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HomeMy WebLinkAboutMINUTES - 02281995 - 2.4 TO: BOARD OF SUPERVISORS FROM: VAL ALEXEEFF, DIRECTOR GROWTH MANAGEMENT&ECONOMIC DEVELOPMENT AGENCY DATE: FEBRUARY 28, 1995 SUBJECT: SOLID WASTE COLLECTION FRANCHISE ISSUES IN THE UNINCORPORATED AREAS OF THE COUNTY SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: Report from Director, GMEDA, in response to Board direction on 2/14/95 on the following: A. Consider Bay Point service areas and delineate service area boundaries between BFI and Garavanta. (Oral presentation with display.) B. Adopt Franchise. Agreements for BFI for the areas of Clyde, Pacheco, designated portions of Bay Point, South East Concord, Alhambra Valley, Franklin Canyon, Morgan Territory and related areas. C. Adopt Franchise Agreements for Garavanta for the areas of Discovery Bay, designated portions of Bay Point, North East Antioch, North Concord and related areas. D. Direct staff to proceed with further steps in developing and considering approval for an RFP for soliciting garbage service for Rodeo and Mt. View Garbage service areas. FINANCIAL IMPACT: There is a potential for both an increase and a decrease in the County General Fund and/or solid waste program funds. Unincorporated areas franchised by sanitary districts currently have franchise fees; specifically, a 3% franchise fee is paid to the Central Contra Costa Sanitary District for Pacheco and Clyde; a franchise fee is paid to Ironhouse and to Mt. View Sanitary District. If these fees are maintained, an increase to either the County General Fund or to solid waste program funds would be experienced. Reductions may occur to revenue from the Keller Canyon Landfill resulting from alternative transfer and disposal proposals. Some financial impact information is provided, additional information may be needed depending upon course of action taken. CONTINUED ON ATTACI-INTENT: `Yes SIGNATURE: V L _RECOMMENDATION OF COUNTY ADMINISTRATOR _RECOMMENDATION OF BOARD COMMIT`ME APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ONF e b. 2 8a 19 9 5 APPROVED AS RECOMMENDEDx OTHER x See Addendum for Board action and votes VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND UNANIMOUS(ABSENT ) ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. AYES: NOES: ATTESTED -February 28 , 1995 ABSENT: ABSTAIN: PHIL BA R,CLERK OF THE BOARD OF SUP SOR CO MINISTRATOR BY —,DEPUTY VA nI swfeb28.bo' Contac Val Aloweff(646-1620) CC: County Administrator County Counsel GMEDA Departments Garavanta Enterprises BET BACKGROUND/REASONS FOR RECOMMENDATIONS: On February 14, 1995, the Board requested GMEDA to prepare a map for Bay Point indicating service areas to return with franchise agreements covering areas in East and Central County, to prepare a draft RFP for the Rodeo and Mt. View areas and return this information by February 28, 1995. A. Service area boundaries for Bay Point will be presented in a display at the February 28th Board meeting. BFI has also requested a display be made for the Antioch area which they may address. B. A model Franchise Agreement with BFI that will cover the areas of Clyde, Pacheco, designated portions of Bay Point, South East Concord, Morgan Territory and related areas has been prepared and is attached. (Attachment A) The timing of County franchise take-over may vary depending upon current contractual conditions and MOU negotiations. Summary of the agreement points and exhibits will be presented orally at the meeting. C. A model Franchise Agreements with Garavanta that will cover the areas of Discovery Bay, designated portions of Bay Point, North East Antioch, North Concord and related areas has been prepared and is attached. (Attachment A) The timing of County franchise take-over may vary depending upon current contractual conditions and MOU negotiations. Summary of the agreement points and exhibits will be presented orally at the meeting. D. A draft RFD document is attached. It is modeled after the document prepared for the Central County Solid Waste Authority. The current status of franchise agreements is as follows: According to Dave Guitterez, Mountain View Sanitary. District the existing collection franchise agreement with Pleasant Hill Bayshore Disposal was executed in 1986 for collection through 2011 with a 10-year option. Prior to that, an agreement was executed in 1985 for collection through 2001. According to Paula Foley, Rodeo Sanitary District the existing collection franchise with Pleasant Hill Bayshore Disposal will expire on October 30, 2001. The Board does have the authority to change haulers when they take over the franchise, but we do not have all of the details at this time. ADDENDUM TO ITEM 2 . 4 FEBRUARY 28 , 1995 On this date, the Board of Supervisors had before it for consideration a report from the Director, Growth Management and Economic Development Agency, in response to Board direction on February 14 , 1995, on the following: a) Consider Bay Point Service areas and delineate service are boundaries between BFI and Garavanta (Oral presentation with display) ; b) Adopt Franchise Agreements for BFI for the areas of Clyde, Pacheco, designated portions of Bay Point, South East Concord, Alhambra Valley, Franklin Canyon, Morgan Territory and related areas; c) Adopt Franchise Agreements for Garaventa for the areas of Discovery Bay, designated portions of Bay Point, North East Antioch, North Concord and related areas; and d) Direct staff to proceed with further steps in developing and considering approval for a RFP for soliciting garbage service for Rodeo and Mt . View Garbage service areas . Val Alexeeff, Director of the Growth Management and Economic Developement Agency, presented his report on the above issues . The following persons presented testimony: David Levy, 2121 N. California #1010, Walnut Creek, representing Mt . View Sanitary and Rodeo Sanitary Districts; Ken Etherington, 441 N. Buchanan, Pacheco, representing BFI ; Mark Armstrong, P.O. Box 218, Danville, representing Garaventa Enterprises; Richard Luchini, 912 Hawthorne Drive, Rodeo; Frank Aiello, 1734 Bridgeview, Pittsburg, representing Citizens United; Dorothy Sakazaki, 737 Central Avenue, Martinez, representing Mt . View Sanitary District; Sil. Garaventa Jr. , Concord, representing Garaventa Enterprises . After further discussion, the Board took the following action: REFERRED to the Solid Waste Ad Hoc Committee for report in 30 days, the issue of the Rodeo and Mt . View Service areas to consider alternatives to the RFP, and solicit input from the Districts in preparing an RFP, and to address the concerns raised by the Board including issues of indemnification and direction of waste stream; AYES : Supervisors Rogers, DeSaulnier and Bishop NOES : Supervisors Torlakson and Smith ABSENT: None ABSTAIN: None ADOPTED the franchise agreement for BFI as amended (See attached transcript) ; AYES : Supervisors Rogers, DeSaulnier and Torlakson NOES : Supervisors Smith and Bishop ABSENT: None ABSTAIN: None ADOPTED the franchise agreement for Garaventa as amended (See attached transcript) . AYES : Supervisors Rogers, DeSaulnier, Torlakson and Smith NOES : Supervisor Bishop ABSENT: None ABSTAIN: None Transcript of item 2.4 from February 28, 1995 Supervisor Bishop: Next item is 2.4, we have one that I think we can dispatch fairly quickly before we get to solid waste and that is no we did do that so we are ready to go to solid waste. We are on 2.4 where we have before us the Director of the GMEDA to consider some amended franchise agreements and adopting new franchise agreements for various areas. Mr. Alexxeeff. First of all could I ask you Mr. Alexeeff, has the Solid Waste Committee met since we last met and gave direction to further refine what was going on in this area. Val Alexeeff: Not to my knowledge. No. We haven't the Ad Hoc Solid Waste Committee has not met. Supervisor Bishop: Could you tell me who participated in the franchise agreements that we have before us today? Val Alexeeff: I'm sorry. Let me move. I can't see you. Supervisor Bishop: Could you indicate who the participants were and the staff and Board members and parties that participated in the right... Val Alexeeff: The franchise agreement that you have before you has been around in its original version for several years. It was the neuclus of that franchise agreement was the one that we adopted with BFI and Garaventa back in the beginning of the 90's. What's happened since then is we've had a lot of comments from both Garaventa and BFI regarding specific aspects of the franchise agreement and we've tried to make changes to accommodate those issues and other issues that have come up. We have met with no Board members that I'm aware of on this item. Lillian Fujii and I met on this. She has also met with Louise Aiello on this item and I believe Lillian and Vic and I had a conversation on it and that's the and then since then there have been meetings with I know that Garaventa's attorney came in to ask some questions about the franchise agreement and he submitted a letter based upon his conversation with Lillian and I know of no other contact. Supervisor Bishop: I think one of the questions I had last time was to get a break down of areas that are being serviced and the subscribers or rate payers within that area, the households. Have you got those numbers? Val Alexeeff: Um actually that discussion came down to Baypoint and I have it for Baypoint. Originally the issue started out for all franchise areas and when the discussion finally came to the motion of the Board, there was only one area that was left in question at that time. If I can direct you up to the maps there, I can show you about the area. The Baypoint area is the area here on this particular map. The dark area shaded on the bottom is the City of Pittsburg which encompasses the Baypoint area on several sides. The area in question as of the last Board meeting were the area here which is known as the neutral zone and the area here which is known as California Skyline. I contacted both parties and asked them to submit their client lists and map information for me and based upon that information, I went lot by lot and colored in their respective service customers and right now, for the Calfornia Skyline area there are 285 unit unserved.because they are currently unoccupied, 17 units are served by BFI, 117 units are served by Garaventa. On the neutral area... Supervisor Bishop: Excuse me, could you hold for a minute. BFI serves 17 units and Garaventa services 117. Val Alexeeff: Yes. Supervisor Bishop: And this.is in the neutral area? Val Alexeeff: This is in what is known as the California Skyline. It's the K& B subdivision and the percentages for that is 12 and a half percent versus 87 and a half percent. Supervisor Bishop: But the unoccupied area is the neutral area? Val Alexeeff: No. The unoccupied area are simply lots that have not had purchasers yet. Supervisor Bishop: Within Skyline? Val Alexeeff: Within Skyline. And so the unserved, there's still 285 units that do not have garbage service because they don't have residents. Supervisor Bishop: So, if we made a determination and the recommendation in here is that this skyline area be included with Garaventa. Val Alexeeff- Yes. Supervisor Bishop: Okay so essentially, okay. Val Alexeeff- So essentially what would happen as I understand the direction of the Board, the 17 units that are serviced by BFI would be given over to Garaventa and based upon the condition that the Board passed, those customers would not pay rates higher than they paid for BFI,to BFI. Supervisor Bishop: Okay, now this is being done by permit. Or this is by franchise? Val Alexeeff: Well, it was by franchise with some specific Board direction. Supervisor Bishop: But the current situation now, the agreement is by through Contra Costa, Central Sanitary District for... Supervisor Torlakson: Market competition basically. It's who... Val Alexeeff: What happened is that they left these two areas for each of....I'm sorry excuse me what happened in this particular area was the franchises were given to Garaventa for this area, to BFI for this area and these two areas were unfranchised. They were left open for whatever reason back four or five years ago. And so what's happened is both companies have approached individual customers in their respective areas and this is the patchwork that has resulted. The question that was put to the Board and in turn put to me is to come back with information about who was servicing what so the Board can determine if and whether they want to assign the franchises to an individual company. Supervisor Bishop: Now the Redevelopment area, we said that BFI would end up franchising is that area and the Redevelopment area there is no debate and there is nothing there now, so we're giving them something that's not there. I mean we would be entering into a franchise agreement for future development. Val Alexeeff: Future development. Right. Supervisor Bishop: Okay, and then the neutral area refresh my recollection is... Val Alexeeff: The neutral area is this area right here and the neutral area has 86 units unserved since this area has developed, the question about the unserved is either they're vacant houses or they're people who do not have garbage service that should by ordinance and frankly, we couldn't tell you what at this point. Supervisor Bishop: And the recommendation in the Board order is that BFI service this area? Val Alexeeff: No, the recommendation was that I come back with a map and we have BFI doing 186 and we have Garaventa doing 424 and the relationship between BFI and Garaventa is 30 percent BFI and 70 percent Garaventa in this particular area. Supervisor Bishop: But that's counting on future development. Val Alexeeff: No, that's current customers. Supervisor Bishop: there are 424 okay... Val Alexeeff: No, I'm sorry,this area's developed okay? This area, the neutral area's developed okay. Supervisor Bishop: And the neutral area is like Skyline is that they're all competing. Val Alexeeff: That's right. They competed. It was neutral. Therefore, it wasn't franchised to either one of them and you know, from the time, at the present time 424 customers are served by Garaventa and 186 customers are served by BFI. Supervisor Bishop: could you tell me in the Skyline area what is the rate, household rate for BFI and what's the household rate I know we had a chart but I don't have that chart with me. Val Alexeeff: Um I don't have that chart with me either. That's a good question. I can bring all that information down. Um..it would be the same. And I hate to estimate. If you want to turn to the franchise agreement which Lillian can talk about, I can get that information to you. I apologize for not having everything I've got here. Supervisor Smith: why don't you go through the rest of the ... Supervisor Bishop: Sure, it's great. Val Alexeeff: Okay, maybe I can go. I apologize. What happened is once we started working on this map for Baypoint, we realized that we really didn't have a good mapping system and if we're going to be the franchising agent at least from my background, the first thing that you have is a good map, so what we endeavored to do is to put everything that is in the staff report on a 600 scale and attempt to define the boundaries so that we could be clear about what the area we were talking about. Now, in the urbanized areas, the boundaries are fairly specific because the area's unincorporated and it's usually surrounded by incorporated area so Pacheco for instance is all of the unincorporated area between Pleasant Hill and Concord. Then in the rural areas it's a little bit more open ended because of the fact that there isn't a lot of development and we just basically follow roadways.and assume that that becomes the lineal corridor and the franchise area is anything that branches off the corridor. That was the decision that we made. We consider this work in progress because this is the first time we've put together maps on this and we're hoping that the maps help force some of the other issues that come from individual service areas to the forefront as quickly as possible so we can make whatever corrections and adjustments are necessary in the course of administering the franchise for these areas. Val Alexeeff. Okay, that's really what I have. I can go through the report and identify each of these areas if you'd like. Supervisor Bishop: I would appreciate that. Val Alexeeff: Okay. Supervisor Bishop: I don't know where the noise is coming from. I don't know if it's out in the hall. The acoustics are I don't know. Are the acoustics better in here today. We've gotten a new speaker system. And I'm looking out there. A lot of you have been here week after week. Is it better out there? Is it no better.' It's worse. Great. Thanks for all the help. Val Alexeeff: Well, the way that the staff report here is organized for you is that the first item of course is to consider Baypoint Service area and delineate boundaries between BFI and Garaventa which is what I've just done and I need to probably go up and get some more information for you there. The second item was to adopt franchise agreements for BFI for areas of Clyde, Pacheco, designated portions of Baypoint, southeast Concord, Alhambra Valley, Franklin Canyon, Morgan Territory and related areas. There's some smaller areas there that we're not sure if they should be included this time or not. Supervisor Bishop: Let me ask you something on that one. Clyde Correct me if I'm wrong but Clyde-Pacheco, Alhambra Valley, Franklin Canyon and Morgan Territory and Southeast Concord are already franchised by BFI, is that not correct? Val Alexeeff. Some are franchised, some are permitted and what we were doing I think the direction I got from the Board last time was to include all these areas into a master franchise agreement, so they would be abiding by the same. Supervisor Bishop: They are currently being serviced by BFI then? Val Alex.eef£ I'm sorry. Yes BFI is the hauler in those areas. There is some question that we picked up since Garaventa and BFI came up to inspect these maps. Garaventa will indicate to you at their opportunity to testify that the Concord-Clayton has some of their service in there as well. And I'm just telling you that so that it doesn't come as a surprise to you when they say it. But that occurred because we put the maps up. Supervisor Bishop: Okay, so basically the recommendation is or actually we've got a map and we are saying in those areas the motion as I understood it last week and the week before that, that those that Garaventa currently has a substantial portion and we are saying all that goes to garaventa. Val Alexeeff: Well, item B identifies what BFI has. Item C identifies what Garaventa has and then item D was another item that came up last time which was to bring back what would look like an RFP for Rodeo and Mt. View. Okay? Supervisor Bishop: Okay, you're going on C I take it. Val Alexeeff: Well, yes. Item C or again reorganizing the franchise agreements for Discovery Bay and then for the designated areas of Baypoint,North East Antioch,North Concord and related areas. Similarly, BFI asked to indicate on the northeast Concord area, the customers....I'm sorry thank you, northeast antioch service area, the customers they currently have and that's indicated on the map over there and I presume that they're going to speak to that. Supervisor Bishop: And then the ones that came up last week were rodeo and Mt. view and currently, Mt. View is separately serviced by a separate ... Val Alexeeff: Yes. What happens right now. BFI is the hauler for both areas and Mt. View is handled by the Mt. View Sanitary District and representatives are here and Rodeo is handled by the Rodeo Sanitary District and they have some comments to make about their role in the process I believe. Supervisor Bishop: Anyone else have any questions on this issue? Wonderful, then we will open the public hearing. I do have some speaker cards and the first one I received was Frank Aiello. He left. David Levy on 2.4 D which is the Rodeo and Mt. View Garbage area. David Levy: I am the attorney. My name's David Levy. I'm the attorney for both Mt. View Sanitary District and Rodeo Sanitary District and the issues are pretty much the same so, I'll apply them to both in the interest of time and thank you for this opportunity and I might say that it comes as a surprise to the district Boards and as you'll recall these are autonomous districts by elected Boards, elected by the residents of the district and the two things they do are the sewer treatment and the collection for sewers and the handling of solid waste which is the garbage collection. .... Supervisor Rogers: tracking down letters..... Ken Etherington: Our position on this to leaave the franchises with Mt. view and rodeo as they are both boards support the idea(BFI) Mark Armstrong: representing Garaventa Enterprises. Richard Lucini: President of rodeo sanitary district. Frank Aiello: Dorothy Sakazaki: Sil Garaventa: Supervisor Bishop: With that, we will close the public hearing and the matter is before the Board. One of the things that I would ask before we consider B and C, I think a was sort of an illucidation somewhat of delineating those areas in Baypoint. B and C I would like to take up separately but D I think I would like to recommend and I will make it a motion that we refer Rodeo and Mt. view Service areas to the Ad Hoc solid Waste Committee and that we come back to the full Board within 30 days before we direct that an RFP be put out. I think that that is at least extending a courtesy to those two districts. I think it will provide us an opportunity to provide the documentation the backup documentation that some people feel comfortable has been given to them and it will also provide us an opportunity to sit down with those people because I think that that is important. And I will share with you I also think when we talk about an RFP, I recognize that we have existing agreements and permits in some areas. I would like frankly to take the whole thing and put it out for an RFP but I think we have to work with the people in the respective areas and whoever that may be. As far as Alamo is concerned, I know Supervisor smith made some reference to alamo, had I spoken to the people of roundhill. As a matter of fact I :have spoken to the people of alamo and aia has looked at this issue and they were supportive of the RFP process. The one thing they were not supportive of was the I think the prevailing wage aspect of the RFP but they have had input. But I would make a motion and would hope that I get a second in consideration of the testimony that we've heard today from people who are on the Boards of those districts to at least extend for 30 days before we decide to act on the D section. Supervisor DeSaulnier: Second. Supervisor Bishop: All those in favor of that motion,.... Supervisor torlakson: I'd like to have some discussion on it and also find out what the Supervvisor from the district would like to say as well. But it's clear that there are communication issues just a comment that I observed that there are communication issues but we have attempted to communicate with the districts in the past and it may not have been adequate, it may not have been as personal or may have been discontinued by different staff members coming and going but you know some additional communication is always helpful but I think any kind of further look at this needs to address the kinds of issues that Supervisor Smith has raised related to the wastestream, the related to the issue of indemnification of our County General Fund or the rate payers in those districts if the fine should fall on their shoulders that they wouldn't be subject to paying those fines and a third issue that has been brought up today that I'd like our own County Counsel to address, that needs to be looked at somewhere in this process is how does the franchise, whether it's for Baypoint or these areas, reflect an indemnification against a adverse legal finding against Keller for land devaluation and if it doesn't, I think that's something that should be included. Frank Aiello brought that up. It was an understanding I had as we went through the Keller Canyon Landfill approval process that if because we had Puente Hills in LA County that had about a forty/fifty million dollar valuation judgement against it that such a risk BFI took in approving Keller next to the homes in Pittsburg that they would bear the brunt of that and not pass it on to rate payers and I just want to make it real clear,that these franchisers should reflect such protection against the rate payers from having cost passed on to them by the Sanitary Districts or the future Boards of Supervisors or whatever. And so that was an issue that I thought was one but I'd like to also listen to Jeff's comments on this as well. Supervisor Bishop: Right, I would like to hear them as well, but I would like to respond to one thing you said that Supervisor smith raised the issues of indemnification and direction of the wastestream. I believe that I raised those issues as well Supervisor Torlakson. Yes, Supervisor Smith. Supervisor smith: Well, I think this is really the wrong way to go. I certainly can see some option for the County to work with the Districts in the future but this is one unique opportunity in the history of all of garbage in contra costa county. We've given five year notice. We have the opportunity to come in with a completely new revised up-dated franchise agreement that addresses all of the issues. It doesn't have to be renegotiated. It doesn't have to be sat down and spent months to talk about. It's a master agreement that we have and we have the ability to enter into that with Pleasant Hill Bayshore or to do an RFP or an RFQ process or to have a situation where we delegate part of the responsibility for administering that franchise to the sanitary districts but I think it would be a real mistake for the Board who has the legal duty and authority over the franchising authority in the unincorporated areas and also will have the financial responsibility of assuring that that's done appropriately to delegate that without any information before you other than somebody saying that we'd prefer to do it. You don't have any indemnity. You don't have any control of the wastestream. You don't have any ability to assure that this is the lowest price available for the long period of time and I think it would really be a mistake to do that and again, I'll echo my comments. You know this has really been a very frustrating subject to deal with. I t makes absolutely no sense to me to say that in one area of the County where we have the ability to take over franchises from a sanitary district that an RFP process is critical and to go the JPA and celebrate the fact that that's the first time ever in this county there's been an RFP process for solid waste and to say that this is a landmark event and then for the rest of the County to somehow say no we don't need to do that. Well,that's just absurd and I won't be supporting this motion. I hope that it will fail and I'll make a substitute motion that indicates we should declare clearly our intent to take over the franchising authority and work with Mt. View and Rodeo to jointly administer under some separate MOU and make sure that there is adequate assurance that these are the lowest rates possible, so...I'll be opposed. Supervisor Bishop: the analogy I would like to make between what is going on here and what went on with the JPA. In the JPA Central San actually before ceeding that we did have the authority to franchise in certain areas actually participated in the preparation of the RFP. Supervisor smith: Arguably without the authority to do so because we have the exclusive authority to franchise after 1996. Supervisor Bishop: What I am suggesting is that we provide Mt. View and Rodeo at least with the opportunity of being able to look at the RFP, go over the RFP and see if there are things on there with respect to servicing aspects,that we talk to them about this just as we talked to Central San and did you have a comment? Supervisor Rogers: I just wanted to ask Supervisor Smith. As I understand your argument that it isn't a good idea to keep these two districts in this business any more but the question I have is why is it a problem for us to have staff come back and either have an RFP and a proposal from these districts or if they don't want to make a proposal,then they don't have to and we go forward with the RFP. I don't really see what we lose by being open to getting a proposal from them and an explanation of how they think they can come up with something that satisfies the concerns that we have. I'm not sure that they can do it. I'm very nervous about the loss of control and possible AB 939 problems myself but I don't see any harm in them being able to come back to us with that proposal. Supervisor Smith: Well, I would just suggest that we've got a year to get something done here. You know the franchises, we don't take control until 1996 and if we're going to actually do something responsible, it seems to me we need to start with that and we need to make it clear from the outset that the authority to franchise the exclusive authority to franchise solid waste and recycling in these areas is the County's authority. Now, I'm completely in agreement if we want to do that franchising and then somehow make a memorandum of understanding with the franchise with the sanitary districts to administer part of it or to deal with part of it but it needs to be clear it's our authority, it's our franchise with the hauler and we also need to be clear through some process, maybe not a complete RFP, maybe an RFQ, maybe just a comparison of bids but some process needs to be done to assure we're getting the lowest rate possible for those communities otherwise I think we're just you know shooting in the dark and I represent those areas. I'm very confident that those people want to be assured that they're getting the lowest rates possible. I'm very confident that they read the newspaper that they're concerned about the high rates at Keller that have existed for the last three years. They're very concerned about whether they're; actually going to get a lowering of their rates commensurate with what their needs are. I think there needs to be some assurance given to them that thats true and that's the lowest possible rate. I'm not saying that we can't cooperate with the sanitary districts. I am saying we need.to be clear it's our exclusive right. Supervisor Rogers: So, you have no objection to our staff talking with them and developing a proposal to corrie back as long as it starts out with the assumption that they agree this is an area that we have the right to franchise as of 1996. Am I understanding you correctly. Supervisor smith: I would think so. I think our staff should develop the proposal and go to them. And that should be the approach. Supervisor Rogers: Well, I would like to ask the maker of the motion then if it would be acceptable to include the understanding that Jeff just mentioned which is that this would be based on the assumption that we will be franchising in 1996 or that we will have the right to do that. We may choose;to have them involved in administering but is that acceptable to the maker of the motion. Supervisor Bishop: I believe I was the maker of the motion. I think 30 days will give us the opportunity to sort out what the issues are and I think frankly, we could come back in 30 days and it may well be what I'm hearing the two primary concerns I have expressed today are indemnification and direction of the waste stream as far as an amendment, I haven't even seen the memorandum of understanding. I'm not sure how close that follows the RFP and I think Dorothy brought up a good point, different areas and this is a small distinct area. They have service agreements that are very specific to that area and it may be that the RFP that was used by the Central County JPA is maybe not that appropriate for that area and maybe it is. I'm not sure. I frankly have riot had a chance to review. I've reviewed the Central County JPA, so I guess I have reviewed it. But I think we're talking about a small sanitary district that has different patterns of recycling, that has different patterns, if we address those two issues of indemnification and direction of waste stream and whatever else comes up in the solid waste ad hoc committee. I'm saying bring it back in 30 days. That gives us an opportunity to communicate with the people who are directly affected. Supervisor smith: Can I offer a substitute motion. Supervisor DeSaulnier: I'd like to act on the original motion as the seconder of that and I'd just like to have a comment since I've sat along with most of the people in the audience painfully for the last two and a half hours. I think we owe a courtsey to communicate with the districts. That's all I'm looking at. I don't think it's a comparison with the Joint Powers Agreement that actually Supervisor smith some of you may be shocked to hear this but he's actually using better language this week than he did two weeks ago when he referred to some of us as dumb apes. So, he's actually calming down and being one of those dumb apes, I would like to say that it's just common courtsey to try to communicate a little bit further and that's all we're asking for but I hope that when the ad hoc committee comes back we either have one recommendation or we have a split recommendation so we don't have to go through another hour and a half of ttestimony. Supervisor Smith: What's the motion? Can I ask. Supervisor Torlakson: I think that would be helpful to clarify. Because talking with Mark, I think I agree with what Jim said and I think Mark made too that we shouldn't give any ground on where our current policy is as Jeff is saying but we're saying let's talk to the districts and get some feedback, so if Jim's clarification is something that's included in the motion, it may meet the test and whether it's 30 days or two weeks may be another issue whether 30 days is too long of a time, I would defer to Jeff and the district to see whether that would work. Supervisor Bishop: then lets go ahead and vote on the motion. I think the motion was very clear. It was that we Jeanne restated motion.....that looks at alternatives of the RFP and solicits input from those two districts in preparing an RFP or if otherwise those concerns that have been raised by this Board can be addressed. Those concerns that is of indemnification, of direction of waste stream or other issues that may arise in the ad hoc solid waste with the intent of communicating and getting input from those districts. All those in favor of the motion Torlakson and rogers clarified notification issue. Supervisor Bishop: It is not part of the motion and let me tell you why because I'm not going to sit here in 1995 and try to go back and read in what the intent of the Board was in 1991. I think if we want to express an intent today that we are going to exercise exclusive franchising authority over that area, I don't want to make that a part of the motion. Supervisor smith: Well, I could support the motion if that was a part of the motion. Supervisor Bishop: Well, it's not Supervisor smith. All those in favor of the motion signify by saying aye. Those opposed. Carries 3-2/ Supervisor Torlakson: I'd move item a on the agenda and exclude the BFI Garaventa area related to the Antioch so that that could go through a further process, the industrial area just so that we could have a report back on the tonnage or volume of business but A related to the Baypoint recommendations, I'd move approval. Supervisor smith: Second. Supervisor Bishop: A is to consider. It is not something that is specific Supervisor Torlakson. I think B and C you're going to have to be specific with B and C. Supervisor Torlakson: A and C interrelate and I would move the item related to C which is just restating the motion I just made that the northeast antioch area would be put aaside for further discussion with. staff and a report brought back as soon as possible. Supervisor smith: Could Supervisor torlakson: and I will come back to B as it relates to Baypoint. And the other areas of dispute because;I think there's a similar issue there that was brought up related to Clayton and Concord that should be set aside so that area the area of service could be defined more precisely by the service information that both companies could provide. Supervisor Rogers: Does that including the modification we had suggested modifications from County Counsel, having to do with the rate question and we also had some from Garaventa. Supervisor Torlakson: It includes that, including the suggestions by the Garaventas related to the letter they have of February 27th which I'll submitt to the Clerk, those items plus the additional language related to definition of the family enterprise nature of the business. Supervisor Smith: and the other stuff by vic about administrative services and franchise fees.. . Supervisor Bishop: I will not be supporting the motion as I said we just received the letter today, this morning. There are still some issues outstanding as far as fair and equitable and Frank Aiello said we aren't fair and equitable to garbage companies, we're fair and equitable to people. Well,they are corporate persons or whether or not they're a publicly held corporaation or a privately held corporation, they are persons and I think we do have to be fair and equitable and it is clear to me that in both B and C that we aren't being fair and equitable and I think Supervisor smith it just sort of caught up with me. He talked about political patronage and political patronagte has nothing to do with this. It has all to do with what is fair and equitable and I don't think this process has been that. I think we're looking at the lowest possible rates. I think we are taking in one area in Baypoint the lowest rate is $16.75. And we have the potential at least Garaventa of getting down that far but that's not where we're starting from. We're starting with they have a higher rate and they are unwilling to lower that higher rate to a lower rate for the total area so we aren't getting the lowest possible rate for the rate payer. So, I won't be supporting either B or C. All those in favor of the motion. We're talking about C right now. Supervisor Torlakson: C and to clarify your comments Madam Chair clouded the issue in one regard. This allows us an opportunity existing franchise to change the franchise to get more power and control by the County and it allows us to implement a$2 rate decrease which has been promised to be followed by another $2 rate decrease which will equalize rates basically in that area and so I think it does a great service to the customers in that area the majority of whom we've seen by the maps are now at a higher rate and will not be able to enjoy a lower rate as a consequence. Supervisor Bishop: All those in favor of the motion, signify by saying aye. Opposed no. Supervisor Bishop. Carries 4-1. Supervisor Torlakson: And then item B, the reason I didn't batch them together, I did have the question to staff whether this franchise agreement for BFI includes indemnification against any Keller verdicts contrary to Keller's operation being passed on to the BFI customer. Since I don't know what the corporate interrelationship is between bank accounts or structures between the hauler,the transfer station and the landfill but does the franchise agreement includes that indemnification against adverse verdicts at Keller landfill on valuation studies or any other legal costs. Vic: Well, specifically it does not. County not responsible. Torlakson: Legal questions. Vic: response. Supervsor Torlakson: I think we should clarify that those areas that we franchise with BFI on will not be subject to a rate pass through of any adverse verdicts legally and you're saying it doesn't look like that's a problem or any policy decision we make, if there is a five or a ten million dollar valuation cost that the study that Sonoma State did against Keller, BFI in previous testimony have come to us and said they really shouldn't absorb that corporately, we shou Id pass it on in some way to the rate payers. I'm saying that these rate payers in these franchises I don't believe we shold allow that those pass throughs of any kind of cost if they should materialize should be allowed. We should prohibit that somehow in the franchise or some other legal document. Is there another way to prohibit that being passed through. I guess would we be able to control that under this franchise from being passed through. Vic responded. Supervisor Torl.akson: clarified no way rate payers bearing any cost. That satisfies me that there is not going to be a pass through. I'm moving b minus the clayton Concord area. Board discussion. Supervisor DeSaulnier: Second. Smith and Bishop voted no. ATTACHMENT A DRAFT FRANCHISE AGREEMENT FOR BFI AND GARAVANTA FRANCHISE AREAS i MODEL FRANCHISE AGREEMENT TABLE OF CONTENTS 1. EFFECTIVE DATE, PARTIES. . . . . . . . . . . . . . . . . 1 2 . DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . 1 a. Agreement. . . . . . . . . . . . . . . . . . . . . 1 b. Act. . . . . . . . . . . . . . . . . . . . . . . . 1 C. Board. . . . . . . . . . . . . . . . . . . . . . . 1 d. Commercial Solid Waste. . . . . . . . . . 1 e. Contractor. . . . . . . . . . . . . . . . . . . . . 1 f. County. . . . . . . . . . . . . . . . . . . . . . . 1 g. Customers . . . . . . . . . . . . . . . . . . . . . 1 h. Designated Waste. . . . . . . . . . . . . . . . 1 i . Franchise Area. . . . . . . . . . . . . . . . . . . . 1 j . Hazardous Waste. . . . . . . . . . . . . . . . . . 2 k. Industrial Waste. . . . . . . . . 2 1 . Infectious Waste. . . . . . . . . . 2 M. Recycle or Recycling. . . . . . . . . . . . . . . 2 n. Residential Solid Waste. . . . . . . . . . . . . . 2 0. Septage. . . . . . . . . . . . . . . . . . . . . . 3 p. Solid Waste. . . . . . . . . . . . . . . . . . . . 3 q. Waste Stream. . . . . . . . . . . . . . . . . . . . 3 3 . TERM. . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 . INTENT TO REGULATE ALL RECYCLING AND RESIDENTIAL AND SOLID WASTE COLLECTION, REMOVAL AND/OR DISPOSAL. . . . . 3 5 . EXCLUSIVE PRIVILEGE AND DUTY. . . . . . . . . . . . . . 3 6 . EXCEPTIONS TO EXCLUSIVE PRIVILEGE. . . . . . . . . . . . 4 7 . CONTRACTOR' S DUTY TO MAINTAIN RECORDS; COUNTY'S RIGHT TO EXAMINE RECORDS. . . . . . . . . . . . . . . . 4 8 . RATES. . . . . . . . . . . . . . . . . . . . . . . . . . 5 9 . RATE APPLICATIONS. . . . . . . . . . . . . . . . . . . . 6 10. OPERATION BY CONTRACTOR. . . . . . . . . . . 7 11. LIMITATION ON TIME AND MANNER OF COLLECTION. . . . . . 7 12 . CUSTOMER. SATISFACTION, AB 939 AND EFFICIENCIES IN OPERATION. . . . . . . . . . . . . . . . . . . . . . . . 7 1-3 . CUSTOMER SERVICE STANDARDS. . . . . . . . . . . . . . . 9 February 23, 1995 i 14 . LOCAL ADVISORY BOARD. . . . . . . . . . . . . . . . 9 15 . CUSTOMER COMPLAINTS. . . . . . . . . . . . . . . . 9 16 . BILLING. . . . . . . . . . . . . . . . . . . . . . . . . 10 17 . RECYCLING. . . . . . . . . . . . . . . . . . . . . . . . 10 18 . FREE SERVICE FOR COUNTY. . . . . . . . . . . . . . . . . 11 19 . FRANCHISE AREA-WIDE COLLECTION. . . . . . . . . . . . . 11 20. PARTICIPATION IN COMMUNITY CLEAN-UP PROJECTS. . . . 11 21 . DISPOSAL AND WASTE STREAM CONTROL. . . . . . . . . . . . 11 22 . MISCELLANEOUS OBLIGATIONS OF CONTRACTOR. . . . . . . . . 12 23 . ADMINISTRATIVE SERVICES BY COUNTY. . . . . . . . . . . . 12 24 . HAZARDOUS WASTE. . . . . . . . . . . . . . . . . . . . . 12 25. PRELIMINARY DISPUTE RESOLUTION. . . . . . . . . . . . . 13 26 . FAITHFUI, PERFORMANCE BOND. . . . . . . . . . . . . . . . 13 27 . INSURANCE. . . . . . . . . . . . . . . . . . . . . . . 13 28 . INDEMNIFICATION. . . . . . . . . . . . . . . . . . . . . 14 i 29 .- ATTORNEY' S FEES. . . . . . . . . . . . . . . . . . 15 30 . ASSIGNABILITY. . . . . . . . . . . . . . . . . . . . . . 15 31 . INVOLUNTARY ASSIGNMENT. . . . . . . . . . . . . . . . . 16 32 . NOTICE PROVISIONS. . . . . . . . . . . . . . . . . . . . 16 33 . ANNEXATION AND CHANGE OF FRANCHISE AREA BOUNDARIES. . 16 34 . AFFILIATED ENTITIES. . . . . . . . . . . . . . . . . . . 17 35. BREACH AND TERMINATION. . . . . . . . . . . . . . . . . 17 36 . EMERGENCY. . . . . . . . . . . . . . . . . . . . . . . 19 37 . COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS. . . . . . 19 38 . AMENDMENT OR MODIFICATION. . . . . . . . . . . . . . . . 19 39 . POLICE POWERS. . . . . . . . . . . . " . . . . . . . . . . 19 February 23, 1995 ii _ .ry.•:iLS[it:::....1_�1Si;1:t�.�t:•,.. --__ _ tom. _ �.`.�_ 40. CONTEST OF AGREEMENT'S TERMS. . . . . . . . . . . . . . 20 41. SEVERABILITY. . . . . . . . . . . . . . . . . . . . . . 20 42 . WAIVER. . . . . . . . . . . . . . . . . . . . . . . . . 20 43. SURVIVAL OF OBLIGATIONS. . . . . . . . . . . . . . . . . 20 44 . NEW AGREEMENT. . . . . . . . . . . . . . . . . . . . . . 20 45 . ENTIRE AGREEMENT. . . . . . . . . . . . . . . . . . . . 21 46 . OPERATIVE DATE.. o 21 February 23, 1995 iii FRANCHISE AGREEMENT 1 . EFFECTIVE DATE, PARTIES. This Agreement, effective on is by and between the County and the below named Contractor. 2 . DEFINITIONS. As used herein, the following terms shall have the meanings set forth below: a. Agreement. Agreement means this Agreement by and between the County and Contractor for . the collection, removal, and disposal of solid waste and the recycling of material. b. Act. Act means the California Integrated Waste Management Act of 1989 (Public Res. Code, S 40000 et -seq. ) and all rules and regulations adopted under any of those sections, as such sections, rules and regulations may be amended from time to time in the :future. C. Board. Board means the Board of Supervisors for the County of Contra Costa. d. Commercial Solid Waste. Commercial Solid Waste means Solid Waste routinely originating from stores, business offices and other commercial sources, excluding residences and industrial wastes . (14 Cal.Code Regs. , § 17225. 12 . ) e. Contractor. Contractor means and is the entity which has been granted an exclusive franchise pursuant to the terms and conditions set forth herein. . f. County. County means the County of Contra Costa. g. Customers. Customers means those who have contracted with the Contractor for the collection of materials for recycling and/or for the collection, removal, or disposal of Solid Waste, pursuant to this Agreement and applicable ordinances of County, including mandatory subscription ordinances . h. Designated Waste. Designated Waste as used herein has the meaning set forth in section 2522 of Title 23 of the California Code of Regulations, as amended from time to time. i . Franchise Area. Franchise Area means the geographic area generally described in Exhibit A to this Agreement, which Exhibit is attached hereto and incorporated herein by reference, and illustrated in the six hundred (600) - scale maps to be maintained and available for inspection at the Community Development Department. Exhibit A and said six hundred February 23, 1995 1 600)- scale maps shall be amended from time to time to reflect changes of boundaries of the Franchise Area in such a manner as to identify each alteration to the Franchise Area and the effective date thereof. j . Hazardous Waste. Hazardous Wastes include any waste material or mixture of wastes which is toxic, corrosive, flammable, an irritant, a strong sensitizer, which generates pressure through decomposition, heat or other means, if such a waste or mixture of wastes may cause substantial personal injury, serious illness or harm to humans, domestic animals, or wildlife, during or as an approximate result of any disposal of such wastes as defined in Article 2, Chapter 6 .5, Section 26117., of the Health and Safety Code. The terms "toxic," "corrosive, " "flammable," "irritant, " and "strong sensitizer" shall be given the same meaning as in the California Hazardous Substances Act (Chapter 13 , commencing with Section 28740 of Division 21 of the Health and Safety Code) . ( 14 Cal.Code Regs. , § 17225.32 . ) k. Industrial Waste. Industrial Waste includes all types of Solid Waste which result from industrial processes and manufacturing operations. ( 14 Cal.Code Regs. , S 17225.35. ) 1. Infectious Waste. Infectious Wastes include: ( 1) Equipment, instruments, utensils and other fomites of a disposable nature from the rooms of patients who are suspected to have or have been diagnosed as having a communicable disease and must, therefore, be isolated as required by public health agencies; (2) laboratory wastes, including pathological specimens (i.e. , all tissues, specimens of blood elements, excreta and secretions obtained from patients or laboratory animals) and disposable fomites (any substances that may harbor or transmit pathogenic organisms) attendant thereto; (3) surgical operating room pathologic specimens - including recognizable anatomical parts, human tissue, anatomical human remains and disposable materials from hospital, clinics, outpatient areas and emergency rooms, as is also defined in Section 314 (4) of the California Administrative Code, Title 17 . ( 14 Cal.Code Regs . , S 17225. 36 . ) M. Recycle or Recycling. Recycle or Recycling means the process of collecting, sorting, cleaning, treating and reconstituting materials and recovering them so that they may be used in the form of raw material for new, reused, or reconstituted products. n. Residential Solid Waste. Residential Solid Waste means Solid Waste routinely originating from single-family or February 23, 1995 -2 ,i r I multiple family dwellings . Residential Solid Waste includes household hazardous waste, but does not include septage. o. Septage. Septage means non-sewered liquid or semi-liquid waste which may be trucked to treatment facilities for disposal, to include, but not be limited to, waste from residential. septic tanks, commercial grease clean-outs, and industrial waste holding facilities. p. Solid Waste. Solid Waste has the meaning set forth in Section 40191 of the California Public Resources Code as of the date of execution of this Agreement. Solid Waste includes, but is not limited to, .all putreseible .and, nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, -treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semisolid wastes and other discarded solid and semisolid wastes. "Solid Waste" does not include infectious, designated, and hazardous waste, except household hazardous waste. q., Waste Stream. Waste Stream means the Solid Waste to be collected under this Agreement from the time of its collection by the Contractor to its disposal at a landfill or, at County's discretion, delivery to a transfer facility or other facility by Contractor. 3. TERM. Subject to Section 33 (Annexation and Change of Franchise Area Boundaries) and Section 35 (Breach and Termination) , the term of this Agreement and the exclusive franchise granted hereunder shall be 20 years, commencing on the effective date first mentioned in section 1 of this Agreement. .4. INTENT TO REGULATE ALL RECYCLING AND RESIDENTIAL AND SOLID WASTE COLLECTION, REMOVAL AND/OR DISPOSAL. The parties hereto agree that County currently has jurisdiction to regulate the collection, removal and disposal of all Solid Waste, and the recycling of all material, in the Franchise Area. The intent of this Agreement is to regulate Solid Waste handling service and recycling of material in the Franchise Area. 5 . EXCLUSIVE PRIVILEGE AND DUTY. To the extent allowed by law, County hereby grants to Contractor the exclusive privilege and duty to collect and remove for disposal and recycling, all residential and commercial Solid Waste, including recyclable materials, within the Franchise Area and to charge and receive charges therefor, pursuant to and subject to the terms of this Agreement. Contractor promises and agrees to perform the responsibilities and duties set forth herein. February 23, 1995 3 The Franchise Area may be expanded or reduced in size by mutual agreement of the parties, or as provided in Section 33 (Annexation and Change of Franchise Area Boundaries) of this Agreement. 6 . EXCEPTIONS TO EXCLUSIVE PRIVILEGE. The exclusive privilege granted by this Agreement shall not apply if: (a) A person or entity generates Solid Waste, including recyclable materials, and personally collects, removes and disposes or recycles such in a clean and sanitary manner in conformance with all applicable laws and regulations, including mandatory subscription ordinances. This exception shall not apply to a person who incurs a net cost of collection to a third person in the above described activities; or (b) A person or entity contracts with a third person for the removal and disposal or recycling of inorganic refuse or garden waste (a "Non-Franchised Contractor") and such removal and disposal or recycling is solely incidental to work such as remodeling_ or gardening occasionally performed by or for the customer. This exception shall not apply if the Non-Franchised Contractor incurs a net cost of collection to any third person in connection with its collection and/or disposal of said Solid Waste. 7. CONTRACTOR'S DUTY TO MAINTAIN RECORDS; COUNTY'S RIGHT TO EXAMINE RECORDS. Contractor shall maintain a proper set of books and records in accordance with generally accepted accounting principles, accurately reflecting the business done by itunderthis Agreement. Contractor shall further maintain and make available to County, upon its request, records as to number of Customers, total and by type, route maps, service records and other -materials and operating statistics in such manner and with such detail as County may require. County shall treat the information required by this paragraph that affects the competitive position of the company as confidential information to the extent permitted by law. County may at any time during the term of this Agreement, have the books and records of the Contractor examined by a County Agent or Agents appointed for that purpose by the County. County shall give thirty ( 30) days ' written notice to the Contractor of such examination date. County expenses incurred under this section shall be paid by Contractor subject to their recovery through the rates allowed by the County hereunder. The information required by this section shall pertain to Contractor' s operations covered and regulated by this Agreement, and nothing contained herein shall require the Contractor to February 23, 1995 4 provide the County with information pertaining to the Contractor's operations which are not regulated by the County, except in conformance with this section. County's Agents may examine Contractor' s books, records and financial statements pertaining to operations not regulated by the County as may be reasonably required for the sole purpose of gathering information necessary to allow the Agents to ascertain whether income, expenses, assets and liabilities are reasonably and consistently allocated among operations regulated by County and those not regulated by the County. Contractor shall obtain County's written approval of its method of segregating its financial records between County-regulated and non-County regulated operations. County shall not unreasonably withhold such approval. To the extent allowed by law, information gained from examination of records pertaining to operations not regulated by the County shall be treated by County and its agents as confidential information. For the review of books and other financial records necessary to verify the Contractor's income, expenses, assets and liabilities, "County Agent" shall mean County employees or an independent Certified Public Accountant or public accountancy firm. For all other information or records, including the results of financial verification, "County Agent" shall mean any consultant designated by. the County or County employees . Nothing in this section will prevent County from allowing public access to County 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 Contractor under the terms of this Agreement, the County shall in its discretion provide public access to said information according to law_or tender the defense of any claims made against the County concerning said information to Contractor. Prior to releasing any information pursuant to this paragraph, County shall make a good faith effort to notify Contractor of the intended release. 8. RATES. Rates shall be fixed by the County from time to time. In determining the rates, the County shall consider fairness to both Contractor and the Customers. Reasonable costs incurred by Contractor pursuant to this Agreement shall be designated as "pass-through" or "subject to reasonable profit" as determined by the County during the rate review process. Rates fixed by County shall be maximum rates which Contractor may charge the Customers . Nothing in this Agreement precludes Contractor from charging rates less than the maximum rates fixed by the County. Pending a rate review by the County, the maximum rates chargeable shall be those rates charged on the effective date of this Agreement. February 23, 1995 5 '.e','ra'i.n`'"' %eyiz:s:.e:duu ..i�.:cn'o" - - - 53.,::i:�•�� ...+r.:e.e.t_• Following consultation with the Contractor and examination of industry norms and trends, the County, in its sole discretion, shall determine the method of determining Contractor profitability. All costs associated with County review and processing of rate applications shall be paid by Contractor and shall be allowedas a pass-through cost in the rate application process . Contractor will offer a mini-can program at reduced rates as directed by the County following consultation with Contractor. 9 . RATE APPLICATIONS. Rate applications shall be prepared in accordance with such forms and in such detail as required by the County. The application shall include one reproducible hard copy, 15 hard copies bound in an appropriate manner and one copy on disk formatted pursuant to County specifications. Contractor shall submit its first rate application as directed by the County. All rate applications shall include ! information from the previous rate change to the present, or such other period of time as is selected by the County. Every three years, a rate application shall be accompanied by an audited financial statement covering the entire period since the last audited rate application together with supporting documentation as required to segregate its County regulated activities from other business activities . The County Administrator may, in writing, allow the rate application to be submitted without an audited financial statement provided the County Administrator is satisfied that the level of verifiable detail allows for adequate assessment of the Contractor's income, expenses, assets and liabilities . Rate changes may be initiated by County at any time or by Contractor- under the conditions allowed in this section. In either case, Contractor shall prepare a rate application in accordance with the requirements of this section. If the rate change is initiated by County, the Contractor shall submit its rate application to County within 60 days of County's notice to Contractor. If the rate change is initiated by Contractor, it shall be submitted no more than once a year under normal operating conditions . The date of Contractor initiated applications shall be standard, year by year; such date to be determined upon mutual agreement of the parties and reasonably related to the fiscal year of Contractor. February 23, 1995 6 =��--��-�.cwmnoons-^ L.itBcc$�`ctr:,'..'•� T:s<ctsck r�.s�Gst;:r�wss.s.rs�srr - -�-- -...,�y�..��._.�.��. } In the event that the rate change that would be requested by Contractor is no more than the change in the Consumer Price Index for All Urban Consumers for the San Francisco Bay Area for that fiscal. year of Contractor, Contractor may increase its rate up to such amount and not request a rate change from the County. Contractor may defer a rate application pursuant to this paragraph for a maximum of two consecutive years. In the event that Contractor must make significant changes in its operations or experiences significant changes in costs of revenue not under its control, Contractor may submit a rate application. Contractor shall provide documentation for the need for such rate application relative to those changes;,, The application will thereafter be considered by the Board. 10. OPERATION BY CONTRACTOR. Contractor shall furnish all necessary equipment (excluding containers for single-family residential wastes)- for services provided pursuant to this Agreement in the Franchise Area 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 Solid Waste collection system in the Franchise Area. The Contractor, in performance hereof, shall use trucks with covered, water-tight truck bodies constructed of sufficient strength to withstand a fire within, without endangering adjacent property. Trucks, drop boxes, bins, or similar types of equipment shall be kept clean and in good repair. Contractor shall have its name and telephone number on the side of each truck and on each drop box, bin or similar type equipment provided by Contractor. 11 . LIMITATION ON TIME AND MANNER OF COLLECTION. Contractor shall systematically collect Solid Waste, and to the extent permitted by this Agreement, materials for recycling from i-ts Customers . Frequency, place of pickup (e.g. , curbside, backyard, etc. ) oranyother manner of collection shall be subject to the review and approval of the Director of Community Development. Upon commencement of service and upon changes in collection day -schedules, Contractor shall provide each customer with notice of the scheduled collection day. Contractor shall not collect Solid Waste from an inhabited dwelling or dwelling unit between the hours of 7 :00 p.m. and 4 : 00 a.m. , except that if a dwelling unit is part of a collection route that predominately serves commercial accounts, collection may begin as early as 3:00 a.m. 12 . CUSTOMER SATISFACTION, AB 939 AND EFFICIENCIES IN OPERATION,. (a) From time to time, at its discretion, County may examine Contractor' s operation in order to evaluate whether the Contractor is operating at a satisfactory level of efficiency and customer satisfaction. Contractor agrees to cooperate in any February 23, 1995 7 .c........ :G:[il:iii%'•'.•'....Ai.4%v.•.;Z. ........___._..., vLe.CC:[.:i($iia1L'rLi:..'ir :i.va.i (if.. 4[::.NrY%• _ '__ _ - _"'.�"s"`�+.a .:.i.....L....._..__ such examination and shall permit County representatives to inspect, at. Contractor' s principal place of business, such information pertaining to Contractor's obligations hereunder as County may require, including, but not limited to, such things as customer inquiry records, collection routes and equipment records. Access to Contractor's records shall be subject to Paragraph 8 (Contractor's Duty to Maintain Records; County's Right to Examine Records) . (b) Notwithstanding any contrary provision- in this Agreement, the County shall have the right to direct Contractor to compile information, develop plans for and/or conduct programs on, alternative methods of Solid Waste and recyclable -material collection and management, or to take any other action requested by the County for the purpose of meeting the source reduction, recycling and composting requirements of the Act, and any other applicable federal, state or local laws regarding Solid Waste collection„ recycling and disposal, including, without limitation„ the County's Materials Diversion Ordinance. Contractor agrees to indemnify and hold the County harmless from and against any and all liability to the State of California for the County's noncompliance with the requirements of the California Integrated Waste Management Act due in whole or material part to the material failure of Contractor to properly carry out the reasonable directives of the County to Contractor regarding collection and disposition of Solid Waste and recyclable material; provided, however, that Contractor shall not be obligated to carry out any such directive (and shall not indemnify nor hold the County harmless from any resulting liability) if the County fails to agree to allow Contractor its reasonable costs (including a reasonable profit) associated with carrying out such directives. (c) County may require Contractor to develop plans for and conduct programs on alternative methods of Solid Waste collection, including pilot programs of limited scope, or may require additional programs, for the purpose of improving service, increasing customer satisfaction, and meeting diversion requirements. County may also require Contractor to implement efficiencies in its operation upon written notice from County. The notice shall allow Contractor a reasonable period of time to implement the specified service (efficiency) . Should County require commencement of such a program as outlined in this paragraph, Contractor agrees not only to do those things specified herein, but also to act at the direction of the County on other matters that may be necessary for the success and efficiency of the project, such as public information and notification. In the event that County elects to direct Contractor to discontinue any service theretofore performed by Contractor at the direction of County hereunder, County shall allow Contractor to recover its reasonable capital equipment February 23, 1995 8 costs and other reasonable costs arising upon termination of the service. Rate adjustments applicable solely to programs instituted pursuant to this subsection (c) initially shall be established at the time the County authorizes implementation of the program or efficiency. 13. CUSTOMER SERVICE STANDARDS. Contractor shall provide prompt, efficient, continuous and professional service to its Customers. Contractor shall have a phone system with sufficient capacity to promptly respond to telephone calls for at least 8 hours a day during weekdays, excluding: those holidays observed by Contractor. Telephone numbers for customer service shall be -located in the local telephone directory. All: telephone.,lines for customer service shall be toll free to Customers. Not less than once every three years and not less than six months prior to an application for contract renewal, -assignment or extension of term, Contractor shall conduct a representative survey or :surveys of Customers within the Franchise Area to determine :satisfaction with service, including, without limitation, response to customer complaints. The survey methodology, formatand content shall be subject to the prior review and approval of the Director of Community Development. A copy of the survey results shall be sent to the County within sixty (60) days of completion of the survey. Nothing in this paragraph shall limit the right of the County to conduct additional surveys . The Contractor shall cooperate with the County in such cases. Upon 'initiation of service, and at least once a year, Contractor shall send or deliver to Customers information concerning the conditions of service, including, but not limited to, rates, fees, charges, service options, payment options, discounts (if any) , days of collections, the amount and manner of refuse to be collected, service level and inquiry/complaint procedures, including the name, address and local telephone number of Contractor and the name, address and telephone number of the County Community Development Department. The form and content shall. be subject to the review and approval of the Director of Community Development. 14 . LOCAL ADVISORY BOARD. The Board of Supervisors may designate an existing committee to represent the Franchise Area, or form an advisory body to advise the Board on the performance of the Contractor in the community, local service interests and needs, and rate applications. In all cases, the Committee shall hold its meetings at a time and place convenient to the public. The Committee shall keep a record of all public comments and submit such comments when reporting to the Board. 15 . CUSTOMER COMPLAINTS. Contractor shall develop and implement policy and procedure for responding to and recording February 23, 1995 9 customer complaints, including dispute resolution. The policy and procedure shall be subject to the approval of the Director of Community Development. 16 . BILLING. The form and content of customer bills shall be subject to the review and approval of the Director of Community Development. Bills for services may be monthly, bimonthly or quarterly as determined by County. Contractor may bill its customer in advance or in arrears. The County may establish billing period options for. Customers upon a finding that such options are cost- effective and meet a community need. Full payment for drop boxes may be required by Contractor prior to delivery of the drop box to the customer. The County shall have the right to direct the Contractor to change or alter its billing system in which event the marginal additional expenses incurred by the Contractor in the implementation of the change, with regard to the accounting, printing, mailing, loss of use of funds, or otherwise, shall be recoverable by the Contractor through the rates allowed by the County provided such expenses are reasonable. Contractor shall inform customers of all rate changes at least 30 days prior to their effective date. A copy or facsimile of such notice shall be provided to County at the time of customer notification. 17 . RECYCLING. County grants to Contractor the right and obligation to operate recycling programs, including curbside pickup of recyclable materials, as determined and designated by County, subject to County' s right to terminate this grant to Contractor pursuant to the provisions of this section. Contractor has instituted and is implementing a recycling program including regular curbside pickup at all single family residences of at least aluminum, tin, newsprint, glass bottles, non-colored HDPE and PET. This program is currently operating to the satisfaction of County; however, County has the right at anytime to modify said program or require new programs as provided at Section 12 (b) hereof. Contractor shall maintain and provide to the County records relating to its recycling programs as directed by the Director of Community Development. Contractor' s provision of recycling service shall be reviewed within three (3) years of the effective date of this Agreement and, at County' s discretion, every five years thereafter. If County determines that continuation of such service by Contractor is not consistent with the County' s February 23, 1995 10 I ratepayers best interest, but not as a result of Contractor' s failure to satisfactorily provide recycling services, Contractor shall be allowed to recoup its unamortized capital expenditures as follows„ Contractor shall make a good faith effort to sell all disposable assets acquired in furtherance of the program for their fair market value. If income derived from the sale is insufficient to cover the unamortized costs of such assets, Contractor may transfer those losses together with net operations profits or losses to its general account and submit a rate application to cover such losses. If County determines that Contractor has failed to satisfactorily provide aDd perform recycling services, County- may, terminate this grant to Contractor of the right and-obligation to provide and operate recycling programs, at no cost or further obligation on the part of County or County's ratepayers . 18. FREE SERVICE FOR COUNTY. Contractor shall provide Solid Waste collection and disposal services at those County buildings designated by the Director of Community Development from time -to time, at no charge to the County. 19 . :FRANCHISE AREA-WIDE COLLECTION. In addition to its regular collections, Contractor shall provide two annual collections for each region in the Franchise Area as determined by the Community Development Director. Said collections shall be made each year throughout the term of this Agreement in accordance with practices and procedures established by Contractor and subject to the approval of the Community Development Director. 20. PARTICIPATION IN COMMUNITY CLEAN-UP PROJECTS. Contractor shall provide, upon direction of the Community Development Director, Solid Waste drop boxes or equivalent containers for community or other clean-up projects within the Franchise Area. The Contractor's obligation shall be limited to the equivalent of ten ( 10) 20-cubic yard drop boxes per year, per region in the Franchise Area. 21. DISPOSAL AND WASTE STREAM CONTROL. Contractor shall be solely responsible for the disposal of the Solid Waste collected pursuant to this Agreement. County has complete authority and control over the Franchise Area waste stream. County may, at its sole discretion upon providing 60 days ' notice to Contractor, direct the Solid Waste collected under this Agreement to be delivered to any site or facility of its choosing. This shall include the right of the County to direct the Solid Waste to be delivered to any County designated transfer station, disposal site, transformation facility and/or resource recovery facility. It is understood that County may contract with any party, public or private, to commit the waste stream from the Franchise area, and that Contractor' s contracts may not bind County, nor need February 23, 1995 11 't:[iisi:c2G.i.i.c.c.c:....mr..+asecrs:....<...�_, _._..... __.-. - — •• ...-..<. _._..._...._..,.. u' _.�.<,..+... County consider such other contracts for any purpose. Notwithstanding the above, Contractor may propose, and County may but need not consider, waste management and/or disposition alternatives which are cost effective. In determining or comparing costs, County shall consider all relevant factors, including but not limited to, transportation costs, closure and postclosure requirements, costs and liabilities, disposal fees, fees levied by governmental entities, including benefits to Contractor's customers from paying such fees, costs of compliance with ordinances and other local requirements, and long-term costs, including degree of control over; future costs. 22 . MISCELLANEOUS OBLIGATIONS OF CONTRACTOR. Contractor shall assist County in its enforcement of its mandatory subscription ordinance by providing County with the addresses of properties not subscribing to collection service within the Franchise Area and by providing collection service to such properties upon written request by the County. 23. iADMINISTRATIVE SERVICES BY COUNTY. Contractor shall pay to the County for the services provided by the County in administering this Contract and for services and programs pertaining to Solid Waste, a percentage of its gross annual revenues generated from the performance of such waste collection services under this Agreement. Such percentage, time and frequency of payment shall be established by County from time to time. Said sums shall be payable from the Contractor to the County upon the inclusion of the administrative service charge in the allowed rate and upon the collection of said rate by the Contractor. 24 . HAZARDOUS WASTE. The parties hereto recognize that federal, state and local agencies with responsibility for defining hazardous waste and for regulating the collection, handling or disposing of such substances are continually providing new definitions, tests and regulations concerning these substances. Under this Agreement, it is 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 County upon its request, Contractor' s program for identifying hazardous waste and complying with all federal, state and local statutes and regulations dealing with hazardous waste. Contractor shall make every reasonable effort to prohibit the collection and the disposal of hazardous waste in any manner inconsistent with applicable law. February 23, 1995 12 25 . PRELIMINARY DISPUTE RESOLUTION. If Contractor has a question as to the interpretation of this Agreement, it shall submit a written request to the Director of Community Development for a determination of the issue. The Contractor shall provide and submit such information as the Director of Community Development may request or require to make the requested determination. The written determination of the Director of Community Development may be appealed to the Board of Supervisors pursuant to Ordinance Code Chapter 14-4 . 26 . FAITHFUL PERFORMANCE BOND. Contractor shall submit to County simultaneously with the execution of this Agreement a corporate surety bond in the amount of $10,000. 09,, provided_. however, that the Board may increase this amount not more often than every three years to reflect changes in the Consumer Price Index for All Urban Consumers for the San Francisco Bay Area. The bond shall be executed by a surety company licensed to do business in the State of California and acceptable to County. The bond shall be approved by County and shall be payable to County. The condition of the bond shall be that Contractor will faithfully perform the duties imposed by ordinance, this Agreement and the rules and regulations of County. Any action by County to proceed against the Bond shall not limit or affect the right of County to use other remedies available to County under the Agreement., or in courts of law or equity. Notwithstanding the foregoing, in lieu of the corporate surety bond, Contractor may provide to County a letter of credit, cash bond or other security acceptable to the County Administrator's Office in a form satisfactory to the County. 27 . INSURANCE. Contractor shall procure and maintain in full force and effect at all times during the entire term of this Agreement the following insurance coverage: (a) Public liability and property damage insurance including completed operations, products, contractual, broad form property damage, personal injury and owned and non-owned automobile liability with such coverages and limits as may be reasonably requested by County from time to time, but in no event with limits not less than the sum of $1 million combined single limit for each occurrence arising from the services as stated in the Agreement herein. County shall be named as an additional insured under such liability insurance policy or policies, if commercially available. (b) Contractor shall carry workers ' compensation insurance for all its employees . Evidence of liability and workers ' compensation insurance shall be provided by Contractor by filing with County a certificate of insurance indicating that County is endorsed as an additional named insured under the liability policy. All February 23, 1995 13 policies shall include a provision that written notice of cancellation or any material change in coverage shall be delivered to County thirty (30) days in advance of the effective date thereof. No cancellation, alteration or change of beneficiary shall be made without written notice to County. County reserves the right to examine all policies from time to time to ensure appropriate conformity to prevailing practices and standards of the insurance industry. Such insurance shall be obtained from a company or companies licensed to do business in the State of California and acceptable to County. Failure of Contractor to maintain insurance in the manner and amount stated herein and as directed by County Administrator, subject to the approval of the Board, will constitute a material breach of this Agreement. 28. INDEMNIFICATION. a. Complete Indemnification of County. All work and performance covered by this Agreement shall be at the risk of Contractor. Contractor agrees to save, indemnify and keep harmless the County, 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, including environmental damage, arising directly or indirectly out of the obligations herein undertaken. or out of the operations conducted by Contractor, save and except claims or litigation arising through the sole negligence or willful misconduct of County, and will make good to and reimburse County for any expenditures, including reasonable attorney's fees, that County may make by reason of such matters and, if requested by County shall. defend any such suit at the sole cost and expense of Contractor. -._The above promise by Contractor to indemnify, hold harmless and defend the County expressly includes, but is not limited to, all claims, damages (including by not limited to special and consequential damages) , natural resources damages, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal administrative proceedings, interest, fines, charges, penalties and expenses (including but not limited to attorneys and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, County, its officers, employees or agents arising from or attributable to any repair, cleanup or detoxification, or preparation and implementation of any removal., remedial, response, closure or other plan (regardless or whether undertaken due to governmental action) concerning any hazardous substances or hazardous waste at any February 23, 1995 _ 14 place where municipal solid waste is or has been transported, transferred, processed, stored, disposed of or otherwise come to be located by Contractor under Agreement, or the activities of Contractor pursuant to this Agreement resulting in a release of hazardous substances or waste into the environment. The foregoing is intended to operate, in part, as an agreement pursuant to Section 107(e) of the Comprehensive Environmental Response, Compensation and Liability Act, "CERCLA", 42 U.S.C. Section 9607(e) , and California Health and Safety Code section 26364, to defend, protect, hold harmless and indemnify County. The intent of the section is to provide County with the highest level of protection possible under existing and future laws . b. Defense of Agreement. Should any party successfully challenge the validity of this Agreement, the procedure by which this Agreement was entered into or the validity of any County ordinance which authorizes the County to enter into this Agreement, then in such case the Contractor shall have no cause of action for damages or any other relief against County as a result of such successful challenge. Contractor has the right to defend this Agreement and County. County has no duty to Contractor to defend the validity of this Agreement or any provision hereof. 29 . ATTORNEY'S FEES. In the event of litigation between the parties arising hereunder, each party shall be responsible for and pay its own litigation expenses, including attorney' s fees . 30. ASSIGNABILITY. Contractor shall not sell, assign, subcontract or transfer this Agreement or any part hereof, or any obligation hereunder, without the written consent of County. The term assignment shall include any dissolution, merger, consolidation or other reorganization of Contractor, which results in change of control of Contractor. In the event Contractor herein attempts to assign or subcontract this Agreement or any part hereof or any obligation hereunder, County shall have the right to elect to terminate this Agreement forthwith, without suit or other proceeding. Consent to assignment may not be unreasonably withheld. However, it is understood that County's grant of this franchise to Contractor is partly persuaded by the Contractor' s financial strength and background in the field of waste management; therefore, assuming Contractor maintains it ability to faithfully carry out its duties hereunder, it is in the County's ratepayers ' best interest for Contractor to continue under this Agreement. Following a public hearing, County may assign or transfer February 23, 1995 15 any or all of its rights under this Agreement without the consent of Contractor to any legally authorized public entity. 31. INVOLUNTARY ASSIGNMENT. No interest of Contractor in this Agreement shall be assignable by operation of law. Each or any of the following acts shall be considered an involuntary assignment providing County with the right to elect to terminate the Agreement forthwith, without suit or other proceeding: ( 1) If Contractor is or becomes insolvent, or makes an assignment for the benefit of creditors; (2) If Writ of Attachment or Execution is levied. on this Agreement or other property of Contractor such that would affect Contractor's ability to perform its duties and obligations under this Agreement. (3) If in any proceeding to which Contractor is a party, a Receiver is appointed with authority to take possession of Contractor's property such that would affect Contractor's ability to perform its duties and obligations under this Agreement. (4) Except as otherwise provided in Section 31 (Assignability) , in the event of a probate proceeding where the rights of Contractor under the Agreement would pass to another individual or other individuals . 32 . NOTICE PROVISIONS. Any notice required or permitted under this Agreement shall be in writing and shall be deemed to i - have been given if delivered personally or ten ( 10) days. after posted by certified mail, return receipt requested, addressed as appropriate either to Contractor: Or to County: Attention: Director of Community Development 651 Pine Street, 4th Floor North Wing Martinez, California 94553 33 . ANNEXATION AND CHANGE OF FRANCHISE AREA BOUNDARIES. Contractor shall give notice to County by January 30 of the next calendar year of any geographic area in the Franchise Area or immediately contiguous to the Franchise Area, in which Contractor has commenced service within the preceding year, notwithstanding February 23, 1995 16 whether Contractor deems that area to be regulated or unregulated. Contractor realizes that the public agency boundaries may be altered by virtue of actions taken by the Contra Costa County Local Agency Formation Commission (LAFCO) . Contractor agrees that should a municipal corporation lawfully annex territory which is within the Franchise Area, County may make such alterations to the Franchise Area as the annexation necessitates . Should the Franchise Area boundaries be amended, Contractor agrees that it will abide by any change resulting from the Franchise Area change. Contractor agrees that the Board of Supervisors may make such alterations to the Franchise Area as. _ are necessitated by such Local Agency Formation Commission actions and shall have no right or claim to damages or other relief against the County for such alterations to the Franchise Area. However, nothing herein is intended to abrogate Contractor's rights under Public Resources Code Section 49520 or any successor or similar statute. 34 . AFFILIATED ENTITIES. Contractor shall provide information necessary to reasonably satisfy County that the charges made by any Affiliated Entity are reasonable in accordance with the provisions of Section 8 (Contractor's Duty to Maintain Records; County' s Right to Examine Records) . Information gained from examination of books and records pertaining to operations not regulated by the County shall be treated by the, County and its agents as confidential information. "Affiliated Entity" shall be defined, for purposes of this section, as any entity which provides products or services to Contractor and in which either Contractor or the affiliated entity owns a ten percent ( 10%) or greater interest in the other, or where one person or entity owns ten percent ( 10%) or greater interest in both. For purposes of this section, the term "Contractor" shall include Contractor, and if Contractor is an individual or a group of individuals (partnership) , all immediate family members, or if a corporation, major shareholders, and if any major shareholder is an individual, said individuals ' immediate family members. For the purpose of this paragraph, "immediate family" includes spouses and relatives of the first degree of sanguinity, and their spouses . 35 . BREACH AND TERMINATION. The Director of Community Development shall have authority, subject to review by the Board of Supervisors upon appeal, to determine whether a breach of any provision of this Agreement by Contractor has occurred. Any waiver of a 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 the Director determines that a breach has occurred, County shall give Contractor written notice of the breach setting forth the breach or default. Contractor shall February 23, 1995 17 .u.w.vti_..�.:........._.e..Lr:.`.4......u....G.t.c.c.uvu.w���.���._.__ uur�.e..elrvvv+w..�....� _�._._.�....�r............... have a reasonable period to cure the noticed breach, said breach not to exceed 60 days. In the event the breach or default is cured to the satisfaction of the Director of Community Development within the period of time allotted, the breach shall not be deemed a material breach. In the event that the Director of Community :Development determines that Contractor has failed to satisfactorily cure the breach or default within the period of time allotted, the Director of Community Development 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 Director of Community Development, in his discretion, to declare any subsequent breach 'to be material, notwithstanding whether that breach is ultimately cured by Contractor. If such a determination of material breach is made, the Director of Community Development's determination shall be automatically appealed to the Board of Supervisors for final action. A material breach shall be cause for termination of this Agreement by the Board of Supervisors. In the event of a termination pursuant to this section, County shall have the right to temporarily assume the obligations of Contractor and shall have the right to forthwith take possession of all trucks and other equipment of Contractor and exercise Contractor's right to enter and use any disposal facilities for the purpose of performing the services agreed to be performed by Contractor herein until such time as County 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 County for a period exceeding twelve ( 12) months from the date such operations are undertaken by County. During any period in which County has temporarily assumed the obligations of Contractor under this Agreement, County 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 Contractor. County shall be entitled to the excess, if any, of revenue over applicable or allocable costs and expenses during such period.. The loss, if any, during such period shall be a charge against Contractor, and shall be paid to County by Contractor on demand. Final adjustment and allocation of gross revenue, costs, and expenses to the period during which County temporarily assumed the obligations of Contractor shall be determined by an audit by a Certified Public Accountant and February 23, 1995 18 prepared in report form with his unqualified opinion annexed thereto. Nothing in this Agreement shall prevent County during any period in which County temporarily assumes the obligations of Contractor under this Agreement, from employing persons who were employed by the Contractor for the collection of Solid Waste under this Agreement. Upon the occurrence of a material breach and the declaration of such and termination of this Agreement by the Board of Supervisors, this Agreement and the franchise granted thereunder shall be of no further force and effect, expecting these provisions concerning County's right to temporarily assume Contractor's obligations and to use Contractor's facilities, and Section 28 ( Indemnification) . County then shall be free to enter into whatever other arrangements are deemed justified and necessary for the collection, removal and disposal of Solid Waste within the Franchise Area. 36 . EMERGENCY. Notwithstanding Contractor's exclusive franchise rights set forth in Paragraph 5 (Exclusive Privilege and Duty) , in the event of an emergency due to natural disaster or labor strike which interrupts the collection of Solid Waste by Contractor, the Board of Supervisors shall have the right to declare a temporary suspension of this Agreement for the reasonable duration of the emergency and until such time as County determines that Contractor is able to reassume all obligations under this Agreement. Should Contractor fail to demonstrate to the satisfaction of the Board of Supervisors 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. 37 . COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS. Contractor shall be responsible for and shall comply with all applicable laws, 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 California, the County 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 Solid Waste and recycling of material . This includes County Ordinance Code Chapter 418-6 (on mandatory subscription to Solid Waste collection service) , and the County' s Materials Diversion Ordinance. 38 . AMENDMENT OR MODIFICATION. This Agreement may be amended or modified upon written agreement of the parties hereto. The parties agree to meet and confer in good faith if amendments or modifications are proposed. 39 . POLICE POWERS . Nothing in this Agreement is intended February 23, 1995 19 to or may limit County authority pursuant to its police power. 40 . CONTEST OF AGREEMENT'S TERMS. 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 non-breaching party shall have the right to elect to terminate this Agreement forthwith without suit or other proceeding. This section shall not be construed to prevent either party from seeking redress from the courts for the purpose of legal review of administrative proceedings regarding rate setting or County actions taken pursuant to this Agreement, or for the purpose of interpreting or enforcing the provisions contained in this Agreement. 41 . 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 . However, if material provisions hereof are affected, the parties agree to negotiated in good faith to reach agreement on revisions which preserve the substance hereof to the greatest extent allowed by law. 42 . WAIVER. The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be waiver of any breach or violation of any other provision nor of any :subsequent breach or violation of the same or any other provision. The acceptance of any monies which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other party of any provision of this Agreement. 43 . SURVIVAL OF OBLIGATIONS. Obligations of this Agreement which embody continuing obligations, including but not limited to Section 28 ( Indemnification) shall survive the termination or expiration of this Agreement. 44 . NEW AGREEMENT. Upon the effective date of this Agreement, all other Agreements between the parties for the provision of solid waste and/or recycling services within the Franchise Area are superseded except that all continuing obligations under said superseded agreements shall continue in full force and effect for the periods covered by said superseded agreements . February 23, 1995 20 45 . ENTIRE AGREEMENT. This Agreement represents the full and entire agreement between the parties hereto with respect to the matters covered herein. 46 . OPERATIVE DATE. This Agreement becomes operative on August 5, 1996 or on such earlier date as the parties may agree. COUNTY OF CONTRA COSTA CONTRACTOR CHAIR, BOARD OF SUPERVISORS [Title] ATTEST, Phil Batchelor, Clerk of the Board [Title] and County Administrator By: Taxpayer I .D. Number DEPUTY LTF 17a:\frn223 .95 February 23, 1995 _ 21 ATTACHMENT B DR-AFT REQUEST FOR PROPOSALS FOR SOLID WASTE SERVICES DRAFT CCC RFP 'P SECTION I - INTRODUCTION A. PURPOSE Contra Costa County(CCC)is requesting proposals from qualified companies to provide: o :Refuse Collection o :Refuse Transfer and Disposal o :Recycling Collection, Processing and Marketing o Green Waste Collection, Processing and Marketing The request is divided into 2 zones. Zone 1 consists of Rodeo and Zone 2 consists of Mountain View. The term of the agreement is for years with an option for month extensions. B. BACKGROUND CCC received the right to franchise. C. SCOPE OF SERVICES REQUESTED CCC has divided its overall service area into two separate zones to enable collection companies to achieve economies of scale and allow for the opportunity of having more than one company provide the requested services. CCC is requesting separate proposals by zone for the following services: refuse collection; refuse transfer and disposal; recycling collection, processing and marketing; and green waste collection, processing and marketing. The CCC is also soliciting consolidated proposals to provide services to both zones. The CCC is requesting proposals for any of the following: o All services by zone o Any combination of services by zone o Individual services by zone o All services for both zones o Any combination of services for both zones -1- DRAFT CCC RIT ' • Individual services for both zones CCC reserves the right to award one agreement to one company for all of the requested services in both zones, or to award separate agreements for each services or combination of services to a number of companies. CCC will be the franchising agency and be .responsible for contract administration including setting rates. Rates will be jurisdiction based. The Draft Franchise Agreement, which is provided as Attachment 1 to this proposal, describes how costs will be allocated across the jurisdictions. The following sections briefly describe the services that are being procured by CCC. 1. Solid Waste Service A - Refuse Collection • Automated, mandatory, weekly, residential refuse collection with 32- gallon containers as the standard size, including a method to service hard to serve areas, senior citizens and handicapped individuals; • On-call bulky waste collection; • One (1) to three (3) annual clean-ups; • Bin service (includes multi-family, commercial and industrial refuse collection); • Debris box service (includes commercial and industrial collection); and • Service to City, Town, District and County facilities, and special events (jurisdictions will pay for services). 2. Solid Waste Service B - Refuse Transfer, Processing and Disposal • Refuse transfer and transport to disposal site; and • Refuse disposal. 3. Solid Waste Service C - Recycling Collection, Processing and Marketing • Weekly, mandatory pay, residential curbside recyclable materials collection; • Commercial and multi-family recyclable materials collection; • Recyclable materials processing and marketing; and • Service to City, District and County facilities (jurisdictions will pay for -2- DRAFT CCC RFP services) w t. 4. Solid Waste'Service D - Green Waste Collection, Processing and Marketing • Weekly, mandatory pay, residential curbside green waste collection with 64-gallon containers as the standard size, and recyclables collection on the same day as refuse collection; • Green waste processing and marketing; • Christmas tree recycling; • Commercial and multi-family green waste recycling; and • Service to City, District and County facilities (jurisdictions will pay for services). D. PROPOSAL PROCESS Written questions will be accepted before the Mandatory Pre-Proposal Bidders Conference on , and written responses will be provided at the Conference. Oral questions will be accepted at the Conference and written responses will be provided thereafter. Written questions will be accepted until 5:00 p.m. on . The CCC has requested that all communications regarding this Request for Proposals be conducted through The contact person there is who can be reached at _ and by facsimile at In order to fairly evaluate all proposals, the CCC has attempted to describe the types of services and business terms and conditions in a manner that will allow a reasonable level of comparability between the proposals. Therefore, the CCC discourages and may disqualify proposals that substantially deviate from the RFP. Proposals received after the submission deadline of will not be accepted. Companies will be selected on the basis of the CCC's evaluation of the qualifications and reputation of-the firm, the technical and financial proposals, and the number and nature of exceptions taken to the Draft Franchise Agreement which is provided as Attachment 1 to the RFP. Upon award, each company selected will be required to enter into an agreement based on its proposal in a timely manner. -3- DRAFT CCC RFP SECTION II - DESCRIPTION OF CURRENT SERVICES A. DESCRIPTION OF ZONE 1. Population The CCC RFP is composed of Rodeo and Mountain View, unincorporated areas in Contra Costa County (See maps in Attachment 2). 2. Customer Accounts The Rodeo total service area includes _ residential accounts, multi- family accounts, and _ commercial accounts. The Mountain View area includes residential accounts, __ multi-family accounts and commercial accounts. 3. Geographic Area Most Rodeo is moderate to hilly. Mountain View area is level. B. CURRENT SERVICES Service Information a. The following table presents basic service information on each jurisdiction. Current Services Type of �esidenUal Type of Type of.. Refuse Recycling lvlatenals< ;Recycling Green Neste Juriadtctron Current Hauler Cgllecuon t ollected Collectson Cailectign Rodeo Refuse: Manual, News,glass,AL,PE Weekly, Weekly, BFI P.H. Bayshore backyard (colored&clear), commingled manual, Recycling&Green Waste: HDPE,tin except glass, backyard BFI P.H. Bayshore news Mountain Refuse,Recycling&Green Manual, News,glass,AL,PE Weekly, Weekly, view Waste: backyard (colored&clear), commingled manual, BFI P.H.Bayshore HDPE,tin except glass, backyard news -4- • a DRAFTCCC RFP b. ]Profile of Refuse, Recycling and Green Waste The following'table contains additional information. on annual tons collected, number of accounts, number of route per week, and rates for the various services for each jurisdiction. Profile of Refuse, Recycling and Green Waste IL Rodeo Mountain View Residential Refuse Collection Annual tons collected Number of accounts Number of route days/week Bulky waste route days/week 32-gallon can rates Multi-Family. Commercial &Industrial Refuse Collection (Bin Service) Annual tons collected Number of accounts Number of route days/week Rates (frequency & size) febris Box Container Refuse Collection Annual tons collected Number of route days/week Residential Recycling Annual tons collected Number of route days/week Participation rate Commercial Recycling 1993 annual tons collected Number of route days/week Residential Green Waste Annual tons collected Number of route days/week Participation rate -5- DRAFT CCC RF? C. OTHER SERVICES 1. Refuse Transfer & Disposal All waste collected in the Rodeo and Mountain View Service area is currently transported to ACME Fill Corporation transfer station in Martinez where it is transferred to Keller Canyon landfill near Pittsburg. a. Zone 1 Rodeo The total waste volume is _ tons per year. The total includes _ tons of residential waste, tons of commercial waste and tons of debris box/self-haul waste. b. Zone 2 Mountain View The total waste volume is tons per year. The total includes tons of residential waste, tons of commercial waste and _ tons of debris box/self-haul waste. 2. Recycling and Green Waste a. Zone 1 Approximately _ tons of residential and _ tons of commercial waste are diverted annually. Commercial recycling is currently performed by the refuse hauler as part of its exclusive refuse franchise in each jurisdiction. b. Zone 2 Approximately _ tons of residential and _ tons of commercial waste are diverted annually. Commercial recycling is currently performed by the refuse hauler in each jurisdiction. 3. Drop-off Centers a. Zone 1 Currently has a contract with __ who operates a recycling center in Rodeo which accepts _ in addition to the materials collected in Rodeo curbside program. b. Zone 2 _currently operates a recycling center in Mountain View which accepts mixed paper, cardboard, white paper, metals, and wood in addition to the materials collected in Mountain View's curbside program. Pleasant Hill Bayshore operated a recycling center in Pacheco to service the Northern unincorporated area. The recycling center accepts aluminum scrap, anti-freeze, car batteries, brass and copper scrap, cardboard, grocery bags, junk mail, magazines, motor oil, mixed paper, white and =6- DRAFT CCC RFP computer paper in addition to the materials collected in the Northern unincorporated area's curbside program. D. CUSTOMER SERVICE BFI Pleasant Hill Bayshore is responsible for customer service. The CCC agreement formally describes the handling of customer complaints. E. PUBLIC EDUCATION The CCC is responsible for public outreach and education for the jurisdictions in the CCC. F. BILLING The current hauler in each of the jurisdictions is responsible for billing service. Residents of Rodeo and Mountain View are billed quarterly. All other residents are billed bi-monthly. Recycling fees are collected on the property tax bill and in turn paid to the recycling company. G. AB 939 PLANNING All jurisdictions completed SRRE's and plan on achieving the State mandated waste diversion goals of 25% by 1995 and 50% by the year 2000. To achieve these goals, the County will support the following. • Increasing the types of material collected through residential curbside recycling services; • Increasing commercial recycling; • Considering development of a transfer station with provisions for material recovery; 0 Implementing green waste collection and home composting programs; and • Implementing additional source reduction programs. -7- DRAFT CCC RFP The jurisdictions' SRRE's indicate that they plan to achieve the following diversion in 1995 and 2000: Projected 1995 Projected 2000 Percentage Percentage Generation Diversion Diversion Generation Diversion Diversion Zone 1 Rodeo Zone 2 Mt. View 1993 actual diversion by jurisdiction is as follows: Tons Percentage Generated Disposed Diverted Diversion Zone 1 Rodeo Zone 2 Mt. View -8- DRAFT'CCC RFP SECTION III - PROPOSAL GUIDELINES A. PROCUREMENT SCHEDULE 1 ate . Activity • Request for Proposals available from: • Pre-Proposal Conference: • Proposal Submission by 5:00 p.m. To: • Interviews with Selected Companies • Approval by CCC Board • Start of Solid Waste Collection Services These dates are tentative only, and subject to change by CCC. B. PREPARATION OF PROPOSALS All proposals should be prepared using the following outline: i. Title Page ii. Transmittal Letter iii. Table of Contents, Attachments, etc. iv. Proposal Summary 1. Proposal Outline a) Firm Description -9- DRAFT CCC RFLP 1) Overview of Proposal 2) Details of Ownership of Firm 3) Description of Firm Experience 4) Description of Firm's Project Initiation Experience 5) Information Regarding Pending Litigation 6) Financial Information 7) Personnel b) Technical Proposal 1) General Requirements 2) Solid Waste Service A - Refuse Collection 3) Solid Waste Service B - Refuse Transfer and Disposal 4) Solid Waste Service C - Recycling Collection, Processing & Marketing 5) Solid Waste Service D - Green Waste Collection, Processing and Marketing 6) Implementation 7) Customer Service z. 8) Public Education 9) Billing 10) Hazardous Waste Management C) Financial Proposal 1) Financing Plan 2) Cost Proposal d) Exhibits 2. Proposal Content a) Firm Description 1) Overview State whether the legal entity which would enter into the Agreement is an individual, a partnership, a corporation, or a joint venture. Indicate the number of years the entity has been organized and doing business under this legal structure (if other than an individual). 2) Details of Ownership of Firm i) If you are a corporation (including a Not-for-Profit), -10- DRAFT CCC RFP indicate in which State you are incorporated. Also provide the names and addresses of all: • Officers; • Stockholders owning ten percent (10%) or more of any class of stock in the corporation; and, • Creditors who are owed a debt equal to ten percent (10%) or more of the firm's total assets. ii) Partnership - If you are a partnership, list the names and addresses of all general partners and their percentage ownership. iii) Joint Venture - If you are a joint venture, list the names and addresses of all venturers. If any venturer is a corporation of partnership, provide the information requested in Sections i) and ii) above for each. 3) Description of Firm Experience Each firm must submit a description of relevant experience that qualifies it to perform the services being procured and proposed through this RFP. In describing your firm's experience providing each type of solid waste service, include at least the following information. • The jurisdiction and state where activities were performed. • The type of service that was performed (i.e., refuse collection,refuse transfer and disposal,recyclable materials collection, processing and marketing, green waste collection, processing and marketing). • The type of equipment used. • The dates during which the services were performed. • The name, address and telephone number of the responsible jurisdiction representative. • The number of households or commercial establishments served, tons collected, and number of vehicles dispatched per day, etc. -11- DRAFT CCC RFP 4) Description of Firm's Project Initiation Experience Describe how your firm has handled the specific requirements for: • Procurement of vehicles. ® Hiring of new personnel and utilizing existing personnel. • Training of personnel • Establishing billing and fee collection services. • Determination of routes and operating procedures. A Delivery of refuse, recycling and green waste containers. • Liaison with the community including complaint resolution, public relations and promotion of new programs. i Preparation of procedures and back up equipment to ensure a smooth transition from one company to another and/or one type of service to another. Indicate how your firm will assure an effective, trouble-free, timely start-up of your operation. 5) Information Regarding Pending Litigation List all civil legal actions above $10,000 and all criminal legal actions for the past five years now pending or threatened against the individual or entity identified in answer to Section 2) above. Please provide: • The name of the action; • The court in which it was heard or is pending; • The amount at issue; and, • A brief statement of the current status of all criminal action and all civil actions involving amounts greater than $100,000. If the legal entity identified in Section 2) is a corporation, include in your answer all actions which are pending that involved as a party a current corporate officer or a person who served as an officer within the last two years, which arise from the officer's -12- DRAFT CCC RFP activities on behalf of the corporation. If this legal entity identified in Section 2) is a partnership, include in your answer to this section all legal actions involving individuals partners, which arose from their activities on behalf of the partnership, not otherwise disclosed in your answer. 6) Financial Information Submit audited financial statements including footnotes and auditors opinion letter for your firm for the most recently completed fiscal year. Include a statement by the chief financial officer of your firm that there has been no material adverse change in the Company's condition or operations as reflected in the above balance sheet and income statements since the date on which they were prepared. If your company is a wholly-owned subsidiary of a parent company, also submit audited financial statements, including footnotes and auditors opinion letter for the parent company for the mst recently completed fiscal year. 7) Personnel Provide an organization chart for the company that will provide services to the CCC. Indicate which positions should, in the opinion of your firm, be considered "key" in a procurement of this nature. Provide job descriptions for "key" positions indicating the qualifications and experience of the personnel your firm would assign t this contract and the percentage of time dedicated to work related to the CCC. Provide resumes of the proposed key team members that will fill the described jobs. Your firm must comply with the'prevailing wage guidelines, as described in Article 4 of the draft agreement. It is the CCC's intent to utilize current workforce. Please describe your plans for utilization of the current workforce. b) Technical Proposal 1) General Requirements For each solid waste service for which proposals are submitted, the following information is required: • Collection methodology to be employed (type of equipment, manpower, etc.). • Equipment to be utilized (e.g., vehicle, number, types, -13- DRAFT CCC RF]P capacity, age, etc.). If equipment can be considered non- standard (e.g., dual collection vehicles, alternative fuel vehicles, etc.) you must provide examples of where the proposed equipment is currently being utilized as it is proposed. • The number of routes required per day, and the estimated number of actual stops and drive-bys per route. • Assumptions and basis of each assumption for labor requirements (number of employees by classification (i.e., drivers, helpers, mechanics, etc.). • Types and numbers of containers to be utilized. • Location for equipment and personnel staging. • Arrangements for maintenance of equipment. • Office location for management and franchise administration operations. • Provisions for program publicity, outreach and education. • Estimated annual tons collected. • Billing/Customer Service. 2) Solid Waste Service A - Refuse Collection Refuse collection proposals must include a description of how you propose to provide all of the following services: i) Automated, mandatory, weekly residential refuse collection with 32-gallon containers as the standard size; ii) A method of collection for hard to serve areas, senior citizens and handicapped individuals; iii) On-call bulky waste collections; iv) A minimum of _ annual clean-ups and a description of how the extra vehicle and labor requirements will be handled, (costs should be included in residential cost proposal); v) Commercial and multi-family refuse collection (bin -14- DRAFT CCC RFP service); vi) Industrial collection (Debris box); and vii) Service to City and County facilities (jurisdictions will pay for services). The following information specifically related to residential collection is required: • Description of bulky goods collection, processing and marketing plan which includes the staff and equipment that will be utilized. • Description of annual clean-up collection, processing and marketing plan which includes the staff and equipment that will be utilized. • Method of recovery of reusable or recyclable materials collected during tri-annual clean-ups or as bulky waste. 3) Solid Waste Service B - Refuse Transfer and Disposal Refuse transfer and processing proposals must include a description of how you propose to provide all of the following services: i) Refuse transfer and transport to disposal site; and ii) Refuse disposal. For rate purposes, disposal expense (tipping fee) will be treated as a pass-through expense. The following information specifically related to refuse transfer and disposal.is required: • Statement regarding affiliation to transfer station and disposal facility. • Copies of proposed transfer station and landfill facility permit. • Information on the transfer station including a description of facility operations, tons per day currently processed and available tonnage capacity per day. -15- DRAFT CCC REP • Transfer station and landfill . tonnage commitments/gumantees for the term of the agreement, including price. • Information on the landfill including: remaining capacity and projected years to closure; if closure and post-closure costs are included in the tip fee; if Subtitle D requirements are fulfilled; and any pending litigation against the landfill owner or,management. 4) Solid Waste Service C - Recycling Collection, Processing & Marketing Recycling collection, processing & marketing proposals must include a description of how you propose to provide al of the following services: i) Weekly, mandatory pay, residential curbside recyclable materials collection of the following materials: newspaper, glass, aluminum, PET, HDPE,cardboard, mixed paper and used motor oil; ii) Commercial and multi-family recyclable materials collection, processing, and marketing; iii) Recyclable materials processing and marketing; iv) Recycling drop-off centers; v) Service to City and County facilities (jurisdictions will pay for services). The following information specifically related to recycling collection, processing and marketing is required: • Estimated curbside and drop-off annual tons of recyclable materials that will be collected, processed and marketed. Include basis for assumptions and report curbside drop-off separately. • Estimated annual tons of residual waste that will be disposed, and disposal site. • Name and description of facility(ies) where recyclable materials will be processed, proof of capacity commitment. • Processing methods and procedures. -16- DRAFT CCC RFP • Marketing plan and materials marketing experience. 5) Solid Waste Service D - Green Waste Collection, Processing and Marketing Green waste collection, processing and marketing proposals must include a description of how you propose to provide all of the following services: i) Weekly, mandatory pay, residential curbside green waste collection with 64-gallon containers as the standard size and green waste collection on the same day as refuse collection; ii) Green waste processing and marketing; iii) Christmas Tree recycling; iv) Commercial and multi-family green waste recycling; and V) Service to City and County facilities (jurisdictions will pay for services). The following information specifically related to green waste collection, processing and marketing is required: • Estimated annual tons of green waste that will be collected, processed and marketed at curbside and drop-off. Include basis for assumptions. • Estimated annual tons of residual waste that will be disposed, and disposal site. • Name and description of facility(ies) where green waste will be processed, proof of capacity and processing fee commitment. • Processing methods and procedures including information on how contamination will be controlled. • Description of finished product (i.e., compost, mulch) and customers. • Marketing Plan and green waste marketing experience. 6) Implementation Plan Provide an implementation plan describing your approach to -17- DRAFT CCC RFP facilitating a smooth transition for all services. The proposal must clearly demonstrate that your company has the ability to implement the services on March 1, 1996. This includes delivery of equipment, staffing, etc. The plan should include: i) A PERT chart and accompanying written explanation for complete project implementation including: • Equipment procurement, list of vendors, delivery schedules; • Hiring and training of personnel and utilization of current personnel; • Acquisition of storage and maintenance facilities and administrative offices; • Development and printing of customer relations materials (such as collection schedules, route maps, billing forms, complaint forms, service request forms, etc.); and, • Contingency plan which describes how unforeseen problems will be handled (e.g., back-up vehicles and personnel). ii) Assumptions regarding the CCC jurisdictions' staff participation and, as appropriate, the current haulers participation. iii) A description of an resumes for the transition team members highlighting previous experience in transitioning and start-up of new operations. iv) Methods for handling customer inquiries. V) Announcements and publicity 7) Customer Service Describe your procedures for dealing with customer service issues. Proposals should include information on response times to various types of complaints, changes in service, customer call logs, etc. The companies awarded contracts will need to have a toll-free telephone number available to residents Monday through Friday from 8:30 a.m. till 5:00 p.m. -18- DRAFT CCC RFP 8) Public Education Describe your procedure for public education, identify key personnel who will be directly responsible for public education, and provide examples of jurisdictions in which they have relevant education and outreach experience. The refuse, recycling and green waste haulers will be responsible, subject to CCC review, for all public outreach and education related to their collection programs. 9) Billing Describe your procedure for customer billing and provide examples of jurisdictions in which you have relevant billing experience. The refuse hauler in the zone shall be responsible for all residential billing, including recycling and green waste fees. The refuse hauler will in turn pay the recycling company and green waste hauler. Commercial and industrial accounts will be billed separately for all services. 10) Hazardous Waste Management Describe procedures for identifying and handling hazardous waste disposed with the solid waste stream. Include information on screening procedures, notification plan, and employee training programs. C) Financial Proposal 1) Financing Plan Each firm shall describe its plan for financing its capital requirements (facility, equipment, and capital financing) in a "Sources and Uses of Funds" format and shall .attach such supporting documents that demonstrate its ability t implement the plan. Proposers should provide written documentation (e.g., letters from banks or leasing companies)demonstrating their ability to finance the capital requirements of the zones they are proposing. 2) Cost Proposal Attachment 3 describes how each company should complete its cost proposal and provides forms and worksheets that must be completed in order for your proposal to be considered. -19- DRAFT CCC RIFF d) Exceptions to Proposed Business Terms and Agreement Each proposer must identify any exceptions which it takes to the Draft Franchise Agreement. e) Submission of Proposals 1) Submit_copies(one(1)unbound, camera-ready) of the complete proposal in a sealed package. Included with the proposal should be the following: i) Completed proposal form, signed by an official authorized to bind the proposing firm. ii) Anti-Collusion Affidavit (Attachment 4). iii) EOE Certification (Attachment 5). iv) Notary's Certification (Attachment 6). V) Proposal Fee. All proposers must include a cashier's or certified check in the amount of$5,000 with their proposal. The fee will be refunded to proposers not ultimately selected to enter into a franchise agreement. It will be refunded to the successful proposer once the franchise agreement is executed and all required bonds, insurance and other submittals are completed and approved by the City. vi) Proposal Bond. The company is to furnish a proposal bond within ten (10) calendar days of approval of the service contract by CCC. The proposal bond shall be furnished as surety for performance and completion of the work in accordance with the terms of the RFP and its attachments, the service contract and its attachments, and for the prices contained in the company proposal. The proposal bond must be approved by the CCC and must be a minimum amount of $10,000 for each zone awarded. 2) Label this package: CCC SOLID WASTE PROPOSAL NAME OF PROPOSER ADDRESS CONTACT PERSON TELEPHONE -20- DRAFT CCC RFP All proposals must be received by at 5:00 p.m. Proposals received after this time and date will be returned unopened. Postmarks will not be accepted as proof of receipt. f) CCC Rights and Hold Harmless The background information presented in this RFP is for information purposes only and the proposer agrees to hold the CCC harmless for the accuracy of this data. All proposers should take whatever steps they believe are necessary to reasonably establish the actual number of customers in preparing their proposal. The CCC reserves the right to reject any or all proposals, any part of a proposal, to issue addenda to the RFP, to modify the RFP, or to withdraw the RFP. The proposer must comply fully with the requirements detailed in this document. Required supporting documentation should be included as attachments and should be appropriately identified. Incomplete proposals, proposals containing errors or inconsistencies, failure to submit the proper quantity of copies, or other process or content errors or deficiencies may constitute cause for rejection. The CCC must have the right and your firm must agree to cooperate with the CCC investigation and review of your firm's ability to perform the work required. Such cooperation shall apply not only to the verification of the firm's capability and experience in the provision of services but also to the provision of any other component of work which may be required under this procurement. The CCC reserves the right to retain all proposals submitted and proposals shall become the property of the CCC. The CCC also reserves the right to use any or all ideas presented in any proposal submitted in response to an RFP without charge or limitation. The selection or rejection of a proposal does not affect these rights. The CCC may request clarification or additional information from the proposer at any point in the RFP process and negotiate.with one or more proposers. Information or clarifications will not be accepted after the due date, unless specifically requested by the CCC. Submission of a proposal shall constitute acknowledgment and acceptance of all the terms and conditions contained in this RFP and Draft Franchise Agreement unless exception to particular terms and conditions are expressed in writing in the proposal. Upon acceptance of this proposal, in whole or in part, by the CCC, the company is bound to execute a contract and furnish a performance bond approved by the CCC for performance of the contract in accordance with the Franchise Agreement -21- DRAFT' CCC RFP J and all documents referenced therein, as modified by this proposal, the terms of which are firm for a period of 120 days. -22- ' DRAFT CCC RFP J SECTION TV - PROPOSAL EVALUATION Proposals will be evaluated based on the following factors: Company's QraMcations • General Experience -Demonstrated experience providing similar services to other areas. Experience of key personnel. • Jurisdiction Satisfaction - Satisfaction of company references with services received, including implementation, customer service, billing, payment of fees, reporting, and the handling; of legal and labor issues. • Understanding of Current Conditions-Demonstrated understanding of current conditions in Zone 1 and Zone 2. • Billing Experience- Company experience billing customers. Company experience acting as a billing agent for another hauler or recycling company. • Public :Education - Company's public education experience and adequacy of the company's public education plan. Technical Proposal • Implementation Schedule-Reasonableness of implementation schedule and ability to meet deadlines (i.e., equipment procurement schedules, personnel available, back up plan, notice to customers). • Operations - Reasonableness of assumptions (i.e., number of routes, drivers). • Equipment - Collection methodology used and proven. • Disposal, Processing and Marketing - Realistic plan and guaranteed capacity for refuse disposal, recyclable material and green waste processing and marketing. • Other Technical Services - Provisions for bulky waste collection, annual clean-ups, Christmas tree recycling and hazardous waste management. Exceptions to the Proposal • Exceptions to the RFP - Number and nature of the exceptions and effect upon the CCC ability to evaluate the proposal. • Exceptions to the Draft Franchise Agreement- Number and nature of the exceptions and effect on entering into an agreement. -23- DRAFT CCC RFP Financial Ability • Profitability - Competitiveness of proposed operating ratio. • Financing - Evidence that financing requirements will be fulfilled. Reasonableness of terms. Percentage of owner equity. Proposed collateral against loans. • Financial Stability - Comparison of additional revenue from contract to company's current revenue stream. Vulnerability of company based on its debt-to-equity ratio. Demonstrated ability of company to obtain adequate insurance. Costs • Cost - Reasonableness of costs. Costs as a projection of operational assumptions. • Competitiveness - Cost of service to customers. Cost competitiveness relative to other proposals. VA:tw RIAI:RFP-SWs.dft 2-22-95 -24- • ATTACHM^NT G D: BOARD OF SUPERVISORS ICOM: Sara Hoffman } � Solid WaContra ste Manager ATE:. t . . . •August 6;` 199 r COY 73IIECT: .° Ibplementatibn•of Ordinance 91-1t;-,`Sohid­Waste = Collection, Disposal and,,Recycling=Agreeineits= - .':�a a;. P....7 �+ta• {� �� - .. y krn ix r.z:- }is..-j :a. .,. ?ECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION , f, :COMMENDATIONS :., t - ., . t. Y �., .e '; a.l'e it ,'. a a;. r?., , ` ' „� �'.,, .f- 3r,;.w. r_. ,.:�".ri �:g°4.x a,, ., l�� �t.sr�4 � "z= � o�.� •z••9+ .. ADOP•,Teresolutions granting<transi-t-ional permits-t'b Rid End:tanitaiy service, SAWD,=dba_-Valley Waste Management•, Pleasant H .11 Bayshbre 0i:ip'osa1, Pleasant �Hi1rb.'Bayshrare .<Disposal: Inc*,�, -:Martinez ::Disposal . •5 drind-a,',Mdraga Disposal, ,;;-:Crockett Garbage Company, b Bay View T-Refuse 'and: BACKGROUND/REASONS FOR RECOMMENDATION On June 111 1991, the Board of Supervisors' adopted.°.Ordinance 91=31, ' Solid Waste .,Collection, Disposal .and,,Recycling Agreements. This . ordinance was adopted in .response.eto -:State ,law ..which requires the County ,to develop and implement ,.plans., ,,and' programsy fo.r,the• 'unincorporated� °ar:easr„ta reduce'.waste goihq,`,to the landfill°lby':'25$ by 1995_ and 50$snby;>the: year :2000. .State law provides---'Io r it o.f.up;toy $10.,900 per day ff. the County 'does,::not-'meet these diversion `goals:. • Ordinance 9131 providesMka :mechanism` for<..the County to achieve these State mandates. Recogniiing.`the.=sanitary districts historic role in solid waste collection in the unincorporated areas of the County and the Board's new 'state mandated responsibility, the Board provided a framework under which the sanitary districts could enter into memorandums .of understanding (MOUs;- or agreements with the County for :continued solid waste collection franchising and participation in the recycling effort. Following adoption of the ordinance, the., f Chairto ,the Board `of Supervisors sent Netters to the presidents of each of the a iiff iry districts” inf6ftingtheimi of :?t a `desire `of' 'the "Board to cooperate, with the sanitary districts and - inviting them 'to : inter into discussions with the County. The .Solid Waste. Manager sent a ' similar letter to all of the general managers of the sanitary districts. To date, informal responses have been received from four; districte: Kensington Community services District, Mt . view- Sanitary District, :Rodeo Sanitary District and Central Sanitary District. Staff will be' working with, the.' districts in an effort; ,to develop MOUs'".consistent with the ordinance: 1 j t T •- '+.F. .tt R." ..i. R +" ",Jf,�+. � :.� 'vu.. ...R 3�4 gk.?i-s�19t l c s :. d a5 ,4i •_ a i-.f �'.� -s. l.t,a � . i� - _ ">.4 epi s^3'� r+.� In`addition, discussions have been'"held"'with eac2i'"of 'the `solid .wa"stehaulerson.:.the;:need to, receive franch `ses,` for currently unfranch pdd� un. ncorporated areas and for. those areas 'for. which there is no MOU with,'the currently franchising sanitary district. Most of the haulers serve assmall number of unincorporated area . homes that are not franchised; typically, isolated pockets,aof,:under .�t50f�homes-: >� Thef_,one::exception is Oakley/Brentwood Disposal which sere sF Bethe] r Isl'and,;,and thez,x.unincorporated,,areas -3:of=-oakley and ',Z,iK V SA a ..i:'.E '�°:. k A To allow timebfor-rthe ttnitaryr',districts<;to-:consider. the. MOU,;option, and: to provide for ,continued uninterrupted service 1 :-'h 1! e Iunincorpor3ted areas,• it will,;be ,necessary, for 1the.Board :ofA¢Supervis,orsN<t0 f ssue}trans# tional permits to the;;:;'locals=a:haule.rs „and f franchising:. sanitary- di'striets -`as provided in Ordinance• :91-31. The• transitional permits wouldi be effective':from August 11 through December .3l�: 1991 and y,require :,each�hauler�� .to. certify that- recycling services are. avaiiable� ':to:w through curbside;,service v.m,-,thee-,,urbanized :ar`ease=andvcdrop' off 'in the"'Tural`'areas no later ;,than September 3'0, ,•::1991: .: It;.sehould .:be .noted shat the: ';haulers are currently.,providingrt-curbside::recycling..:servi:ces';=in,*.most,'.area's. ..�\_ ,v i..,. Ordinan...ce 91-~31 establishes parameters for the MOUs, including control of the wastestreaza :and'<;,:recyclables •beingi-xetained-%by the Board of Supervisors. Wastestream..,control, is.-very, important=-,since waste will ,no`.-longer go -directly to landfills;but'.ao ,material,,recoverylyfacilitiew:whicli' will=perform: recycling activities.: The :; local haulers ;currently. control;,"vastestreaml in all unincorporated areas except those currently franchised by-'Contra -Costa County and .Central Sanitary District.';-.Under' State-.law, . the aiaul'ers' may'voluntarily assign?;their�.wastertre"am-control toatheicounty->o �the Comity can obtain it` in accordance. with Public" ^Resource Code, Chapter 6, Section 49520 by giving a ffve.;::year `'notfce to the hauler of the County's intent to authorize solid waste collection services, including recycling. x 7"R} C- R7 �• i. •e t'4u iLsti Rp<'p fi Ld rrG'n f y'i m...rf6.�,�,'y�s �:k ti Irf ..�.. . � with the�` .. �,.•;�..• In•'accords ce ,:Board's' deciaratioh of -intent, to allow the current providers, of service ii ,-the'-•Unincorporated, area to continue providing such services for at.14m `ttl`ie`'term ofgthdir cuitentxf=anchf des with the sanitary districts .3f the1: Cou"t' r- ,•attempts` to-�'tiegoti7ate•-,MOUd with, ,.the sanitary districts are :not successful, the _five year,notice:::providdd.Ahat:,it`.becomes P411 and void,wif an Mou"'I operative on the effective date_of the:notfce, or if the local haulers have an executed franchise agreement with the County by December 31 ; 1991. tea= j. R v vMTs VIEW SANITARY BISTRICT SERVING CONTRA COSTA COUNTY SINCE 1923 SAKITART DISTRICT MARTINEZ, FO MED 1'23 February 24, 1995 ayle Bishop, Chair Contra Costa County Board of Supervisors County Administration Building 651 Pine Street, Room 106 BOARD OF DIRECTORS Martinez, CA 94553 STANLEY R.CALDWELL RE: Board MeetingFebruary 28 1995 ARTHUR J.CASTRO uy ERNEST D.PASLEY AGENDA ITEM #2 .4 (d) GREGORY T.PYKA Garbage Collection DOROTHY M.SAKAZAKI Mt . View Sanitary District Rodeo Sanitary District DAVID CONTRERAS DISTRICT MANAGER SHERIL.GADD Dear Chairperson and Supervisors : SECRETARY On behalf of the Board of Directors of the Mt . View Sanitary DAVID J.LEVY District it is respectfully requested that the above item ATTORNEY presently listed as a determination item be removed from the calendar in order that it may be continued to allow the RANDOLPH W.LEPTIEN directors to review the available reports and recommendations ENGINEER of the county staff . The District ' s management and Board have not been a party to any recent negotiations affecting garbage collection in the district . It is requested that District representatives be given the opportunity to speak on this matter at this time, or in the alternative, that you continue the matter at least 30 days to allow reasonable review on our part . Sincerely, MT. VIEW SANITARY DISTRICT David R. Contreras District Manager cc : Jim Rogers, Supervisor Jeff Smith, Supervisor Mark DeSaulnier, Supervisor RECEIVED Tom Torlakson, Supervisor Phil Batchelor, Clerk of the Board FEB 2 41995 CLERK CONTRA COS A CO.�SORS P.O. BOX 2757 MARTINEZ, CA. 94553 PHONE (510) 228-5635 OFFICE LOCATION AT END OF ARTHUR ROAD CoajI4. U;d,-*,-. �, V1��► MTe VIEW SANITARY BISTRICT SERVING CONTRA COSTA COUNTY SINCE 1923 SANITARY DISTRICT MARTINEZ, E19 3oMD February 24,' 1995 ayle)Bishop, Chair Contra Costa County Board of Supervisors County Administration Building 651 Pine Street, Room 106 Martinez, CA 94553 BOARD OF DIRECTORS STANLEY R.CALDWELL RE: Board Meeting February 28, 1995 ARTHUR J.PASTRY ERNEST D.PASLEY AGENDA ITEM #2 .4 (d) GREGORY T.PYKA Garbage Collection DOROTHY K SAKAZAKI Mt. View Sanitary District Rodeo Sanitary District DAVID CONTRERAS DISTRICT MANAGER SHERILGADD Dear Chairperson and Supervisors: SECRETARY On behalf of the Board of Directors of the Mt . View Sanitary DAVID J.LEVY District it is respectfully requested that the above item ATTORNEY presently listed as a determination item be removed from the calendar in order that it may be continued to allow the RANDOLPH W.LEPTIEN directors to review the available reports and recommendations ENGINEER of the county staff . The District ' s management and Board have not been a party to any recent negotiations affecting garbage collection in the district . It is requested that District representatives be given the opportunity to speak on this matter at this time, or in the alternative, that you continue the matter at least 30 days to allow reasonable review on our part . Sincerely, MT. VIEW SANITARY DISTRICT David R. Contreras District Manager cc: Jim Rogers, Supervisor '010 Jeff Smith, Supervisor Mark DeSaulnier, Supervisor RECEIVED Tom Torlakson, Supervisor Phil Batchelor, Clerk of the Board FEB 2 41995 CLERKSUPERVISORS CONTRA COSTA CO. P.O. BOX 2757 MARTINEZ, CA. 94553 PHONE (510) 228-5635 OFFICE LOCATION AT END OF ARTHUR ROAD LAW OFFICES OF GAGEN, MCCOY, MCMAHON & ARMSTRONG WILLIAM E. GAGEN, JR. A PROFESSIONAL CORPORATION DANVILLE OFFICE GREGOR" L. MCCOY 279 FRONT STREET PATRICK J. MCMAHON P- O- BOX 218 MARK L. ARMSTRONG DANVILLE, CALIFORNIA 94526-0218 LINN K. COOMBS TELEPHONE: 15101 837-0585 STEPHEN W. THOMAS FAX: (510) 838-5985 CHARLES A. KOSS MICHAEL J. MARKOWITZ NAPA OFFICE MICHAEL W. CARTER 1001SECOND STREET, SUITE 31S RICHARD C. RAINES NAPA, CALIFORNIA 94559-3017 VICTOR J. CONTI TELEPHONE: (707) 224-8398 BARBARA DUVAL JEWELL ROBERT M. FANUCCI February 27 1995 A (707) 224-$817 ALLAN C. MOORE PLEASE SE REPLY TO: PATRICIA E. CURTIN CAROLE A. LAW ALEXANDER L. SCHMID MICHAEL P. CANDELA Danville CHARLES A. KLINGE OF COUNSEL STEPHEN T. BUEHL Lillian Fujii Deputy County Counsel Office of County Counsel Contra Costa Counsel 651 Pine Street, N. Wing, 9th Floor Martinez, CA 94553 Re: Garaventa Enterprises Franchi Agreemen Dear Lillian: Our office picked up a copy of the draft franchise agreement for the Garaventa Franchise Area when it became available Friday afternoon. I reviewed it with my cl/ient. We understand that its adoption is to be considered by the Board of Supervisors tomorrow under Determination Item 2 . 4 (c) . The draft is generally acceptable to my client. We would suggest the following minor changes and clarifications: 1. In Section 1. EFFECTIVE DATE, PARTIES, on page 1, the Oodclification be changed to read .as follows: ent is binding between the County elow named Contractor and is n the date last signed by the eto. ion will avoid potential confusion with different execution and effective dates in the Agreement. 2 . In Section 2 .e. DEFINITIONS, CONTRACTOR, on page 1, insert "Garaventa Enterprises, a California-Corporation" in the blank to identify the Contractor and Signatory under this Agreement. Silvio Garaventa, Sr. and Mary C. Garaventa own 1000 of the stock in Garaventa Enterprises. 3 . In Section 2 . i. DEFINITIONS, FRANCHISE AREA, on pages 1-2 , the Franchise Area is identified as a geographic area generally described in Exhibit A to this Agreement. Exhibit Ms. Lillian Fujii February 27 , 1995 Page 2 A is to be prepared based on a 600 scale map (600' to the inch) . My client does not have maps with that scale. The map should be prepared by the Community Development Department and then attached to this Franchise Agreement prior to its execution. The Board Order approving the adoption of the Garaventa Franchise Agreement should reflect that the geographic area will consist of the following: 1) far East County (which includes Discovery Bay) ; 2) an unincorporated area in North East Antioch as depicted in previous staff reports; 3) an unincorporated area in North Concord as depicted in previous staff reports; and 4) an unincorporated area in Bay Point, the precise location of which should be finally determined by the Board as a result of its action on Determination Item 2 .4 (a) . 4 . In section 30. ASSIGNABILITY, on page 15, the following paragraph should be added to reflect the fact that continued service to regions within the Garaventa Franchise Area may be provided by Silvio Garaventa, Sr. as a sole proprietorship or by corporations which are 100% owned and controlled by Silvio Garaventa, Sr. and Mary Garaventa: It is understood and agreed by the parties that corporations (e.g. , Pittsburg Disposal Company, sole proprietorships [e.g. , Oakley Disposal Company] , and partnerships that are 100% owned by the shareholders of Garaventa Enterprises) may presently and in the future perform the obligations and responsibilities of the Contractor in the regions of the Franchise Area. Performance of the obligations and responsibilities of the Contractor by such companies shall not require an assignment under this section. This provision should be added before the last paragraph in section 30. 5. Section 46. OPERATIVE DATE, on page 21, should be changed to read as follows: This Agreement becomes operative on the effective date in section 1, except for the North Concord region depicted on Exhibit A. The effective date for the North Concord region shall be March 31, 1996. COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ,CALIFORNIA Date: February 24;, 1995 To: Members, Board of Supervisors From: Victor J. Westman, County Counsel By: Lillian T. Fujii, Deputy County Counsel Re: MODEL FRANCHISE AGREEMENTS (Solid Waste Collection); February 28, 1995 Board Meeting; Determination Item No. 2.4 Included in the Boards packet in connection with Determination Item No. 2.4 is a document identified as "Attachment A, Draft Franchise Agreement for BFI and Garaventa Franchise Areas," "Model Franchise Agreement." The agreement, if utilized and approved, would grant a 20 year solid waste collection franchise to the involved collector. If the substantive provisions of the agreement are acceptable to the Board, a determination must be made as to the specific terri to be covered by each franchise. In addition, the following matters may be of interest to the Board. Rates. The Model Franchise Agreement gives the Board broad discretion to determine the rate-setting methodology. So as to avoid argument that rates cannot be lowered absent a rate review, the agreement states that rates established by the County are maximum rates only, and that nothing in the agreement prevents the contractor from charging lower rates. Absent establishment of a rate by the Board, the agreement states that the rate shall be the rate charged on the effective date of the agreement. The effective date of the agreement is the,_d,4te..of Board approval assuming that the terms are agreeable to the contractor. Operative Date. The operative date is August 5, 1996 (which, based upon the documents available to this office, is the date the Board's five-year notice to collector's will expire) or such earlier date as the parties may agree to or the Board otherwise directs. cc: Val Alexeeff, Director, GMEDA 17a:\frnbd224.95 oz COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ,CALIFORNIA Date: February 27, 1995 To: Members, Board of Supervisors From: Victor J. Westman, County Counsel By: Lillian T. Fujii, Deputy County Counsel Re: Model Franchise Agreement, (Solid Waste Collection); February 28, 1995 Board Meeting; Determination Item No. 2.4 As directed, this office had prepared the subject Agreement, which is included in the Board's packet in connection with Determination Item No. 2.4 as "Attachment A, Draft Franchise Agreement for BFI and Garaventa Franchise Areas," "Model Franchise Agreement." Neither staff s Report to the Board, nor this office's February 24, 1995 memorandum to the Board point out that in lieu of the usual traditional franchise fee authority retained by local agencies (e.g., cities, sanitary districts, etc.), the draft would limit the County to a percentage fee for franchise agreement administration and funding of'solid waste programs. (See section 23, page 12.) The Board members may wish to consider alternate language which would preserve the ability of the Board to establish traditional franchise fees in the future, irrespective of whether the Board intends to impose a franchise fee at this time or ever does so in the future. For this reason, we have prepared the following language for the Board's consideration and use in lieu of the draft's section 23: "23. ADMINISTRATIVE SERVICES AND FRANCHISE FEES. Contractor shall pay to the County fors he services provided by the County in administering this Agreement, for services and programs pertaining to Solid Waste., WE a percentage of its gross annual revenues generated from the performance of such waste collection services under this Agreement. Such percentage, time and frequency of payment shall be established by County from time to time. Said sums shall be payable from the Contractor to the County upon the inclusion of the administrative service charge and fees in the allowed rate and upon the collection of said rate by the Contractor." cc via Facsimile: Val Alexeeff, Thomas M. Bruen, Mark Armstrong 17a:\frnbd22.795 oz COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ,CALIFORNIA Date: February 27, 1995 To: Members, Board of Supervisors From: Victor J. Westman, County Counsel By: Lillian T. Fujii, Deputy County Counsel Re: Model Franchise Agreement, (Solid Waste Collection); February 28, 1995 Board Meeting; Determination Item No. 2.4 As directed, this office had prepared the subject Agreement, which is included in the Board's packet in. connection with Determination Item No. 2.4 as "Attachment A, Draft Franchise Agreement for BFI and Garaventa Franchise Areas," "Model Franchise Agreement." Neither staffs Report to the Board, nor this office's February 24, 1995 memorandum to the Board point out that in lieu of the usual traditional franchise fee authority retained by local agencies (e.g., cities, sanitary districts, etc.), the draft would limit the County to a percentage fee for franchise agreement administration and funding of solid waste programs. (See section 23, page 12.) The Board members may wish to consider alternate language which would preserve the ability of the Board to establish traditional franchise fees in the future, irrespective of whether the Board intends to impose a franchise fee at this time or ever does so in the future. For this reason, we have prepared the following language for the Board's consideration and use in lieu of the draft's section 23: "23. ADMINISTRATIVE SERVICES AND FRANCHISE FEES. Contractor shall pay to the County fort / he services provided by the County in administering this Agreement, for services and programs pertaining to Solid Waste, OWN, ��� a percentage of its gross annual revenues generated �.���� �.�� P g g'Y' from the performance of such waste collection services under this Agreement. Such percentage, time and frequency of payment shall be established by County from time to time. Said sums shall be payable from the Contractor to the County upon the inclusion of the administrative service charge and fees in the allowed rate and upon the collection of said rate by the Contractor." cc via Facsimile: Val Alexeeff, Thomas M. Bruen, Mark Armstrong 17a:\frnbd22.795 COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ,CALIFORNIA Date: February 24, 1995 To: Members, Board of Supervisors From: Victor J. West:man, County Counsel By: Lillian T. Fujii, Deputy County Counsel Re: MODEL FRANCHISE AGREEMENTS (Solid Waste Collection); February 28, 1.995 Board Meeting; Determination Item No. 2.4 Included in the Boards packet in connection with Determination Item No. 2.4 is a document identified as "Attachment A, Draft Franchise Agreement for BFI and Garaventa Franchise Areas," "Model Franchise Agreement." The agreement, if utilized and approved, would grant a 20 year solid waste collection franchise to the involved collector. If the substantive provisions of the agreement are acceptable to the Board, a determination must be made as to the specific terri to be covered by each franchise. In addition, the following matters may be of interest to the Board. Rates. The Model Franchise Agreement gives the Board broad discretion to determine the rate-setting methodology. So as to avoid argument that rates cannot be lowered absent a rate review, the agreement states that rates established by the County are maximum rates only, and that nothing in the agreement prevents the contractor from charging lower rates. Absent establishment of a rate by the Board, the agreement states that the rate shall be the rate charged on the effective date of the agreement. The effective date of the agreement is the-date,of Board approval assuming that the terms are agreeable to the contractor. Operative Date. The operative date is August 5, 1996 (which, based upon the documents available to this office, is the date the Board's five-year notice to collector's will expire) or such earlier date as the parties may agree to or the Board otherwise directs. cc: Val Alexeeff, Director, GMEDA 17a:\frnbd224.95 Ms. Lillian Fujii February 27 , 1995 Page 3 This change will avoid any confusion between the effective date and the operative date for the franchise. An exception is made for the North Concord area to avoid any need for the County to negotiate any agreement with Central Contra Costa Sanitary District, which contends it has a franchise agreement with Browning Ferris Industries for that area which will expire by its own terms on March 31, 1996. My client, and I believe the County, dispute that BFI has a valid franchise in the North Concord area. However, since Mr. Garaventa presently provides 100% of the service to that area, has done so for many years, and anticipates doing so even without a franchise for the next year, he has no objection to operating under the status quo until the alleged BFI franchise with CCCSD expires by its own terms. In that way, a negotiated North Concord agreement between CCCSD and the County, referred to last week by Sue Rainey and mentioned in previous correspondence from CCCSD to the County, will not be necessary. 6. The signatory page should include a date next to the signatory block for the Chair of the Board of Supervisors. It should also include a signatory block for . Garaventa Enterprises by Silvio Garaventa, Sr. , its President, with a date. 7 . My client has no objection to the language changes to section 23 . ADMINISTRATIVE SERVICES BY COUNTY, on page 12, as suggested in your memo of today's date to the Board. We would suggest an additional sentence at the end of the paragraph as follows: Administrative and program services and any franchise fees shall be considered a reasonable cost or "pass-through" as described in section 8 on rates. That is traditional and we understand it is the intent of the County to allow such fees and charges as a pass-through. Please let me know if these changes are acceptable to County Counsel. Please distribute copies of this letter and discuss these changes with the Board when Determination Item 2 . 4 (c) comes up for consideration. If these changes are acceptable to the Board and it wants to " move forward in a timely manner to complete the Garaventa Franchise Agreement, then it would seem appropriate for the Board to: 1) approve the Garaventa Enterprises Franchise Agreement; 2) direct the Community Development Department to complete the Franchise Area map, Exhibit A; 3) direct County Ms. Lillian Fujii February 27 , 1995 Page 4 Counsel to incorporate the foregoing changes into the final Franchise Agreement; and 4) authorize the Chair of the Board of Supervisors to execute this Agreement immediately upon its completion. Upon execution of this Franchise Agreement, then the previous franchise agreements between the County and Garaventa companies will be superseded. We understand that the maximum rate that may be charged to any of the residential customers within the Franchise Area by Garaventa Enterprises. will be the current rates for those customers. In other words, the current rates will be the maximum rates absent a rate adjustment. Under this new Franchise Agreement, Garaventa Enterprises may charge less than the maximum rate. Therefore, for the record Garaventa Enterprises wants to reconfirm that it will immediately institute a, retroactive residential rate reduction back to January 1, 1995 of two dollars per month once this Agreement has been fully executed. For the record, and to reconfirm what Supervisor Torlakson said he understood at the last meeting, Garaventa Enterprises will continue to charge the few BFI customers in the Bay Point region to now be served by Garaventa Enterprises the rate they are presently being charged, unless and until the residential rates in the Franchise Area go lower. As discussed previously, a further reduction of two dollars per month on the residential rate is contemplated once the Recycling Center and Transfer Station in Pittsburg becomes operational (assuming that there are no unanticipated fees and exactions imposed by the City of Pittsburg on the Recycling Center and Transfer Station as part of its approval that would inhibit such a reduction) . Thank you for your consideration of this matter. We look forward to answering any questions from the Board or staff at the hearing on this item tomorrow. y,,., .... Ve tru y yours, Mai L. Armstrong MLA:kh cc: Silvio Garaventa, Sr. is\vo12\dient\5792\Fujii.Itr Date: REQUESTTO SPEAK FORM (Two [2] Minute Limit) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. Name: 5) ��" Phone: Address: City: p r I am speaking for: ❑ Myself OR ❑ Organization: (!_ N t\—WA-,,m (� NAME OF ORGANIZATION CHECK ONE: ❑ I wish to speak on Agenda Item # My comments will be: ❑ General ❑ For ❑ Against ❑ I wish to speak on the subject of: ❑ I do not wish to speak but leave these comments for the Board to consider: Date:g �- ✓ REQUEST To SPEAK FORM (Two [2] Minute Limit) 0 Complete this form and place it in the box near the speakers' rostrum before addressing the Board. Name:!4Phone:02�)-?— S� / Address: City: I am speaking for: ❑ Myself OR fo Organization: W. (/� "_va� NAME OF ORGANIZATION CHECK ONE: 0I,wish to speak on Agenda Item # My comments will be: ❑ General ❑ For ❑ Against ❑ I wish to speak on the subject of: ❑ I do not wish to speak but leave these comments for the Board to consider: Date: REQUEST TO SPEAK{ FORM (Two [2] Minute Limit) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. Name: G 4i� �� Phone: a!1-/767 Address: V/ 6W 111 1 City: 89z6W6 _ I am speaking for: ❑ Myself OR T11 Organization: NAME OF ORGANIZATION CHECK ONE: Irl wish to speak on Agenda ItemU#�., My comments will be: [] General ❑ For ❑ Against ❑ I wish to speak on the subject of: ❑ I do not wish,to speak but leave these comments for the Board to consider: Date: REQUEST TO SPEAK FORm (Two [2] Minute Limit) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. Name: A �bL�v�-� /� L f7 i+ ) Phone: Address: all? w 9�C e /?o City: _ Lq() Q�� I am speaking for: !u! NTyself OR ❑ Organization: J NAME OF A TION CHECK ONE: ❑ I wish to speak on Agenda Item # My comments will be: ❑ General ❑ For V�T Against ❑ I wish to speak on the subject of: CCS Saucy Wa `k 0 I do not wish to speak but leave these comments for the Board to consider: Date: EQUEST TO SPEAK FORM (Two [2] Minute Limit) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. Name: ( or,1N- Phone: V- Address: eQ Q-+ __ City: Q �� I am speaking for: ❑ Myself OR ❑ Organization: C--r.�,r NAME OF ORGANIZATION CHECK ONE: ,E-I wish to speak on Agenda Item # 0� My comments will be: ❑ General ❑ Fc i i ❑ I wish to speak on the subject of: ❑ I do not wish to speak but leave these comment-ss-tbF the Board-toconsider: Date: REQUEST TO SPEAK FOAM (Two [2] Minute Limit) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. Name: �� Z'k �21�6, ^� Phone: Address: �y� /U �' n' 'z-� City: �,te1kris c�) I am speaking for: ❑ Myself OR Organization: r-- NAME OF ORGANIZATION CHECK ONE: / (-i.wish to speak on Agenda Item # � Z- 7 My comments will be: kGeneral ❑ For ❑ Against ❑ I wish to speak on the subject of: ❑ I do not wish to speak but leave these comments for.the Board to consider: Date: REQUEST TO SPEAK FORM (Two [2] Minute Limit) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. Name: e7z-V Phone: 73j - u/ OrA Address: 1 a ►IV 0,n4 i=o znv,'A , �%o �D City: I am speaking for: ❑ Myself OR [9 Organization: Faw&—o S A-d i z Alz STR c c 7- NAME NAME OF ORGANVATION CHECK ONE: I wish to speak on Agenda Item My comments will be: ❑ General ❑ For Against I wish to speak on the subject of: � �S F,9 CIARQA6 COB- C- 0 ❑ I do not wish to speak but leave these comments for the Board to consider: Date: ?V— REQUEST TO SPEAK FORM (Two [2] Minute Limit) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. Name: �, t/ 1 D L Phone: 934/- 4o 6 g.Z Address:Rf 21 , Ah (XLt F C)R4t A /V/0 City: W I am speaking for: ❑ Myself OR Organization: M V1 CIA/ S AIJ J TA O2 NAME OF ORGANIZATION CHECK ONE: ❑ 1 wish to speak on Agenda Item # A7• G� . My comments will be: ❑ General ❑ For V Against I wish to speak on the subject of: 1'' l Cat i-C'G t nJ ❑ I do not wish to speak but leave these comments for the Board to consider: LAW OFFICES OF GAGEN, MCCOY, MCMAHON & ARMSTRONG WILLIAM E. GAGEN, JR. A PROFESSIONAL CORPORATION DANVILLE OFFICE GREGORv L. MCCOY 279 FRONT STREET PATRICK J. MCMAHON P. 0. BOX 218 MARK L. ARMSTRONG DANVILLE, CALIFORNIA 94526-0218 LINN K. COOMBS TELEPHONE: (510) 837-0585 STEPHEN W. THOMAS FAX: (510) 838-5985 CHARLF-S A. KOSS MICHAEL J. MARKOWITZ NAPA OFFICE MICHAEL W. CARTER RICHARD C. RAINES 1001 SECOND STREET, SUITE 315 VICTOR J. CON71 NAPA, CALIFORNIA 94559-3017 TELEPHONE: (707) 224-8396 BARBARA DUVAL JEWELL ROBERT M. FANUCCI - February 27, 1995 FAX: (707) 224-5817 ALLAN C. MOORS PATRICIA E. CURTIN PLEASE REPLY TO: CAROLS A. LAW ALEXANDER L. SCHMID MICHAEL P. CANDELA CHARLES A. KLINGE Danville OF COUNSEL STEPHEN T. BUEHL Lillian Fujii Deputy County Counsel Office of County Counsel Contra Costa Counsel, 651 Pine Street, N. Wing, 9th Floor Martinez, CA 94553 Re: Garaventa Enterprises Franchise Agreement Dear Lillian: Our office picked up a copy of the draft franchise agreement for the Garaventa Franchise Area when it became available Friday afternoon. I reviewed it with my client. We understand that its adoption is to be considered by the Board of Supervisors tomorrow under Determination Item 2 .4 (c) . The draft is generally acceptable to my client. We would suggest the , following minor changes and clarifications: 1. In Section 1. EFFECTIVE DATE, PARTIES, on page 1, the sentence should be changed to read as follows: This Agreement. is binding between the County and the below named Contractor and is effective on the date last signed by the parties hereto. This modification will avoid potential confusion with different execution and effective dates in the Agreement. 2 . In Section 2 .e. DEFINITIONS, CONTRACTOR, on page 1, insert "Garaventa Enterprises, a California Corporation" in the blank to identify the Contractor and Signatory under this Agreement. Silvio Garaventa, Sr. and Mary C. Garaventa .own 100% of the stock in Garaventa Enterprises. 3 . In Section 2 . i. DEFINITIONS, FRANCHISE AREA, on pages 1-2 , the Franchise Area . is identified as a geographic area generally described in Exhibit A to this Agreement. Exhibit Ms. Lillian Fujii February 27, 1995 Page 2 A is to be prepared based on a 600 scale map (6001 to the inch) . My client does not have maps with that scale. The map should be prepared by the Community Development Department and then attached to this Franchise Agreement prior to its execution. The Board Order approving the adoption of the Garaventa Franchise Agreement should reflect that the geographic area will consist of the following: 1) far East County (which includes Discovery Bay) ; 2) an unincorporated area in North East Antioch as depicted in previous staff reports; 3) an unincorporated area in North Concord as depicted in previous staff reports; and 4) an unincorporated area .in Bay Point, the precise location of which should be finally determined by the Board as a result of its action on Determination Item 2 .4 (a) . 4. In section 30. ASSIGNABILITY, on page 15, the following paragraph should be added to reflect the fact that continued service to regions within the Garaventa Franchise Area may be provided by Silvio Garaventa, Sr. as a sole proprietorship or by corporations which are 100% owned and controlled by Silvio Garaventa, Sr. and Mary Garaventa: It is understood and agreed by the parties that corporations (e.g. , Pittsburg Disposal Company, sole proprietorships [e.g. , Oakley Disposal Company] , and partnerships that are 100% owned by the shareholders of Garaventa Enterprises) may presently and in the future perform the obligations and responsibilities of the Contractor in the regions of the Franchise Area. Performance of the obligations and responsibilities of the Contractor by such companies shall not require an assignment under this section. This provision should be added before the last paragraph in section 30. 5. Section 46. OPERATIVE DATE, on page 21, should be changed to read as follows: This Agreement becomes operative on the effective date in section 1, except for the Norah Concord region depicted on Exhibit A. The effective date for the North Concord region shall be March 31, 1996. Ms. Lillian Fuj11 February 27, 1995 Page 3 This change will avoid any confusion between the effective date and the operative date for the franchise. An exception is made for the North Concord area to avoid any need for the County to negotiate any agreement with Central Contra Costa Sanitary District, which contends it has a franchise agreement with Browning Ferris Industries for that area which will expire by its own terms on March 31, 1996. My client, and I believe the County, dispute that BFI has a valid franchise in the North Concord area. However, since Mr. Garaventa presently provides 100% of the service to that area, has done so for many years, and anticipates doing so even without a franchise for the next year, he has no objection to operating under the status quo until the alleged BFI franchise with CCCSD expires by its own terms. In that way, a negotiated North Concord agreement between CCCSD and the County, referred to last week by Sue Rainey and mentioned in previous correspondence from CCCSD to the County, will not be necessary. 6. The signatory page should include a date next to the signatory block for the Chair of the Board of Supervisors. It should also include a signatory block for Garaventa Enterprises__ by -. Silvio Garaventa, Sr. , its President, with a date. 7 . My client has no objection to the language changes to section 23 . ADMINISTRATIVE SERVICES BY COUNTY, on page 12 , as suggested in your memo of today's date to the Board. We would suggest an additional sentence at the end of the paragraph as follows: Administrative and program services and any franchise fees shall be considered a reasonable cost or "pass-through" as described in section 8 on rates. That is traditional and we understand it is the intent of the County to allow such fees and charges as a pass-through. Please let me know if these changes are acceptable to County Counsel. Please distribute copies of this letter and discuss these changes with the Board when Determination Item 2 . 4 (c) comes up for consideration. If these changes are acceptable to the Board and it wants to move forward in a timely manner to complete the Garaventa Franchise Agreement, then it would seem appropriate for the Board to: 1) approve the Garaventa Enterprises Franchise Agreement; 2) direct the Community Development Department to complete the Franchise Area map, Exhibit A; 3) direct County Ms. Lillian Fujii February 27, 1995 Page 4 'Counsel to incorporate the foregoing changes into the final Franchise Agreement; and 4) authorize the Chair of the Board of Supervisors to execute this Agreement immediately upon its completion. Upon execution of this Franchise Agreement, then the previous franchise agreements between the County and Garaventa companies will be superseded. We understand that the maximum rate that may be charged to any of the residential customers within the Franchise Area by Garaventa Enterprises will be the current rates for those customers. In other words, the current rates will be the maximum rates absent a rate adjustment. Under this new Franchise Agreement, Garaventa Enterprises may charge less than the maximum rate. Therefore, for the record Garaventa Enterprises wants to reconfirm that it will immediately institute a retroactive residential rate reduction back to January 1, 1995 of two dollars per month once this Agreement has been fully executed. For the record, and to reconfirm what Supervisor Torlakson said he understood at the last meeting, Garaventa Enterprises will continue to charge the few BFI customers in the Bay Point region to now be served by Garaventa Enterprises the rate they are presently being charged, unless and until the residential rates in the Franchise Area go lower. As discussed previously, a further reduction of two dollars per month on the residential rate is contemplated 'once the Recycling Center and Transfer Station in Pittsburg becomes operational (assuming that there are no unanticipated fees and exactions imposed by the City of Pittsburg on the Recycling Center and Transfer Station as part of its approval that would inhibit such a reduction) . Thank you for your consideration of this matter. We look forward to answering any questions from the Board or staff at the hearing on this item tomorrow. :v V y yours, a L. Armstrong MLA:kh cc: Silvio Garaventa, Sr. is\volt\client\25792\Fuj iHtr (� A W N /••1 O OD -1 a, U A W N M J T•60) `r O 60q W Q > 0000 00 _O ,� '-300000000 N o `< O O O O ? O O O R O D O O PI CD CD cC��D CD O rO� `y CD C9 CD (D CD N N N rte. /ro W � r+ �* �• wNNNNNNNN �' 00 0 o n 1•� �, �, 0 0- 0— 0 10 0 0o 1 i 1 1 � f9 r p 0 0 0 0 0 0 0 0 o tri as --• -• c.n � �' ry o � .�' �' �' �' �' �' � g a. � n n n '• N `� X G � o 0 0 0 0 0 0 0 0 $ 0, 0 0•ti ►0 0 0, 0 0, CD 0, 0 u� O c CD cD Do JQ OQ cm CN a Q, CSD` + + + + p + + + o O ojww . 0 � 00 �• 00 � — ". o p Y w � wwE3 O �; ... OO �,' � p N NN �- NNN ►-. CpQ� all, vsP3 ►.. CD CD OQ CD CD � � (D 3• 0 U CD CDooyo oyoo ayoo• (IQ aoyo ..1 O Oo 69 �. v Lh tA �. G. a �• c"s CCPD ti C) ►CDS < O co U C �. N CSD C~D c �•CD 2 o Fnc� `y N 64n �s cn o ►C»s CD CD 0 00 �q �+ 11 . a• -h ,.y• .y Mme.. � H--. �V C1 �• �. n 0 60 LA i+ C o xbf7 n Cy �p p' 1•M C C ,�0, O 0. bQ c�D P� ate_ rjQ tA y �^ o � �. .•, TT TNaT�77H^VTTV LAW OFFICES OF GAGEN, MCCOY, MCMAHON & ARMSTRONG WILLIAM E. GAGEN, JR. A PROFESSIONAL CORPORATION DANVILLE OFFICE GREGOR' L. MCCOY 279 FRONT STREET PATRICK J. MCMAHON P. O. BOX 21$ MARK L. ARMSTRONG DANVILLE, CALIFORNIA 94526-0218 LINN K. COOMBS TELEPHONE: (510) $37-0585 STEPHEN W. THOMAS FAX: (SIO! 838-5985 CHARLES A. KOSS MICHAEL J. MARKOWITZ NAPA OFFICE MICHAEL W. CARTER RICHARD C. RAIN ES 1001 SECOND STREET, SUITE 315 NAPA, CALIFORNIA 94559-3017 VICTOR J. CONTI TELEPHONE: (707) 224-8396 BARBARA DUVAL JEWELL ROBERT M. FANUCCI February 27, 1995 FAX: (7071 224-5817 ALLAN C. MOORE PLEASE REPLY TO: PATRICIA E. CURTIN , CAROL-E A. LAW ALEXANDER L. SCHMID _ MICHAEL P. CANDELA CHARLES A. KLINGE Danville Of COUNSEL STEPHEN T. BUEHL Lillian Fujii Deputy County Counsel Office of County Counsel Contra Costa Counsel 651 Pine Street, N. Wing, 9th Floor Martinez, CA 94553 Re: Garaventa Enterprises Franchise Agreement Dear Lillian: Our office picked up a copy of the draft franchise agreement for the Garaventa Franchise Area when it became available Friday afternoon. I reviewed it with my client. We understand that its adoption is to be considered by the Board of Supervisors tomorrow under Determination Item 2 . 4 (c) . The draft is generally acceptable to my client. We would suggest the following minor changes and clarifications: 1. In Section 1. EFFECTIVE DATE, PARTIES, on page 1, the sentence should be changed to read .as follows: This Agreement is binding between the County and the below named Contractor and is effective on the date last signed by the parties hereto. This modification will avoid potential confusion with different execution and effective dates in the Agreement. 2 . In Section 2 . e. DEFINITIONS, CONTRACTOR, on page 1, insert "Garaventa Enterprises, a California Corporation" in the blank to identify the Contractor and Signatory under this Agreement. Silvio Garaventa, Sr. and Mary C. Garaventa own 100% of the stock in Garaventa Enterprises. 3 . In Section 2 . i. DEFINITIONS , FRANCHISE AREA, on pages 1-2 , the Franchise Area is identified as a geographic area generally described in Exhibit A to this Agreement. Exhibit i Ms. Lillian Fujii February 27 , 1995 Page 2 A is to be prepared based on a 600 scale map (600' to the inch) . My client does not have maps with that scale. The map should be prepared by the Community Development Department and then attached to this Franchise Agreement prior to its execution. The Board Order approving the adoption of the Garaventa. Franchise Agreement should reflect that the geographic area will consist of the following: 1) far East County (which includes Discovery Bay) ; 2) an unincorporated area in North East Antioch as depicted in previous staff reports; 3) an unincorporated area in North Concord as depicted in previous staff reports; and 4) an unincorporated area in Bay Point, the precise location of which should be finally -determined by the Board as a result of its action on Determination Item 2 .4 (a) . 4 . In section 30. ASSIGNABILITY, on page 15, the following paragraph should be added to reflect the fact that continued service to regions within the Garaventa Franchise Area may be provided by Silvio Garaventa, Sr. as a sole proprietorship or by corporations which are 100% owned and controlled by Silvio Garaventa„ Sr. and Mary Garaventa: It is understood and agreed by the parties that corporations (e.g. , Pittsburg Disposal Company, sole proprietorships [e.g. , Oakley Disposal Company] , and partnerships that are 100% owned by the shareholders of Garaventa Enterprises) may presently and in the future perform the obligations and responsibilities of the Contractor in the regions of the Franchise Area. Performance of the obligations and responsibilities of the Contractor by such companies shall not require an assignment under this section. This provision should be added before the last paragraph in section 30. 5. Section 46. OPERATIVE DATE, on page 21, should be changed to read as follows: This Agreement becomes operative on the effective date in section 1, except for the North Concord region depicted on Exhibit A. The effective date for the North Concord region shall be March 31, 1996 . Ms. Lillian Fujii February 27, 1995 Page 3 This change will avoid any confusion between the effective date and the operative date for the franchise. An exception is made for the North Concord area to avoid any need for the County to negotiate any agreement with Central Contra Costa Sanitary District, which contends it has a franchise agreement with Browning Ferris Industries for that area which will expire by its own terms on March 31, 1996. My client, and I believe the County, dispute that BFI has a valid franchise in the North Concord area. However, since Mr. Garaventa presently provides 100% of the service to that area, has done so for many years, and anticipates doing so even without a franchise for the next year, he has no objection to operating under the status quo until the alleged BFI franchise with CCCSD expires by its own terms. In that way, a negotiated North Concord agreement between CCCSD and the County, referred to last week by Sue Rainey and mentioned in previous correspondence from CCCSD to the County, will not be necessary. 6. The signatory page should include a date next to the signatory block for the Chair of the Board of Supervisors. It should also include a signatory block for Garaventa Enterprises by Silvio Garaventa, Sr. , its President, with a date. 7 . My client: has no objection to the language changes to section 23 . ADMINISTRATIVE SERVICES BY COUNTY, on page 12, as suggested in your memo of today's date to the Board. We would suggest an additional sentence at the end of the paragraph as follows: Administrative and program services and any franchise fees shall be considered a reasonable cost or "pass-through" as described in section 8 on rates. That is traditional and we understand it is the intent of the County to allow such fees and charges as a pass-through. Please let me know if these changes are acceptable to County Counsel. Please distribute copies of this letter and discuss these changes with the Board when Determination Item 2 . 4 (c) comes up for consideration. If these changes are acceptable to the Board and it wants to move forward in a timely manner to complete the Garaventa Franchise Agreement, then it would seem appropriate for the Board to: 1) approve the Garaventa Enterprises Franchise Agreement; 2) direct the Community Development Department to complete the Franchise Area map, Exhibit A; 3) direct County Ms. Lillian :Fujii February 27 , 1995 Page 4 Counsel to incorporate the foregoing changes into the final Franchise Agreement; and 4) authorize the Chair of the Board of Supervisors to execute this Agreement immediately upon its completion. Upon execution of this Franchise Agreement, then the previous franchise agreements between the County and Garaventa companies will be superseded. We understand that the maximum rate that may be charged to any of the residential customers within the Franchise Area by Garaventa Enterprises will be the current rates for those customers. In other words, the current rates will be the maximum rates absent a rate adjustment. Under this new Franchise Agreement, Garaventa Enterprises may charge less than the maximum rate. Therefore, for the record Garaventa Enterprises wants to reconfirm that it will immediately institute airetroactive residential rate reduction back to January 1, 1995 of two dollars per month once this Agreement has been fully executed. For the record, and to reconfirm what Supervisor Torlakson said he understood at the last meeting, Garaventa Enterprises •will continue to charge the few BFI customers in the Bay Point region to now be served by Garaventa Enterprises the rate they are presently being charged, unless and until the residential rates in the Franchise Area go lower. As discussed previously, a further reduction of two dollars per month on the residential rate is contemplated once the Recycling Center and Transfer Station in Pittsburg becomes operational (assuming that there are no unanticipated fees and exactions imposed by the City of Pittsburg on the Recycling Center and Transfer Station as part of its approval that would inhibit such a reduction) . Thank you for your consideration of this matter. We look forward to answering any questions from the Board or staff at the hearing on this item tomorrow. ve tru y yours, Maw L. Armstrong MLA:kh cc: Silvio Garaventa, Sr. is\vol2\client\5792\Fuji i.It r