participants at meetings with the Central Contra Costa Solid Waste Authority ("Authority") concerning the County' s joining the JPA for the provision of solid waste services in the unincorporated territory in the Central/South County area. Past substantial concerns of County staff have been addressed in the current documents (most of which documents have been before the Committee) . These documents are briefly discussed in the following paragraphs . 1. First Amended Joint Exercise of Powers Agreement for the Authority. As the Board members are aware, the Authority (currently the City of Walnut Creek and the Central Contra Costa Sanitary District ("Sanitary District") ) issued a Request For Proposals (RFP) for the provision of solid waste collection service within the territories represented by the member agencies, including the unincorporated territory within the Sanitary District' s jurisdiction. The Board' s Solid Waste Ad Hoc Committee has been the principal participants in meetings with the Authority for the County' s joining the JPA (for the unincorporated territory within the jurisdiction of the Sanitary District) and subsequent or concurrent delegation to the Authority, of the County' s franchising authority in the unincorporated territory within the Sanitary District' s jurisdiction. As the Board members are also aware, Browning Ferris Industries submitted the lowest 'bid for solid waste collection services, and Valley Waste Management submitted the lowest bid for recycling services. 2. Resolution Authorizing Authority to enter Solid Waste Collection Agreement and Delegations. The Resolution Authorizing the Authority to enter Solid Waste Collection Agreements delegates to the Authority for a term of eight years (with a possibility of this term being extended for two years) , the County' s franchising authority for specified unincorporated areas within the jurisdiction of the Sanitary District. The resolution also delegates to the Authority, implementation of the County' s Source Reduction and Recycling Element ("SRRE") and Household Hazardous Waste Element ("HHWE") for specified unincorporated areas within the jurisdiction of the Sanitary District. Delegation is subject to the limitation that any franchise • r )=dEG �g 968 •dCTJ4UGD\ :P5 wivuSSININav xSNnoo amv SUOSIMMIS aO axVO9 SRS 30 xuaao 'wriaRosrds 'IIHa Tasuno0 Aqunoo :oo a3ss31111e quauiq.zPdaa quauidOTanaa A4Tununuo0 :biro •NMons Siva SRS No SUOSIAMMS 30 Taws SHS 30 S3SnNIN :NIvlsg OTi SN3Ss�OT SHS NO azuam3 axv kraxvS NoIsov :SHON :S3xv my ao xao0 IDaH OO aNv zilal LNRSSV) SrIONINVKn v SI SIRS ZVRs Aailu3o 483ME I SUOSIMMIS 30 3SOA UZHso aaamamoozu ski a3Amadiv NO auvos 3o NOIsov (s)mmiv is USHso 3AOUdd T 33111INNOO axvOs 30 NOIIVaNSMOo32I 2I iYaLisIHINay Am= a0 NOISvaNaP=ozu zaalvNois sax xx :immoviav No ammimoo (uoT4PnuT4uOo aaS) SP uoT40P s ,PJPOg auk. g4TM aOuPWJO�uoO JO; s4uaumOOp TPu . Marna z Oq (Tasuno0 Aqunoo pup .zogoaaTa VCSWO) ;;P=as buTZT.zoggnV • � -Aqunoo aqq oq goTjgsTa aqq Aq pTPd aq 966T 'T TTjdV buTOuaunuoO PO-1-Tad auq .zo; P@JP pTPs aqq .ao; Aqunoo auq Aq pausTTgPgsa saa; asTgOUPJ; auq 04 TPnba qunoue up pqq 'buTgTJm UT 'buTaa.zbP gOT3gSTa AJPgTuPS PgsoO PaquOO TPJ4ua0 aqq uodn quabuTquOO apPW buTaq (Paip Aqunoo ggnoS pagPaod.aoouTun) quauiaa.zbV sTgq JO sullaq aqq ;o aouPgdaooP s ,Aqunoo aapTsuOO • ( •o.4a ' OUWTV 'OTTTAuga go sgaag Aqunoo ggnoS pa4vaodaoouiun) AgTaougnv auq ;o uOTgOTpsTanr auq uTLTgTM aq oq s2aiv pagP.zodaOOuTun uTggTM •g •aPATO pug ooagova 'paoouoo ggaoN jo sPaiV pagP.zod.zoouTun uTggTM •V :agsPM PTTOS JO uOTgDaTTOO @qq JO; goiaisia A=94TugS 94800 ga4uOO Tga4u9b PUP Aqunoo uaaMgag s4uauiaa.abV TPuOTgTsuPJI • S •A4T.zoggnP. asTLjouP.zj Aqunoo buTgPbaTap PUP squ@luaa.zbV uOTgOaTTOO agsPM PTTOS .zaqua o-4 A-4iaoq-4nv 84sgM PTTOS 94900 924uOO T224u6O buTZTjoggnV uoTgnTosag • z •uTaaagq dTgSjaquiauu. Aquno3 JO uOTgPOT;TgPJ PUP A4i2oggnV 84seM PTTOS v4803 gaquOO TgaquaO aLlq JO; quamaaby saaMoa go asioaax3 -4u-ror papumW Asa, • T :uo uaxPq aq oq suoTgoP aapTsuoo : SNOIlVGNgInwO3aU NOImiaiiSnr aNK aNnoumoys 'q (S)NOISEiaN3momm ao (s)Ss3n?5au oI3I03as A4TaoglnV 84s2M PTTOS 24900 224UOO Tga4u6O buTUTOr :10arsnS 966T '8 gsnbnV. :s;Lva AMA Tasuno0 A4unoO 'uPw4saM •r J040TA quauidOTanaa OTuiouOOH PUP quauiabPupW ggmoaO 'lO4OaJTa ';,;aaxaTV TPA :Noun SUOSIAUEdnS 30 MdVOS :OS II 'CIS y agreement entered into by the Authority shall be substantially similar to franchise agreements prepared by the Authority dated , appropriate amendments to the Joint Exercise of Authority Agreement being adopted, and upon the County reserving the right to withdraw its delegation at any time, provided the County must continue to administer the Authority negotiated and entered contract. The above-referenced franchise agreement provides for the county' s levy of franchise fees in the unincorporated area. 3. Transitional Agreements Between County and Central Contra Costa Sanitary District: A. North Concord, Pacheco, Clyde This agreement provides for the Sanitary District ' s assigning its franchise with Pleasant Hill Bayshore Disposal to the County for the remainder of the franchise term (March 31, 1996 expiration date) . The Sanitary District would continue to administer AB 939 recycling activities for the area, including activities being undertaking pursuant to the Sanitary District ' s franchise agreement with Pleasant Hill Bayshore Disposal, Inc. , until the franchise' s termination on March 31, 1996. B. Unincorporated South County Area (Danville, Alamo, etc. ) This agreement provides for the Sanitary District delegating- to the County (for the County' s delegation to the JPA) , the District ' s authority to franchise solid waste collection service in the unincorporated south county area within the jurisdictional territory of the Sanitary District, upon the expiration of the current 'Sanitary District - Valley Waste Management franchise (March 31, 1996 expiration date) . The Sanitary District will retain all franchise fees and will administer the franchise until its termination on March 31, 1996. This transitional agreement also provides for a one-year extension of the Sanitary District-Valley Waste Management franchise. The County' s approval of this transitional agreement should be made contingent on the County receiving franchise fees from this area commencing April 1, 1996. 4 . Final Transitional Agreements . On Tuesday, August 1, 1995, we were advised by an attorney for the Sanitary Distridt that on Friday, July 28, the Sanitary District made further changes to the transitional agreements . As of the date of the writing of this report, County staff has not been advised that the only "conceptual" change requested concerns allocation of Acme litigation costs . However, final drafts have not been presented to County staff for presentation to the Board. Prior to this latest communication, County staff reviewed drafts of the documents, and had presented staff' s comments (based upon Committee expressed concerns) to the District ' s legal counsel . If final documents are received from the District before Tuesday, August 8, 1995, staff will submit them to the Clerk of the Board for inclusion in the Board' s packet . 5a: \cenjpa8 . 95 r ' DRAFT - July 24, 1995 FIRST AMENDED JOINT EXERCISE OF POWERS AGREEMENT CENTRA, CONTRA COSTA SOLID WASTE AUTHORITY ARTICLE 1: PURPOSE A. Purpose of Agreement: It is the purpose of this Agreement to establish, pursuant to the Joint Exercise of Powers Act, a public entity separate from each of the agencies. This public entity is to be known as the Central Contra Costa Solid Waste Authority, hereinafter referred to as the "Authority". B.. Purpose of Authority: The purpose of the Authority shall be to exercise certain powers set forth below, in a manner which will (1) assure the citizens of the Member Agencies that certain solid waste transfer station(s), regional resource recovery facility(ies), recycling facility(ies), household hazardous waste facility(ies), and/or landfill(s) and related programs will be operated in the most cost effective manner possible consistent with the proper concern for the environment; and (2) allow for the public ownership and/or management of said facilities; and (3) allow for certain or all of the Member Agencies to participate in individual or joint efforts concerning issuing Requests for Proposals and entering into contracts for franchising of solid waste collection, handling and disposal, including green waste and recyclables; and (4) allow for such other joint efforts concerning the handling and disposal of the solid waste stream as may be beneficial to constituents of the Member Agencies. C. Members of Authority: This Agreement was entered into as of September 11, 1990 by and between the cities of Walnut Creek and San Ramon and the Central Contra Costa Sanitary District (hereinafter "Initial Members"), as individual public entities which mutually promise and agree as hereinafter set forth. Membership in the Authority is open to any public entity that is authorized to franchise the collection or handling of solid waste in. Central Contra Costa County and does so franchise or delegate the authority to franchise to the Authority. Membership in the Authority is granted upon a two-thirds (2/3) vote of all members of the Authority Board, as then constituted, approving the application for membership, and upon compliance with the terms and conditions of membership set forth by the Board and/or in force at that time. 1 F:\DMS\TCS.DIR\0115230.05 For purposes of this Agreement "solid waste handling" or "handling" shall be as defined pursuant to California Public Resources Code Section 40195, and is to include collection, recycling, transportation, storage, transfer, or processing of solid wastes. D. Jurisdictional Boundaries of Authority• The jurisdictional boundaries of the Authority shall include the jurisdictional boundaries of the Authority's respective Member Agencies as set forth in, and as limited by,:the Service Area Map for the Authority, attached hereto as Exhibit 1. E. Anvortionment of Expenses: It is the intention of the Authority to collect revenues to cover the costs of Authority operations. To the extent that the Authority regulates the operation of transfer facilities, reclamation facilities, recycling facilities, household hazardous waste facilities, landfill facilities and/or other facilities, the Authority may recover a portion or all its costs of operation through facility fees and through such other fees as the Authority may lawfully impose. The Authority may, in addition or alternatively, recover its costs of operation through administration of franchise agreements granted by the Authority, including franchise fees and through the collection of other fees as may be provided for in the various franchise agreements. Such Authority costs of operation may, in addition, be recovered through franchise fees or other fees lawfully imposed by or on behalf of the Authority through its Member Agencies with regard to the Authority's solid waste management activities. To the extent that operating expenses exceed revenues during any period, including the initial start-up period of the Authority, the Member Agencies shall be responsible for providing the requisite funds to the Authority to ensure that such expenses are met in the proportion that the total tonnage of solid waste collected within the jurisdiction of each agency bears to the total tonnage of solid waste collected within the jurisdiction of all members of the Authority. Solid waste collected from areas of a Member Agency located outside of the jurisdictional boundaries of the Authority are not included in these calculations. Each Member Agency's contribution to such expenses is dependent upon such Member Agency's governing body's yearly approval of such contribution, provided, however, that if such Member Agency's governing body does not approve such contribution, such Member Agency may be expelled. It is the intent of this Agreement that monies and Membership Fees advanced to the Authority by individual Member Agencies to cover Authority costs of operation, including costs of establishing the Authority, are to be reimbursed to said Member Agencies. Such reimbursement of funds shall be collected through the fee structures set forth above. Such reimbursement shall be authorized to the extent that it does not impair necessary working capital or the ability of the Authority to repay any bond or other debt obligations. Notwithstanding the above provisions, where two or more Member Agencies have dual or overlapping authority to franchise solid waste handling within any portion of the 2 F:\DMS\TCS.DIR\0115230.05 i Authority's jurisdictional boundaries, the total solid waste collected within said dual or duplicative jurisdictional boundaries shall only be counted toward or included within the total tonnage of the Member Agency actually delegating to the Authority the authority to franchise solid waste handling for the area or areas involved. ARTICLE 2: POWERS OF THE AUTHORITY A. General Powers: 1. The Authority shall have all powers common to its Member Agencies, and such general powers shall further include, but not necessarily be limited to the following: a) To advise the Member Agencies on issues related to solid waste handling and disposal; b) To advocate the interests of the. Member Agencies related to solid waste management issues with local, state and federal officials; c) To plan for transfer station(s), resource recovery facility(ies), recycling facility(ies), household hazardous waste facility(ies), landfill(s), and other solid waste facility(ies) and programs, and/or any related closure and post-closure thereof; d) To develop transfer station(s), resource recovery facility(ies), recycling facility(ies), household hazardous waste facility(ies), landfill(s), any other solid waste facility(ies) and program(s) and/or any related closure and post-closure thereof; e) To acquire and/or operate and/or contract for the operation of transfer station(s), resource recovery facility(ies), recycling facility(ies), household hazardous waste facility(ies), landfill(s) and other solid waste facility(ies) program(s) and/or any related closure and post-closure thereof; f) To regulate rates of transfer station(s), resource recovery facility(ies), recycling facility(ies), household hazardous waste facility(ies) and landfill(s); g) To issue Requests for Proposals and enter into agreements to franchise for the handling and/or disposal of solid waste, green waste, and recyclables; h) To provide any or all of the solid waste handling and/or disposal services, green waste and recycling services as set forth herein to other public agencies not members of the Authority, including issuing Requests for Proposals and entering into agreements with and on behalf of these other public agencies concerning, but not limited to, the administration and/or regulation of rates, rate setting, 3 F:\DMS\TCS.DIR\0115230.05 franchising and provision of any other solid waste services deemed reasonable or necessary by the Authority Board; i) To advise on matters of solid waste handling and disposal rates and charges; j) To advise public entities as to market conditions affecting the marketability of recyclable commodities; k) To market and sell recyclable commodities; and 1) To conduct joint studies and/or institute joint programs as may be required by law or are appropriate regarding solid waste handling and disposal including, but not limited to, such efforts as may be required regarding reduction of the waste stream disposed at landfills. 2. Notwithstanding the provisions of this Agreement, each Member Agency retains its own existing authority to franchise solid waste handling and disposal services and landfills within its own jurisdictional boundaries. Any Member Agency may elect to delegate to the Authority such rights with respect to solid waste handling and disposal and upon such terms and conditions as the Authority may agree. Nothing in this Agreement is intended to or does provide authority for the Authority to regulate: the Acme Landfill, Keller Canyon Landfill, or any transfer station located at the Acme Landfill, or any of their respective operations. 3. The Authority's exercise of the above general powers shall only affect those portions of the Member Agencies lying within the jurisdictional boundaries of the Authority as set forth in the Map, Exhibit 1 hereto. This provision is not intended to limit the scope of Article 2(A)(1)(h). B. Svecific Powers: In carrying out its general powers, the Authority is hereby authorized to perform all acts necessary or proper for the exercise of said powers which may include, but are not limited to, the following: 1. To make and enter into contracts and to issue Requests for Proposals; 2. To apply for and accept grants, advances and contributions; 3. To employ or contract for the services of agents, employees, consultants and such other persons or entities as it deems necessary; 4. To conduct studies; 4 F:\DMS\TCS.DIR\0115230.05 5. To review the Contra Costa Integrated Waste Management Plan and other such public planning documents as may be developed, and recommend revisions or amendments thereto; 6. To acquire, construct, manage, maintain, operate and control any buildings, works or improvements; 7. To acquire, hold or dispose of property; 8. To acquire by condemnation proceedings such real and/or personal property and/or rights of way as in the judgment of the Authority are necessary or proper to the exercise of its powers; 9. To incur debts, liabilities or obligations subject to limitations herein set forth; 10. To levy and collect fees and charges to the extent permitted by law; ' 11. To assess and collect, subject to Article 5, Section A and Article 1, Section E, of both Initial Members and future agency members, fees for membership in the Authority, so as to provide moneys for the financing of its activities, operations, and expansion which are not adequately funded by the revenues collected for services provided by the Authority; 12. To issue bonds, subject to the provisions and limitations of the laws of the State of California; and 13. To adopt annually, by April 1 of each fiscal year, a budget setting forth all administrative, operational and capital expenses for the Authority, together with the apportionment of such expenses by levy against each Member Agency to the extent necessary, subject to Article 1, Section E. ARTICLE 3: ORGANIZATION OF AUTHORITY A. Board of Directors: The Authority shall be governed by a Board of Directors, hereinafter "Board", which shall exercise all powers on behalf of the Authority. The Board shall have the authority to carry out all duties and functions within the power of the Joint Exercise of Powers Agreement. The Board shall be composed of two (2) representatives from each Authority agency, who shall be elected members of such agency's governing body. Each member representative shall have the right to vote on each issue pending before the Board. The term of Board membership is unlimited except as a Member Agency may provide for its own representatives; however, as to such member representatives, such term shall 5 F:\DMS\TCS.DIR\0115230.05 automatically expire when the representative is no longer an elected officer of the agency that he or she represents on the Board. B. Duties of the Board of Directors: The Board shall perform all acts necessary or proper to carry out the purposes of this Agreement and to execute the General and Specific Powers of the Authority, which acts include but are not limited to the following: a) Conduct Board meetings pursuant to a schedule adopted by the Board; b) Consider, modify and approve the annual work program and budget; c) Levy, fix, set and/or impose fees, assessments and charges to the extent permitted by law and by this Agreement; d) Authorize, review and accept reports and studies; e) Review, recommend, approve and/or regulate rates for services provided by the Authority or over which the Authority has regulatory power through contract or otherwise; f) Recommend action to Member Agencies and other public bodies on: i) The Contra Costa County Integrated Waste Management plan and any other such public planning documents as may be developed and revisions or amendments thereof; and ii) The planning, financing, development and operation of Authority activities; g) Accept agencies as subsequent parties to the Agreement and members of the Authority, and their representatives as Board members; h) Authorize the hiring and/or engagement of Authority staff; i) The Board may, from time to time, declare one of the Member Agencies as the lead agency for specific purposes as may be set forth by the Board or for the general purpose of staffing the Authority and carrying out the Authority's functions. At the time said Member Agency is appointed as a lead agency, the Board shall determine whether the member is to bear the costs of such lead agency activity or be reimbursed therefor. The Authority, in any event, shall reimburse agency members for personnel costs associated with the staffing of the Authority with Member Agency personnel; 6 F:\DMS\TCS.DIR\0115230.05 j) Establish committees to carry out Authority purposes, and appoint committee members from the Authority Board, the legislative bodies or administration of Member Agencies, Authority staff, and/or staff of the Member Agencies. The Authority shall reimburse agency members for personnel costs associated with the staffing of committees with Member Agency personnel; k) Establish policies governing the compensation of staff employed by the Authority, which policies are subject to approval of the governing bodies of the agency members by a two-thirds (2/3) vote thereof; 1) Delegate duties to Authority or Board staff and/or members, appointed committees and committee members, the City Councils and/or staff, or the Sanitary District Board and/or staff or the County Board of Supervisors and/or staff. C. Voting Requirements: All actions of the Board may be undertaken by a majority vote of the Board members present, provided a quorum exists, except for such Board actions requiring a two-thirds (2/3) vote as may otherwise be set forth herein. Each Board member shall have one vote. D. Board of Directors Members: Upon execution of this Agreement, the governing body of each agency shall, by resolution, appoint two (2) member/representatives to serve as members of the Board in conformity with the requirements of Article 3, Section A. E. Subsequent Authority Members: Any agency which has the authority to franchise solid waste collection in Central Contra Costa County, and franchises the same or delegates such authority to franchise to the Authority (including cities incorporated and districts formed after the effective date of this Agreement, and including the County), may become members of the Authority. Its representatives may become voting members of the Board by: (1) presenting an adopted resolution to the Board which includes a request to become a member of the Authority, (2) receiving a two-thirds (2/3) vote of all -- members of the Board to accept the new member, and (3) by payment of any charges and execution of all documents as may be required by the Board. Such charges may include such items as compensation to the existing Authority members for previously expended costs in furtherance of Authority purposes, including staffing expenses, capital expenses, financing expenses, and assessments for losses in prior Authority operations. These examples are purely illustrative, however, and are not intended to limit the power of the Authority or the Board to fix whatever buy-in, capitalization or other equalization charges deemed necessary or proper. Payment of such charges may be made in any manner deemed necessary or proper by the Board, including, but not limited to cash payment, a differential rate structure at Authority facilities, future capital contributions, surcharges or by other plan which might include appropriate security. 7 f:\DMS\TCS.DIR\0115230.05 F. Board Officers: The Board shall by a majority vote elect from its members a Chairperson and a Vice Chairperson. The Chairperson and Vice Chairperson shall have one-year terms and may be re-elected so as to serve a maximum of two (2) consecutive one-year terms, unless the Board unanimously approves additional consecutive term(s) as to a particular Chairperson or Vice Chairperson. The Chairperson shall preside over all meetings according to the Rules of Procedure adopted by the Board. The Board Chairperson shall represent the Authority and execute any contracts and other documents when required by the Rules of Procedure. G. Board Rules: The Board is empowered to establish its own Rules of Procedure to the extent those rules are not inconsistent with the laws of the State of California governing the operations of this Authority. H. Meetings of the Board: a) Regular Meetings: The Board shall hold scheduled public meetings at a location selected by the Board. b) Special Meetings: Special meetings of the Board may be called in accordance with the provisions of Section 54956 of the California Government Code. c) Notice of Meetings: All meetings of the Board shall be held subject to the current provisions of the Ralph M. Brown Act, bevag Sections 54950 et sea. of the California Government Code, and other applicable laws of the State of California requiring public meetings. d) Minutes: The Board Chairperson shall cause minutes of all meetings to be kept and shall, as soon as possible after such meeting, cause a copy of the minutes to be forwarded to each member of the Board. I. Staffing: Each of the Member Agencies shall use its best efforts to provide staff to the Authority as may be necessary initially for the Authority to execute its powers and duties and as may be required by the Board thereafter. Staff may be drawn from Member Agencies or agency staff. Additionally, the Authority may contract with or employ entities and/or individuals not associated with Member Agency staff, as permitted by Article 2, Section B(3). J. ffic r : The Board has the power to appoint as staff to the Board the following officers: a) Executive Director: There may be an Executive Director appointed who will serve as the chief administrative officer of the Authority. He or she shall be responsible to the Board for the management and administration of all Authority affairs pursuant to the Board's direction. 8 F:\DMS\TCS.DIR\0115230.05 Until such time as the Board may determine to appoint an Executive Director who is not a staff member of a Member Agency, and for such other times as there is no Executive Director serving, the Board may appoint an interim Executive Director, who shall have such powers and duties as are set forth in this section. An interim Executive Director shall be the chief administrative officer of one of the Member Agencies, or such other agency staff member as the Board deems appropriate. b) Treasurer and Controller: There shall be a Treasurer and Controller to be the custodian of all Authority funds, to pay demands and to make or contract for an annual audit. Such Treasurer shall be the Treasurer of one of the Member Agencies, the County Treasurer, a Certified Public Accountant or one of the Authority's officers or employees as set forth in California Government Code §§6505.5 and 6505.6. c) Secre : There shall be a Secretary appointed by the Executive Director who shall be responsible for the noticing of meetings and recording of minutes of meetings as required by the Brown Act and the Rules of Procedure, in addition to such other duties as the Executive Director may assign. K. Funds. Expenditures and Audits: Each and every expenditure of moneys shall be authorized or approved by the Board or by a person designated by the Board to authorize expenditures. The Treasurer shall draw warrants to pay demands so authorized for payment by the Board. Before the Authority may expend any moneys or incur any financial obligation, it shall adopt a budget showing proposed expenditures for the Fiscal Year and the proposed means of financing such expenditures. The budget shall be for the ensuing Fiscal Year, beginning on July 1 of each calendar year and ending on June 30 of the following calendar year. The Board shall periodically cause an audit to be performed with regard to the financial operations of the Authority. ARTICLE 4: TERMS OF AGREEMENT A. Effective Date: This Agreement shall become effective on the date of its execution by all the agencies identified as Initial Members in Article 1, Section C. B. Amendments: This Agreement may be amended by a two-thirds (2/3) vote of all members of the Board. Any such amendment shall be effective upon the date of such action. 9 F:\DMS\TCS.DIR\0115230.05 C. Undertaldng of Specific Projects: Although it is the intent of this Agreement, and therefore the purpose of the Authority, to cooperate jointly amongst the Member Agencies so as to provide the most efficient operation of solid waste facilities and most efficient means of handling and/or disposal of solid waste, green waste and recyclables on a-regional basis, nothing contained in this Agreement is intended to prevent the Authority from undertaldng projects and agreements to provide services pursuant to separate contacts between the Authority and individual Member Agencies and non- member public agencies, which projects and agreements are not intended to benefit all of the Member Agencies. The Authority shall hold title to each project and to the rights and benefits of each agreement in trust for the use of the members who participate. The members who participate in a project or agreement shall indemnify and hold harmless the members who do not participate from liability of any kind resulting from, or in any way related to, the financing, construction, acquisition, operation or maintenance of such project, or resulting from or arising out of performance of such agreement. The Authority shall have the power to proceed with the final acquisition and construction of a project which is not joined in by all Authority members, only when a separate project contract has been entered into which provides arrangements for obtaining funds sufficient to pay for all costs of such project. D. Withdrawal: a) Any Member Agency, upon written notice given by January 1 of any year to the Chairperson of the Board of Directors, and to all other Member Agencies, may withdraw from the Authority Effective no earlier than July 1 of that year; provided,, however, that the withdrawal of such Member Agency shall not terminate such Member Agency's responsibility under any obligation of such Member Agency or, the Authority or any action taken in connection therewith, and further provided that the withdrawing agency may pay to the Authority on the effective date of withdrawal, all money owing to the Authority, and as to those capital expenditures that the withdrawing agency has agreed to participate in by contract or otherwise, its share of such capital expenditures. Such financial obligations of such withdrawing agency may be assumed by another entity upon a two-thirds (2/3) vote of the Board, absent the participation of the representative of the withdrawing agency. b) Notwithstanding subsection (a) above, a member, shall not be permitted to withdraw from the Authority unless the Board determines by majority vote, absent the participation of the representatives of the withdrawing agency, that as of the effective date of withdrawal the Authority will have a waste stream sufficient to meet all Authority operating expenses and obligations outstanding as of the effective date of withdrawal, whether capital, operational, maintenance- related, or otherwise, and to ensure that all Authority operations will not be 10 F:\DMS\TCS.DIR\0115230.05 adversely affected to a material extent by the withdrawal of the withdrawing member. C) Notwithstanding subsections 1 and 2, above, any Member Agencies, regardless of whether it withdraws from Authority membership, may at any time, for any reason, upon thirty (30) days prior written notice to the chairperson of the Board of Directors, terminate the delegation of authority from said Member Agency granting the Authority the right to franchise on behalf of said Member Agency. As of the effective date of termination of said delegation of franchise authority, said Member Agency shall no longer be a party subject to any franchise agreement entered into on its behalf by the Authority. Said Member Agency agrees, however, to accept an assignment of all rights and obligations under each said franchise agreement entered into on its behalf by the Authority with respect to those portions of the service area of each franchise agreement located within the jurisdictional boundaries of said Member Agency. Said Member Agency further agrees to administer such partially assigned franchise agreements in good faith, pursuant to the terms of each said franchise agreement, for the balance of their respective terms. Nothing contained herein limits the right of said Member Agency and any of said franchisees from subsequently agreeing to amend said partially assigned franchise agreements. d) The withdrawing agency shall also continue to be liable for its share of Authority obligations, including, but not limited to, operations costs and the General Budget, until the effective date of its withdrawal. E. Expulsion of Member: The Board may, by a two-thirds (2/3) vote of the Board members, terminate a Member Agency's membership in the Authority for a material breach of this Agreement after six (b) months' notice to such Member Agency. A Member Agency so expelled shall be responsible for capital expenditures and non-capital obligations of the Authority as set forth in Article 4, Section D above. Further, a Member Agency so expelled shall have the rights as set forth in Article 4 D(3) with respect to termination of its delegation of franchising authority and partial assignment of the franchise agreements. F. Reinstatement: An agency, subsequent to its withdrawal, or subsequent to expulsion, may seek reinstatement as a Member of the Authority. Application for reinstatement shall be made in writing to the Board. An agency shall be reinstated upon a two-thirds (2/3) vote of all members of the Board as then constituted. The Board may require an agency seeking reinstatement to meet any terms and conditions which the Board deems appropriate. G. Division of Propgrty and Obligations on Dissolution: Upon dissolution of the Authority as a legal entity, all debts and obligations of the Authority, including all bonded indebtedness, shall be paid, and the remaining property of the Authority shall be divided 11 F:\DMS\7CS.DIR\0115230.05 in proportion to the contributions made among all of the agencies who are parties to this Agreement at the time of its dissolution. H. Flow Control: With regard to any flow control rights that Member Agencies may have with-respect to any solid waste, Member Agencies shall not exercise such flow control rights for solid waste collected within the Authority's jurisdictional boundaries in any manner inconsistent with the terms of any Authority franchise or other contractual agreements. To the extent that Member Agencies may now, or in the future, have the authority to exercise flow control for the said waste stream collected within their jurisdictional boundaries, the Authority shall, on entering into a contract or franchise concerning collection, transfer and disposal of solid waste, be deemed to have the authority to exercise such flow control rights for the solid waste within the jurisdictional boundaries of the Authority under the terms of this Agreement. Nothing herein is intended in any manner to constitute an exercise of flow control by the Authority or its Member Agencies. The intent of this Agreement is to provide recognition of the respective roles of the Authority and its Member Agencies with respect to solid waste flow control issues. Moreover, this Agreement shall be interpreted to be limited by existing and developing law on issues of flow control and interstate commerce. I. Acceptance of Waste Stream: The Authority shall accept the waste stream of any Member Agency, whether delivered for solid waste handling by the Member Agency or by a franchisee of the Authority or Member Agency, to the extent the Authority owns or operates solid waste handling facilities designed and constructed to accommodate the waste stream from the affected Member Agency and the facility or facilities have adequate capacity to serve the Member Agency's entire need. The Authority shall attempt to acquire, construct and/or operate Authority facilities in such a manner as to best accommodate the solid waste handling needs of all Member Agencies. 1. Funding From Member Agencies: Subject to Article 1, Section E, each Member Agency shall provide its share of the Authority's general budgetary obligation. Each initial member's share is set forth in Exhibit A attached hereto and incorporated herein by reference and made a part hereof as if fully set forth herein. K. Liability: The turt liability of the Authority, all members of the Board, and all officers and employees of said Authority shall be controlled by the provisions of Division 3.6 of Title I of the Government Code of the State of California. Any tort and contractual liability incurred by or imposed upon the "Authority" shall remain the sole liability of the Authority rather than the liability of the Member Agencies, to the full extent such allocation of liability is permitted by law. The provisions of said Division relating to the indemnification of public employees and the defense of actions against them arising out 12 F:\DMS\TCS.DIR\0115230.05 of any act or omission occurring within the scope of their employment shall apply to all Authority directors, officers and employees. Notwithstanding the specific terms of this section, the Authority and the Member Agencies shall retain the power to allocate liability between the Authority and the Member Agencies, or among the Member Agencies, in a manner other than as set forth above pursuant to written agreement or to do the same for specific projects or undertakings of the Authority. To the extent that any liability of the Authority, whether based on contract, tort or otherwise, passes through to a Member Agency, or Member Agencies, said liability shall be apportioned based upon principals of fault. If, for any reason, apportionment between Member Agencies cannot be based upon fault under the circumstances involved, then apportionment shall be based upon that proportion that the total tonnage of solid waste collected within the jurisdiction of each Member Agency bears to the total tonnage of solid waste collected within the jurisdiction of all members of the Authority as more fully described in Article l(E). L. Indemnity: The Authority shall indemnify, defend (at the Authority's sole expense), and hold harmless the Member Agencies, their respective officers, directors, employees, and agents from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding, or suit of any and every kind and description (including, but not limited to, injury to and death of any person and damage to property, or for contribution or indemnity claimed by third parties) arising as the sole result of the Member Agency or Agencies' status as members of the Joint Powers Authority, i.e. liability of the Member Agency is derivative only. The Authority's duty to indemnify, hold harmless and defend shall survive the expiration or earlier termination of this Agreement. M. Insurance: Each Member Agency and its respective officers, directors and employees shall be named as additional insured to the same extent and degree that the Authority and its officers, directors and employees are named as additional insureds with respect to any insurance as required by the Authority pursuant to the terms of any contract or franchise agreement entered into by any other party with the Authority. N. Term and Termination: This Agreement shall continue in force until terminated as specified by this section. This Agreement may be terminated at the end of any Fiscal Year by consent of all Member Agencies; however, this Agreement and the Authority shall continue to exist for the purpose of disposing of all claims, the distribution of assets, and any other functions necessary to conclude the affairs of the Authority. Upon termination, payment of the obligations and division of the property of the Authority shall be conducted pursuant to Section G of this Article. 13 F:\DMS\TCS.DIR\0115230.05 ARTICLE 5: PROJECT FINANCINt2 A. Separate Contracts: Financing of specific capital projects, such as the acquisition or construction of solid waste facilities by the Authority, shall be subject to separate contracts between the Authority and Member Agencies which intend to participate in the specific facility. The contracts shall set forth each agency's responsibility for capital expenditures and operating expenses, as well as such other germs as may be appropriate. B. Debt: The Authority may issue or cause to be issued bond and other indebtedness, and pledge any property and/or revenues as security to the extent permitted by law. Any and all debts, liabilities, and obligations incurred by or imposed upon the Authority shall be the debts, liabilities, and obligations solely of the Authority, rather than the debts, liabilities, and obligations of the individual Member Agencies. C. Financial Contribution: For agencies joining the Authority after the effective date of this Agreement, the Board shall determine such agencies' proportionate financial contribution, which is due upon joining the Authority. D. Funding: It is intended that the liabilities of the Authority, to the fullest extent possible, are funded by revenues generated by facility operations or through solid waste fees and franchise fees based on services provided by Authority or pursuant to Authority direction or regulation. ARTICLE 6: EXERCISE OF AUTHORITY'S POWERS This Agreement is entered into under the provisions of Article 1 of Chapter 5, Division 7, Title One of the Government Code concerning Joint Powers Agreements. As to those powers vested in the Authority pursuant to Section 6508 of the Government Code, they shall be exercised in the same manner and subject to the same restrictions as those applicable to a sanitary district pursuant to statutes and laws of the State of California. 14 F:\DMS\TCS.DIR\0115230.05 ARTICLE 7: OBLIGATIONS OF AUTHORITY Any and all debts, liabilities, and obligations incurred by or imposed upon the Authority shall be the debts,.liabilities, and obligations solely of the Authority and no capital or administration debt, liability, or obligation shall thereby be imposed upon any party to this Agreement or the collective parties hereto. PASSED AND ADOPTED this day of , 19_ by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors Central Contra Costa Solid Waste Authority COUNTERSIGNED: Secretary Central Contra Costa Solid Waste Authority APPROVED AS TO FORM: Kenton L. Alm District Counsel 15 f:\DMS\TCS.DIR\0115230.05 BOARD OF SUPERVISORS, CONTRA COSTA COUNTY, CALIFORNIA Re: Authorizing Central Contra Costa RESOLUTION NO. 95/ Solid Waste Authority to enter Solid Waste Collection Agreements The Board of Supervisors of Contra Costa County RESOLVES THAT: WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (hereinafter "AB 939"), as set forth in Public Resources Code §§ 40000 et seq., as it may be amended from time to time, has declared that it is within the public interest to authorize and require local agencies, including cities, to make adequate provisions for solid waste handling within their jurisdiction; and WHEREAS, County of Contra Costa, pursuant to Public Resources Code § 40000, Government Code § 25827, the California Constitution and preexisting laws, could have historically provided for the collection, transfer and disposal of solid waste generated within its unincorporated limits through issuance of exclusive collection franchises; and WHEREAS, Central Contra Costa Sanitary District (hereinafter "CCCSD"), pursuant to its enabling act, case law and as otherwise provided for in Public Resources Code §§40000 et seq., has historically provided for the collection, transfer and disposal of solid waste generated within certain portions of its jurisdictional boundaries;in some unincorporated County areas through issuance of exclusive collection franchises; and WHEREAS, Central Contra Costa Solid Waste Authority (hereinafter "CCCSWA") is a joint powers agency formed pursuant to Government Code § 6500, et seq. and currently is and will be comprised of member agencies of the City of Walnut Creek, Contra Costa County and CCCSD; and WHEREAS, a joint powers agency, as a separate public entity, may exercise those powers commonly held by its respective members, to the extent the member agencies provide for the exercise of such common powers to the joint powers agency; and accordingly, CCCSWA, through the Joint Powers Agreement, as it is to be amended, will have the authority to contract for the collection, transfer and disposal of solid waste generated within specified jurisdictional boundaries of its member agencies; and WHEREAS, the Contra Costa County has concluded that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries will serve to consolidate coordination and planning of such collection, transfer and disposal activities, while providing an opportunity to maximize the ratepayers' market power while providing for economies of scale, thus benefiting the public served by CCCSWA, including the citizens of involved unincorporated County areas; and WHEREAS, AB 939 has authorized and directed counties' among other public agencies, to develop and implement plans with respect to the Source Reduction and Recycling Elements and Household Hazardous Waste Elements as specified therein; and RESOLUTION NO. 951 1 Z 156 'ON Noun-lOS3u 139}}a axle} llegs uoi}nlosaa slgl -g •joeaJuoo aql 10 wia} aqj aol palello6au se juaweal6e aslgouej} 944 aalslulwpe of saaa6e 'os 6ulop ul 'aanaMOH -/(llaoglne}o suolle6alep aql 'uoseaa Aue aol 'awl} Aue Ie MejpgllM of lg61j eq} 6uinaasaa Aluno0 e}so0 ea}uo0 uodn peuol}lpuoo aaq:pn} sl uol}e6alep pleS .t, pue 'sluaweaAe asigouea; aqj jo uol}noaxe o}aolad VAAS000 Aq pajoeue 6ulaq luaua99J6y saaMod lulof eqj of s}uawpuawe aleiidoidde uodn peuolllpuoo aaq:pnl pue 'anogeulaaaq peouaaa}aa palep s}uaweaAe aslgoueal aqj of aeliwls Allel}ue}sgns waoj a ul aq (legs `dMS000.Aq olid paia}ue s}uaw99a6e aslgOue4 Aue INI UO'Ie}lwll eqj of joefgns sl pue SIUawaaa6e asigoueaj pasodoid aqj jo wia}ae;DA (g) jg6la eqj aol sl anoge (Z) pue (`) ul gpoj }as se `bMS000 of Ajuno0 aqj woa; Allaoglne jo uolle6alep p1eS '£ 'suoile6alop Ieuoglppe asaq}SOI}uawaaa6y saaMod 3ulOr papuawe aql ui paylluapl Sema paleaodaooulun payioads eqj aol Allaoq}ne 6uislgoueaj VAAS000 aqj g6noaq} Aluno0 94110 S3MHH PUB s32]2JS aqj juaweldwl of dMS000 o4 Aluoglne sp sa4e6alap Ajuno0 aql -Z pue 'eolnaas alseM uaaa6 pue 6ulloAoaa 'esnjaa 10 UOiSlnoid ao}}uawaaa6y SaaMod IUIOr papuawe plesajoje aqj ul papuepl se Aluno0 eqj jo sauepunoq leuopipsunf aq} uigllM kolpial eqj aol lesodslp pue aajsueaj 'uol}oalloo alseM phos 6uluieOu03 spe.iJuoo olid jajua of VAAS000 o} Allloglne sji sa}e6elep Ajuno0 siq} 'y/AS000 ui dlgsaagwew s,Ajuno0 slg} WM L :SM01101 Se SanlosaI Ajuno0 elso0 ealuo0 jo saosuuadnS jo PMS NI '32JOA3213H1 `MON palep ` AAS000 Aq paaedaid SJuawaaa6e anoge eqj of aepwls Allellue}sgns wjoj a uI aje pue SUOiSinoid oiseq aqj ao} apinoid yMS000 Aq palnoexe aq O}JOIaaaq} SaslgOUeJI aqj 10 Swaa} aqj jegj papinoid 'seaje paleaodaooulun payloads aol VMS000 o} (a}seM ua9a6 pue 6ulloAoaa 'asnja.a aol) Allaoglne aslgoueal uoijoalloo alseM phos sal aje6alap of 6ullllM sl A4uno0 e4so0 e.quo0 'S`d3Z13HM PUB 'saolnaaS 6uI19�aeIN pue 6ulssaOOJd 'uol1391100 a}seM u99a0 pue 6uiIOAOGU SOI luaw96eueVI a}seM AalleA PUB ` AAS000 uae/v%49q pue 'lesodsld pue jalsueal 'uol}oallo0 asnja�j joj saljlsnpul slaja3-6uluMoig pue VMS000 uaeN;gq saslgouejj op 6ulaa}ue ul asn iol VMS000 aqj Aq paiedaid ueaq aneq S}uawa9a6e 9slgoue4 'Sd32J3HM pue 'seaae pajeaodiooumn payloads uie:peo aol siseq leuoi6aa a uo uoi}ejuawaldwl ejeuipa000 pue ialslulwpe 04 yMS000 jo asn g6noagl Apualoy49 Isow pagslldw000e aq ueO slu9w913 alseM snopjezeH plogasnOH pue slu9wa13 6ulloAoa�I pue uOilonpay aolnoS asegj jo uoljejuawaldwi jegj papnlouoo seq Ajuno0 elsOO 84UOO 941 `S`d3233HM PASSED AND ADOPTED on , 1995, by the Board of Supervisors by the following vote: AYES: NOES: ABSENT: ABSTAIN: I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By: Deputy RESOLUTION NO. 951 3 1tJ L{J COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ, CALIFORNIA Date: July 24, 1995 To: Kent Alm and Tom Sites, SELLAR, HAZARD, SNYDER, KELLY, & FITZGERALD 11 1 XA/* From: Victor J. Westman, County Counsel . —I Re: "Transitional Agreements" Attached are my proposed hand written revisions to pages 2, 3 , 5, 6, 7, 8 , 9, 10, 11, 12 , and 14 of your June 12 , 1995 draft for the CCCSD - VWM Franchise Area for your consideration. Similar revisions are, of course, proposed for the North Concord/Pacheco/ Clyde June 12 , 1995 Transitional Agreement; except that all references to "August 6, 1996" should be changed to "the expiration of the . CCCSD - PHBS Franchise, " and see additional proposed revisions to X9 . 1 on attached page 12 for this second agreement . If possibly, we should meet later this week to discuss these draft agreements . Depending on that meeting' s time and date, I will attempt to determine if Val Alexeeff can also attend. At this time, I can be available to meet Wednesday (7-26-95) from 3 : 30 to 5 : 00 p.m. or any time on Friday (7-28-95) except from 1 : 30 to 2 .30 p.m. VJW:bmw CC : Supervisor Gayle Bishop Supervisor Jeff Smith Val Alexeeff, GMEDA Attachments vjw-1:a:\tran-agr.me2 FILE CUPY -DRAF=T June_-12,-,_11995 C. WHEREAS, Waste Management Collection and Recycling, Inc., through its Division, Valley Waste Management (hereinafter "VWM"), is the current franchisee under the Valley Disposal Service, Inc. franchise agreement (hereinafter "VWM Franchise"); and / D. WHEREAS, the County,pursuant to California Government Code§2582Ras the V authority to collect or contract for the collection, or both, of .olid waste within the unincorporated areas of the County; and E. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and F. WHEREAS Central Contra Costa Solid Waste Authority(hereinafter"CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised of member agencies of CCCSD and the City of Walnut Creek; and G. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and V// C.le4JY H. WHEREAS, the County desires to have *e exclusive authority to franchise or contract for the collection of solid waste within the CCCSD-VWM Franchise Area;_and Xq 1. WHEREAS, the County, pursuant to California Government Code §25827.)and T other authority found in §40000 et seq. of the California Public Resources Code, has the 2 F:\DMS\TCS.DI4\0118669.03 r DRAFT- June 12, 1995 authority to-,collect or contract for the collection, or both of solid waste within the unincorporated areas of the County; and J. WHEREAS, the County has requested by action of the Board of Supervisors on to become a member of CCCSWA; and K. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and L. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas as well as constituents of other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB r, 939 obligations; and M. WHEREAS, CCCSD is willing to delegate its solid waste collection franchise authority to the County, provided that the County becomes a full and equal 'member of ;/tJ 7(Sc Yt? t✓Pi{'Y' G�S7/( y . CCCSWA, and provided further that the County to CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of the Authority as set forth in the CCCSWA 1994-1995 Franchising RFP. P L�UJ! J �/"����: (� ( l/+i/ i"/ (C3� J vi�I f, NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: r d F:\DMS\TCS.DIR\0118669.03 r , r DRAFT- June 12, 1995 � n 1.5 Solid Wastet z. "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 and regulations promulgated thereunder, as amended from time to time. (The term "garbage" is the defined term used within the VWM Franchise, which term is defined therein and is relatively synonymous with the use of the term "solid waste" within this Agreement). ARTICLE 2 r 1w Obligations of County 221 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this Agreement. 2.2 Concurrent with the execution of this agreement, the County shall file a resolution with respect to the CCCSD-VWM Franchise Area delegating its franchising authority as of 1� March 1, 1996 to the CCCSWA The County shall further execute any other reasonably necessary documents for the purpose of enabling the CCCSWA ,to undert* its role as / ors SPE'ce %Ay7r � �j lP�vV t1 the regional franchising authority If the current CCCSD franchise agreement with VWM is extended for a period of time not to exceed one year, the effective date for the 5 F:\DMS\TCS.DIR\0118669.03 r DRAFT - ,Tune 12, 1995 delegation of the franchise authority to CCCSWA by the County shall be extended by a �\V like period of time. / / C C 2.3 /'f A.V �7 County shall be responsible for allsolid waste management of the unincorporated areas of the CCCSD-VWM Franchise Area set forth in this agreement beginning March 1, 1996 or such later date resulting from the extension of the CCCSD-VWM franchise. AR'T'ICLE 3 Obligations of CCCSD �' C��/f{, ✓ / 3_1 CCCSD shall delegate to the County and ther refrain from exercising its franchising authority in the CCCSD-VWM Franchi Area so long as the County exercises its franchising�authority within that ar T his delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective March 1, 1996, or the date of termination of the current franchise agreement with VWM if extended, which extension may not exceed one year. 3.2 CCCSD shall be responsible for administration of the current VWM franchise agreement for the remaining term of said agreement, including any extension thereof not exceeding one year. In addition, CCCSD shall continue to administer all AB 939 diversion and recycling activities currently being undertaken pursuant to the VWM franchise agreement 6 F:\DMS\TCS.DIR\0118664.03 DRAFT- June 12, 1995 and otherwise currently being undertaken by CCCSD, or on it behalf within the CCCSD- VWM Franchise Area for the remaining term of said franchise, including any extension thereof not to exceed one year. CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the VWM Franchise, as are available and requested by County. 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-VWM Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-VWM Franchise Area shall be subject to the jurisdiction of the CCCSWA� yr 4.2 County and CCCSD shall; in good faith, participate as members of CCCSWA in the RFP �process, including the executiof f the franchise agreements providing or solid waste services within the CCCSWA jurisdictions contemplated by the RFP; provided that CCCSWA Board of Directors determines that such solid waste franchise agreements are 7 F:\DMS\TCS.DIR\0118664.03 DRAFT- June 12, 1995 acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 4.3 During the period between the effective date of this agreement and the effective date of a new franchise agreement covering the CCCSD-VWM Franchise Area entered into pursuant to the ongoing CCCSWA RFP process, County shall be allowed full opportunity to participate on staff and Board level, on all decisions with regard to processing the RFP proposals and with regard to entering into appropriate franchise and disposal agreements. 4.4 ✓ Un CCCSD and County agree that except for the authority delegated herein, to CCCSWA with respect to the provision of solid waste services, upon the termination of the VWM t✓ Franchise, including any extension not to exceed one year thereof, County shall be responsible for administration of all AB 939 activities including diversion and recycling within the CCCSD-VWM Franchise Area. ARTICLE 5 Franchise Fees 5.1 CCCSD has received all franchise fee payments pursuant to the VWM Franchise and shall receive any additional payments under any extension thereof not to exceed one year. County shall receive no portion of said franchise fees, however, County shall not be 8 f:\DMS\TCS.DIR\0118669.03 DRAFT- June 12, 1995 required to pay any membership fee for joining CCCSWA. The CCCSWA is funded annually on a tonnage basis. The CCCSWA fees with respect to the CCCSD-VWM Franchise Area have been paid to date, and will be paid by, or on behalf of, CCCSD during the remaining term of the VWM franchise agreement and extension thereof "Oil C't'^�ys not to exceed one year. Thereafter, l for ' share of membership fees or costs due CCCSWA for the County areas within the CCCSWA jurisdictional boundaries. ARTICLE 6 Liability Issues 6.1 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical, Inc., US District Court, Northern District of California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the . wasteshed within the CCCSD-VWM Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base in the existing CCCSD-VWM Franchise Area, notwithstanding the assign men Utransfer of the 9 f:\DMS\TCS.DIR\0118669.03 DRAFT- June 12, 1995 franchise authority to the County. The proportionate share of responsibility for the customers in the exis g,,,,ftanchise area shall be based on the waste derived historically Aj from the area. . i 'r v 6.2 The County as the future franchising authority, either directly or through the CCCSWA, agrees that the proportionate share of any liability or settlement costs to be borne by the customer/constituent base of the CCCSD-VWM Franchise Area, and amounts sufficient � to pay for the net proportionate liability, if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provid;as a pass-through in the r whether the liability for this " ��'7'" ��Cy� �+ wasteshed be directly,imposed on CCCSD and/or a County in the Acme Lawsuit..? 6 33 `,�� es 'W- "MAO �5cyP;? .,- -`_��i�J�J 76;:iOy" Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current VWM franchise agreement or any extension 10 f:\DMS\TCS.DIR\0118669.03 RAFT- 12 1 �. lune 995 thereof not to exceed one year, or-arising from other solid waste administration activities `j within the CCCSD-VWM Franchise Area during such term, shall be the responsibility Po Y of CCCSD with respect to occurrences riorr to the effective (late of termination of the • / �.�: �Q/,,�c�1 ter•. 4,!�-��-' ./ VWM chise agreement. County shall be responsible for any liability arising i� 7 �a ,occurrences after said date of terminatign of Pe VWM ARTICLE 7 t Indemni 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or `` fines as a result of any lihbility arising from events specified in 6.4 ea g prior to the effective date of the termination of the current VVTM franchise agreement or any extension thereof not to exceed one year. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 11 f:\DMS\TCS_DIR\0118669.03 DRAFT-June 12, 1995 County-shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties,)forfeitures, or fines as a result of any liability alit sing frowevents as specified in 6.4 above aee after the effective date of the termination of the current VWM Franchise or any extension i thereof not to exceed one yea ARTICLE 8 Conditions Precedent 8.1 The following shall be conditions precedent to the terms of this Agreement becoming legally effective (in addition to the proper execution of this Agreement by both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be requiredto have its two representatives j� seated as full members of the CCCSWA Board; and (2) CotVty shal e such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994- 1995 RFP documents and map therefrom attached as Exhibit B) to the CCCSWA to 12 F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall, be enforced as if such invalid or unenforceable provision had not been contained herein. 96. Attorney's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of the this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 9.7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any / termination of this agreement, unless otherwise modified by the parties hereto in writing. r' eP �r-1 ,, �L/1,,,L'--`t/,',, •lIn.. ly L el y4�� '� f_\DMSVCS. -1 R\011 9:03-- - - ---- DRAFT- June 12, 1995 (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall take such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994- 1995 RFP documents and map therefrom attached as Exhibit B) to the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994- 1995 RFP process. ` C ARTICLE 9 J Consent to Assi ng ment J 9.1 This agreement is subject to CCCSD obtaining consent by PHBS, Inc. to the assignment Oti� -of2tth epfranchise agreement from CCCSD to the County, said^consent to be =6ww A acceptableetto CCCS W Said consent shall include a provision from PHBS, Inc. that PHBS, Inc. will not bring suit or seek any other relief from CCCSD concerning any issues relating to the exclusivity of the franchise agreement and/or the jurisdictional boundaries of the franchise for all periods prior to the effective date of assignment of the PHBS franchise agreement. �'-� ,S (,�XpCr,, GL4�� Bd ,Pd[k etw4rka 4U 12 F:\DMS\TCS_DIR\0118828.03 DRAFT-June 12, 1995 TRANSITIONAL AGREEMENT BETWEEN COUNTY OF CONTRA COSTA AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS TO BE WITHIN THE JURISDICTION OF CCCSWA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for the transfer of the authority to manage collection of garbage, and franchising thereof. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection,transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512, and as otherwise provided in for in Public Resources Code §40000, et seq; and B. WHEREAS, CCCSD entered into a franchise agreement with Valley Disposal Service, Inc. granting Valley Disposal Service, Inc. the exclusive franchise to collect garbage within the CCCSD-VWM Franchise Area, defined below, for a term of ten years expiring February 28, 1996; and F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 C. -WHEREAS, Waste Management Collection and Recycling, Inc., through its Division, Valley Waste Management (hereinafter "VWM"), is the current franchisee under the Valley Disposal Service, Inc. franchise agreement (hereinafter "VWM Franchise"); and D. WHEREAS, the County,pursuant to California Government Code §25827 has the authority to collect or contract for the collection, or, both, of solid' waste within the unincorporated areas of the County; and E. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and F. WHEREAS Central Contra Costa Solid Waste Authority(hereinafter"CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised of member agencies of CCCSD and the City of Walnut Creek; and G. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and H. WHEREAS, the County desires to have the exclusive authority to franchise or contract for the collection of solid waste within the CCCSD-VWM Franchise Area; and I. WHEREAS, the County, pursuant to California Government Code §25827 and other authority found in §40000 et seq. of the California Public Resources Code, has the 2 F:\DMS\TCS.DIR\0118669.03 DRAFT - June 12, 1995 authority to collect or contract for the collection, or both of solid waste within the unincorporated areas of the County; and 1. WHEREAS, the County has requested by action of the Board of Supervisors on to become a member of CCCSWA; and K. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and L. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas as well as constituents of other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and M. WHEREAS, CCCSD is willing to delegate its solid waste collection franchise authority to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegate to CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of the Authority as set forth in the CCCSWA 1994-1995 Franchising RFP. NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: 3 F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 ARTICLE 1 Definitions 1.1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at §40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-VWM Franchise Area f "CCCSD-VWM Franchise Area" means and includes the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the VWM Franchise. The franchise area is further described by the 600 scale maps as referenced in the franchise agreement. 1.3 Effective Date "Effective Date" means the first date upon which this Agreement is legally effective Wowing all signatures and approvals required by the parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is the agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 4 F:\DMS\TCS.DIR\0118669.03 DRAFT- ,lune 12, 1995 1.5 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 and regulations promulgated thereunder, as amended from time to time. (The term "garbage" is the defined term used within the VWM Franchise, which term is defined therein and is relatively synonymous with the use of the term "solid waste" within this Agreement). ARTICLE 2 Obligations of County 2.1 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this Agreement. 2.2 Concurrent with the execution of this agreement, the County shall file a resolution with respect to the CCCSD-VWM Franchise Area delegating its franchising authority as of March 1, 1996 to the CCCSWA. The County shall further execute any other reasonably necessary documents for the purpose of enabling the CCCSWA to undertake its role as the regional franchising authority. If the current CCCSD franchise agreement with VWM is extended for a period of time not to exceed one year, the effective date for the 5 F:\DMS\TCS.DIR\0118664.03 DRAFT-June 12„ 1995 delegation of the franchise authority to CCCSWA by the County shall be extended by a like period of time. 2 County shall be responsible for all solid waste management of the unincorporated areas of the CCCSD-VWM Franchise Area set forth in this agreement beginning March 1, 1996 or such later date resulting from the extension of the CCCSD-VWM franchise. ARTICLE 3 Obligations of CCCSD 3.1 CCCSD shall delegate to the County and thereafter refrain from exercising its franchising authority in the CCCSD-VWM Franchise Area so long as the County exercises its franchising authority within that area. This delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective March 1, 1996, or the date of termination of the current franchise agreement with VWM if extended, which extension may not exceed one year. 3.2 CCCSD shall be responsible for administration of the current VWM franchise agreement for the remaining term of said agreement, including any extension thereof not exceeding one year. In addition, CCCSD shall continue to administer all AB 939 diversion and recycling activities currently being undertaken pursuant to the VWM franchise agreement 6 F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 and otherwise currently being undertaken by CCCSD, or on it behalf within the CCCSD- VWM Franchise Area for the remaining term of said franchise, including any extension thereof not to exceed one year. CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the F VWM Franchise, as are available and requested by County. 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-VWM Franchise Area. ARTICLE 4 Participation in CCCSWA 41 The CCCSD-VWM Franchise Area shall be subject to the jurisdiction of the CCCSWA. 4.2 County and CCCSD shall; in good faith,participate as members of CCCSWA in the RFP process, including the execution of the franchise agreements providing for solid waste services within the CCCSWA jurisdictions contemplated by the RFP; provided that CCCSWA Board of Directors determines that such solid waste franchise agreements are 7 F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 4.3 During the period between the effective date of this agreement and the effective date of a new franchise agreement covering the CCCSD-VWM Franchise Area entered into pursuant to the ongoing CCCSWA RFP process, County shall be allowed full opportunity to participate on staff and Board level, on all decisions with regard to processing the RFP proposals and with regard to entering into appropriate franchise and disposal agreements. 4.4 CCCSD and County agree that except for the authority delegated herein to CCCSWA with respect to the provision of solid waste services, upon the termination of the VWM Franchise, including any extension not to exceed one year thereof, County shall be responsible for administration of all AB 939 activities including diversion and recycling within the CCCSD-VWM Franchise Area. ARTICLE 5 Franchise Fees 5.11 CCCSD has received all franchise fee payments pursuant to the VWM Franchise and shall receive any additional payments under any extension thereof not to exceed one year. County shall receive no portion of said franchise fees, however, County shall not be g F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 required to pay any membership fee for joining CCCSWA. The CCCSWA is funded annually on a tonnage basis. The CCCSWA fees with respect to the CCCSD-VWM Franchise Area have been paid to date, and will be paid by, or on behalf of, CCCSD during the remaining term of the VWM franchise agreement and any extension thereof not to exceed one year. Thereafter, County shall be responsible for its share of membership fees or costs due CCCSWA for the County areas within the CCCSWA jurisdictional boundaries. ARTICLE 6 Liability Issues 6.1 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical. Inc.. US District Court, Northern District of California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-VWM Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base in the existing CCCSD-VWM Franchise Area, notwithstanding the assignment/transfer of the 9 F:\DMS\TCS.DIR\0118669.03 DRAFT- June 1.2, 1995 franchise authority to the County. The proportionate share; of responsibility for the customers in the existing franchise area shall be based on the waste derived historically from the watershed area. 6.2 The County as the future franchising authority, either directly or through the CCCSWA, agrees that the proportionate share of any liability or settlement costs to be borne by the customer/constituent base of the CCCSD-VWM Franchise Area, and amounts sufficient to pay for the net proportionate liability, if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided as a pass-through in the rates, or otherwise funded through county action, whether the liability for this wasteshe d be directly imposed on CCCSD and/or the County, in the Acme Lawsuit. 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current VWM franchise agreement or any extension 10 F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 thereof not to exceed one year, or arising from other solid waste administration activities within the CCCSD-VWM Franchise Area during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of termination of the VWM franchise agreement. County shall be responsible for any such liability arising from occurrences after said date of termination of the VWM Franchise. ARTICLE 7 In emni 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above occurring prior to the effective date of the termination of the current VWM franchise agreement or any extension thereof not to exceed one year. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 ll F:\DMS\TCS.DIR\0118669.03 DRAFT - June 121, 1995 County shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees,volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and an), penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above occurring after the effective date of the termination of the current VWM]Franchise or any extension thereof not to exceed one year. ARTICLE 8 Conditions Precedent The following shall be conditions precedent to the terms of 'this Agreement becoming legally effective (in addition to the proper execution of this Agreement by both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall take such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994- 1995 RFP documents and map therefrom attached as Exhibit B) to the CCCSWA to 12 F:\DMS\TCS.DIR\0118669.03 DRAFT-June 12, 1995 enable-the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994- 1995 RFP process. ARTICLE 9 Miscellaneous Provisions 2.1 Entire Agreement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 2.2 Section headings The article headings and section headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 9_3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 9.4 Amendment This agreement may not be modified or amended in any respect except by a writing signed by the parties hereto. 9.5 Severability 13 F:\DMS\TCS_DIR\0118669.03 DRAFT - June 12, 1995 If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 9.6 Attorney's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of the this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 9_7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. 14 F:\DMS\TCS.DIR\0118669.03 t DRAFT -June 12, 1995 The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: 1995 CENTRAL CONTRA COSTA SANITARY DISTRICT BY: Roger Dolan, General Manager Dated: 1995 COUNTY OF CONTRA COSTA BY: APPROVED AS TO FORM: Kenton L. Alm, General Counsel Central Contra Costa Sanitary District General Counsel County of Contra Costa 15 F:\DMS\TCS.DIR\0118669.03 DRAFT- June 121, 1995 TRANSITIONAL AGREEMENT BETWEEN COUNTY OF CONTRA COSTA AND CENTRAL CONTRA. COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS OF THE NORTH CONCORDIPACHECO/CLYDE SOLID WASTE FRANCHISE AREA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for the transfer of the authority to manage collection, transport and disposal of solid waste, and franchising thereof within certain unincorporated areas within North Concord, Pacheco and Clyde. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection, transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512 and as otherwise provided for in Public Resources Code §§40000, et seq; and F:\DMS\TCS.DIR\0118828.03 DRAFT - June 12, 1995 B. -- WHEREAS, CCCSD entered into a franchise agreement with Boyd Olney,Jr. dba Pleasant Hill Bayshore Disposal, a sole proprietorship (hereinafter "PHBS")dated April 1, 1986 granting PHBS the exclusive franchise to collect garbage within the CCCSD-PHBS Franchise Area, defined below, for a term of ten years expiring March 31, 1996 (hereinafter "PHBS Franchise") attached hereto as Exhibit A; and C. WHEREAS, Pleasant Hill Bayshore Disposal, Inc. (hereinafter PHBS, Inc.) a wholly owned subsidiary of Browning-Ferris Industries of California, Inc. is now operating as the successor in interest to PHBS; and D. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and E. WHEREAS, Central Contra Costa Solid Waste Authority . (hereinafter "CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised by member agencies of CCCSD and the City of Walnut Creek); and F. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and G. WHEREAS, the County desires to have the exclusive authority to franchise or contract for the collection of solid waste within the CCCSD-PHBS Franchise Area; and 2 f:\DMS\TCS.DIR\0118828.03 DRAFT-June 12, 1995 H. -- WHEREAS, the County,pursuant to California Government Code §25827 has the authority to collect or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and I. WHEREAS, the County has requested by action of the Board of Supervisors on to become a member of CCCSWA; and J. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and K. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas, as well as constituents of the other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and L. WHEREAS, CCCSD is willing to delegate its solid waste collection franchise authority to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegate to CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of the Authority set forth in the CCCSWA 1994-1995 Franchising RFP. NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: 3 f:\DMS\TCS.DIR\0118828.03 DRAFT - June 12, 1995 ARTICLE 1 Definitions 1.1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at§40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-PHBS Franchise Area "CCCSD-PHBS Franchise Area" means and includes the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the PHBS Franchise. The franchise area is further described by the 600 scale maps as referenced in the franchise agreement. 1.3 Effective Date "Effective Date" means the first date upon which this Agreement is legally effective following all signatures and approvals required by the parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is the agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 4 F:\DMS\TCS.DIR\0118828.03 DRAFT-June 12, 1995 1.5 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 and regulations promulgated thereunder, as amended from time to time. (The term "garbage" is the defined term used within the PHBS Franchise, which term is defined therein and is relatively synonymous with the use of the term "solid waste" within this Agreement.) ARTICLE 2 Obligations of County 2.1 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this Agreement. 2.2 Except as provided herein below, County shall be responsible for all solid waste management of the unincorporated areas of the CCCSD-PHBS Franchise Area as of the effective date of this agreement. 23 Upon the expiration of the current unextended term of the PHBS franchise agreement, County shall be responsible for administration of all AB 939 activities including diversion and recycling within the existing CCCSD-PHBS Franchise Area. 5 F:\DMS\TCS.DIR\0118828.03 DRAFT - June 12, 1995 .ARTICLE 3 Obligations of CCCSD 3.1 CCCSD shall file a resolution assigning the PHBS Franchise for the remainder of its term and thereafter refraining from exercising its franchising authority within the CCCSD-PHBS Franchise Area so long as the County exercises its franchising authority within that area. This assignment and delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective on 1995. 3.2 CCCSD shall continue to administer all AB 939 diversion and recycling activities currently being undertaken pursuant to the PHBS franchise; agreement and otherwise - currently being undertaken by CCCSD, or on its behalf within the CCCSD-PHBS Franchise Area until March 31, 1996. CCCSD, notwithstanding the assignment of the franchise agreement to County, shall continue to provide this service for the balance of the franchise term, based on programs which have already been initiated, and planned and budgeted for. 3.3 CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the PHBS Franchise as are available and requested by County. 6 F:\DMS\TCS.DIR\0118828.03 DRAFT-June 12, 1995 3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-PHBS Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-PHBS Franchise Area shall not be subject to the jurisdiction of the CCCSWA and it is not intended that this area be included within the CCCSWA jurisdictional boundaries, nor is it included in the 1994-1995 CCCSWA collection, transport and disposal franchise RFP process. 4.2 County and CCCSD shall, in good faith,participate as members of CCCSWA in the RFP process, including the execution of the franchise agreements providing for solid waste services within the CCCSWA jurisdiction contemplated by the RFP; provided that the CCCSWA Board of Directors determines that such solid waste franchise agreements are acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 7 F:\DMS\TCS.DIR\0118828.03 DRAFT - June 12, 1995 ARTICLE 5 Franchise Fees CCCSD has received all franchise fee payments pursuant to the PHBS Franchise for the remainder of the current term expiring in March 31, 1996. Such fees have already been allocated by CCCSD to programs for carrying out AB 939 activities within the CCCSD- PHBS Franchise Area through the remaining term of the PHI3S Franchise. County shall receive no payment of said previously collected franchise: fees, however, nor shall County be required to pay any membership fee for participation in CCCSWA for the remainder of the term of the PHBS Franchise. (Alternative language: County shall receive $ of the current year's franchise fees under the PHBS Franchise, based on the Effective Date of the within Agreement.] Nothing in this agreement is intended to limit County from imposing additional franchise fees or taking any other action in administration of the PHBS Franchise during its remaining term following the Effective Date of assignment of said franchise to the County. ARTICLE 6 Liability Issues 6.1 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical, Inc., US District Court, Northern District of California, Case No. C91- 8 f:\DMS\TCS.DIR\0118828.03 DRAFT - June 12, 1995 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-PHBS Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base of the existing CCCSD-PHBS Franchise Area, notwithstanding the assignment/transfer of the franchise authority to the County. The proportionate share of responsibility for the constituents/customers in the CCCSD-PHBS Franchise Area shall be based on the waste derived historically from that wasteshed. 6.2 The County as the future rate setting entity, agrees that the proportionate share of any liability or settlement costs to be borne by the customer/constituent base of the CCCSD- PHBS Franchise Area, and amounts sufficient to pay for the net proportionate liability, if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided as a pass-through in the rates, or otherwise funded through County action, whether the liability for this wasteshed be directly imposed on CCCSD and/or the County in the Acme Lawsuit. 9 F:\DMS\TCS.DIR\0118828.03 DARAFT - June 12, 1995 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current PHBS franchise agreement or arising from other solid waste administration activities within the CCCSD-PHBS Franchise Area during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of assignment of the PHBS franchise agreement. County shall be responsible for any such liability arising from occurrences after said date of assignment of the PHBS Franchise. ARTICLE 7 Indemnity 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and 10 F:\DMS\TCS.DIR\0118828.03 DRAFT- June 12, 1995 damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above occurring prior to the effective date of the assignment the current PHBS franchise agreement. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 County shall indemnify,defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for,injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above occurring after the effective date of the assignment of the current PHBS Franchise. ARTICLE 8 Conditions Precedent 8.1 The following shall be conditions precedent to the terms of this Agreement becoming legally effective (in addition to the proper execution of this Agreement by both parties): ll F:\DMS\TCS.DIR\0118828.03 DRAFT-June 12, 1995 (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall take such legal action as may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994- 1995 RFP documents and map therefrom attached as Exhibit B) to the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994- 1995 RFP process. ARTICLE 9 Consent to Assignment 9.1 This agreement is subject to CCCSD obtaining consent by PHBS, Inc. to the assignment of the franchise agreement from CCCSD to the County,, said consent to be in form acceptable to CCCSD. Said consent shall include a provision from PHBS, Inc. that PHBS, Inc. will not bring suit or seek any other relief from CCCSD concerning any issues relating to the exclusivity of the franchise agreement and/or the jurisdictional boundaries of the franchise for all periods prior to the effective date of assignment of the PHBS franchise agreement. 12 F:\DMS\TCS.DIR\0118828.03 DRAFT - June 12, 1995 ARTICLE 10 Miscellaneous Provisions 10.1, Entire Agreement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 13 F:\DMS\TCS.DIR\0118828.03 DRAFT - ,lune 12, 1995 10.2 Paragraph headiness The article headings and paragraph headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 10.3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 10.4 Amendment This agreement may not be modified or amended in any respect except by a writing signed by the parties hereto. 10.5 Severability If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 10.6 Attorney's Fees The prevailing party in any arbitration or lawsuit brought: to interpret or enforce the terms of the this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover 14 F:\DMS\TCS.DIR\0118828.03 1 DRAFT - June 12, 1995 its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 10.7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: 1995 CENTRAL CONTRA COSTA SANITARY. DISTRICT BY: Roger Dolan, General Manager Dated: 1995 COUNTY OF CONTRA COSTA BY: APPROVED AS TO FORM: Kenton L. Alm, General Counsel Central Contra Costa Sanitary District , General Counsel County of Contra Costa 15 F:\DMS\TCS.DIR\0118828.03 SELLAR,HAZARD,SNYDER,KELLY&FITZGERALD RUDD SELLAR A PROFESSIONAL LAW CORPORATION DEAN E.BARBIERI A.J.ENGLEKING(19241981) 1111 CMC DRIVE,SUITE 300 ROBERT B.HUNTER,II JAMES L.HAZARD POST OFFICE Box 3510 A.DUANE PINKERTON,II MARTIN T.SNYDER WILLIAM E.MANNING JOHN KELLY WALNUT CREEK,CALIFORNIA 94598 JILL LATCHAW JAMES V.FITZGERALD,III TELEPHONE(510)938-1430 THOMAS C.SITES RICHARD M.MCNEELY FAX(510)256-7508 ANNE D.JACOBBERGER KENTON L.ALM LORRAINE M.TALLARICO CHARLES A.WOOD,JR. MARK CORNELIUS August 2, 1995 RONI S.ANDRESEN Valentin Alexeeff, Director Growth Management and Economic Development Agency 651 Pine Street, No. Wing, Second Floor Martinez, California 94553-1213 Lillian Fujii Deputy County Counsel County Counsel Office 651 Pine Street, 9th Floor Martinez, California 94553 Reference: TRANSITIONAL AGREEMENTS Our File No.: C3100-010.46 Dear Mr. Alexeeff and Ms. Fujii: Enclosed are the two separate transitional agreements in final form, including changes requested by County Counsel's office, along with additional redlined revisions. The strikeout and underlining in these separate additional copies indicate changes subsequently requested by Roger Dolan. The changes for the most part were for purposes of clarification only, with the possible exception of changes made to section 6.2. These latter changes may be viewed as partially substantive in nature. We hope that you can proceed to place these Agreements on your agenda for the Board of Supervisor's meeting of August 8, 1995. We assume you will have no further comments. Thank you for your courtesy and cooperation in this matter. Your truly, SELLAR, HAZARD, SNYDER, KELLY & FITZGERALD THOMAS C. SITES TCS:clb Enclosure REDLINE A TRANSITIONAL AGREEMENT BETWEEN COUNTY OF CONTRA COSTA AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS TO BE WITHIN THE JURISDICTION OF CCCSWA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for the transfer of the authority to manage collection of garbage, and franchising thereof. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection,transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512, and as otherwise provided in for in Public Resources Code §40000, et seq; and B. WHEREAS, CCCSD entered into a Franchise Agreement with Valley Disposal Service, Inc, granting Valley Disposal Service, Inc. the exclusive franchise to collect garbage Within the GGGSD Ini41 F....,.,,hise A. „, defiii d bele .., a portion of CCCSD's Jurisdictional boundaries. including both incorporated and unincorporated areas for a term of ten years expiring February 29, 1996; and F:\DMS\TCS.DIR\0118669.06 C. WHEREAS, Waste Management Collection and Recycling, Inc., through its Division, Valley Waste Management (hereinafter "VWM"), is the current franchisee under the Valley Disposal Service, Inc. Franchise Agreement (hereinafter "VWM Franchise"); and D. WHEREAS, the County, pursuant to California Government Code §25827, the California Constitution and Public Resources Code §§40,000g-,L=, has the authority to collect or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and E. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and F. WHEREAS Central Contra Costa Solid Waste Authority(hereinafter"CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised of member agencies of CCCSD and the City of Walnut Creek); and G. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the First Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; and H. WHEREAS, the County desires to have clear exclusive authority to franchise or contract for the collection of solid waste within the unincorporated sections of the current CCCSD-VWM F_franchise 74area; and 1. 3AqIEREAS, the > ptifstiant to Gaiifefniet Geyefnfnent Gede §25927—, �he 2 F:\DMS\TCS.DIR\0118669.06 Resettmes of: both of solid was > > within the unifteefper-aWd area of the Geenty; an'. H. WHEREAS, the County has requested by action of the Board of Supervisors on January 24, 1995 and thereafter to become a member of CCCSWA; and YQ. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate'local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and LK. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities r jointly for all constituents of the unincorporated areas as well as constituents of other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and Ml- WHEREAS, CCCSD is willing to delegate cede its solid waste collection franchise authority for the unincorporated areas to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegates (in the same manner as the City of Walnut Creek for its City area) to CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of the CCCSWA asset forth in the CCCSWA November 1994-1995 Franchising RFP; and AFM. WHEREAS, County previously indicated its intent to directly assume franchise administration in unincorporated areas within CCCSD on and after the expiration of the Franchise Agreement (CCCSD-PRBSVWM Franchise). on February 29. 1996; and 3 F:\DMS\TCS.DIR\0118669.06 9�. WHEREAS, CCCSD disputes the County authority to assume franchise administration in the unincorporated areas within CCCSD. NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: r 4 f:\DMS\TCS.DIR\0118669.06 ARTICLE 1 Definitions 1.1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at §40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-VWM Uninco=rated Franchise Area "CCCSD-VWM Unincoryorated Franchise Area" means and includes gnly the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the VWM Franchise. The franchise area is further described by the 600 scale maps as referenced in the Franchise Agreement. 1.3 Effective Date "Effective Date" means the first date upon which this Agreement is legally effective following all signatures and approvals required by the parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is the agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 5 F:\DMS\TCS.DIR\0118669.06 1.5 Franchise Agreement "Franchise Agreement" or "VWM Franchise." for purposes herein, means the "Agreement for Collection, Removal. and Dispersal of Garbage. Zone 2." between Valley Disposal Services. Inc. and CCCSD dated March 1. 1986. 1.6 RFP, RFP Process "RFP" and "RFP Process" means the process by which CCCSWA solicited proposals for solid waste handling and related AB 939 activities pursuant to a document dated November, 1994. entitled Central Contra Costa Solid Waste Authority Rouest for Proposals for Integrated Solid Waste Management Services and the receipt and evaluation process by CCCSWA of responses to the request for proposals. 1_7-5 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 and regulations promulgated thereunder, as amended from time to time,including Z reen waste and rec_,.yclables. (The term "garbage" is the defined term used within the 4 Franchise Agreement, which term is defined therein at section l(el and is fe4afively synonymous with the tise ef th term "solid waste" within this Agreement). 6 F:\DMS\TCS.DIR\0118669.06 ARTICLE 2 Obligations of County 2.1 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSWA prior to or simultaneously with the Effective Date of this Agreement. 2.2 Concurrent with the execution of this agreement, the County shall file a resolution with respect to the CCCSD-VWM Unincor op rated Franchise Area delegating its franchising authority as of March 1, 1996 to the CCCSWA at least in the same manner as the City of Walnut Creek as of the date this Agreement is approved by the Board of Supervisors. The County shall further execute any other reasonably necessary documents for the purpose of enabling the CCCSWA to undertake its role as the regional franchising authority as specified in the above noted Walnut Creek delegation. If the current CCCSD Franchise Agreement with VWM (Franchise Agreement) is extended for a period of time not to exceed one year, the effective date for the delegation of the franchise authority to CCCSWA by the County shall be extended by a like period of time: hereinafter. said term of the franchise and any extension not to exceed one Year shall be collectively referred to as the "franchise term" or "term of the franchise." 7 F:\DMS\TCS.DIR\0118669.06 2.3 As between the County and CCCSD, the County shall be responsible to the extent allowed by law and except as delegated to CCCSWA for all solid waste management of the unincorporated areas of the CCCSD-VWM Unincorpa�.d Franchise Area set forth in this agreement beginning Maf;eh 1,1996 or- sue ef date resulting f-r-ef" the eteti,ie of the GGGSD ;aAz?,! f,,.,ehise.at the end of the VWM franchise term. ARTICLE 3 Obligations of CCCSD 3.1 CCCSD shall delegate to the County and thereafter refrain from exercising its franchising authority in the CCCSD-VWM Unincorporated Franchise Area so long as the County exercises its franchising or equivalent authority (such as County's delegation to CCCSWA) within that area. This delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective Niffe t 1, 1996, of on the date of termination of the current franchise agreement with VWM, if extended, w ell exte. may net exeeed one . provided that the conditions 12ecedent in Article 8. section 8.1 have been satisfied. If said conditions precedent have not been so satisfied, this aareement and the delegation and/or agreement to refrain from further exercise of authority to franchise shall not be effective until said conditions_precedent have been met. 8 F:\DMS\TCS.DIR\0118669.06 3.2 CCCSD shall be responsible for administration of the current V3AzA4 €Franchise $Agreement for the remaining term of said agreement. fiet e-meeeding one year-. In addition, CCCSD shall continue to administer all AB 939 diversion and recycling activities currently being undertaken pursuant to the VIWN €Franchise aAAgreement and otherwise currently being undertaken by CCCSD, or on it behalf within the CCCSD-VWM Unincor rated Franchise Area for the remaining term of said Franchise Agreement.., ' 3 CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the VWNI Franchise Agreement, as are available and requested by County. '3.4 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-VWM Unincorporated Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-VWM Unincorporated Franchise Area shall be subject to the jurisdiction of the CCCSWA in accordance with the County's aforenoted delegation. 9 F:\DMS\TCS.DIR\0118669.06 4.2 County shall, in good faith, participate as g members of CCCSWA in the RFP process, including the execution (along with the City of Walnut Creek) of the franchise agreements providing for solid waste services within the CCCSWA jurisdictions contemplated by the RFP; provided that CCCSWA Board of Directors determines that such solid waste franchise agreements are acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 4.3 During the period between the effective date of this agreement and the effective date of a new franchise agreement covering the CCCSD-VWMreincorporated Franchise Area entered into pursuant to the ongoing CCCSWA RFP pProcess, County shall be allowed full opportunity to participate on staff and Board level, on all decisions with regard to processing the RFP proposals and with regard to entering into appropriate franchise and disposal agreements. 4.4 CCCSD and County agree that except for the authority delegated herein to CCCSWA with respect to the provision of solid waste services, upon the termination of the 4 Franchise, Agreement , County shall (as and to the extent provided and allowed by law) be responsible for administration of all AB 939 activities including diversion and recycling within the CCCSD-VWM Unincorporated Franchise Area. 10 F:\DMS\TCS.DIR\0118669.06 ARTICLE 5 Franchise Fees 51 CCCSD has received all franchise fee payments pursuant to the 3A494 Franchise Agreement and shall receive any additional payments during the term of said franchise. . County shall receive no portion.of said franchise fees, however, County shall not be required to pay any membership fee for joining CCCSWA. The CCCSWA expenses are prorated to Member Agencies is { €named annually on a tonnage basis. The CCCSWA fees with respect to the CCCSD- VWM Unincorporated Franchise Area have been paid to date, and will be paid by, or on behalf of, CCCSD during the remaining term of the fFranchise eA_„_greement and any extension thereof not to exceed one year. Thereafter, CCCSD will have no responsibility for County's share of membership fees or costs due CCCSWA for the Getinty unincorporated areas within the CCCSWA jurisdictional boundaries. 5.2 If the VWM franchise is extended beyond March 1. 1996, the County may impose, in its discretion, such additional franchise fees as may be allowed by law. CCCSD agrees to set rates to provide for such fees and direct VWM to collect such County franchise fees during the remaining term of said Franchise Agreement. 11 F:\DMS\TCS.DIR\0118669.06 ARTICLE 6 Liability Issues 6.1 CCCSD and County are parties in a lawsuit known as Acme Fill Comoration v. Althin CD Medical. Inc.. US District Court, Northern District oi" California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste collected and hauled from the wasteshed within the CCCSD-VWM Unincorporated Franchise Area,.the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base in the existing CCCSD-VWM ninc:orporated Franchise Area, notwithstanding the assignment/transfer of the franchise authority to the County. The proportionate share of responsibility for the customers in the existing franchise area shall be based on the waste derived historically from the wasteshed area. By entering into this Agreement, the County is not assuming any responsibility or liability for the defense of the Acme lawsuit for this wasteshed area. 12 F:\DMS\TCS.DIR\0118669.06 2 The County as the future franchising authority, either directly or through the CCCSWA, agrees that the proportionate share of any liability or settlement costs (including a provortionate share of net legal costs and expenses. incurred after the termination of the Franchise Agreement) to shall be borne by the customer/constituent base of the CCCSD- VWM Unincorporated Franchise Area, and amounts sufficient to pay for the net proportionate liability, costs and expenses. if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided-and collected to the fullest extent allowed by law as a pass-through in the collector franchise rates for the Area, whether the liability and/or settlement costs for this wasteshed be directly imposed on CCCSD and/or the County in the Acme Lawsuit. If deemed appropriate, the County may (at its discretion) collect such proceeds as charges or fees imposed at any County franchised landfill and/or transfer station facility receiving solid waste from the VWM- CCCSD Unincorporated Franchise Area. wasteshed. 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 13 F:\DMS\TCS.DIR\0118669.06 A Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current VIA (Franchise agreement or- an), tffisieft r arising from other solid waste administration activities within the CCCSD-VWM Unincorporated Franchise Area as a result of occurrences during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of termination of the VWM Franchise Agreement. As between County and CCCSD, County shall be responsible for any liability arising as a result of occurrences after said date of termination of the VWM Franchise and during County franchise administration. In no event is County, by entering into this Agreement assuming any legal liability for any period prior to the said Franchise Agreement termination for the selid wasteshed area, except as specifically set forth above. ARTICLE 7 Indemni 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 arising at any time from occurrences prior to the effective date of the termination of the current 3,�'M 14 F:\DMS\TCS.DIR\0118669.06 fFranchise eA_greement. . The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 County shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above arising from occurrences after the effective date of the termination of the current Franchise Agreement. . or- any extffision thefeef fief te exeeed one yea ARTICLE S Conditions Precedent 8.1 - The following shall be conditions precedent to the terms of this Agreement becoming legally effective (in addition to the proper execution of this Agreement by both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall in the same manner as the City of Walnut Creek take such legal action as may be required to delegate the . 15 f:\DMS\TCS.DIR\0118669.06 County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of-the CCCSWA (as such areas are further described in the CCCSWA 1994-1995 RFP documents and the map attached hereto as Exhibit A)_ to the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994-1995 RFP process. ARTICLE 9 Miscellaneous Provisions 9.1 Entire Agreement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 9.2 Section headines r The article headings and section headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 9.3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 9 44 Amendment This agreement may not be modified or amended in an,Y respect except by a writing signed by the parties hereto. 16 F:\DMS\TCS.DIR\0118669.06 Severability If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 9_6 Attorney's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of the this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 9_7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. 9.8 Future Franchising Authority Except for the up-to-one-year extension period allowed by this agreement for CCCSD administration of the current VWM franchise, it has been and remains the County's position that on and after the expiration of the GGGSD P! Franchise Agreement (February 29. 1996), CCCSD has no franchise authority for the unincorporated areas covered by this agreement to the extent the County thereafter franchises and/or regulates (e.g., delegates, etc.) for said areas. Nothing herein shall be construed as a waiver or modification of past County actions or its position in this regard, except for the said up- 17 F:\DMS\TCS.DIR\0118669.06 to-one-year extension period. It is understood and recognized that CCCSD does not agree with this County position. The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. Dated: 1995 CENTRAL CONTRA COSTA SANITARY DISTRICT BY: Roger Dolan, General Manager Dated: , 1995 COUNTY OF CONTRA COSTA BY: APPROVED AS TO FORM: Kenton L. Alm, General Counsel Central Contra Costa Sanitary District General Counsel County of Contra Costa 18 F:\DMS\TCS.D1R\011a669.06 c-1 REDLINE B TRANSITIONAL AGREEMENT BETWEEN - COUNTY OF CONTRA COSTA AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THE COLLECTION OF SOLID WASTE WITHIN CERTAIN UNINCORPORATED AREAS OF THE NORTH CONCORD/PACHECO/CLYDE SOLID WASTE FRANCHISE AREA The following is an agreement between Central Contra Costa Sanitary District (hereinafter "CCCSD") and the County of Contra Costa (hereinafter "County") providing for the transfer of the authority to manage collection, transport and disposal of solid waste, and franchising thereof within certain unincorporated areas within North Concord, Pacheco and Clyde. The terms and conditions of such agreement are set forth below. RECITALS A. WHEREAS, CCCSD, pursuant to its Enabling Act, has authority to provide for collection, transportation and disposal of solid waste within its jurisdictional boundaries, as set forth in California Health and Safety Code §§6406 and 6512 and as otherwise provided for in Public Resources Code §§40000, et seq; and B. WHEREAS, CCCSD entered into a franchise agreement with Boyd Olney, Jr. dba Pleasant Hill Bayshore Disposal, a sole proprietorship (hereinafter "PHBS") dated April 1, 1986 granting PHBS the exclusive franchise to collect garbage within the CCCSD-PHBS Franchise Area, defined below, for a term of ten years expiring March 31, 1996 (hereinafter "PHBS Franchise") attached hereto as Exhibit A; and C. WHEREAS, Pleasant Hill Bayshore Disposal, Inc. (hereinafter PHBS, Inc.) a wholly owned subsidiary of Browning-Ferris Industries of California, Inc. is now operating as the successor in interest to PHBS; and D. WHEREAS, the City of Walnut Creek, pursuant to Public Resources Code §49,300 and also as generally provided for in Public Resources §§40000 et seq., may collect or contract for the collection of solid waste within its city limits; and E. WHEREAS, Central Contra Costa Solid Waste Authority (hereinafter "CCCSWA") is a joint powers authority and is formed pursuant to Government Code §§6500, et seq. (currently comprised by member agencies of CCCSD and the City of Walnut Creek); and F. WHEREAS, a joint powers authority may exercise jointly powers commonly held by its respective members, and therefore CCCSWA, through the First Amended Joint Powers Agreement, shall have the authority to contract for the collection, transportation and disposal of solid waste for the residents within its jurisdictional boundaries; ,and G. WHEREAS, the County desires to have t re clear exclusive authority to franchise or contract for the collection of solid waste within the CCCSD-PHBS Franchise Area; and H. WHEREAS, the County, pursuant to California Government Code §25827, the California Constitution and Public Resources Code §§40,000 et s(�q. has the authority to collect or contract for the collection, or both, of solid waste within the unincorporated areas of the County; and 2 F:\DMS\TCS.DIR\0118828.06 I. WHEREAS, the County has requested by actions of the Board of Supervisors on January 24 1995 and thereafter to become a member of CCCSWA; and J. WHEREAS, CCCSD and the County agree that franchising of solid waste collection on a regional basis within the CCCSWA jurisdictional boundaries may serve to consolidate local and regional coordination and planning of such collection and disposal activities, and thus benefiting the public jointly served by the County and CCCSD; and K. WHEREAS, CCCSD seeks to have CCCSWA undertake the franchising activities jointly for all constituents of the unincorporated areas as well as constituents of the other members of CCCSWA concerning collection, transfer and disposal of solid waste and certain other AB 939 obligations; and L. WHEREAS, CCCSD is willing to delegate its solid waste collection franchise authority to the County, provided that the County becomes a full and equal member of CCCSWA, and provided further that the County delegates (in the same manner as the City of Walnut creek for its City area) to CCCSWA its authority to franchise solid waste collection, transport and disposal within the unincorporated areas within the jurisdictional boundaries of tite Authefity CCCSWA set forth in the CCCSWA November, 1994-139.5 Franchising RFP, exclusive of the unincorporated areas within the CCCSD-PHBS Franchise Area; and M. WHEREAS, County previously indicated its intent to directly assume franchise administration in unincorporated areas within CCCSD on and after the expiration of the CCCSD- PH13S Franchise Agreement; and N. WHEREAS, CCCSD disputes County authority to assume franchise administration in the unincorporated areas within CCCSD. 3 F:\DMS\TCS.DIR\0118828.06 NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, CCCSD and the County mutually agree as follows: ARTICLE 1 Definitions 1.1 AB 939 "AB 939" means the California Waste Management Act of 1989 (found at §40000 et seq. of the California Public Resources Code), as it may be amended from time to time. 1.2 CCCSD-PHBS Franchise Area "CCCSD-PHBS Franchise Area" means and includes the unincorporated areas of the County which are currently in the jurisdictional boundaries of CCCSD and which are subject to the PHBS Franchise Agreement. The franchise area is further described by the 600 scale maps as referenced in the franchise agreement. 1.3 Effective Date "Effective Date" means the first date upon which this Agreement is legally effective following all signatures and approvals required by the: parties or by law and the compliance of the parties with the conditions precedent set forth herein. 1.4 CCCSWA Joint Exercise of Powers Agreement "CCCSWA Joint Exercise of Powers Agreement" is the agreement entered into originally by CCCSD, City of Walnut Creek and City of San Ramon, the effective date of which agreement is August 30, 1990, said agreement including any amendments thereto. Current membership includes CCCSD and City of Walnut Creek. 4 F.\DMS\TCS.DIR\0118828.06 1 5 PHBS Franchise Agreement "PHBS Franchise Agreement." for purposes herein means the "Agreement for Collection, Removal and Disposal of Garbage Zone 3." dated April 1 1986 between PHBS and CCCSD. 1.6 RFP: RFP Process "RFP" and "RFP Process" means the process by which CCCSWA solicited proposals for solid waste handling and related AB 939 activities pursuant to a document dated November, 1994, entitled Central Contra Costa Solid Waste Authority Rgguest for Proposals for Integrated Solid Waste Management Services and the receipt and evaluation process by CCCSWA of responses to the request for proposals. 1.57 Solid Waste "Solid Waste" means solid waste as defined in the California Public Resources Code §40191 anTiegulations promulgated thereunder, as amended from time to time,including green waste and recyclables. (The term "garbage" is the defined term used within the PHBS Franchise Agreement, which term is defined therein at section 1!e) and is ray synonymous with the ewe term "solid waste" within this Agreement.) 5 F:\DMS\TCS.DIR\0118828.06 ARTICLE 2 Obligations of County 2.1 County agrees to apply for membership in, and become a full and equal signatory member of CCCSWA under the same terms and conditions as applicable to existing members. The County shall become a member of CCCSW'A prior to or simultaneously with the Effective Date of this Agreement. 22 Except as provided herein below, as between the County and CCCSD, the County shall be responsible to the full extent allowed by law for all solid waste management of the unincorporated areas of the CCCSD-PHBS Franchise Area as of the effective date of this agreement. Count shall accept the assignment of the PHItS Franchise Agreement from CCCSD by the date sMified in section 3.1. 2.3 Upon the expiration of the current unextended term of the TIBBS€Franchise tiAgreement, as between the County and CCCSD, the County shall be responsible to the full extent allowed by law for administration of all AB 939 activities including diversion and recycling within the existing CCCSD-PHBS Franchise Area. As of the effective date of this agreement, the Coun!,y shall assume any and all responsibilities for AB 939 activities, except for those specifically reserved in section 3.2 to CCCSD for the remainder of the PHBS Franchise Agreement term. 6 F:\DMS\TCS.DIR\0118828.06 ARTICLE 3 obligations of CCCSD 3.1 CCCSD shall file a resolution assigning the PHBS Franchise Agreement for the remainder of its term and thereafter refraining from exercising its franchising authority within the CCCSD-PHBS Franchise Area so long as the County exercises its franchising authority within that area. This assignment and delegation and/or agreement to refrain from further exercise of authority to franchise shall be effective on October 1 1995: provided that the conditions precedent in Article 8. section 8.1 have been satisfied. If said conditions precedent have not been so satisfied, this agreement and the delegation and/or agreement to refrain from further exercise of authority to franchise shall not be effective until said conditions precedent have been met. 3.2 CCCSD, shall continue to administer aH those AB 939 diversion and recycling activities currently being undertaken pursuant to the PHBS 4Franchise eA_greement and otherwise currently being undertaken by CCCSD, or on its behalf within the CCCSD-PHBS Franchise Area until March 31, 1996. CCCSD, notwithstanding the assignment of the franchise agreement to County, shall continue to provide this service for the balance of the franchise term, based a for programs which have already been initiated,wed and budgeted lef such as the home composting workshops and current recycling promotion. 7 F:\DMS\TCS.DIR\0118828.06 CCCSD shall, upon execution of this agreement, or as soon thereafter as practicable, provide County with copies of all material documents concerning administration of the PHBS Franchise Agreement as are available and requested by County. 14 CCCSD shall cooperate with County to provide County with guidance as to the current rate setting structure and other historical information relevant to franchising within the CCCSD-PHBS Franchise Area. ARTICLE 4 Participation in CCCSWA 4.1 The CCCSD-PHBS Franchise Area shall not be subject to the jurisdiction of the CCCSWA and it is not intended that this area be included within the CCCSWA jurisdictional boundaries, nor is it included in the 1994-1995 CCCSWA collection, transport and disposal franchise RFP process. 4.2 County afid GGGS , shall, in good faith, participate as a members of CCCSWA in the RFP process, including the execution (along with the City of Walnut Creek) of the franchise agreements providing for solid waste services within the CCCSWA jurisdiction contemplated by the RFP; provided that the CCCSWA Board of Directors determines that such solid waste franchise agreements are acceptable and the CCCSWA Board takes the actions appropriate for entering into such agreements. 8 F:\DMS\TCS.DIR\0118828.06 ARTICLE 5 Franchise Fees CCCSD has received all franchise fee payments pursuant to the PHBS Franchise Agreement for the remainder of the current term expiring in March 31,; 1996,which franchise'agreement shall not be extended. Such fees have already been allocated by CCCSD to programs for carrying out AB 939 activities within the CCCSD-PHBS Franchise Area through the remaining term of the PHBS Franchise Agreement. County shall receive no payment of said previously collected franchise fees, however, nor shall County be required to pay any membership fee for participation in CCCSWA for the remainder of the term of the PHBS Franchise Agreement. Nothing in this agreement is intended to limit County from imposing additional franchise fees or taking any other action in administration of the PHBS Franchise Agreement during its remaining term following the Effective Date of assignment of said franchise to the County. ARTICLE 6 LiabilityTssues . 6.1 CCCSD and County are parties in a lawsuit known as Acme Fill Corporation v. Althin CD Medical, Inc.. US District Court, Northern District of California, Case No. C91- 4268 SBA (hereinafter "Acme Lawsuit"), in which case plaintiff alleges that the County and CCCSD are both responsible for payment of closure and post closure costs of the Acme Landfill, pursuant to federal CERCLA law. To the extent that liability is imposed 9 F:\DMS\TCS.DIR\0118828.06 or settlement is reached for apportionment of closure and post closure costs of the Acme Landfill with respect to the Municipal Solid Waste colleted and hauled from the wasteshed within the CCCSD-PHBS Franchise Area, the proportionate share of any such responsibility for clean-up costs shall be the responsibility of the constituent base of the existing CCCSD=PHBS Franchise Area, notwithstanding the assignment/transfer of the franchise authority to the County. The proportionate share of responsibility for the constituents/customers in the CCCSD-PHBS Franchise Area shall be based on the waste derived historically from the wasteshed area. By entering; this Agreement, the County is not assuming any responsibility or liability for the defense of the Acme lawsuit for this wasteshed area. 62 . The County as the future rate setting entity, agrees that the proportionate share of any liability or settlement costs (including a proportionate share of net legal cosjs and' expenses, incurred after the termination of the Franchise Agreement) +e shall be borne by the customer/constituent base of the CCCSD-PHBS Franchise Area, and amounts sufficient to pay for the net proportionate liability, costs and expenses if any, after deducting all insurance and contribution proceeds allocable to this wasteshed, shall be provided and collected to the fullest extent allowed by law as a pass-through in the collector franchise rates for the area, whether the liability and/or settlement costs for this wasteshed be directly imposed on CCCSD and/or the County in the Acme Lawsuit. If deemed appropriate, the County may (at its discretion) collect such proceeds as charges 10 F:\DNS\TCS.DIR\0118828.06 or fees imposed at any County franchised landfill and/or transfer station facility receiving solid waste from the PHBS F€ranchise aArea d. 6.3 Nothing contained herein with respect to the Acme Lawsuit shall be read to be an admission of liability, endorsement of allocation methodology, or such other admission or concession concerning said litigation. The County and CCCSD each, respectively deny all liability with respect to the Acme Lawsuit and deny any and all responsibility for any closure, post closure or response costs related to the Acme Landfill. 6.4 Except as set forth above with respect to the Acme Lawsuit, any and all liability arising from the administration of the current PHBS €Franchise aA_greement or arising from other solid waste administration activities within the CCCSD-PHBS Franchise Area as a result of occurrences during such term, shall be the responsibility of CCCSD with respect to occurrences prior to the effective date of assignment of the PHBS -€Franchise aA,._greement. as set forth in section 3.1. As between County and CCCSD, County shall be responsible for any liability arising as a result of occurrences after said date of assignment of the PHBS Franchise Agreement and during County franchise administration. In no event is County, by entering this Agreement, assuming any legal liability for the said wasteshed area for any period prior to the said effective date of assignment of the PHBS Pfranchise Agreement except as specifically set forth above. 11 F:\DMS\TCS.DIR\D118828.D6 ARTICLE 7 Indemnit 7.1 CCCSD shall indemnify, defend and hold harmless County, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 arising at any time from occurrences prior to the effective date of the assignment the current PHBS franchise agreement. The liabilities, damages and expenses, as set forth herein, arising from the Acme Lawsuit shall be excepted from this indemnity and handled as set forth in paragraphs 6.1 through 6.3, inclusive. 7.2 County shall indemnify, defend and hold harmless CCCSD, its Board members, officers, employees, volunteers and agents from and against all claims, demands, causes of action, liabilities, damages and expenses (including, for injury to or death of any person and damage to property, or contribution or indemnity claimed by third parties) and including attorney's fees, expert and consulting fees and costs and any .penalties, forfeitures, or fines as a result of any liability arising from events as specified in 6.4 above arising from occurrences after the effective date of the assignment of the current PHBS Franchise Agreement. 12 F:\DMS\7CS.DJR\0118828.06 ARTICLE 8 Conditions Precedent $1 The following shall be conditions precedent to the terms of this Agreement becoming legally effective (in addition to the proper execution of this.,Agreement by both parties): (1) County shall, by appropriate action of the Board of Supervisors, join CCCSWA as a member and take such other actions as may be required to have its two representatives seated as full members of the CCCSWA Board; and (2) County shall in the same manner as the City of Walnut Creek take such legal action as .may be required to delegate the County's solid waste collection, transport and disposal franchise authority for the unincorporated areas within the jurisdictional boundaries of the CCCSWA (as such areas are further described in the CCCSWA 1994-1995 RFP documents and the map attached hereto as Exhibit B) to the CCCSWA to enable the CCCSWA to enter into regional franchises pursuant to the CCCSWA 1994-1995 RFP process. ARTICLE 9 Consent to Assir nment 9.1 This agreement is subject to CCCSD obtaining consent by PHBS, Inc. to the assignment of the franchise agreement from CCCSD to the County, said written consent to be acceptable to and approved by CCCSD and the County. Said consent shall include a provision from PHBS, Inc. that PHBS, Inc. will not bring suit or seek any other relief from CCCSD concerning any issues relating to the exclusivity of the franchise agreement 13 f:\DMS\TCS.DIR\0118828.06 and/or the jurisdictional boundaries of the franchise for all periods prior to the effective date of assignment of the PHES franchise agreement. If this consent is not obtained and approved by CCCSD and the County by the expiration (March 31, 1996) of the CCCSD- PHBS Franchise Agreement, nothing herein shall be construed to prevent the County's exercising of whatever franchising authority it has in the Franchise Area.. ARTICLE 10 Miscellaneous Provisions 10.1 Entire Aereement This agreement represents a full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral. 10.2 Paragraph headings The article headings and paragraph headings in this agreement are for convenience of reference only and are not intended to be used in the construction of this agreement nor to alter or affect any of its provisions. 10.3 Interpretation This agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting. 10.4 Amendment This agreement may not be modified or amended in any respect except by a writing signed by the parties hereto. 14 F:\DMS\TCS.DIR\0118828.06 Severability If any non-material provision of this agreement is for any reason deemed to be invalid, and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 15 F;\DMS\TCS.DIR\0118828.06 10-6 Attorney's Fees The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of the this agreement, or any claims whether in contract, tort or otherwise arising directly or indirectly out of this agreement or its performance, shall be entitled to recover its reasonable costs and attorney's fees from the other party, and the court or arbitrator shall award any such attorney's fees as an element of cost. 10.7 Surviving Provision Not withstanding any provision herein to the contrary, Articles 6 and 7 shall survive any termination of this agreement, unless otherwise modified by the parties hereto in writing. 10.9 Future Franchising Authority Except for the up-to-one-year extension period allowed by a separate County-CCCSD Transitional Agreement for CCCSD administration of the current Waste Management Collection and Recycling, Inc. (Valley Waste Management) franchise, it has been and remains the County's position that on and after the expiration of the CCCSD-PHBS Franchise Agreement, CCCSD has no franchise authority for the unincorporated areas covered by this agreement to the extent the County thereafter franchises and/or regulates (e.g., delegates, etc.) for said areas. Nothing herein shall be construed as a waiver or modification of past County actions or its position in this ;regard, except for the said up- 16 F:\DMS\TCS.DIR\0118828.06 to-one-year extension period. It is understood and recognized that CCCSD does not agree with this County position. The parties each respectively agree to the terms of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by the respective duly authorized officers and representatives as of the date last written below. n Dated: 1995 CENTRAL CONTRA COSTA SANITARY DISTRICT BY: Roger Dolan, General Manager Dated: 1995 COUNTY OF CONTRA COSTA BY: APPROVED AS TO FORM: Kenton L. Alm, General Counsel Central Contra Costa Sanitary District General Counsel County of Contra Costa 17 F:\DMS\TCS.DIR\0118828.06